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Nvidia, Amkor strike $1.5 billion chip packaging deal
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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.
Here are a few details on the partnership:• Under the agreement, Nvidia will make a prepayment to support the expansion of Amkor's U.S. advanced packaging operations, including capacity in Arizona.
• 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.
• 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.