Nvidia invests $1.5 billion in Amkor chip packaging expansion in Arizona
NVIDIA
Taiwan Semiconductor Manufacturing Company
Nvidia has agreed to pay Amkor $1.5 billion as an advance payment to expand its chip testing and packaging facilities in Arizona. The deal aims to enable a full-cycle chip production in the US, as Nvidia already partially uses TSMC's Arizona fab for 4nm processing. Amkor's shares rose 15% on the news.
Nvidia will provide Amkor with a $1.5 billion advance payment to expand its chip testing and packaging capacities in Arizona. This follows the opening of TSMC's first Arizona fab in 2024, which uses 4nm technology to process silicon wafers for Nvidia's AI chips. However, to complete the full production cycle, testing and packaging facilities are needed. Amkor, a contract provider of these services, is headquartered in Arizona but has most of its capacity in Asia. The deal caused Amkor's stock to rise by 15%. Nvidia is not the only partner; TSMC itself plans to build two testing and packaging plants in Arizona, as it currently must ship partially finished products to Taiwan and back. Amkor has also signed a ten-year agreement with TSMC from June to develop US packaging services. AMD is also an Amkor client, highlighting the interest of major US AI chip developers in expanding Amkor's US infrastructure.
Source: 3DNews —
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