Nvidia signs US$1.5 billion accord with semiconductor firm Amkor for chip packaging
This boosts Amkor’s production in Asia to create a geographically diverse and resilient global supply chain
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[SAN FRANCISCO] Nvidia signed a US$1.5 billion agreement with Amkor Technology to help bolster the company’s chip packaging facilities, part of a broader push to expand semiconductor operations in the US.
The agreement, which involves a prepayment by Nvidia, will help Amkor boost its manufacturing in Arizona, according to a statement on Thursday (Jul 23).
The news sent shares of Amkor soaring about 15 per cent in late trading. Amkor, based in Tempe, Arizona, is one of the world’s largest outsourced semiconductor assembly and test players.
The effort will focus on chip packaging and test technologies for artificial intelligence, the companies said.
Packaging is a crucial final step in semiconductor manufacturing when chips are placed in casing that allows them to connect with other components.
The Arizona facility will add to Amkor’s production in Asia, creating “a geographically diverse and resilient global supply chain”, the companies said.
The deal is part of a flurry of agreements by Nvidia, the world’s most valuable company, which is using its resources to expand the AI computing industry.
Nvidia is the top maker of AI accelerators, the highly-prized chips used to develop and run AI software.
Advanced packaging for components such as accelerator chips has become a supply bottleneck as the industry tries to keep up with runaway demand.
The products increasingly require the use of exotic materials and techniques to allow them to connect with high-end computers going into data centres. BLOOMBERG
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