Nvidia Signs $1.5 Billion Chip Packaging Deal with Amkor

Nvidia has signed a multi-year agreement with US-based semiconductor company Amkor to overcome bottlenecks in the packaging and testing processes of its AI chips. Under the deal, Nvidia will make a $1.5 billion prepayment to Amkor. The partnership aims to increase chip packaging and testing capacity at facilities in Arizona. This move is intended to meet rising demand for Nvidia's AI chips and address critical supply chain gaps. The investment is seen as part of efforts to localize semiconductor production in the US. Nvidia aims to reduce delays in the packaging process, particularly for AI-focused graphics processing units (GPUs). The agreement with Amkor is considered a key step in Nvidia's strategy to strengthen its supply chain, helping the company overcome production bottlenecks and maintain a competitive edge. This is not investment advice.