By Emon Reiser


Shares for Amkor Technology were trading higher after the company said it has signed a decade-long partnership that it says accelerates the U.S. semiconductor supply chain.

Shares rose 6.7% to $91.19 in midday Tuesday trading. The stock has more than doubled in value year to date.

Amkor said the deal with chipmaker Taiwan Semiconductor Manufacturing Co. establishes a collaboration framework, wherein TSMC will procure packaging and testing services from Amkor. TSMC manufactures chips designed by major technology players such as Nvidia, AMD and Apple. Amkor tests and packages them.

The partnership comes amid a memory-chip shortage, spurred by the rapid build-out of infrastructure for artificial intelligence. Tight supply is driving up prices and boosting revenue and earnings for memory producers and companies in their radius. What's more, the Trump administration last year took aim at chipmakers to dramatically reduce the country's reliance on semiconductors made overseas.

Amkor CEO Kevin Engel said the partnership with TSMC provides its customers with a full U.S.-based supply chain, from advanced silicon manufacturing to tested packaged devices, from facilities in Arizona.


Write to Emon Reiser at emon.reiser@wsj.com


(END) Dow Jones Newswires

06-16-26 1258ET