Amkor Technology, Inc. (AMKR) | The Buildout — AI Infrastructure

——Mkt cap — · 52-wk —–— · YTD — · delayed
Updated Aug 12, 2026Q2 FY2026 reviewed
Amkor packages and tests semiconductor chips, including advanced packaging for AI data-center processors.
Q2 revenue +26% YoY
Record $1.9B quarter, above the high end of guidance.
Q3 GM 18.5–19.5%
Q2 gross margin 16.8%, up >250 bps sequentially.
Computing ~30% QoQ guide
AI data center and HDFO CPU ramp drive Q3 growth.
Comms Q3 down HSD
SiP migration and memory supply push Q3 below seasonality.
The Buildout Takeaway
The pills point to a two-speed business: advanced packaging demand is broad and accelerating, while the largest end market is in a deliberate, multi-quarter transition. Whether compute growth can absorb that transition and the coming Arizona margin cost is the central question.
Analyst coverage
14 analysts·6 Buy7 Hold1 Sell
Coverage is thin — only 3 price estimates, so no target is shown
Management guidance
Q3 2026 revenue $1.95B–$2.05B · gross margin 18.5%–19.5% · EPS $0.72–$0.82 · FY2026 CapEx $2.5B–$3.0B
Important: The Buildout is a data analytics platform. Content is generated by algorithms and AI agents using public filings, earnings transcripts, and market data. This is not personalized investment advice.
Our View

The Verdict

Amkor is the largest U.S.-headquartered outsourced semiconductor assembly and test provider. It takes finished silicon wafers, packages the die into usable chips, and tests them against specifications. As transistor scaling slows, the package becomes where power, signal integrity, thermal management, and performance gains increasingly come from, which places Amkor on the critical path of the AI data-center buildout.

Market Cap—
Revenue (TTM)$7.5B
Revenue Growth+17.9%
EBITDA Margin (TTM)17.8%
Net Debt$35M
Earnings Beats5 of 7
P/E (TTM)—
EV/EBITDA (TTM)—

What We Like

  • Advanced packaging for data center is expected to nearly triple in 2026 versus 2025.
  • Q2 computing set a record and Q3 is guided to nearly 30% sequential growth, driven by AI data-center demand and the HDFO CPU ramp.
  • Gross margin expanded from 14.2% in Q1 2026 to 16.8% in Q2, with Q3 guided to 18.5%–19.5%.
  • TSMC's 10-year agreement and NVIDIA's multi-year partnership add long-horizon, partly pre-funded capacity commitments.
  • Contract liabilities include $283.8M expected to be recognized over 1–5 years and $26.8M over 5–10 years, despite formal no-backlog language.

What We’re Watching

  • Q3 communications guided down high single digits sequentially; management says the SiP headwind probably extends into Q4 2026 and first-half 2027.
  • Arizona operating income margin dilution of 1%–2% expected beginning in 2027, with modest revenue through 2028 and scaling into 2029–2030.
  • Q2 profit included a $21M real estate gain and a 14% tax rate from $14M net discrete tax benefits.
  • ASE, JCET, and Powertech are the named competitors in the 10-K, and TSMC is simultaneously partner under the 10-year Arizona agreement, front-end wafer supplier, and competitor in advanced packaging (CoWoS).
Bottom Line

The thesis is strengthening on the advanced-packaging side: the HDFO ramp arrived, computing is accelerating, and long-term partnerships are converting the model from short-cycle OSAT to partly pre-funded capacity. It is weakening at the same time in the largest end market, with communications declining and the SiP transition extending into 2027. The open question is whether the compute ramp can absorb the communications drag and the upcoming Arizona margin cost.

Next upThe next hard test is Q3 2026, when management's guidance implies computing nearly 30% sequential growth and gross margin of 18.5%–19.5%. After that, Korea Songdo assembly/test building completion is targeted for end of 2026 to support data-center demand into 2027.
Last Quarter — Q2 FY2026

Earnings Beat

Amkor reported record Q2 2026 revenue of $1.9 billion, up 26% year over year and 13% sequentially, above the high end of guidance. Gross margin was 16.8%, up more than 250 basis points sequentially, and EPS was $0.70. EBITDA was $400 million.

MetricQ2 FY2026Q1 FY2026Q2 FY2025YoY
Revenue$1.9B$1.7B$1.5B+25.6%
Gross margin16.8%14.2%12.0%+480bps
EBITDA$380M$271M$251M+51.3%
EPS$0.70$0.33$0.22+217.2%
Operating margin10.5%6.0%n/a—
The level of long-term collaboration and visibility we are experiencing today is meaningfully different from previous industry cycles.— Kevin Engel, CEO, July 27, 2026

Management tone: Management shifted from 'constructive pricing environment' language on Q1 to stronger forward-visibility language on Q2. The CEO said long-term collaboration and visibility are meaningfully different from previous cycles, and management directly confirmed an analyst's arithmetic that full-year 2026 could land near the 2028 Investor Day targets. Management was direct on the communications decline, but declined to add detail on Intel EMIB and did not confirm the $1.5B NVIDIA prepayment framing.

Management Guidance

Q3 2026 guidance is revenue of $1.95B–$2.05B, gross margin of 18.5%–19.5%, and EPS of $0.72–$0.82. Management guided computing to nearly 30% sequential growth, communications down high single digits sequentially, automotive/industrial to mid-single-digit sequential growth, and consumer to mid-teens sequential growth. FY2026 CapEx was reaffirmed at $2.5B–$3.0B, with a full-year effective tax rate expected around 20%.

Business Trajectory

Trajectory

Revenue is accelerating into a record first half: Q1 2026 was $1.685B and Q2 2026 was $1.898B, with Q2 up 26% year over year. Gross margin stepped from 14.2% in Q1 to 16.8% in Q2, and Q3 is guided to 18.5%–19.5%. The drivers are utilization moving from the 50s into the 70s and a mix shift toward higher-value computing, while communications is deliberately declining as SiP capacity moves to Vietnam. Q2 operating income of about $200M included a $21M real estate gain, so the underlying run-rate is lower.

Revenue & Margin Trajectory
RevenueGross margin$0$1.0B$2.0B$1.1B$1.0B$914M$989M$1.1B$1.1B$1.0B$1.1B$1.1B$1.1B$895M$895M$1.1B$1.2B$1.2B$1.2B$1.4B$1.4B$1.3B$1.4B$1.7B$1.7B$1.6B$1.5B$2.1B$1.9B$1.5B$1.5B$1.8B$1.8B$1.4B$1.5B$1.9B$1.6B$1.3B$1.5B$2.0B$1.9B$1.7B$1.9B20%17%Q3'16Q4Q1'17Q2Q3Q4Q1'18Q2Q3Q4Q1'19Q2Q3Q4Q1'20Q2Q3Q4Q1'21Q2Q3Q4Q1'22Q2Q3Q4Q1'23Q2Q3Q4Q1'24Q2Q3Q4Q1'25Q2Q3Q4Q1'26Q2
RevenueGross margin$0$1.0B$2.0B$1.1B$1.0B$914M$989M$1.1B$1.1B$1.0B$1.1B$1.1B$1.1B$895M$895M$1.1B$1.2B$1.2B$1.2B$1.4B$1.4B$1.3B$1.4B$1.7B$1.7B$1.6B$1.5B$2.1B$1.9B$1.5B$1.5B$1.8B$1.8B$1.4B$1.5B$1.9B$1.6B$1.3B$1.5B$2.0B$1.9B$1.7B$1.9B20%17%Q3'16Q4Q1'17Q2Q3Q4Q1'18Q2Q3Q4Q1'19Q2Q3Q4Q1'20Q2Q3Q4Q1'21Q2Q3Q4Q1'22Q2Q3Q4Q1'23Q2Q3Q4Q1'24Q2Q3Q4Q1'25Q2Q3Q4Q1'26Q2
Gross margin as reported.
Share Price — 12 Months
$25$50$75$052-wk high $86Aug '25NovFeb '26MayAug '26
52-week range $24–$86.
Share Price — 12 Months
$25$50$75$052-wk high $86Aug '25NovFeb '26MayAug '26
52-week range $24–$86.
The Numbers

The Model

The model projects FY+1 revenue of $7,700M and EBITDA of $1,363M, a 17.7% margin. FY+2 revenue is projected at $8,950M with EBITDA of $1,700M, a 19.0% margin. The near term is anchored by the record first half and the Q3 computing ramp; FY+2 is driven by continued advanced packaging momentum as management's pipeline scales.

Revenue & EBITDA Projections
REVENUE$6.7B$7.7B$8.9BFY25FY+1 (E)FY+2 (E)EBITDA & MARGIN$1.1B$1.4B$1.7B19.0%FY25FY+1 (E)FY+2 (E)
REVENUE$6.7B$7.7B$8.9BFY25FY+1 (E)FY+2 (E)EBITDA & MARGIN$1.1B$1.4B$1.7B19.0%FY25FY+1 (E)FY+2 (E)
Solid bars are reported actuals; outlined bars are model projections — not company guidance.
MetricFY2025Next FY (E)Following FY (E)
Revenue$6.7B$7.7B$8.9B
YoY Growth—+14.8%+16.2%
EBITDA$1.1B$1.4B$1.7B
EBITDA Margin16.5%17.7%19.0%

Projections are the median of 5 independent model runs. The model’s revenue sits 5.9% above analyst consensus.

Q3 2026 guidance is revenue of $1.95B–$2.05B, gross margin of 18.5%–19.5%, and EPS of $0.72–$0.82. Management guided computing to nearly 30% sequential growth, communications down high single digits sequentially, automotive/industrial to mid-single-digit sequential growth, and consumer to mid-teens sequential growth. FY2026 CapEx was reaffirmed at $2.5B–$3.0B, with a full-year effective tax rate expected around 20%.

What Could Go Right — and Wrong

What good looks like
  • Q3 computing delivers the guided nearly 30% sequential growth, confirming the HDFO CPU ramp.
  • Advanced packaging for data center nearly triples in 2026 as management expects.
  • Arizona Phase 1 moves from 'fully committed' to concrete customer contracts or prepayments.
  • TSMC's 10-year agreement converts into defined U.S. capacity allocation.
  • The NVIDIA prepayment lands in 2027 and confirms the shift to pre-funded long-horizon capacity.
What could go wrong
  • Communications declines deepen beyond Q3 and the SiP migration drag extends beyond first-half 2027.
  • Arizona margin dilution exceeds the guided 1%–2% in 2027 if equipment or qualification slips.
  • Memory and customer-supplied material constraints persist beyond the $50M–$100M quarterly pushout.
  • ASE and TSMC bring advanced packaging capacity online faster than demand absorbs it.
  • Utilization falls from the 70s if semiconductor demand cools, reversing the margin expansion.
What’s Next

Looking Ahead

The next twelve months run on two tracks: the computing and advanced packaging ramp must prove out against the communications transition, while construction and qualification milestones set up 2027 and 2028 capacity. Near-term signposts are Q3 2026 computing growth and gross margin, then Korea Songdo completion by end of 2026, with Arizona construction and the NVIDIA prepayment taking focus into 2027.

Catalysts
  • Q3 2026Q3 computing guidance test — Nearly 30% sequential computing growth and 18.5%–19.5% gross margin guide.
  • 2H 20262.5D and HDFO launches — Four 2.5D and four HDFO launches expected; pipeline spans 11 and 5 customers.
  • End 2026Korea Songdo completion — Assembly/test building completion targeted end of 2026 for 2027 demand.
  • 2027Arizona Phase 1 completion — Construction completion planned 2027; margin dilution of 1%–2% begins 2027.
  • 2027NVIDIA prepayment receipt — Expected 2027; returned as U.S. services over 5–10 years.
  • 2028Arizona production start — Production start 2028; scale 2029; full impact entering 2030.
Numbers

Financials

Annual Summary

MetricFY2024FY2025TTMYoY
Revenue$6.3B$6.7B$7.5B+6.2%
Gross Margin14.8%13.7%15.5%103bps
EBITDA$1.0B$1.1B$10.8B+7.4%
EBITDA Margin16.4%16.5%17.8%+18bps
Net Income$354M$374M$556M+5.6%
Free Cash Flow$345M$191M$2.6B—
Net Cash————

Key Ratios (Trailing)

Valuation
  • P/E TTM—
  • EV/EBITDA TTM—
  • EV/Revenue TTM—
  • Price/FCF TTM—
Profitability
  • Gross Margin (TTM)15.5%
  • EBITDA Margin (TTM)17.8%
  • Net Margin (TTM)7.5%
  • ROIC10.9%
  • FCF Conversion39.0%
  • SBC / Revenue0.0%
Reference

The Company

Amkor is the largest U.S.-headquartered outsourced semiconductor assembly and test provider. It takes finished silicon wafers, packages the die into usable chips, and tests them against specifications. Its advanced packaging platforms include 2.5D silicon interposer, high-density fan-out, and fan-out bridge technology. As transistor scaling slows, the package is where power, signal integrity, thermal management, and performance gains increasingly come from.

Amkor operates manufacturing and R&D sites in China, Japan, Korea, Malaysia, Philippines, Portugal, Taiwan, and Vietnam, plus an Arizona facility under construction. The first phase of the Arizona campus will have about 1.8 million square feet. In Q1 2026, advanced products were 81.4% of net sales and mainstream products were 18.6%; packaging was 89% of sales and test 11%.

Business Segments

Advanced products
81.4% of Q1 2026 net sales ($1,372.0M)
Flip-chip chip-scale, flip-chip ball-grid array, memory, wafer-level processing, and advanced SiP modules.
Growth driver: Data-center 2.5D, HDFO, and co-packaged optics engagements.
Mainstream products
18.6% of Q1 2026 net sales ($312.7M)
Leadframe and wirebond packaging, plus related test services.
Growth driver: Broad-based demand; first-half 2026 mainstream revenue rose 21%.

Competitive Landscape

Amkor's 10-K names ASE Technology, JCET Group, and Powertech Technology as competitors. TSMC is simultaneously customer, partner under the 10-year Arizona agreement, front-end wafer supplier, and competitor in advanced packaging (CoWoS).

  • ASE Technology
    Listed as a competitor in the 10-K; not discussed beyond that in the supplied material.
  • JCET Group
    Named in the 10-K competitor list; not discussed beyond that in the supplied material.
  • Powertech Technology
    Named in the 10-K competitor list; not discussed beyond that in the supplied material.
  • TSMC
    Partner under the 10-year Arizona agreement, front-end wafer supplier, and competitor in advanced packaging (CoWoS).
Competitor set from the 10-K competitor list; TSMC's dual role is from the Q2 call and intel file.

Supply Chain

Amkor sits between wafer fabrication and system-level assembly. It packages and tests chips for device makers, fabless companies, foundries, and increasingly hyperscalers; Broadcom, Credo, Lattice, and QuickLogic each mention Amkor by name in their own filings.

Analysis updated Aug 12, 2026, reviewing Q2 FY2026. Prices delayed. Built with The Buildout’s published methodology. Not investment advice. No positions held. © The Buildout 2026.

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