NVIDIA designs the computer chips that much of AI technology relies on. The company just announced a $1.5 billion partnership with Tempe-based Amkor for chip packaging and testing.
Packaging is the process of enclosing semiconductors in metal and plastic casings. It’s a critical step in semiconductor manufacturing as it protects chips from damage and allows them to be integrated with other computer parts.
The partnership between NVIDIA and Amkor is a step toward onshoring more of the chip manufacturing process in the United States, as the majority packaging for chips currently takes place offshore.
Amkor says bringing the packaging and testing to Arizona will help build a more resilient supply chain for AI chips.
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