Advanced packaging drives Amkor growth
Amkor Technology is accelerating its push into advanced semiconductor packaging, backed by strong demand from AI and EV markets, strategic partnerships, and a major new U.S. facility despite short-term margin pressure from heavy investment.
Amkor Technology is strengthening its position in the fast-growing advanced semiconductor packaging market, with 82.8% of its FY2025 revenue now coming from advanced products.
The company reported $6.71 billion in revenue for the year, up 6% year-on-year, alongside net income of $374 million and earnings per share of $1.50—both exceeding analyst expectations.
The company’s growth is being driven by rising demand for high-performance chips used in artificial intelligence, electric vehicles, and advanced driver assistance systems.
Amkor’s partnerships with major semiconductor players, including Nvidia and Taiwan Semiconductor Manufacturing Company (TSMC), place it at the center of this expanding ecosystem.
A key pillar of its strategy is a new advanced packaging facility in Arizona, expected to begin production by 2028.
Supported by U.S. federal subsidies and increasing free cash flow, the site represents a multi-billion-dollar investment aimed at expanding domestic capacity and aligning with the broader shift toward onshore semiconductor manufacturing.
Despite its growth momentum, Amkor faces near-term profitability pressures as capital expenditure rises sharply.
The company expects to spend between $2.5 billion and $3 billion in 2026, up significantly from $905 million in 2025, which is likely to compress margins in the short term.
Still, analysts point to strong forward earnings growth and relatively lower valuation compared to peers as signs of upside potential.
With advanced packaging demand projected to grow steadily over the next decade, Amkor appears well-positioned to capitalise on a critical segment of the semiconductor value chain.
