May 22, 2026 /SemiMedia/ — Amkor Technology said it is working with AMD to provide chip packaging services, further expanding its position in the growing advanced packaging market tied to AI and high-performance computing semiconductors.

Earlier this week, Amkor announced it had acquired an additional 67 acres of land in Arizona adjacent to its existing 104-acre site. The company plans to build a new manufacturing facility at the location, with production expected to begin in 2028.

Advanced packaging has become one of the semiconductor industry’s most critical bottlenecks as AI chip demand accelerates globally. Technologies such as chiplet integration and high-bandwidth packaging are increasingly important for improving performance, bandwidth and power efficiency in AI accelerators and data center processors.

Historically focused on lower-complexity packaging services, Amkor has been expanding aggressively into higher-end advanced packaging technologies. The company is already collaborating with TSMC in Arizona, where Amkor plans to use certain TSMC technologies to support packaging services for shared customers.

Amkor previously disclosed that its Arizona operations would provide services for Nvidia and Apple. The addition of AMD further highlights the growing importance of building a domestic advanced packaging ecosystem in the United States.

Chief Executive Officer Kevin Engel said the company is moving higher up the semiconductor value chain through deeper integration with customers and more advanced service offerings.

Industry analysts said OSAT companies are becoming increasingly important in the AI semiconductor supply chain as governments and chipmakers push to localize advanced manufacturing and packaging capabilities in the United States.