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    AMKR
    Earnings call· Jun 2026(Q2 FY26)

    AMKOR TECHNOLOGY Q2 FY26 earnings call AMKR

    Jul 27, 2026 Source

    Executive summary

    Amkor Q2 FY26 — Record Revenue and Strong Profitability Driven by Advanced Packaging and AI Demand

    Amkor delivered a strong second quarter with record revenue and improved profitability, driven by broad-based demand across end markets, particularly in Computing and Automotive. The company is strategically aligning capacity with high-growth opportunities, especially in AI and HPC, through deeper customer partnerships and global footprint expansion. While facing near-term headwinds in Communications due to SiP transfers and memory constraints, Amkor remains confident in its long-term growth strategy.

    Highlights

    5

    • Q2 revenue of $1.9 billion, up 26% year-on-year, outperforming guidance.

    • Record revenue achieved in Computing and Automotive Industrial markets.

    • Earnings per share was $0.70, a significant increase from the prior year.

    • Gross margin expanded over 250 basis points sequentially to 16.8%.

    • First half 2026 revenue increased 26% year-on-year, producing a record first half.

    Concerns

    3

    • Q3 Communications revenue is expected to decline in the high single digits sequentially, departing from typical seasonal patterns.

    • Android revenue declined 20% sequentially in Q2, reflecting memory supply dynamics.

    • The SiP transfer to Vietnam will cause a headwind for one application space, extending into Q4 FY26 and H1 FY27.

    Guidance & targets

    7
    CategoryTargetConfidence
    Q3 Revenue
    $1.95 billion and $2.05 billion
    high materiality
    High
    Q3 Gross Margin
    18.5% and 19.5%
    high materiality
    High
    Q3 Operating Expenses
    approximately $140 million
    medium materiality
    High
    Full Year 2026 Effective Tax Rate
    around 20%
    medium materiality
    High
    Q3 Net Income
    $180 million and $205 million
    high materiality
    High
    Q3 EPS
    $0.72 and $0.82
    high materiality
    High
    Full Year 2026 CapEx
    $2.5 billion and $3 billion
    high materiality
    High

    Segment performance

    4
    SegmentRevenueYoYQoQMargin
    Communications
    Driven by double-digit growth in the iOS ecosystem, while Android revenue declined due to memory supply dynamics. Expected to decline high single digits sequentially in Q3 due to SiP move, memory constraints, and build pattern changes.
    iOS ecosystem: strengthAndroid revenue: declined 20% sequentially
    		—increased6% sequentially—
    Computing
    Reached a new quarterly record in Q2, driven by growth across a broad customer base for data center applications. Expected to accelerate to nearly 30% sequentially in Q3, driven by AI data center demand and HDFO CPU ramp.
    		recordstrong double-digit growth20% sequentially—
    Automotive and Industrial
    Achieved a new quarterly record in Q2, with ADAS as the primary driver, supported by higher semiconductor content and strong demand for advanced packaging. Expected to grow mid-single digits sequentially in Q3.
    ADAS: primary driver of growth
    		recordstrong double-digit growth17% sequentially—
    Consumer
    Increased sequentially due to broad-based demand primarily within IoT applications. Expected to grow in the mid-teens percent sequentially in Q3 driven by continued strength in IoT demand.
    IoT applications: continued strength
    		—improved15% sequentially—

    Operational metrics

    17
    Gross profit
    $319 millionup 33% compared to Q1
    Q2 FY26

    Gross profit for the quarter.

    Gross margin
    16.8%expanding over 250 basis points sequentially
    Q2 FY26

    Gross margin for the second quarter.

    Operating expenses
    $119 million
    Q2 FY26

    Operating expenses for Q2, came in as expected.

    Operating income
    $200 millionincreased 100%
    Q2 FY26

    Operating income for the second quarter.

    Operating income margin
    10.5%
    Q2 FY26

    Operating income margin for the second quarter.

    Effective tax rate
    14%lower than expected
    Q2 FY26

    Effective tax rate for the second quarter.

    Net income
    $174 million
    Q2 FY26

    Net income for the second quarter.

    EPS
    $0.70increased 100%
    Q2 FY26

    Earnings per share for the second quarter.

    EBITDA
    $400 million
    Q2 FY26

    EBITDA for the second quarter.

    EBITDA margin
    21%
    Q2 FY26

    EBITDA margin for the second quarter.

    Cash and short-term investments balance
    $2.5 billion
    Q2 FY26

    Cash and short-term investments balance as of quarter end.

    Total liquidity
    $3.6 billion
    Q2 FY26

    Total liquidity as of quarter end.

    Total debt
    $2.5 billion
    Q2 FY26

    Total debt as of quarter end, increased due to $1.15 billion convertible debt issuance.

    Debt to EBITDA ratio
    1.8x
    Q2 FY26

    Debt to EBITDA ratio as of quarter end.

    R&D spend as % of capital
    3-5%
    Ongoing

    Typical R&D spend, expected to continue at this level.

    Full Year Gross Margin
    around 17.5%
    FY26

    Analyst estimate for full year gross margin, confirmed by management.

    Full Year EPS
    plus or minus $2.50
    FY26

    Analyst estimate for full year EPS, confirmed by management.

    Industry KPIs

    5
    MetricValueDetails
    Ai data center revenueAccelerating
    Fab capacity utilizationHigh 70s%
    Design wins socket pipeline4products
    Node platform ramp scheduleNewest data center CPU program
    End market segment revenue mixComputing: record; Automotive and Industrial: record; Communications: up 6% sequentially (iOS), Android down 20% sequentially; Consumer: up 15% sequentially

    Product announcements

    3
    ProductTypeDetails
    Data Center CPU Programmilestone
    HDFO Programsmilestone
    2.5D Productslaunch

    Deals & partnerships

    2
    TSMC10-year advanced packaging agreement to expand advanced packaging and test capacity and strengthen the U.S. semiconductor supply chain.10-year

    Combines TSMC's leading-edge wafer fabrication capabilities with Amkor's advanced packaging and test expertise.

    NVIDIAMulti-year strategic partnership focused on advanced packaging and test supporting next-generation AI infrastructure.$1.5 billionmulti-year (5 to 10 years)

    Aligns long-term technology roadmaps and reinforces the important role advanced packaging plays in enabling computing platforms.

    Capital programs

    5
    Arizona Facility Phase 1underway
    Period spend: 65-70% of FY26 CapEx ($2.5B-$3B total)

    Benefit: high-volume advanced packaging and test capabilities in the United States

    Phase 1 construction continues to progress and is a key component of long-term growth strategy. Projections now show Phase 1 as fully committed, with future expansion plans under evaluation.

    Korea Songdo Campus New Assembly and Test Buildingon schedule

    Benefit: new assembly and test building

    Construction remains on schedule for completion of a new assembly and test building on the Songdo campus.

    Korea Gwangju Campus Expansionunderway

    Benefit: incremental manufacturing space, cleanroom capacity to support data center and advanced packaging growth opportunities

    Planned expansion is underway to provide cleanroom capacity for data center and advanced packaging growth.

    Vietnam Facility Expansionunderway

    Benefit: increased SiP and NAND memory capacity

    Continuing to build out the facility through a phased expansion approach to support Communications and Consumer end markets.

    Portugal and Taiwan Cleanroom Expansionunderway

    Benefit: incremental cleanroom expansion and equipment installations

    Incremental cleanroom expansion and equipment installations are underway in Portugal and Taiwan.

    Risks & headwinds

    3
    Memory Supply DynamicsQ2 FY26, Q3 FY26, ongoing

    Android revenue declined 20% sequentially in Q2. Q3 Communications revenue expected to decline high single digits sequentially.

    Mitigation: Amkor's global manufacturing footprint provides flexibility to support evolving customer requirements.

    SiP Transfer HeadwindQ3 FY26, Q4 FY26, H1 FY27

    Contributes to Q3 Communications revenue decline (high single digits sequentially). Headwind for one application space will last into Q4 FY26 and H1 FY27.

    Mitigation: Strategic move to optimize operational efficiencies, improve cost structure, and free up space in Korea for high-value advanced products.

    U.S. Manufacturing Burden2028

    Will be a drag for a little while, impacting gross margin and operating margin in 2028.

    Mitigation: Longer-term targets contemplate these headwinds.

    What to watch in Q3 FY26

    5

    Communications Revenue Trajectory

    Q4 FY26
    CurrentExpected high single-digit sequential decline in Q3 FY26.
    TargetStabilization or recovery from SiP transfer and memory constraints.

    Why it matters

    Communications is Amkor's largest end market, and its recovery from current headwinds is key for overall revenue growth.

    For the Third Quarter, we expect Communications revenue to decline in the high single digits sequentially which is a departure from the typical seasonal patterns. This outlook reflects three primary factors: first, the strategic initiative outlined by Kevin to move SiP to Vietnam; second, ongoing memory supply constraints; and third, build pattern changes.

    Q&A highlights

    6

    Asked for clarification on the Q3 smartphone outlook, specifically the split between Android and iOS, and the impact and duration of the SiP move to Vietnam on Communications revenue.

    Management explained that Q3 Communications decline is due to market-driven dynamics (memory constraints, build patterns) accounting for 50%, and the SiP transfer to Vietnam for the other 50%. Android showed weakness in Q2 and is expected to continue. The SiP headwind for one application space will extend into Q4 and H1 next year, not just Q3.

    “There is one application space where we see that this headwind will last longer. So it's not a 1-quarter dynamic. It's probably going to extend into Q4 and even into the first half of next year.”

    asked by Randy Abrams · answered by Kevin Engel

    2 min read5 chapters

    Detailed Narrative

    01

    Strategic Partnerships & Industry Transition

    Amkor announced a 10-year advanced packaging agreement with TSMC to expand capacity and strengthen the U.S. semiconductor supply chain, combining TSMC's wafer fabrication with Amkor's advanced packaging and test expertise. Additionally, a multi-year strategic partnership with NVIDIA focuses on advanced packaging and test for next-generation AI infrastructure, involving a $1.5 billion prepayment. These agreements demonstrate a broader industry transition where advanced packaging is critical for system performance, driving deeper customer engagement, earlier collaboration, and longer-term alignment with strategic partners.

    02

    Technology Leadership & Advanced Packaging

    Amkor is investing in advanced packaging and test platforms, with active programs spanning 2.5D, high-density fan-out (HDFO), and emerging technologies like co-packaged optics. The newest data center CPU program began ramping in Q2 and is expected to scale throughout the second half of the year. The company is engaged in several HDFO programs this year, with a total of four 2.5D and four HDFO products expected to launch in FY26, leveraging integrated turnkey solutions to reduce cycle time and accelerate product ramps.

    03

    Global Footprint Expansion

    Phase 1 construction of the Arizona facility continues to progress and is now fully committed, with future expansion plans under evaluation. In Korea, a new assembly and test building on the Songdo campus is on schedule for completion by year-end, and expansion on the Gwangju campus will provide cleanroom capacity for data center and advanced packaging growth into 2028 and beyond. Incremental cleanroom expansion and equipment installations are also underway in Vietnam, Portugal, and Taiwan, including a phased expansion in Vietnam to increase SiP and NAND memory capacity.

    04

    SiP Relocation to Vietnam

    The strategic initiative to move SiP production from Korea to Vietnam is designed to optimize operational efficiencies, improve cost structure, and free up capacity in Korea for rapidly scaling Computing programs. While this transfer is causing a near-term headwind📎 in Communications revenue for Q3, and for one application space extending into Q4 and H1 next year, it is part of a longer-term strategy to align capacity with evolving customer requirements and enhance competitiveness.

    05

    Financial Model Leverage

    Amkor's first half 2026 performance demonstrated significant financial leverage, with revenue increasing 26% year-on-year, gross margin expanding 360 basis points, operating income more than doubling, and earnings per share more than tripling compared to the first half of 2025. This improvement reflects the benefits of higher utilization and a richer mix of advanced packaging technologies, reinforcing confidence in the company's long-term earning power.

    AI-generated summary of the company’s earnings call. Not investment advice.