The Chip Packaging Play: 7 Stocks to Profit from the Semiconductor Boom


  • Amkor Technology (AMKR): AMKR is a pure play packaging investment. 
  • Applied Materials (AMAT): AMAT shares have popped again in 2024.
  • ASML (ASML): ASML lithography machines are the best of the best in packaging.
  • Keep reading for more semiconductor stocks to buy!
Chip Packaging Stocks for Semiconductor Boom - The Chip Packaging Play: 7 Stocks to Profit from the Semiconductor Boom

Source: Shutterstock

Semiconductor stocks continue to get a lot of attention. The emergence of artificial intelligence necessitates a greater supply of chips making semiconductor stocks like Nvidia (NASDAQ:NVDA) especially hot. Chip packaging firms –  also integral to AI –  often receive less attention. This has led to my list of chip packaging stocks for a semiconductor boom on the horizon.

Yet, the chip packaging Market is expected to grow by 9.2% annually between 2023 and 2032. That growth rate is sufficient to produce strong returns for investors.

A semiconductor package is a plastic, ceramic, or glass casing that contains one or more semiconductor devices or integrated circuits. End users continue to demand smaller, lighter chip packages for increasingly complex applications.

The companies discussed below are meeting that demand and are expected to grow steadily through this decade and into the 2030s. 

Amkor Technology (AMKR)

semiconductor stocks Close-up electronic circuit board. technology style concept. representing semiconductor stocks. top semiconductor stocks to buy now. semiconductor stocks
Source: Shutterstock

Amkor Technology (NASDAQ:AMKR) is a company that provides a wide variety of packaging and test services. The company is located in Arizona and its stock is relatively well regarded.

The company attributes its 2023 outperformance relative to the semiconductor industry to its focus on advanced packaging. One of the primary reasons investors will be interested in Amkor Technology is that the company supports AI Packaging needs. The company is a leader in 2.5D packaging, a technology that integrates multiple circuits in one package. Artificial intelligence will require more and more advanced packaging techniques and Amkor Technology is a leader in that regard.

2023 was a year of cyclical downturn across the chip industry. Amkor Technology was affected and sales declined by 8%. However, the company increased its dividend by 5%. That’s a sign that the company is not only stable but also interested in placating shareholders. AMKR continues to be a strong pure-play packaging and testing investment. This makes it one of those chip packaging stocks for a semiconductor boom.

Applied Materials (AMAT)

a machine manufactures semiconductor chips in a factory setting. AI Semiconductor Stocks
Source: Shutterstock

Applied Materials (NASDAQ:AMAT) is a diverse semiconductor stock and a company that provides packaging equipment. 

One of the things that applied material does is vacuum coating that deposits a uniform barrier on top of the chip. The company’s role to roll vacuum coating systems set the industry standard. The coating extends the shelf life of the chip.

Applied Materials stock is performing particularly well in 2024, having grown by 30%. the company is benefiting from strong AI demand And there is some evidence that the down cycle has reached a bottom point. Applied Materials is performing well as the demand for memory chips increases. The company is well diversified across the semiconductor supply chain meaning it has many catalysts. 

AMAT stock has proven volatile over the past few years. when the markets are strong it stands out as an even stronger performer. 2024 continues to look bright and that suggests that Applied Materials could continue to outperform.


AI. Circuit board. Technology background. Central Computer Processors CPU concept. Motherboard digital chip. Tech science background. Integrated communication processor. 3D illustration representing semiconductor stocks. Semiconductors Stocks to Sell
Source: Shutterstock

Investors are generally aware  that ASML (NASDAQ:ASML) has cornered a portion of the chip Supply chain. Read about the stock and it’s likely you will encounter the phrase extreme ultraviolet lithography (EUV). ASML dominates that process and is essentially the only company producing the machines responsible for that process.

Lithography is a vital component of the packaging process. That makes ASML arguably the best chip packaging stock available to investors. Lithography itself is a process of transferring geometric patterns onto material covering a semiconductor wafer. ASML has refined the technology to its current apex which is why the stock is so valuable: No one else can do what it does. 

The company is developing updated EUV tools that have the potential to revitalize the already strong company. That technology is expected to enable the new generation of smaller, lighter chips. The so-called High NA EUV tools are part of a system that is as large as a double-decker bus and costs $350 million each. In conclusion, it’s one of those chip packaging stocks for a semiconductor boom.


Taiwan Semiconductor, TSMC (TSM) on phone screen stock image.
Source: sdx15 /

TSMC (NYSE:TSM) Is one of the most important chip stocks globally. The company is the world’s largest  semiconductor foundry. That means almost every semiconductor firm outsources some of their production to Taiwan Semiconductor Manufacturing. 

Part of the company’s operations includes advanced packaging services. The company offers turn key solutions that address diverse packaging issues. 

The company notes that packaging is again vital to innovation in the chip sector. Not long ago it was something of an afterthought but packaging technologies are now critical to maximizing function and cost. 

The company is considering plans to establish a packaging plant in Japan. Currently, all of TSMC’s packaging capacity exists in Taiwan. However, booming demand due to advanced packaging requirements for artificial intelligence means TSMC will likely expand  beyond its borders

The fact that TSMC is willing to expand beyond its borders for the first time ever should signal to investors just how critical packaging is at this time.

Micron Technology (MU)

In Ultra Modern Electronic Manufacturing Factory Design Engineer in Sterile Coverall Holds Microchip with Gloves and Examines it. Semiconductor stocks to sell. Undervalued Semiconductor Stocks
Source: Shutterstock

Micron Technology (NASDAQ:MU) stock is getting a lot of  attention lately. The reason for that attention is primarily because of its relationship with Nvidia. 

Micron is a well-known memory specialist. It is one of the leading producers of high bandwidth memory (HBM). Nvidia’s  upcoming h200 chips will require more HBM. Fortunately for Micron Technology, it recently began production of the HBM that will be used in those h200 chips.

That strong catalyst is one of the primary reasons to believe Micron Technology will continue to rise higher. However, in the context of this article, Micron Technology remains interesting because it engages in packaging. The company engages in wafer level packaging And also produces multichip packages. Multichip packages are applicable to a number of growing Industries including the Internet of Things (IoT). 

Micron shares had suffered for quite some time as the memory specialist saw demand for all. However, it is rising again as its specialist capabilities are again seeing renewed demand.

Intel (INTC)

Hand pointing upward next to upward trend stock chart in purple and blackish blue lighting, symbolizes growth stocks

Intel (NASDAQ:INTC) stock continues to be interesting at the moment for a number of reasons. the chipmaker is being subjected to a number of forces that have the potential to move its shares.

One of the biggest pieces of news is that the Chinese government has moved to block the use of American processors in government issued computers. Intel is one of those providers and that caused the market to react negatively when the news was announced. However, China will face significant problems in attempting to replace American processors with those made domestically. Those advanced processors rely on ASML’s EUV lithography machines which are currently banned from importation into China.

I personally don’t think Intel is in much trouble at all at the moment. The company is highly favored by the US government and recently was awarded $20 billion in subsidies. That funding should help Intel to continue to grow as one of the most important packaging and foundry firms in the semiconductor space.

KLA Corporation (KLA)

a close up image of a semiconductor. 5X Semiconductor Stocks
Source: Shutterstock

KLA Corporation (NASDAQ:KLA) is a chip stock that doesn’t get a lot of attention over all. The company isn’t a particularly well known name to investors. However, KLA Corporation is noteworthy for investors interested in various chip sub sectors including packaging  and equipment. 

The company sells equipment that detects defects on the surfaces of patterned and unpatterned wafers. Those wafers are also known as integrated circuits (ICs)  which are themselves chip packaging.

The company also provides equipment that enables the etching process on those wafers making it somewhat diversified. 

Although KLA corporations most recent earnings period provided results above guidance investors are somewhat worried. The reason for their worry is the company’s upcoming quarter guidance. That forward guidance was given two months ago and it appears that the down cycle may have reached a bottom. That suggests that KLA corporation’s guidance may end up being excessively negative. In turn, KLA shares have the potential to outperform.

On the date of publication, Alex Sirois did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the Publishing Guidelines.

Alex Sirois is a freelance contributor to InvestorPlace whose personal stock investing style is focused on long-term, buy-and-hold, wealth-building stock picks. Having worked in several industries from e-commerce to translation to education and utilizing his MBA from George Washington University, he brings a diverse set of skills through which he filters his writing.

Article printed from InvestorPlace Media,

©2024 InvestorPlace Media, LLC