NVIDIA and Amkor Plan Over 300% Rise in South Korean Interposer Capacity

NVIDIA and Amkor Technology plan to expand interposer wafer capacity in South Korea by more than 300%, targeting a production constraint for AI chips.

In advanced chip packages, interposers make dense connections between processors and high-bandwidth memory. The target applies to interposer wafers, not to all packaging capacity. The additional capacity has yet to come online.

Amkor's new $1.3 billion agreement with NVIDIA will support the South Korean expansion. The companies announced a $1.5 billion multiyear agreement in July to develop packaging technology and expand Amkor's capacity in Arizona. That earlier deal gives the partnership a U.S. manufacturing component.

NVIDIA also aims to raise substrate capacity to 2.5 times its current level over three years through agreements with suppliers in Japan, South Korea and Taiwan. It expects semiconductor testing capacity to double from calendar 2026 to calendar 2027.

Amkor broke ground on an expansion in Gwangju on Oct. 19. The newly announced South Korean interposer target is set for the end of 2028.