The Revolution Will Be Digitalized

Leveraging artificial intelligence, machine learning and interconnected systems, Industry 4.0 challenges companies to surpass factory automation and achieve factory intelligence. The goal of factory intelligence is to improve product and service quality, decision making speed on the factory floor and utilization of high-value assets.

Industry 1.0
Industry 2.0
Industry 3.0
Industry 4.0

Power Generation

The first industrial revolution happened between the late 1700s and early 1800s. During this period, manufacturing evolved from focusing on manual labor performed by people and aided by work animals to a more optimized form of labor performed by people using water and steam-powered engines and other types of machine tools.


In the early part of the 20th century, the world entered a second industrial revolution with the introduction of steel and use of electricity in factories. The introduction of electricity enabled manufacturers to increase efficiency and helped make factory machinery more mobile. It was during this phase that mass production concepts like the assembly line were introduced to boost productivity.


In the 1950s, a third industrial revolution began to emerge, as manufacturers began incorporating more electronic, and eventually computer, technologies into their factories. During this period, manufacturers began experiencing a shift that put less emphasis on analog and mechanical technology and more on digital technology and automation software.


In the past few decades, a fourth industrial revolution has emerged, known as Industry 4.0. I4.0 takes the emphasis on digital technology from recent decades to a whole new level with the help of interconnectivity through the IoT, access to real-time data, and the introduction of cyber-physical systems. I4.0 offers a more comprehensive, interlinked, and holistic approach to manufacturing. It connects physical with digital, and allows for better collaboration and access across departments, partners, vendors, product and people. Industry 4.0 empowers business owners to better control and understand every aspect of their operation and allows them to leverage instant data to boost productivity, improve processes and drive growth.

A Future Built Upon Eight Pillars

Autonomous Machines

Big Data Analytics

Industrial IoT

Cloud Computing

Universal System Integration




Amkor aligns to an eight-pillar structure to ensure success in Industry 4.0. Five of the pillars are foundational, while three enable an intelligent factory framework.


Amkor is employing autonomous equipment with no operator intervention as well as having hands-free material handling by fully autonomous robots on the factory floor. We have also implemented the digitization of paper-based processes including execution tracking, material validation and information support for our operators.


Amkor utilizes big data analytics to provide insights into machine performance, yield, process defects and cycle time. This leverages connected data to drive actionable insights, real-time production planning and factory optimization.

Another benefit of big data analytics is predictive maintenance allowing us to apply efficient methods for target life management, prevent next loT maintenance and reduce engineering effort.


Implementing computer integrated manufacturing (CIM) and a IoT controlled factory environment (air, gases, chemicals, electricity), allows Amkor to increase the speed of the manufacturing process and use real-time sensors and closed-loop control processes to automate the entire manufacturing operation.


Cloud computing facilitates a real-time exchange of data, creating and promoting an environment of digital collaboration and integration. This allows Amkor to better connect to key stakeholders, providing real-time visibility with proactive and collaborative management of the supply chain, driving efficiencies and enhancing risk management.


Amkor’s universal integration of product lifecycle management (PLM), enterprise resource planning (ERP), manufacturing execution system (MES), computer integrated manufacturing (CIM) and peripheral systems in our factories allow us to enable seamless services, end-to-end visibility and unit level traceability (ULT) from new product introduction, order to shipment and efficient customer order fulfillment.


Amkor implements strict controls and protection to secure Amkor and customer intellectual property. One of the ways we do this is via our Amkor digital rights management (DRM) solution that allows secure communication of intellectual property data externally or internally.


AI is poised to overcome the limitations of human-centric input and decision making to develop and produce high-quality semiconductors using data-driven processes. Amkor is applying machine learning approaches to improve the detection of defects that are difficult for humans to distinguish.

Integrating artificial intelligence, machine learning and augmented reality will expedite and optimize physical design results, test accuracy and improve manufacturing processes.


With Amkor’s factory simulation modeling, we can visualize and simulate operations in a digitally created production space. This empowers Amkor to simulate time-based processes in minutes allowing the comparison of different system configurations and assessment of the impact on factory system performances.


Continuous Improvement, Measured Regularly

We measure smart manufacturing success using six Key Performance Indicator (KPI) criteria. All projects approved under the Industry 4.0 program at Amkor will be tied to one or more of these key performance measurements:


Yield and customer feedback


Employee efficiency

Cycle time

Manufacturing cycle time

Speed and quality of
decision making

Time saved in engineering data analysis and in-line decision making

Asset utilization

Utilization of assets for productive use


Competitive pricing

Smart Manufacturing FAQs

What’s the difference between smart manufacturing and Industry 4.0?

Smart manufacturing, intelligent factory, China Manufacturing 2025 and Industry 4.0 are various industry programs referring to next generation of manufacturing, but all related to advanced manufacturing states. These various programs started in different parts of the world with slight variations in the scope and emphasis of one technology or the other. Industry 4.0, referred to as the fourth industrial revolution, started in Germany to define the next generation of manufacturing industry characteristics. This program is now widely adopted across the globe.

What constitutes Industry 4.0 at Amkor?

Amkor has adopted eight technology pillars of Industry 4.0 framework. They are 1) Autonomous equipment 2) Industrial IoT 3) Universal system integration 4) Artificial Intelligence/Augmented Reality (AI/AR) 5) Big Data Analytics 6) Cloud computing 7) Cybersecurity and 8) Simulation.

Why is Amkor committed to Industry 4.0?

Amkor is focused on improving efficiency, quality and utilization of factory operations. Amkor’s holistic and comprehensive strategies capitalize on advanced technologies in the right area with the right strategy. As a manufacturer, adopting technology of the fourth industrial revolution will enable our manufacturing operations to be effective, efficient and continue to be competitive.

How will Amkor measure the success of this initiative?

Amkor’s established goals for each mechanism are aligned with business targets and strategies. Goal measurements are monitored and audited by the cross functional Industry 4.0 committee and are both quantitative and qualitative based on the maturity levels and actual business outcomes.

Who at Amkor monitors progress towards goals?

A cross-functional team serves as the governing body to oversee the process/mechanics of goal setting, measurement and monitoring progress.