Amkor Technology initiated with a Buy at Needham

Needham analyst Charles Shi initiated coverage of Amkor Technology with a Buy rating and $40 price target. Amkor is the only U.S-headquartered, major outsourced semiconductor assembly and test provider, the analyst tells investors in a research note. The firm says the company has “seen market-shaping customers, such as Apple, moving orders its way as they de-risk their Asian supply chains.” Amkor is ramping 2.5D capacity to become a viable second source to TSMC CoWoS for customers such as Nvidia and others, adds Needham. It believes Amkor is in the midst of the final leg of the auto/industrial semi downturn and a cyclical upturn is approaching.