Amkor and GlobalFoundries Cut Ribbon on Strategic Cooperation in Portugal
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Insights
The strategic partnership between Amkor Technology, Inc. and GlobalFoundries has the potential to significantly alter the European automotive semiconductor landscape. By establishing a comprehensive supply chain within the European Union, this collaboration addresses the pressing need for supply chain resilience and regionalization, particularly in the wake of recent global disruptions.
From a market perspective, the move could be seen as a strategic pivot towards reducing dependency on Asian semiconductor manufacturing hubs. This shift may offer a competitive edge to European automakers, potentially leading to improved market share and profitability due to reduced logistics costs and shorter time-to-market for new technologies.
Furthermore, the expansion of Amkor's Porto facility and the transfer of advanced semiconductor tools from GlobalFoundries' Dresden site is likely to create a synergy that could enhance the efficiency and output quality of semiconductor components. This is especially pertinent for the automotive industry, which is increasingly reliant on high-quality semiconductors for modern vehicles.
The partnership's financial implications for both Amkor and GlobalFoundries could be substantial. With Europe's largest semiconductor manufacturer, GlobalFoundries, teaming up with a Tier 1 OSAT like Amkor, investors may anticipate potential revenue growth and operational cost savings due to economies of scale and shared expertise.
Investors should monitor the capital expenditures associated with the expansion of the Porto facility and the transfer of equipment. These expenditures will likely impact short-term financials but could lead to long-term gains through increased production capacity and market share.
It is important to assess how this move aligns with the European Union's funding initiatives for semiconductor manufacturing, as financial support from regional programs could enhance the partnership's profitability and reduce investment risks.
The partnership between Amkor and GlobalFoundries is a strategic response to the increasing importance of supply chain stability in the semiconductor industry. By localizing the supply chain for semiconductor wafer production and OSAT services, the companies are aiming to mitigate risks such as geopolitical tensions, trade disputes and transportation vulnerabilities that have affected global supply chains.
Ensuring supply chain stability is crucial for the automotive sector, where just-in-time manufacturing models are prevalent. The collaboration's focus on the automotive market, where supply disruptions can lead to significant production halts, indicates a proactive approach to meeting the stringent requirements of automotive clients.
The IATF 16949 certification of Amkor's Porto plant is a testament to the quality management systems in place, which is a critical factor for automotive clients. This standard, designed to meet the automotive industry's rigorous quality requirements, is likely to enhance customer confidence and attract further business.
Partnership to strengthen European automotive supply chain and expand services for global customers
Since February 2023, GF has transferred 50 tools from its Dresden site to Amkor in
The new partnership between the two companies redefines the landscape of semiconductor manufacturing by enabling a first comprehensive EU supply chain — from semiconductor wafer production at GF to OSAT services at Amkor. To facilitate this collaboration, GF is transferring its 300 mm Bump (12-inch bump, CuP and plated bump) and Sort lines from its Dresden site to Amkor’s IATF 16949 certified
This key strategic partnership between Amkor and GF is uniquely positioned to aid the European Union in its drive toward automotive semiconductor manufacturing regionalization. Amkor’s global footprint and strong European presence combined with GF’s tools, processes and know-how will enable the
“Amkor has more than 40 years of automotive expertise and is IATF-certified across seven countries around the world,” said Kevin Engel, Amkor’s executive vice president, Business Units. “Amkor brings the scale and expertise of its global advanced packaging footprint to this exciting collaboration. Our partnership with GlobalFoundries signals our common goal to stabilize a robust and resilient European automotive supply chain.”
“GF Dresden is Europe’s largest and most advanced semiconductor manufacturer and Amkor is the only Tier 1 OSAT in Europe,” said Dr. Manfred Hortsmann, GlobalFoundries’ senior vice president and general manager European Fabs. “Together, we enable one of the most robust chip supply chains outside of
Amkor’s collaboration with GF represents a significant stride in the expansion of offerings and overall footprint in
About Amkor Technology, Inc.
Amkor Technology, Inc. is the world's largest US headquartered OSAT (outsourced semiconductor assembly and test) service provider. Since its founding in 1968, Amkor has pioneered the outsourcing of IC packaging and test services and is a strategic manufacturing partner for the world's leading semiconductor companies, foundries, and electronics OEMs. Amkor provides turnkey manufacturing services for the communication, automotive and industrial, computing, and consumer industries, including but not limited to smartphones, electric vehicles, data centers, artificial intelligence, and wearables. Amkor's operational base includes production facilities, research and development centers, and sales and support offices located in key electronics manufacturing regions in
About GlobalFoundries
GlobalFoundries (GF) is one of the world’s leading semiconductor manufacturers. GF is redefining innovation and semiconductor manufacturing by developing and delivering feature-rich process technology solutions that provide leadership performance in pervasive high growth markets. GF offers a unique mix of design, development, and fabrication services. With a talented and diverse workforce and an at-scale manufacturing footprint spanning the
©GlobalFoundries Inc., GF, GlobalFoundries, the GF logos and other GF marks are trademarks of GlobalFoundries Inc. or its subsidiaries. All other trademarks are the property of their respective owners.
Forward-Looking Statement Disclaimer
This press release contains forward-looking statements within the meaning of the federal securities laws, including statements about supply chain development. You are cautioned not to place undue reliance on forward-looking statements. All forward-looking statements in this press release are made based on our current expectations, forecasts, estimates and assumptions. Because such statements include risks and uncertainties, actual results may differ materially from those anticipated in such forward-looking statements. Risk factors that could affect the outcome of the events set forth in these statements are discussed in the company’s reports filed with or furnished to the Securities and Exchange Commission. All forward-looking statements attributable to us or persons acting on our behalf are expressly qualified in their entirety by this cautionary statement. We assume no obligation to review or update any forward-looking statements to reflect events or circumstances occurring after the date of this press release except as may be required by applicable law.
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Amkor Technology, Inc.
Investor Relations
Jennifer Jue
Vice President, Investor Relations and Finance
480-786-7594
jennifer.jue@amkor.com
Media Relations
Christina Parsons
Director, Marketing Communications
480-786-7653
christina.parsons@amkor.com
Social Media: @amkortechnology
GlobalFoundries
Jens Drews
jens.drews@gf.com
+49 172 3552369
Erica McGill
erica.mcgill@gf.com
518-795-5240
Source: Amkor Technology, Inc.
FAQ
What is the purpose of the partnership between Amkor Technology, Inc. (AMKR) and GlobalFoundries (GF)?
What tools have been transferred as part of the partnership?
What is the goal of establishing the first at-scale back-end facility in Europe?
What is the significance of Amkor's global footprint and strong European presence combined with GF's tools, processes, and know-how?
What does the partnership represent for Amkor in terms of expansion in Portugal?
