Washington, DC 20549

Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported)
July 27, 2020
(Exact name of registrant as specified in its charter)
Delaware 000-29472 23-1722724
(State or Other Jurisdiction of Incorporation) (Commission File Number) (IRS Employer Identification No.)

TEMPE, AZ 85284
(Address of principal executive offices, including zip code)

(Registrant’s telephone number, including area code)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Securities registered pursuant to Section 12(b) of the Act:
Title of Each ClassTrading SymbolName of Each Exchange on Which Registered
Common Stock, $0.001 par valueAMKRThe NASDAQ Global Select Market
Indicate by check mark whether the registrant is an emerging growth company as defined in as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  o

Item 2.02. Results of Operations and Financial Condition

Attached hereto as Exhibit 99.1 and incorporated by reference herein is financial information for Amkor Technology, Inc. for the three and six months ended June 30, 2020 and forward-looking statements relating to the third quarter and full year 2020 as presented in a press release dated July 27, 2020. The information in this Form 8-K and the exhibit attached hereto is being furnished and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”) or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, regardless of any general incorporation language in such filing.

Item 9.01. Financial Statements and Exhibits.

(d) Exhibits.
104Cover Page Interactive Data File (embedded within the Inline XBRL document)


Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
By:/s/ Megan Faust
Megan Faust
Executive Vice President and Chief Financial Officer
Date: July 27, 2020

News Release

Amkor Technology Reports Financial Results for the Second Quarter 2020

Second Quarter Highlights
Second quarter net sales $1.17 billion, up 31% year-on-year
Operating income $87 million, operating margin 7.4%
Net income $55 million, earnings per diluted share $0.23
EBITDA $209 million

TEMPE, Ariz. - July 27, 2020 - Amkor Technology, Inc. (NASDAQ: AMKR), a leading provider of semiconductor packaging and test services, today announced financial results for the second quarter ended June 30, 2020.

“Broad based demand drove revenue well above the high end of expectations,” said Giel Rutten, Amkor’s president and chief executive officer. “The strategic investments we made in both advanced packaging technology and manufacturing capacity enabled significant growth in revenue and profitability.”
ResultsQ2 2020Q1 2020Q2 2019
($ in millions, except per share data)
Net sales$1,173$1,153$895
Gross margin16.4%16.4%13.8%
Operating income$87$84$23
Operating margin7.4%7.3%2.5%
Net income attributable to Amkor*$55$64($9)
Earnings per diluted share*$0.23$0.26($0.04)
EBITDA** $209$210$149

*Q2 2019 net income includes an $8 million charge, or $0.03 per share, related to the early redemption of $525 million of senior notes due 2022.
**EBITDA is a non-GAAP financial measure. The reconciliation to the comparable GAAP financial measure is included below under “Selected Operating Data.”

“The strong revenue performance and disciplined expense management resulted in operating income margin of 7.4% and earnings per diluted share of $0.23,” said Megan Faust, Amkor’s executive vice president and chief financial officer. “Our profitability and focus on free cash flow generation has further strengthened our balance sheet, and we ended the quarter with net debt of $450 million.”

At June 30, 2020, total cash and short-term investments was $1.1 billion, and total debt was $1.5 billion.

Business Outlook

“We expect sequential revenue growth in the third quarter, driven by the launch of flagship smart phones, including more 5G models where we have a strong footprint,” said Rutten. “We believe mid- and long-term growth drivers remain intact, and we will continue to invest in markets, including 5G, high performance computing and IoT, where we see the highest potential for growth.”

Third quarter 2020 outlook (unless otherwise noted):

Net sales of $1.2 billion to $1.3 billion
Gross margin of 15% to 18%
Net income of $42 million to $85 million, or $0.17 to $0.35 per diluted share
Full year 2020 capital expenditures of approximately $550 million

Conference Call Information

Amkor will conduct a conference call on Monday, July 27, 2020, at 5:00 p.m. Eastern Time. This call may include material information not included in this press release. This call is being webcast and can be accessed at Amkor’s website: You may also access the call by dialing 1-877-645-6380 or 1-404-991-3911. A replay of the call will be made available at Amkor’s website or by dialing 1-855-859-2056 or 1-404-537-3406 (conference ID 8565096). The webcast is also being distributed over NASDAQ OMX’s investor distribution network to both institutional and individual investors. Institutional investors can access the call via NASDAQ OMX’s password-protected event management site, Street Events (

About Amkor Technology, Inc.

Amkor Technology, Inc. is one of the world’s largest providers of outsourced semiconductor packaging and test services. Founded in 1968, Amkor pioneered the outsourcing of IC packaging and test, and is now a strategic manufacturing partner for the world’s leading semiconductor companies, foundries and electronics OEMs. Amkor’s operational base includes production facilities, product development centers, and sales and support offices located in key electronics manufacturing regions in Asia, Europe and the USA. For more information, visit


Vincent Keenan
Vice President, Investor Relations

Selected Operating Data
Q2 2020Q1 2020Q2 2019
Net Sales Data:   
Net sales (in millions):   
Advanced products (1)$729  $705  $433  
Mainstream products (2)444  448  462  
Total net sales$1,173  $1,153  $895  
Packaging services84 %85 %83 %
Test services16 %15 %17 %
Net sales from top ten customers69 %67 %62 %
End Market Data:
Communications (handheld devices, smartphones, tablets)38 %38 %37 %
Consumer (connected home, set-top boxes, televisions, visual imaging, wearables)
27 %24 %15 %
Automotive, industrial and other (driver assist, infotainment, performance, safety)
19 %23 %29 %
Computing (data center, infrastructure, PC/laptop, storage)
16 %15 %19 %
Total100 %100 %100 %
Gross Margin Data:
Net sales100.0 %100.0 %100.0 %
Cost of sales:
Materials45.2 %45.3 %38.0 %
Labor13.9 %14.2 %17.4 %
Other manufacturing24.5 %24.1 %30.8 %
Gross margin16.4 %16.4 %13.8 %

(1) Advanced products include flip chip and wafer-level processing and related test services
(2) Mainstream products include wirebond packaging and related test services

Selected Operating Data
In this press release, we provide EBITDA, which is not defined by U.S. GAAP. We define EBITDA as net income before interest expense, income tax expense and depreciation and amortization. We believe EBITDA to be relevant and useful information to our investors because it provides additional information in assessing our financial operating results. Our management uses EBITDA in evaluating our operating performance, our ability to service debt and our ability to fund capital expenditures. However, EBITDA has certain limitations in that it does not reflect the impact of certain expenses on our consolidated statements of income, including interest expense, which is a necessary element of our costs because we have borrowed money in order to finance our operations, income tax expense, which is a necessary element of our costs because taxes are imposed by law, and depreciation and amortization, which is a necessary element of our costs because we use capital assets to generate income. EBITDA should be considered in addition to, and not as a substitute for, or superior to, operating income, net income or other measures of financial performance prepared in accordance with U.S. GAAP. Furthermore our definition of EBITDA may not be comparable to similarly titled measures reported by other companies. Below is our reconciliation of EBITDA to U.S. GAAP net income.
Non-GAAP Financial Measure Reconciliation:
Q2 2020Q1 2020Q2 2019
(in millions)
Net income (loss)$56  $64  $(9) 
Plus: Interest expense16  17  19  
Plus: Income tax expense13    
Plus: Depreciation & amortization124  124  133  
EBITDA$209  $210  $149  

In this press release, we provide net debt, which is not defined by U.S. GAAP. We define net debt as total debt as reported on the consolidated balance sheet less the sum of cash and cash equivalents, and short term investments. We believe net debt to be relevant and useful information to our investors because it provides them with additional information in assessing our capital structure, financial leverage, and our ability to reduce debt and to fund investing and financing activities. This measure should be considered in addition to, and not as a substitute for, or superior to, total debt, prepared in accordance with U.S. GAAP. Furthermore, our definition of net debt may not be comparable to similarly titled measures reported by other companies.

Non-GAAP Financial Measure Reconciliation:
Q2 2020Q1 2020Q2 2019
(in millions)
Net Debt Data:
Total Debt$1,545  $1,513  $1,308  
Less: Cash and Cash Equivalents783  941  551  
Less: Short-term Investments311  58   
Net Debt$451  $514  $751  

For the Three Months Ended June 30,For the Six Months Ended June 30,
(In thousands, except per share data)
Net sales$1,172,909  $895,305  $2,325,525  $1,790,269  
Cost of sales980,589  771,851  1,944,297  1,546,054  
Gross profit192,320  123,454  381,228  244,215  
Selling, general and administrative74,260  64,758  146,842  136,345  
Research and development31,536  36,186  63,789  71,940  
Total operating expenses105,796  100,944  210,631  208,285  
Operating income86,524  22,510  170,597  35,930  
Interest expense16,012  18,653  33,057  37,926  
Other (income) expense, net1,467  6,966  (848) 2,401  
Total other expense, net17,479  25,619  32,209  40,327  
Income (loss) before taxes69,045  (3,109) 138,388  (4,397) 
Income tax expense12,905  5,897  17,751  27,277  
Net income (loss)56,140  (9,006) 120,637  (31,674) 
Net income attributable to non-controlling interests(716) (444) (1,324) (655) 
Net income (loss) attributable to Amkor$55,424  $(9,450) $119,313  $(32,329) 
Net income (loss) attributable to Amkor per common share:
Basic$0.23  $(0.04) $0.50  $(0.14) 
Diluted$0.23  $(0.04) $0.49  $(0.14) 
Shares used in computing per common share amounts:
Basic241,098  239,508  241,009  239,461  
Diluted241,410  239,508  241,345  239,461  


June 30, 2020December 31, 2019
(In thousands)
Current assets:
Cash and cash equivalents$783,228  $894,948  
Restricted cash931  610  
Short-term investments310,634  6,348  
Accounts receivable, net of allowances898,717  850,753  
Inventories306,902  220,602  
Other current assets41,383  28,272  
Total current assets2,341,795  2,001,533  
Property, plant and equipment, net2,471,977  2,404,850  
Operating lease right of use assets 146,013  148,549  
Goodwill26,140  25,976  
Restricted cash3,027  2,974  
Other assets126,436  111,733  
Total assets$5,115,388  $4,695,615  
Current liabilities:
Short-term borrowings and current portion of long-term debt$148,872  $144,479  
Trade accounts payable583,341  571,054  
Capital expenditures payable259,344  77,044  
Accrued expenses291,278  267,226  
Total current liabilities1,282,835  1,059,803  
Long-term debt1,396,389  1,305,755  
Pension and severance obligations165,401  176,971  
Long-term operating lease liabilities87,204  91,107  
Other non-current liabilities66,631  71,740  
Total liabilities2,998,460  2,705,376  
Stockholders’ equity:
Preferred stock—  —  
Common stock287  287  
Additional paid-in capital1,934,047  1,927,739  
Retained earnings353,390  234,077  
Accumulated other comprehensive income (loss)19,272  19,115  
Treasury stock(217,592) (217,479) 
Total Amkor stockholders’ equity2,089,404  1,963,739  
Non-controlling interests in subsidiaries27,524  26,500  
Total equity2,116,928  1,990,239  
Total liabilities and equity$5,115,388  $4,695,615  

For the Six Months Ended June 30,
(In thousands)
Cash flows from operating activities:
Net income (loss)$120,637  $(31,674) 
Depreciation and amortization248,036  268,819  
Other operating activities and non-cash items10,151  33,112  
Changes in assets and liabilities(136,422) (101,329) 
Net cash provided by operating activities242,402  168,928  
Cash flows from investing activities:
Payments for property, plant and equipment(134,340) (273,672) 
Proceeds from sale of property, plant and equipment2,389  8,247  
Proceeds from insurance recovery for property, plant and equipment—  1,538  
Proceeds from sale of short-term investments8,593  —  
Proceeds from maturities of short-term investments13,072  6,469  
Payments for short-term investments(325,632) (5,935) 
Other investing activities805  2,330  
Net cash used in investing activities(435,113) (261,023) 
Cash flows from financing activities:
Proceeds from revolving credit facilities282,000  85,000  
Payments of revolving credit facilities(216,000) (5,000) 
Proceeds from short-term debt62,495  29,781  
Payments of short-term debt(66,609) (25,548) 
Proceeds from issuance of long-term debt225,985  614,375  
Payments of long-term debt(201,425) (732,178) 
Payments of finance lease obligations(4,876) (2,746) 
Other financing activities972  (3,865) 
Net cash provided by (used in) financing activities82,542  (40,181) 
Effect of exchange rate fluctuations on cash, cash equivalents and restricted cash(1,177) 1,131  
Net decrease in cash, cash equivalents and restricted cash(111,346) (131,145) 
Cash, cash equivalents and restricted cash, beginning of period898,532  688,051  
Cash, cash equivalents and restricted cash, end of period$787,186  $556,906  

Forward-Looking Statement Disclaimer

This press release contains forward-looking statements within the meaning of federal securities laws. All statements other than statements of historical fact are considered forward-looking statements including all of the statements made under “Business Outlook” above. These forward-looking statements involve a number of risks, uncertainties, assumptions and other factors that could affect future results and cause actual results and events to differ materially from historical and expected results and those expressed or implied in the forward-looking statements, including, but not limited to, the following:
health conditions or pandemics, such as COVID-19, impacting labor availability and operating capacity, capital availability, the supply chain and consumer demand for our customers’ products and services;
dependence on the highly cyclical, volatile semiconductor industry;
industry downturns and declines in global economic and financial conditions;
fluctuation in demand for semiconductors and conditions in the semiconductor industry generally, as well as by specific customers, such as inventory reductions by our customers impacting demand in key markets;
changes in our capacity and capacity utilization rates and fluctuations in our manufacturing yields;
the development, transition and ramp to high volume manufacture of more advanced silicon nodes and evolving wafer, packaging and test technologies, may cause production delays, lower manufacturing yields and supply constraints for new wafers and other materials;
absence of backlog, the short-term nature of our customers’ commitments, double bookings by customers and deterioration in customer forecasts and the impact of these factors, including the possible delay, rescheduling and cancellation of large orders, or the timing and volume of orders relative to our production capacity;
changes in costs, quality, availability and delivery times of raw materials, components and equipment, including any disruption in the supply of certain materials due to regulations and customer requirements, as well as wage inflation and fluctuations in commodity prices;
dependence on key customers or concentration of customers in certain end markets, such as mobile communications and automotive;
dependence on international factories and operations, and risks relating to our customers’ and vendors’ international operations;
laws, rules, regulations and policies imposed by U.S. or foreign governments, such as tariffs, customs, duties and other restrictive trade barriers, national security, data privacy and cybersecurity, antitrust and competition, tax, currency and banking, labor, environmental, health and safety, and in particular the recent increase in tariffs, customs, duties and other restrictive trade barriers considered or adopted by U.S. and foreign governments;
laws, rules, regulations and policies within China and other countries that may favor domestic companies over non-domestic companies, including customer- or government-supported efforts to promote the development and growth of local competitors;
fluctuations in currency exchange rates, particularly the dollar/yen exchange rate for our operations in Japan;
competition with established competitors in the packaging and test business, the internal capabilities of integrated device manufacturers, and new competitors, including foundries;
decisions by our integrated device manufacturer and foundry customers to curtail outsourcing;
difficulty achieving high capacity utilization rates due to high percentage of fixed costs;
our substantial investments in equipment and facilities to support the demand of our customers;
there can be no assurance regarding when our factory and research and development center in Korea will be fully utilized, or that the actual scope, costs, timeline or benefits of the project will be consistent with our expectations;

the historical downward pressure on the prices of our packaging and test services;
any warranty claims, product return and liability risks, and the risk of negative publicity if our products fail, as well as the risk of litigation incident to our business;
our substantial indebtedness and restrictive covenants in the indentures and agreements governing our current and future indebtedness;
difficulty funding our liquidity needs;
our significant severance plan obligations associated with our manufacturing operations in Korea;
maintaining an effective system of internal controls;
difficulty attracting, retaining or replacing qualified personnel;
our continuing development and implementation of changes to, and maintenance and security of, our information technology systems;
challenges with integrating diverse operations;
any changes in tax laws (including the recent enactment of U.S. tax reform), taxing authorities not agreeing with our interpretation of applicable tax laws, including whether we continue to qualify for tax holidays, or any requirements to establish or adjust valuation allowances on deferred tax assets;
our ability to develop new proprietary technology, protect our proprietary technology, operate without infringing the proprietary rights of others, and implement new technologies;
natural disasters and other calamities, health conditions or pandemics, political instability, hostilities or other disruptions; and
the ability of certain of our stockholders to effectively determine or substantially influence the outcome of matters requiring stockholder approval.
Other important risk factors that could affect the outcome of the events set forth in these statements and that could affect our operating results and financial condition are discussed in the company’s Annual Report on Form 10-K for the year ended December 31, 2019 and in the company’s subsequent filings with the Securities and Exchange Commission made prior to or after the date hereof. Amkor undertakes no obligation to review or update any forward-looking statements to reflect events or circumstances occurring after the date of this press release except as may be required by law.