Amkor Technology (AMKR), a $13 billion leader in the Outsourced Semiconductor Assembly and Test (OSAT) industry, reported a significant earnings surprise last week, raising earnings per share (EPS) estimates for 2023 by 18% to $2.62, reflecting an annual profit growth of 75%. The company’s revenue expectations for 2024 also increased by 16% to $2.73, despite caution from analysts regarding the semiconductor packaging market dynamics involving key partners Taiwan Semiconductor Manufacturing Company (TSMC) and NVIDIA.
Two weeks ago, NVIDIA announced a $1.5 billion investment to secure advanced packaging and testing capacity at Amkor’s new facility in Peoria, Arizona. This strategic move aims to address bottlenecks in AI hardware production and ensure NVIDIA priority access to critical semiconductor packaging services as it ramp-ups production for next-generation data center and computing platforms. Amkor is investing heavily in segments such as advanced packaging and testing services, which are becoming increasingly essential for high-performance computing and AI applications.
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