Amkor Technology Inc. Secures $1.5 Billion Packaging Agreement With NVIDIA

Amkor Technology Inc. (NASDAQ: AMKR) announced on July 23, 2026 a multi‑year partnership with NVIDIA Corporation that will provide NVIDIA with a $1.5 billion prepayment to support Amkor’s expansion of advanced semiconductor packaging and test capacity in the United States, primarily in Arizona. The agreement is aimed at jointly developing packaging and testing technologies for NVIDIA’s AI and accelerated‑computing platforms, with a focus on integrating diverse chip types into single packages.

Key Terms of the Agreement

  • Prepayment and Funding: NVIDIA will make an upfront payment to finance the expansion of Amkor’s U.S. packaging operations.
  • Joint Technology Development: Both companies will collaborate on next‑generation packaging and testing solutions tailored to AI workloads.
  • Capacity Expansion: The deal targets increased capacity for advanced packaging services that Amkor already provides to NVIDIA, including data‑center processors.
  • Long‑Term Roadmap Alignment: The partnership includes alignment of long‑term roadmaps for future AI platforms.

Market Reaction

  • Share Price Surge: Amkor shares jumped between 12 % and 17 % in after‑hours and extended trading sessions following the announcement.
  • After‑Hours Performance: On July 24, shares closed at $65.33 and rose to $75.60 during after‑hours trading, a gain of 15.72 %.
  • Daily Trading: The stock closed at $66.97 on July 21, down 2.45 % from the previous day, before the announcement triggered the subsequent surge.

Strategic Context

  • U.S. Manufacturing Resilience: The expansion strengthens U.S. semiconductor manufacturing and supply chain resilience, aligning with broader industry trends toward domestic capacity building.
  • Complementary Partnerships: Amkor had recently entered a 10‑year partnership with TSMC to enhance packaging capabilities, positioning the company to serve high‑performance computing customers.

Company Profile

Amkor Technology Inc. is a U.S.–based semiconductor packaging and test services provider listed on Nasdaq. Its services include deep sub‑micron wafer fabrication, wafer probe testing, integrated circuit packaging assembly and design, final testing, reliability testing, burn‑in, and electrical characterization. The company’s market capitalization is approximately $15.6 billion, and its price‑to‑earnings ratio stands at 38.9.

This partnership with NVIDIA represents a significant milestone for Amkor, reinforcing its role as a key supplier for advanced AI chip packaging and positioning the company for continued growth in the rapidly expanding artificial‑intelligence market.