Ag and Cu powders were mechanically alloyed using high-energy planetary milling to evaluate the sinter-bonding characteristics of a die-attach paste containing particles of these two representative conductive metals mixed at atomic scale. This resulted in the formation of completely alloyed Ag-40Cu particles of 9.5 µm average size after 3 h. The alloyed particles exhibited antioxidation properties during heating to 225°C in air; the combination of high pressure and long bonding time at 225°C enhanced the shear strength of the chip bonded using the particles. Consequently, the chips sinter-bonded at 225°C and 10 MPa for 10 min exhibited a sufficient strength of 15.3 MPa. However, an increase in bonding temperature to 250°C was detrimental to the strength, due to excessive oxidation of the alloyed particles. The mechanically alloyed phase in the particle began to decompose into nanoscale Ag and Cu phases above a bonding temperature of 225°C during heating.