Amkor Rated Buy as $7B Arizona Plant Preps Nvidia Packaging

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First Principles rates Amkor as Buy on its 34.6% semiconductor customer base and Nvidia partnership; its $7B Arizona facility, funded by the US Chips Act, will begin Nvidia chip packaging in 2027–28. Surging H200 chip demand and China's projected 2M-unit 2026 Nvidia order could boost Amkor's volumes.

1. Amkor Schedules 2026 Investor Day

Amkor Technology, Inc. has confirmed it will host its 2026 Investor Day on Thursday, May 21, 2026, in New York City. The event will feature presentations by President and CEO Kevin Engel, CFO Megan Faust and other senior executives. Attendees will receive a detailed update on Amkor’s multi‐year strategy, capital allocation plans and near‐term financial outlook. The live webcast and subsequent replay will be made available on the company’s Investor Relations website, enhancing transparency for institutional investors and analysts who cannot attend in person.

2. Strategic Partnership with Nvidia Accelerates Advanced Packaging Adoption

Amkor’s collaboration with Nvidia is set to underpin significant volume growth in advanced semiconductor packaging beginning in 2027. The partnership focuses on packaging solutions for Nvidia’s next‐generation high-performance AI chips, including the H200 series. Engineering work at Amkor’s Arizona facility is on schedule, positioning the company to support an estimated two million H200 units earmarked for deployment in data centers by corporate customers in 2028.

3. $7 Billion Arizona Facility Bolstered by US Chips Act Funding

Amkor is investing approximately $7 billion to expand its Arizona facility, with a portion of capital expenditure offset by US Chips Act grants. The plant will add wafer‐level processing and system-in-package lines, increasing capacity by up to 50% by the end of fiscal 2028. Management projects that these enhancements will lift annual packaging volumes by more than 30% and improve operating margins by 100 basis points, driven by economies of scale and higher mix of premium services.

Sources

BS