Amkor Technology Reports 2.9% Decrease in Net Sales for Fiscal Year 2024

Amkor Technology, Inc. reported a decrease in net sales for the fiscal year ending December 31, 2024, totaling $6.32 billion, down 2.9% from $6.50 billion in 2023. The decline was primarily attributed to reduced sales in the automotive and industrial sectors, which fell by 16%, and a 7% decrease in the communications market. However, growth was observed in the computing and consumer markets, with increases of 16% and 10%, respectively. The company's gross margin improved slightly to 14.8% from 14.5% in the previous year, aided by favorable foreign currency exchange rates and an extension of the estimated useful life of test equipment.

In terms of operational developments, Amkor has made significant investments in its manufacturing capabilities, with capital expenditures reaching $743.8 million, approximately 11.8% of net sales. The company has focused on advanced packaging and test equipment, which is crucial for meeting the growing demand in high-performance computing, automotive, and IoT sectors. Additionally, Amkor began operations at its new facility in Vietnam in 2024 and acquired land for a new facility in Arizona, with construction expected to commence in the second half of 2025. The Arizona facility is supported by a $407 million funding award from the U.S. Department of Commerce under the CHIPS Act.

Amkor's workforce as of December 31, 2024, consisted of approximately 28,300 employees, with a significant majority located in the Asia-Pacific region. The company has maintained strong relationships with major semiconductor manufacturers, with its top ten customers accounting for 72% of net sales. Notably, sales to Apple and Qualcomm represented 30.8% and 10.2% of total sales, respectively. The company continues to optimize its asset utilization and enhance its manufacturing processes to support multiple customers and improve efficiency.

Looking ahead, Amkor anticipates continued demand for advanced packaging services driven by trends in artificial intelligence, automotive safety features, and the proliferation of IoT devices. The company aims to leverage its technological leadership and geographic diversity to mitigate risks and enhance customer relationships. However, it remains cautious about the cyclical nature of the semiconductor industry and potential economic downturns that could impact demand. The company expects to maintain its focus on profitable sales growth while managing capital expenditures and operational costs effectively.