[Financial Performance and Outlook](index=1&type=section&id=Financial%20Performance%20and%20Outlook) This section provides an overview of Amkor's financial results, liquidity, and future projections [Second Quarter 2025 Financial Highlights](index=1&type=section&id=Second%20Quarter%202025%20Financial%20Highlights) Amkor reported Q2 2025 revenue of **$1.51 billion**, a **14% sequential increase**, exceeding guidance with double-digit growth across all end markets, and net income of **$54 million**, or **$0.22 per diluted share**, including a **$32 million** one-time net benefit to operating income - CEO Giel Rutten highlighted that Q2 revenue of **$1.51 billion** was up **14% sequentially** and above guidance, with double-digit growth across all end markets, strengthening the company's strategic presence in AI and HPC[2](index=2&type=chunk) Quarterly Financial Results Comparison (in millions, except per share data) | | Q2 2025 | Q1 2025 | Q2 2024 | | :--- | :--- | :--- | :--- | | Net sales | $1,511 | $1,322 | $1,461 | | Gross margin | 12.0% | 11.9% | 14.5% | | Operating income | $92 | $32 | $82 | | Net income attributable to Amkor | $54 | $21 | $67 | | Earnings per diluted share | $0.22 | $0.09 | $0.27 | | EBITDA | $259 | $197 | $247 | - Q2 2025 results included a **$32 million** net benefit to operating income and EBITDA from a contingency payment related to the Nanium acquisition, positively impacting net income by **$16 million** and earnings per diluted share by **$0.07**[3](index=3&type=chunk) [Financial Condition and Dividends](index=1&type=section&id=Financial%20Condition%20and%20Dividends) As of June 30, 2025, Amkor maintained a strong liquidity position with **$2.0 billion** in cash and short-term investments against **$1.6 billion** in total debt, planning a significant debt repayment of **$223 million** in July 2025 and continuing shareholder returns with a quarterly dividend of **$0.08269 per share** - At the end of Q2 2025, total cash and short-term investments stood at **$2.0 billion**, with total debt at **$1.6 billion**[4](index=4&type=chunk) - The company will repay **$223 million** in debt in July 2025[4](index=4&type=chunk) - A quarterly dividend of **$0.08269 per share** was paid on June 25, 2025, with future dividends subject to Board approval[4](index=4&type=chunk) [Third Quarter 2025 Business Outlook](index=1&type=section&id=Third%20Quarter%202025%20Business%20Outlook) For Q3 2025, Amkor projects strong sequential growth with net sales expected between **$1.875 billion** and **$1.975 billion**, anticipating a gross margin of **13.0% to 14.5%** and net income in the range of **$85 million to $120 million**, or **$0.34 to $0.48 per diluted share**, with full-year 2025 capital expenditures forecasted at approximately **$850 million** Third Quarter 2025 Guidance | Metric | Guidance Range | | :--- | :--- | | Net sales | $1.875 billion to $1.975 billion | | Gross margin | 13.0% to 14.5% | | Net income | $85 million to $120 million | | Diluted EPS | $0.34 to $0.48 | - Full year 2025 capital expenditures are projected to be approximately **$850 million**[6](index=6&type=chunk) [Operational Performance Analysis](index=3&type=section&id=Operational%20Performance%20Analysis) In Q2 2025, Advanced products drove sales with **$1.228 billion**, while Mainstream products contributed **$283 million**, with the Communications end market remaining the largest segment at **40% of sales**, though this represents a decrease from **48%** in the prior year, and the top ten customers accounted for **72%** of net sales, indicating continued customer concentration, while gross margin stood at **12.0%**, down from **14.5%** YoY, influenced by changes in the cost structure Net Sales by Product Type (in millions) | Product Type | Q2 2025 | Q1 2025 | Q2 2024 | | :--- | :--- | :--- | :--- | | Advanced products | $1,228 | $1,064 | $1,180 | | Mainstream products | $283 | $258 | $281 | | **Total net sales** | **$1,511** | **$1,322** | **$1,461** | End Market Distribution (% of Net Sales) | End Market | Q2 2025 | Q1 2025 | Q2 2024 | | :--- | :--- | :--- | :--- | | Communications | 40% | 40% | 48% | | Computing | 22% | 22% | 20% | | Automotive, industrial & other | 20% | 21% | 20% | | Consumer | 18% | 17% | 12% | - The top ten customers represented **72%** of net sales in Q2 2025, consistent with Q2 2024 and slightly up from **71%** in Q1 2025[10](index=10&type=chunk) [Detailed Financial Statements](index=4&type=section&id=Detailed%20Financial%20Statements) This section presents Amkor's reconciled non-GAAP measures, consolidated income statements, balance sheets, and cash flow statements [Non-GAAP Financial Measure Reconciliation](index=4&type=section&id=Non-GAAP%20Financial%20Measure%20Reconciliation) Amkor provides a reconciliation for the non-GAAP measure EBITDA, defined as net income before interest, taxes, and depreciation/amortization, which management uses to assess financial operating results and the ability to service debt, with Q2 2025 EBITDA at **$259 million**, reconciled from a net income of **$55 million** - The company uses EBITDA, a non-GAAP measure, to provide additional information for assessing financial operating results, evaluating operating performance, and the ability to service debt, fund capital expenditures, and pay dividends[13](index=13&type=chunk) EBITDA Reconciliation (in millions) | | Q2 2025 | Q1 2025 | Q2 2024 | | :--- | :--- | :--- | :--- | | Net income | $55 | $22 | $67 | | Plus: Interest expense | $17 | $17 | $16 | | Plus: Income tax expense | $28 | $4 | $14 | | Plus: Depreciation & amortization | $159 | $154 | $150 | | **EBITDA** | **$259** | **$197** | **$247** | [Consolidated Statements of Income](index=5&type=section&id=Consolidated%20Statements%20of%20Income) For the three months ended June 30, 2025, Amkor's net sales increased to **$1.51 billion** from **$1.46 billion** year-over-year, but higher cost of sales led to a lower gross profit of **$181.9 million** compared to **$212.4 million** in Q2 2024, consequently decreasing net income attributable to Amkor to **$54.4 million** from **$66.9 million** in the prior-year quarter Consolidated Income Statement Highlights (in millions) | | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | | :--- | :--- | :--- | | Net sales | $1,511.4 | $1,461.5 | | Gross profit | $181.9 | $212.4 | | Operating income | $92.0 | $81.5 | | Net income attributable to Amkor | $54.4 | $66.9 | | Diluted EPS | $0.22 | $0.27 | [Consolidated Balance Sheets](index=6&type=section&id=Consolidated%20Balance%20Sheets) As of June 30, 2025, Amkor's total assets increased to **$7.71 billion** from **$6.94 billion** at the end of 2024, primarily due to higher cash and property, plant, and equipment, while total liabilities also rose to **$3.47 billion** from **$2.76 billion**, driven by increases in long-term debt and capital expenditures payable, with total stockholders' equity seeing a modest increase to **$4.20 billion** Balance Sheet Highlights (in millions) | | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Total current assets** | **$3,624.6** | **$3,073.5** | | Property, plant and equipment, net | $3,802.0 | $3,576.1 | | **Total assets** | **$7,705.6** | **$6,944.3** | | **Total current liabilities** | **$1,915.7** | **$1,455.3** | | Long-term debt | $1,198.2 | $923.4 | | **Total liabilities** | **$3,473.6** | **$2,761.2** | | **Total Amkor stockholders' equity** | **$4,197.4** | **$4,149.5** | [Consolidated Statements of Cash Flows](index=7&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) For the first six months of 2025, net cash from operating activities was **$282.6 million**, a decrease from **$387.1 million** in the same period of 2024, with **$205.8 million** used in investing activities mainly for capital expenditures, and a significant inflow of **$308.2 million** from financing activities, primarily new long-term debt, resulting in a net cash increase of **$393.8 million** and boosting the end-of-period cash balance to **$1.53 billion** Cash Flow Summary (in millions) | | For the Six Months Ended June 30, 2025 | For the Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $282.6 | $387.1 | | Net cash used in investing activities | ($205.8) | ($275.1) | | Net cash provided by (used in) financing activities | $308.2 | ($138.5) | | Net increase (decrease) in cash | $393.8 | ($40.2) | | Cash, cash equivalents and restricted cash, end of period | $1,528.1 | $1,080.4 | [Forward-Looking Statements and Risk Factors](index=8&type=section&id=Forward-Looking%20Statements%20and%20Risk%20Factors) This section outlines the disclaimer for forward-looking statements and details various risks that could impact the company's business and financial performance [Forward-Looking Statement Disclaimer](index=8&type=section&id=Forward-Looking%20Statement%20Disclaimer) The report includes a disclaimer for its forward-looking statements, cautioning investors about reliance on projections and outlining numerous significant risks that could materially affect business and financial results, including the cyclical nature of the semiconductor industry, competition, customer concentration, high fixed costs, international operational risks, substantial indebtedness, and the ability to protect proprietary technology - Key business risks include dependence on the volatile semiconductor industry, competition, high fixed costs requiring high capacity utilization, and lack of long-term customer commitments[23](index=23&type=chunk) - The company faces risks from customer concentration, particularly in the mobile communications and automotive markets, and dependence on international operations which are subject to trade restrictions and regional conflicts[23](index=23&type=chunk) - Financial risks include managing substantial indebtedness, restrictive covenants, interest rate fluctuations, and potential changes in tax laws[23](index=23&type=chunk)[25](index=25&type=chunk) - Other notable risks involve the ability to develop and protect new technology, maintain IT system security, attract and retain qualified personnel, and potential environmental liabilities[23](index=23&type=chunk)[25](index=25&type=chunk)

Company Performance - Amkor Technology (AMKR) closed at $21.51, reflecting a -2% change from the previous day, underperforming the S&P 500 which gained 0.06% [1] - Prior to the recent trading session, Amkor's shares had increased by 8.34%, which was lower than the Computer and Technology sector's gain of 9.6% but higher than the S&P 500's gain of 5.88% [1] Upcoming Earnings - Amkor Technology is set to disclose its earnings on July 28, 2025, with projected earnings of $0.16 per share, indicating a year-over-year decline of 40.74% [2] - The Zacks Consensus Estimate for revenue is projected at $1.42 billion, down 2.51% from the previous year [2] Annual Estimates - For the annual period, the Zacks Consensus Estimates predict earnings of $1.18 per share and revenue of $6.11 billion, reflecting declines of -17.48% and -3.24% respectively from the last year [3] - Recent changes to analyst estimates for Amkor Technology suggest evolving short-term business trends, with positive revisions indicating a favorable business outlook [3] Valuation Metrics - Amkor Technology currently has a Forward P/E ratio of 18.63, which is a discount compared to the industry average Forward P/E of 27.9 [6] - The Electronics - Semiconductors industry, part of the Computer and Technology sector, holds a Zacks Industry Rank of 58, placing it in the top 24% of over 250 industries [6] Zacks Rank System - The Zacks Rank system, which ranges from 1 (Strong Buy) to 5 (Strong Sell), has shown a track record of outperformance, with 1 stocks returning an average of +25% annually since 1988 [5] - Amkor Technology currently holds a Zacks Rank of 3 (Hold), with no changes in the Zacks Consensus EPS estimate over the last 30 days [5]

Core Viewpoint - Amkor Technology's stock has experienced a recent decline, but it has shown significant growth over the past month compared to the broader market and its sector [1] Financial Performance - Amkor Technology is expected to report an EPS of $0.16, which is a decrease of 40.74% from the same quarter last year [2] - The consensus estimate for revenue is projected at $1.42 billion, reflecting a 2.51% decline from the equivalent quarter last year [2] - For the entire fiscal year, earnings are predicted to be $1.18 per share and revenue at $6.11 billion, indicating changes of -17.48% and -3.24% respectively from the previous year [3] Analyst Estimates and Market Sentiment - Recent changes to analyst estimates for Amkor Technology are crucial as they indicate near-term business trends, with positive revisions being a good sign for the business outlook [3] - The Zacks Rank system, which evaluates estimate changes, currently ranks Amkor Technology at 3 (Hold) [5] Valuation Metrics - Amkor Technology is trading at a Forward P/E ratio of 18.87, which is lower than the industry average Forward P/E of 28.26 [6] - The Electronics - Semiconductors industry, to which Amkor belongs, ranks in the bottom 43% of all industries according to the Zacks Industry Rank [6][7]

Company Performance - Amkor Technology (AMKR) closed at $21.48, reflecting a +2.33% increase from the previous day, outperforming the S&P 500's daily loss of 0.11% [1] - The stock has risen by 15.9% over the past month, surpassing the Computer and Technology sector's gain of 8.76% and the S&P 500's gain of 5.17% [1] Upcoming Earnings - The upcoming EPS for Amkor Technology is projected at $0.16, indicating a 40.74% decline compared to the same quarter last year [2] - The Zacks Consensus Estimate for revenue is $1.42 billion, down 2.51% from the previous year [2] Annual Forecast - For the entire year, the Zacks Consensus Estimates forecast earnings of $1.18 per share and revenue of $6.11 billion, reflecting changes of -17.48% and -3.24% respectively compared to the previous year [3] Analyst Estimates - Recent changes to analyst estimates for Amkor Technology are important as they indicate shifts in near-term business trends, with positive changes suggesting analyst optimism [3][4] Valuation Metrics - Amkor Technology is currently trading at a Forward P/E ratio of 17.82, which is a discount compared to its industry's Forward P/E of 27.71 [6] - The Electronics - Semiconductors industry, part of the Computer and Technology sector, has a Zacks Industry Rank of 90, placing it in the top 37% of over 250 industries [6]

Core Viewpoint - The demand for advanced packaging continues to grow, driven primarily by AI-related applications and high-performance computing [3][30]. Group 1: Advanced Packaging Demand - The advanced packaging market is expected to grow from $39 billion in 2023 to $80 billion by 2029, with a compound annual growth rate (CAGR) of 12.7% [12]. - The 2.5D/3D packaging segment is projected to grow at a remarkable rate of 20.9% over the next five years, becoming a key driver for overall market growth [12]. - Advanced packaging shipments are anticipated to rise from 70.9 billion units in 2023 to 97.6 billion units by 2029, with a CAGR of 5.5% [15]. Group 2: Technology and Equipment - Four main advanced packaging technologies—FC, WLP, 2.5D, and 3D—are facilitating the evolution of packaging technology [5][7]. - The global advanced packaging equipment market is projected to reach $3.1 billion in 2024, marking a historical high [5]. - The demand for etching, thin film deposition, and plating equipment is expected to increase rapidly due to advancements in packaging technology [5]. Group 3: Market Dynamics - The semiconductor industry is experiencing a downturn in 2023, impacting the advanced packaging market, which saw a year-on-year decline of 3.5% [12]. - The recovery in specific end markets, along with the continuous application of advanced packaging technology, is expected to sustain healthy growth in the coming years [15]. - The integration of AI applications in various sectors, including automotive and consumer electronics, is driving the demand for advanced packaging solutions [30]. Group 4: Investment Opportunities - Companies such as ASMPT, North Huachuang, and Zhongwei are highlighted as key players benefiting from the local supply chain advantages in the advanced packaging sector [5]. - Significant investments in packaging projects are underway, with total planned investments amounting to approximately $100 billion [29]. - The ongoing demand for advanced packaging solutions is expected to lead to sustained revenue growth for companies involved in this sector [30].

Company Overview - Amkor Technology is the largest OSAT (Outsourced Semiconductor Assembly and Test) company headquartered in the U S, with over 55 years of experience [5] - The company plans to break ground on a U S facility in 2025 [5] - Amkor's advanced packaging revenue CAGR (2019-2024) is 16% [5] - In 2024, advanced packaging accounted for 82% of Amkor's revenue [5] - Amkor's 2024 revenue was $6 3 billion, with capital expenditures of $744 million [5] Market and Strategy - The semiconductor market is projected to reach $1 trillion by 2030 [8] - Amkor focuses on industry megatrends such as 5G communications, HPC (High Performance Computing) and AI, automotive electronics, and IoT devices [18] - The company leverages advanced packaging leadership to optimize power, performance, and area [19] - Amkor has a broad geographic footprint with 13 million square feet (1 2M sqm) of manufacturing space [21] Financial Performance - Amkor expects 2025 capital expenditures to be around $850 million [42] - In 2024, Amkor's revenue was $6 318 billion, gross profit was $933 million, and operating income was $438 million [44, 45, 46] - The company's EPS (Earnings Per Share) in 2024 was $1 43 [47] - Amkor's free cash flow in 2024 was $359 million [51]

Group 1 - Amkor Technology (AMKR) closed at $20.45, with a +2.82% increase from the previous day, outperforming the S&P 500 which gained 0.94% [1] - Over the past month, Amkor's shares have increased by 0.81%, while the Computer and Technology sector rose by 3.9% and the S&P 500 by 1.67% [1] Group 2 - Amkor Technology is expected to report an EPS of $0.16, indicating a 40.74% decrease from the same quarter last year, with projected revenue of $1.42 billion, down 2.51% year-over-year [2] - For the annual period, earnings are anticipated to be $1.18 per share and revenue at $6.11 billion, reflecting declines of -17.48% and -3.24% respectively from the previous year [3] Group 3 - Recent analyst estimate revisions for Amkor Technology suggest a positive outlook, as these changes are often indicative of near-term business trends [3] - The Zacks Rank system, which evaluates estimate changes, currently rates Amkor Technology as 5 (Strong Sell), with a stagnant consensus EPS projection over the past 30 days [5] Group 4 - Amkor Technology has a Forward P/E ratio of 16.89, which is lower than the industry average Forward P/E of 24.1, indicating a valuation discount [6] - The Electronics - Semiconductors industry, part of the Computer and Technology sector, holds a Zacks Industry Rank of 84, placing it in the top 35% of over 250 industries [6]

如果您希望可以时常见面，欢迎标星收藏哦~ 来源：内容编译自 theedgemalaysia 。 随着地缘政治紧张局势加剧以及全球半导体供应链发生重大调整，马来西亚在不断升级的中美科 技冷战中保持中立立场变得越来越困难。 自美国前总统乔·拜登于 2022 年 8 月签署《芯片与科学法案》以来，华盛顿推出了大量激励措 施，包括先进制造业投资信贷（第 48D 条）和制造业补助激励措施，旨在将芯片生产转移回国 内。 这些举措引发了半导体供应链投资浪潮，主要参与者包括英特尔公司、台积电、美光科技公司和安 靠科技公司。过去三年，这些投资为美国 28 个州宣布的 100 多个项目投资超过 5400 亿美元。 据美国半导体行业协会（SIA）估计，这些项目将创造超过50万个美国就业岗位，涵盖芯片制造、 建设和支持服务。迄今为止，美国商务部已批准32家公司48个项目的325.4亿美元拨款和高达58.5 亿美元的贷款。 最大的受益者之一是英特尔，该公司去年 9 月获得了高达 30 亿美元的直接资金，用于"支持微电 子制造"和"确保获得国内先进半导体供应链，保障国家安全"。 图注：Ta iwa n即中国台湾；Ch i n a即中国大 ...

Core Viewpoint - The article discusses the challenges faced by semiconductor companies in the U.S. due to local opposition and regulatory delays, impacting the construction and operation of new facilities funded by the CHIPS Act. Group 1: Company-Specific Challenges - Amkor's $2 billion chip packaging plant in Peoria, Arizona, faces local resistance due to concerns over water resources and traffic congestion, with residents threatening legal action [2] - Micron's $100 billion DRAM production facility in Clay, New York, has encountered delays in environmental assessments, pushing back the construction timeline originally set for 2024 [3][4] - Micron's facility is expected to be the largest semiconductor plant in the U.S., with a total cleanroom area of 600,000 square feet, but delays could result in significant financial losses of $5 million per day [3] Group 2: Industry Context and Geopolitical Factors - The semiconductor trade, valued at $600 billion, has become a focal point in global discussions on security and economic dominance, with the supply chain being particularly vulnerable due to geopolitical tensions [5] - The U.S. semiconductor strategy has shifted under different administrations, with Biden focusing on investment-driven policies and Trump emphasizing tariffs, leading to contrasting impacts on the industry [7][8] - Chris Miller, a historian and expert on semiconductor trade, highlights the importance of the CHIPS Act in mitigating risks associated with reliance on Taiwanese chip manufacturing, while noting that China's advancements in manufacturing pose ongoing challenges [6][7] Group 3: Future Outlook - The success of Micron's plans to produce 40% of DRAM in the U.S. by the mid-2030s is uncertain due to current project delays [4] - The article emphasizes the need for careful consideration of export controls on advanced semiconductors, as these are critical to maintaining U.S. technological leadership [10]

Core Viewpoint - The article discusses the delays and challenges faced by semiconductor manufacturing projects in the U.S. due to local opposition and regulatory hurdles, particularly highlighting the impact of the CHIPS Act and geopolitical tensions in the semiconductor industry [1][5][6]. Group 1: Project Delays and Local Opposition - Amkor's $2 billion advanced packaging plant in Peoria, Arizona, faces local resistance due to concerns over water resources and traffic congestion, with residents threatening legal action [2]. - Micron's $100 billion DRAM production facility in Clay, New York, has encountered delays in environmental assessments and public feedback, pushing back the construction timeline originally set for 2024 [3][4]. - The delays in Micron's project could result in a loss of $5 million per day, affecting its ability to meet production goals for DRAM in the late 2020s [3]. Group 2: Importance of Semiconductor Manufacturing - The advanced packaging plant by Amkor is crucial for the local semiconductor supply chain, which includes TSMC's Fab 21 and multiple suppliers, and is expected to be one of the largest in the world [2]. - Micron's facility is intended to be its largest manufacturing base and a key part of its strategy to increase U.S. production of DRAM, aiming for 40% of its output to be produced domestically by the mid-2030s [4]. Group 3: Geopolitical Context and Industry Dynamics - The semiconductor trade, valued at $600 billion, has become a focal point in discussions about global security and economic dominance, particularly between the U.S. and China [5]. - The CHIPS Act aims to bolster U.S. semiconductor manufacturing and reduce reliance on Taiwan, which currently produces about 90% of the world's advanced semiconductors [6][7]. - The article highlights the contrasting strategies of the Biden and Trump administrations regarding semiconductor policy, with Biden focusing on investment incentives and Trump emphasizing tariffs [7][8].