Core Viewpoint - Amkor Technology's Q2'24 results and guidance were below expectations, leading to an 18% drop in shares, but the company is considered to have strong value due to its market position and advanced packaging solutions [1] Company Overview - Amkor Technology is the second largest outsourced assembly and test supplier, focusing on advanced packaging solutions which account for three-quarters of its revenues [2] - The company generated 6.5billioninrevenuesfor2023,withahigh−single−digitrevenueCAGRoverrecentyears[2]−MajorcustomersincludeApple,QUALCOMM,Skyworks,NVIDIA,andNXP[2]Q2Results−InQ2′24,Amkorreportedrevenuesof1.46 billion, flat year-over-year but exceeding analyst estimates by 10million[3]−EBITDAwas247 million, with an EPS of 0.27,beatingconsensusestimatesby5cents[3]OperatingIncomeandEPS−EPSof0.27 was 3 cents higher than the previous quarter and 1 cent higher than Q2 last year [4] - Operating margins expanded to 5.0%, with a capex forecast of 750millionforincreasingadvancedpackagingcapacity[4]MarketDemand−Q2′24resultsweredrivenbystrongdemandintheCommunicationsandComputingendmarkets,particularlyforadvancedpackaginginpremiumtechsmartphonesandAIsolutions[5]−TheCommunicationssegmentaccountsfor48400 million in grants under the CHIPS and Science Act [8] - The company is diversifying manufacturing capacity across the U.S. and Vietnam, positioning itself well for semiconductor on-shoring trends [8] Financial Position - At the end of the quarter, Amkor had cash and cash equivalents of 1.5billionandliquidityof2.2 billion, with total debt of 1.1billion,resultinginaTotalDebttoEBITDAratioof1.0x[9]ValuationandGrowthPotential−AnalystsprojectEPSgrowthfrom1.46 in 2023 to $3.20 by 2026, indicating strong long-term growth potential [12] - Amkor's current valuation at 7.6x EV/EBITDA is above its historical average, justified by industry dynamics and on-shoring trends [12]