Nvidia signs US$1.5 billion pact with Amkor for US chip packaging
Nvidia signed a US$1.5 billion agreement with Amkor Technology to expand its semiconductor packaging capacity in the United States.
Source: The Business Times Singapore · July 23, 2026 at 11:07 PM · AI-assisted report
SINGAPORE, 24 JULY 2026 —
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Nvidia signed a US$1.5 billion agreement with Amkor Technology to expand its semiconductor packaging capacity in the United States.
The deal includes a prepayment from Nvidia and will fund a new Arizona facility focused on chip packaging and AI-focused test technologies, the companies said on Thursday.
Amkor shares jumped about 15% in late trading following the announcement.
The Arizona plant will complement Amkor’s Asian operations, creating “a geographically diverse and resilient global supply chain,” the partners said. Amkor, based in Tempe, Arizona, ranks among the world’s largest outsourced semiconductor assembly and test providers.
Packaging is the final step in semiconductor manufacturing, where chips are encased for integration with other components. Advanced packaging has become a bottleneck as AI accelerator demand surges, requiring exotic materials and high-precision techniques.
The agreement is part of Nvidia’s broader push to expand US-based semiconductor production amid industry supply constraints. Nvidia, the world’s most valuable company, dominates the AI accelerator market.
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