Amkor Technology, Inc.

What they do

Amkor provides turnkey semiconductor packaging and test services, including wafer bump, wafer probe, wafer back-grind, package design, packaging, burn-in, system level and final test, and drop shipment services. The company serves IDMs, fabless semiconductor companies, OEMs, and contract foundries. Its portfolio spans advanced packaging, wafer-level processing, and system-in-package solutions for applications in smartphones, data centers, AI, automotive, and wearables.

Revenue drivers

• Advanced products — Generated $1,557 million in Q2 2026, comprising 82% of total net sales, driven by advanced packaging technologies like HDFO, 2.5D integration, and SiP for HPC/AI, mobile, and automotive.
• Mainstream products — Generated $341 million in Q2 2026, 18% of total net sales, consisting of traditional packaging and test services.
• End market: Computing (HPC/AI) — Record revenue in Q2 2026, driven by demand for AI and high-performance computing, advanced packaging, and networking in data centers and cloud computing.
• End market: Automotive and Industrial — Record revenue in Q2 2026, driven by increasing semiconductor content in vehicles for ADAS, electrification, and infotainment, requiring advanced and power packaging solutions.

Recent performance

In Q2 2026, Amkor reported record net sales of $1,898 million, up 26% year-over-year, with gross margin of 16.8%, operating income of $200 million, and net income of $174 million ($0.70 diluted EPS). EBITDA was $400 million. Compared to Q1 2026, net sales rose from $1,685 million, operating income doubled from $100 million, and net income increased from $83 million. The company ended the quarter with $2.5 billion in cash and short-term investments and $2.5 billion in total debt.

Strategy

Amkor focuses on profitable sales growth by leveraging technology leadership in advanced packaging, expanding its geographically diverse manufacturing footprint, and partnering with lead customers in HPC/AI, automotive, IoT, and mobile. The company is constructing a new facility in Arizona (construction began in H2 2025) to support supply chain regionalization and U.S. semiconductor initiatives, and continues to scale production at its Vietnam facility (opened in 2024). Management emphasizes strategic partnerships across the semiconductor ecosystem, advancing customer programs in AI and HPC, and expanding advanced packaging and test capacity to strengthen competitive position and increase earnings power.

Risks

• Cyclical semiconductor industry — Amkor's business is highly cyclical and correlated with global GDP and semiconductor demand, making results vulnerable to industry downturns.
• Capital intensity and utilization — Given high fixed costs, achieving satisfactory gross margins requires high-capacity utilization; investments are made in advance of firm customer commitments.
• Customer concentration — Top ten customers accounted for 66% of Q2 2026 net sales, exposing Amkor to concentration risk if key customers reduce orders.
• Geopolitical and operational disruptions — Operations span multiple countries, exposing Amkor to risks from political instability, natural disasters, pandemics, and supply chain disruptions.

Outlook

For Q3 2026, Amkor guides net sales of $1.95 billion to $2.05 billion, gross margin of 18.5% to 19.5%, and net income of $180 million to $205 million ($0.72 to $0.82 per diluted share). Full-year 2026 capital expenditures are expected to be approximately $2.5 billion to $3.0 billion. Management expects these investments to strengthen competitive position and create sustainable shareholder value.