Amkor Technology (NASDAQ: AMKR) announced a new $1.3 billion agreement with Nvidia to expand semiconductor packaging capacity in South Korea, bringing the total value of multi-year agreements between the two companies to $3 billion when combined with an existing Arizona collaboration.

The agreements involve prepayments intended to align Amkor's manufacturing capacity with Nvidia's long-term production plans for AI and accelerated computing platforms.

"Our partnership with Nvidia underscores the critical role advanced packaging plays in enabling next-generation AI platforms," said Kevin Engel, president and chief executive officer of Amkor Technology. "These investments build on our global manufacturing footprint and strengthen our ability to support customers through our operations in both the United States and South Korea."

Debora Shoquist, executive vice president of operations at Nvidia, said growing demand for accelerated computing is increasing the need for advanced packaging capacity. "Our work with Amkor helps us scale production of current and next-generation platforms while strengthening the resilience of our global supply chain," she said.

Amkor is scheduled to exhibit at Nvidia GTC Washington, D.C. from Nov. 30 to Dec. 3, where the company plans to showcase its packaging and test capabilities.