Amkor Technology partners with AMD on chip packaging

Investing.com -- Amkor Technology said Thursday it is working with Advanced Micro Devices on packaging the chipmaker's products.

The announcement comes after Amkor secured 67 additional acres in Arizona this week, adjacent to a 104-acre site where the company is developing a new campus set to begin production in 2028.

Modern data center chips from companies like AMD and Nvidia consist of multiple chips packaged together, with these packaging steps becoming a key bottleneck in chip production.

Amkor, which previously focused on less-complex chip packaging, is expanding into more advanced versions of the technology. This includes a partnership with Taiwan Semiconductor Manufacturing, where Amkor will use some of TSMC's technology at an Arizona facility to offer joint customers access to some of TSMC's older technologies.

While Amkor has previously announced planned work with Nvidia and Apple at the Arizona facility, CEO Kevin Engel told Reuters the company is also working with AMD.

"We're moving up the value chain," Engel said. "We're more integrated with the customers, and that's really changing the dynamic to where we can extract more value out of our services."

At an investor event Thursday, Amkor said it expects revenue between $8.5 billion and $9.5 billion by 2028 and $11 billion in sales by 2030.

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