July 24, 2026 / SemiMedia / — NVIDIA and Amkor Technology have entered into a multi-year strategic partnership that includes a $1.5 billion prepayment to expand advanced semiconductor packaging and test capacity in the United States.

The financial arrangement will support Amkor’s U.S. manufacturing expansion and the joint development of packaging technologies for future AI and accelerated computing platforms. The companies did not disclose the agreement’s exact duration, annual purchasing volumes or the accounting schedule for the prepayment.

NVIDIA and Amkor will coordinate their long-term product and technology roadmaps, with development work covering high-density interconnects and next-generation heterogeneous integration.

Heterogeneous integration combines processors, memory, networking devices and other types of semiconductor dies within a single package. The technology has become increasingly important as AI systems require higher data-transfer bandwidth, greater computing density and shorter connections between logic and memory.

Amkor already provides advanced packaging solutions for NVIDIA products, including data center processors, networking chipsets and accelerated computing systems. The expanded partnership will align technology development and capacity planning across Amkor’s operations in Asia and the United States.

The capacity agreement will contribute to Amkor’s expansion in Arizona. The company is developing a major advanced packaging and test campus in Peoria for AI, high-performance computing, communications, automotive and industrial products. Amkor previously increased the planned investment across the project’s two phases to $7 billion, with production expected to begin in 2028.

Amkor also signed a 10-year agreement with TSMC in June 2026. That partnership establishes a framework for TSMC to purchase advanced packaging and testing services from Amkor and for the two companies to coordinate capacity expansion in Arizona.

Combining TSMC’s Arizona wafer fabrication operations with Amkor’s nearby packaging capacity could reduce the need to send some U.S.-manufactured wafers to Asia for assembly and testing. Amkor is also working with AMD on advanced packaging for its semiconductor products.

Amkor shares rose as much as 17% in extended trading following the NVIDIA announcement. The market response reflects expectations that the prepayment will provide both funding and long-term demand support for Amkor’s capital-intensive U.S. expansion.

The agreement shows that AI infrastructure investment is extending beyond leading-edge wafer fabrication into packaging and testing. By committing funds before the capacity becomes available, NVIDIA can secure closer alignment with a packaging supplier and reduce the risk that advanced integration becomes a constraint on future AI platform shipments.