Amkor, Ultra Clean, FormFactor Ride AI Chip Equipment Boom
Three semiconductor equipment firms report record demand driven by AI data centers and high-bandwidth memory, with specific revenue gains tied to packaging and testing innovations.
Amkor Technology, Ultra Clean Holdings, and FormFactor have each posted strong quarterly results driven by the surge in artificial intelligence infrastructure spending. These companies, all holding a Zacks Rank #1, are benefiting from increased capital expenditure in leading-edge logic, high-bandwidth memory, and advanced packaging. The shift in AI infrastructure trade has expanded beyond pure-play semiconductors to include critical data center components, creating a robust demand environment for their specific product lines.
According to GN stocks/chips analysis, the global semiconductor manufacturing equipment and materials industry is projected to reach a record $165.9 billion in 2026, a 23.2% year-over-year increase. This growth trajectory is expected to continue, with the market size estimated to hit $229.5 billion by 2028. The underlying cause is the sustained ramp-up of AI-powered data centers, which require more complex processing and memory solutions that these three firms are positioned to supply.
Amkor Posts Record Computing Revenue
Amkor Technology reported record Computing revenues in the second quarter of 2026, growing approximately 26% year over year. This performance reflects a sustained mix shift toward higher-value offerings, with Advanced products reaching $1.557 billion, up 26.79% from the prior year. The company also saw record revenue in Automotive and Industrial segments, supported by demand for Advanced Driver Assistance Systems and increased semiconductor content in next-generation vehicles.
Looking forward, management indicated that Computing growth accelerated by nearly 30% sequentially in the third quarter, driven by AI data center demand and the High Density Fan-Out (HDFO) CPU program ramp. This was partially offset by a high single-digit sequential decline in Communications, attributed to a planned transition of System-in-Package operations from Korea to Vietnam and ongoing memory supply constraints. Recent 10-year strategic partnerships with TSMC and a multi-year agreement with NVIDIA reinforce Amkor's long-term positioning in advanced packaging.
Ultra Clean Targets System Complexity
Ultra Clean Holdings is seeing increased opportunities for outsourced subsystems as its customers face rising system complexity. The company’s growth is tied to the need for specialized handling and processing solutions that accommodate the increasing intricacy of modern semiconductor manufacturing. As AI chips require more advanced fabrication steps, Ultra Clean’s role in providing critical process equipment and services has become more central to its clients’ production capacity.
FormFactor Hits Record DRAM Sales
FormFactor’s growth is being driven by its strength in High Bandwidth Memory (HBM) testing solutions. The company recorded a record $85 million in DRAM revenues, a direct result of the booming demand for HBM, which is essential for high-performance AI accelerators. This segment has become a primary engine for FormFactor’s financial performance, aligning its revenue growth with the broader industry trend of prioritizing memory bandwidth in AI workloads.
