---
title: "Nvidia pays $1.5 billion toward Amkor's US packaging build; Amkor's depreciation bill starts in 2027"
description: "A 274.27 billion won construction filing on October 8 put a June 23, 2028, finish date on Amkor's Gwangju expansion. Nvidia's $1.5 billion prepayment lands around 2027 and Arizona depreciation starts in the same window, which makes the October 26 report the last clean quarter on the calendar."
publisher: "The Inference"
section: "Silicon"
published: 2026-10-09T13:21:19.164Z
modified: 2026-10-09T13:21:19.164Z
canonical: https://theinference.org/article/nvidia-pays-1-5-billion-toward-amkor-s-us-packaging-build-amkor-s-depreciation-bill-starts-in-2027
language: en
keywords: "Amkor Technology, Nvidia, Advanced Packaging, Semiconductors, Capital Spending"
---

# Nvidia pays $1.5 billion toward Amkor's US packaging build; Amkor's depreciation bill starts in 2027

> A 274.27 billion won construction filing on October 8 put a June 23, 2028, finish date on Amkor's Gwangju expansion. Nvidia's $1.5 billion prepayment lands around 2027 and Arizona depreciation starts in the same window, which makes the October 26 report the last clean quarter on the calendar.

A construction filing in Seoul has done what Amkor's investor decks have not: put an exact date on the AI buildout. [Dongbu Construction disclosed on October 8 a 274.27 billion won contract, excluding VAT](https://rallies.ai/news/dongbu-wins-27427-billion-won-amkor-korea-plant-expansion-contract-d9cbce67f6030ce9), to expand [Amkor Technology Korea](https://theinference.org/markets/companies/amkor-technology)'s Building D at Gwangju, running from October 8, 2026, to June 23, 2028, and worth 15.60% of the builder's 2025 revenue [1]. [Korea's exchange disclosure](https://www.msn.com/ko-kr/money/%EA%B2%BD%EC%A0%9C/%EB%8F%99%EB%B6%80%EA%B1%B4%EC%84%A4-%EC%88%98%EC%A3%BC%EA%B3%B5%EC%8B%9C-%EC%95%B0%EC%BD%94%ED%85%8C%ED%81%AC%EB%86%80%EB%A1%9C%EC%A7%80%EC%BD%94%EB%A6%AC%EC%95%84-%EA%B4%91%EC%A3%BC%EC%82%AC%EC%97%85%EC%9E%A5-d%EB%8F%99-%EC%A6%9D%EC%B6%95%EA%B3%B5%EC%82%AC-2-742-7%EC%96%B5%EC%9B%90-%EB%A7%A4%EC%B6%9C%EC%95%A1%EB%8C%80%EB%B9%84-15-60/ar-AA2dO24w) confirms the amount and the 20-month window [2]. Gwangju is earmarked for data center and advanced packaging programs [3].

## Nvidia pays first

[The $1.5 billion agreement Nvidia announced on July 23](https://ir.amkor.com/news-releases/news-release-details/amkor-technology-announces-strategic-partnership-nvidia-expand) is, in structure, a customer financing a factory: [Nvidia](https://theinference.org/markets/companies/nvidia) pays a prepayment to expand Amkor's US packaging capacity [4][5][12]. Amkor told investors the cash arrives around 2027 and is credited back quarterly as US services deliver, over a term of five to 10 years [3]. That sits beside [the 10-year US packaging agreement with TSMC signed in June](https://theinference.org/article/korea-unblocked-amkor-s-next-factory-in-two-days-nvidia-s-1-5-billion-arrives-in-2027) [3][5].

The second quarter showed the leverage in the existing factories: [record revenue of $1.9 billion, up 26%](https://www.simpletechtrend.com/en/post/amkr-q2-2026-earnings-cpo-advanced-packaging-en), gross margin of 16.8% against 12.0% a year earlier, diluted EPS of $0.70 versus $0.22, and utilization up from the 50s into the 70s [3].

*Chart: **Gross margin has recovered almost five points from its early-2025 trough** Line chart of Amkor's gross margin by quarter from Q3 2023 to Q2 2026, falling to 11.9 percent in Q1 2025 and recovering to 16.8 percent in Q2 2026.*

*Amkor's gross margin by quarter, percent of revenue, from its SEC filings; the Q2 2026 figure of 16.8 percent compares with 12.0 percent a year earlier [3]. Third-quarter guidance of 18.5-19.5 percent is guidance and is not plotted. [13]*

## The bill lands first too

Between the prepayment and the first invoice sits the build. First-half capital spending reached $688.4 million, up from $226.1 million a year earlier, against [a full-year plan of $2.5-3.0 billion](https://marketiv.app/news/amkor-lifts-2026-capex-to-2-5-3-billion-on-ai-packaging-demand-07102026) [6][7]. [The Arizona campus is now a planned $12 billion project](https://www.gpec.org/news/press-releases/amkor-technology-expands-peoria-investment-12-billion/), its second phase starting construction in late 2027 and finishing by the end of 2029 [8]. Behind it: $2.5 billion of debt, a $1.15 billion zero-coupon convertible issued in May, and $1.47 billion of purchase obligations [3][6].

Management has already flagged US factory depreciation as a 2027 and 2028 margin headwind [3], a warning sell-side analysts repeat [9], and the SiP move to Vietnam idles Korean capacity into the first half of 2027 [3]. Nvidia's money buys the building. Amkor's margin line buys the empty months.

*Chart: **Quarterly capex has run near triple year-ago levels for two straight quarters** Column chart of Amkor's quarterly capital spending from Q3 2023 to Q2 2026, climbing to a series high of $0.44 billion in Q2 2026, roughly triple the year-earlier quarter.*

*Quarterly capital spending in USD billions, from Amkor's SEC filings; the two 2026 bars sum to $0.65B on that basis against $688.4M of company-reported first-half capex [6]. The full-year 2026 plan of $2.5-3.0 billion is guidance and is not plotted. [13]*

## What October 26 decides

Third-quarter guidance is the clean quarter: revenue of $1.95-2.05 billion, gross margin of 18.5-19.5%, EPS of $0.72-0.82 [3], [reported after the close on October 26](https://www.streetinsider.com/Business+Wire/Amkor+Technology+to+Announce+Third+Quarter+2026+Financial+Results+on+October+26%2C+2026/27146165.html) [10]. The market has already banked the gain: shares up 84.5% over twelve months, closing at $51.00 on October 8 [9][11], with consensus 2026 EPS of $2.60 implying 73.3% growth [6].

No filing says how much of the depreciation drag Nvidia's money offsets; the disclosures set dates, not totals. The read-through runs wide: Nvidia locks in US packaging, and [the tool cycle, with Onto Innovation on the inspection critical path](https://thefirsttick.com/briefs/2026-10-05), follows the cranes [12]. The number to listen for on October 26 is whether Q4 commentary puts a figure on the 2027 depreciation cadence. After this print, the capex, the prepayment and the depreciation all land in the same window.

## Takeaway

Dongbu's 274.27 billion won filing puts a June 23, 2028 finish date on Amkor's Gwangju expansion, Nvidia's $1.5 billion prepayment lands around 2027, and US depreciation starts in the same window, so October 26 is the last clean quarter before all three collide.

## Sources

1. [Rallies (Publicnow), Dongbu wins 274.27 billion won Amkor Korea plant expansion contract, 9 October 2026](https://rallies.ai/news/dongbu-wins-27427-billion-won-amkor-korea-plant-expansion-contract-d9cbce67f6030ce9)
2. [Hankyung via MSN, Dongbu Construction order disclosure: Amkor Technology Korea Gwangju Building D expansion, 274.27bn won, 15.60% of revenue, 8 October 2026](https://www.msn.com/ko-kr/money/%EA%B2%BD%EC%A0%9C/%EB%8F%99%EB%B6%80%EA%B1%B4%EC%84%A4-%EC%88%98%EC%A3%BC%EA%B3%B5%EC%8B%9C-%EC%95%B0%EC%BD%94%ED%85%8C%ED%81%AC%EB%86%80%EB%A1%9C%EC%A7%80%EC%BD%94%EB%A6%AC%EC%95%84-%EA%B4%91%EC%A3%BC%EC%82%AC%EC%97%85%EC%9E%A5-d%EB%8F%99-%EC%A6%9D%EC%B6%95%EA%B3%B5%EC%82%AC-2-742-7%EC%96%B5%EC%9B%90-%EB%A7%A4%EC%B6%9C%EC%95%A1%EB%8C%80%EB%B9%84-15-60/ar-AA2dO24w)
3. [Simpletechtrend, Earnings Call Highlights: Amkor Technology (AMKR) 2026 Q2, Q2 2026 earnings call coverage](https://www.simpletechtrend.com/en/post/amkr-q2-2026-earnings-cpo-advanced-packaging-en)
4. [Amkor Technology IR, Amkor Technology Announces Strategic Partnership with NVIDIA, a $1.5 Billion Multi-Year Agreement, 23 July 2026](https://ir.amkor.com/news-releases/news-release-details/amkor-technology-announces-strategic-partnership-nvidia-expand)
5. [TechRepublic, Nvidia Signs $1.5B Deal to Expand US AI Chip Packaging, 24 July 2026](https://www.techrepublic.com/article/news-nvidia-amkor-us-ai-chip-packaging-deal/)
6. [Zacks via TradingView, Amkor's Capital Spending Surges: Is the Growth Worth the Cost?, October 2026](https://fr.tradingview.com/news/zacks:cb1927341094b:0-amkor-s-capital-spending-surges-is-the-growth-worth-the-cost/)
7. [MarketIV, Amkor Lifts 2026 CapEx to $2.5-$3 Billion on AI Packaging Demand, 7 October 2026](https://marketiv.app/news/amkor-lifts-2026-capex-to-2-5-3-billion-on-ai-packaging-demand-07102026)
8. [Greater Phoenix Economic Council, Amkor Technology expands Peoria investment to $12 billion, 8 September 2026](https://www.gpec.org/news/press-releases/amkor-technology-expands-peoria-investment-12-billion/)
9. [Zacks via Yahoo Finance Canada, Amkor Surges 84% in a Year: Should You Hold or Fold the Stock?, 6 October 2026](https://ca.finance.yahoo.com/news/amkor-surges-84-hold-fold-143300194.html)
10. [StreetInsider (Business Wire), Amkor Technology to Announce Third Quarter 2026 Financial Results on October 26, 2026, 5 October 2026](https://www.streetinsider.com/Business+Wire/Amkor+Technology+to+Announce+Third+Quarter+2026+Financial+Results+on+October+26%2C+2026/27146165.html)
11. [Yahoo Finance UK, Amkor Technology, Inc. (AMKR) quote page, close of 8 October 2026](https://uk.finance.yahoo.com/quote/AMKR/options/?date=1863475200&straddle=false&type=all)
12. [The First Tick, Onto Innovation: The Metrology Layer Behind Amkor's Arizona Ramp, 5 October 2026](https://thefirsttick.com/briefs/2026-10-05)
13. [Amkor Technology, quarterly figures from its SEC filings, retrieved 9 October 2026](https://www.sec.gov/cgi-bin/browse-edgar?action=getcompany&CIK=0001047127)


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Nvidia pays $1.5 billion toward Amkor's US packaging build; Amkor's depreciation bill starts in 2027 — The Inference. Canonical: https://theinference.org/article/nvidia-pays-1-5-billion-toward-amkor-s-us-packaging-build-amkor-s-depreciation-bill-starts-in-2027