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Amkor Adds $1.3B to Expand AI Chip Packaging in South Korea; Nvidia Deals Now Total $3B
Amkor and Nvidia announced additional advanced-packaging capacity investments in South Korea on October 21, bringing their multi-year agreements in Arizona and South Korea to $3 billion as the AI chip bottleneck shifts toward packaging.
Why it matters
The AI chip bottleneck is shifting from transistor manufacturing to advanced packaging — the process of stitching GPU dies, high-bandwidth memory and interconnects into a single module. Amkor, one of the world's largest outsourced packaging and test providers, is locking down that bottleneck with capacity contracts, paving the way for Nvidia's next-generation AI platforms.
The deal
Amkor Technology announced on October 21 additional investments in advanced-packaging capacity in South Korea. With the new $1.3 billion agreement, Amkor's multi-year deals with Nvidia across Arizona and South Korea now total $3 billion. Nvidia will use prepayments to reserve capacity, aligning Amkor's manufacturing output with Nvidia's long-term growth plans.
Amkor president and CEO Kevin Engel said the partnership underscores the critical role advanced packaging plays in enabling next-generation AI platforms. Debora Shoquist, Nvidia's executive vice president of operations, said the work helps scale production of current and next-generation platforms while strengthening global supply chain resilience.
Context: the GTC Berlin supply-chain push
The deal is part of a wider package of supply-chain agreements Nvidia announced at GTC Berlin on October 21, covering six suppliers (Amkor, IBIDEN, KYEC, Samsung Electro-Mechanics, SPIL and Unimicron) across substrates, advanced packaging, testing and optical engines. CEO Jensen Huang told the keynote: "Demand is extraordinary. Capacity is the constraint."
Amkor will also exhibit its advanced packaging and test capabilities at Nvidia GTC in Washington, D.C., from November 30 to December 3.
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