Amkor Technology announced a $1.5 billion multi-year agreement with Nvidia covering advanced semiconductor packaging and testing for artificial intelligence and accelerated computing platforms, and the company's stock climbed more than 10% in extended trading. Shares reached $73.30 after hours following a regular-session close of $65.33, then settled around $65.67 by 11:36 a.m. GMT-4 on Friday. The deal includes a $1.5 billion prepayment from Nvidia to help Amkor expand its advanced packaging capacity in the United States as demand for AI computing hardware continues to grow.
Nvidia Provides $1.5 Billion Prepayment for Amkor US Expansion
Nvidia will provide a $1.5 billion prepayment to help Amkor expand its advanced packaging capacity in the United States. The funding will support new packaging and test operations at the company's Arizona campus.
The agreement centers on high-density interconnects and next-generation heterogeneous integration. These processes combine several chip components within one package, improving performance and efficiency for data center processors, networking products, and accelerated computing systems.
Amkor plans to offer full turnkey services through the expanded site, covering packaging, testing and related production work. Nvidia's capacity commitment gives Amkor funding for the buildout while reserving access to future output under the multi-year arrangement.
Amkor and Nvidia Extend Existing Supply Partnership
Amkor already provides advanced packaging solutions for Nvidia across a broad range of products. The new arrangement expands that relationship through coordinated technology development, long-term capacity planning and added US-based production.
Nvidia Executive Vice President Debora Shoquist said Amkor's global operations and planned domestic investment will help build more resilient AI supply chains. Amkor Chief Executive Kevin Engel said, "Our agreement with NVIDIA accelerates our long-term roadmap and supports our ability to deliver full turnkey advanced packaging and test solutions, leveraging our global footprint while expanding U.S. capabilities to support critical AI infrastructure."
The Arizona project will add domestic production to Amkor's established manufacturing network across Asia. This setup gives customers access to a more geographically diverse supply chain while placing advanced packaging capacity closer to US semiconductor and computing operations.
The Nvidia agreement follows Amkor's 10-year arrangement with Taiwan Semiconductor Manufacturing Co., announced in June 2026. That contract also focuses on advanced packaging services in Arizona, adding another major customer relationship linked to the same expansion program.
Amkor Stock Reaches $73.30 After Hours Before Settling at $65.67
Amkor opened at $71.10 and rallied over 16% to an intraday high of $78 before falling to $63.05. The shares later returned to $65.67, slightly above the previous close, as the initial after-hours rally narrowed during the regular session.
The company carried a market value of about $16.27 billion at the time of writing. Amkor traded below its 52-week high of $96.66 but well above its 52-week low of $20.87.
Amkor plans to report second-quarter financial results after the market close on Monday, July 27. Amkor Technologies exceeded forecasts for revenue and earnings per share in the first quarter, according to reports.
FAQ
What did Amkor Technology announce with Nvidia?
Amkor Technology announced a $1.5 billion multi-year agreement with Nvidia covering advanced semiconductor packaging and testing for artificial intelligence and accelerated computing platforms. Nvidia will provide a $1.5 billion prepayment to help Amkor expand its advanced packaging capacity in the United States, supporting new operations at the company's Arizona campus.
How did Amkor stock perform after the Nvidia deal announcement?
Amkor stock climbed more than 10% in extended trading, reaching $73.30 after hours from a regular-session close of $65.33. Shares settled around $65.67 by 11:36 a.m. GMT-4 on Friday. During the regular session, the stock opened at $71.10, rallied over 16% to an intraday high of $78, fell to $63.05, then returned to $65.67.
When will Amkor report its next earnings?
Amkor plans to report second-quarter financial results after the market close on Monday, July 27. The company exceeded forecasts for revenue and earnings per share in the first quarter, according to reports.
