AI computing power warfare spreads to "advanced packaging": NVIDIA Corporation (NVDA.US) tosses 1.5 billion US dollars to increase investment in Amkor Technology (AMKR.US), and jointly expand the Arizona packaging and testing factory.

NVIDIA Corporation (NVDA.US) and Amkor Technology (AMKR.US) have signed a $1.5 billion agreement aimed at helping strengthen the latter's chip packaging facilities, as part of a broader initiative to expand semiconductor business in the United States. According to a statement on Thursday, the agreement involves a prepayment from NVIDIA Corporation, which will help Amkor enhance its manufacturing capabilities in Arizona. The news sent Amkor's stock price soaring by around 15% in after-hours trading. Both companies stated that this collaboration will focus on chip packaging and testing technology in the field of artificial intelligence. Packaging is a crucial final step in semiconductor manufacturing, where chips are placed into packages to enable them to connect with other components. The factories in Arizona are said to complement Amkor's production in Asia, creating "a global supply chain with geographical diversity and resilience." Based in Tempe, Arizona, Amkor is a leading provider of chip packaging and testing services globally. As the world's most valuable company, NVIDIA Corporation is leveraging its resources to expand in the artificial intelligence computing industry, and this deal is one of many agreements signed by NVIDIA Corporation. NVIDIA Corporation is the largest manufacturer of AI accelerators, which are crucial components for developing and running AI software. With the semiconductor industry trying to keep up with explosive demand, advanced packaging for components like accelerator chips has become a supply bottleneck. These products increasingly require special materials and technologies to connect with high-end computers entering data centers.