Key insights
- Amkor Technology (AMKR) shares rose significantly on news of an expanded advanced packaging partnership with Nvidia (NVDA), targeting a over 300% increase in interposer wafer capacity in South Korea by 2028. This expansion supports Nvidia's AI platform growth and broader supply chain capacity scaling. Nvidia is also increasing substrate capacity and has made significant capacity reservation advances to other partners like KYEC for US testing facilities and SPIL for
Investing.com -- Amkor Technology (NASDAQ: AMKR) shares surged 8% Wednesday following news that Nvidia (NASDAQ: NVDA) plans to significantly expand its advanced packaging partnership with the semiconductor assembly firm into South Korea.
Under the expanded agreement, Nvidia and Amkor aim to boost advanced packaging capacity in South Korea, targeting a more than 300% increase in interposer wafer capacity by the end of 2028. The initiative, alongside Amkor’s ongoing development of new South Korean manufacturing facilities, will support higher production volumes for Nvidia’s current and next-generation AI platforms.
The deal is part of Nvidia’s broader effort to scale global manufacturing capacity across multiple supply chain partners to keep pace with surging demand for AI infrastructure. The graphics giant is collaborating with Amkor, IBIDEN, King Yuan Electronics (KYEC), Samsung Electro-Mechanics, Siliconware Precision Industries (SPIL), and Unimicron Technology to expand capabilities across substrates, advanced packaging, testing, and optical engines.
Key supply chain developments include:
Nvidia plans to increase substrate capacity for its products 2.5-fold over the next three years. Samsung Electro-Mechanics joins Nvidia’s substrate supply chain immediately via existing South Korean facilities, with production allocated to Nvidia expected to represent a major share of its total package substrate capacity by 2028. Additionally, Nvidia is backing Unimicron’s substrate expansion in Taiwan through a capacity reservation agreement, set to bring online capacity starting Q2 2027 and reach full scale by mid-2028.
Nvidia is providing a $1.1 billion capacity reservation advance to KYEC to fund new U.S. testing facilities and equipment, targeting high-volume production by April 2027.
SPIL plans to expand Taiwanese manufacturing capacity for optical engines used in co-packaged optics, targeting a 15-fold increase by mid-2027 and double that capacity again by late 2028.
Original Article