On July 23, 2026, NVIDIA, the global leader in AI chips, signed a multi‑year strategic agreement worth $1.5 billion with Amkor Technology, a major U.S.‑based outsourced semiconductor assembly and test (OSAT) provider. Under the deal, NVIDIA will provide funding in the form of prepayments to support Amkor's expansion of advanced packaging and test capacity within the United States, with a particular focus on its production facilities in Arizona.

The two companies will jointly develop advanced packaging and test technologies for next‑generation AI and accelerated computing platforms. The collaboration emphasizes high‑density interconnects and next‑generation heterogeneous integration—the process of integrating different types of chips (processors, memory, etc.) into a single package. Amkor has previously provided packaging solutions for NVIDIA's data center processors, networking chipsets, and accelerated computing systems. This new partnership aligns their technology roadmaps over the long term.

Addressing Packaging Bottlenecks and Supply Chain Diversification

Packaging is a critical final step in semiconductor manufacturing—it encloses the chip in a protective casing and enables connections to other components. With the explosive growth in AI computing demand, advanced packaging has become a major bottleneck constraining the supply of AI chips.

The deeper strategic intent of this collaboration lies in geographic diversification of the supply chain. Historically, global advanced packaging capacity has been highly concentrated in Asia. After wafer fabrication at TSMC, NVIDIA's AI chips still need to be shipped to Taiwan and other locations for packaging. Through the partnership with Amkor, NVIDIA gains an alternative packaging channel located within the U.S., reducing its reliance on a single region for critical AI infrastructure. The Arizona facility will complement Amkor's existing manufacturing footprint in Asia, creating a “globally diversified and resilient supply chain.”

Arizona Packaging Footprint

Amkor is headquartered in Tempe, Arizona, and is the largest U.S.‑based OSAT provider worldwide. The company has already commenced construction of an advanced packaging campus in Arizona, with total investment reaching $7 billion and production expected to begin in 2028. The campus has already secured Apple and NVIDIA as major customers. In June of this year, Amkor also signed a ten‑year cooperation agreement with TSMC to further deepen advanced packaging collaboration in Arizona. The TSMC Arizona wafer fab and Amkor's packaging campus will form a complete industrial chain supporting “wafer fabrication – advanced packaging.”

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