Amkor Technology Inc Q2 2025 Earnings Call Transcript

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

Question: Joseph Moore - Morgan Stanley - Analyst : Great, thank you. I wonder if you could talk to -- I'll just ask both of my questions at once. The gross margin in the September quarter, I guess there's a little less fall-through than I might have thought, given the strong revenue. And you mentioned the mix shift (inaudible) can you just give us a little bit more color on the short-term gross margin. And then long term, you mentioned some consolidation with more legacy facilities. Can you talk about where gross margins can get to as you kind of resolve some of those issues? Thank you.

Question: Jim Schneider - Goldman Sachs - Analyst : Yes, good afternoon. Thanks for taking my question. I was wondering if you could maybe comment on sort of the ramp that you expect for your 2.5D program, say, in terms of -- when volume terms this year? And then if you look a little bit further out, what kind of capacity are you directionally preparing for next year? Thank you.

Question: Peter Peng - JPMorgan Chase & Co - Analyst : Hi, thanks for taking my question. It seems like the quarter went really well. For the third quarter, you're guiding above seasonality. Wondering if you're seeing -- or any of your customers talking about any pull-in of demand or anything of that or is it business as usual? Maybe if you can provide some comment on that.

Question: Peter Peng - JPMorgan Chase & Co - Analyst : Perfect. Thank you. And then I have a follow-up on just your overall computing. It sounds like things are getting better. You mentioned about the easing of some of the regulations at your marquee customer, and then you're also ramping your second 2.5D networking customer. So how should we think about revenue growth this year relative to 2024? Is this -- do you view this as a growth segment? Or is this kind of a muted growth profile?

Question: Randy Abrams - UBS - Analyst : Yes, hi, thank you. Yeah, I wanted to ask a follow-up question just on the communications view. I think in your prepared remarks, you talked about evaluating content gains, say, for the on-device AI to communications. Could you talk about that technology trend you're seeing there? And I think you mentioned potential on fan-out for that application. Also, there's a discussion about multichip module. So if you could go to on some of the midterm content opportunities from that.

Question: Randy Abrams - UBS - Analyst : Okay, yeah, and my second question actually two, separate financial questions. One on the material costs, just curious to what you're seeing in terms of cost, from some rising material, prices, and there's even a bit of talk about the high-end, things like (inaudible) If there's any constraint you're nervous about on high-end, substrates, that's one part. And the second one, it's more tied to the investment if we could be heading into a little bit bigger CapEx cycle, just I think you've noted advanced capacity type and trying to go after RDL plus, to start construction of the Arizona factory.

Question: Thomas Diffely - D.A. Davidson & Co - Analyst : Yes, good afternoon. Thanks for taking the questions. Just curious if your view -- your long-term view of the auto industrial market has changed, with keeping track of the potential closures you're talking about in Japan?

Question: Thomas Diffely - D.A. Davidson & Co - Analyst : So do you comment on the softer mainstream side, also includes power?

Question: Ross Cole - Needham & Company LLC - Analyst : Thank you for taking my question. I was wondering since the US has lifted the restrictions on (inaudible) have you gotten any signal from NVIDIA to resume production there?

Question: Ross Cole - Needham & Company LLC - Analyst : Great, thank you. And then my second question, have you received any additional clarity on TSMC's Arizona plan for advanced packaging? And do you expect Amkor to play a role in completing the TSMC supply chain in Arizona?

Question: Steve Barger - KeyBanc Capital Markets Inc - Analyst : Thanks. I just wanted to go back to the auto and industrial. And listening to some of the analog companies that have reported, it's kind of a mixed bag on whether inflation is here or when that could happen. So can you just talk about how your customer conversations changed for the back half? And is anyone talking differently about capacity requirements in a way that seems much more promising than it has been? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. JULY 28, 2025 / 9:00PM, AMKR.OQ - Q2 2025 Amkor Technology Inc Earnings Call

Question: Steve Barger - KeyBanc Capital Markets Inc - Analyst : And thanks for that. Yeah, great detail. And then on the tester fleet investments, how long will that take to accomplish the upgrades that you need? And are those upgrades to existing units for those increased requirements? Or is that investment really for new equipment?