Amkor Technology Inc at UBS Global Technology and AI Conference Summary

The following is excerpted from the question-and-answer section of the transcript.

Question: Randy Abrams - UBS AG - Analyst : <_ALACRA_META_ABSTRACT>So -- and I'll kick off. I think for Kevin just coming in to Amkor, give an overview, how do you see the business what you're coming into with Amkor. And if you take an initial cut and get appointed, any changes if you think the business is already running or we could see some fine-tuning around the strategy?

Question: Randy Abrams - UBS AG - Analyst : Okay. Yes, I look forward to that. Actually, a follow-up question on AI. That's seeing a lot of interest in activity. Sunny has been raising the coast forecast. So it feels like a good outlook. Could you talk about how Amkor is positioned, the solutions you have for high-performance computing, whether across GPU, ASIC, some of the CPUs.

Question: Randy Abrams - UBS AG - Analyst : Okay. Maybe a quick follow-up to that. How are you seeing 2026 scale up? Like when you talk about backfilling the existing 2.5D and then also ramping up high-density fan-out or some of the bridge solutions. How should we look at the AI business into '26?

Question: Randy Abrams - UBS AG - Analyst : If I could follow up about the profitability. You talked about this year you put in place investments that there was a bit of OpEx. How do you see the fall through? So if you grow this high-performance compute. I think you've talked about a 30% fall through of margin, for advanced packaging, is the margin structure different? And is it reaching that potential, where do you still have teething issues to ramp up and don't take that time to get that leverage?

Question: Randy Abrams - UBS AG - Analyst : So it sounds like to clarify next year, by '26, you're kind of through that learning curve. So you could be accretive to the 30% fall through as we see advanced packaging growth.

Question: Randy Abrams - UBS AG - Analyst : Okay. Okay. Actually, I think when you were talking about the different expansion, Korea test, that's been an area that you've added capacity. When I look long term at Amkor, I feel like there's been a strategy to grow test, but then you look at the revenue mix, and it's 10% to 15% of revenue, do you see with the test investment inflection where it could be growing at a premium to advanced packaging? Or does it scale up with advanced packaging. Maybe talk about the test opportunity if you see.

Question: Randy Abrams - UBS AG - Analyst : Is there a way to think about the capacity addition have two buildings, quite a bit of test capacity will be a pretty significant scale up in your test --

Question: Randy Abrams - UBS AG - Analyst : If we look at timing for Arizona at comes up, I think you talked about middle of '27, you'll have tools moved in '20 that starts up. How should we think about the ramp-up of profitability with the higher cost in the US and it takes time to get scale, could '28, we see the type of pricing where that could be at corporate average accretive? Or is there a period we have to ramp it up to scale to get to a profitable level?

Question: Randy Abrams - UBS AG - Analyst : Okay. And when you talked about 10% of the portfolio, how quick do you see the demand to scale it up, I think you took two years to break even or be accretive. But could we see the revenue scale up to that 10% of the footprint pretty quickly?

Question: Randy Abrams - UBS AG - Analyst : Okay. You up Vietnam, one part of the business, you have quite a bit of system and package Vietnam has been a good site for that business. How do we see SiP 1 as a growth area, if you can build that business further? And then the other part of it's more material content, so a bit of a drag on margin. Is that just the structural margin for the business? Or are there ways to improve the profitability of the SiP business? LSEG STREETEVENTS | www.lseg.com | Contact Us consent of LSEG. 'LSEG' and the LSEG logo are registered trademarks of LSEG and its affiliated companies. DECEMBER 02, 2025 / 4:35PM, AMKR.OQ - Amkor Technology Inc at UBS Global Technology and AI Conference

Question: Randy Abrams - UBS AG - Analyst : It sounds like we're back to growth. I mean, you recovered that, I think, a key socket with a key customer this year, but you see continued opportunity to grow with additional products, additional customers.

Question: Randy Abrams - UBS AG - Analyst : Okay. I want to ask how it translates to profitability. Margins, when I look back in the late -- like before 2020, you could get closer to 20% gross margin with the rise of SiP, it's been mid-teens. How do you think about that margin outlook? It sounds like compute will be the strongest growth driver and you've gotten through some of the loan curve. Do you see margins starting to creep back up how do you see the leverage in the model?

Question: Randy Abrams - UBS AG - Analyst : Okay. How should we think about CapEx? Does it start to move to a much higher level where you're bringing on Arizona. And if you could talk about the implication, free cash flow and ability to increase payout while you go through this expansion phase?

Question: Randy Abrams - UBS AG - Analyst : Okay. Great. I think with that, we have to wrap up. I want to thank everyone for coming out. Also thanks to Kevin. Congrats on the new role and also to Megan. Yes, thank you.