Nvidia finalizes US$1.5 billion cooperation, Amkor soars 11.5% before opening
Amkor Technology (AMKR), a provider of semiconductor packaging and testing services, announced a multi-year, $1.5 billion strategic cooperation agreement with NVIDIA (NVDA) to expand its advanced packaging and testing capabilities in the United States. Under the agreement, Nvidia will provide upfront payments to Amkor to support the expansion of Amkor's advanced packaging business in Arizona and other places in the United States. The two parties will jointly develop advanced packaging technologies such as high-density interconnect and next-generation heterogeneous integration for NVIDIA's AI and accelerated computing platforms. Boosted by the news, Amkor's stock price rose sharply by about 11.5% in pre-market trading on Friday. The performance of current AI processors is highly dependent on advanced packaging processes that integrate multiple chips into a unified system. Packaging has become a key link in the semiconductor supply chain. Debora Shoquist, executive vice president of operations at Nvidia, said Amkor's global capabilities and its commitment to invest in the United States are key components in building resilient AI infrastructure and accelerating the development of next-generation technologies. Amkor has previously provided packaging services for NVIDIA data center processors and other products. The new agreement will further support Amkor's capacity expansion in Arizona and complement the company's existing manufacturing footprint in Asia. In addition, Amkor just signed a contract with (TSMC) has established a ten-year U.S. packaging collaboration and is working with Carry out chip packaging cooperation.