Amkor Technology (AMKR) is a top-tier [[OSATs - Outsourced Semiconductor Assembly and Test]] with direct exposure to advanced packaging growth. **What they do:** Full portfolio of packaging services including flip-chip, 2.5D, [[Chiplets and Heterogeneous Integration]], and [[HBM and Package Integration]]. They compete directly with [[ASE Technology - ASX]] and others. **Why it matters:** - U.S. government treating packaging capacity as strategic. Amkor expanding Arizona advanced packaging campus for later-decade production. - Direct beneficiary of [[Packaging Capacity Bottleneck]]. AI module demand keeps utilization high. - Diversified customer base across communications, computing, automotive, and industrial reduces concentration risk. **Current valuation (as of snapshot):** - Price: ~$42.92 - Forward PE: ~27-30x range - Not dirt cheap, but reasonable vs growth expectations **Value thesis:** Market often prices OSATs like cyclical industrials during downturns. If advanced packaging mix rises and utilization stays supported by AI demand, earnings power is understated. **Risks:** - Customer concentration (hyperscalers, major chip companies) - Capex heavy, can pressure FCF in weak cycles - Pricing competition from other OSATs **Margin of safety checklist (from [[OSAT Value Investing Framework]]):** - Advanced packaging revenue mix rising - Utilization staying high despite consumer weakness - Major customer capacity awards - Capex backed by committed demand - Balance sheet manageable This is the core [[Concentrated Packaging Portfolio]] position. Real business, visible cash flows, structural tailwind. Links: [[Advanced Packaging MOC]], [[OSATs - Outsourced Semiconductor Assembly and Test]], [[ASE Technology - ASX]] --- #investing #semiconductors