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Intel Outsourcing Sparks Amkor Tech Surge
3 Dec
Summary
- Amkor Technology's stock surged on Intel's first-ever outsourced advanced packaging.
- Intel chose Amkor's South Korean facility for high-demand AI chip packaging.
- Amkor recently beat Q3 earnings expectations and received a 'Buy' rating.
Amkor Technology's shares surged by 7.4% in afternoon trading, driven by reports that Intel has initiated outsourcing its high-end chip packaging production to Amkor for the first time. This strategic move signifies Intel's initial step in outsourcing its sophisticated EMIB process, a critical component in advanced chip manufacturing.
The outsourcing deal, reportedly established at Amkor's facility in South Korea, is a direct response to the escalating demand for advanced packaging solutions, particularly those crucial for the burgeoning artificial intelligence sector. This news adds to Amkor's recent string of positive developments, including exceeding third-quarter revenue and profit forecasts.
This collaboration positions Amkor Technology as a vital supplier in the AI supply chain. The company's stock has seen substantial growth, increasing by 55.5% year-to-date, and has reached a new 52-week high. The market's positive reaction underscores the significance of this partnership in the competitive semiconductor landscape.
