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Amkor Technology partners with AMD on chip packaging, targets $9.5B revenue by 2028
The semiconductor packaging giant is betting big on Arizona, backed by $407 million in CHIPS Act funding, but Wall Street wanted more.
Amkor Technology just locked in a collaboration with AMD on advanced chip packaging, announced by CEO Kevin Engel on May 21. The deal is part of Amkor’s broader push to build out a massive manufacturing campus in Arizona, with production slated to begin in early 2028.
The market wasn’t exactly throwing confetti. Amkor shares dropped 2.6% after the company revealed revenue guidance of $8.5B to $9.5B for 2028, a range that came in slightly below what Wall Street had been expecting. The company also projected $11B in revenue by 2030.
The Arizona bet
Amkor recently acquired an additional 67 acres adjacent to its existing 104-acre campus site, bringing the total to 171 acres. Groundbreaking for the advanced packaging campus took place on October 6, 2025. The first manufacturing facility is on track for completion by mid-2027, with volume production expected to follow in early 2028.
The project has meaningful financial backing from Washington. Amkor has been allocated up to $407 million through the CHIPS Act, the federal program designed to bring semiconductor manufacturing back to US soil.
Why AMD, and why packaging matters
Advanced packaging has become increasingly critical as the industry pushes into AI and high-performance computing. Techniques like 2.5D and 3D packaging allow chipmakers to stack or connect multiple dies together, dramatically improving performance and energy efficiency.
Amkor already counts Nvidia and Apple among its high-profile clients. Adding AMD as a named packaging partner further solidifies its position as a go-to provider for the companies driving the AI hardware buildout. The Arizona campus is specifically targeting high-volume markets for artificial intelligence and high-performance computing applications.
What this means for investors
The $8.5B to $9.5B revenue range for 2028 represents meaningful growth from current levels, and the $11B target for 2030 suggests management sees a sustained demand curve. The CHIPS Act funding de-risks the capital expenditure to some degree. The mid-2027 facility completion date means investors will get clarity on execution well before the 2028 production targets come into play.