Amkor Q3 Gross Margin Rises to 18.3% on Advanced Packaging; Q4 Computing Revenue Seen Up Over 50%

Amkor Technology (AMKR-US) reported third-quarter revenue of $1.991 billion, roughly flat year over year, while gross margin climbed to 18.3% from 14.3%, up 1.5 percentage points sequentially. Net income was $191 million. The company attributed the profitability gain to growth in computing and automotive segments, which raised the share of higher-value advanced packaging. Computing revenue rose 25% sequentially and 37% year over year, lifting its share of total revenue to 26% from 19% a year earlier. Growth was driven by ramped high-density fan-out (HDFO) CPU projects and other data center programs. Amkor expects two additional 2.5D packaging projects for networking and data center to enter production in the fourth quarter. For the fourth quarter, Amkor forecasts computing revenue up low double digits sequentially and more than 50% year over year, but total revenue of $1.9 billion to $2.0 billion, a slight sequential decline at the midpoint. Communications revenue fell 8% in the third quarter and is expected to drop a high single-digit percentage in the fourth, with consumer electronics down about 15% on component shortages. Gross margin is guided at 18% to 19%. Amkor is expanding capacity in Korea, Vietnam and Arizona, and has signed prepayment arrangements with 12 customers since 2025. It projects 2026 capital spending of about $2.5 billion, with the first Arizona phase still slated for completion by late 2027.