Amkor and Nvidia Lift Agreements to $3 Billion With $1.3 Billion Korea Expansion
Key Facts
Amkor announced on October 21 a new $1.3 billion agreement to expand advanced packaging capacity in South Korea, bringing the value of its multiyear agreements with Nvidia in Korea and Arizona to $3 billion. Amkor said the new commitment supports capacity expansion in Korea as Nvidia works to expand its suppliers’ capabilities to support AI infrastructure buildout. The two companies are targeting a more than 300% increase in interconnect chip capacity by the end of 2028. Amkor CEO Kevin Engel said the partnership “underscores the vital role advanced packaging plays in enabling next-generation AI platforms.” In a separate announcement on supplier plans, Nvidia CEO Jensen Huang described demand as “extraordinary,” adding that “capacity is the constraint.”
The Korean target focuses on interconnect chips, part of the advanced packaging ecosystem that Nvidia is expanding its supply of as it plans to increase production. Nvidia said its collaboration with Amkor aims to support production of its current and future platforms and strengthen supply-chain resilience. The targeted capacity increase by the end of 2028 provides a clear timeline for the expansion tied to the agreement. The deal is part of a broader Nvidia announcement on expanding capacity among several suppliers. The Korean agreement is therefore linked to a broader effort to ease capacity constraints across multiple stages of the chip supply chain.
The previous Arizona agreement, announced by Amkor on July 23, 2026, was valued at $1.5 billion to expand advanced packaging and development capacity in the United States. The company said the multiyear U.S. agreement supports the expansion of its domestic capabilities, while the October announcement described the existing Arizona and Korea agreements as joint commitments totaling $3 billion. Taken together, the two deals show the companies’ cooperation expanding from a U.S. site to a Korean one. Amkor is seeking to increase capacity across multiple production centers, while Nvidia aims to support production of its current and future platforms. Construction of Amkor’s Arizona facility began in the second half of 2025, according to a company filing.
The expansions come as Amkor had reported record quarterly sales of $1.90 billion in the second quarter of 2026, up 26% year over year, and net income of $174 million. Engel said the company posted record revenue in computing, automotive and industrial markets during the quarter, attributing it to strong demand. Capital spending totaled $904.6 million in 2025, compared with $743.8 million in 2024, according to its annual filing. Areas of focus included advanced packaging and test equipment and the Arizona facility. The company’s previous investment record places the Korean agreement within a capacity expansion that requires production spending, alongside its multiyear commitments with Nvidia.
Amkor shares rose 4.7% on Wednesday, October 21, following the announcement of the Korean agreement, while trading data showed a daily gain of 4.87% and a close at $43.73. Nvidia shares closed at $210.96 on October 23. Amkor’s recorded move came in the session when the deal was announced, while Nvidia’s closing price was two days later. The facts provided do not include comparative share prices for other companies, so the trading context here is limited to the two companies involved. The next near-term milestone is Amkor’s quarterly results, scheduled for release after trading closes on October 26.
Amkor is scheduled to report third-quarter results after the market closes on Monday, October 26, 2026, with management set to hold a discussion call at 5 p.m. Eastern time. The results follow the Korean expansion announcement, making them the company’s first upcoming financial disclosure after the new agreement. Amkor also said it will showcase its packaging and test capabilities at Nvidia’s conference in Washington from November 30 to December 3, 2026. These dates provide two announced milestones for the company after the agreement: the results announcement and then its capabilities showcase at the conference. The agreement announcement did not specify when it would begin to affect financial results or provide further details on the capacity increase phases.