Amkor Shares Up 16% on $1.5B Nvidia Deal
Amkor Technology Inc (NASDAQ:AMKR) shares surged 16.6% in after‑hours trading on Thursday following the announcement of a multi‑year strategic partnership with Nvidia Corporation (NASDAQ:NVDA) valued at $1.5 billion. The agreement is aimed at developing advanced semiconductor packaging and test technologies for artificial‑intelligence (AI) and accelerated computing platforms.
Under the terms of the partnership, Nvidia will make a prepayment that will support the expansion of Amkor’s advanced packaging capacity in the United States. The collaboration will concentrate on high‑density interconnects and next‑generation heterogeneous integration, addressing growing demand for AI infrastructure.
The partnership will broaden Amkor’s full‑turnkey advanced packaging and test capabilities within the United States, with the capacity agreement specifically backing an expansion in Arizona. This U.S. expansion complements Amkor’s existing manufacturing footprint across Asia, creating a geographically diverse global supply chain for AI‑related semiconductor components.
"AI is driving a generational shift in technology, transforming every industry and creating a unique opportunity to reinvigorate American manufacturing and supply chains," said Debora Shoquist, Executive Vice President of Operations at Nvidia. She added that Amkor’s global capabilities and its committed investment in the United States are critical for building resilient AI infrastructure and accelerating next‑generation technologies.
Kevin Engel, Chief Executive Officer of Amkor Technology, stated that the strategic partnership underscores the central role advanced packaging plays in enabling the future of AI and accelerates the company’s long‑term roadmap while expanding U.S. capabilities to support AI infrastructure.
Amkor has previously delivered advanced packaging solutions for Nvidia platforms across a broad product portfolio, including data‑center processors, networking chipsets, and accelerated computing systems. The expanded collaboration aims to bring new technologies to market at scale.