AMKRAmkor Technology, Inc., a leading provider of semiconductor packaging and test services, has released its 2025 Form 10-K report. The report details the company’s financial performance, business operations, strategic initiatives, and the challenges it faces in the volatile semiconductor industry. This comprehensive summary provides insights into Amkor’s achievements and future plans as it continues to navigate a dynamic market environment.
Financial Highlights
- Net Sales: $6,707.981 million, increased by 6.2% from 2024 primarily due to higher sales across all end markets.
- Gross Profit: $938.599 million, with a gross margin of 14.0%, decreased from 14.8% in 2024 due to increased overhead and employee compensation costs.
- Operating Income: $467.385 million, with an operating income margin of 7.0%, slightly up from 6.9% in 2024, primarily due to the net amount recognized for a cash receipt subject to bankruptcy proceedings.
- Net Income: $373.895 million, consistent with the previous year, reflecting stable performance despite increased costs.
- Net Income Attributable to Amkor Per Common Share – Basic: $1.51, showing a slight increase from $1.44 in 2024.
- Net Income Attributable to Amkor Per Common Share – Diluted: $1.50, up from $1.43 in 2024, indicating improved earnings per share.
Business Highlights
- Revenue Segments: Amkor’s revenue is divided into Advanced Products and Mainstream Products. Advanced Products, which include flip-chip, memory, and wafer-level packages, accounted for 82.8% of net sales in 2025. Mainstream Products, which use wirebond interconnect technology, accounted for 17.2% of net sales.
- Geographical Performance: Amkor’s manufacturing footprint spans key regions in Asia and Europe, with a new facility under construction in Arizona, USA, to enhance participation in U.S. semiconductor initiatives. The Vietnam facility, which opened in 2024, is scaling production to increase capacity and operational flexibility in Asia.
- New Production Launches: Construction of a new facility in Arizona began in the second half of 2025, aimed at strengthening Amkor’s ability to serve customers seeking to regionalize their supply chains. The Vietnam facility, opened in 2024, is in the early stages of high-volume manufacturing.
- Sales Units: The company provides a comprehensive range of packaging and test services, including wafer bump, wafer probe, wafer back-grind, packaging, burn-in, system level and final test, and drop shipment services. These services are used by integrated device manufacturers, fabless semiconductor companies, OEMs, and contract foundries.
- New Product Launches: Amkor collaborates with leading semiconductor companies to co-develop innovative solutions such as wafer-level fan-out, Silicon Photonics, Co-Packaged Optics, and high-power modules incorporating gallium nitride and silicon carbide devices.
- Future Outlook: Amkor plans to continue investing in advanced packaging and test technologies, expanding its global manufacturing footprint, and deepening strategic partnerships with leading semiconductor companies. The company expects its 2026 capital expenditures to be approximately $2.5 billion to $3.0 billion, primarily due to the construction of the Arizona Facility.
Strategic Initiatives
- Strategic Initiatives: Amkor Technology, Inc. is expanding its manufacturing footprint with the construction of a new facility in Arizona, which began in the second half of 2025. This strategic investment aims to strengthen the company’s ability to serve customers seeking to regionalize their supply chains and enhance participation in U.S. semiconductor initiatives. Additionally, Amkor is scaling production in its Vietnam facility, which opened in 2024, to increase capacity and operational flexibility in Asia. The company is also focusing on advanced packaging and test technologies to support key markets such as HPC, AI, automotive, IoT, and mobile communications.
- Capital Management: In 2025, Amkor’s capital expenditures totaled $904.6 million, primarily focused on investments in advanced packaging and test equipment and the Arizona Facility. The company entered into a $1.0 billion senior secured revolving credit facility in May 2025, which includes an uncommitted optional accordion of up to $200 million. In September 2025, Amkor issued $500 million of 5.875% Senior Notes due October 2033, using the proceeds for the redemption of outstanding 2027 Notes and general corporate purposes. The company also paid total cash dividends of $81.9 million in 2025 and announced a 1% increase in its quarterly dividend rate.
- Future Outlook: Amkor expects its 2026 capital expenditures to be approximately $2.5 billion to $3.0 billion, primarily due to the construction of the Arizona Facility. The company plans to continue making prudent investments and closely managing capacity expansion and cost control in response to market conditions. Amkor is also eligible to receive an investment tax credit on qualified investments in U.S. semiconductor manufacturing under the CHIPS Act, with the rate increased to 35% for qualified property placed in service after 2025. The company intends to return 40% to 50% of cumulative free cash flow over time through dividends and stock repurchases, subject to strategic investments and other capital allocation priorities.
Challenges and Risks
- Market Risks: The semiconductor industry is cyclical, and downturns can lead to reduced demand, excess capacity, and lower sales. The company is also vulnerable to fluctuations in raw material costs and supply chain disruptions, which can impact its operations and financial performance.
- Operational Risks: The company faces competition from established competitors and internal capabilities of IDMs, as well as from foundries and contract manufacturers. Amkor’s ability to maintain high-capacity utilization rates is critical due to its high fixed costs. The lack of contractually committed customer demand adds to the uncertainty in forecasting future sales.
- Regulatory Risks: Amkor’s international operations expose it to risks related to trade restrictions, regional conflicts, and compliance with environmental and safety regulations. The company must also navigate complex tax laws and potential changes in tax regulations that could impact its financial condition.
- Cybersecurity and Intellectual Property Risks: The company must protect its proprietary technology and operate without infringing on others’ rights. Cybersecurity threats pose a risk to its operations and reputation.
- Indebtedness Risks: Amkor’s substantial debt could limit its financial flexibility and increase its vulnerability to economic downturns. Rising interest rates could further impact its financial condition.
- Human Capital Risks: Attracting and retaining qualified personnel is crucial for Amkor’s operations, and labor shortages could increase costs.
- Management Strategies: Management acknowledges the challenges posed by the cyclical nature of the semiconductor industry and the need for strategic investments in technology and capacity to remain competitive. The company is focused on expanding its geographic footprint and enhancing strategic partnerships to mitigate risks and capture growth opportunities in high-value markets such as automotive, IoT, and mobile communications.
- Market Risk Management: Amkor is exposed to market risks, including fluctuations in interest rates and foreign currency exchange rates, which could adversely affect its financial results. The company actively monitors these risks and employs strategies to mitigate their impact, such as using financial instruments to hedge against currency and interest rate fluctuations.
SEC Filing: AMKOR TECHNOLOGY, INC. [ AMKR ] – 10-K – Feb. 20, 2026
