Amkor Technology, Inc. (AMKR) | Investment Case

1. Company Snapshot

1.a. Company Description

Amkor Technology, Inc.provides outsourced semiconductor packaging and test services in the United States, Japan, Europe, the Middle East, Africa, and the rest of the Asia Pacific.It offers turnkey packaging and test services, including semiconductor wafer bump, wafer probe, wafer back-grind, package design, packaging, and test and drop shipment services.

The company also provides flip chip-scale package products for use in smartphones, tablets, and other mobile consumer electronic devices; flip-chip stacked chip-scale packages that are used to stack memory on top of digital baseband, and as applications processors in mobile devices; and flip-chip ball grid array packages for various networking, storage, computing, and consumer applications.In addition, it offers wafer-level CSP packages that are used in power management, transceivers, sensors, wireless charging, codecs, radar, and specialty silicon; wafer-level fan-out packages for use in ICs; and silicon wafer integrated fan-out technology, which replaces a laminate substrate with a thinner structure.Further, the company provides lead frame packages that are used in electronic devices for low to medium pin count analog and mixed-signal applications; substrate-based wirebond packages, which are used to connect a die to a substrate; micro-electro-mechanical systems (MEMS) packages that are miniaturized mechanical and electromechanical devices; and advanced system-in-package modules, which are used in radio frequency and front end modules, basebands, connectivity, fingerprint sensors, display and touch screen drivers, sensors and MEMS, and NAND memory and solid-state drives.

It primarily serves integrated device manufacturers, fabless semiconductor companies, original equipment manufacturers, and contract foundries.Amkor Technology, Inc.was founded in 1968 and is headquartered in Tempe, Arizona.

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1.b. Last Insights on AMKR

Breaking News: Amkor Technology Inc presented at the UBS Global Technology and AI Conference 2025. No recent earnings release was provided in the data. The company's management team likely discussed their strategy and outlook for the future. Analysts from UBS and other firms probably asked questions on various topics such as market trends and competition. A recommendation from an analyst would provide more insight. Several analysts have a hold rating on the stock. Some have mentioned that the stock has an attractive valuation. The company has been expanding its capabilities.

1.c. Company Highlights

Last Price	43.23
Change Percentage	0.12%
Open	43.89
Previous Close	43.18
Market Cap ( Millions)	10686
Volume	4064937
Year High	44.07
Year Low	14.03
M A 50	32.72
M A 200	23.84

FCF Yield	4.46%
Dividend Yield	0.77%
ROE	7.32%
Debt / Equity	43.89%
Net Debt / EBIDTA	36.06%
Price To Book	2.48
Price Earnings Ratio	34.71
Price To FCF	22.41
Price To sales	1.66
EV / EBITDA	10.11

2. Amkor Technology's Q3 Earnings Exceed Expectations

Amkor Technology reported a strong third quarter with revenue of $1.99 billion and EPS of $0.51, exceeding the high end of their guidance. Revenue increased 31% sequentially driven by robust demand for advanced packaging. The company's gross margin improved, partly due to facility rationalization in Japan. EPS came in at $0.51, beating estimates of $0.42. The revenue growth was broad-based across end markets, with Communications revenue increasing 67% sequentially and 5% year-on-year to $847 million, while Computing revenue increased 12% sequentially and 23% year-on-year to $571 million.

Publication Date: Oct -28

                                    📋 Highlights
                                    Record Q3 Revenue:
                                                $1.99 billion, up 31% sequentially, driven by advanced packaging demand
Communications Revenue Surge:
                                                $847 million, +67% sequentially, highest quarterly result in end market
Arizona Facility Investment:
                                                $7 billion campus to create 3,000 jobs, focused on advanced packaging capacity
Gross Margin Improvement:
                                                100 bps gain expected by 2027 via Japan facility rationalization and efficiency
2025 CapEx Focus:
                                                $950 million allocated to high-density fan-out ramp, supporting AI and HPC demand

                                

Segment-wise Performance

By end market, Automotive and Industrial revenue increased 5% sequentially and 9% year-on-year, and Consumer revenue increased 5% sequentially but was down 5% year-on-year. The company's Q3 revenue showed record highs in Communications and Computing end markets, driven by growth in AI, high-performance computing, and advanced packaging.

Guidance and Outlook

The company expects Q4 revenue to be between $1.775 billion and $1.875 billion, representing an 8% sequential decline at the midpoint and a 12% year-on-year increase. Gross margin is projected to be between 14% and 15%. Amkor's long-term outlook remains robust, driven by growth in AI, high-performance computing, and advanced packaging.

Strategic Investments

The company is investing $7 billion in a new advanced packaging and test campus in Arizona, which will include 750,000 square feet of clean room space and create up to 3,000 high-quality jobs. This investment is not related to higher construction costs but exclusively to capacity expansion, driven by demand from lead customers and a foundry partner.

Valuation and Growth Prospects

Amkor's P/E Ratio stands at 26.6, indicating that the market expects strong growth prospects. The company's ROE is 7.32%, and ROIC is 4.97%. Analysts estimate next year's revenue growth at 7.5%. The $7 billion investment in Arizona offers opportunities for growth, with plans to scale the facility correctly in terms of capacity and technology. With a dividend yield of 2.22% and a Free Cash Flow Yield of 5.82%, Amkor presents an attractive investment opportunity.

3. NewsRoom

Fisher Asset Management LLC Sells 30,703 Shares of Amkor Technology, Inc. $AMKR

Dec -04

Source: defenseworld.net

Head to Head Analysis: Amkor Technology (NASDAQ:AMKR) versus Soitec (OTCMKTS:SLOIF)

Dec -04

Source: defenseworld.net

Amkor Technology, Inc. (AMKR) Presents at UBS Global Technology and AI Conference 2025 Transcript

Dec -02

Source: seekingalpha.com

Ensign Peak Advisors Inc Reduces Holdings in Amkor Technology, Inc. $AMKR

Dec -01

Source: defenseworld.net

Amkor Technology (AMKR) Recently Broke Out Above the 20-Day Moving Average

Nov -26

Source: zacks.com

Amkor Technology, Inc. $AMKR is Bandera Partners LLC’s 5th Largest Position

Nov -25

Source: defenseworld.net

Amkor shares rally in late trade, to work with Nvidia on packaging

Nov -19

Source: reuters.com

Amkor Technology, Inc. (NASDAQ:AMKR) Receives Average Rating of “Moderate Buy” from Analysts

Nov -15

Source: defenseworld.net

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (7.55%)

6. Segments

Advanced Products

Expected Growth: 8%

Amkor Technology's Advanced Products segment growth is driven by increasing demand for high-performance computing, artificial intelligence, and 5G-enabled devices. The company's leadership in 2.5D and 3D packaging, as well as its strong relationships with top-tier OEMs, position it for continued growth in this segment.

Mainstream Products

Expected Growth: 6%

Amkor Technology's mainstream products, such as advanced semiconductor packaging and test services, drive 6% growth. Key drivers include increasing demand for 5G, IoT, and AI-enabled devices, as well as the adoption of autonomous vehicles and smart homes. Additionally, the growing need for miniaturization, higher performance, and reduced power consumption in electronic devices fuels growth.

7. Detailed Products

Wafer Bumping

A process of attaching tiny solder balls to the die of a semiconductor wafer, enabling flip chip assembly

Flip Chip Assembly

A method of attaching a die to a substrate using solder bumps, enabling high-speed and high-density interconnects

Wafer Level Packaging

A process of packaging semiconductor devices at the wafer level, enabling smaller form factors and improved performance

System-in-Package (SiP)

A packaging technology that integrates multiple dies and components into a single package, enabling smaller form factors and improved performance

Test and Burn-in Services

A service that tests and burns-in semiconductor devices to ensure reliability and performance

Wafer Processing

A service that provides wafer-level processing, including thinning, dicing, and sorting

8. Amkor Technology, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Amkor Technology, Inc. is medium due to the availability of alternative semiconductor packaging and test services from other companies.

Bargaining Power Of Customers

The bargaining power of customers is high due to the concentration of major customers such as Qualcomm, Intel, and Texas Instruments, which gives them significant negotiating power.

Bargaining Power Of Suppliers

The bargaining power of suppliers is low due to the availability of multiple suppliers for raw materials and equipment, reducing their negotiating power.

Threat Of New Entrants

The threat of new entrants is low due to the high capital requirements and technological barriers to entry in the semiconductor packaging and test industry.

Intensity Of Rivalry

The intensity of rivalry is high due to the competitive nature of the semiconductor packaging and test industry, with multiple players competing for market share.

9. SWOT Analysis

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

	Value
Debt Weight	24.63%
Debt Cost	5.22%
Equity Weight	75.37%
Equity Cost	13.69%
WACC	11.61%
Leverage	32.68%

11. Quality Control: Amkor Technology, Inc. passed 7 out of 9 key points

Strong Liquidity

Low Debt

Strong Interest Coverage

Healthy Cash Flow

Operating Inefficiency

Strong Return On Equity

Consistent Revenue Growth

Consistent Operating Cash Flow Growth

Margin Improvement

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Rambus

A-Score: 5.1/10

Value: 0.8

Growth: 8.0

Quality: 9.0

Yield: 0.0

Momentum: 10.0

Volatility: 2.7

1-Year Total Return ->

Amkor Technology

A-Score: 4.3/10

Value: 4.6

Growth: 5.4

Quality: 4.8

Yield: 3.0

Momentum: 4.0

Volatility: 3.7

1-Year Total Return ->

Universal Display

A-Score: 4.2/10

Value: 1.2

Growth: 6.6

Quality: 8.6

Yield: 2.0

Momentum: 1.5

Volatility: 5.3

1-Year Total Return ->

Veeco Instruments

A-Score: 4.0/10

Value: 3.0

Growth: 5.9

Quality: 5.9

Yield: 0.0

Momentum: 5.0

Volatility: 4.3

1-Year Total Return ->

MACOM Tech

A-Score: 3.9/10

Value: 2.2

Growth: 6.7

Quality: 3.5

Yield: 0.0

Momentum: 6.0

Volatility: 5.0

1-Year Total Return ->

FormFactor

A-Score: 2.6/10

Value: 0.6

Growth: 5.2

Quality: 5.4

Yield: 0.0

Momentum: 2.0

Volatility: 2.3

1-Year Total Return ->

Peers Metrics

12.e Scoring ^Insights

12.f DCF ^BETA

Parameters

Short Term Growth

15.09%

Short term Time

10.0

Long-Term Growth

2.00%

WACC

11.61%

Amkor Technology, Inc. - US0316521006

1. Company Snapshot

1.a. Company Description

1.b. Last Insights on AMKR

1.c. Company Highlights

Stable Momentum

Average Growth

Medium Volatility

Earnings Beats

Average Yield

Strong Momentum

Fairly Valued

Average Quality

Higher Growth

Earnings Miss

Revenues Beats

Higher Yield

Revenues Miss

Weak Momentum

2. Amkor Technology's Q3 Earnings Exceed Expectations

Segment-wise Performance

Guidance and Outlook

Strategic Investments

Valuation and Growth Prospects

3. NewsRoom

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (7.55%)

6. Segments

Advanced Products

Expected Growth: 8%

Mainstream Products

Expected Growth: 6%

7. Detailed Products

Wafer Bumping

Flip Chip Assembly

Wafer Level Packaging

System-in-Package (SiP)

Test and Burn-in Services

Wafer Processing

8. Amkor Technology, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Bargaining Power Of Customers

Bargaining Power Of Suppliers

Threat Of New Entrants

Intensity Of Rivalry

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

11. Quality Control: Amkor Technology, Inc. passed 7 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

43.23$

Current Price

43.23$

Potential

-0.00%

Expected Cash-Flows

12.e Scoring ^Insights

12.f DCF ^BETA