Nvidia, Amkor ink $1.5 billion chip packaging deal

Amkor Technology said on Thursday it had entered a multi-year agreement with Nvidia worth $1.5 billion to expand advanced semiconductor packaging and test capacity in the US, as the chip industry races to build out AI infrastructure.

Shares of the semiconductor packaging company jumped 17% in extended trading.

Here are a few details on the partnership:
• Under the agreement, Nvidia will make a prepayment to support the expansion of Amkor’s US advanced packaging operations, including capacity in Arizona.

• The companies will jointly develop packaging and testing technologies for Nvidia’s AI and accelerated-computing platforms, focusing on combining different types of chips in a single package.

• Amkor already supplies advanced packaging for Nvidia’s product portfolio, including data center processors, and the expanded deal aims to bring new packaging technologies to market as AI infrastructure demand grows.

• In June, Amkor entered a 10-year partnership with TSMC, the world’s largest contract chipmaker, to enhance semiconductor packaging capabilities in the United States.

• Amkor is also working with Advanced Micro Devices to package the semiconductor company’s chips.