Amkor's Q3 Sales Up 6.7%, Net Income Rises Amid Asset Expansion

TL;DR

**Amkor is investing heavily in growth, and while nine-month profits dipped, Q3's sales and net income rebound, coupled with CHIPS Act benefits, make it a buy for long-term semiconductor plays.**

AI Summary

Amkor Technology, Inc. reported a robust increase in net sales for the three months ended September 30, 2025, reaching $1,986,968 thousand, up from $1,861,589 thousand in the prior year, representing a 6.7% increase. Net income attributable to Amkor also saw a positive trend, rising to $126,589 thousand for the quarter, compared to $122,569 thousand in the same period of 2024, a 3.3% improvement. However, for the nine months ended September 30, 2025, net income attributable to Amkor decreased to $202,134 thousand from $248,363 thousand in 2024, a 18.6% decline, despite net sales increasing to $4,819,935 thousand from $4,688,574 thousand. The company's total assets grew significantly to $8,187,482 thousand as of September 30, 2025, from $6,944,328 thousand at December 31, 2024. This growth was largely driven by an increase in cash and cash equivalents to $1,495,656 thousand and property, plant and equipment, net, to $3,833,008 thousand. A key strategic development is the planned exchange of land for the Arizona Facility, involving 56 acres for 104 acres, expected to close in Q4 2025, and the enactment of the One Big Beautiful Bill Act (OBBBA) increasing the CHIPS Act investment tax credit to 35% for qualified property after 2025, which will benefit future capital expenditures.

Why It Matters

Amkor's increased net sales and asset base signal strong operational momentum in the competitive semiconductor packaging and test industry, which is crucial for investors looking for growth. The significant increase in property, plant, and equipment, coupled with the strategic land exchange for the Arizona Facility, indicates aggressive expansion and a commitment to future capacity, potentially impacting market share against rivals like ASE Technology Holding Co., Ltd. and Siliconware Precision Industries Co., Ltd. The enhanced CHIPS Act tax credit from the OBBBA could significantly boost Amkor's profitability and investment efficiency, making its stock more attractive. For employees, this expansion suggests job creation and stability, while customers could benefit from increased capacity and advanced packaging solutions.

Risk Assessment

Risk Level: medium — The company's total liabilities increased substantially to $3,844,538 thousand as of September 30, 2025, from $2,761,163 thousand at December 31, 2024, a 39.2% rise. This includes a significant jump in short-term borrowings and current portion of long-term debt to $547,447 thousand from $236,029 thousand, and long-term debt to $1,264,501 thousand from $923,431 thousand. This increased leverage, alongside a decline in nine-month net income, presents a medium risk, as higher debt servicing costs could impact future profitability.

Analyst Insight

Investors should monitor Amkor's debt management and capital expenditure efficiency closely, especially with the new Arizona Facility and Vietnam Facility projects. The increased CHIPS Act tax credit is a positive, but its impact on net income needs to be realized. Consider holding AMKR for its long-term growth potential in advanced packaging, but be aware of the increased leverage.

Financial Highlights

debt To Equity

1.03

revenue

$4.82B

operating Margin

5.9%

total Assets

$8.19B

total Debt

$3.84B

net Income

$202.1M

eps

$0.81

gross Margin

13.0%

cash Position

$1.50B

revenue Growth

+2.8%

Revenue Breakdown

Key Numbers

• $1.99B — Net Sales (Increased by 6.7% for the three months ended September 30, 2025, compared to $1.86B in 2024.)
• $126.6M — Net Income Attributable to Amkor (Increased by 3.3% for the three months ended September 30, 2025, compared to $122.6M in 2024.)
• $4.82B — Net Sales (Nine Months) (Increased from $4.69B in 2024 for the nine months ended September 30, 2025.)
• $202.1M — Net Income Attributable to Amkor (Nine Months) (Decreased by 18.6% from $248.4M in 2024 for the nine months ended September 30, 2025.)
• $8.19B — Total Assets (Increased from $6.94B at December 31, 2024, reflecting significant growth.)
• $1.50B — Cash and Cash Equivalents (Increased from $1.13B at December 31, 2024, indicating strong liquidity.)
• $3.83B — Property, Plant and Equipment, Net (Increased from $3.58B at December 31, 2024, showing capital investment.)
• $3.84B — Total Liabilities (Increased by 39.2% from $2.76B at December 31, 2024, due to increased debt.)
• 35% — CHIPS Act Investment Tax Credit (Increased from 25% by the OBBBA for qualified property after 2025.)
• 247,193,437 — Outstanding Shares (As of October 21, 2025.)

Key Players & Entities

• AMKOR TECHNOLOGY, INC. (company) — registrant
• The NASDAQ Global Select Market (regulator) — exchange where common stock is registered
• SEC (regulator) — Securities and Exchange Commission
• FASB (regulator) — Financial Accounting Standards Board
• One Big Beautiful Bill Act (regulator) — enacted legislation
• CHIPS Act (regulator) — legislation providing investment tax credits
• Bac Ninh, Vietnam (person) — location of new manufacturing facility
• Arizona, United States (person) — location of new facility
• $1,986,968 thousand (dollar_amount) — Net sales for the three months ended September 30, 2025
• $126,589 thousand (dollar_amount) — Net income attributable to Amkor for the three months ended September 30, 2025

FAQ

Risk Factors

• Global Economic and Geopolitical Instability [high — market]: The company's operations and financial results are susceptible to global economic downturns, geopolitical events, and trade disputes. These factors can impact customer demand, supply chain stability, and foreign currency exchange rates, as seen in the significant foreign currency translation adjustments impacting comprehensive income.
• Supply Chain Disruptions [high — operational]: Amkor relies on a complex global supply chain for materials and components. Disruptions due to natural disasters, pandemics, or geopolitical tensions can lead to increased costs and delays, impacting production and delivery schedules. The increase in inventories by $88.9 million to $399.9 million in nine months reflects potential supply chain management efforts or challenges.
• Increased Debt Levels [high — financial]: Total liabilities increased by 39.2% from $2.76 billion to $3.84 billion as of September 30, 2025, primarily due to increased debt. This higher leverage increases financial risk, particularly in a rising interest rate environment, as evidenced by the rise in interest expense from $47.9 million to $54.9 million for the nine-month period.
• Changes in Tax Laws and Incentives [medium — regulatory]: The company is subject to various tax laws and regulations globally. Changes in tax rates or the availability of tax credits, such as the CHIPS Act investment tax credit, can affect profitability. The planned increase in the CHIPS Act credit to 35% is beneficial, but reliance on such incentives carries inherent risk.
• Technological Obsolescence and Innovation [medium — operational]: The semiconductor packaging industry is characterized by rapid technological advancements. Failure to innovate and adapt to new technologies could lead to a loss of competitive advantage and market share. The company's investment in R&D ($130.0 million for nine months) is crucial but does not guarantee successful product development.
• Fluctuations in Customer Demand [medium — financial]: Amkor's revenue is dependent on the cyclical nature of the semiconductor industry and the demand from its key customers. A slowdown in end-user markets, such as consumer electronics or automotive, can significantly impact sales. The decrease in net income attributable to Amkor for the nine months by 18.6% to $202.1 million, despite sales growth, highlights this sensitivity.
• Environmental, Social, and Governance (ESG) Factors [low — operational]: Increasing focus on ESG matters by investors and customers can impose new compliance requirements and operational standards. Failure to meet evolving ESG expectations could impact reputation and access to capital. The land exchange for the Arizona Facility is a strategic move, but environmental considerations are paramount.
• Intellectual Property Risks [low — legal]: The company operates in a technology-intensive industry where intellectual property is critical. Infringement claims or the inability to protect its own IP could lead to significant legal costs and operational disruptions.

Industry Context

Amkor Technology operates in the highly competitive semiconductor packaging and test services industry. Key trends include the increasing complexity of semiconductor devices, demand for advanced packaging solutions (like flip chip and wafer-level packaging), and the growing importance of supply chain resilience. Major competitors include ASE Technology Holding, JCET Group, and SPIL. The industry is capital-intensive and subject to rapid technological change and cyclical customer demand.

Regulatory Implications

The company is subject to global tax regulations, trade policies, and environmental standards. The recent OBBBA, enhancing the CHIPS Act investment tax credit to 35%, presents a significant positive regulatory development for future capital investments. However, ongoing changes in international trade agreements and tax laws could introduce new risks or opportunities.

What Investors Should Do

1. Monitor Nine-Month Net Income Trend
2. Evaluate Debt Management Strategy
3. Assess Impact of CHIPS Act Enhancement
4. Analyze Working Capital Changes
5. Track Advanced vs. Mainstream Product Mix

Key Dates

• 2025-09-30: Quarterly Financial Reporting — Reported net sales of $1.99B and net income of $126.6M for the three months ended, showing sequential growth.
• 2025-09-30: Nine-Month Financial Reporting — Reported net sales of $4.82B but a decline in net income to $202.1M, indicating margin pressure or increased expenses over the period.
• 2025-09-30: Balance Sheet Date — Total assets grew to $8.19B, with significant increases in cash and PP&E, while total liabilities rose to $3.84B.
• 2025-Q4: Planned Land Exchange Closing — Exchange of 56 acres for 104 acres related to the Arizona Facility, a strategic move for facility expansion or optimization.
• 2025-12-31: End of Fiscal Year — Full-year financial results will provide a comprehensive view of performance, including the impact of the OBBBA.
• Post-2025: OBBBA Implementation — The increase in the CHIPS Act investment tax credit to 35% will benefit future capital expenditures, potentially improving profitability and cash flow.

Glossary

Nonmonetary Asset Exchange

An exchange of assets that does not involve cash, such as trading one piece of property for another. It is typically recorded at the carrying value of the asset relinquished. (Relevant to the planned exchange of land for the Arizona Facility, indicating no immediate gain or loss recognition.)

CHIPS Act Investment Tax Credit

A tax credit designed to incentivize investment in semiconductor manufacturing and related activities within the United States. (The increase to 35% under the OBBBA is a significant factor for Amkor's future capital investments and profitability.)

Other comprehensive income (loss)

Unrealized gains or losses on certain investments, foreign currency translation adjustments, and pension plan adjustments that are not included in net income but affect total equity. (Fluctuations in foreign currency translation and investment adjustments impacted Amkor's comprehensive income, particularly in the three-month period.)

Non-controlling interests

The portion of equity in a subsidiary that is not attributable to the parent company. It represents the ownership stake of outside shareholders. (A small but consistent deduction from net income and comprehensive income, indicating partial ownership of certain subsidiaries.)

Contract Liabilities

Obligations to transfer goods or services to a customer for which the company has received consideration from the customer. Also known as deferred revenue. (A decrease in contract liabilities from $95.6 million to $83.1 million suggests a reduction in future obligations or completion of related services.)

Unbilled Receivables

Revenue that has been earned but not yet billed to the customer, often due to the nature of long-term contracts or specific billing cycles. (An increase in unbilled receivables from $210.1 million to $332.4 million indicates a growing amount of earned revenue awaiting invoicing.)

CODM (Chief Operating Decision Maker)

The individual or group responsible for allocating resources to and assessing the performance of operating segments within a company. (The provided segment data is regularly provided to the CODM, indicating its importance in internal performance evaluation.)

OBBBA (One Big Beautiful Bill Act)

A hypothetical legislative act mentioned in the context that increases the CHIPS Act investment tax credit. (This act is significant as it enhances the tax benefits for Amkor's future capital expenditures.)

Year-Over-Year Comparison

Compared to the prior year's comparable periods, Amkor Technology, Inc. demonstrated solid top-line growth, with net sales increasing by 6.7% for the three months and 2.8% for the nine months ended September 30, 2025. However, profitability trends diverged: net income for the three-month period saw a modest 3.3% increase, while the nine-month net income experienced a significant 18.6% decline. This divergence suggests increased cost pressures or operational inefficiencies impacting the longer-term view. Total assets have grown substantially, driven by higher cash and PP&E, but this is mirrored by a substantial increase in total liabilities, indicating a more leveraged balance sheet than in the previous year.

Key Financial Figures

• $0.001 — ange on Which Registered Common Stock, $0.001 par value AMKR The NASDAQ Global Select

Filing Documents

• amkr-20250930.htm (10-Q) — 1625KB
• amkr9302025ex311.htm (EX-31.1) — 10KB
• amkr9302025ex312.htm (EX-31.2) — 10KB
• amkr9302025ex32.htm (EX-32) — 8KB
• 0001047127-25-000190.txt ( ) — 8186KB
• amkr-20250930.xsd (EX-101.SCH) — 46KB
• amkr-20250930_cal.xml (EX-101.CAL) — 97KB
• amkr-20250930_def.xml (EX-101.DEF) — 207KB
• amkr-20250930_lab.xml (EX-101.LAB) — 627KB
• amkr-20250930_pre.xml (EX-101.PRE) — 415KB
• amkr-20250930_htm.xml (XML) — 1339KB

Financial Information

PART I. Financial Information Item 1.

Financial Statements (unaudited)

Financial Statements (unaudited) 3 Consolidated Statements of Income - Three and Nine Months Ended September 30, 2025 and 2024 3 Consolidated Statements of Comprehensive Income - Three and Nine Months Ended September 30, 2025 and 2024 4 Consolidated Balance Sheets - September 30, 2025 and December 31, 2024 5 Consolidated Statements of Stockholders' Equity - Three and Nine Months Ended September 30, 2025 and 2024 6 Condensed Consolidated Statements of Cash Flows - Nine Months Ended September 30, 2025 and 2024 8

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements 9 Item 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 25 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 33 Item 4.

Controls and Procedures

Controls and Procedures 34

Other Information

PART II. Other Information Item 1.

Legal Proceedings

Legal Proceedings 36 Item 1A.

Risk Factors

Risk Factors 36 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 54 Item 3. Defaults Upon Senior Securities 54 Item 4. Mine Safety Disclosures 54 Item 5. Other Information 54 Item 6. Exhibits 55

Forward-Looking Statements

Forward-Looking Statements This Quarterly Report on Form 10-Q (this "Form 10-Q") contains forward-looking statements within the meaning of the federal securities laws, including, but not limited to, statements regarding (1) the amount, timing and focus of our expected capital investments in 2025, (2) our ability to fund our operating activities and financial requirements for the next twelve months, (3) the effect of changes in revenue levels and capacity utilization on our gross margin, (4) the impact of natural disasters and other calamities, health conditions or pandemics, political instability, hostilities or other disruptions on our operations, financial results and supply chain, (5) the focus of our research and development activities, (6) the anticipated impact of tax law changes in the jurisdictions in which we operate, (7) the grant and expiration of conditional reduced tax rates in jurisdictions in which we operate and expectations regarding our effective tax rate and the availability of tax incentives, (8) the creation or release of valuation allowances related to taxes in the future, (9) our repurchase or repayment of outstanding debt, (10) payment of dividends, (11) compliance with restrictive covenants in the indentures and agreements governing our current and future indebtedness, (12) liability for unrecognized tax benefits and the potential impact of our unrecognized tax benefits on our effective tax rate, (13) the effect of foreign currency exchange rate exposure on our financial results, (14) the volatility of the trading price of our common stock, (15) changes to our internal controls related to integration of acquired operations and implementation of an enterprise resource planning system, (16) our efforts to enlarge our customer base in certain geographic areas and markets, (17) demand for advanced packages and our technology leadership and potential growth in our end markets, (18) projects to install or integrate new information technology sys

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION

Financial Statements

Item 1. Financial Statements AMKOR TECHNOLOGY, INC. CONSOLIDATED STATEMENTS OF INCOME (Unaudited) For the Three Months Ended September 30, For the Nine Months Ended September 30, 2025 2024 2025 2024 (In thousands, except per share data) Net sales $ 1,986,968 $ 1,861,589 $ 4,819,935 $ 4,688,574 Cost of sales 1,702,478 1,589,105 4,195,965 4,002,072 Gross profit 284,490 272,484 623,970 686,502 Selling, general and administrative 83,211 80,753 211,541 262,379 Research and development 42,352 42,364 130,012 120,103 Total operating expenses 125,563 123,117 341,553 382,482 Operating income 158,927 149,367 282,417 304,020 Interest expense 21,231 15,622 54,850 47,866 Other (income) expense, net ( 16,701 ) ( 8,130 ) ( 35,833 ) ( 39,273 ) Total other expense, net 4,530 7,492 19,017 8,593 Income before taxes 154,397 141,875 263,400 295,427 Income tax expense 27,715 19,185 59,813 45,693 Net income 126,682 122,690 203,587 249,734 Net income attributable to non-controlling interests ( 93 ) ( 121 ) ( 1,453 ) ( 1,371 ) Net income attributable to Amkor $ 126,589 $ 122,569 $ 202,134 $ 248,363 Net income attributable to Amkor per common share: Basic $ 0.51 $ 0.50 $ 0.82 $ 1.01 Diluted $ 0.51 $ 0.49 $ 0.81 $ 1.00 Shares used in computing per common share amounts: Basic 247,158 246,480 247,035 246,239 Diluted 248,302 247,922 248,054 247,798 The accompanying notes are an integral part of these statements. -3- Table of Contents AMKOR TECHNOLOGY, INC. CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) For the Three Months Ended September 30, For the Nine Months Ended September 30, 2025 2024 2025 2024 (In thousands) Net income $ 126,682 $ 122,690 $ 203,587 $ 249,734 Other comprehensive income (loss), net of tax: Adjustments to net unrealized gains (losses) on available-for-sale debt investments 482 662 1,616 143 Adjustments to unrealized components of defined benefit pension plans ( 95 ) ( 84 ) ( 2,670 ) ( 254 ) Foreign currency tra

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) 1. Interim Financial Statements Basis of Presentation. The Consolidated Financial Statements and related disclosures as of September 30, 2025, and for the three and nine months ended September 30, 2025 and 2024, contained in this Form 10-Q (the "Consolidated Financial Statements") are unaudited pursuant to the rules and regulations of the SEC. The December 31, 2024 Consolidated Balance Sheet data contained in this Form 10-Q was derived from audited financial statements but does not include all disclosures required by accounting principles generally accepted in the United States of America ("U.S. GAAP"). Certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. GAAP have been condensed or omitted pursuant to SEC rules and regulations. In our opinion, the Consolidated Financial Statements include all adjustments (consisting only of normal recurring adjustments) necessary for the fair statement of the results for the interim periods and should be read in conjunction with the financial statements included in the 2024 Form 10-K. The results of operations for the three and nine months ended September 30, 2025 are not necessarily indicative of the results to be expected for the full year ending December 31, 2025. Unless the context otherwise requires, all references to "Amkor," "we," "us" or "our" are to Amkor Technology, Inc. and its wholly and majority-owned subsidiaries. Use of Estimates. The Consolidated Financial Statements have been prepared in conformity with U.S. GAAP, using management's best estimates and judgments where appropriate. These estimates and judgments affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements. The estimates and judgments will also affect the reported amounts for certain revenues and expenses during the reporting period. Actual res

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued) (Unaudited) September 30, 2025 December 31, 2024 (In thousands) Investment tax credits recorded in: Other current assets $ 3,938 $ — Other assets 23,456 1,403 Grants receivable recorded in: Other assets 7,270 — In September 2025, we entered into an agreement to exchange approximately 56 acres of land acquired in 2024 for approximately 104 acres of land related to the Arizona Facility. The transaction is structured as a nonmonetary asset exchange with no cash consideration. The 104 acre parcel will be recorded at the carrying value of the land relinquished with no gain or loss recognized. The transaction is expected to close in the fourth quarter of 2025. Recently Issued Standards. In December 2023, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures ("ASU 2023-09"). ASU 2023-09 requires disclosure of additional income tax information, primarily related to effective tax rate reconciliation and income taxes paid. ASU 2023-09 is effective for annual periods beginning after December 15, 2024. Early adoption is permitted. Adoption of this ASU should be applied on a prospective basis, but retrospective application is permitted. We plan to adopt the new standard in the fourth quarter of 2025 using the prospective method, which will result in enhanced disclosures in our financial statements. In November 2024, the FASB issued ASU 2024-03, Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses ("ASU 2024-03"), which was subsequently amended and clarified. ASU 2024-03 requires disaggregation of key expense categories such as inventory purchases, employee compensation, depreciation and intangible asset amortization in the financial statements. ASU 2024-03 is effective for annual reporting periods beginn

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued) (Unaudited) For the Three Months Ended September 30, For the Nine Months Ended September 30, 2025 2024 2025 2024 (In thousands) Net sales $ 1,986,968 $ 1,861,589 $ 4,819,935 $ 4,688,574 Less: Materials cost of sales 1,142,159 1,088,010 2,633,927 2,586,272 Labor cost of sales 182,597 162,762 518,647 467,694 Depreciation cost of sales 149,052 136,552 433,355 398,220 Other cost of sales 228,670 201,781 610,036 549,886 Selling, general and administrative 83,211 80,753 211,541 262,379 Research and development 42,352 42,364 130,012 120,103 Interest expense 21,231 15,622 54,850 47,866 Income tax expense 27,715 19,185 59,813 45,693 Other segment items (1) ( 16,701 ) ( 8,130 ) ( 35,833 ) ( 39,273 ) Segment net income $ 126,682 $ 122,690 $ 203,587 $ 249,734 (1) Other segment items include interest income, foreign currency (gain) loss, net and other (income) expense. The following tables represent other balances included in net income or that are regularly provided to the Chief Operating Decision Maker (CODM): For the Three Months Ended September 30, For the Nine Months Ended September 30, 2025 2024 2025 2024 (In thousands) (In thousands) Interest income $ 17,109 $ 15,862 $ 46,554 $ 50,356 Depreciation and amortization expense 163,614 150,596 476,277 445,470 Capital expenditures 246,445 195,524 472,531 458,067 September 30, 2025 December 31, 2024 (In thousands) Total assets $ 8,187,482 $ 6,944,328 The following table presents our net sales by product group: For the Three Months Ended September 30, For the Nine Months Ended September 30, 2025 2024 2025 2024 (In thousands) (In thousands) Advanced products (1) $ 1,683,505 $ 1,567,604 $ 3,975,800 $ 3,817,156 Mainstream products (2) 303,463 293,985 844,135 871,418 Total net sales $ 1,986,968 $ 1,861,589 $ 4,819,935 $ 4,688,574 (1) Advanced products include flip chip, memory and wafer-level processing and related test services. (2) M

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued) (Unaudited) Net sales by end market consist of the following: For the Three Months Ended September 30, For the Nine Months Ended September 30, 2025 2024 2025 2024 Communications (smartphones,

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