Amkor Technology (AMKR)

OSAT leader (outsourced assembly & test) — back-end packaging for the chip industry

AI exposure 22% — derived from reported segment revenue, not asserted.

Where it sits

Silicon Layer → Foundry Services · figures rebased to Q2 2026, reported 2026-07-27

Communications (smartphone packaging) leads 3 businesses in this sub-tier that together are 100% of revenue, so Foundry Services is effectively the whole company rather than one leg of it.

Reported segments

• Advanced packaging & test (by end-market) — 100% of revenue

Amkor ($1.90B Q2 2026, +26% YoY) — #2 OSAT (outsourced semiconductor assembly & test). By end-market: Communications ~42% (mobile) + Computing ~23% (AI/data-center advanced packaging 2.5D = AI growth driver) + Auto/Industrial/Consumer ~35%. Primary B1 Foundry Services (packaging/test = back-end foundry). Partners TSMC; packages chips for AAPL/NVDA/etc. NOTE: classified under Foundry Services as back-end manufacturing.

How the 22% is built

• Advanced packaging & test (by end-market) — 100% of revenue × 22% AI-driven (disclosed). Mgmt Q2 2026: Computing = 22% of net sales (record, +20% QoQ, driven by AI data-center 2.5D/HDFO programs). The whole Computing line is credited as AI-relevant, which offsets not crediting AI content elsewhere. Q3 guidance (Computing +~30% QoQ vs group ~+5%) implies ~27% next quarter, so this is a rising floor.

Investment read

Moat. Scale and advanced-packaging capability as the #2 OSAT, now with a geographic asset rivals cannot replicate from Taiwan — the first US high-volume OSAT in Arizona (~$400M of CHIPS grants plus ~$2B of investment tax credits), sited next to TSMC's fabs under a formal packaging partnership, with Apple, NVIDIA and AMD program commitments. The structural ceiling is that TSMC keeps the leading-edge CoWoS/SoIC work in-house.

Bottleneck / pricing power. Real margin leverage as packaging tightens — Q2 2026 gross margin 16.8% (+250bps QoQ, above guide), guided 18.5-19.5% for Q3, operating margin 10.5% versus 6.1% a year ago. But OSAT economics stay capacity-driven and customer-directed: one Communications SiP migration from Korea to Vietnam was enough to guide a quarter ~$90M below consensus.

Role in the AI stack. The back-end packaging/test layer — increasingly bottleneck-adjacent.

Connected companies

• Taiwan Semiconductor (TSM) — AMKR is supplied by: foundry wafers flow to Amkor for assembly/packaging
• Teradyne (TER) — AMKR is supplied by: automated test equipment used in Amkor test lines
• Keysight Technologies (KEYS) — AMKR is supplied by: test & measurement instruments for packaging validation
• Apple (AAPL) — AMKR supplies: advanced packaging/test — Apple ~29.8% of revenue
• Qualcomm (QCOM) — AMKR supplies: packaging/test for Snapdragon — Qualcomm ~11.1% of revenue
• NVIDIA (NVDA) — AMKR supplies: advanced packaging (2.5D/CoWoS-class) for AI accelerators
• Broadcom (AVGO) — AMKR supplies: advanced packaging for custom AI ASICs
• Advanced Micro Devices (AMD) — AMKR supplies: chiplet/advanced packaging for Instinct + EPYC
• Onto Innovation (ONTO) — AMKR is supplied by: inspection/metrology + lithography for advanced packaging (OSAT)
• Freeport-McMoRan (FCX) — AMKR is supplied by: Copper (via bond-wire and lead-frame fabricators) underlies Amkor's copper wire bonding, pillar bumping and lead frames; indirect, unnamed relationship
• Southern Copper (SCCO) — AMKR is supplied by: Refined copper underlies Amkor's copper packaging materials via fabricators; indirect, unnamed relationship

Others in Foundry Services

• Taiwan Semiconductor (TSM)
• GlobalFoundries (GFS)
• Tower Semiconductor (TSEM)

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