Inquired about the pipeline for Computing, specifically the strong ramp of the new CPU project, and the timing and expansion of other projects like HDFO and bridge technologies into 2027.

Management confirmed traction for 4 2.5D and 4 HDFO products launching this year, with the current CPU program being the largest. Bridge-type technologies are expected around 2028. The pipeline continues to expand with various projects ramping throughout the year. “If I think forward, you mentioned bridge-type technologies, again, that would be more of a 2028 type timeline. So still a little bit of time to go there.”

Followed up on the SiP issue, asking if there was any Q2 benefit from the transfer and what to expect for Q4 Communications revenue given the initial Q3 impact.

Management stated there was no direct Q2 benefit from the SiP transfer, though there might have been some general Communications pull-ins. For Q4, they expect Communications to continue with some softness, not a significant lift, due to the ongoing SiP headwind and overall market dynamics. “If we look forward to Q4, we would expect that communications in general will continue to have some good terminology, but maybe a little bit of softness. So we wouldn't expect to see a significant lift like we typically would in the second half even going into Q4.”

Asked about the impact of the NVIDIA agreement on R&D and operating expenses, and the timing of the $1.5 billion prepayment receipt and its balance sheet implications.

Management clarified that the NVIDIA agreement does not imply a step-function change in R&D spend, which typically ranges 3-5% of capital. The $1.5 billion is a prepayment to be received in 2027 and returned as services are provided in the U.S., with the agreement longevity expected to be between 5 to 10 years. “The structure here is that this is a prepayment that would basically be received in 2027 and returned back to the customer as we provide the services in the U.S. So with that, the longevity of agreement can fluctuate a bit, we would expect it to be between 5 to 10 years.”

AMKR

Amkor (AMKR) Q2 FY26 earnings call: guidance and Q&A

Earnings call· Jun 2026 (Q2 FY26)· Information Technology· Jul 27, 2026

Source: earnings call transcript

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

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

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

Category	Target	Timeline	Confidence
Q3 Revenue	$1.95 billion and $2.05 billion high materiality	Q3 · FY26	High
Q3 Gross Margin	18.5% and 19.5% high materiality	Q3 · FY26	High
Q3 Operating Expenses	approximately $140 million medium materiality	Q3 · FY26	High
Full Year 2026 Effective Tax Rate	around 20% medium materiality	FY26	High
Q3 Net Income	$180 million and $205 million high materiality	Q3 · FY26	High
Q3 EPS	$0.72 and $0.82 high materiality	Q3 · FY26	High
Full Year 2026 CapEx	$2.5 billion and $3 billion high materiality	FY26	High

Segment performance

Segment	Revenue	YoY	QoQ	Margin
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	—	increased	6% 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.	record	strong double-digit growth	20% 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	record	strong double-digit growth	17% 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	—	improved	15% sequentially	—

Product announcements

Product	Type	Timeline
Data Center CPU Program	milestone	Q2 FY26
HDFO Programs	milestone	FY26
2.5D Products	launch	FY26

Deals & partnerships

TSMC 10-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.

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

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

Capital programs

Arizona Facility Phase 1 underway

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 Building on 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 Expansion underway

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 Expansion underway

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 Expansion underway

Benefit:incremental cleanroom expansion and equipment installations

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

Risks & headwinds

Memory Supply Dynamics Q2 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 Headwind Q3 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 Burden 2028

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

Communications Revenue Trajectory

Q4 FY26

Current Expected high single-digit sequential decline in Q3 FY26.

Target Stabilization 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.

Find out whether AMKR delivers this. Inve re-checks your case every morning.

Q&A highlights

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 read 5 chapters

Detailed narrative

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.

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.

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.

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.

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.

Summary of the company's earnings call; see how call summaries are prepared. Not investment advice.