Nvidia, Amkor in $1.5 bln packaging deal

Semiconductor packaging line in a cleanroom illustrating NVDA and AMKR $1.5 billion chip deal

Key Points

01Nvidia (NVDA) and Amkor sign a $1.5 billion multi-year agreement in the U.S.
02Deal centers on expanding advanced chip packaging and test capacity.
03Nvidia (NVDA) will prepay to support Amkor’s U.S. expansion, including Arizona.
04Partnership targets new tech for Nvidia’s (NVDA) AI and accelerated-computing chips.

Nvidia and Amkor expand U.S. chip packaging push

Nvidia and Amkor Technology have signed a multi-year agreement worth $1.5 billion to expand advanced semiconductor packaging and test capacity in the United States. The deal, reported on July 23, 2026, deepens the relationship between the chip designer and the outsourced semiconductor assembly and test provider at a time of rising demand for AI-related hardware.

Under the agreement, Nvidia will make a prepayment to support the expansion of Amkor’s U.S. advanced packaging operations. The plan includes adding capacity in Arizona, positioning Amkor to handle more complex packaging requirements for Nvidia and potentially other customers.

Focus on advanced packaging and heterogeneous integration

A central element of the partnership is the joint development of advanced packaging and testing technologies tailored to Nvidia’s AI and accelerated-computing platforms. The companies plan to align their product and technology roadmaps to accelerate the introduction of new packaging solutions.

The collaboration emphasizes heterogeneous integration, which involves combining different types of chips in a single package. This approach is increasingly important for high-performance computing and AI workloads that rely on tightly integrated processors, memory, and other specialized components.

Building on existing collaboration in data-center products

Amkor already supplies advanced packaging for parts of Nvidia’s product portfolio, including data-center processors. The new agreement extends that work, aiming to bring more advanced packaging technologies to market as AI infrastructure demand increases.

By expanding U.S. capacity and formalizing a multi-year roadmap, the companies seek to secure a stable supply chain for Nvidia’s high-end computing platforms while giving Amkor clearer visibility into long-term demand for its advanced packaging services.

Key Takeaways

01The $1.5 billion agreement formalizes a long-term collaboration between Nvidia and Amkor around advanced chip packaging in the U.S.
02Nvidia’s prepayment gives Amkor financial support and visibility to expand its advanced packaging footprint, including new capacity in Arizona.
03A shared focus on heterogeneous integration and data-center processors positions the partnership at the core of growing AI infrastructure needs.

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