Nvidia Commits $1.5B to Amkor to Expand US Chip Packaging
July 24, 2026 – 8:05 am
Image by: Nvidia
Nvidia has agreed to provide Amkor Technology with a $1.5 billion prepayment to expand advanced semiconductor packaging and testing in the United States, strengthening a supply partnership already crucial for its data-center chips.
The agreement, announced on July 23, sent Amkor shares up by approximately 12% in after-hours trading.
Packaging, often considered less glamorous than chip fabrication, is a critical stage in the production of AI servers and other advanced technologies. Demand for packaging capacity has significantly outpaced supply, leading to shortages that have impacted Nvidia’s ability to ship its AI accelerators.
Over the past year, Nvidia has been securing critical inputs, including:
- A warrant-backed deal with Corning for new US plants and jobs.
- Locking in SK Hynix for HBM4 memory.
The prepayment with Amkor will fund the expansion of its operations in Arizona, where it is constructing a $2 billion packaging and test facility in Peoria. This arrangement involves upfront cash against future capacity, allowing Amkor to build ahead of demand without hesitation.
Nvidia has employed a similar strategy across its supply chain, utilizing prepayments, warrants, and direct commitments to secure essential inputs for its roadmap.
The two companies will jointly develop packaging and test technologies for next-generation AI and accelerated computing platforms, including high-density interconnects and heterogeneous integration.
Debora Shoquist, Nvidia’s executive vice president of operations, stated:
“AI is driving a generational shift in technology, transforming every industry and creating a unique opportunity to reinvigorate American manufacturing and supply chains.”
Kevin Engel, Amkor’s chief executive, added:
"This partnership underscores the central role advanced packaging plays in the future of AI."
The deal follows a busy year for Amkor, which packages chips for both Nvidia and AMD, signing agreements with TSMC and other major players. This expansion widens its existing work with Nvidia rather than starting anew.