Amkor Expands Arizona Footprint, Partners with AMD for Advanced Packaging

Amkor Technology announced on the 21st that it is collaborating with Advanced Micro Devices (AMD) on the packaging of its chips. According to Reuters, Amkor stated earlier this week that it has acquired an additional 27 hectares of land in Arizona, adjacent to an existing 42-hectare plot. The company is developing a new facility there, with production scheduled to begin in 2028. Modern data center chips, such as those from AMD and Nvidia, consist of multiple chips packaged together, and this packaging step has become a critical bottleneck in chip production. While Amkor previously focused on less complex packaging, it is now striving to move toward more advanced technology, including through a partnership with Taiwan's TSMC. In this collaboration, Amkor will use some of TSMC's technology at its Arizona facility to provide older TSMC technologies to shared customers. Although Amkor had previously disclosed plans to work with Nvidia and Apple at its Arizona plant, CEO Kevin Engel told Reuters that the company is also working with AMD. Engel noted, "We are moving up the value chain. We are more integrated with our customers, which really changes the dynamic and allows us to capture more value from our services."