Amkor Plans to Sell Stake in China Operations, Valued Up to $1.5 Billion
Claire Weston
Chip-packaging giant Amkor Technology is exploring a sale of its China business stake, valued at $1 billion to $1.5 billion — another signal that multinationals are actively trimming their China exposure under geopolitical pressure.
What is Amkor selling, and for how much?
Amkor Technology — one of the world's largest outsourced semiconductor assembly and test (OSAT) firms — has hired advisers to prepare a potential divestiture of its China operations and begun early market-sounding.
The business could be valued at $1 billion to $1.5 billion; Amkor may retain a minority stake.
Talks are preliminary. No decision has been made, and valuation details may still shift. Amkor declined to comment.
Where do these China assets come from?
Amkor opened a packaging plant in Shanghai in 2001 and acquired a second major semiconductor facility there from IBM three years later.
This means → the assets are not a recent foothold but over two decades of mature, operating capacity — real production value for a potential buyer.
People familiar with the matter say Asian investment firms and industry players could be interested.
Why divest now?
In July, Amkor announced a $1.5 billion multi-year agreement with Nvidia to co-develop advanced packaging and testing for next-generation AI and accelerated-computing platforms. A month earlier, it signed a ten-year partnership with TSMC.
In plain terms = Amkor is stacking its chips on AI and marquee clients, and the China business increasingly looks like a geopolitical liability at that table.
This reflects a broader wave: SK Hynix is bringing outside investors into its Chongqing plant; Abercrombie & Fitch, General Mills, Starbucks, and Oatly have all taken similar steps — multinationals are collectively reassessing their China exposure.
What does this mean for Amkor itself?
Amkor shares are up 34% year-to-date, giving the company a market cap of roughly $13.1 billion, though the stock has pulled back from its June high amid AI-sector volatility.
This means → a completed divestiture would accomplish two things at once: monetize the China assets to reload capital, and reduce geopolitical risk to present a cleaner valuation story.
Put simply = lock in Nvidia and TSMC with one hand, shed China exposure with the other — a bet that the direction of travel is AI supply-chain de-Sinicization.
Content is for reference only, not financial advice.