Amkor Technology (NASDAQ:AMKR) outlined a multi-year growth strategy centered on advanced semiconductor packaging, saying the technology has moved from a back-end manufacturing step to a critical part of system performance, integration and supply-chain design.
During the company presentation, executives said Amkor expects rising demand for high-performance computing, artificial intelligence, automotive electronics and regionalized semiconductor supply chains to reshape its revenue mix and improve its earnings profile over time.
Advanced Packaging Moves to the Critical Path
“Packaging is no longer a downstream manufacturing decision. It is system defining,” Haghighi said. He added that customers are bringing Amkor earlier into architecture and design discussions as they adopt chiplets, high-bandwidth memory, advanced power delivery and thermal management.
Haghighi said the shift is moving customer relationships from transactional programs to multi-year partnerships. Earlier engagement, he said, gives Amkor better visibility into customer roadmaps, timing and scale, which supports more disciplined capacity planning, smoother ramps and better utilization through cycles.
The company highlighted four major end markets:
- Computing and AI: Amkor said this is its fastest-growing market, driven by heterogeneous integration, chiplets, 2.5D packaging, high-density interconnects, co-packaged optics and proximity to high-bandwidth memory.
- Automotive: Amkor said electrification, software-defined vehicles, ADAS, centralized computing and power modules require long product cycles, stringent qualifications and high reliability.
- Communications: Haghighi said Amkor supports many functions in premium smartphones and expects semiconductor value per premium-tier smartphone to rise from $225 today toward $400 over the next few years.
- IoT and consumer devices: The company said wearables, hearables, smart home and health devices require compact system-in-package solutions and early collaboration around integration and power efficiency.
Haghighi also cited a customer video from Apple Chief Operating Officer Sabih Khan, who said advanced packaging is “a key component” of Apple silicon and described Amkor as “a critical partner” in helping build an end-to-end U.S. silicon supply chain.
Technology Roadmap Focuses on Scalable Platforms
Doug Scott, corporate vice president of advanced and mainstream business units, said Amkor sells high-tech packaging and test services that are essential to turning raw silicon into usable high-performance devices.
Scott said the industry is moving from individual chips to “systems of chips,” with packaging acting as the integration layer for bandwidth, latency, power delivery and reliability. He said Amkor’s roadmap is based on scalable platforms including flip chip, 2.5D and high-density fan-out.
The company said it has more than a dozen 2.5D engagements, four high-density fan-out redistribution layer devices ramping to production this year and its first high-density fan-out bridge package expected to ramp next year for AMD. Scott said AMD refers to that CPU device as Elevated Fanout Bridge, or EFB, and said it will initially ramp in South Korea with planned U.S. onshoring at Amkor Arizona.
Scott also said Amkor is developing three co-packaged optics opportunities and described the broader advanced packaging projects as “billion-dollar opportunities over their product life cycles.”
In a customer video, NVIDIA Executive Vice President of Operations Debora Shoquist said Amkor has contributed advanced packaging solutions that support the performance and reliability of NVIDIA products, adding that U.S. investments support a more resilient supply chain.
Arizona Expansion Anchors U.S. Manufacturing Strategy
Amkor executives repeatedly emphasized the company’s geographic footprint as a strategic pillar. Scott said Amkor operates across nine countries, 20 factories and 30,000 employees. He said South Korea is Amkor’s high-volume advanced packaging and test hub, Taiwan supports advanced wafer-level technology and test, Vietnam offers geodiversity and cost advantages, and Portugal supports automotive supply resiliency in Europe.
The company said its Arizona campus will add high-volume advanced packaging and test capacity in the United States, including wafer bump, wafer probe, flip chip, high-density fan-out assembly and final test. Scott said the first construction phase includes 355,000 square feet of clean room space and that the Arizona site will be Amkor’s most automated factory.
Amkor also said it recently secured an additional 67 acres adjacent to its 104-acre Arizona property, positioning the company for potential future growth. Construction, workforce development, equipment installation, line verification and qualification are expected to lead to high-volume production as programs clear qualification in 2028.
Kevin Zhang, deputy co-CEO of TSMC, said in a video that TSMC and Amkor have been long-standing partners in Asia and that their Arizona collaboration combines front-end fabrication with advanced packaging and test to support customers’ needs for geographic flexibility.
Financial Targets Call for Revenue and Margin Expansion
Megan Faust said Amkor is entering an “invest and ramp” phase from 2025 through 2028, followed by a “ramp and leverage” phase from 2028 onward. She said the first phase includes deliberate growth investments, capacity additions, program qualifications and advanced packaging platform scaling.
Faust said Amkor delivered $6.7 billion in revenue, a 14% gross margin and $1.50 in earnings per share in 2025. For 2028, the company targets revenue of $9 billion, plus or minus $500 million; gross margin of 17.5%, plus or minus 100 basis points; and EPS of $2.50, plus or minus $0.25.
By 2030, Amkor said it expects more than $11 billion in revenue, more than 22% gross margin and EPS greater than $5. Faust said the 2030 EPS target represents more than three times the 2025 result.
Faust said the model assumes a continued shift toward higher-value advanced packaging, initial Arizona ramp costs in 2027 and 2028, and revenue acceleration in 2029 and 2030 as the first Arizona facility comes online. She said the model does not yet include a second Arizona facility.
For Arizona, Faust said Amkor has announced two phases with an estimated total investment of $7 billion. Phase 1 high-volume manufacturing is targeted to begin in 2028, with full-scale build-out by 2030. At full scale, current visibility suggests approximately $1 billion in revenue and gross margins exceeding 30%, she said.
Q&A Highlights Visibility, Capital Spending and Customer Demand
In response to analyst questions, Amkor executives said their 2028 and 2030 targets are based on programs where the company has high visibility and confidence, while other pipeline opportunities could provide upside. Executives also said phase 2 of Arizona remains under customer discussion and is not yet included in the long-term model.
Faust said Amkor had $4.1 billion in total liquidity on a pro forma basis as of March 31, including $3 billion in cash and short-term investments and $1.1 billion on its line of credit. She said the company remains committed to growing its regular dividend and has not considered pausing or stopping it.
Amkor said its long-term strategy is based on earlier customer engagement, scalable technology platforms and a geographic footprint designed to support regional supply-chain needs while protecting utilization and returns.
About Amkor Technology (NASDAQ:AMKR)
Amkor Technology, Inc (NASDAQ:AMKR) is a leading provider of outsourced semiconductor packaging and test (OSAT) services, supporting integrated device manufacturers and semiconductor foundries worldwide. The company offers a broad range of advanced packaging solutions, including wafer bumping, flip chip, system-in-package and ball grid array technologies, designed to meet the performance, power and form-factor demands of applications across consumer electronics, automotive, communications and industrial markets.
In addition to packaging, Amkor delivers comprehensive test services such as wafer probing, final test, system-level test and digital, analog and mixed-signal testing, enabling customers to accelerate time-to-market and reduce total costs.
