Amkor Shares Rise 4.8% After $1.3 Billion Nvidia Packaging Deal

Amkor Technology shares rose 4.8% near the end of trading Wednesday after the company announced a $1.3 billion agreement with Nvidia to expand advanced chip packaging capacity in South Korea.

The stock traded at $43.72 at 3:59:56 p.m. ET (19:59:56 UTC) on Oct. 21, compared with a previous close of $41.70. It had been nearly 6% higher at 9:29:30 a.m. ET (13:29:30 UTC), just before regular trading began.

The agreement adds capacity for interposer wafers, which help connect processors and high-bandwidth memory in advanced chip packages. The companies aim to increase that capacity in South Korea by more than 300%. The target applies to interposer wafers, rather than all packaging capacity.

The project follows a $1.5 billion multiyear agreement announced in July to develop packaging technology and expand Amkor’s capacity in Arizona. Amkor values its multiyear Nvidia agreements in Arizona and South Korea at $3 billion. The two separately announced amounts total $2.8 billion, and the announcements do not explain the difference.

Amkor President and CEO Kevin Engel said, “These investments build on our global manufacturing footprint.” The South Korean interposer expansion plan has a capacity target set for the end of 2028.