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)
October 26, 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 nine months ended September 30, 2020 and forward-looking statements relating to the fourth quarter and full year 2020 as presented in a press release dated October 26, 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: October 26, 2020

News Release

Amkor Technology Reports Financial Results for the Third Quarter 2020
and the Initiation of a Quarterly Cash Dividend

Third Quarter Highlights
Record third quarter net sales $1.35 billion, up 25% year-on-year and 15% sequentially
Operating income $127 million, operating income margin 9.4%
Net income $92 million, earnings per diluted share $0.38
EBITDA $255 million
Initiation of a regular quarterly cash dividend of $0.04 per share

TEMPE, Ariz. - October 26, 2020 - Amkor Technology, Inc. (NASDAQ: AMKR), a leading provider of semiconductor packaging and test services, today announced financial results for the third quarter ended September 30, 2020 and the initiation of a regular quarterly cash dividend of $0.04 per share.

“Stronger than expected demand in the communications and automotive and industrial end markets drove revenue above the high end of our guidance,” said Giel Rutten, Amkor’s president and chief executive officer. “The Board’s decision to initiate a dividend is a significant milestone for Amkor. Over the past several years, Amkor has capitalized on growth opportunities in advanced packaging technologies that target 5G, advanced automotive systems, IoT and high-performance computing, and the introduction of a regular cash dividend reflects our consistent operating performance, strong free cash flow generation and confidence in our long-term financial outlook.”
ResultsQ3 2020Q2 2020Q3 2019
($ in millions, except per share data)
Net sales$1,354$1,173$1,084
Gross margin17.8%16.4%16.8%
Operating income$127$87$79
Operating income margin9.4%7.4%7.3%
Net income attributable to Amkor$92$55$54
Earnings per diluted share$0.38$0.23$0.23

“All-time record quarterly revenue drove operating income margin to 9.4% and EPS to $0.38 for the quarter. We also paid down $230 million of debt this quarter, bringing our net debt to $0.4 billion, the lowest in our public company history,” said Megan Faust, Amkor’s executive vice president and chief financial officer. “The initiation of a dividend expands Amkor’s capital allocation strategy for delivering value to stockholders. Our consistent free cash flow and strong balance sheet give us the financial flexibility to continue to make investments in future growth opportunities and return capital to stockholders.”

At September 30, 2020, total cash and short-term investments was $0.9 billion, and total debt was $1.3 billion.

The initial quarterly cash dividend of $0.04 per share is payable on January 7, 2021 to stockholders of record at the close of business on December 18, 2020. The declaration and payment of future dividends, as well as any record and payment dates, are subject to the approval of the Board of Directors.

*EBITDA and net debt are non-GAAP financial measures. The reconciliation to the comparable GAAP financial measure is included below under “Selected Operating Data.”

Business Outlook

“Continued strength in advanced packaging and a recovering automotive end market are expected to drive solid revenue performance in the fourth quarter of 2020,” said Rutten. “Growing demand and share gains in the communications end market is expected to drive year on year revenue growth of 10% in the fourth quarter.”

Fourth quarter 2020 outlook (unless otherwise noted):

Net sales of $1.25 billion to $1.35 billion
Gross margin of 17% to 20%
Net income of $68 million to $115 million, or $0.28 to $0.47 per diluted share
Full year 2020 capital expenditures of approximately $550 million

Conference Call Information

Amkor will conduct a conference call on Monday, October 26, 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 1-877-407-4019 or 1-201-689-8337. A replay of the call will be made available at Amkor’s website or by dialing 1-877-660-6853 or 1-201-612-7415 (conference ID 13711716). 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
Q3 2020Q2 2020Q3 2019
Net Sales Data:   
Net sales (in millions):   
Advanced products (1)$899 $729 $589 
Mainstream products (2)455 444 495 
Total net sales$1,354 $1,173 $1,084 
Packaging services86 %84 %84 %
Test services14 %16 %16 %
Net sales from top ten customers63 %69 %62 %
End Market Data:
Communications (handheld devices, smartphones, tablets)43 %38 %41 %
Consumer (connected home, set-top boxes, televisions, visual imaging, wearables)
25 %27 %18 %
Automotive, industrial and other (driver assist, infotainment, performance, safety)
17 %19 %26 %
Computing (data center, infrastructure, PC/laptop, storage)
15 %16 %15 %
Total100 %100 %100 %
Gross Margin Data:
Net sales100.0 %100.0 %100.0 %
Cost of sales:
Materials46.9 %45.2 %40.4 %
Labor12.8 %13.9 %15.8 %
Other manufacturing22.5 %24.5 %27.0 %
Gross margin17.8 %16.4 %16.8 %

(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
This press release includes 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:
Q3 2020Q2 2020Q3 2019
(in millions)
Net income$93 $56 $54 
Plus: Interest expense16 16 17 
Plus: Income tax expense16 13 
Plus: Depreciation & amortization130 124 129 
EBITDA$255 $209 $209 

This press release also includes 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:
Q3 2020Q2 2020Q3 2019
(in millions)
Net Debt Data:
Total Debt$1,319 $1,545 $1,298 
Less: Cash and Cash Equivalents567 783 599 
Less: Short-term Investments356 311 
Net Debt$396 $451 $693 

For the Three Months Ended September 30,For the Nine Months Ended September 30,
(In thousands, except per share data)
Net sales$1,354,023 $1,083,917 $3,679,548 $2,874,186 
Cost of sales1,112,938 901,677 3,057,235 2,447,731 
Gross profit241,085 182,240 622,313 426,455 
Selling, general and administrative77,781 70,458 224,623 206,803 
Research and development35,835 32,927 99,624 104,867 
Total operating expenses113,616 103,385 324,247 311,670 
Operating income127,469 78,855 298,066 114,785 
Interest expense16,404 16,988 49,461 54,914 
Other (income) expense, net2,415 (1,760)1,567 641 
Total other expense, net18,819 15,228 51,028 55,555 
Income before taxes108,650 63,627 247,038 59,230 
Income tax expense15,753 9,141 33,504 36,418 
Net income92,897 54,486 213,534 22,812 
Net income attributable to non-controlling interests(746)(416)(2,070)(1,071)
Net income attributable to Amkor$92,151 $54,070 $211,464 $21,741 
Net income attributable to Amkor per common share:
Basic$0.38 $0.23 $0.88 $0.09 
Diluted$0.38 $0.23 $0.87 $0.09 
Shares used in computing per common share amounts:
Basic241,675 239,586 241,232 239,503 
Diluted242,592 239,937 241,937 239,858 


September 30, 2020December 31, 2019
(In thousands)
Current assets:
Cash and cash equivalents$566,745 $894,948 
Restricted cash945 610 
Short-term investments356,150 6,348 
Accounts receivable, net of allowances990,637 850,753 
Inventories299,830 220,602 
Other current assets54,264 28,272 
Total current assets2,268,571 2,001,533 
Property, plant and equipment, net2,560,195 2,404,850 
Operating lease right of use assets 149,727 148,549 
Goodwill26,747 25,976 
Restricted cash3,087 2,974 
Other assets128,293 111,733 
Total assets$5,136,620 $4,695,615 
Current liabilities:
Short-term borrowings and current portion of long-term debt$136,526 $144,479 
Trade accounts payable611,965 571,054 
Capital expenditures payable328,171 77,044 
Accrued expenses298,708 267,226 
Total current liabilities1,375,370 1,059,803 
Long-term debt1,182,573 1,305,755 
Pension and severance obligations175,941 176,971 
Long-term operating lease liabilities88,257 91,107 
Other non-current liabilities91,742 71,740 
Total liabilities2,913,883 2,705,376 
Stockholders’ equity:
Preferred stock— — 
Common stock288 287 
Additional paid-in capital1,943,140 1,927,739 
Retained earnings445,541 234,077 
Accumulated other comprehensive income (loss)23,309 19,115 
Treasury stock(217,660)(217,479)
Total Amkor stockholders’ equity2,194,618 1,963,739 
Non-controlling interests in subsidiaries28,119 26,500 
Total equity2,222,737 1,990,239 
Total liabilities and equity$5,136,620 $4,695,615 

For the Nine Months Ended September 30,
(In thousands)
Cash flows from operating activities:
Net income$213,534 $22,812 
Depreciation and amortization377,722 398,013 
Other operating activities and non-cash items20,368 51,533 
Changes in assets and liabilities(177,576)(189,026)
Net cash provided by operating activities434,048 283,332 
Cash flows from investing activities:
Payments for property, plant and equipment(275,531)(328,497)
Proceeds from sale of property, plant and equipment2,710 8,495 
Proceeds from insurance recovery for property, plant and equipment— 1,538 
Proceeds from sale of short-term investments37,633 — 
Proceeds from maturities of short-term investments86,216 6,469 
Payments for short-term investments(475,696)(5,935)
Other investing activities13,331 (887)
Net cash used in investing activities(611,337)(318,817)
Cash flows from financing activities:
Proceeds from revolving credit facilities312,000 172,700 
Payments of revolving credit facilities(332,000)(92,700)
Proceeds from short-term debt86,769 51,434 
Payments of short-term debt(76,004)(42,067)
Proceeds from issuance of long-term debt225,985 714,375 
Payments of long-term debt(370,426)(847,155)
Payments of finance lease obligations(7,193)(4,358)
Other financing activities7,707 (1,963)
Net cash used in financing activities(153,162)(49,734)
Effect of exchange rate fluctuations on cash, cash equivalents and restricted cash2,696 1,385 
Net decrease in cash, cash equivalents and restricted cash(327,755)(83,834)
Cash, cash equivalents and restricted cash, beginning of period898,532 688,051 
Cash, cash equivalents and restricted cash, end of period$570,777 $604,217 

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 statements regarding future demand, operating performance, free cash flow generation, financial outlook, investment and return of capital, statements regarding future dividends and 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 other 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 other 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;
the possibility that we may decrease or suspend our quarterly dividend;
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, 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.