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Item 8. Financial Statements and Supplementary Data

2025-02-21 compared with 2024-02-16 · 175 added, 104 removed, 1152 unchanged (19% of the section changed)

13 unchanged sentences

We have audited the accompanying consolidated balance sheets of Amkor Technology, Inc.

and its subsidiaries (the “Company”) as of December 31, 2023 and 2022, and the related consolidated statements of income, of comprehensive income, of stockholders’ equity and of cash flows for each of the three years in the period ended December 31, 2023, including the related notes and financial statement schedule of valuation and qualifying accounts for each of the three years in the period ended December 31, 2023 appearing under Item 8 (collectively referred to as the “consolidated financial statements”).

and its subsidiaries (the “Company”) as of December 31, 2024 and 2023, and the related consolidated statements of income, of comprehensive income, of stockholders’ equity and of cash flows for each of the three years in the period ended December 31, 2024, including the related notes and schedule of valuation and qualifying accounts for each of the three years in the period ended December 31, 2024 appearing under Item 8 (collectively referred to as the “consolidated financial statements”).

We also have audited the Company’s internal control over financial reporting as of December 31, 2024, based on criteria established in Internal Control - Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).

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Payments of short-term debt ( 9,731 ) ( 19,448 ) ( 27,187 )

Proceeds from issuance of long-term debt 168,335 366,386 353,587

Proceeds from long-term debt 172,651 168,335 366,386

Payments of long-term debt ( 177,214 ) ( 175,427 ) ( 214,290 )

21 unchanged sentences

Property, plant and equipment included in capital expenditures payable 118,082 104,109 142,160

Property, plant and equipment acquired through grants 32,670 — —

Right of use assets acquired through operating lease liabilities 29,541 6,270 64,849

Right of use assets acquired through finance lease liabilities 149,865 58,232 58,166

Dividends declared and unpaid — 25 58

Grants and incentive receivables for qualified capital expenditures 1,403 — —

The accompanying notes are an integral part of these statements.

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Description of Business

Amkor is one of the world’s leading providers of outsourced semiconductor packaging and test services.

Amkor was a pioneer in the outsourcing of semiconductor packaging and test services, and over the years we have built a leading position by:

Amkor is the world’s largest U.S.

headquartered OSAT (outsourced semiconductor assembly and test) service provider.

Since its founding in 1968, Amkor has pioneered the outsourcing of IC packaging and test services and is a strategic manufacturing partner for the world’s leading semiconductor companies, foundries, and electronics OEMs.

Amkor provides turnkey manufacturing services for the communication, computing, automotive and industrial and consumer markets, including smartphones, data centers, artificial intelligence, electric vehicles and wearables.

Amkor’s operational base includes production facilities, research and development centers and sales and support offices located in key electronics manufacturing regions in Asia, Europe and the United States.

Amkor has built a leading position by:

• Designing and developing innovative packaging and test technologies focused on advanced packaging solutions in high growth markets, including artificial intelligence;

• 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, OEMs and equipment and material suppliers;

• Cultivating long-standing relationships with our customers and industry partners;

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

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As a result, actual results could differ materially from these estimates and assumptions, including the impact of any deterioration in the global business and economic environment.

Certain prior year amounts have been reclassified to conform to current year presentation.

Consolidation of Variable Interest Entities

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We lease land and buildings in the Philippines from these entities and we are the primary beneficiary of these arrangements.

As of December 31, 2023, the combined book value of the assets and liabilities associated with these Philippine realty corporations included in our Consolidated Balance Sheet was $ 17.3 million and $ 0.1 million, respectively.

As of December 31, 2024 and 2023, the combined book value of the assets and liabilities associated with these Philippine realty corporations included in our Consolidated Balance Sheet were $ 17.3 million and $ 0.1 million, respectively, for each period.

The impact of consolidating these variable interest entities on our Consolidated Statements of Income was not significant, and other than our lease payments, we have not provided any significant assistance or other financial support to these variable interest entities for the years ended December 31, 2024, 2023 or 2022.

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dollars at the daily exchange rate.

The resulting translation adjustments are reported as a component of accumulated other comprehensive income in the stockholders’ equity section of the balance sheet.

The resulting translation adjustments are reported as a component of accumulated other comprehensive income (loss) in the stockholders’ equity section of the balance sheet.

Assets and liabilities denominated in a currency other than the functional currency are remeasured into the functional currency prior to translation into U.S.

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A significant portion of our revenues is concentrated with a small group of customers (Note 18).

Direct sales to our largest customer accounted for 27.7 % of our net sales for the year ended December 31, 2023.

Direct sales to our two largest customers accounted for 30.8 % and 10.2 % of our net sales for the year ended December 31, 2024.

The loss of a significant customer, a business combination among customers, a reduction in orders or decrease in price from a significant customer or disruption in any of our significant strategic partnerships or other commercial arrangements could have a material adverse effect on our business, liquidity, results of operations, financial condition and cash flows.

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With respect to accounts receivable, we mitigate our credit risk by selling primarily to well-established companies, performing ongoing credit evaluations and making frequent contact with customers.

In addition, we may utilize non-recourse factoring to mitigate credit risk when considered appropriate.

In addition, we may utilize non-recourse factoring when considered appropriate.

We have historically mitigated our credit risk with respect to cash and cash equivalents through diversification of our holdings into various high quality money market funds and bank deposit accounts.

Our short-term investments are principally investments in debt securities with maximum duration of twenty-four months and range from AAA to BBB-rated financial instruments.

Our short-term investments are principally investments in debt securities with maximum duration of twenty-four months and range from AAA to BB rated financial instruments.

Our short-term investments are primarily in corporate bonds, direct obligations of the U.S.

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Furniture, fixtures and other equipment 4 to 10 years

We periodically assess the estimated useful lives of our property, plant and equipment.

Based on our assessment of test equipment and its increased interchangeability enabling broader and longer use, we extended the estimated useful lives of test equipment from five years to seven years as of January 1, 2024.

See Note 8 for further discussion of the estimated useful lives assessment.

Cost and accumulated depreciation for property retired or disposed of are removed from the accounts, and any resulting gain or loss is included in earnings.

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Long-lived assets to be disposed of are carried at the lower of cost or fair value less the costs of disposal.

Grant Accounting

From time to time, we may receive grants from governmental agencies.

We recognize grants in our financial statements when there is reasonable assurance that we will comply with conditions attached to the grants and the grants will be received.

Government grants are recognized in earnings on a systematic basis over the periods in which the entity incurs costs for which the grants are intended to compensate.

In 2024, we acquired approximately 56 acres of land related to the Arizona Facility with a total fair value of $ 36.9 million.

In connection with this acquisition, we paid $ 4.2 million with the remaining amount obtained as a tangible non-monetary grant subject to the construction and operation of the Arizona Facility.

We initially recorded the grant as a deferred liability in other non-current liabilities, and subsequently it will be reclassified on a net basis against construction and operation costs.

In August 2022, the U.S.

government enacted the CHIPS Act, which provides funding for manufacturing grants and research investments and establishes a 25% investment tax credit for certain investments in U.S.

semiconductor manufacturing.

In 2024, we recorded $ 1.4 million of investment tax credits, which reduced the carrying amounts of the qualifying property, plant and equipment in our Consolidated Balance Sheets.

These investment tax credits are recorded either as a reduction of current income taxes payable or as other assets.

In December 2024, Commerce awarded us up to $ 407 million in direct funding pursuant to the CHIPS Act for the Arizona Facility.

This award requires us to achieve construction and production milestones and restrict us from undertaking certain activities.

As of December 31, 2024, no funding amounts have been received.

We lease certain machinery and equipment, office space, and manufacturing facilities.

Leases with an initial term of 12 months or less are not recorded on the balance sheet, and we recognize lease expense for these leases on a straight-line basis over the lease term.

We combine lease components (e.g., fixed payments including rent, real estate taxes and insurance costs) with the non-lease components (e.g., common-area maintenance costs) for all asset classes.

We combine lease components (e.g., fixed payments including rent, real estate taxes and

AMKOR TECHNOLOGY, INC.

Notes to Consolidated Financial Statements — (Continued)

insurance costs) with the non-lease components (e.g., common-area maintenance costs) for all asset classes.

We use our incremental borrowing rate based on the information available at the lease commencement date to determine the lease liability.

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For purposes of calculating our lease liabilities, our lease terms include options to extend or terminate the lease when it is reasonably certain that we will exercise those options.

Certain leases also include options to purchase the leased property.

Total long-term finance lease liabilities as of December 31, 2023 and December 31, 2022 were $ 47.8 million and $ 54.8 million, respectively.

Certain leases also include options or obligations to purchase the leased property.

Total long-term finance lease liabilities as of December 31, 2024 and December 31, 2023 were $ 122.7 million and $ 47.8 million, respectively, and are included in other non-current liabilities.

Goodwill is recorded when the cost of an acquisition exceeds the fair value of the net tangible and identifiable intangible assets acquired.

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Other assets consist principally of deferred tax assets, refundable security deposits and advanced payments to vendors.

We use foreign exchange forward contracts, generally settled monthly, to manage a portion of our exposure to foreign exchange risk.

We have foreign exchange risk related to monetary asset and liability positions at certain subsidiaries.

To mitigate the impacts of these exposures, we enter into foreign exchange forward contracts, generally settled monthly.

We do not apply hedge accounting to these derivatives.

The derivatives are recorded at the fair value either in other current assets or accrued expenses, with the associated gains and losses charged to other (income) expense, net in the period in which they occur.

We do not apply hedge accounting to the derivatives.

Gains and losses recognized on our derivatives are classified as operating activities and are included within other, net in our Consolidated Statements of Cash Flows.

Gains and losses recognized on these derivatives are classified as operating activities and are included within other, net in our Consolidated Statements of Cash Flows.

We hedge certain net investment positions in foreign subsidiaries.

To accomplish this, we enter into foreign currency forward contracts, generally settled monthly, that are designated as hedges of net investments.

The difference between the forward rate and the spot rate of the net investment hedge forward contracts is excluded from the assessment of hedge effectiveness and subsequently reported in other (income) expense, net on a straight-line basis over the life of the forward contracts.

These gains and losses are classified as operating activities and are included within other, net in our Consolidated Statements of Cash Flows.

Changes in the fair value of the forward contracts are recognized in other comprehensive income (loss) within foreign currency translation.

See Note 15 for further discussion about the derivatives.

AMKOR TECHNOLOGY, INC.

Notes to Consolidated Financial Statements — (Continued)

Fair Value Measurements

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See Note 16 for further discussion of fair value measurements.

AMKOR TECHNOLOGY, INC.

Notes to Consolidated Financial Statements — (Continued)

Revenue Recognition

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These amounts are included in accounts receivable, net of allowances in our Consolidated Balance Sheets.

At times, the company receives cash payments from customers in advance of the company’s performance.

At times, we receive cash payments from customers in advance of our performance.

In such cases, we record deferred revenue until the performance obligation is satisfied, which represents a contract liability and is included in accrued expenses and other non-current liabilities in the consolidated balance sheets.

These contract liabilities are classified as either current or long-term based on the timing of when the company expects to recognize

AMKOR TECHNOLOGY, INC.

Notes to Consolidated Financial Statements — (Continued)

These contract liabilities are classified as either current or long-term based on the timing of when we expect to recognize revenue.

Contract liabilities were $ 95.6 million and $ 135.5 million as of December 31, 2024 and December 31, 2023, respectively.

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Revenue recognized during the year that was included in the contract liability balance at the beginning of the period was $ 66.0 million, $ 66.9 million, and $ 101.2 million, for 2024, 2023 and 2022, respectively.

AMKOR TECHNOLOGY, INC.

Notes to Consolidated Financial Statements — (Continued)

Research and Development Costs

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Adoption of this ASU should be applied on a prospective basis, but retrospective application is permitted.

The new standard will result in enhanced disclosures in our financial statements.

In November 2024, the FASB issued ASU 2024-03, Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40):

Disaggregation of Income Statement Expenses (“ASU 2024-03”), which was subsequently amended and clarified.

ASU 2024-03 requires disaggregation of key expense categories such as inventory purchases, employee compensation, depreciation and intangible asset amortization in the financial statements.

ASU 2024-03 is effective for annual reporting periods beginning after December 15, 2026, and interim periods within annual reporting periods beginning after December 15, 2027.

Early adoption is permitted.

Adoption of this ASU should be applied either prospectively after the effective date or retrospectively to any or all periods presented in the financial statements.

We are currently evaluating the impact of this new standard on our financial statements, which is expected to result in enhanced disclosures.

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The dividend yield is based on the annualized declared quarterly dividend rate divided by our closing stock price at the date of the grant.

There have been no stock options granted since 2021.

AMKOR TECHNOLOGY, INC.

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1,625 $ 10.07 3.45 years $ 25,380

Total unrecognized compensation expense from stock options was $ 0.3 million as of December 31, 2023, which is expected to be recognized over a weighted-average period of approximately 0.79 years beginning January 1, 2024.

There was no unrecognized compensation expense from stock options as of December 31, 2024.

The total intrinsic value of options exercised during fiscal years 2024, 2023, and 2022 was $ 7.9 million, $ 5.8 million, and $ 8.0 million, respectively.

Restricted shares

Restricted shares granted to our non-employee directors vest on the earlier of the one year anniversary of the grant date or the date of the annual meeting of stockholders immediately following the grant date, subject to the recipient’s continued service as a director of Amkor on the applicable vesting date.

Generally, other restricted shares vest ratably over three years , with 8.33 % of the shares vesting in equal quarterly installments such that 100 % of the shares will become vested on the third anniversary of the award, subject to the recipient’s continued employment with us on the applicable vesting date.

In addition, provided that the restricted shares have not been forfeited earlier, under the terms and conditions of the applicable award agreements for certain grants, the restricted shares will vest upon the recipient’s death or disability, or upon a change in control of Amkor.

The value of the restricted shares is determined based on the fair market value of the underlying shares on the date of the grant and is recognized ratably over the vesting period.

The following table summarizes our restricted share activity for the year ended December 31, 2023:

(In thousands) Weighted- average

Non-vested at December 31, 2022

Awards granted — —

Awards vested ( 109 ) 15.38

Awards forfeited — —

Non-vested at December 31, 2023

For the year ended December 31, 2023, the total fair value of our vested restricted shares was $ 2.9 million, respectively.

Restricted stock units

From time to time, and pursuant to the 2021 Plan, we grant time-vested restricted stock units (“RSUs”) to our non-employee directors and certain employees and performance-vested restricted stock units (“PSUs”) to certain employees.

RSUs generally vest in four equal installments over a four-year period such that 100% of the RSUs will become vested

AMKOR TECHNOLOGY, INC.

Notes to Consolidated Financial Statements — (Continued)

on the fourth anniversary of the award, subject to the recipient’s continued employment with us on the applicable vesting dates.

In some circumstances, we have granted RSUs subject to different vesting conditions, including RSUs that vest in full in a single installment.

RSUs granted prior to 2024 generally vest in four equal installments over a four-year period such that 100 % of the RSUs will become vested on the fourth anniversary of the award, subject to the recipient’s continued employment with us on the applicable vesting dates.

The general vesting period for RSUs granted since the start of 2024 decreased to three years .

In some circumstances, we have granted RSUs subject to different vesting conditions, including RSUs that vest in a single installment or on a ratable schedule.

Provided that the RSUs have not been forfeited earlier, they will generally vest upon the recipient’s retirement, death or disability, or upon a change in control of Amkor, in accordance with the terms and conditions of the applicable award agreement.

The value of the RSUs is determined based on the fair market value of the underlying shares on the date of the grant, reduced by the present value of dividends or dividend equivalent rights expected to be paid on our common stock prior to vesting, and is recognized ratably over the vesting period.

PSUs generally vest in one installment after a two-year period such that any earned PSUs will become vested within 90 days of the second anniversary of the award, subject to the recipient’s continued employment with us on the applicable vesting date.

Generally for PSUs, the number of shares of our common stock to be received at vesting will range from 0 % to 200 % of the target grant amount based on Cumulative Basic EPS (as defined in the applicable award agreement) over a two-year performance measurement period.

PSUs granted prior to 2024 generally vest in one installment after a two-year period such that any earned PSUs will become vested within 90 days of the second anniversary of the award, subject to the recipient’s continued employment with us on the applicable vesting date.

Generally for these PSUs, the number of shares of our common stock to be received at vesting will range from 0 % to 200 % of the target grant amount based on Cumulative Basic EPS (as defined in the applicable award agreement) over a two-year performance measurement period.

In some circumstances, we have granted PSUs subject to different vesting conditions, including PSUs that vest in full upon the achievement of performance goals other than Cumulative Basic EPS.

In 2024, we granted PSUs that were divided between PSUs based on earnings per share in each of 2024, 2025 and 2026 (“EPS PSUs”), and PSUs based on relative total shareholder return (“rTSR PSUs”) as compared to the components of the PHLX Semiconductor Index (the “SOX”) over a three-year period, with half of the awards as EPS PSUs and half as rTSR PSUs.

EPS PSUs will vest in three installments over a three-year period such that any earned PSUs will become vested within 90 days of each year ending 2024, 2025 and 2026, subject to the recipient’s continued employment with us on the applicable vesting dates.

For EPS PSUs, the number of shares of our common stock to be received at vesting will range from 0 % to 225 % of the target grant amount.

The rTSR PSUs will vest in one installment after a three-year period and the number of shares of our common stock to be received at vesting will range from 0 % to 150 % of the target grant amount based on rTSR performance over the three-year performance period.

Provided the PSUs have not been forfeited earlier, the PSUs will generally vest upon the recipient’s retirement, death or disability, or upon a change of control of Amkor, in accordance with the terms and conditions of the applicable award agreement.

The value of the PSUs is initially determined based on the fair market value of the underlying shares on the date of the grant, reduced by the present value of dividends expected to be paid on our common stock prior to vesting, and is recognized over the vesting period.

For the PSUs granted prior to 2024 and the EPS PSUs, the value is initially determined based on the fair market value of the underlying shares on the date of the grant, reduced by the present value of dividends expected to be

AMKOR TECHNOLOGY, INC.

Notes to Consolidated Financial Statements — (Continued)

paid on our common stock prior to vesting.

For the rTSR PSUs, we estimated the grant-date fair value using a Monte Carlo simulation model, using the following weighted-average assumptions:

risk-free interest rate of 4.33 % and annualized volatility of 46.77 %.

We recognize the grant date fair value of the PSUs as compensation expense ratably over the vesting period.

The following table summarizes our RSU and PSU activity:

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Total unrecognized compensation expense from RSUs and PSUs was $ 16.5 million as of December 31, 2024, which is expected to be recognized over a weighted-average period of approximately 1.78 years beginning January 1, 2025.

For the years ended December 31, 2023 and 2022, the total fair value of our vested RSUs and PSUs were $ 11.6 million and $ 0.5 million, respectively.

AMKOR TECHNOLOGY, INC.

Notes to Consolidated Financial Statements — (Continued)

For the years ended December 31, 2024, 2023 and 2022 the total fair values of vested RSUs and PSUs were $ 15.5 million, $ 11.6 million and $ 0.5 million, respectively.

Other Income and Expense

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Total other (income) expense, net $ ( 57,506 ) $ ( 32,554 ) $ ( 18,309 )

AMKOR TECHNOLOGY, INC.

Notes to Consolidated Financial Statements — (Continued)

Geographic sources of income (loss) before taxes are as follows:

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Income tax expense $ 75,481 $ 81,710 $ 89,890

AMKOR TECHNOLOGY, INC.

Notes to Consolidated Financial Statements — (Continued)

The reconciliation between the U.S.

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Realization of these carryforwards is dependent on generating sufficient taxable income to overcome the foreign tax credit limitation provisions.

Although utilization of these carryforwards is not assured, in light of our current earnings and recent estimates of future taxable income, management believes sufficient positive evidence exists to conclude that the respective valuation allowances are no longer needed, resulting in the reversal of these valuation allowances.

As a result of certain capital investments, export commitments and employment levels, income from operations in Korea, the Philippines and Singapore was subject to reduced income tax rates and, in some cases, was exempt from income taxes.

Although utilization of these carryforwards is not assured, in light of our current earnings and recent

AMKOR TECHNOLOGY, INC.

Notes to Consolidated Financial Statements — (Continued)

estimates of future taxable income, management believes sufficient positive evidence exists to conclude that the respective valuation allowances are no longer needed, resulting in the reversal of these valuation allowances.

As a result of certain capital investments, export commitments and employment levels, income from operations in Korea, Singapore and Vietnam was subject to reduced income tax rates and, in some cases, was exempt from income taxes.

The most significant tax rate impact is in Singapore where we have been granted a conditional reduced tax rate that expires at the end of 2028.

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The benefit of the conditional reduced tax rates on diluted earnings per share was approximately $ 0.13 , $ 0.08 and $ 0.34 for 2024, 2023 and 2022, respectively.

AMKOR TECHNOLOGY, INC.

Notes to Consolidated Financial Statements — (Continued)

The following is a summary of the components of our deferred tax assets and liabilities:

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Unrealized foreign exchange loss 23,769 7,205

Revenue recognition — 1,564

Operating lease liabilities 14,825 16,053

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examination, we may be required to make tax assessment payments to proceed with the administrative appeal process.

Current examinations include 2019-2022 Korean income tax returns, 2017-2021 Malaysia income tax returns and 2021 Philippine income tax return.

Current examinations include 2017-2021 Malaysia income tax returns and 2021 Philippine income tax return.

A reconciliation of the beginning and ending gross amount of unrecognized tax benefits is as follows:

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Balance at December 31 $ 36,316 $ 31,537 $ 33,253

The net decrease in our unrecognized tax benefits was $ 1.7 million from December 31, 2022 to December 31, 2023.

The decrease was primarily related to the lapse of statutes of limitations.

At December 31, 2023, all of our gross unrecognized tax benefits would reduce our effective tax rate, if recognized.

It is reasonably possible that unrecognized tax benefits related to income attribution will decrease in the next 12 months by up to $ 0.8 million due to the lapse of statutes of limitations in foreign jurisdictions.

The liability related to our unrecognized tax benefits, before interest and penalties, is $ 23.0 million as of December 31, 2023 and is reported as a component of other non-current liabilities.

The net increase in our unrecognized tax benefits was $ 4.8 million from December 31, 2023 to December 31, 2024.

The increase was primarily related to income attribution.

At December 31, 2024, $ 32.7 million of our gross unrecognized tax benefits would reduce our effective tax rate, if recognized.

It is reasonably possible that unrecognized tax benefits primarily related to income attribution will decrease in the next 12 months by up to $ 6.6 million due to the lapse of statutes of limitations in foreign jurisdictions.

The liability related to our unrecognized tax benefits, before interest and penalties, was $ 21.9 million as of December 31, 2024 and is reported as a component of other non-current liabilities.

The unrecognized tax benefits presented in the table above also include positions that have reduced deferred tax assets by $ 14.4 million.

The balance of accrued and unpaid interest and penalties is $ 4.5 million and $ 4.9 million as of December 31, 2023 and 2022, respectively, and is included as a component of other non-current liabilities in connection with our unrecognized tax benefits.

The balance of accrued and unpaid interest and penalties was $ 4.5 million as of December 31, 2024 and 2023 and is included as a component of other non-current liabilities in connection with our unrecognized tax benefits.

Earnings Per Share

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Cash equivalents

Asset-backed securities $ 138 $ — $ — $ 138 $ — $ 138

Commercial paper $ 53,110 $ — $ — $ 53,110 $ — $ 53,110

Corporate bonds 755 — — 755 — 755

Money market funds 146,679 — — 146,679 146,679 —

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Corporate bonds 258,191 567 ( 101 ) 258,657 — 258,657

Foreign government bonds 1,590 — — 1,590 — 1,590

Mortgage-backed securities 11,159 2 ( 18 ) 11,143 — 11,143

Municipal bonds 1,007 2 — 1,009 — 1,009

government agency bonds 11,392 — ( 25 ) 11,367 — 11,367

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Money market funds 60,719 — — 60,719 60,719 —

Municipal bonds 1,001 — — 1,001 — 1,001

US government bonds 2,996 — — 2,996 2,996 —

US government agency bonds 16,982 3 — 16,985 — 16,985

Total cash equivalents (2) 111,916 — — 111,916 63,715 48,201

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Corporate bonds 251,671 432 ( 299 ) 251,804 — 251,804

Foreign government bonds 996 — ( 4 ) 992 — 992

Mortgage-backed securities 696 — ( 2 ) 694 — 694

Municipal bonds 364 — ( 2 ) 362 — 362

government agency bonds 13,200 — ( 9 ) 13,191 — 13,191

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After 1 year through 5 years 158,482 158,514

Asset-backed securities 65,478 65,626

Asset- and mortgage-backed securities 74,415 73,529

Total $ 726,061 $ 725,554

Actual maturities can differ from contractual maturities due to various factors including whether the issuers have the right to call or prepay obligations without call or prepayment penalties, and we view our available-for-sale debt investments as available for current operations.

As of December 31, 2024, the amortized cost and fair market value of our held-to-maturity government bonds (Level 1) maturing within a year were $ 4.4 million.

As of December 31, 2023 the amortized cost and fair market value of our held-to-maturity government bonds (Level 1) maturing within a year were $ 5.2 million.

AMKOR TECHNOLOGY, INC.

Notes to Consolidated Financial Statements — (Continued)

As of December 31, 2023, the amortized cost and fair market value of our held-to-maturity government bonds (Level 1) maturing within a year were $ 5.2 million.

As of December 31, 2022 the amortized cost and fair market value of our held-to-maturity government bonds (Level 1) maturing within a year were $ 4.4 million and $ 4.3 million, respectively.

Factoring of Accounts Receivable

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Total property, plant and equipment, net $ 3,576,148 $ 3,299,445

During 2024, we acquired land for the Arizona Facility with a total fair market value of $ 36.9 million.

We anticipate beginning construction of the new facility in the second half of 2025.

The following table summarizes our depreciation expense:

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Depreciation expense $ 594,141 $ 630,941 $ 612,105

In October 2023, we completed the first phase of construction for our Vietnam Facility and transferred $ 244.3 million from construction in progress to buildings and improvements.

The extension in the estimated useful lives of test equipment (Note 1) reduced depreciation expense by approximately $ 59 million in 2024.

This benefited net income by approximately $ 49 million and diluted earnings per share by $ 0.20 .

AMKOR TECHNOLOGY, INC.

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Income taxes payable 35,067 35,215

Accrued pension and severance obligations (Note 12)

Accrued interest 11,487 11,175

Accrued severance plan obligations (Note 12)

Other accrued expenses 59,740 59,636

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Amkor Technology Korea, Inc.:

Term loan, fixed rate at 1.85 %, due April 2024 (1)

Term loan, fixed rate at 3.95 %, due May 2027 (1)

Term loan, fixed rate at 2.12 %, due December 2028

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Short-term term loans, variable rate (2) — 5,098

Term loan, fixed rate at 1.30 %, due July 2023

Term loan, fixed rate at 1.35 %, due December 2024

Term loan, fixed rate at 1.20 %, due December 2025

13,868 30,913

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Amkor Assembly & Test (Shanghai) Co., Ltd.:

Term loans, SOFR plus 0.75 %, due March 2024 (4)

Term loans, SOFR plus 0.75 %, due June 2025

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Term loans, SOFR plus 0.95 %, due December 2026 (4)

Credit facility, TAIFX plus the applicable bank rate, due December 2024 (Taiwan) (6) — —

44,000 45,000

Senior secured revolving credit facility, applicable bank rate plus 1.75 %, due March 2027 (Singapore) (5)

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Long-term debt $ 923,431 $ 1,071,832

(1) In April 2021, we entered into a ₩ 80 billion term loan agreement with the option to borrow and re-borrow the funds up to six times per year through April 2024.

Principal is payable at maturity, and interest is payable monthly.

(1) In April 2021, we entered into a ₩ 80 billion term loan agreement with the option to borrow and re-borrow the funds up to six times per year through April 2024 at a fixed rate of 1.85 %.

In May 2024, we replaced this loan by entering into a ₩ 80.0 billion (approximately $ 59 million) term loan agreement with the option to borrow and re-borrow the funds up to six times per year through May 2027.

Principal is payable at maturity, and interest is payable monthly, at a fixed rate of 3.95 %.

During the year ended December 31, 2024, we borrowed $ 58.7 million, which we immediately repaid.

As of December 31, 2024, ₩ 80.0 billion, or approximately $ 54 million, was available to be drawn.

7 unchanged sentences

Notes to Consolidated Financial Statements — (Continued)

(4) In June 2023, Amkor Assembly & Test (Shanghai) Co.

amended all term loans to replace London Interbank Offered Rate (“LIBOR”) with a Secured Overnight Financing Rate (“SOFR”) plus 0.75 % annual base rate.

(4) In February 2024, Amkor Assembly & Test (Shanghai) Co.

amended the term loan due December 2026 to reduce the interest rate from SOFR plus 1.40 % to SOFR plus 0.95 %.

This contractual amendment is treated as a modification with no recognized gain or loss.

(5) In December 2023, we entered into a $ 45.0 million term loan.

Principal is payable in semiannual installments of $ 0.5 million, with the remaining balance due at maturity.

Interest is payable quarterly.

(6) In March 2022, ATT amended an existing revolving credit facility to reduce the availability from $ 36.0 million to $ 15.0 million.

As of December 31, 2023, $ 15.0 million was available for future borrowings under such credit facility.

(5) In March 2022, ATSH entered into the 2022 Singapore Revolver, which is guaranteed by Amkor Technology, Inc., ATT and AATT.

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Amkor Assembly & Test (Shanghai) Co., Ltd.:

Term loans, SOFR plus 0.75 % due March 2024

Term loans, SOFR plus 0.75 % due June 2025

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Term loans, SOFR plus 0.95 %, due December 2026

5.28 % 6.76 %

Compliance with Debt Covenants

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Non-current portion of accrued severance plan obligations $ 31,106 $ 39,881

(1) In December 2024, some employees accepted our offer to convert their Korean severance and defined benefit pension plan participation to a defined contribution plan.

This will result in the conversion of approximately $ 5 million of obligations from our Korean severance plan to a defined contribution plan, which is expected to be funded during the first quarter of 2025.

AMKOR TECHNOLOGY, INC.

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Net amount recognized at year end $ ( 33,874 ) $ ( 35,085 )

(1) As of December 31, 2024, $ 0.9 million was recognized in accrued expenses.

The accumulated benefit obligation as of December 31, 2024 and 2023 was $ 123.4 million and $ 128.3 million, respectively.

91 unchanged sentences

Notes to Consolidated Financial Statements — (Continued)

In October 2020, our Board of Directors approved the initiation of a regular quarterly cash dividend on our common stock.

Each quarter since the adoption of this dividend policy, the Company has declared and paid a quarterly dividend.

Our Board of Directors has adopted a dividend policy pursuant to which we currently pay a regular quarterly cash dividend on our common stock.

In November 2024, our Board of Directors approved a quarterly dividend of $ 0.08269 per share, a 5 % increase from the rate set in November 2023.

The Board of Directors also approved a special cash dividend of $ 0.40546 per share, or approximately $ 100 million, on the company’s common stock.

Accumulated Other Comprehensive Income (Loss)

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(2) Amounts reclassified out of accumulated other comprehensive income (loss) are included as a component of net periodic pension cost (Note 12) or other (income) expense, net (Note 3).

(3) Beginning in 2024, foreign currency translation includes the gain (loss) from net investment hedges (Note 15).

We use foreign currency forward contracts to mitigate foreign currency risk of certain assets and monetary liabilities denominated in foreign currencies.

1 unchanged sentence

These derivative instruments are not designated as hedging instruments.

We hedge certain net investment positions in foreign subsidiaries.

To accomplish this, we enter into foreign currency forward contracts, generally settled monthly, that are designated as hedges of net investments.

AMKOR TECHNOLOGY, INC.

4 unchanged sentences

(In thousands)

Forward contracts not designated as hedging instruments

Japanese yen $ 254,783 $ 10 Other current assets $ 279,027 $ 2,745 Other current assets

Korean won 59,036 ( 97 ) Accrued expenses 65,927 333 Other current assets

Korean won 80,260 ( 472 ) Accrued expenses 59,036 ( 97 ) Accrued expenses

Philippine peso 8,431 ( 29 ) Accrued expenses 6,553 ( 20 ) Accrued expenses

Singapore dollar 11,506 20 Other current assets — — N/A

Taiwan dollar 37,914 89 Other current assets 28,763 ( 57 ) Accrued expenses

Total forward contracts $ 394,036 $ 2,737 $ 427,954 $ 6,554

For the years ended December 31, 2023, 2022 and 2021, the derivatives resulted in a net loss of $ 38.6 million, $ 60.2 million and $ 58.8 million, respectively, which were partially offset by the foreign currency gains associated with the underlying net assets or liabilities.

Singapore dollar 8,454 ( 39 ) Accrued expenses 11,506 20 Other current assets

Taiwan dollar 31,150 ( 70 ) Accrued expenses 37,914 89 Other current assets

Total forward contracts not designated as hedging instruments $ 383,078 $ ( 600 ) $ 394,036 $ 2,737

December 31, 2024 December 31, 2023

Notional Value Fair Value (Level 2) Balance Sheet Location Notional Value Fair Value (Level 2) Balance Sheet Location

(In thousands)

Forward contracts designated as net investment hedging instruments

Japanese yen $ 123,042 $ ( 83 ) Accrued expenses $ — $ — N/A

Total forward contracts designated as net investment hedging instruments $ 123,042 $ ( 83 ) $ — $ —

For the year ended December 31, 2024, we incurred a net loss of $ 14.0 million due to the impact of derivatives not designated as hedging instruments, which includes the forward costs, and the related hedged items.

For the years ended December 31, 2023 and 2022, the derivatives not designated as hedging instruments resulted in a net loss of $ 38.6 million and $ 60.2 million, respectively, which were partially offset by the foreign currency gains associated with the underlying net liabilities.

For the year ended December 31, 2024, a gain of $ 4.4 million was recognized in other (income) expense, net for the difference between the forward rate and the spot rate of the net investment hedge.

For the year ended December 31, 2024, a gain of $ 1.0 million was recognized in other comprehensive income (loss) for the changes in fair value of the net investment hedge.

There was no activity related to net investment hedges for the years ended December 31, 2023 and 2022.

AMKOR TECHNOLOGY, INC.

Notes to Consolidated Financial Statements — (Continued)

Fair Value Measurements

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We also measure certain assets and liabilities, including property, plant and equipment and goodwill, at fair value on a nonrecurring basis.

AMKOR TECHNOLOGY, INC.

Notes to Consolidated Financial Statements — (Continued)

We measure the fair value of our debt for disclosure purposes.

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Revolving credit facilities and term loans (Level 2) 625,818 636,845 666,316 681,617

Total financial instruments $ 1,198,094 $ 1,203,456 $ 1,209,744 $ 1,232,334

Total debt $ 1,151,380 $ 1,159,460 $ 1,198,094 $ 1,203,456

The estimated fair value of our senior notes is based primarily on quoted market prices reported on or near the respective balance sheet dates.

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Legal Proceedings

AMKOR TECHNOLOGY, INC.

Notes to Consolidated Financial Statements — (Continued)

We are involved in claims and legal proceedings and may become involved in other legal matters arising in the ordinary course of our business.

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• We are managed under a functionally-based organizational structure with the head of each function reporting directly to the CODM;

• We assess performance, including incentive compensation, based on consolidated operating performance and financial results;

• Our CODM allocates resources and makes other operating decisions based on specific customer business opportunities and

• Our CODM assesses performance, including resource allocation, trend identification and variance analysis, based on consolidated operating performance and financial results based on net income;

• Our CODM allocates resources and makes other operating decisions based on specific customer business opportunities;

• We have an integrated process for the design, development and manufacturing services we provide to all of our customers.

We also have centralized sales and administrative functions.

The following table presents revenue, profit or loss and significant segment expenses for our single operating segment:

For the Year Ended December 31,

2024 2023 2022

(In thousands)

Net sales $ 6,317,692 $ 6,503,065 $ 7,091,585

Materials cost of sales 3,478,752 3,584,090 3,646,188

Labor cost of sales 628,201 643,993 712,070

Depreciation cost of sales 534,921 576,120 565,455

Other cost of sales 742,606 755,709 837,885

Selling, general and administrative 331,806 295,393 283,372

Research and development 162,951 177,473 149,429

Interest expense 64,945 59,000 58,563

Income tax expense 75,481 81,710 89,890

Other segment items (1)

( 57,506 ) ( 32,554 ) ( 18,309 )

Segment net income $ 355,535 $ 362,131 $ 767,042

AMKOR TECHNOLOGY, INC.

Notes to Consolidated Financial Statements — (Continued)

(1) Other segment items included in segment net income includes interest income, foreign currency (gain) loss, net, loss on debt retirement and other (income) expense.

The following table represents other balances included in net income or that are regularly provided to the CODM:

2024 2023 2022

(In thousands)

Interest income $ 65,541 $ 48,458 $ 12,762

Depreciation and amortization expense ( 594,663 ) ( 631,508 ) ( 612,702 )

Total assets 6,944,328 6,771,125 6,821,757

Capital expenditures ( 743,796 ) ( 749,467 ) ( 908,294 )

Net sales by product group consist of the following:

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Communications (smartphones, tablets) 48 % 50 % 44 %

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

Computing (data center, infrastructure, PC/laptop, storage) 19 % 16 % 16 %

Automotive, industrial and other (ADAS, electrification, infotainment, safety) 18 % 21 % 20 %

Consumer (AR & gaming, connected home, home electronics, wearables) 15 % 13 % 20 %

10 unchanged sentences

Total net sales $ 6,317,692 $ 6,503,065 $ 7,091,585

In 2023, 2022 and 2021 one customer accounted for 27.7 %, 20.6 % and 13.7 % of total net sales, respectively.

In 2022, a second customer accounted for 10.1 % of total net sales.

AMKOR TECHNOLOGY, INC.

Notes to Consolidated Financial Statements — (Continued)

In 2024, 2023 and 2022 one customer accounted for 30.8 %, 27.7 % and 20.6 % of total net sales, respectively.

In 2024 and 2022, a second customer accounted for 10.2 % and 10.1 % of total net sales, respectively.

Property, plant and equipment, net, based on physical location, consist of the following:

22 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 8. Financial Statements and Supplementary Data