stockrowWhat it does
Amkor Technology packages and tests semiconductors for other companies. Founded in 1968 and headquartered in Tempe, it is led by President and Chief Executive Officer Kevin K. Engel.
After a chip has been made on a silicon wafer, it must be prepared for use in an electronic product. Amkor’s work includes connecting the chip to a package or circuit board, combining components, and testing for defects and performance. Its services can cover individual steps or a sequence from package design through final testing and shipment.
Customers include integrated device manufacturers, which design and manufacture chips; fabless semiconductor companies, which design chips but outsource manufacturing; electronics manufacturers; and contract foundries. Foundries can also hire Amkor to package and test chips on behalf of their own customers. The wafers Amkor receives are generally consigned by customers rather than purchased by Amkor.
Its packages serve applications including smartphones, data centers, artificial intelligence, automobiles and wearables. Some combine several chips or other electronic components in a single package. Others connect a chip directly to a circuit board or use a package carrier. Testing can occur before packaging, after assembly or under stressful operating conditions to screen for early failures.
How it makes money
Amkor earns revenue by providing packaging and test services. Customers can buy one service or use a broader sequence that includes design, wafer processing, packaging, testing and shipment. Amkor has one reportable segment.
Its Advanced Products include flip chip, memory and wafer-level processing and related test services. Flip chip technology connects a chip to a package carrier or, for some wafer-level packages, directly to a circuit board. Some advanced packages combine high-bandwidth memory and processors; others are designed for smaller devices. Mainstream Products include wirebond and power-device packaging and related testing. Wirebond connects a chip to a leadframe or substrate using wires.
Advanced system-in-package modules combine semiconductors and other components with different functions in one package. They are mostly included in Advanced Products, depending on the interconnect technology. Test services screen for defects and grade performance at different stages, including at wafer and package level. Amkor also develops test software and hardware with or for customers before mass production.
Reportable segment revenue was $6.7 billion in FY2025; third-quarter 2026 revenue was $1.99 billion.
Amkor’s customers have ongoing needs for manufacturing and testing, but their commitments are generally short term and Amkor identifies an absence of backlog. Prices can change quickly because of the absence of long-term agreements on price. Amkor says it typically passes supplier cost increases on to customers. It also reports customer advance-payment arrangements to support future advanced-packaging capacity.
| Product or service | Revenue, FY2025 | Share | Change on the year |
|---|---|---|---|
| Advanced Products | $5.6 billion | 82.8% | 7.36% |
| Mainstream Products | $1.2 billion | 17.2% | 0.80% |
Customers and how it sells
Amkor serves integrated device manufacturers, fabless chip designers, original equipment manufacturers and contract foundries. Its direct support teams typically include a sales manager, technical program managers and customer support representatives. It also supports its largest multinational customers from multiple office locations.
Direct sales to Apple represented 29.8% of net sales in 2025, and Qualcomm represented 11.1%. The ten largest customers accounted for 72% of net sales that year. By end market, communications represented 46% of 2025 net sales, computing 20%, and automotive, industrial and other 19%. Those end-market figures are approximations based on a sample of Amkor’s largest customers.
The United States represented 65.6% of FY2025 revenue. Europe, the Middle East and Africa represented 12.7%; Asia Pacific excluding Japan, 10.9%; and Japan, 10.8%. Amkor has manufacturing facilities in Asia and Europe, is scaling production in Vietnam and is building a facility in Arizona. Its sales offices are located throughout Asia, Europe and the United States.
As of December 31, 2025, Amkor employed 30,800 people. The company’s workforce spans several countries, with most employees residing in the Asia-Pacific region.
| Region | Revenue, FY2025 | Share | Change on the year |
|---|---|---|---|
| United States | $4.4 billion | 65.6% | 10.4% |
| Europe, Middle East and Africa | $852.8 million | 12.7% | 4.27% |
| Asia Pacific (excluding Japan) | $733.5 million | 10.9% | 2.39% |
| Japan | $724.6 million | 10.8% | −9.50% |
Suppliers and costs
Amkor’s principal packaging materials include laminate substrates, integrated circuits, capacitors, leadframes and bonding wires. It sources most materials, including critical leadframes, substrates and bonding wires, from a limited group of suppliers. The company negotiates worldwide pricing agreements with major suppliers and coordinates equipment orders with its main equipment suppliers. It generally does not take ownership of customer-consigned wafers.
Amkor purchases materials based on commitments to customer forecasts; customers are generally responsible for unused materials purchased under those commitments. Packaging uses equipment such as wire bonders and die bonders, while testing uses testers, handlers and probers. Wafer-bumping and test equipment can have longer delivery lead times than other packaging equipment.
Cost of sales consists principally of materials, labor, depreciation and manufacturing overhead. A substantial portion of factory costs is fixed, so revenue and capacity utilization affect gross margin. Advanced packaging tends to have higher material costs than Amkor’s other products. In 2025, gross margin decreased to 14.0% from 14.8% in 2024, primarily because of increased overhead and employee compensation costs. The Vietnam production ramp also constrained the 2025 margin.
Amkor’s capital expenditures totaled $904.6 million in 2025, primarily for advanced packaging and test equipment and the Arizona facility.
- Revenue$6.7B
- Cost of revenue−$5.8B
- Research and development−$166.7M
- Selling, general and administrative−$304.5M
- Operating income$467.4M
Competitive position
Amkor competes in outsourced semiconductor packaging and test with established providers primarily located in Asia, including ASE Technology, JCET Group and Powertech Technology. It also competes with contract foundries and electronics manufacturers offering certain advanced packaging services. Integrated device manufacturers can compare outsourcing with their own in-house capabilities.
Competition depends on technology, location, manufacturing scale and expertise, customer co-development, investment, quality, price and cycle time. Amkor offers package design, packaging and testing across several technologies and device types. It works with customers and suppliers to develop process technologies and has facilities in multiple countries.
Our reading: Customer co-development and integration of design, packaging and testing provide a potential relationship advantage, although customers can use Amkor for only some steps and also have other providers. Our reading: Manufacturing scale and a geographically dispersed footprint support Amkor’s ability to serve customers across regions, but require continued investment in facilities and equipment. Our reading: Advanced packaging expertise and intellectual property support its competitive position, but the company is not materially dependent on any one patent or technology, and patents can be challenged or circumvented.
Amkor says geopolitical trade tensions have increased competition from Chinese firms supporting a China-for-China supply chain. It also identifies historical downward pressure on packaging and test prices.
| Competitor | Where they compete | Threat (our reading) |
|---|---|---|
| ASE Technology | Outsourced semiconductor packaging and test | High |
| JCET Group | Outsourced semiconductor packaging and test | High |
| Powertech Technology | Outsourced semiconductor packaging and test | High |
Growth opportunities
Amkor is investing in advanced packaging for computing, artificial intelligence, automotive electronics, mobile devices and other applications. Its development work includes packages that combine different chips, wafer- and panel-level packaging, copper hybrid bonding and co-packaged optics. The company expects its co-packaged optics development to support higher bandwidth between processors, AI accelerators, memory and other components.
In the third quarter of 2026, Amkor’s flagship high-density fan-out CPU program ramped, and another such CPU program for a hyperscaler began ramping. The company expected two new 2.5D programs in networking and data centers to come online in the fourth quarter. It also reported third-quarter growth in automotive and industrial revenue from driver-assistance and industrial products across multiple customers.
Amkor is expanding capacity in Arizona, Korea and Vietnam. Its two planned Arizona campus phases represent an estimated investment of $12 billion. The company expects the first phase to be completed by the end of 2027 and the second to break ground in late 2027. In Korea, new Gwangju buildings are intended to support the ramp of high-density fan-out for data-center customers, including NVIDIA. Moving system-in-package production from Korea to Vietnam is opening space in Korea for advanced packaging.
Amkor estimated 2026 capital spending at around $2.5 billion and expected spending to increase in 2027. It expects customer advance payments to provide funding support for those investments.
- $6.1BFY2021
- $7.1BFY2022
- $6.5BFY2023
- $6.3BFY2024
- $6.7BFY2025
Structural risks
- Industry cycles and customer commitments: Semiconductor demand and economic conditions can fluctuate. Amkor identifies an absence of backlog and short-term customer commitments, with orders potentially delayed, rescheduled or canceled.
- Customer and market concentration: The company depends on key customers and has exposure to concentrated end markets, including mobile communications and automotive. Component shortages affected its communications and consumer applications in the third quarter of 2026.
- Capacity and capital spending: Amkor invests in equipment and facilities in advance of revenue, generally without firm customer commitments. Its high fixed costs make achieving sufficient factory utilization important to gross margin.
- Supply and production: Changes in the cost, quality, availability or delivery of materials and equipment can affect results. Advanced technology ramps can bring production delays, lower yields and supply constraints.
- International operations and trade: Amkor depends on international factories and faces risks from trade restrictions, export controls, tariffs, regional conflict and other disruptions.
- Competition and pricing: Established packaging providers, foundries, contract manufacturers and customers’ internal operations compete with Amkor. The company also identifies historical downward pressure on service prices.
Bottom line
Our reading
Our reading: Amkor is a capital-intensive manufacturing services business whose customer relationships and advanced packaging capabilities support its role in the chip supply chain. Its exposure combines growing demand for complex computing packages with concentrated customers, cyclical end markets and fixed factory costs. Advance payments can help fund expansion, but the returns on new capacity depend on demand and utilization.