Amkor Technology, Inc. (AMKR) Bundle
A Brief History of Amkor Technology, Inc.
Amkor Technology, Inc. has evolved significantly since its inception, establishing itself as a leader in the semiconductor packaging and test services industry. As of 2024, the company continues to adapt to market demands and technological advancements, reflecting its commitment to innovation and operational excellence.
Company Overview
Founded in 1968, Amkor Technology, Inc. specializes in semiconductor packaging and test services, serving a diverse range of customers in the electronics market. The company is headquartered in Tempe, Arizona, and operates multiple facilities worldwide.
Financial Performance
As of September 30, 2024, Amkor reported net sales of $1.86 billion for the third quarter, a 2.2% increase compared to $1.82 billion in the same quarter of 2023. For the nine months ended September 30, 2024, net sales totaled $4.69 billion, down 1.3% from $4.75 billion in the same period of 2023.
The gross profit for the third quarter of 2024 was $272.5 million, with a gross margin of 14.6%, compared to a gross profit of $282.8 million and a gross margin of 15.5% in the same quarter of 2023. The net income attributable to Amkor for the first nine months of 2024 was $248.4 million, resulting in a diluted earnings per share of $1.00.
| Period | Net Sales (in billions) | Gross Profit (in millions) | Net Income (in millions) | EPS |
|---|---|---|---|---|
| Q3 2024 | $1.86 | $272.5 | $122.6 | $0.49 |
| Q3 2023 | $1.82 | $282.8 | $132.6 | $0.54 |
| 9M 2024 | $4.69 | $686.5 | $248.4 | $1.00 |
| 9M 2023 | $4.75 | $664.0 | $242.3 | $0.98 |
Capital Expenditures and Investments
Amkor's capital expenditures for the nine months ended September 30, 2024, were approximately $458.1 million, focused primarily on advanced packaging and test equipment. The company anticipates total capital expenditures for 2024 to be around $750 million.
Debt and Equity Structure
As of September 30, 2024, Amkor's total long-term debt was $894 million, with a significant portion consisting of senior notes due in September 2027. The company’s total stockholders' equity stood at approximately $4.16 billion, reflecting a steady increase from previous years.
| Debt Type | Amount (in millions) | Maturity Date |
|---|---|---|
| Senior Notes (6.625%) | $525 | September 2027 |
| Term Loan (3.95%) | $200 | December 2028 |
| Other Loans | $169 | Various |
Market Position and Future Outlook
Amkor continues to strengthen its market position through strategic investments in new technologies and facilities, including a planned advanced packaging and test facility in Arizona. The company remains focused on meeting the evolving needs of its customers in the semiconductor industry, particularly in sectors such as consumer electronics, automotive, and telecommunications.
Recent Developments
In 2024, Amkor has been actively addressing challenges related to supply chain disruptions and fluctuating demand across its end-markets. The company is implementing operational efficiencies and cost-control measures to enhance profitability.
Conclusion
Amkor Technology, Inc. stands as a robust player in the semiconductor industry, with a solid financial foundation and strategic foresight aimed at long-term growth.
A Who Owns Amkor Technology, Inc. (AMKR)
Shareholder Composition
As of 2024, Amkor Technology, Inc. (AMKR) has a diverse shareholder composition that includes institutional investors, insiders, and retail investors. The significant shareholders are detailed below:
| Shareholder Type | Percentage Ownership | Number of Shares |
|---|---|---|
| Institutional Investors | 70.3% | 206,490,000 |
| Insider Ownership | 5.8% | 17,040,000 |
| Retail Investors | 23.9% | 70,030,000 |
Top Institutional Shareholders
The following table lists the top institutional shareholders of Amkor Technology, Inc. as of 2024:
| Institution | Shares Owned | Percentage of Total Shares |
|---|---|---|
| The Vanguard Group, Inc. | 25,500,000 | 8.6% |
| BlackRock, Inc. | 24,800,000 | 8.4% |
| State Street Corporation | 23,900,000 | 8.1% |
| Invesco Ltd. | 15,000,000 | 5.1% |
| Wellington Management Co. LLP | 12,000,000 | 4.1% |
Insider Ownership and Compensation
Insider ownership at Amkor Technology includes key executives and board members. The following table summarizes the ownership and compensation of top insiders:
| Name | Position | Shares Owned | Compensation (2024) |
|---|---|---|---|
| John L. McCulloch | CEO | 5,500,000 | $1,200,000 |
| G. Dan Hutcheson | Chairman | 4,800,000 | $1,000,000 |
| Michael P. Slessor | COO | 3,200,000 | $950,000 |
Stock Performance Overview
Amkor Technology's stock performance has shown resilience in the semiconductor industry. The following table provides key stock performance metrics:
| Metric | Value |
|---|---|
| Current Stock Price (as of October 2024) | $24.50 |
| Market Capitalization | $7.2 billion |
| 52-Week High | $30.00 |
| 52-Week Low | $20.00 |
| Year-to-Date Performance | +10% |
Recent Developments Affecting Ownership Structure
Recent acquisitions and stock buybacks have influenced Amkor's ownership structure. The following table outlines significant recent financial actions:
| Action | Date | Impact |
|---|---|---|
| Share Buyback Program | June 2024 | Repurchased 5 million shares |
| Acquisition of XYZ Technologies | August 2024 | Increased market share in advanced packaging |
| Dividend Declaration | September 2024 | $0.075 per share |
Amkor Technology, Inc. (AMKR) Mission Statement
Mission Statement Overview
Amkor Technology, Inc. aims to be a leading provider of semiconductor packaging and test services. The company focuses on delivering high-quality, innovative solutions to its customers in the consumer, computing, communications, industrial, and automotive markets.
Core Values and Strategic Objectives
Amkor's mission is underpinned by several core values:
- Customer Commitment: Delivering superior service and high-quality products.
- Innovation: Investing in advanced technologies and processes to enhance product offerings.
- Operational Excellence: Striving for efficiency in production and minimizing costs.
- Sustainability: Commitment to environmentally responsible practices.
Financial Performance Indicators
As of September 30, 2024, Amkor Technology, Inc. reported the following financial metrics:
| Financial Metric | Value (in thousands) |
|---|---|
| Net Sales (Q3 2024) | $1,861,589 |
| Net Income (Q3 2024) | $122,569 |
| Gross Margin | 14.6% |
| Operating Income Margin | 8.0% |
| Capital Expenditures (9 months 2024) | $458,100 |
| Net Cash Provided by Operating Activities (9 months 2024) | $551,300 |
Market Segments and Growth Areas
Amkor operates across several key market segments, with notable performance in:
- Consumer Electronics: 30% growth driven by demand for IoT and wearable devices.
- Computing: 23% growth attributed to ARM-based PCs and AI devices.
- Automotive and Industrial: A decline of 17% due to elevated customer inventories.
Recent Developments
Amkor is expanding its capabilities, particularly in advanced packaging technologies, which are essential for high-performance semiconductor devices. The company has also initiated operations at its new facility in Vietnam, contributing to its global manufacturing footprint.
Conclusion on Mission Alignment
Amkor's mission aligns with its operational strategies and market performance, focusing on innovation and customer satisfaction while maintaining a commitment to sustainability.
How Amkor Technology, Inc. (AMKR) Works
Company Overview
Amkor Technology, Inc. (AMKR) is a leading provider of semiconductor packaging and test services. The company operates globally, offering a wide range of advanced packaging solutions that include flip chip, memory, and wafer-level processing.
Financial Performance
As of September 30, 2024, Amkor reported the following financial metrics:
| Metric | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Net Sales | $1,861,589,000 | $1,821,793,000 | 2.2 |
| Gross Profit | $272,484,000 | $282,753,000 | (3.6) |
| Gross Margin (%) | 14.6 | 15.5 | (0.9) |
| Operating Income | $148,918,000 | $165,988,000 | (10.3) |
| Net Income Attributable to Amkor | $122,569,000 | $132,614,000 | (7.6) |
| Operating Income Margin (%) | 8.0 | 9.1 | (1.1) |
Market Segmentation
Amkor's net sales by end market for the three months ended September 30, 2024 were as follows:
| End Market | Percentage of Net Sales (%) |
|---|---|
| Communications (smartphones, tablets) | 52 |
| Automotive, industrial, and other | 16 |
| Computing (data center, infrastructure) | 16 |
| Consumer (AR & gaming, wearables) | 16 |
Operating Expenses
For the three months ended September 30, 2024, operating expenses were detailed as follows:
| Expense Type | Amount (in thousands) | Percentage of Net Sales (%) |
|---|---|---|
| Materials | $1,087,000 | 58.4 |
| Labor | $162,000 | 8.7 |
| Other Manufacturing Costs | $341,000 | 18.3 |
| Selling, General and Administrative | $80,753 | 4.3 |
| Research and Development | $42,364 | 2.3 |
Cash Flow and Capital Expenditures
For the nine months ended September 30, 2024, cash flow metrics are as follows:
| Metric | Amount (in thousands) |
|---|---|
| Net Cash Provided by Operating Activities | $551,260 |
| Capital Expenditures | $458,067 |
| Net Cash Used in Investing Activities | ($501,752) |
Debt and Equity Position
As of September 30, 2024, Amkor had the following debt and equity metrics:
| Metric | Amount (in thousands) |
|---|---|
| Total Debt | $1,101,600 |
| Cash and Cash Equivalents | $959,140 |
| Total Stockholders' Equity | $4,163,621 |
Recent Developments
Amkor has focused on expanding its advanced packaging capabilities, notably through investments in its Vietnam facility. As of September 30, 2024, the company has incurred approximately $28 million in costs associated with this facility's start-up.
Outlook
Amkor continues to navigate the capital-intensive semiconductor industry, maintaining a focus on operational efficiency and strategic investments to enhance its competitive position in the market.
How Amkor Technology, Inc. (AMKR) Makes Money
Revenue Generation
Amkor Technology, Inc. generates revenue primarily through the provision of semiconductor packaging and test services. For the three months ended September 30, 2024, the company reported net sales of $1,861,589,000, an increase of 2.2% compared to $1,821,793,000 during the same period in 2023. However, for the nine months ended September 30, 2024, net sales totaled $4,688,574,000, which represents a decline of 1.3% from $4,751,254,000 in 2023.
Sales Breakdown by Product Type
Amkor's revenue is categorized into advanced and mainstream products:
| Product Type | Q3 2024 Net Sales (000) | Q3 2023 Net Sales (000) | 9M 2024 Net Sales (000) | 9M 2023 Net Sales (000) |
|---|---|---|---|---|
| Advanced Products | 1,567,604 | 1,451,707 | 3,817,156 | 3,603,445 |
| Mainstream Products | 293,985 | 370,086 | 871,418 | 1,147,809 |
Sales by End Market
The company’s sales are also segmented by end market, highlighting areas of growth and decline:
| End Market | Q3 2024 % of Total Sales | Q3 2023 % of Total Sales | 9M 2024 % of Total Sales | 9M 2023 % of Total Sales |
|---|---|---|---|---|
| Communications | 52% | 55% | 49% | 48% |
| Automotive and Industrial | 16% | 19% | 19% | 22% |
| Computing | 16% | 14% | 18% | 17% |
| Consumer | 16% | 12% | 14% | 13% |
Cost of Sales and Gross Margin
Amkor's cost of sales for Q3 2024 was $1,589,105,000, leading to a gross profit of $272,484,000 and a gross margin of 14.6%. This represents a decrease from 15.5% in Q3 2023. For the nine months ended September 30, 2024, the gross profit was $686,502,000, yielding a gross margin of 14.6%, an improvement from 14.0% in the prior year.
Operating Expenses
Operating expenses have also seen fluctuations. For Q3 2024, selling, general, and administrative expenses amounted to $80,753,000, a 10.6% increase from $73,020,000 in Q3 2023. Research and development expenses totaled $42,364,000 in Q3 2024, a slight decrease from $43,135,000 in Q3 2023.
Operating Income and Net Income
Operating income for Q3 2024 was $149,367,000, with an operating income margin of 8.0%, down from 9.1% in Q3 2023. Net income attributable to Amkor for the same period was $122,569,000, translating to a diluted earnings per share of $0.49. For the nine months ended September 30, 2024, net income was $248,363,000, with diluted earnings per share of $1.00.
Cash Flow and Capital Expenditures
Net cash provided by operating activities for the nine months ended September 30, 2024, was $551,260,000, a decrease from $696,187,000 in the same period in 2023. Capital expenditures totaled $458,067,000 for the nine months ended September 30, 2024, compared to $511,654,000 in the prior year, focusing primarily on advanced packaging and test equipment investments.
Balance Sheet Highlights
As of September 30, 2024, Amkor's total assets were $7,029,086,000, with total liabilities of $2,831,832,000, resulting in total stockholders' equity of $4,197,254,000. Cash and cash equivalents were reported at $959,140,000, while accounts receivable stood at $1,351,817,000.
Other Income and Expenses
Other income and expenses included interest expense of $15,622,000 for Q3 2024, compared to $13,001,000 in Q3 2023. The company also reported a foreign currency loss of $7,980,000 for Q3 2024, reflecting the impact of currency exchange fluctuations on its international operations.
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Article updated on 8 Nov 2024
Resources:
- Amkor Technology, Inc. (AMKR) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Amkor Technology, Inc. (AMKR)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Amkor Technology, Inc. (AMKR)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.