Amkor is preparing to greatly expand its Arizona-based operations, and the company will boost its spending not by a few percent, but by several multiples. The company is planning to triple its capital expenditures next year, with a dramatic increase from roughly $900 million in 2025 to as much as $3 billion in 2026, betting on massive demand from Intel and TSMC packaging technologies. This includes working with Intel and TSMC to enable their most advanced technologies like EMIB and CoWoS, all of which come in various form factors. We previously reported that Intel partnered with its long-time OSAT partner Amkor to take additional EMIB capacity that Intel's customers are interested in, in Incheon, South Korea.

However, as Amkor expands its facilities in Arizona, Intel will also collaborate with Amkor to deliver advanced EMIB packaging types on United States soil. While TSMC has been a primary choice for many high-density assemblies, growing interest in Intel's EMIB and Foveros options has led partners like MediaTek, Google, Qualcomm, and Tesla to consider alternatives. Interestingly, Amkor will also offload some of the CoWoS packaging work from TSMC by creating CoWoS packages on U.S. soil, instead of sending these chips back to TSMC's Taiwan fabs to finish production. Both CoWoS and EMIB/Foveros offer a list of benefits, making them highly sought-after packaging technologies for companies seeking to extract maximum performance from their chips. Amkor plans to be at the center of that supply chain and help Intel and TSMC handle more customers.