Amkor Technology's stock surged more than 10% in after-hours trading following news of a $1.5 billion multi-year contract with Nvidia. This deal focuses on advanced semiconductor packaging and testing tailored for AI and accelerated computing platforms. Shares spiked to $73.30 post-market after closing regular hours at $65.33, though by late Friday morning, the price stabilized around $65.67.
Nvidia Fuels US Expansion for Amkor
Under the agreement, Nvidia will provide a $1.5 billion prepayment to support Amkor's expansion of advanced packaging capacity in the United States, specifically at its Arizona campus. This move aims to meet the rising demand for AI hardware by boosting domestic packaging and testing capabilities. The deal emphasizes high-density interconnects and next-generation heterogeneous integration, technologies that combine multiple chip components into a single package to enhance performance and efficiency for data center processors, networking gear, and accelerated computing systems.
Amkor intends to deliver full turnkey services at the expanded facility, including packaging, testing, and related production. Nvidia’s upfront payment ensures funding for the buildout while securing future capacity under their multi-year collaboration.
According to Nvidia’s Executive Vice President Debora Shoquist, Amkor’s global footprint along with its new US investment will strengthen supply chain resilience for AI technology. Amkor CEO Kevin Engel noted the agreement accelerates their long-term plans and expands U.S. capabilities to support critical AI infrastructure through full packaging and testing solutions.
The Arizona project adds domestic production to Amkor’s established manufacturing network in Asia, offering customers a more geographically balanced supply chain and placing advanced packaging closer to US semiconductor and computing hubs.
This Nvidia deal extends Amkor's existing partnership with the chipmaker and follows their 10-year contract with Taiwan Semiconductor Manufacturing Co., announced earlier in June 2026, which also targets advanced packaging services in Arizona.
Amkor’s stock had an intraday high of $78, surging over 16% before retreating to close near $65.67, slightly above the previous session. The company’s market capitalization hovered around $16.27 billion at the time.
