The war for global hegemony is on. And America is striking first.
Because a major investment deal is about to transform the United States.
A new multibillion-dollar partnership is moving to rebuild a critical missing piece of America’s artificial intelligence chip supply chain, marking a fresh win for the push to bring high-tech manufacturing back to U.S. soil.
Nvidia Bets Big on American Chip Packaging
Nvidia will pay chip packaging firm Amkor Technology a $1.5 billion prepayment as part of a multi-year partnership to expand advanced packaging operations in Arizona, according to a Thursday press release from Amkor. Advanced packaging, the process of assembling chips to power AI technologies, is predominantly completed in Asia today, with the Asia Pacific region holding more than 80% of global outsourced semiconductor assembly and test capacity.
The two firms plan to create what the release described as “a geographically diverse and resilient global supply chain,” expanding Amkor’s manufacturing footprint into the United States after decades of the industry concentrating its advanced packaging work overseas.
“AI is driving a generational shift in technology, transforming every industry and creating a unique opportunity to reinvigorate American manufacturing and supply chains,” said Debora Shoquist, Nvidia’s Executive Vice President of Operations. “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.”
Amkor CEO Sees Deal as Accelerating Long-Term U.S. Roadmap
“This strategic partnership with NVIDIA underscores the central role advanced packaging plays in enabling the future of AI,” said Kevin Engel, chief executive officer of Amkor Technology. “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.”
Deal Addresses Growing Reliance on Taiwan Amid Chip Wars
The push to bring advanced packaging stateside comes as the U.S. has grown “more reliant on Taiwan than ever” due to the chip packaging bottleneck, the New York Times reported in June, noting that Taiwan Semiconductor Manufacturing Company packages “nearly all” chips for its Taiwanese partners, Nvidia, and other major tech firms.
Asia Times had already flagged advanced packaging as the “next front in the chip wars” back in August 2024, citing China’s growing presence in the chip market even as TSMC simultaneously expands its own advanced packaging capacity in Taiwan. The Nvidia-Amkor partnership represents one of the most significant private-sector moves yet to close that strategic gap and reduce America’s exposure to potential supply chain disruptions overseas.
