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Nvidia Prepays $1.5B to Amkor to Secure Advanced Chip Packaging Capacity in US

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Nvidia and Amkor Technology have expanded their multi-year strategic partnership to co-develop advanced semiconductor packaging and test technologies for next-generation AI and computing platforms. Nvidia is reportedly prepaying around $1.5 billion to help Amkor scale up advanced packaging capacity in the United States, with Arizona serving as the primary domestic hub. The deal goes beyond a typical supplier agreement, positioning Amkor as a roadmap co-owner rather than just a contracted manufacturer. The move reflects a broader industry recognition that packaging — which integrates multiple dies including logic, HBM memory, and networking silicon — has become a critical bottleneck in AI accelerator production. By investing in US-based capacity, Nvidia also gains geographic diversification, reducing exposure to supply chain disruptions, export-control risks, and logistical shocks tied to Asia-concentrated packaging infrastructure.

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Nvidia Prepays $1.5B to Amkor to Secure Advanced Chip Packaging Capacity in US · ShortSingh