Amkor Anticipates Robust Growth in 2026 with Accelerated AI and HPC Packaging Expansion

Amkor Technology Targets Growth in Advanced Packaging for 2026

Amkor Technology (AMKR) is preparing for a significant expansion in advanced packaging in 2026, fueled by increasing demand from artificial intelligence (AI) and high-performance computing (HPC) applications. Company leadership describes this demand as a fundamental shift, anticipating several production increases throughout the year.

Although the company faces short-term margin challenges due to seasonal factors and elevated depreciation in the first half, Amkor’s strategic plan suggests improved volumes, more efficient cost absorption, and a transition toward higher-value platforms in the latter half of 2026.

AI and HPC Demand Drives Amkor’s Packaging Expansion

Amkor is capitalizing on the sustained growth in AI and HPC as key drivers for its advanced packaging business. In 2026, the company expects computing workloads to rise by over 20% compared to the previous year, with technologies like 2.5D integration and high-density fan-out projected to nearly triple in adoption.

This surge is not merely an increase in units; it introduces more intricate packaging requirements and advanced processing steps, which can enhance revenue quality as projects move from testing to full-scale production.

Shift Toward Advanced Packaging Evident in Financial Results

Recent financial reports highlight Amkor’s transition toward advanced products. In the fourth quarter of 2025, sales of advanced offerings reached $1.58 billion, while mainstream products contributed $308 million, demonstrating a clear tilt toward higher-value solutions.

Amkor’s advanced portfolio features High-Density Fan-Out (HDFO), 2.5D integration, advanced flip chip, and wafer-level technologies. As these products become a larger portion of revenue, Amkor stands to benefit from improved pricing, product mix, and operational leverage associated with specialized manufacturing capacity.

2026 Timeline for AI Packaging Ramps

The company anticipates a phased rollout of AI-related packaging programs in 2026. Devices for PCs are expected to ramp up earlier in the year, supporting growth ahead of major server launches. Two CPU initiatives are nearing final qualification and are scheduled for high-volume production in the second half of 2026. Amkor has noted that one of these programs may not reach full production by year-end, emphasizing the need for efficient qualification and supply chain readiness.

Global Expansion and Regional Strategy

Amkor is expanding its manufacturing footprint across multiple regions to meet customer needs and adapt to supply chain localization. In Korea, cleanroom capacity is set to grow by about 20% by the end of 2026, with a new facility coming online as the year concludes.

Vietnam is also a key part of Amkor’s strategy. The Vietnam plant opened in 2024, continued to scale in 2025, and achieved breakeven in the fourth quarter of 2025. It is expected to remain at least breakeven in the first quarter of 2026, allowing Korea to focus on higher-value HDFO and testing operations.

In the United States, Amkor began building a new advanced packaging and testing facility in Arizona during the second half of 2025. The initial phase covers approximately 1.8 million square feet, with manufacturing slated to start in the first half of 2028. Construction is supported by incentives totaling up to $2.85 billion and direct funding of $407 million, along with partnerships with TSMC and customer agreements.

Margin Outlook for 2026

Profit margins are expected to fluctuate in early 2026. The first quarter is projected to be the seasonal low for both revenue and earnings, with sales estimated between $1.60 and $1.70 billion and gross margins ranging from 12.5% to 13.5%. Increased equipment spending will raise depreciation costs in the first half.

Comparisons are complicated by a one-time benefit in late 2025, when asset sales added roughly $30 million to gross profit, boosting margins to 16.7%. This benefit will not repeat, potentially impacting sequential results even if core operations remain stable.

The Zacks Consensus Estimate for first-quarter 2026 earnings stands at 23 cents per share, unchanged over the past month. AMKR reported earnings of 9 cents per share in the same quarter last year.

Amkor Technology, Inc. Price and Consensus

The second half of 2026 is expected to see improvements as AI and HPC programs reach full production and fixed costs are absorbed more efficiently. Management aims for approximately 30% incremental flow-through, supported by operational improvements, optimization in Japan, better pricing, and continued transition to advanced packaging.

Zacks Ratings and Notable Stocks

Amkor currently holds a Zacks Rank #3 (Hold).

Within the broader Computer and Technology sector, Lam Research (LRCX), Qnity Electronics (Q), and Western Digital (WDC) are recommended as strong buys, each with a Zacks Rank #1.

• Lam Research: Projected long-term earnings growth of 17.74%, share price up 31.5%
• Qnity Electronics: Projected long-term earnings growth of 28.05%, share price up 42.3%
• Western Digital: Projected long-term earnings growth of 51.11%, share price up 58.5%

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