Nvidia and Amkor Agree on $1.5 Billion Advanced Chip Packaging Partnership
Key Details of the Nvidia-Amkor Partnership
July 23 (Reuters) - 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 U.S., as the chip industry races to build out AI infrastructure.
Shares of the semiconductor packaging company jumped 17% in extended trading.
Highlights of the Partnership Agreement
Here are a few details on the partnership:
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Prepayment and Expansion Plans
Under the agreement, Nvidia will make a prepayment to support the expansion of Amkor's U.S. advanced packaging operations, including capacity in Arizona.
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Joint Development of Packaging Technologies
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.
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Current Collaboration and Future Goals
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.
Amkor’s Broader Industry Partnerships
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Partnership with TSMC
10-Year Agreement to Enhance U.S. Capabilities
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.
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Collaboration with Advanced Micro Devices
Amkor is also working with Advanced Micro Devices to package the semiconductor company's chips.
Reporting Credits
(Reporting by Juby Babu in Mexico City; Editing by Pooja Desai)
