TEMPE, Arizona, May 3, 2026, 08:59 (MST)
- Amkor has priced $1 billion in convertible senior notes at 0.00% due 2031, with settlement slated for May 5.
- Amkor’s fresh capital comes as the company eyes $2.5 billion to $3.0 billion in capex for 2026, with a big chunk earmarked for advanced packaging—and its Arizona site is a key part of that spend.
- Amkor shares ended at $71.09, up 1.9%. U.S. markets are shut for the weekend.
Amkor Technology has lined up $1 billion in zero-coupon convertible senior notes maturing in 2031, securing new capital as it steps up investment in advanced packaging for AI, smartphones, and data-center chips. According to a filing, proceeds are earmarked for capped-call transactions and general corporate needs—capital spending among them.
This deal stands out right now, as advanced packaging—linking, stacking, and testing chips post-production—has turned into a critical pinch point for high-performance computing. Amkor is racing to expand its footprint, with customers demanding more U.S.-focused supply chains, even as competitors pour capital into the same constrained segment.
Amkor shares finished at $71.09, a gain of 1.9%, having earlier peaked at $71.65, market data showed. At that level, the company’s market cap stood near $17.7 billion.
The notes won’t pay interest or accrete principal, and they come due July 15, 2031, unless Amkor repurchases, redeems, or they get converted before then. The initial conversion price lands at roughly $106.37 per share—representing a 52.5% premium over Amkor’s April 30 close at $69.75. Amkor is also letting the initial buyers pick up as much as $150 million more in notes if they choose.
Amkor expects net proceeds to come in around $981.7 million—or roughly $1.129 billion if the underwriters take the full option. Of that, $49 million is set aside for capped calls, a type of options hedge to offset dilution if notes convert. The rest goes toward general corporate needs, including capex. The capped-call kicks in at $139.50 per share.
The new financing comes after a solid first quarter. Amkor’s net sales hit $1.685 billion, climbing from $1.322 billion in the same period last year. Diluted earnings landed at 33 cents per share. CEO Kevin Engel described it as a “strong start to 2026,” noting widespread demand and headway in advanced packaging efforts. Amkor Technology
The company is projecting second-quarter sales between $1.75 billion and $1.85 billion, and expects gross margins in the 14.5% to 15.5% range. For all of 2026, Amkor is planning capital expenditures of around $2.5 billion to $3.0 billion—a significant jump for a business that has to spend heavily on equipment and new plants well before any revenue shows up.
First-quarter capital expenditures hit $224.6 million, up sharply from $79.9 million a year ago, according to a quarterly filing. Amkor pointed to advanced packaging, test equipment, and the Arizona facility as key drivers. The company attributed the jump in 2026 spending over last year mainly to the Arizona site’s construction.
Needham’s Charles Shi bumped Amkor’s price target up to $90 from $65, maintaining his Buy call after the earnings, The Fly reported, citing TipRanks. Revenue and gross margin came in ahead of consensus, Needham noted. The firm still sees computing revenue jumping more than 20% in 2026, with AI and data-center demand offsetting a sluggish PC market.
Competition isn’t letting up. Just last week, Reuters noted that Taiwan’s ASE Technology—currently the largest chip packaging and testing firm worldwide—projects its advanced packaging segment will bring in over $3.5 billion in 2026, up 10%, fueled by demand for AI chips. ASE’s Siliconware Precision Industries, a key supplier for Nvidia’s packaging needs, is part of that push.
Nvidia brought Amkor into the picture earlier. Back in November, CFO Colette Kress told investors the chipmaker would team up with both Amkor and Siliconware Precision Industries to grow its U.S. manufacturing presence over a four-year stretch, according to Reuters.
Still, there are risks. The offering hinges on closing conditions, and those capped calls won’t shield noteholders from dilution or extra cash payouts if Amkor shares push past the cap. Amkor’s filing spells out the company’s habit of spending on facilities and equipment in anticipation of future revenue—often before locking in firm orders. If actual demand falls short, that can pressure both margins and cash flow.
Amkor is taking advantage of its stock trading near recent highs, opting to raise capital as investors watch AI packaging capacity closely. The bigger question comes next: Can the company get new capacity online as planned, fill it, and generate margins that make the expansion worthwhile?
