AMKR Q2 Deep Dive: Advanced Packaging Demand and Strategic Investments Drive Outlook

August 12, 2025 at 23:00 PM EDT

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Semiconductor packaging and testing company Amkor Technology (NASDAQ: AMKR) beat Wall Street’s revenue expectations in Q2 CY2025, with sales up 3.4% year on year to $1.51 billion. On top of that, next quarter’s revenue guidance ($1.93 billion at the midpoint) was surprisingly good and 9.3% above what analysts were expecting. Its GAAP profit of $0.22 per share was 37.7% above analysts’ consensus estimates.

Is now the time to buy AMKR? Find out in our full research report (it’s free).

Amkor (AMKR) Q2 CY2025 Highlights:

Revenue: $1.51 billion vs analyst estimates of $1.42 billion (3.4% year-on-year growth, 6.3% beat)
EPS (GAAP): $0.22 vs analyst estimates of $0.16 (37.7% beat)
Adjusted EBITDA: $259 million vs analyst estimates of $218.5 million (17.1% margin, 18.5% beat)
Revenue Guidance for Q3 CY2025 is $1.93 billion at the midpoint, above analyst estimates of $1.76 billion
EPS (GAAP) guidance for Q3 CY2025 is $0.41 at the midpoint, missing analyst estimates by 7.5%
Operating Margin: 6.1%, in line with the same quarter last year
Inventory Days Outstanding: 26, in line with the previous quarter
Market Capitalization: $6.02 billion

StockStory’s Take

Amkor’s second quarter results drew a strong positive response from the market, with management highlighting broad-based growth across all end markets. CEO Giel Rutten credited the company’s adaptability in supporting customers through complex global conditions, particularly noting accelerated product transfers and volume increases that fueled revenue growth. Rutten emphasized that the communications segment benefited from demand in the iOS ecosystem, while the computing end market was lifted by new product ramps and memory growth. He also pointed to the successful high-volume launch of High-Density Fan-Out packaging as a milestone for Amkor’s technology leadership this quarter.

Looking forward, management’s guidance is shaped by expectations for continued strength in communications and computing, underpinned by seasonal smartphone launches and robust demand for advanced packaging in AI and high-performance computing. CFO Megan Faust stated that profitability should expand at a higher rate than revenue due to operating leverage, despite ongoing cost pressures from facility ramp-ups and product mix. Rutten highlighted that Amkor’s ongoing investment in advanced packaging and test solutions positions the company to capture future growth opportunities as innovation accelerates in the semiconductor ecosystem.

Key Insights from Management’s Remarks

Management attributed the quarter’s performance to successful execution in advanced packaging, a strategic shift to Vietnam manufacturing, and technology wins with key customers.

Advanced packaging momentum: The company’s communications and computing segments benefited from strong demand for advanced SiP (System in Package) and High-Density Fan-Out packaging, supporting next-generation smartphones and AI-driven computing devices.
Vietnam facility ramp-up: Amkor accelerated production transfers to its Vietnam plant, offering customers an alternative to China and supporting consumer and communications markets. The transition initially impacted gross margins but is expected to become more cost-efficient over time.
Japan footprint rationalization: Management acknowledged underutilization at several Japanese factories, which constrained profitability. Plans are underway to consolidate operations, particularly focusing on primary sites like Kumamoto, to improve cost structure and efficiency.
Automotive and industrial inflection: After eight quarters of year-on-year declines, these segments showed renewed growth driven by new ADAS (Advanced Driver Assistance Systems) product launches. Management highlighted growing customer interest in advanced packaging for automotive applications.
Test platform investment: The company is expanding its test capabilities, especially in Korea and Taiwan, to meet demand for AI and high-performance computing. This includes upgrades to test engineering and new facilities, supporting a full Turnkey solution for customers.

Drivers of Future Performance

Amkor expects near-term growth to be led by seasonal smartphone launches, continued AI-driven computing demand, and operational improvements in factory utilization.

Smartphone and AI device launches: The upcoming release of premium-tier smartphones, especially in the iOS ecosystem, is expected to drive robust growth in communications, while AI-related computing projects contribute to a strong pipeline across the second half of the year.
Margin improvement initiatives: Management is focused on optimizing gross margins by consolidating underutilized facilities in Japan and increasing production efficiency in Vietnam, aiming for improved cost structure and profitability over the midterm.
Capacity and technology investments: Continued capital investment in advanced packaging, test solutions, and new production lines in Korea, Taiwan, and Arizona is intended to position Amkor for long-term leadership in high-growth semiconductor segments. Management cautioned that material cost pressures and technology transitions could present headwinds.

Catalysts in Upcoming Quarters

In the upcoming quarters, our team will closely watch (1) the pace of advanced packaging adoption in communications and computing, (2) progress on manufacturing consolidation and margin recovery—especially in Japan and Vietnam, and (3) continued momentum in automotive and industrial demand for next-generation packaging. Execution on technology investments and customer wins will be critical indicators of sustainable growth.

Amkor currently trades at $24.48, up from $21.24 just before the earnings. In the wake of this quarter, is it a buy or sell? See for yourself in our full research report (it’s free).

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