AMKOR TECHNOLOGY, INC.

Previous wording

Amkor is the world’s largest U.S. headquartered OSAT (outsourced semiconductor assembly and test) service provider. We are an industry leader in developing and commercializing advanced packaging and test technologies, which we believe provide substantial value to our customers. Our primary financial objective is profitable sales growth. To achieve this goal, we are focused on leveraging our leadership position in services for advanced technologies, providing our customers with a geographically diverse manufacturing footprint, growing within the industry secular growth markets of high-performance computing (“HPC”), automotive, Internet-of-Things (“IoT”) and mobile communications, selectively growing our scale and scope through strategic investments and optimizing utilization of existing assets.

Current wording

Amkor is the world’s largest U.S. headquartered OSAT and is a global leader in outsourced semiconductor packaging and test services. We are an industry leader in developing and commercializing advanced packaging and test technologies, which we believe provide substantial value to our customers. Our primary financial objective is profitable sales growth. To achieve this goal, we are focused on leveraging our leadership position in services for advanced technologies, providing our customers with a geographically diverse manufacturing footprint, growing within the industry secular growth markets of high-performance computing (“HPC”), automotive, Internet-of-Things (“IoT”) and mobile communications, selectively growing our scale and scope through strategic investments and optimizing utilization of existing assets.

Previous wording

Another key factor in our success is the optimization of asset utilization. We build and utilize manufacturing lines which support multiple customers, and we increase factory utilization through sophisticated planning processes and intensive efficiency improvement activities.

Current wording

Another key factor in our results of operations is the optimization of asset utilization. We build and utilize manufacturing lines which support multiple customers, and we increase factory utilization through sophisticated planning processes and intensive efficiency improvement activities.

Previous wording

We operate in a capital-intensive industry. Servicing our current and future customers requires that we incur significant operating expenses and continue to make significant capital expenditures, which are generally made in advance of expected revenues and without firm customer commitments. We fund our operations, including capital expenditures and

Current wording

We operate in a capital-intensive industry. Servicing our current and future customers requires that we incur significant operating expenses and continue to make significant capital expenditures, which are generally made in advance of

Previous wording

-23- debt service requirements, with cash flows from operations, existing cash and cash equivalents, short-term investments, borrowings under available credit facilities and proceeds from any additional financing. Maintaining an appropriate level of liquidity is important to our business and depends on, among other considerations, the performance of our business, our capital expenditure levels, our ability to repay debt out of our operating cash flows or proceeds from debt or equity financings and our investment strategy. As of March 31, 2025, we had cash and cash equivalents and short-term investments of $1,057.6 million and $505.2 million, respectively.

Current wording

-25- expected revenues and without firm customer commitments. We fund our operations, including capital expenditures and debt service requirements, with cash flows from operations, existing cash and cash equivalents, short-term investments, borrowings under available credit facilities and proceeds from any additional financing. Maintaining an appropriate level of liquidity is important to our business and depends on, among other considerations, the performance of our business, our capital expenditure levels, our ability to repay debt out of our operating cash flows or proceeds from debt or equity financings and our investment strategy. As of June 30, 2025, we had cash and cash equivalents and short-term investments of $1,527.4 million and $516.4 million, respectively.

Previous wording

Our net sales, gross profit, operating income, cash flows, liquidity and capital resources have historically fluctuated significantly from quarter to quarter due to many factors, including the seasonality of our business, the cyclical nature of the semiconductor industry and other factors discussed in the “Risk Factors” section in Part II, Item 1A of this Form 10-Q. We will continue to make prudent investments, and we will closely manage capacity expansion and control costs in response to any changes in market conditions.

Current wording

Our net sales, gross profit, operating income, cash flows, liquidity and capital resources have historically fluctuated significantly from quarter to quarter due to many factors, including the seasonality of our business, the cyclical nature of the semiconductor industry and other factors discussed in the “Risk Factors” section in Part II, Item 1A of this Form 10-Q. We continue to monitor the recent changes in global trade policy, including tariffs and related trade actions announced by the U.S. and other countries. The degree to which such tariffs and other related actions impact our business, financial condition and results of operations will depend on future developments, which are uncertain. We will continue to make prudent investments, and we will closely manage capacity expansion and control costs in response to any changes in market conditions.

Previous wording

Our net sales decreased $43.9 million, or 3.2%, to $1,321.6 million for the three months ended March 31, 2025 compared to $1,365.5 million for the three months ended March 31, 2024, primarily due to lower sales in our communications end market, partially offset by growth in the consumer and computing end markets.

Current wording

Our net sales increased $49.9 million, or 3.4%, to $1,511.4 million for the three months ended June 30, 2025 compared to $1,461.5 million for the three months ended June 30, 2024, primarily due to growth in our consumer and computing end markets, partially offset by lower sales in our communication end market.

Previous wording

Gross margin for the three months ended March 31, 2025 decreased to 11.9% compared to 14.8% for the three months ended March 31, 2024. The decrease in gross margin was primarily due to a decrease in net sales and resulting lower factory utilization. Gross margin was also impacted by the ramp up of the Vietnam Facility, which is in the early stages of high-volume manufacturing. These decreasing factors were partially offset by net favorable foreign currency exchange rate movements.

Current wording

Gross margin for the three months ended June 30, 2025 decreased to 12.0% compared to 14.5% for the three months ended June 30, 2024. The decrease in gross margin was primarily due to increased overhead and employee compensation costs to prepare for our seasonal second half volume. Gross margin was also impacted by the ramp up of the Vietnam Facility, which is in the early stages of high-volume manufacturing.

Previous wording

Operating income margin decreased 300 basis points to 2.4% for the three months ended March 31, 2025 from 5.4% for the three months ended March 31, 2024. Thedecrease in our operating income margin was primarily due to the decrease in our gross margin discussed above along with an increase in research and development expenses, primarily due to development projects in new advanced packaging technologies.

Current wording

Operating income margin increased 50 basis points to 6.1% for the three months ended June 30, 2025 from 5.6% for the three months ended June 30, 2024. Theincrease in our operating income margin was primarily due to the net cash received in the Nanium Insolvency Receipt, partially offset by the decrease in our gross margin discussed above.

Previous wording

Our capital expenditures totaled $79.9 million for the three months ended March 31, 2025 compared to $96.2 million for the three months ended March 31, 2024. Our spending was primarily focused on investments in advanced packaging and test equipment.

Current wording

Our capital expenditures totaled $226.1 million for the six months ended June 30, 2025 compared to $262.5 million for the six months ended June 30, 2024. Our spending was primarily focused on investments in advanced packaging and test equipment.

Previous wording

Net cash provided by operating activities was $24.1 million for the three months ended March 31, 2025 compared to $162.3 million for the three months ended March 31, 2024. This decrease was primarily due to changes in working capital and lower operating profits.

Current wording

Net cash provided by operating activities was $282.6 million for the six months ended June 30, 2025 compared to $387.1 million for the six months ended June 30, 2024. This decrease was primarily due to changes in working capital and lower operating profits.

Previous wording

The decrease in net sales for the three months ended March 31, 2025 compared to the three months ended March 31, 2024 was primarily due to lower sales in our communications end market, partially offset by growth in the consumer and computing end markets. The communications end market decreased 19% compared to 2024 primarily due to lower supported content in premium tier smartphones. The consumer and computing end markets grew 23% and 21%, respectively, compared to 2024 primarily driven by strong demand for IoT wearables, AI devices and ARM-based PCs.

Current wording

The increase in net sales for the three and six months ended June 30, 2025 compared to the three and six months ended June 30, 2024 was primarily due to growth in our consumer and computing end markets, partially offset by lower sales in our communication end market. The consumer end market grew 52% and 37% and the computing end market grew 16% and 18% for the three and six months ended June 30, 2025 compared to 2024, respectively, primarily driven by strong demand for IoT wearables, AI devices and ARM-based PCs. The communications end market decreased 15% and 17% for the three and six months ended June 30, 2025 compared to 2024, respectively, primarily due to lower supported content in premium tier smartphones.

Previous wording

Gross profit and gross margin decreased for the three months ended March 31, 2025 compared to the three months ended March 31, 2024, primarily due to a decrease in net sales and resulting lower factory utilization. Gross profit and gross margin were also impacted by the ramp up of the Vietnam Facility, which is in the early stages of high-volume manufacturing. These decreasing factors were partially offset by net favorable foreign currency exchange rate movements.

Current wording

Gross profit and gross margin decreased for the three and six months ended June 30, 2025 compared to the three and six months ended June 30, 2024, primarily due to increased overhead and employee compensation costs to prepare for our seasonal second half volume. Gross profit and gross margin were also impacted by the ramp up of the Vietnam Facility, which is in the early stages of high-volume manufacturing.

Previous wording

Selling, general and administrative expenses decreased for the three months ended March 31, 2025 compared to the three months ended March 31, 2024, primarily due to the incremental costs incurred in 2024 during start-up at the Vietnam Facility and decreased compensation costs, partially offset by the recovery of bad debt expense in 2024. The incremental costs incurred during start-up at the Vietnam Facility were approximately $12 million for the three months ended March 31, 2024.

Current wording

Selling, general and administrative expenses decreased for the three and six months ended June 30, 2025 compared to the three and six months ended June 30, 2024, primarily due to net cash received in the Nanium Insolvency Receipt and the incremental costs incurred in 2024 during start-up at the Vietnam Facility. The amount recognized from the Nanium Insolvency Receipt for the three and six months ended June 30, 2025, net of amounts remitted to the selling shareholders, was $32.4 million. The incremental costs incurred during start-up at the Vietnam Facility were approximately $13 million and $25 million for the three and six months ended June 30, 2024, respectively. For additional information regarding the Nanium Insolvency Receipt, please refer to Note 15 to our Consolidated Financial Statements in Part 1, Item 1 of this Form 10-Q.

Previous wording

Research and development expenses increased for the three months ended March 31, 2025 compared to the three months ended March 31, 2024, primarily due to development projects in new advanced packaging technologies.

Current wording

Research and development expenses increased for the three and six months ended June 30, 2025 compared to the three and six months ended June 30, 2024, primarily due to development projects in new mainstream and advanced packaging technologies.

Previous wording

Income tax expense, which includes foreign withholding taxes and minimum taxes, reflects the applicable tax rates in effect in the various countries where our income is earned and is subject to volatility depending on the relative mix of earnings in each location. Income tax expense decreased for the three months ended March 31, 2025 compared to the three months ended March 31, 2024, primarily due to a decrease in income before income taxes.

Current wording

Income tax expense, which includes foreign withholding taxes and minimum taxes, reflects the applicable tax rates in effect in the various countries where our income is earned and is subject to volatility depending on the relative mix of earnings in each location. Income tax expense increased for the three and six months ended June 30, 2025 compared to the three and six months ended June 30, 2024, primarily due to discrete tax expense associated with the Nanium Insolvency Receipt. For additional information regarding the Nanium Insolvency Receipt, please refer to Note 15 to our Consolidated Financial Statements in Part 1, Item 1 of this Form 10-Q.

Previous wording

During the three months ended March 31, 2025 and 2024, our subsidiaries in Korea, Singapore and Vietnam operated under various conditional reduced tax rates. As these conditional reduced tax rates expire, income earned in these jurisdictions will be subject to higher statutory income tax rates, which may cause our effective tax rate to increase.

Current wording

During the six months ended June 30, 2025 and 2024, our subsidiaries in Korea, Singapore and Vietnam operated under various conditional reduced tax rates. As these conditional reduced tax rates expire, income earned in these jurisdictions will be subject to higher statutory income tax rates, which may cause our effective tax rate to increase.

Previous wording

See Note 4 to our Consolidated Financial Statements in Part 1, Item 1 of this Form 10-Q for additional information about our income tax expense.

Current wording

See Note 4 to our Consolidated Financial Statements in Part 1, Item 1 of this Form 10-Q for additional information about our income tax expense and the OBBBA legislation.

Previous wording

As of March 31, 2025, we had cash and cash equivalents and short-term investments of $1,562.7 million. Included in our cash and short-term investments balances as of March 31, 2025 is$1,350.7 million held offshore by our foreign subsidiaries. We have the ability to access cash held offshore by our foreign subsidiaries primarily through the repayment of intercompany debt obligations. If we were to distribute this offshore cash to the United States as dividends from our foreign subsidiaries, the dividends generally would not be subject to U.S. federal income tax, but the distributions may be subject to foreign withholding and state income taxes.

Current wording

As of June 30, 2025, we had cash and cash equivalents and short-term investments of $2,043.8 million. Included in our cash and short-term investments balances as of June 30, 2025 is$1,347.3 million held offshore by our foreign subsidiaries. We have the ability to access cash held offshore by our foreign subsidiaries primarily through the repayment of intercompany debt obligations. If we were to distribute this offshore cash to the United States as dividends from our foreign subsidiaries, the dividends generally would not be subject to U.S. federal income tax, but the distributions may be subject to foreign withholding and state income taxes.

Previous wording

For certain accounts receivable, we use non-recourse factoring arrangements with third party financial institutions to manage our working capital and cash flows. Under these arrangements, we sell receivables to a financial institution for cash at a discount to the face amount. Available capacity under these arrangements is dependent on the level of our trade accounts receivable eligible to be sold, the financial institutions’ willingness to purchase such receivables and the limits provided by the financial institutions. These factoring arrangements can be reduced or eliminated at any time due to market conditions and changes in the creditworthiness of customers. For the three months ended March 31, 2025 and 2024, we sold receivables totaling $9.4 million and $24.4 million, respectively, net of discounts and fees, which were insignificant for the respective periods.

Current wording

For certain accounts receivable, we use non-recourse factoring arrangements with third party financial institutions to manage our working capital and cash flows. Under these arrangements, we sell receivables to a financial institution for cash at a discount to the face amount. Available capacity under these arrangements is dependent on the level of our trade accounts receivable eligible to be sold, the financial institutions’ willingness to purchase such receivables and the limits provided by the financial institutions. These factoring arrangements can be reduced or eliminated at any time due to market conditions and changes in the creditworthiness of customers. For the six months ended June 30, 2025 and 2024,

Previous wording

In December 2024, we signed a Direct Funding Agreement with Commerce for the award of up to $407 million in government incentives pursuant to the CHIPS Act, and no funds have been received to date. The award requires us to achieve construction and production milestones over the next several years. In addition, we receive a 25% investment tax credit on qualified investments in U.S. semiconductor manufacturing under the CHIPS Act. For additional information, please refer to Note 1 to our Consolidated Financial Statements in Part I, Item 1 of this Form 10-Q.

Current wording

In December 2024, we signed a Direct Funding Agreement with Commerce for the award of up to $407 million in government incentives pursuant to the CHIPS Act, and no funds have been received to date. The award requires us to achieve construction and production milestones over the next several years. In addition, we are eligible to receive an investment tax credit on qualified investments in U.S. semiconductor manufacturing under the CHIPS Act. On July 4, 2025, the OBBBA was enacted in the United States, which includes a provision to increase the investment tax credit rate from 25% to 35% starting in 2026. For additional information, please refer to Note 1 to our Consolidated Financial Statements in Part I, Item 1 of this Form 10-Q.

Previous wording

As of March 31, 2025, we had debt of $1,149.3 million, with $236.5 million payable within 12 months. As of March 31, 2025, the interest payment obligations, based on stated coupon rates for fixed rate debt and interest rates applicable at March 31, 2025 for variable rate debt, were $113.2 million during the remaining term of the debt. Interest payment obligations payable within 12 months were $48.6 million. We were in compliance with all debt covenants as of March 31, 2025, and we expect to remain in compliance with these covenants for at least the next 12 months. For additional information regarding our debt arrangements, please refer to Note 11 to our Consolidated Financial Statements in Part 1, Item 1 of this Form 10-Q.

Current wording

As of June 30, 2025, we had debt of $1,573.0 million, with $374.9 million payable within 12 months. As of June 30, 2025, the interest payment obligations, based on stated coupon rates for fixed rate debt and interest rates applicable at June 30, 2025 for variable rate debt, were $214.1 million during the remaining term of the debt. Interest payment obligations payable within 12 months were $68.1 million. We were in compliance with all debt covenants as of June 30, 2025, and we expect to remain in compliance with these covenants for at least the next 12 months. For additional information regarding our debt arrangements, please refer to Note 11 to our Consolidated Financial Statements in Part 1, Item 1 of this Form 10-Q.

Previous wording

The debt of Amkor Technology, Inc. is structurally subordinated in right of payment to all existing and future debt and other liabilities of our subsidiaries. From time to time, Amkor Technology, Inc., ATT, AATT and ATSH guarantee certain debt of our subsidiaries.

Current wording

The debt of Amkor Technology, Inc. is structurally subordinated in right of payment to all existing and future debt and other liabilities of our subsidiaries. From time to time, Amkor Technology, Inc., ATSH and Guardian guarantee certain debt of our subsidiaries.

Previous wording

We lease certain machinery and equipment, office space and manufacturing facilities. As of March 31, 2025, our total remaining operating lease obligations and finance lease obligations were $92.8 million and $198.8 million, respectively, with $29.4 million and $62.9 million payable within 12 months, respectively. The lease obligations represent our future minimum lease payments including interest payments.

Current wording

We lease certain machinery and equipment, office space and manufacturing facilities. As of June 30, 2025, our total remaining operating lease obligations and finance lease obligations were $88.5 million and $187.6 million, respectively, with $28.5 million and $59.9 million payable within 12 months, respectively. The lease obligations represent our future minimum lease payments including interest payments.

Previous wording

We had off-balance sheet purchase obligations for capital expenditures, long-term supply contracts and other contractual commitments. As of March 31, 2025, the purchase obligations were $497.7 million, with $455.8 million payable within 12 months.

Current wording

We had off-balance sheet purchase obligations for capital expenditures, long-term supply contracts and other contractual commitments. As of June 30, 2025, the purchase obligations were $445.2 million, with $404.0 million payable within 12 months.

Previous wording

During the three months ended March 31, 2025, we declared total quarterly cash dividends of $20.4 million, which were paid on April 2, 2025, and we currently anticipate that we will continue to pay quarterly cash dividends in the future. However, the payment, amount and timing of future dividends remain within the discretion of our Board of Directors and will depend upon our results of operations, financial condition, cash requirements, debt restrictions and other factors.

Current wording

During the six months ended June 30, 2025, we paid total quarterly cash dividends of $40.9 million, and we currently anticipate that we will continue to pay quarterly cash dividends in the future. However, the payment, amount and timing of future dividends remain within the discretion of our Board of Directors and will depend upon our results of operations, financial condition, cash requirements, debt restrictions and other factors.

Previous wording

We make significant capital expenditures in order to service the demand of our customers, which are primarily focused on investments in advanced packaging and test equipment. During the three months ended March 31, 2025, our capital expenditures totaled $79.9 million.

Current wording

We make significant capital expenditures in order to service the demand of our customers, which are primarily focused on investments in advanced packaging and test equipment. During the six months ended June 30, 2025, our capital expenditures totaled $226.1 million.

Previous wording

Net cash provided by (used in) operating, investing and financing activities for the three months ended March 31, 2025 and 2024, was as follows:

Current wording

Net cash provided by (used in) operating, investing and financing activities for the six months ended June 30, 2025 and 2024, was as follows:

Previous wording

Operating activities: Our cash flow provided by operating activities for the three months ended March 31, 2025 decreased by $138.2 million compared to the three months ended March 31, 2024, primarily due to changes in working capital and lower operating profits.

Current wording

Operating activities: Our cash flow provided by operating activities for the six months ended June 30, 2025 decreased by $104.5 million compared to the six months ended June 30, 2024, primarily due to changes in working capital and lower operating profits.

Previous wording

Investing activities: Our cash flow used in investing activities for thethree months ended March 31, 2025 decreased by $23.0 million compared to the three months ended March 31, 2024, primarily due to net proceeds from foreign exchange forward contracts in the current year and lower payments for property, plant and equipment, partially offset by lower net proceeds for short-term investment activity. Payments for property, plant and equipment can fluctuate based on the timing of purchase, receipt and acceptance of equipment.

Current wording

Investing activities: Our cash flow used in investing activities for thesix months ended June 30, 2025 decreased by $69.3 million compared to the six months ended June 30, 2024, primarily due to net proceeds from foreign exchange forward contracts in the current year and lower payments for property, plant and equipment, partially offset by lower net proceeds for short-term investment activity. Payments for property, plant and equipment can fluctuate based on the timing of purchase, receipt and acceptance of equipment.