News
Amkor Technology to close Hakodate factory due to weak automotive demand
Wednesday, January 14, 2026 at 10:17 AM
Amkor Technology has announced the closure of its semiconductor assembly and test facility in Hakodate, Japan, citing a downturn in the automotive chip market.
Context
Amkor Technology, the world’s second-largest outsourced semiconductor assembly and test provider, has announced the closure of its factory in Hakodate, Japan. The facility is scheduled to cease operations by September 2025 as the company moves to consolidate its global manufacturing footprint. This decision directly impacts approximately 150 employees and reflects a broader strategic shift to mitigate financial pressure from underperforming legacy assets in the region.
The closure is a direct response to a sustained slump in automotive semiconductor demand, which has struggled due to cooling global electric vehicle sales and elevated inventory levels. By exiting the Hakodate site, Amkor is pivoting its capital and engineering focus toward advanced packaging solutions for AI and high-performance computing. This consolidation highlights the widening performance gap in the chip supply chain between stagnant automotive legacy segments and the high-growth requirements of the AI infrastructure market.
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