Tech & AI
Amkor expands Nvidia chip packaging deal in South Korea
Amkor Technology signed a new agreement with Nvidia to add advanced chip packaging capacity in South Korea. The deal deepens a partnership built on rising demand for AI chips.
Quick Read
- Amkor Technology signed a new agreement with Nvidia to expand advanced chip packaging capacity in South Korea.
- The plan aims to sharply raise Amkor's interposer wafer capacity by the end of 2028.
- The deal adds to existing multi-year agreements between the companies in South Korea and Arizona.
- Amkor is scheduled to report quarterly results on Oct. 26.
What did Amkor and Nvidia agree?
Amkor Technology (Nasdaq: AMKR) secured a new agreement with Nvidia (Nasdaq: NVDA) to build more advanced chip packaging capacity in South Korea. Amkor shares traded higher on Wednesday after the news, according to reports.
Why it matters: Advanced packaging is the step that assembles separate chips into a finished processor. The plan aims to sharply increase Amkor's interposer wafer capacity by the end of 2028. An interposer is a thin layer that links chips together inside a package.
The new deal builds on multi-year agreements the companies already have in South Korea and Arizona.
Why does packaging matter for AI chips?
AI processors combine several chips that must pass data quickly while using little power. The companies said packaging now matters more for performance, power use, and how well chips work together.
The investment is meant to match Amkor's factory capacity with Nvidia's long-term growth plans. Amkor CEO Kevin Engel said the expansion strengthens the company's global manufacturing footprint.
Nvidia shares rose 2.5% on Wednesday. The technology sector fund gained 1.7%. Nvidia stock then fell 1.2% in after-hours trading.
What comes next for Amkor?
What’s next: Amkor is scheduled to report quarterly results on Oct. 26. Analysts expect earnings per share, or profit per share, to rise from a year earlier, according to estimates cited in reports.
The stock still faces open questions. Reports noted that the shares traded below their longer-term moving averages before the news. That is often a sign of a recent slide. A moving average is a stock's average price over a set period.
Amkor also plans to show its packaging and testing work at Nvidia's GTC conference in Washington, D.C., from Nov. 30 to Dec. 3.
For readers
What it could mean for you: People who own Amkor shares directly feel the company's news in full. No other holdings offset it. The expanded Nvidia deal ties more of Amkor's planned factory capacity to Nvidia's AI processors. That could help future sales if AI demand holds. But it may also leave the company more exposed to any slowdown in Nvidia's orders. The Oct. 26 results may show how management expects the South Korea expansion to feed into revenue and spending.
Questions and answers
What is advanced chip packaging?
Advanced packaging is the step that assembles separate chips into a finished processor. It affects how fast the chips share data and how much power they use, which matters for AI processors.
What did Amkor agree with Nvidia?
Amkor agreed to expand advanced packaging capacity in South Korea for Nvidia. The deal adds to existing multi-year agreements between the companies in South Korea and Arizona.
When does Amkor report earnings?
Amkor is scheduled to report quarterly results on Oct. 26. Analysts expect earnings per share to rise from a year earlier, according to estimates cited in reports.
The numbers
| Nvidia (NVDA) price | $221.97 |
|---|---|
| Nvidia (NVDA) change | +2.54% |
| Nvidia (NVDA) market value | $5.3 trillion |
| Nvidia (NVDA) 52-week high | $239.24 |
| S&P 500 change | +0.58% |
| 10-year Treasury yield | 5.13% |
Wednesday’s close
Companies in this story
Share this story
Not investment advice.
