Nvidia Signs $1.5 Billion Amkor Deal to Expand US AI Packaging

Demand for artificial-intelligence accelerators has strained supplies of advanced packaging, a critical step that combines processors with high-bandwidth memory. Nvidia’s backing of Amkor Technology’s expansion in Arizona would help connect Taiwan Semiconductor Manufacturing Co.’s US wafer production with domestic packaging and testing, creating a more complete American AI-chip supply chain while reducing exposure to overseas capacity constraints and geopolitical disruption.

Amkor disclosed in July 2026 that it signed a 10-year, $1.5 billion advanced-packaging and testing agreement with Nvidia, including upfront payments to support capacity construction. The Arizona facilities are expected to process chips manufactured at TSMC’s nearby US operations, giving Nvidia additional access to scarce packaging capacity. The investment strengthens Amkor’s role in the AI semiconductor market and supports Washington’s effort to bring more chip production stages onto US soil.