What happened
Nvidia agreed to a $1.5 billion packaging deal with Amkor Technology. Advanced packaging links individual semiconductor pieces together into a single finished processor. AI hardware requires this complex packaging step to function. The agreement secures more manufacturing capacity for Nvidia chips.
The context
Advanced packaging is currently a major bottleneck in making AI hardware. Nvidia needs more packaging capacity to meet global demand for its processors. Working with partners like Amkor helps diversify its supply chain.
Sources
- Reuters ↗ via Google News Reported