Nvidia and Amkor strike $1.5B US semiconductor packaging deal

Amkor Technology and Nvidia have struck a US$1.5 billion multi-year agreement to develop advanced semiconductor packaging and testing capabilities in the US. 

According to the companies, the partnership reflects a “shared commitment” to strengthening domestic semiconductor manufacturing through the development of full turnkey solutions. 

“This strategic partnership with Nvidia underscores the central role advanced packaging plays in enabling the future of AI,” says Kevin Engel, CEO at Amkor Technology. 

“Our agreement with Nvidia accelerates our long-term roadmap and supports our ability to deliver full turnkey advanced packaging and test solutions, leveraging our global footprint while expanding US capabilities to support critical AI infrastructure.”

Advanced packaging enables the performance, energy efficiency, and system-level integration required for AI infrastructure, explains Amkor. The semiconductor company develops advanced packaging solutions that support Nvidia’s products, which include data center processors, networking chipsets, and accelerated computing systems.

In 2024, Amkor Technology and TSMC signed a memorandum of understanding to bring advanced packaging and test capabilities to expand the US’s semiconductor ecosystem. 

Strengthening supply 

Nvidia’s investment aims to expand Amkor’s capacity in Arizona and seeks to complement the company’s manufacturing footprint in Asia, “to create a geographically diverse and resilient global supply chain.”

Debora Shoquist, executive VP of Operations at Nvidia, says: “AI is driving a generational shift in technology, transforming every industry and creating an opportunity to reinvigorate US manufacturing and supply chains.”

“Amkor’s global capabilities, combined with their committed investment in the US, are critical components of building resilient AI infrastructure and accelerating next-generation technologies.”

Earlier this year, PepsiCo rolled out a multi-year, “industry-first” collaboration with Siemens and Nvidia to advance the use of digital twin technology and AI to improve the speed and efficiency of packaging and bottling lines.

Advanced packaging trends

Investment and innovation in advanced semiconductor packaging are experiencing an uptick as the global demand for AI continues to grow. 

At SEMICON Japan 2025, Packaging Insights explored some of the latest advanced semiconductor packaging innovations, such as advanced semiconductor film packaging innovations.

We also spoke to Merck about its packaging material innovation, lightweighting, and reuse initiatives. At the show, Boschman Advanced Packaging Technology presented its patent technologies, including its silver sintering system, a die attach technology in semiconductor packaging.