Nvidia has signed a $1.5 billion multi-year agreement with Amkor Technology to expand advanced semiconductor packaging and testing capacity in the United States, according to reports from Outlook Business, Newsbytes and others.
The deal centers on Arizona. Bing News summarized that Nvidia "secured advanced AI chip packaging capacity in Arizona through a multi-year strategic agreement with Amkor Technology." KJZZ reported that the partnership brings one of the AI industry's top players to Tempe-based Amkor, a move that "could onshore more of the semiconductor packaging process."
Investors reacted quickly. TradingView, Yahoo Finance and Stocktwits all reported that Amkor's stock (AMKR) soared about 12% in after-hours trading on the news, and a separate Yahoo Finance item said the shares surged 16%.
Why packaging? Modern AI accelerators aren't just a single chip. "Packaging" is the step where finished silicon is assembled, connected and tested into the modules that go into data centers. Multiple outlets, including Outlook Business and Newsbytes, framed the agreement as a response to surging demand for artificial intelligence infrastructure.
The agreement also lands amid broader trade headlines. A LinkedIn-sourced item paired news of the Nvidia deal with a US move to impose a 10% tariff on India, underscoring the political backdrop around where chips get made and assembled.
Why it matters: Chipmaking has long relied on overseas packaging, so a deal that expands this work on US soil signals how far companies will go to build a domestic supply chain for the AI boom.