Amkor Technology (AMKR) shares surged 11.48% in pre-market trading, driven by the announcement of a landmark multi-year strategic partnership with Nvidia to co-develop next-generation AI semiconductor advanced packaging and test technologies.

Under the agreement, Nvidia will invest approximately $1.5 billion to jointly expand Amkor’s Arizona packaging and testing facility, with Nvidia providing a prepayment to support the capacity expansion. The collaboration will focus on advanced packaging technologies such as high-density interconnects and next-generation heterogeneous integration, aiming to meet the growing AI demand for higher bandwidth and lower power consumption.

This partnership solidifies Amkor’s position as a core supplier in AI computing advanced packaging and marks a significant diversification of Nvidia's supply chain beyond its primary packaging partner TSMC. The news also arrives just ahead of Amkor’s upcoming quarterly earnings release, adding to investor optimism around the stock.