Amkor Technology has confirmed it will close its Hakodate factory in Nanae Town, Hokkaido, Japan, with the shutdown scheduled for completion by December 2027. The related operations will be fully integrated into existing facilities in the Kyushu region, a move driven by persistent softness in the automotive semiconductor market.
The Hakodate plant currently employs 380 people and focuses on packaging general‑purpose automotive semiconductors, which are widely used in automotive electronic systems. Since 2023, sluggish global electric vehicle (EV) sales have led to continuing declines in demand for the plant’s core products, resulting in chronically low capacity utilization with little prospect of recovery.
Amkor Japan stated that future demand for products made at the Hakodate facility is below expectations and unlikely to rebound, prompting the closure decision based on long‑term operational efficiency. The transition will be implemented in phases: production of certain low‑demand products will be terminated directly, while products with market demand will be gradually transferred to other factories starting April 2027, aiming to achieve full integration by the end of 2027 to streamline the product portfolio for current market conditions.
Notably, this closure is not an isolated event but reflects a broader adjustment period in the automotive semiconductor industry. After rapid expansion, the EV sector has entered a consolidation phase, with slowing chip demand growth compounded by stabilized electronic‑component upgrades in traditional internal‑combustion vehicles. The overall general automotive semiconductor market is under pressure, with some segments experiencing temporary overcapacity. Packaging and testing companies are responding by optimizing production footprints. By consolidating dispersed capacity into the Kyushu region, Amkor can leverage regional cluster effects, shared supply‑chain resources, and technical expertise to improve production efficiency and cost control.
ICgoodFind : Amkor’s adjustment is a pragmatic response to industry cycles, sharpening its focus on core capacity and better aligning with evolving automotive semiconductor demand.
