Amkor Technology Unveils Aggressive $3 Billion Investment Plan to Capture AI Market Growth
Semiconductor packaging giant Amkor Technology has announced an ambitious $2.5-3 billion capital investment plan for 2026, positioning itself to capitalize on surging demand for artificial intelligence applications and advanced computing solutions.
The Arizona-based company, under new CEO Kevin Engel's leadership, delivered strong fourth-quarter results with revenue of $1.89 billion and earnings per share of $0.69, exceeding guidance expectations. For the full year 2025, revenue grew 6% to $6.7 billion, driven by record performance in computing and advanced packaging segments.
Strategic Investment in Advanced Manufacturing
The substantial capital allocation reflects Amkor's commitment to technological leadership in the rapidly evolving semiconductor landscape. Approximately 65-70% of the investment will fund facility expansion, including the first phase of the company's Arizona campus construction. The remaining 30-35% targets advanced packaging equipment, particularly High-Density Fan-Out (HDFO) and test capabilities.
"We are well-positioned to enable the industry's next wave of innovation," Engel stated during the earnings call. The company expects computing-related revenue to surge over 20% in 2026, fueled by two new HDFO programs supporting AI data centers scheduled for high-volume production in the second half of the year.
Market-Driven Growth Strategy
Amkor's expansion strategy aligns with three core pillars: elevating technology leadership, expanding geographic footprint, and enhancing strategic partnerships. The company's Vietnam facility achieved breakeven in Q4 2025, while Korea operations are being optimized to accommodate HDFO and test capacity growth.
The investment plan includes substantial customer commitments and prepayment agreements, providing revenue visibility and risk mitigation. Government incentives of up to $2.85 billion are expected to support the Arizona facility development, though these benefits will materialize after initial capital deployment.
Financial Positioning and Outlook
Chief Financial Officer Megan Faust highlighted the company's strong liquidity position, with $2 billion in cash and short-term investments and total liquidity of $3 billion. The debt-to-EBITDA ratio stands at a conservative 1.2 times, providing flexibility for the ambitious expansion.
For Q1 2026, Amkor projects revenue between $1.6-1.7 billion, representing 25% year-over-year growth. The company anticipates seasonal gross margin compression but expects improvement throughout the year as new programs ramp up.
Competitive Positioning in AI Revolution
The semiconductor packaging industry has become increasingly critical as AI applications demand more sophisticated chip architectures. Amkor's advanced packaging platforms, including HDFO, flip chip, and test capabilities, are essential for next-generation AI and high-performance computing applications.
The company's geographic diversification strategy, spanning Asia, Europe, and soon the United States, provides customers with supply chain flexibility amid ongoing geopolitical tensions. This positioning becomes particularly valuable as export controls and trade policies continue evolving.
Engel, who brings over two decades of experience with Amkor, emphasized the company's ability to adapt with agility through market transitions. His leadership approach focuses on transparency, disciplined execution, and strong customer relationships.
The aggressive investment timeline reflects confidence in sustained AI market growth and Amkor's technological capabilities. As artificial intelligence applications proliferate across industries, the company's advanced packaging solutions become increasingly vital for enabling next-generation computing performance.