US Advanced Packaging Ecosystem Emerges as Critical Reshoring Node with TSMC-Amkor Alliance

US Advanced Packaging Ecosystem Emerges as Critical Reshoring Node with TSMC-Amkor Alliance

The domestic advanced packaging landscape has transformed from a potential bottleneck into a fully capitalized, high-demand reshoring node.¹ Amkor Technology (AMKR) has rapidly scaled its commitments, expanding its planned investment in its Peoria, Arizona advanced packaging facility from an initial $2 billion to $7 billion after acquiring an additional 67 acres for expansion. A year before its scheduled opening, the West Valley facility is already fully booked with commitments from the world's leading semiconductor and AI companies, including Apple, TSMC, AMD, and Nvidia.

A major catalyst occurred on July 23, 2026, when Nvidia and Amkor announced a landmark $1.5 billion multi-year strategic agreement to expand advanced packaging and test capacity in the U.S. Under this agreement, Nvidia is providing a substantial prepayment to secure and lock in assembly capacity at the Arizona facility.

"Amkor Technology said on Thursday it had entered a multi-year agreement with ​Nvidia worth $1.5 billion to expand advanced semiconductor ‌packaging and test capacity in the U.S., as the chip industry races to build out ​AI infrastructure... Under ​the agreement, Nvidia will make a prepayment to ​support the expansion of Amkor's U.S. advanced packaging operations, including capacity in Arizona." — Nvidia, Amkor strike $1.5 billion chip packaging deal | Reuters

This deal follows a June 2026 10-year partnership between Amkor and TSMC to integrate front-end wafer fabrication at TSMC’s Phoenix fabs with Amkor’s Peoria packaging line. Amkor is also working closely with Advanced Micro Devices (AMD) to package its chips domestically.

Financially, Amkor is already reaping the rewards of this demand. In its second quarter ending June 30, 2026, Amkor reported revenue of $1.90 billion (+25.6% YoY) and net income of $173.8 million (+218.2% YoY), beating EPS estimates at $0.70 vs. the $0.47 expected.