Amkor Technology Reports 3.4% Net Sales Increase to $1.511 Billion in Q2 2025

Amkor Technology, Inc. reported a net sales increase of $49.9 million, or 3.4%, for the second quarter of 2025, reaching $1.511 billion compared to $1.461 billion in the same period of 2024. The growth was primarily driven by strong performance in the consumer and computing end markets, which saw increases of 52% and 16%, respectively. However, this was partially offset by a 15% decline in the communications sector, attributed to reduced content in premium-tier smartphones. The company's gross profit for the quarter was $181.9 million, resulting in a gross margin of 12.0%, down from 14.5% a year earlier, largely due to increased overhead and employee compensation costs as well as the ramp-up of the new Vietnam facility.

In terms of profitability, Amkor's operating income rose to $92.0 million, up from $81.5 million in the prior year, reflecting an operating income margin increase to 6.1%. This improvement was aided by net cash received from the Nanium Insolvency Receipt, which contributed $32.4 million to the quarter's results. However, net income attributable to Amkor decreased to $54.4 million, or $0.22 per share, compared to $66.9 million, or $0.27 per share, in the same quarter of 2024. The decline in net income was influenced by a significant increase in income tax expense, which rose to $28.2 million from $14.3 million, primarily due to discrete tax expenses related to the Nanium Insolvency Receipt.

Operationally, Amkor's total assets increased to $7.706 billion as of June 30, 2025, up from $6.944 billion at the end of 2024. The company reported cash and cash equivalents of $1.527 billion, alongside short-term investments of $516.4 million. The total liabilities also rose to $3.474 billion, with long-term debt increasing to $1.198 billion. The company has been actively managing its capital structure, having entered into a new $1 billion revolving credit facility in May 2025, which replaced an existing facility, and issued $500 million in term loans to support its operations and capital expenditures.

Looking ahead, Amkor plans to continue investing in advanced packaging and test equipment, with capital expenditures expected to total approximately $850 million in 2025. The company is also progressing with the construction of a new facility in Arizona, supported by a $407 million award from the U.S. Department of Commerce under the CHIPS Act. Amkor's management remains optimistic about the demand for advanced packaging services, particularly in high-growth markets such as automotive, IoT, and high-performance computing, despite the cyclical nature of the semiconductor industry. The company is focused on optimizing asset utilization and maintaining liquidity to navigate potential market fluctuations.