Amkor Technology (NASDAQ:AMKR) closed out 2025 with fourth-quarter results that exceeded the high end of its guidance, driven by better-than-expected performance across all end markets and an outsized contribution from communications tied to strong iOS-related demand. CEO Kevin Engel, speaking on his first earnings call in the role, said the company is entering 2026 with “strong momentum,” emphasizing continued investment in advanced packaging and an expanding global manufacturing footprint.
Fourth-quarter results beat guidance as communications surprised to the upside
Amkor reported fourth-quarter revenue of $1.89 billion and EPS of $0.69, which Engel said was above the company’s guidance range. CFO Megan Faust said revenue was down 5% sequentially but up 16% year-over-year, reflecting typical seasonal patterns in communications and consumer following strong third-quarter builds, partially offset by strength in advanced automotive.
Full-year 2025 revenue rose 6% as computing and advanced packaging set records
For the full year, Amkor reported revenue of $6.7 billion, up 6%. Engel said computing continued a multi-year acceleration, automotive delivered strong advanced content growth, consumer improved, and communications “stabilized with a key socket gain.” Faust added that all end markets grew in 2025 and that the company achieved record revenue in computing.
Advanced packaging revenue also set a record, growing 7% year-over-year, driven by growth in computing, automotive, and consumer. Full-year gross profit was $939 million and gross margin was 14%, which Faust said included a 90 basis point headwind from the ramp-up of Amkor’s Vietnam facility. Operating income was $467 million (operating margin of 7%), and net income was $374 million, resulting in EPS of $1.50. EBITDA was $1.16 billion with an EBITDA margin of 17.3%.
Operationally, Engel highlighted progress in Vietnam, saying the facility reached break-even in Q4. He also noted the company broke ground on its Arizona campus, with construction of phase one underway.
2026 strategy: HDFO ramps, Korea/Taiwan expansion, Vietnam scaling, and Arizona buildout
Engel reiterated three strategic pillars: elevating technology leadership, expanding geographic footprint, and enhancing strategic partnerships. He said Amkor will continue investing in advanced packaging platforms including high-density fan-out (HDFO), flip chip, and test, which he characterized as critical to next-generation AI and high-performance computing.
For 2026, Engel said the company expects to launch new programs across those platforms. He disclosed that Amkor has two additional HDFO programs in final qualification supporting AI data centers, in addition to two HDFO PC devices previously discussed. Amkor’s Korea team is preparing to launch both new programs into high volume in the second half of 2026, and Engel said the majority of 2026 equipment investment is focused on HDFO and test.
On footprint expansion, management outlined 2026 priorities that include meeting construction milestones for Arizona, expanding advanced packaging capacity in Korea and Taiwan, and continuing to scale Vietnam. Engel said the ongoing Vietnam ramp—including migrating system-in-package (SiP) products from Korea—is expected to free manufacturing space in Korea for HDFO and test growth. He also discussed continued collaboration with ecosystem partners including foundries, fabless companies, IDMs, and OEMs, citing customer commitments that support capacity investment for at least one HDFO CPU ramp.
2026 outlook: strong Q1 growth, seasonally lower margins, and sharply higher CapEx
For the first quarter of 2026, Amkor guided revenue to $1.6 billion to $1.7 billion (midpoint $1.65 billion), which management said implies 25% year-over-year growth at the midpoint. Faust said Amkor expects strong year-over-year growth in communications, computing, and automotive and industrial. Gross margin is projected at 12.5% to 13.5%, with operating expenses expected to rise to approximately $135 million as the company continues investing in R&D. Net income is forecast at $45 million to $70 million, or EPS of $0.18 to $0.28, and the full-year effective tax rate is expected to be around 20%.
In Q&A, Faust noted that Q1 margin comparisons are affected by the Q4 asset-sale benefit, and she cited material content impacts and potential currency headwinds. She also said Q1 is typically Amkor’s seasonally lowest quarter for both top and bottom line performance. Looking to the full year, Faust said the company expects to achieve its model of roughly 30% incremental flow-through, excluding the one-time asset sale benefit.
Amkor’s planned 2026 capital expenditures of $2.5 billion to $3.0 billion drew several analyst questions. Management explained that 65% to 70% of that spend is projected for facility expansion, including phase one of the Arizona campus, while 30% to 35% is planned for HDFO, test, and other advanced packaging capacity, with remaining spend for R&D and quality programs. Engel said equipment spending supports Korea (HDFO and test) and 300mm capacity expansion in Taiwan, not U.S. manufacturing.
Faust said government incentives and investment tax credits for Arizona are expected to arrive with a lag and that the 2026 guide includes “really minimal offsets.” She also said the company expects to net those benefits over time, but they are not meaningfully reflected in 2026 guidance. In a separate funding discussion, Faust said Amkor could operate comfortably with $500 million of cash on the balance sheet, and she expects interest expense to decrease as interest is capitalized during construction, even if debt increases.
End-market and ramp commentary: data center-heavy second half, Vietnam mix shift, and compute growth
Engel said Amkor expects 2026 revenue growth to be driven by continued acceleration in computing, which the company expects to grow over 20%, along with continued strong growth in advanced automotive; the remainder of the business is expected to grow in the single digits. He also said the company is monitoring export controls and trade policies, as well as substrates, advanced silicon, and memory supply, and that these were considered in Q1 guidance.
On computing demand, Engel said the PC market appears relatively soft compared to data center. He added that Amkor expects its 2.5D and HDFO platforms to nearly triple over 2026, with one device expected to ramp to very high volume with a steep ramp profile, and a second device providing meaningful revenue though not necessarily at full volume by year-end. He also said growth is expected to be second-half loaded as CPU data center devices ramp later in the year.
On communications, Engel said the company is “pretty positive” about what it is seeing in iOS for Q1 as Amkor exits a solid launch cycle. He added that Android demand remains relatively strong with “nothing that’s concerning,” potentially helped by continued premium-tier shifts where Amkor participates more heavily.
For automotive, management said overall unit sales are expected to be roughly flat, but semiconductor content per vehicle continues to rise with hybrid and EV migration. Engel said mainstream automotive is seeing a slow recovery, while advanced automotive applications such as ADAS, infotainment, and in-vehicle computing are showing strong growth momentum.
In closing remarks, Engel said 2025 was a “pivotal year,” pointing to record advanced and computing revenue, successful HDFO ramps into high volume production, Vietnam’s Q4 break-even milestone, and the start of Arizona construction as key markers of progress heading into 2026.
About Amkor Technology (NASDAQ:AMKR)
Amkor Technology, Inc (NASDAQ:AMKR) is a leading provider of outsourced semiconductor packaging and test (OSAT) services, supporting integrated device manufacturers and semiconductor foundries worldwide. The company offers a broad range of advanced packaging solutions, including wafer bumping, flip chip, system-in-package and ball grid array technologies, designed to meet the performance, power and form-factor demands of applications across consumer electronics, automotive, communications and industrial markets.
In addition to packaging, Amkor delivers comprehensive test services such as wafer probing, final test, system-level test and digital, analog and mixed-signal testing, enabling customers to accelerate time-to-market and reduce total costs.
