What changed in this filing

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Item 1. Business

2023-02-22 compared with 2022-02-18 · 109 added, 104 removed, 286 unchanged (43% of the section changed)

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• Designing and developing innovative packaging and test technologies;

• Building expertise in high-volume manufacturing processes and developing a reputation for high quality and solid execution;

• Cultivating long-standing relationships with our customers, which include many of the world’s leading semiconductor companies;

• Collaborating with customers, foundries, original equipment manufacturers (“OEMs”) and equipment and material suppliers;

• Building expertise in high-volume manufacturing processes and developing a reputation for high quality and solid execution;

• Providing a geographically diverse operating base;

• Focusing on strategic end markets that offer solid growth potential;

• Providing a geographically diverse operating base;

• Developing a competitive cost structure through disciplined capital investment.

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INDUSTRY BACKGROUND

Semiconductor devices are the essential building blocks used in most electronic products.

Semiconductor devices are essential building blocks used in most electronic products.

As electronic and semiconductor devices have evolved, several important trends have emerged that have fueled the growth of the overall semiconductor industry, as well as the market for outsourced semiconductor packaging and test services.

These trends include:

• An overall increase in the semiconductor content within electronic products to provide greater functionality and higher levels of performance.

• An increasing demand for mobile and connected devices, including the worldwide adoption of “smart” phones, tablets and other Internet-of-Things (“IoT”) devices that can access the internet and provide multimedia capabilities.

• The expansion of 5G infrastructure and enabled devices.

• Growing demand for mobile and connected devices, including the worldwide adoption of “smart” phones, tablets and other Internet-of-Things (“IoT”) devices that can access the internet and provide multimedia capabilities.

• An increase in the semiconductor content within electronic products to provide greater functionality and higher levels of performance.

• The expansion of 5G infrastructure and 5G enabled devices.

• The proliferation of semiconductor devices into well-established end products such as automotive systems for automation and driver assist, electrification and infotainment systems.

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• Digitalization, driving expansion of data generation and storage.

• The adoption of Heterogeneous Integration (diverse dies positioned close to each other within the same package) to reduce cost, improve yields and deliver required performance in datacenter computing, artificial intelligence and similar end uses.

• The adoption of heterogeneous integration (diverse dies positioned close to each other within the same package) to reduce cost, improve yields and deliver required performance in data center computing, artificial intelligence and similar end uses.

• The growth of advanced system-in-package (“SiP”) modules (combining multiple semiconductor and other electronic components in a single package) to meet the demand for miniaturization and higher functionality at competitive cost.

• The increase in digital format in our environment, from sensors for automobiles (e.g., pressure, radar, LiDAR and image recognition), mobile devices (e.g., 3D motion, temperature, acceleration and imaging), and IoT (e.g., in-home sensing from temperature to weather and wearables).

As a supplier in the semiconductor industry, our business is cyclical by nature and impacted by broad economic factors, such as worldwide gross domestic product and consumer spending.

As a supplier in the semiconductor industry, our business is cyclical and impacted by broad economic factors, such as worldwide gross domestic product and consumer spending.

With the exception of 2020, where the Covid-19 pandemic caused worldwide gross domestic product levels to decline during a period of strong growth in the semiconductor industry, there has generally been a strong correlation between worldwide gross domestic product levels, consumer spending and semiconductor industry cycles.

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This trend has led many semiconductor companies and OEMs to view packaging and test as enabling technologies requiring the technological innovation expertise found in the leading outsourced assembly and test companies.

At the same time, these companies are often looking to reduce the internal manufacturing and research and development costs in packaging and test solutions.

At the same time, these companies are often looking to reduce their internal manufacturing and research and development costs for packaging and test solutions.

As a result, many of these companies are increasingly relying on packaging and test service providers as key sources for new package designs and advanced interconnect technologies.

Packaging and test service providers can facilitate a more efficient supply chain and help shorten time-to-market for new products.

We believe that semiconductor companies, together with their customers, are seeking to shorten the time-to-market for new products and that an efficient supply chain is a critical factor in facilitating timely and successful product introductions.

Packaging and test service providers have the resources and expertise to timely develop and implement new packaging technology in high volume.

For this reason, semiconductor companies and OEMs are leveraging the capabilities of outsourced packaging and test service providers to bring new high quality products to market more quickly.

High quality packaging and test service providers enable semiconductor manufacturers to focus their resources on semiconductor design and wafer fabrication.

As semiconductor process technology migrates to larger wafers and smaller feature sizes, the cost of building a state-of-the-art wafer fabrication factory has risen significantly.

The high cost of investing in next generation silicon technology and equipment is causing many semiconductor companies to adopt or maintain a “fabless” or “fab-lite” strategy to reduce or eliminate their investment in wafer fabrication and associated packaging and test operations.

As a result, these

companies are increasing their reliance on outsourced providers of semiconductor manufacturing services, including high quality packaging and test solutions.

Packaging and test service providers offer a cost-effective solution in a cyclical, capital intensive industry.

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Packaging and test service providers, on the other hand, can typically use their assets to support a broad range of customers and multiple end markets, potentially generating more efficient use of their production assets and a more cost-effective solution.

Packaging and test service providers can facilitate a more efficient supply chain and help shorten time-to-market for new products.

We believe that semiconductor companies, together with their customers, are seeking to shorten the time-to-market for new products and that having an effective supply chain is a critical factor in facilitating timely and successful product

introductions.

Packaging and test service providers have the resources and expertise to timely develop and implement new packaging technology in high volume.

For this reason, semiconductor companies and OEMs are leveraging the capabilities of packaging and test service providers to bring new products to market more quickly.

High quality packaging and test service providers enable semiconductor manufacturers to focus their resources on semiconductor design and wafer fabrication.

As semiconductor process technology migrates to larger wafers and smaller feature sizes, the cost of building a state-of-the-art wafer fabrication factory has risen significantly.

As a result, these companies are increasing their reliance on outsourced providers of semiconductor manufacturing services, including packaging and test solutions.

STRATEGY AND COMPETITIVE STRENGTHS

Amkor is a leader in advanced packaging technology in the outsourced assembly and test domain.

Growth in the semiconductor industry is being driven primarily by advanced packaging within four key megatrends of 5G, IoT, high-performance computing (“HPC”) and automotive.

Amkor is a leader in advanced packaging technology in the outsourced assembly and test market.

Growth in the semiconductor industry is being driven primarily by advanced packaging within four key megatrends of 5G, automotive, IoT and high-performance computing (“HPC”).

We believe Amkor is well positioned in each of these end markets.

• Within our communications end market, we have a strong position across multiple device functionalities.

We are collaborating with industry leaders and emerging participants as smartphones transition to 5G and drive semiconductor growth by the continuing adoption of new wireless standards and the integration of a broad range of applications.

The trend to more functionality drives miniaturization and cost reduction enabled by advanced packaging.

• Within our communications end market, we have a strong position across multiple device functionalities within premium and high tier smartphones.

We are collaborating with industry leaders as smartphones transition to 5G and drive semiconductor growth through the adoption of new wireless standards, integration of a broad range of applications, enhanced features, and higher performance requirements to support increased data processing.

The trend to greater functionality drives miniaturization and cost reduction enabled by advanced packaging.

• Increasing semiconductor content in automobiles is driving increased demand for advanced packaging to enable the proliferation of safety features such as advanced driver assistance systems (“ADAS”) and radar and digital cockpit features such as infotainment displays and telematics.

Increasing battery voltage, higher voltage power converters and automotive inverter components also require innovative power packaging solutions.

• The IoT wearables within our consumer end market are evolving in multiple applications, such as watches, health trackers, hearables, biometrics and smart glasses.

Integration of multiple functions in small form factors, processors, sensors and connectivity devices depends on innovation in advanced packaging.

• Increased data traffic requiring higher networking speed and storage, as well as computing power increases in HPC, datacenters, cloud computing, AI, PCs and laptops, are driving demand for more semiconductors and advanced packaging in the computing end market.

• Increasing semiconductor content in automobiles is driving greater needs for advanced packaging to enable the proliferation of safety features such as advanced driver assistance systems (“ADAS”) and radar and digital cockpit features such as infotainment displays.

The increasing battery voltage, higher voltage power converters and inverter automotive components also need innovative power packaging solutions.

Our financial goal is profitable sales growth.

We believe that Amkor’s strength in advanced packaging, combined with the following strategies, will achieve that goal and create long-term shareholder value.

• Increased data traffic requiring higher networking speed and storage, as well as computing power increases in HPC, data centers, cloud computing, AI, PCs and laptops, are driving demand for more semiconductors and advanced packaging in the computing end market.

Our primary financial objective is profitable sales growth.

We believe that we will continue to achieve that goal and create long-term shareholder value by building on our strength in advanced packaging and executing on the following strategies.

Leverage Our Leadership in Services for Advanced Technologies

We are an industry leader in developing and commercializing cost-effective advanced packaging and test technologies, and we believe that our advanced technology solutions provide increased value to our customers.

With approximately 550 employees, as of December 31, 2021, engaged in research and development and manufacturing process engineering for new semiconductor packaging and test technologies, we are a technology leader in areas such as fine pitch bumping, advanced flip chip, wafer-level processing, advanced SiPs and power modules.

We are an industry leader in developing and commercializing advanced packaging and test technologies, which we believe provide substantial value to our customers.

With approximately 700 employees, as of December 31, 2022, engaged in research and development for new semiconductor packaging and test technologies, we are a technology leader in areas such as fine pitch bumping, advanced flip chip, wafer-level processing, advanced SiPs and power modules.

We work closely with our customers to develop cost-effective leading-edge packages for the next generation of devices.

These include integrated technologies such as advanced SiP, wafer-level fan-out (“WLFO”), Silicon Wafer Integrated Fan-out Technology (“SWIFT”), High Density Fan-Out (“HDFO”) and redistribution layer (“RDL”) solutions which enable very thin, very small products that combine application processors, memory, baseband and other peripheral integrated circuits (“ICs”).

Our advanced packages may utilize Through Silicon Via (“TSV”) interconnects and silicon interposers, which enable the integration of high-performance chips such as high bandwidth memory and graphics processors into a single package.

In addition, we co-develop with customers high power modules involving gallium

nitride (“GaN”) and silicon carbide (“SiC”) based devices.

Our advanced packages may utilize Through Silicon Via (“TSV”) interconnects and silicon

interposers, which enable the integration of high-performance chips such as high bandwidth memory and graphics processors into a single package.

In addition, we co-develop with customers high power modules involving gallium nitride (“GaN”) and silicon carbide (“SiC”) based devices.

Our approach is to work with lead customers to develop processes that will enable volume manufacturing with high yields and reliability.

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Selectively Grow Our Scale and Scope through Strategic Investments

From time to time, we see attractive opportunities to grow our customer base and expand markets through strategic investments.

For example, in 2021, we announced our plans to build a new state-of-the-art manufacturing facility in Bac Ninh, Vietnam.

Investing in Bac Ninh expands our manufacturing footprint in support of customer needs for an additional cost-competitive supply chain solution for advanced SiP and other packaging solutions.

Construction is expected to begin in 2022.

We believe that selective growth through joint ventures, acquisitions and other strategic investments can help diversify our revenue streams, improve our profits and maintain our technological leadership.

From time to time, we identify attractive opportunities to strengthen our leadership position and market share through expansion of our operations, joint ventures, acquisitions and other strategic investments.

For example, we are making preparations to deliver advanced SiP modules and other packaging solutions from a new factory in Bac Ninh, Vietnam.

We believe that the Bac Ninh site, which is expected to begin production in the fourth quarter of 2023, will provide customers with a cost-competitive high-volume manufacturing location that offers supply chain diversification.

In addition, our broad geographic footprint, including our manufacturing presence in Portugal and our headquarters in the United States, are key differentiators for us and position us to participate in initiatives to regionalize supply chains.

We believe that selective growth through these strategic actions can further strengthen customer relationships, help to maintain and enhance our technological leadership, diversify our revenue streams and improve our profits.

Competitive Strengths

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We are a leader in developing and deploying advanced semiconductor packaging and test solutions.

We have designed and developed several state-of-the-art package formats and technologies, including our Dual Side Molded Ball Grid Array (“DSMBGA”) SiP platform and multi-chip modules that incorporate silicon interposers between the module chips and substrate.

We have designed and developed several state-of-the-art package formats and technologies, including our Double-Sided, Molded Ball Grid Array (“DSMBGA”) SiP platform and multi-chip modules that incorporate silicon interposers between the module chips and substrate.

In addition, we believe that as semiconductor technology continues to achieve smaller device geometries with higher levels of integration, speed and performance, packages will increasingly require wafer-level Chip Scale Packaging (“CSP”), WLFO, SWIFT and Flip Chip interconnect solutions, advanced SiP products and medium and higher power density packages and modules.

We continue to invest in developing the key processes and packaging and test technologies required for our customers to deliver advanced integrated and modular solutions to market.

We are also a developer of environmentally friendly IC packaging, which involves the elimination of lead and certain other materials.

We continue to invest in developing the key processes and packages, along with test solutions, required for our customers to deliver advanced integrated and modular solutions to their markets.

We are also a developer of environmentally friendly IC packaging, which involves reducing the use of lead and other harmful materials and efficient use of energy and water.

Broad Offering of Semiconductor Package Design, Packaging and Test Services

Creating successful interconnect solutions for advanced semiconductor devices often poses unique thermal, electrical and mechanical design challenges, and we employ a large number of engineers to solve these challenges.

This wide variety of packaging offerings is necessary to meet the diverse needs of our customers for the optimal combination of performance, size and cost.

This wide variety

of packaging offerings is necessary to meet the diverse needs of our customers for the optimal combination of performance, size and cost.

Utilizing Amkor for its innovative packaging, test and design services enables our customers to focus their resources on semiconductor design and wafer fabrication.

We also offer an extensive line of advanced probe and final test services for analog, digital, logic, mixed signal, memory, sensors and RF-semiconductor devices.

We also offer an extensive line of advanced probe and final test services for analog, digital, logic, mixed signal, memory, sensors and radio frequency-semiconductor devices.

We believe that the breadth of our design, packaging and test services is important to customers seeking to limit the number of their suppliers.

Geographically Diversified Manufacturing Base

We have a broad and geographically diverse manufacturing footprint strategically located in seven of the world’s important electronics manufacturing regions.

We believe that our scale and scope allow us to provide a flexible supply chain and cost-effective solutions to our customers by:

• Being located in key regions where customers are actively seeking to develop localized supply chains;

• Qualifying production of customer devices at multiple manufacturing sites with geographical diversity to mitigate the risks of supply disruptions;

• Providing capabilities and solutions for customer-specific requirements;

• Offering capacity to absorb large orders and accommodate quick turn-around times;

• Obtaining favorable pricing and supply agreements on materials and equipment by using our purchasing power and leading industry position.

Long-Standing Relationships and Collaboration with Prominent Semiconductor Companies

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We work with our customers and our suppliers to develop proprietary process technologies to enhance our existing capabilities, reduce time-to-market, improve quality and lower costs.

We believe that our focus on research and product development will enable us to enter new markets early, capture market share and promote the adoption of our new package designs as industry standards.

We believe that our focus on research and product development will enable us to enter new markets early, capture market share and promote the adoption of our new package formats as industry standards.

We collaborate with customers and leading OEMs to develop comprehensive packaging solutions that make it easier for next-generation semiconductors to be designed into next-generation end products.

By collaborating with leading semiconductor companies, foundries and OEM electronic companies, we are able to focus resources on developing new packages that will meet the requirements of new products.

By collaborating with leading semiconductor companies, foundries and OEM electronics companies, we are able to focus resources on developing new packages that will meet the requirements of new products.

The traditional delineation between front-end semiconductor manufacturing and packaging is starting to converge.

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We work closely with foundry partners to complement these offerings by offering similar wafer-based technologies as well as downstream processing.

Geographically Diversified Operating Base

We have a broad and geographically diverse operating footprint strategically located in seven countries in many of the world’s important electronics manufacturing regions.

We believe that our scale and scope allow us to provide a flexible supply chain and cost-effective solutions to our customers by:

• Offering capacity to absorb large orders and accommodate quick turn-around times;

• Obtaining favorable pricing and supply agreements on materials and equipment by using our purchasing power and leading industry position;

• Qualifying production of customer devices at multiple manufacturing sites to mitigate the risks of supply disruptions;

• Providing capabilities and solutions for customer-specific requirements.

PACKAGING AND TEST SERVICES

In general, the semiconductor manufacturing process consists of IC design, wafer fabrication, wafer probe, packaging and final test.

The packaging and test services we provide occur subsequent to wafer fabrication.

The wafers that we receive from our customers are generally consigned to us;

we do not own the consigned wafers or record their value in our financial statements.

The packaging and test services we provide occur subsequent to wafer fabrication, and the wafers that we receive from our customers are generally consigned to us.

Advanced Products and Mainstream Products

We offer a broad range of advanced and mainstream packaging and test services to our customers.

We refer to our flip chip, wafer-level processing and related test services as “Advanced Products”, and our wirebond packaging, power device packaging and related test services as “Mainstream Products”.

The following table sets forth, for the periods indicated, net sales for Advanced Products and Mainstream Products and the percentage of total net sales for each service

In 2021, we began reporting memory net sales under Advanced Products.

Previously, memory net sales were reported in Mainstream Products.

Prior year amounts were reclassified to conform to current year presentation.

We refer to our flip chip, wafer-level processing and related test services as “Advanced Products” and to our wirebond packaging, power device packaging and related test services as “Mainstream Products.” The following table sets forth, for the periods

indicated, net sales for Advanced Products and Mainstream Products and the percentage of total net sales for each service offering.

For the Year Ended December 31,

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Advanced Products

Our Advanced Products include flip chip chip scale packages, wafer-level packages and flip chip ball grid array (“FCBGA”) packages.

Our Advanced Products include flip chip chip scale packages (“FC CSP”), wafer-level packages and flip chip ball grid array (“FCBGA”) packages.

These package families use flip chip interconnect technology so that the die can be connected to a substrate package carrier or, in the case of wafer-level chip scale packages, directly to a printed circuit board.

Flip Chip Chip Scale Package (“FC CSP”) Products :

FC CSP Products :

FC CSP packages are small form factor packages where the substrate size is not much larger than the die itself.

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The variety of FCBGA package options, from large single die to multi-chip packages with memory, allows package selection to be tailored to the specific thermal needs of the end product.

We offer FCBGA packaging in a variety of product formats to fit a wide range of end application requirements, including networking, storage, computing and consumer applications.

We offer FCBGA packaging in a variety of product formats to fit a wide range of end application requirements, including networking, storage, computing, automotive and consumer applications.

Memory Products:

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Wafer-level CSP offers one of the lowest total system costs, enabling higher semiconductor content while leveraging the smallest form factor and one of the highest performing, most reliable semiconductor package platforms on the market today.

Applications for wafer-level CSP include power management, transceivers, sensors, wireless charging, codecs, radar and specialty silicon for new or unique functionality.

• WLFO packages (also known as low-density fan-out packages) are utilized for ICs where the die surface area is too small to accommodate all of the bond pads.

Applications for wafer-level CSP include power management, transceivers, sensors, wireless charging, codecs, and specialty silicon for new or unique functionality.

• WLFO packages (also known as low-density fan-out packages) are utilized for ICs where the die surface area is too small to accommodate all of the required bond pads.

The fan-out package enlarges the bondable surface area by building a border around the die using low-cost molding compound.

These packages can include multiple die.

Applications for WLFO packages include power management, transceivers, radar and specialty silicon.

• SWIFT, also known as high-density fan-out, can either replace the laminate substrate with a thinner structure or reduce the complexity of the substrate by housing the dense interconnects in the SWIFT structure, allowing for a less expensive substrate that provides a high level of performance with a balanced cost structure.

SWIFT solutions enable high performance at a compact form factor that combines tiled processors, memory, I/O die and other peripheral ICs.

SWIFT solutions enable high performance in a compact form factor that combines tiled processors, memory, I/O die and other peripheral ICs.

Mainstream Products

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These modules use wirebond, flip chip or wafer-level interconnect technologies.

Components can include integrated circuits, passive devices (inductors, capacitors, resistors, filters and diplexers), antennas and mechanical parts.

Components can include ICs, passive devices (inductors, capacitors, resistors, filters and diplexers), antennas and mechanical parts.

The increasing demand for miniaturization and higher functionality at competitive cost is driving the adoption of advanced SiP in new products.

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Package level test is performed on a product or products that have been assembled in a package.

System Level Test:

As advanced packaging proliferates and the integration of more individual components into a SiP grows, system level testing becomes more important.

System level test identifies defective SiP products that may not otherwise be screened by traditional wafer level, package level or burn-in testing.

Burn-In Test:

Burn-in test is a process in which components of a system are exercised, monitored and measured in extreme operational conditions such as high temperature, voltage and frequency over time.

The purpose of the environmental and operational stress conditions of burn-in testing is to accelerate and screen early life failures and estimate and monitor long term wear out performance.

The purpose of the environmental and operational stress conditions of burn-in testing is to accelerate and screen early life failures and estimate and monitor long-term degradation and ultimate lifetime.

System Level Test:

System level test identifies defective SiP products that may not otherwise be screened by traditional wafer level, package level or burn-in testing.

As advanced packaging proliferates and the integration of more individual components into a SiP grows, system level testing becomes more important.

Test Development Services:

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End Market Distribution Data (an approximation including representative devices and applications based on a sampling of our largest customers):

Communications (smart phones, tablets) 41 % 41 % 38 %

Communications (smartphones, tablets) 44 % 41 % 41 %

Automotive, industrial and other (ADAS, electrification, infotainment, safety) 20 % 21 % 20 %

Consumer (AR & gaming, connected home, home electronics, wearables) 20 % 22 % 24 %

Automotive and Industrial (ADAS, electrification, infotainment, safety) 21 % 20 % 27 %

Computing (datacenter, infrastructure, PC/laptops, storage) 16 % 15 % 17 %

Computing (data center, infrastructure, PC/laptop, storage) 16 % 16 % 15 %

Total net sales 100 % 100 % 100 %

RESEARCH AND DEVELOPMENT

Our research efforts focus on developing new packaging solutions and test services, as well as improving the efficiency and capabilities of our existing production processes.

We believe that technology development is one of the keys to success in the semiconductor packaging and test industry.

By concentrating our research and development on our customers’ needs for innovative packages, increased performance and lower cost, we gain opportunities to enter markets early, successfully compete for new products and promote our new package offerings as industry leading technology.

One of our top priorities is developing highly integrated modules such as DSMBGA packages to reduce material and processing costs and minimize form factor for wearables and 5G mobile devices.

Another important focus area is the development of wafer-level packages for larger chips.

These wafer-level chip-scale packages and WLFO packages are increasingly the preferred package type for many applications in IoT and mobile devices, including power management integrated circuits (“PMICs”), display drivers and antenna-in-package products.

We are also developing new applications for the automotive market using existing and new package technologies as higher performance compute and sensor content are used to support new automotive features including ADAS, infotainment, optical sensors and electric vehicles.

Our research efforts focus on developing new packaging solutions and test services, as well as improving the efficiency and capabilities of our existing production processes.

By concentrating our research and development on our customers’ needs for innovative packages, increased performance, higher density, smaller size and lower cost, we gain opportunities to enter markets early, successfully compete for new products and promote our new package offerings as industry leading technology.

One of our priorities is developing highly integrated SiP modules, such as DSMBGA packages, to reduce material and processing costs and minimize form factor for wearables and mobile devices.

Another important focus area is the development of wafer-level and panel-level packages for chips in 2D and 3D system implementations.

These wafer-level chip-scale packages and WLFO packages are increasingly the preferred package type for many applications in IoT and mobile devices, including processors, power management integrated circuits (“PMICs”), display drivers and antenna package products.

Our development of Panel Level Fan Out (“PLFO”) technology will permit higher economies of scale for fan-out package devices manufactured on a panel versus wafer basis.

We are also developing new applications for the automotive market using existing and new package technologies as higher performance compute, energy efficiency, power distribution and sensor content are used to support new automotive features including ADAS, infotainment, optical sensors and electric vehicles.

In addition, we are developing high power management modules involving SiC-based devices.

Another focus for development is integrated multi-die solutions, including multichip modules and high-density WLFO solutions, which enable package level integration of different types and levels of silicon technologies for high performance computing, networking and data center applications.

This is accomplished by combining processors and other chiplets into one packaged module.

Through die partitioning and heterogeneous die integration, these modules provide higher functionality at lower total product cost.

Our research and development employees are based in Korea, the United States, Portugal and throughout other locations in Asia.

Through die partitioning and heterogeneous integration, these modules provide higher functionality at lower total product cost.

Our research and development employees are based in Korea, the United States, Portugal and other locations in Asia.

At December 31, 2022, we had approximately 700 employees engaged in research and development activities.

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General economic conditions, changes in our product mix or overall demand in any of our end markets can impact our seasonality.

In 2021, we had approximately 250 customers, including many of the largest semiconductor companies in the world.

Our customers include many of the largest semiconductor companies in the world.

Our ten largest customers accounted for 65% of our net sales in 2022.

Direct sales to Apple Inc., our largest customer, accounted for 13.7% of our net revenue for the year ended December 31, 2021.

Direct sales to Apple Inc.

and Qualcomm Technologies, Inc.

accounted for 20.6% and 10.1% of our net sales, respectively, for the year ended December 31, 2022.

MATERIALS AND EQUIPMENT

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Generally, we purchase materials based on Amkor’s commitments to customer forecasts, and our customers are generally responsible for any unused materials we purchase based on such commitments.

Due to the Covid-19 pandemic and the resulting supply chain constraints and extended lead times, however, we have been placing an increasing number of our orders for materials in advance of customer forecasts.

We believe these materials will be utilized by future orders and will allow us to fulfill orders on a timely basis.

We obtain the materials required for packaging services from various suppliers.

We source most of our materials, including critical materials such as leadframes, laminate substrates and gold wire, from a limited group of suppliers.

We obtain the materials required for packaging services from various suppliers and source most of our materials, including critical materials such as leadframes, laminate substrates and gold wire, from a limited group of suppliers.

We work closely with our primary material suppliers to ensure consistent quality, availability and timely delivery.

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We work closely with our main equipment suppliers to coordinate the ordering and delivery of equipment to meet our expected capacity needs.

The primary types of equipment used in providing our packaging services are wirebonders and die bonders.

In addition, we maintain a variety of other packaging equipment, including mold, singulation, die attach, ball attach and wafer backgrind, along with numerous other types of manufacturing equipment.

The primary types of equipment used in providing our packaging services are wirebonders, die bonders, chip shooters, and die attach.

In addition, we maintain a variety of other packaging equipment, including mold, singulation, ball attach and wafer backgrind, along with numerous other types of manufacturing equipment.

A substantial portion of our packaging equipment base can generally be used and adapted to support the manufacture of many of our packages, with equipment used in traditional wirebond packaging being easier to redeploy than the equipment used in advanced packaging.

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• Certification of our factories worldwide to International Organization for Standards (“ISO”) framework 14001, widely recognized as the standard for effective environmental management systems.

• Measurement and independent verification of greenhouse gases (“GHG”) generated by our factories worldwide.

• Measurement and independent verification of greenhouse gases (“GHGs”) generated by our factories worldwide.

Once collected, our GHG data is submitted to, and disclosed publicly by, CDP, formerly known as the Carbon Disclosure Project.

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We have filed and obtained a number of patents in the U.S.

and abroad, and their durations vary depending on the jurisdiction in which each patent is filed.

and other countries, and their durations vary depending on the jurisdiction in which each patent is filed.

Although our patents are an important element of our intellectual property strategy, we are not materially dependent on any one patent or any one technology.

We expect to continue to file patent applications when appropriate to protect our proprietary technologies, but we cannot assure you that we will receive patents from pending or future applications.

In addition, any patents we obtain may be challenged, invalidated or circumvented and may not provide meaningful protection or other commercial advantage to us.

We expect to continue to file patent applications when appropriate to protect our proprietary technologies, but we cannot provide assurances that we will receive patents from pending or future applications.

In addition, any patents we obtain could be challenged, invalidated or circumvented and may not provide meaningful protection or other commercial advantage to us.

Nonetheless, our patents afford an important means of protection for our technologies.

Further, to distinguish our products from our competitors’ products, we have obtained certain trademarks and service marks and may promote our particular brands through advertising and other marketing techniques.

We also protect and maintain the confidentiality of certain information about our processes, products and strategies which we believe provides us with a competitive advantage.

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As part of these efforts, all employees who have access to Amkor’s information systems are required to participate in cybersecurity training within the first 15 days of employment, after which recurring mandatory training is required on an annual basis.

HUMAN CAPITAL RESOURCES

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Of our global employee base, 93% are employed in manufacturing roles.

Our employees in the Philippines, Singapore, Taiwan and the U.S.

Our employees in France, Germany, the Philippines, Singapore, Taiwan, Vietnam and the U.S.

are not represented by any union.

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Additionally, Amkor has implemented various retention programs to incentivize and retain high-performing employees.

Factory locations also maintain training and development programs that enable the continued learning and growth of our employees, and senior management regularly meets to share and implement best practices among our various facilities.

We believe that our efforts to motivate and retain qualified employees is reflected in the long average tenure of our key employees.

Additionally, we strive to promote our management-level employees from within Amkor and believe that we have been successful in this effort.

We regularly evaluate such retention programs and our compensation practices generally to ensure they remain competitive and are aligned with local market practices.

We look to promote our management-level employees from within Amkor, and we believe that we have been successful in this effort.

Factory locations also

maintain training and development programs that enable the continued learning and growth of our employees, and senior management regularly meets to share and implement best practices among our various facilities.

Amkor also uses human capital initiatives to support our broad geographic footprint.

For career development and advancement, we may provide employees with the opportunity to move between factories, often in support of new factories or the introduction of new packaging offerings.

We believe that these initiatives are efficient for training new local employees and allow existing employees to continue to develop in their careers.

We believe that our efforts to motivate, retain and support the growth of qualified employees is reflected in the long average tenure of our key employees.

Health and Safety

The health and safety of our employees is very important to us and, accordingly, we endeavor to provide comprehensive health benefits to our full-time employees.

Our focus on health and safety is further evident in our response to the Covid-19 pandemic around the globe.

Because our business involves the manufacturing and testing of physical products, many of our employees are unable to work from home.

In an effort to keep our employees safe and to maintain operations during the Covid-19 pandemic, we implemented increased health and safety-related measures across our global footprint.

Our focus on health and safety is further evident in our response to the Covid-19 pandemic.

Because our business involves the manufacturing and testing of physical products, many of our employees have been unable to work from home.

To keep our employees safe and to maintain operations during the Covid-19 pandemic, we implemented increased health and safety-related measures across our global footprint.

While the long-term impact of the Covid-19 pandemic remains uncertain, we have retained those enhanced measures as part of our commitment to protect the health and safety of our employees.

AVAILABLE INFORMATION

Amkor files annual, quarterly and current reports, proxy statements and other information with the U.S.

Securities and Exchange Commission (the “SEC”).

Amkor files annual, quarterly and current reports, proxy statements and other information with the SEC.

The SEC maintains a website that contains annual, quarterly and current reports, proxy statements and other information that issuers (including Amkor) file electronically with the SEC.

10 unchanged sentences

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-K

Item 1. Business