Amkor Technology, Inc. (NASDAQ: AMKR) announced a multi-year strategic partnership with Nvidia that includes a $1.5 billion prepayment from Nvidia to support the expansion of Amkor's advanced packaging capacity in the United States.

Under the agreement, the two companies will develop advanced semiconductor packaging and test technologies for AI and accelerated computing platforms. The collaboration will focus on high-density interconnects and next-generation heterogeneous integration, with both companies aligning their long-term technology roadmaps.

Amkor's expansion efforts are centered on its Arizona campus, complementing its existing manufacturing operations across Asia. The partnership is aimed at building a geographically diverse supply chain for AI infrastructure.

Debora Shoquist, Executive Vice President of Operations at Nvidia, said: "Amkor's global capabilities, combined with their committed investment in the United States, are critical components of building resilient AI infrastructure and accelerating next-generation technologies."

Kevin Engel, chief executive officer of Amkor Technology, said: "Our agreement with NVIDIA accelerates our long-term roadmap and supports our ability to deliver full turnkey advanced packaging and test solutions, leveraging our global footprint while expanding U.S. capabilities to support critical AI infrastructure."

Amkor said it has previously supplied packaging solutions for Nvidia products including data center processors and networking chipsets. The expanded agreement is intended to bring additional technologies to market at scale, according to a company press release.