With the rapid development of artificial intelligence technology, advanced packaging, as a key link in the semiconductor industry chain, is facing unprecedented development opportunities. In 2026, the global AI computing demand is showing explosive growth, driving the acceleration of advanced packaging technology iteration, and the US advanced packaging sector is also undergoing value reassessment. This article will conduct an in-depth analysis of advanced packaging US stock investment strategies from multiple dimensions including technological trends, market performance, regional policies, and corporate strategies, providing professional references for investors.
Advanced Packaging Technology: Core Support in the AI Computing Era
Advanced packaging technology is the key path for the semiconductor industry to evolve from "miniaturization" to "integration". Especially against the backdrop of surging AI computing demand, its strategic position has become increasingly prominent. Compared with traditional packaging, advanced packaging achieves higher density and higher bandwidth connections between chips through advanced technologies such as 2.5D/3D stacking, Through-Silicon Vias (TSV), and Fan-Out packaging, significantly improving system performance and energy efficiency ratio.
In 2026, with the popularization of AI applications such as ChatGPT, autonomous driving, and the metaverse, the demand for computing power in AI chips is showing exponential growth. According to industry data, the global AI chip market size is expected to reach $500 billion, with a compound annual growth rate exceeding 30%. This trend has directly driven strong demand for advanced packaging technology, especially packaging solutions for high-bandwidth memory (HBM) and advanced logic chips.
In terms of technology routes, the current advanced packaging is mainly divided into two camps: one is the CoWoS (Chip on Wafer on Substrate) and InFO (Interposer Fan-Out) technologies dominated by traditional IDM and OSAT manufacturers such as TSMC and ASE; the other is the Foveros (3D stacking) and EMIB (Embedded Multi-Die Interconnect Bridge) technologies promoted by IDM manufacturers such as Intel and AMD. These technologies have their respective advantages and jointly constitute the technical ecosystem of advanced packaging.
US Advanced Packaging Sector: Market Performance and Investment Value
Since 2026, the US advanced packaging sector has shown outstanding performance, significantly outperforming the broader market. The stock prices of packaging and testing leading enterprises represented by Amkor Technology, ASE Group, and JCET have continued to rise, with the sector index up more than 35% year to date, far higher than the 15% increase of the Nasdaq Composite Index. This performance reflects the market's strong expectations for the future growth potential of the advanced packaging industry.
From a valuation perspective, the current average P/E ratio of the US advanced packaging sector is about 28 times. Although higher than the historical average, considering the high-growth characteristics of the industry, this valuation is still in a reasonable range. Especially leading enterprises such as Amkor and ASE, with their technological advantages and market position, have more obvious valuation premiums, with P/E ratios reaching 32 times and 30 times respectively.
In terms of financial performance, in the second quarter of 2026, major US packaging and testing companies generally achieved double growth in revenue and profit. Amkor Technology's revenue increased by 42% year-on-year, and net profit increased by 58%; ASE Group's revenue increased by 38% year-on-year, and net profit increased by 51%. This strong performance is mainly due to the rapid growth of demand for AI-related chip packaging and the increase in the proportion of high-value-added packaging products.
Investment Opportunities in Sub-sectors
In the advanced packaging sub-sectors, the following directions are worth attention:
- HBM Packaging: With the continuous increase in memory bandwidth requirements for AI large model training and inference, HBM packaging demand has surged. Currently, memory giants such as Samsung, SK Hynix, and Micron are accelerating the development of HBM4, while packaging and testing companies such as Amkor and ASE are actively expanding HBM packaging capacity. It is expected that from 2026 to 2027, the HBM packaging market will maintain an annual growth rate of more than 40%, becoming the most promising sub-sector in the advanced packaging field.
- Chiplet Packaging: Chiplet technology can effectively reduce manufacturing costs and improve yield by breaking down complex chips into multiple small chips and then integrating them through advanced packaging technology. This technology route is especially suitable for AI chips and high-performance computing chips. Currently, chip giants such as Intel, AMD, and NVIDIA are actively promoting the construction of the Chiplet ecosystem, bringing continuous growth momentum to related packaging and testing companies.
- Fan-Out Packaging: Fan-Out packaging has higher integration and better electrical performance, making it suitable for fields such as mobile devices and the Internet of Things that have higher requirements for size and performance. With the advancement of 5G-A and 6G technologies and the continuous enhancement of smart terminal functions, the Fan-Out packaging market is expected to maintain stable growth.
Regional Policy Dividends: Southeast Asia Becomes a New Hotspot for Advanced Packaging
In recent years, Southeast Asia has gradually become an important destination for the global semiconductor industry chain transfer, leveraging its labor cost advantages, policy support, and geopolitical factors. In the field of advanced packaging, Southeast Asian countries are actively making layouts and introducing a series of preferential policies to attract international packaging and testing giants to invest and build factories.
As an important base for global semiconductor packaging and testing, Malaysia has attracted many international packaging and testing companies including Amkor, ASE, and Intel. In 2026, the Malaysian government launched the "Semiconductor Strategy 2.0" plan, which plans to invest $10 billion in the next five years to support advanced packaging technology research and development and capacity expansion. This policy will further strengthen Malaysia's position in the advanced packaging field.
Vietnam is rapidly emerging as a new semiconductor manufacturing center, leveraging its labor cost advantages and active industrial policies. In 2026, the Vietnamese government introduced new policies for automotive chip packaging and testing, providing tax reductions, land preferences and other support for companies investing in advanced packaging projects. At the same time, Vietnam is actively promoting cooperation with the EU's Carbon Border Mechanism to create favorable conditions for green semiconductor manufacturing.
As a technology center in Southeast Asia, Singapore is also actively developing the advanced packaging industry. In 2026, the Singapore government launched the "Advanced Packaging Flagship Program", investing 3 billion Singapore dollars to support advanced packaging technology research and development and talent cultivation. This plan will further consolidate Singapore's position in the field of high-end semiconductor manufacturing.
Corporate Strategic Layout: Competitive Landscape and Investment Value
In the US advanced packaging sector, Amkor Technology and ASE Group are the two leading enterprises, accounting for about 40% of the global advanced packaging market. These two companies have established a leading position in the AI chip packaging field through technological accumulation, customer resources, and scale advantages.
As the world's largest independent packaging and testing service provider, Amkor Technology has been actively expanding advanced packaging capacity in recent years, especially in the United States, South Korea, and Southeast Asia. In 2026, Amkor announced that it will invest $2 billion to build an advanced packaging factory in Vietnam, with expected operation in 2027. This move will further expand its capacity layout in the Southeast Asian region and seize the opportunities of regional industrial transfer.
ASE Group is continuously enhancing its technical strength in the advanced packaging field through acquisitions and independent research and development. In 2026, ASE announced that it would acquire European packaging and testing manufacturer X-FAB for $3 billion, further expanding its market share in Europe. At the same time, ASE is also actively expanding advanced packaging capacity in Malaysia and Thailand to meet the strong demand for AI chip packaging.
In addition to these two leading enterprises, companies such as JCET and SPIL are also actively developing in the advanced packaging field, especially in the Chinese market. These companies have formed unique competitive advantages in specific sub-sectors through in-depth understanding of the local market and cost advantages.
Investment Strategies and Risk Warnings
Based on the above analysis, investors can adopt the following strategies when allocating to the US advanced packaging sector:
- Focus on Leading Enterprises: Amkor and ASE, as industry leaders, have technological advantages, customer resources, and scale effects, and are in a leading position in the AI chip packaging field. Although their valuations are high, their long-term growth certainty is relatively strong, making them suitable as core allocations.
- Seize Regional Opportunities: Pay attention to companies actively expanding in Southeast Asia, such as Amkor's Vietnam project and ASE's Malaysia expansion. These companies are expected to benefit from regional policy dividends and industrial transfer, achieving rapid growth.
- Deepen in Sub-sectors: HBM packaging and Chiplet packaging are the most promising sub-sectors in the advanced packaging field, and related companies are expected to obtain excess returns. Investors can focus on companies with technological advantages in these fields.
However, investing in the advanced packaging sector also faces certain risks:
- Technology Iteration Risk: Semiconductor technology updates and iterations are fast, and advanced packaging technology routes may undergo major changes. If companies cannot keep up with technological changes in time, they may face the risk of being eliminated.
- Overcapacity Risk: As major global manufacturers expand production, advanced packaging capacity may experience periodic oversupply, leading to intensified price competition and affecting corporate profitability.
- Geopolitical Risk: The semiconductor industry is the focus of global geopolitical game. Factors such as trade friction and technology blockade may affect companies' global layout and supply chain security.
Future Outlook: AI-driven Long-term Growth
Looking ahead, the advanced packaging industry will benefit from the continuous development and popularization of AI technology, ushering in long-term growth opportunities. With the continuous deepening of applications such as ChatGPT, autonomous driving, and the metaverse, the demand for computing power in AI chips will continue to grow, driving the iterative upgrading of advanced packaging technology.
From a technological trend perspective, advanced packaging technologies such as 3D stacking, Chiplet integration, and heterogeneous integration will become mainstream, further improving chip performance and energy efficiency. At the same time, with the development of emerging technologies such as quantum computing and neuromorphic computing, advanced packaging technology will also face new challenges and opportunities.
From a regional perspective, Southeast Asia will become an important destination for advanced packaging industry transfer. Countries such as Malaysia, Vietnam, and Singapore will form new industrial clusters through policy support and location advantages. This trend will bring continuous growth momentum to companies actively expanding in Southeast Asia.
From a corporate competition perspective, technological strength, customer resources, and scale effects will become key elements of corporate competition. Leading enterprises will further consolidate their market position through technological innovation and capacity expansion; while small and medium-sized enterprises need to form differentiated advantages in specific sub-sectors to survive and develop in the fierce market competition.
Overall, the advanced packaging industry is in a golden development period, and the US advanced packaging sector is expected to maintain strong growth. While paying attention to short-term market fluctuations, investors should more grasp the long-term development trend of the industry, select high-quality enterprises, and share the technology dividends of the AI era.
