On July 23, Amkor Technology announced a multi-year strategic agreement with NVIDIA to co-develop advanced semiconductor packaging and test processes for next-gen AI and accelerated computing hardware. The total deal value is $1.5 billion, with NVIDIA making prepayments to support U.S. advanced packaging capacity expansion at Amkor's Arizona facility.

Amkor, headquartered in Tempe, Arizona, is the largest U.S.-based third-party packaging and test provider. Following the announcement, Amkor's after-hours stock rose as high as 16–17%, later settling at a 13.74% gain.

The collaboration centers on high-density interconnect and heterogenous integration technologies. NVIDIA's EVP of Operations noted that Amkor's global footprint and U.S. presence are essential to building a resilient AI hardware supply chain. Amkor's CEO stated the deal accelerates the company's expansion plans and enables full turnkey advanced packaging services.

Amkor has been a long-term packaging partner for NVIDIA across data center processors, networking chips, and accelerators. The new funds will go toward Amkor's $7 billion advanced packaging park in Arizona , set to begin production in 2028. The site already counts NVIDIA and Apple as anchor customers, strategically located near TSMC's Arizona fab for co-located supply chain integration.

From ICgoodFind: NVIDIA just placed a $1.5B bet on U.S. packaging. When the chip giant prepays for capacity, it’s not just about supply – it’s about locking in geographic redundancy for AI hardware. The packaging landscape is shifting west.