AI computing power war spreads to “advanced packaging”: Nvidia (NVDA.US) spent $1.5 billion to increase AMKR.US technology (AMKR.US) and join hands to expand the Arizona sealed testing plant

The Zhitong Finance App learned that Nvidia (NVDA.US) and AMKR.US (AMKR.US) signed an agreement worth 1.5 billion US dollars to help consolidate the latter's chip packaging factory, which is also part of a broader effort to expand the semiconductor business in the US.

According to a statement on Thursday, the agreement involves an advance payment from Nvidia that will help EMAG increase its manufacturing capacity in Arizona. The news prompted EMAG's stock price to soar about 15% in after-hours trading.

The two companies said the collaboration will focus on chip packaging and testing technology in the field of artificial intelligence. Packaging is a critical final process in semiconductor manufacturing. In this process, the chip is inserted into the case so that it can be connected to other components.

The two companies said the Arizona plant will complement AIMAK's production in Asia, thereby creating “a global supply chain with geographical diversity and resilience.” Headquartered in Tempe, Arizona, EMAC is the world's leading provider of chip packaging and testing services.

As the company with the highest market capitalization in the world, Nvidia is using its resources to expand the AI computing industry, and this deal is one of many agreements that Nvidia has intensively signed. Nvidia is the largest manufacturer of artificial intelligence accelerators, and this chip is a valuable core component for developing and running AI software.

As the semiconductor industry tries to keep up with explosive demand, advanced packaging (Advanced packaging) for components such as accelerator chips has become a supply bottleneck. These products increasingly require the use of special materials and technology to enable them to connect to high-end computers entering data centers.