Nvidia signs US$1.5 billion accord with OSAT firm Amkor for chip packaging
This boosts Amkor’s production in Asia to create a geographically diverse and resilient global supply chain
Source: The Business Times Singapore · July 23, 2026 at 11:07 PM · AI-assisted report
SINGAPORE, 24 JULY 2026 —
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Headline: Nvidia signs US$1.5 billion accord with OSAT firm Amkor for chip packaging Lead: This boosts Amkor’s production in Asia to create a geographically diverse and resilient global supply chain Body: [SAN FRANCISCO] Nvidia signed a US$1.5 billion agreement with Amkor Technology to help bolster the company’s chip packaging facilities, part of a broader push to expand semiconductor operations in the US.
The agreement, which involves a prepayment by Nvidia, will help Amkor boost its manufacturing in Arizona, according to a statement on Thursday (Jul 24).
The news sent shares of Amkor – one of the world’s largest outsourced semiconductor assembly and test players – soaring about 15 per cent in late trading.
The effort will focus on chip packaging and test technologies for artificial intelligence, the companies said.
Packaging is a crucial final step in semiconductor manufacturing when chips are placed in casing that allows them to connect with other components.
The Arizona facility will add to Amkor’s production in Asia, creating “a geographically diverse and resilient global supply chain”, the companies said. Amkor, based in Tempe, Arizona, is a top provider of chip packaging and test services.
The deal is part of a flurry of agreements by Nvidia, the world’s most valuable company , which is using its resources to expand the AI computing industry.
Nvidia is the top maker of AI accelerators, the highly-prized chips used to develop and run AI software.
Advanced packaging for components such as accelerator chips has become a supply bottleneck as the industry tries to keep up with runaway demand.
The products increasingly require the use of exotic materials and techniques to allow them to connect with high-end computers going into data centres. BLOOMBERG
Decoding Asia newsletter: your guide to navigating Asia in a new global order. Sign up here to get Decoding Asia newsletter. Delivered to your inbox. Free. Source: The Business Times Singapore Published: 2026-07-23T22:38:24.000Z Region: OSINT Topic: Economy (AI-assisted rewrite, based on the original source)
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