Nvidia commits $1.5B to Amkor to expand US chip packaging

https://media.thenextweb.com/2026/02/Nvidias-Q4-results-could-make-or-break-confidence-in-the-AI-hardware-market.avif

Nvidia has agreed to give Amkor Technology a $1.5 billion prepayment to expand advanced semiconductor packaging and testing in the United States, tightening a supply relationship that already sits behind its data-centre chips.

The agreement, announced on 23 July, pushed Amkor shares up by roughly 12% in after-hours trading.

Packaging is the least glamorous stage of chipmaking and, lately, one of the most contested. It is the step where finished silicon is stitched together with memory and interconnects into the dense modules that run AI servers, and demand for that work has run well ahead of the capacity to do it.

The constraint is not abstract. Shortages of advanced packaging, rather than raw wafer fabrication, have at times been the factor limiting how many AI accelerators Nvidia can ship. That makes locking in the capacity a strategic priority rather than a procurement footnote.

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