Amkor Technology has entered into a multi-year, $1.5 billion agreement with Nvidia to cover advanced semiconductor packaging and testing for AI and accelerated computing platforms. Following the announcement, Amkor's stock price rose more than 10% in after-hours trading.
Nvidia provides advance payment to support US production expansion
Under the agreement, Nvidia will provide Amkor with a $1.5 billion upfront payment to support its expansion of advanced packaging capacity in the United States. The funds will be invested in Amkor's new packaging and testing operations at its Arizona campus to meet the continued growth in demand for AI computing hardware.
This collaboration focuses on high-density interconnects and next-generation heterogeneous integration technologies. The related processes can integrate multiple chip components into a single package to improve the performance and efficiency of data center processors, networking products, and accelerated computing systems.
The cooperation is based on existing supply relationships.
Amkor already provides advanced packaging services for a wide range of NVIDIA products. This new agreement expands upon the existing collaboration, including joint technology development, long-term capacity planning, and increased domestic manufacturing capacity in the United States.
NVIDIA Executive Vice President Debora Shoquist stated that Amkor's global operational capabilities and its new investment in the United States will help build a more resilient AI supply chain. Amkor CEO Kevin Engel added that the agreement will accelerate the company's long-term roadmap and enhance its ability to provide integrated advanced packaging and testing services.
The Arizona project continues to attract major clients.
Amkor stated that the Arizona project will supplement its existing manufacturing network in Asia with U.S. domestic capacity. This means customers will have access to a more diversified supply chain, while bringing advanced packaging capabilities closer to their U.S. semiconductor and computing businesses.
Prior to this, Amkor announced a 10-year agreement with TSMC in June 2026, also focusing on advanced packaging services in Arizona. Nvidia's addition means that this expansion plan has gained another important customer.
As of press time, Amkor's market capitalization was approximately $16.27 billion. The company's stock price remains below its 52-week high of $96.66, but is significantly above its 52-week low of $20.87.
Amkor plans to release its Q2 2026 results after the US stock market closes on July 27. The market will then be focused on its revenue, profit margins, capital expenditures, and the latest guidance on its Arizona expansion project.
