Nvidia and Amkor Sign $1.5 Billion Advanced AI Chip Packaging Deal in US
Nvidia and Amkor Technology have signed a $1.5 billion multi-year strategic agreement to expand advanced semiconductor packaging and testing capacity in the United States. Nvidia will provide an advance payment to support the expansion of Amkor's packaging facility in Arizona. This partnership addresses a critical bottleneck in the AI hardware supply chain by bringing advanced packaging capabilities to US soil. It reduces reliance on Asian manufacturing hubs and secures the production of next-generation AI and accelerated computing platforms. The collaboration will focus on high-density interconnects and heterogeneous integration, aligning with Amkor's $7 billion Arizona packaging campus slated for production in 2028. This facility will also work alongside TSMC's Arizona wafer fab to create a localized supply chain.
## BACKGROUND
Advanced packaging is a crucial semiconductor manufacturing step that integrates multiple chiplets into a single high-performance package to bypass physical limits of traditional single-chip designs. OSAT (Outsourced Semiconductor Assembly and Test) providers like Amkor perform these essential post-wafer packaging and testing services. Heterogeneous integration allows different types of silicon dies to be combined, which is vital for the high bandwidth required by modern AI processors.