Amkor Weighs $1bn-Plus Stake Sale in China Chip Unit
Amkor Technology, one of the world’s largest outsourced chip assembly and testing firms, is considering selling a stake in its China operations, with potential valuation between $1bn and $1.5bn, according to Bloomberg.
The Arizona-based company has engaged an advisor to explore a carveout and gauge buyer interest, though any announcement is preliminary and decisions have not been made.
Amkor established its Shanghai presence in 2001, expanding with an acquired semiconductor facility from IBM in 2004. Today, the unit handles crucial outsourced semiconductor assembly and testing (OSAT), a step once considered unglamorous but now essential to chip manufacturing.
Selling part of the business would allow Amkor to maintain a minority stake while transferring day-to-day management to a new owner. This move reflects multinationals’ recent reassessment of their presence in China, particularly in light of Washington’s export controls and Beijing’s countermeasures.
Potential buyers are likely Asian investment firms and industry players, rather than Western strategics, due to geopolitical scrutiny. While details remain fluid and the process could still fall through, Amkor’s engagement of an advisor suggests the idea is being taken seriously.
This potential sale is part of a broader trend known as de-risking, where Western companies are carving their Chinese arms into standalone entities or selling down stakes to protect their global businesses from future restrictions.
In July, Amkor signed a $1.5bn agreement with Nvidia for advanced packaging and testing, and is building an advanced-packaging plant in Arizona. This shift towards packaging – once considered secondary – positions the company at the forefront of the AI chip race as transistor miniaturization slows.