AMKOR TECHNOLOGY, INC. recently released its 10-Q report. The company is an outsourced semiconductor assembly and test provider headquartered in Tempe, Arizona, with operations in the United States, Japan, Europe and the Asia Pacific. Its business centers on packaging, testing and related services for semiconductor makers, with a broad mix that includes advanced packaging, wafer-level processing, system-in-package modules and final test work.
In Item 2, management said Amkor remains focused on profitable sales growth, supported by advanced packaging technologies such as high-density fan-out, 2.5D integration, advanced flip chip, fine-pitch bumping and advanced SiP solutions. The company said its manufacturing footprint across Asia and Europe is intended to give customers supply-chain flexibility, while a new Arizona facility is under construction and its Vietnam plant, opened in 2024, continues to ramp. Management also said it is targeting lead customers in HPC, AI, automotive, IoT and mobile communications, while continuing to invest in research and development and expand capacity where demand supports it.
For the quarter ended June 30, 2026, net sales rose 25.6% to $1.898 billion from $1.511 billion a year earlier. Gross margin improved to 16.8% from 12.0%, and operating margin increased to 10.5% from 6.1%.
For the first six months of 2026, net sales increased 26.5% to $3.583 billion from $2.833 billion. Gross profit climbed to $557.6 million from $339.5 million, while operating income rose to $300.5 million from $124.9 million.
Amkor said the revenue increase came from growth across all end markets. Communications sales rose 32% in the quarter and 37% in the half year, helped by higher supported content in premium smartphones. Automotive and industrial sales increased 35% and 31%, respectively, driven by ADAS and industrial applications, while computing sales rose 23% in the quarter and 21% in the half year, led by data center demand.
Cost of sales as a percentage of revenue fell in several categories. Labor declined to 10.0% of sales in the quarter from 11.7% a year earlier, depreciation fell to 8.6% from 9.6%, and other manufacturing costs dropped to 12.0% from 13.8%. Materials remained the largest cost item at 52.6% of sales, slightly below 52.9% a year earlier.
Selling, general and administrative expense rose to $78.9 million from $47.9 million in the quarter and to $175.9 million from $128.3 million in the half year. Management attributed part of the increase to the absence of a $32.4 million Nanium insolvency-related receipt recognized in 2025, along with higher employee compensation costs, partly offset by a roughly $21 million gain on disposal of fixed assets in 2026.
Research and development spending declined to $39.8 million from $42.0 million in the quarter and to $81.6 million from $87.7 million in the half year, as projects moved into production. Interest income rose to $20.2 million in the quarter from $15.0 million, reflecting higher cash and available-for-sale debt investment balances.
Capital expenditures totaled $688.4 million in the first six months of 2026, up sharply from $226.1 million a year earlier. Amkor said the spending was concentrated on advanced packaging and test equipment and the Arizona facility. Cash provided by operating activities increased to $381.6 million from $282.6 million.
At June 30, 2026, Amkor reported $1.552 billion in cash and cash equivalents and $960.3 million in short-term investments. Income tax expense was $28.3 million in the quarter and $40.6 million in the half year, both higher than the prior-year periods. Following these announcements, the company's shares moved -23.49%, and are now trading at a price of $46.45. For the full picture, make sure to review AMKOR TECHNOLOGY, INC.'s 10-Q report.
