Amkor Technology plans to substantially expand its packaging capacity in Arizona, a move fueled by demand from Intel and TSMC. The company intends to triple its capital expenditures in the coming year. This involves a dramatic increase from approximately $900 million in 2025 to potentially $3 billion in 2026. The expansion will support advanced technologies like EMIB and CoWoS.

This investment reflects a strategic shift towards U.S.-based chip manufacturing and packaging. Amkor's Arizona facilities will play a key role in supporting Intel's EMIB packaging and potentially offloading CoWoS packaging from TSMC. This move could help to secure supply chains, particularly for companies seeking the performance benefits of advanced packaging.

Amkor's Arizona expansion is particularly relevant in the context of growing interest in Intel's EMIB and Foveros technologies. Companies like MediaTek, Google, Qualcomm, and Tesla are considering these alternatives. Ultimately, Amkor aims to be a central player in the supply chain, facilitating both Intel and TSMC's advanced packaging needs. These technologies are crucial for performance.