EL7.AI
StocksMediumUpdated×6•Originally published 21 October 2026•Updated 22 October 2026•
4 min read

Amkor and Nvidia Strike $1.3 Billion Deal to Expand Advanced Packaging in Korea

Key Facts

1Amkor announced a new $1.3 billion agreement with Nvidia to support capacity expansion in South Korea.
2Amkor's total multiyear agreements with Nvidia in Arizona and South Korea reached $3 billion.
3The Korean expansion aims to increase interposer wafer capacity by more than 300% by the end of 2028.
4The second phase brings planned investment in the Arizona campus to about $12 billion and adds 60000 square meters of cleanroom space.
5Amkor reported sales of $1.90 billion in the second quarter of 2026, up 26% year on year.

Amkor Technology announced a new $1.3 billion agreement with Nvidia in October 2026 to support capacity expansion in South Korea, as Nvidia describes production capacity as the constraint on meeting demand. Amkor said in a statement that the deal brings its total multiyear agreements with Nvidia, covering operations in Arizona and South Korea, to $3 billion. According to Nvidia's announcement on expanding supply chain capacity for AI infrastructure, the Korean expansion aims to increase interposer wafer capacity by more than 300% by the end of 2028. The partnership relies on advance payments that Amkor said align its manufacturing capacity with Nvidia's long-term growth plans. It added that these payments support efforts to meet growing demand for advanced packaging. Describing the scale of demand and the challenges of expansion, Jensen Huang said in Nvidia's statement: "Demand is extraordinary, and production capacity is the constraint."

The Korean deal follows a $1.5 billion U.S. agreement Amkor announced with Nvidia in July 2026 as part of the companies' collaboration on advanced packaging and development. When announcing the U.S. agreement, Amkor described it as a "multiyear advanced packaging and development agreement" that includes expanding its U.S. capacity. On the technical side, the company said the collaboration covers the development of high-density interconnects and next-generation heterogeneous integration. Amkor was already providing packaging solutions for Nvidia platforms, including data center processors and networking chips, according to the statement announcing the U.S. partnership. Alongside its collaboration with Nvidia, Amkor has a partnership with Taiwan Semiconductor Manufacturing Co., known as TSMC, establishing a framework that allows the Taiwanese company to purchase advanced packaging and testing services from Amkor.

In South Korea, Amkor's expansion plan in Gwangju includes an investment of 3 trillion won and the hiring of about 2000 people, according to a statement from South Korea's Ministry of Trade and Industry. In the United States, Amkor said the second phase of its Arizona campus expansion brings total planned investment in the project to about $12 billion. This phase includes adding 60000 square meters of cleanroom space to the campus, according to the area specified by the company in its expansion announcement. After completing the second phase, Amkor aims to bring total cleanroom space at the campus to about 93000 square meters. The company expects the first and second phases together to support a workforce of more than 3500 employees in Arizona, according to its statement on the project.

On financial performance, Amkor reported net sales of $1.90 billion in the second quarter of 2026, according to its earnings statement for the period. That represented a 26% increase from the same quarter a year earlier, according to the year-on-year comparison Amkor provided in its results. Net income attributable to Amkor totaled $174 million in the second quarter, according to the reported figures. Diluted earnings per share for the same period were $0.70, in results accompanied by the company's outlook for the following period. In guidance accompanying the disclosure, Amkor forecast third-quarter 2026 sales of between $1.95 billion and $2.05 billion.

On the Korean expansion timetable, the Gwangju plan targets completion of two buildings in the second half of 2027, according to dates announced by South Korea's Ministry of Trade and Industry. The plan includes completing two more buildings in the first half of 2028 as part of the site's expansion program. The ministry's timetable links completion of the buildings to the start of mass production under the project. Ahead of those dates, Amkor plans to release its third-quarter 2026 financial results after the market close on October 26, 2026, according to its announcement to investors. The company will hold a call to discuss the results the same day, starting at 5 p.m. U.S. Eastern time.