Amkor Technology (AMKR) Goldman Sachs Communacopia + Technology Conference 2026 summary

Strategic expansion and partnerships

• Announced Arizona phase II expansion, increasing investment from $7B to $12B, doubling clean room space to 60,000 sq m for phase II, with total campus space reaching 93,000 sq m and future phase III possible.

• Expansion driven by strong demand for advanced packaging, with customers seeking long-term supply security and deeper strategic partnerships, including multi-year agreements with NVIDIA and TSMC.

• NVIDIA to make a $1.5B prepayment supporting U.S. facility expansion, serving as an anchor customer and enabling technology transfer from Korea to Arizona.

• Proximity to TSMC and other foundries in Arizona enhances logistics, feedback loops, and supply chain efficiency, while maintaining flexibility to support multiple foundries.

• Geographic diversification includes shifting SiP production from Korea to Vietnam, expanding advanced packaging in Taiwan and Portugal, and supporting regionalized customer needs in Europe.

Technology leadership and market trends

• Focus on technology leadership in advanced packaging, including 2.5D, high-density fan-out, bridge technology, and co-packaged optics, with AI and compute as primary growth drivers.

• Advanced packaging complexity and customer engagement are at unprecedented levels, with long-term agreements and visibility into the technology roadmap.

• Computing is the largest growth driver, with 30% year-over-year growth expected to continue through 2027, supported by diverse packaging technologies and high utilization rates.

• Automotive is the second-largest growth market, driven by increasing packaging complexity for ADAS, infotainment, and electrification, with both legacy and new technologies contributing.

• Communications (smartphones) remains a strategic market, with growth led by iOS, though a muted second half is expected due to memory constraints and production shifts.

Financial outlook and operational priorities

• Phase I Arizona facility expected to generate ~$1B in revenue at >30% margin; phase II revenue expected to scale pro rata.

• 2030 targets: revenue over $11B, gross margin 22%, EPS $5, driven by AI/computing growth and Arizona ramping to full capacity.

• Arizona phase II construction to break ground by end of next year, with production starting in 2030; full capacity and accretive margins expected by 2030.

• CapEx for Arizona follows a bell curve: 10-15% of $12B in 2026/2027, 20-25% in 2028/2029 (peak), then tapering off.

• Buybacks to offset stock-based compensation; leverage to be maintained at or below 1.5x as business expands.