Amkor Technology stock rose 5% after a 10-year TSMC partnership strengthened its role in US advanced semiconductor packaging.

Key Highlights

  • AMKR shares rose 5.24% to $89.92 during Tuesday trading after closing at $85.44.
  • The stock traded between $86.18 and $96.66, with volume reaching about 8.68 million shares.
  • TSMC will buy advanced packaging and testing services from Amkor’s Peoria, Arizona facility.
  • First-quarter net sales reached a record $1.68 billion, up 27% year over year.

Amkor Technology, Inc. (NASDAQ:AMKR) shares climbed during Tuesday trading after the semiconductor packaging and testing company announced a long-term partnership with Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM).

The stock traded at $89.92 in the latest regular-session update, up $4.48, or 5.24%, from the previous close of $85.44. Shares opened at $86.21 and moved between $86.18 and $96.66 on volume of about 8.68 million shares.

The agreement gives TSMC access to advanced packaging and testing services at Amkor’s planned Peoria, Arizona campus. The 10-year partnership is aimed at supporting high-performance computing and artificial-intelligence chip demand in the United States.

The deal links TSMC’s Arizona wafer-fabrication operations with Amkor’s back-end packaging capabilities. That connection is designed to shorten supply chains and support customers seeking domestic semiconductor manufacturing capacity.

Advanced packaging has become increasingly important as AI processors require tighter integration of logic, memory and interconnect technologies. Amkor provides outsourced semiconductor assembly and test services for chipmakers, foundries and electronics companies.

The Arizona campus is expected to support advanced packaging technologies used in high-performance chips. The facility is part of Amkor’s broader US expansion plan as customers seek more resilient supply chains for AI and other critical computing applications.

The announcement followed a strong first-quarter report. Amkor posted record first-quarter net sales of $1.68 billion, up 27% from the prior-year period.

Gross profit was $239 million, operating income was $100 million and net income was $83 million. Diluted earnings per share were $0.33, while EBITDA reached $285 million.

The company has also outlined longer-term revenue targets, including a plan to reach more than $11 billion in annual revenue by 2030. Those targets depend partly on advanced packaging demand and the ramp of new customer programmes.

Amkor’s June 16 trading price implied a market capitalisation of about $22.29 billion. The stock has traded between $19.79 and $96.66 over the past 52 weeks.