Amkor Technology confirmed it is working with Advanced Micro Devices on packaging AMD's chips as the company accelerates a strategic push into more complex packaging services.
The disclosure comes after Amkor acquired an additional 67 acres in Arizona this week, land located next to a 104-acre parcel where the company is building a new campus. That campus is planned to begin production in 2028, supporting Amkor's broader move into higher-value packaging work.
Modern data center processors from firms such as AMD and Nvidia are often composed of multiple dies assembled within a single package. According to the company, those packaging steps have emerged as a significant bottleneck in chip manufacturing - a constraint Amkor is now attempting to address by expanding its capabilities.
Historically focused on less-complex packaging tasks, Amkor is advancing into more sophisticated packaging technologies. Part of that expansion includes a collaboration with Taiwan Semiconductor Manufacturing to employ some of TSMC's technology at an Arizona facility, enabling joint customers to access certain older process technologies from TSMC through Amkor's services.
Amkor has previously outlined planned work at the Arizona site with Nvidia and Apple. Chief Executive Officer Kevin Engel said the company is also engaging with AMD as it seeks to take on greater technical scope and closer integration with chipmakers.
"We're moving up the value chain," Engel said. "We're more integrated with the customers, and that's really changing the dynamic to where we can extract more value out of our services."
At an investor event Thursday, Amkor provided multi-year revenue targets, projecting between $8.5 billion and $9.5 billion in revenue by 2028 and $11 billion in annual sales by 2030. Those targets frame the company's growth expectations as it builds out capacity and new service offerings.
Implications
- Amkor's moves underline the growing importance of advanced packaging in the semiconductor supply chain, particularly for data center chips that rely on multi-die assemblies.
- The Arizona land purchases and campus development signal a substantial industrial and infrastructure commitment in the region tied to semiconductor manufacturing and packaging capacity.
- Partnerships leveraging TSMC technology and relationships with large chip customers suggest Amkor is aiming to deepen its role as an integrated provider rather than a specialist in only simpler packaging services.