Lightmatter, Amkor partner on photonic AI chip packaging

MOUNTAIN VIEW, Calif. - Lightmatter, a company specializing in photonic supercomputing, has announced a strategic partnership with Amkor Technology , Inc. (NASDAQ:), a leading provider of semiconductor packaging and test services. The collaboration aims to produce what is claimed to be the largest-ever 3D-packaged chip complex using Lightmatter’s Passage platform and Amkor’s multi-die packaging technology.

This partnership is set to address the challenges of scaling Artificial Intelligence (AI) performance at the chip level, which has become increasingly difficult with the end of Moore's Law. Traditional methods using an electrical silicon interposer face limitations in I/O bandwidth due to restricted chip area. Lightmatter’s Passage platform proposes a solution by enabling optical I/O across the chip area through 3D integration of customer dies onto a silicon photonic interconnect. This approach is expected to offer significantly higher connection density and bandwidth both within and outside the package.

Ritesh Jain, SVP of Engineering and Operations at Lightmatter, expressed excitement about the partnership, emphasizing the potential to empower customers with AI and High-Performance Computing (HPC) compute offerings that boast unprecedented bandwidth and efficiency. Kevin Engel, EVP, Business Units at Amkor, echoed this sentiment, highlighting the combined expertise in photonics and 3D packaging.

The companies assert that their collaboration will lead to superior energy efficiency and performance, especially in demanding thermal conditions, and pave the way for future computing advances, including Artificial General Intelligence (AGI).

The technological development is set to be showcased at SC24 in Atlanta from November 19-21, where Lightmatter will be present at booth number 511.

This news is based on a press release statement from Lightmatter.

In other recent news, Vietnam's semiconductor sector is gaining global traction, with foreign companies such as Hana Micron (NASDAQ:), Amkor Technology, and Intel Corporation (NASDAQ:) expanding their operations in the country. Hana Micron plans to invest approximately $930.49 million by 2026 to enhance its packaging operations, while Amkor Technology announced a significant $1.6 billion investment last year to construct a new facility in Vietnam. Intel Corporation operates its largest global back-end chip factory in Vietnam.

In recent developments, Amkor Technology reported a significant increase in its third-quarter revenue, reaching $1.86 billion, a 27% sequential rise. The company's earnings per share (EPS) stood at $0.49. Despite facing some challenges in the automotive and industrial sectors, Amkor's strategic investments in advanced packaging and global manufacturing signal a strong focus on future growth.

However, DA Davidson, in its recent analyst note, announced a revised price target on shares of Amkor Technology, lowering it to $36.00 from the previous $40.00, while still retaining a Buy rating on the stock. The adjustment follows Amkor's recent earnings report, which projected a downturn in the fourth quarter that exceeds typical seasonal patterns. Despite this, DA Davidson remains positive on Amkor's long-term prospects, predicting a robust recovery in its communications business.

Vietnamese domestic firms are also contributing to this expansion. FPT, a Vietnamese technology company, is constructing a testing factory near Hanoi, and Sovico Group, an investment firm in Vietnam, is seeking a foreign partner to co-invest in a chip assembling facility in the coastal city of Danang. Beyond back-end manufacturing, Vietnam is setting its sights on front-end chipmaking. Viettel, a state-owned defense and telecoms firm, is planning to build the country's first semiconductor foundry.

InvestingPro Insights

The strategic partnership between Lightmatter and Amkor Technology (NASDAQ:AMKR) comes at an interesting time for Amkor, as recent InvestingPro data reveals some mixed signals about the company's performance and outlook.

Amkor's market capitalization stands at $6.46 billion, reflecting its significant position in the semiconductor industry. The company's P/E ratio of 17.71 suggests a moderate valuation compared to some of its peers. However, investors should note that Amkor's revenue growth has been slightly negative, with a -3.26% decline in the last twelve months as of Q3 2024.

Despite this, Amkor maintains a solid financial position. An InvestingPro Tip highlights that the company's liquid assets exceed its short-term obligations, indicating good financial health. This strong liquidity position could be advantageous as Amkor embarks on this new partnership with Lightmatter, potentially requiring investments in new technologies and production capabilities.

Another InvestingPro Tip points out that Amkor has raised its dividend for 4 consecutive years, which may be appealing to income-focused investors. The current dividend yield stands at 1.21%, with a 5% dividend growth rate in the last twelve months.

It's worth noting that 8 analysts have revised their earnings downwards for the upcoming period, which could signal some near-term challenges. However, the company's involvement in cutting-edge technologies like the 3D-packaged chip complex with Lightmatter could potentially open up new growth avenues.

For investors seeking a more comprehensive analysis, InvestingPro offers additional tips and insights on Amkor Technology. There are 11 more InvestingPro Tips available, providing a deeper understanding of the company's financial health and market position.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.