Amkor Technology Secures $1.3 Billion Agreement with NVIDIA to Expand Chip Packaging Capacity in South Korea

en.Wedoany.com Reported - On October 21, U.S. semiconductor packaging and testing company Amkor Technology announced a new agreement worth $1.3 billion with NVIDIA to expand advanced semiconductor packaging capacity in South Korea. Combined with the companies' previous cooperation agreement in Arizona, United States, the total value of multi-year agreements signed by the two companies in the United States and South Korea has reached $3 billion. This capacity expansion targets next-generation artificial intelligence chips and accelerated computing platforms, with a focus on increasing interposer wafer capacity for advanced chip packaging.

According to NVIDIA's supply chain expansion plan released the same day, Amkor Technology will expand its advanced packaging manufacturing capabilities in South Korea, with the goal of increasing interposer wafer capacity by more than 300% by the end of 2028. The expansion also involves developing new manufacturing facilities in South Korea to add packaging capacity for NVIDIA's existing and next-generation computing platforms.

The two parties previously signed a $1.5 billion multi-year advanced packaging and technology development agreement on July 23, 2026, under which NVIDIA supports Amkor Technology's expansion of advanced packaging capacity in Arizona, United States, through advance payments. The cooperation involves the development of high-density interconnect, heterogeneous integration, and semiconductor packaging and testing technologies, and together with the South Korea expansion, forms the two companies' cross-regional manufacturing arrangement.

On September 8, Amkor Technology also announced the Phase II expansion plan for its Arizona advanced packaging and testing campus, adding approximately 60,000 square meters of cleanroom space, bringing the campus's total planned cleanroom area to approximately 93,000 square meters, with planned project investment increased to approximately $12 billion. The campus plan covers manufacturing processes including wafer bumping, wafer testing, chip assembly, and final testing.

The $1.3 billion agreement adopts an advance payment arrangement aligned with manufacturing capacity expansion, through which NVIDIA supports its subsequent chip production needs by securing supplier capacity in advance. The two parties did not disclose in the October 21 announcement the specific investment breakdown for the new South Korea facilities, the factory address, or the production start date for individual production lines.