Investment Rating - The report maintains an investment rating of "Outperform the Market" for the semiconductor industry [4]. Core Insights - The semiconductor packaging sector has shown significant improvement in gross margins, with leading companies like Huada and Liyang experiencing notable growth [12][13]. - AI continues to be the primary driving force behind industry growth, with major OSAT players focusing on advanced packaging solutions [6][18]. - The report highlights the strong performance of key companies such as Tongfu Microelectronics and ASE Technology, driven by robust demand in AI and automotive electronics [50][47]. Summary by Sections 1. Overview - The gross margin of the semiconductor packaging sector has significantly increased, surpassing levels seen in 2024. In Q2 2025, the gross margin reached 21.44%, up 4.52 percentage points from the previous quarter [12][13]. 2. OSAT - **ASE Technology**: In Q2 2025, ASE's revenue reached 132.13 billion RMB, with a year-on-year growth of 6.68% and a quarter-on-quarter increase of 9.55%. The advanced packaging and testing business has shown strong growth, accounting for over 10% of total revenue [18][19]. - **Anke Technology**: Reported revenue of 107.79 billion RMB in Q2 2025, with a quarter-on-quarter growth of 14.3% and a year-on-year increase of 3.42%. The company is expanding its testing capabilities and focusing on advanced packaging solutions [31][39]. - **Powertech Technology**: Achieved a revenue of 42.26 billion RMB in Q2 2025, with a quarter-on-quarter growth of 16.56%. The company is set to restart significant capital expenditures to expand its production capacity [40][44]. 3. Testing - **King Yuan Electronics**: Capital expenditures surged to 26.62 billion RMB in Q2 2025, reflecting a 149.64% quarter-on-quarter increase and a 474.34% year-on-year increase. All application segments reported growth [2][29]. - **Weichai Technology**: Continued to enhance its high-end testing capacity, with strong revenue and profit growth in H1 2025, driven by AI and automotive electronics [5][35]. 4. Equipment - AI remains the main driver for industry development, with significant growth in TCB, hybrid bonding, and SoC testing machines. ASMPT reported a 50% year-on-year increase in TCB equipment orders in H1 2025 [5][4]. 5. Market Trends - The smartphone market is experiencing regional differentiation, with strong growth in specific areas such as the Middle East and Africa. The PC market saw an 8.4% year-on-year increase in shipments in Q2 2025 [6][11]. 6. Investment Recommendations - The report suggests focusing on companies involved in packaging, testing, and equipment, including ASE Technology, Tongfu Microelectronics, and ASMPT, as they are expected to benefit from the ongoing advancements in AI and semiconductor technology [6][50].

Core Viewpoint - Apple CEO Tim Cook announced that Amkor Technology will assist Apple in advancing its chip packaging business and supply chain reshoring efforts, leading to an approximately 8% increase in Amkor's stock price during pre-market trading [1] Group 1: Company Developments - Amkor Technology is set to handle the chip packaging work for Apple, following the wafer manufacturing process conducted by TSMC [1] - Amkor recently completed a $500 million senior bond pricing issuance with a coupon rate of 5.875%, maturing in 2033 [1] Group 2: Industry Context - The semiconductor supply chain will involve GlobalWafers in Texas supplying TSMC, which will manufacture the wafers, followed by Amkor in Arizona for packaging [1] - Applied Materials plays a critical role in the semiconductor equipment sector, contributing to the overall localization efforts of the semiconductor industry in the U.S. [1]

Core Viewpoint - Amkor Technology has announced the pricing of $500 million of its 5.875% senior notes due in 2033 and its intention to redeem senior notes due in 2027 [1] Group 1 - The company is issuing $500 million in senior notes with a fixed interest rate of 5.875% [1] - The senior notes are set to mature in 2033, indicating a long-term financing strategy [1] - The intention to redeem the senior notes due in 2027 suggests a proactive approach to managing debt obligations [1]

Core Viewpoint - Amkor Technology has announced a proposed offering of senior notes due in 2033 and plans to redeem senior notes that are due in 2027 [1] Group 1 - The company is looking to raise capital through the issuance of senior notes, which indicates a strategy to strengthen its financial position [1] - The redemption of the 2027 senior notes suggests a proactive approach to managing debt and potentially reducing interest expenses [1]

Core Viewpoint - Amkor Technology is set to build a $2 billion advanced packaging and testing facility in Peoria, Arizona, expected to begin production in early 2028, marking a significant step in the U.S. semiconductor supply chain [2][3] Group 1: Facility and Investment - The new facility will occupy 104 acres and aims to address the bottleneck in semiconductor packaging, which has been a limiting factor for companies like Nvidia in producing AI chips [2] - The project received approval from the Peoria City Council on August 29, with plans modified to utilize a larger site in the city's innovation core [2] Group 2: Industry Context - The facility represents a major shift in the U.S. semiconductor landscape, as it aims to catch up with the advanced packaging capabilities predominantly held by Taiwan and South Korea [2] - Amkor's new plant will support high-performance packaging platforms, including TSMC's CoWoS and InFO technologies, which are critical for Nvidia's data center GPUs and Apple's latest chips [3] Group 3: Strategic Partnerships and Support - TSMC has signed a memorandum to transfer its packaging operations from its Phoenix fab to Amkor, reducing the turnaround time for wafers that currently takes weeks to return from Asia [3] - The expansion is partially funded by the CHIPS Act, which includes $407 million and federal tax incentives, aimed at maintaining the U.S. position in the increasingly complex chip industry [3] Group 4: Challenges Ahead - Despite the progress, the opening date in 2028 indicates that the industry may continue to face challenges, particularly in alleviating GPU shortages and AI server bottlenecks, which still rely on established Asian packaging lines [3] - Amkor faces a significant workforce challenge, with an estimated shortage of 70,000 to 90,000 workers needed for all planned U.S. fabs, highlighting the ongoing talent crisis in the semiconductor sector [3]

Summary of Key Points from the Semiconductor Industry Research Industry Overview - The research focuses on the global semiconductor industry, particularly the front-end Wafer Fab Equipment (WFE) and back-end advanced packaging supply chains, highlighting the challenges posed by globalization and geopolitics [2][6][32]. Core Companies Involved - Major players in the semiconductor industry include TSMC, UMC, Samsung Electronics, Intel, ASML, Applied Materials (AMAT), Lam Research, Tokyo Electron (TEL), KLA, ASE, Amkor, JCET, Disco, Besi, ASMPT, K&S, Semes, Hanmi, Hanwha, EVG, SUSS, Teradyne, SCREEN, Canon, Nikon, and Lasertec [19][49]. Key Trends and Insights 1. **Advanced Packaging Demand**: The demand for advanced packaging technologies such as 2.5D/3D packaging, Hybrid Bonding, and CoWoS is surging due to the rise of AI and high-performance computing (HPC) applications [2][8][10]. 2. **Moore's Law and Packaging**: As Moore's Law slows, advanced packaging has become the primary pathway for sustaining semiconductor performance gains, with technologies like CoWoS and SoIC leading the way [3][38][49]. 3. **Geopolitical Challenges**: Geopolitical pressures and government policies, such as the CHIPS Act, are reshaping the supply chain dynamics, pushing companies to diversify their manufacturing and service locations [7][44][60]. 4. **Localization Trends**: There is a significant trend towards localization in the semiconductor supply chain, with companies establishing production bases in North America, Europe, Japan, and Southeast Asia to mitigate risks [7][32][60]. 5. **Material Innovation**: The shift from equipment-centric to materials-centric innovation is becoming critical, with new materials like UV resins, advanced thermal interface materials, and low-Dk dielectrics emerging as strategic differentiators [15][47][49]. Market Dynamics - The WFE market is projected to grow from approximately USD 13.3 billion in 2024 to USD 16.5 billion by 2029, with a significant portion of revenue coming from equipment shipments [49][72]. - The back-end packaging market is also expanding, with the TCB equipment market estimated at around USD 936 million and HB equipment projected at USD 397 million by 2030 [53]. Challenges and Opportunities 1. **Cost and Pricing Pressures**: Equipment suppliers face challenges related to cost, pricing, and sustainability, which are becoming critical factors in maintaining competitiveness [8][29][49]. 2. **Technological Integration**: The ability to integrate differentiated materials and technologies will increasingly define competitiveness in the semiconductor industry [39][49]. 3. **Sustainability Goals**: Companies are embedding sustainability into their operational metrics, with ESG (Environmental, Social, and Governance) goals becoming essential for process efficiency and cost competitiveness [45][49][69]. Conclusion - The semiconductor industry is undergoing significant transformations driven by technological advancements, geopolitical factors, and evolving market demands. Companies that can effectively navigate these challenges while innovating in materials and processes are likely to secure a competitive edge in the future [49][72].

Group 1 - Amkor Technology, Inc. (AMKR) is experiencing significant activity in the options market, particularly with the Oct 17, 2025 $34.59 Put showing high implied volatility, indicating potential for a major price movement [1] - Implied volatility reflects market expectations for future stock movement, suggesting that investors anticipate a significant event that could lead to a rally or sell-off [2] - Analysts have a mixed view on Amkor Technology, currently holding a Zacks Rank 3 (Hold) in the Electronics - Semiconductors industry, which is in the bottom 30% of the Zacks Industry Rank [3] Group 2 - The high implied volatility for Amkor Technology may indicate a developing trading opportunity, as options traders often seek to sell premium on such options to capture decay [4]

Investment Rating - The report assigns a strong buy rating for Amkor, anticipating a performance that will exceed the benchmark index by over 20% in the next six months [50]. Core Insights - Amkor's Q2 2025 performance significantly surpassed expectations, with revenue reaching $1.51 billion, a 14% quarter-over-quarter increase, and a net profit of $54 million, reflecting a 157% increase from the previous quarter [2][8]. - The company expects Q3 2025 revenue to be between $1.875 billion and $1.975 billion, indicating a projected 27% quarter-over-quarter growth, driven by strong seasonal demand in the communications sector and growth in computing markets [4][17]. Summary by Sections Overall Performance - In Q2 2025, Amkor achieved revenue of $1.51 billion, with a gross profit of $182 million and a gross margin of 12.0%. The net profit was $54 million, which included a $32 million net gain related to the acquisition of Nanium, contributing $0.07 to earnings per share [1][2][8]. Performance by End Market 1. **Communications Market**: Revenue grew by 15% quarter-over-quarter, primarily driven by the iOS ecosystem. The company anticipates strong performance in Q3 due to the launch of next-generation flagship smartphones [3][10]. 2. **Automotive and Industrial Market**: Revenue increased by 11% quarter-over-quarter, marking a turning point after eight consecutive quarters of year-over-year decline, with a 6% year-over-year growth in Q2 [3][11]. 3. **Consumer Electronics Market**: Revenue rose by 16% quarter-over-quarter, supported by increased market share in wearable devices and a recovery in demand across traditional product categories [3][12]. 4. **Computing Market**: Revenue increased by 16% from Q1 2025, driven by new personal computer launches and growth in memory business, with expectations for continued growth in Q3 [3][14]. Q3 2025 Guidance - Amkor projects Q3 2025 revenue between $1.875 billion and $1.975 billion, with a gross margin expected to range from 13% to 14.5%. The net profit is anticipated to be between $85 million and $120 million, reflecting a 90% quarter-over-quarter increase [4][17].

Group 1: Industry Overview - The semiconductor industry is experiencing a moderate recovery, with Q1 2025 global sales reaching $167.7 billion, a year-on-year increase of 18.8% [66] - In May 2025, global semiconductor sales were $59 billion, showing a year-on-year growth of 19.8% [66] - The recovery is driven by strong demand in the Americas and Asia-Pacific regions, particularly in high-end computing and storage due to AI [66] Group 2: Company Performance - Texas Instruments reported Q2 revenue of $4.45 billion, a 9% quarter-on-quarter increase and a 16% year-on-year increase, driven by a broad recovery in the industrial market [6] - STMicroelectronics experienced a 14.4% year-on-year decline in Q2 revenue to $2.76 billion, resulting in a net loss of $133 million due to restructuring costs [7] - NXP's Q2 revenue was $2.93 billion, a 6% year-on-year decline but a 3% quarter-on-quarter increase, with all key end markets performing better than expected [9] Group 3: Specific Company Highlights - Qualcomm's Q3 revenue increased by 10% year-on-year to $10.365 billion, with automotive chip revenue growing by 21% [11] - MediaTek's Q2 revenue was NT$150.37 billion, a 1.9% quarter-on-quarter decline but a 4.3% year-on-year increase, driven by demand for AI and automotive chips [13] - Samsung's Q2 operating profit fell by 55.2% year-on-year to 4.7 trillion KRW, marking a six-quarter low due to AI chip sales issues [14][15] Group 4: Market Trends - The industrial market is showing signs of recovery, while the automotive market is lagging behind by about a year [6] - AI-related demand continues to be strong, particularly in high-performance computing and storage sectors [66] - The overall semiconductor market is expected to see varied recovery rates across different sectors, with traditional markets like industrial applications rebounding first [66] Group 5: Financial Performance of Key Players - SK Hynix reported record high Q2 revenue of 22.232 trillion KRW, driven by strong demand for AI-related memory products [16] - Micron Technology's Q3 revenue reached $9.3 billion, a 37% year-on-year increase, attributed to record DRAM revenue [19] - TSMC's Q2 revenue was approximately NT$933.8 billion, with a net profit increase of 60.7% year-on-year [43]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-Q ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Quarterly Period Ended June 30, 2025 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number 000-29472 AMKOR TECHNOLOGY, INC. (Exact name of registrant as specified in its charter) (State or other jurisdiction of incorporation or organiz ...