Nvidia, Amkor strike $1.5 billion chip packaging deal

July 23 (Reuters) - Amkor ‌Technology said ​on ​Thursday it had entered a multi-year agreement with Nvidia worth $1.5 billion ‌to expand advanced semiconductor packaging and test ⁠capacity in the U.S., as the chip industry ‌races to build out ‌AI infrastructure.

Shares of the semiconductor packaging company jumped 17% in extended trading.

Here are a ​few details on the partnership:

• Under the agreement, Nvidia will make a prepayment ⁠to support the expansion of Amkor's U.S. advanced packaging operations, ​including capacity in Arizona.

• The companies will jointly develop packaging and testing technologies ​for Nvidia's AI and ‌accelerated-computing platforms, focusing on combining different types of chips in a ⁠single package.

• Amkor already supplies advanced packaging for Nvidia's product portfolio, including data center processors, and ⁠the expanded deal aims to bring new packaging ​technologies to market as AI infrastructure demand grows.

• In June, Amkor entered a 10-year partnership with TSMC, ‌the world's largest contract chipmaker, to enhance semiconductor packaging capabilities in the ‌United States.

• Amkor is also working with ⁠Advanced Micro Devices ‌to package the ​semiconductor company's chips.

(Reporting by Juby Babu in Mexico City; Editing by Pooja ‌Desai)

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