AMKOR TECHNOLOGY, INC. 10-K

Item 8. Financial Statements and Supplementary Data We present the information required by Item 8 of Form 10-K here in the following order: Page Report of Independent Registered Public Accounting Firm (PCAOB ID 238 ) 50 Consolidated Statements of Income — Years ended December 31, 2024 , 2023 and 2022 53 Consolidated Statements of Comprehensive Income — Years ended December 31, 2024 , 2023 and 2022 54 Consolidated Balance Sheets — December 31, 2024 and 2023 55 Consolidated Statements of Stockholders’ Equity — Years ended December 31, 2024 , 2023 and 2022 56 Consolidated Statements of Cash Flows — Years ended December 31, 2024 , 2023 and 2022 57 Notes to Consolidated Financial Statements 59 Schedule II — Valuation and Qualifying Accounts — Years ended December 31, 2024 , 2023 and 2022 92 49 Table of Contents Report of Independent Registered Public Accounting Firm To the Board of Directors and Stockholders of Amkor Technology, Inc. Opinions on the Financial Statements and Internal Control over Financial Reporting We have audited the accompanying consolidated balance sheets of Amkor Technology, Inc. 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). In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial position of the Company as of December 31, 2024 and 2023, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2024 in conformity with accounting principles generally accepted in the United States of America. Also in our opinion, the Company maintained, in all material respects, effective internal control over financial reporting as of December 31, 2024, based on criteria established in Internal Control - Integrated Framework (2013) issued by the COSO. Basis for Opinions The Company’s management is responsible for these consolidated financial statements, for maintaining effective internal control over financial reporting, and for its assessment of the effectiveness of internal control over financial reporting, included in Management’s Report on Internal Control Over Financial Reporting appearing under Item 9A. Our responsibility is to express opinions on the Company’s consolidated financial statements and on the Company’s internal control over financial reporting based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB. We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement, whether due to error or fraud, and whether effective internal control over financial reporting was maintained in all material respects. Our audits of the consolidated financial statements included performing procedures to assess the risks of material misstatement of the consolidated financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the consolidated financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements. Our audit of internal control over financial reporting included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. Our audits also included performing such other procedures as we considered necessary in the circumstances. We believe that our audits provide a reasonable basis for our opinions. 50 Table of Contents Definition and Limitations of Internal Control over Financial Reporting A company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company’s internal control over financial reporting includes those policies and procedures that (i) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (ii) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (iii) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements. Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate. Critical Audit Matters The critical audit matter communicated below is a matter arising from the current period audit of the consolidated financial statements that was communicated or required to be communicated to the audit committee and that (i) relates to accounts or disclosures that are material to the consolidated financial statements and (ii) involved our especially challenging, subjective, or complex judgments. The communication of critical audit matters does not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the accounts or disclosures to which it relates. Accounting for Income Taxes As described in Notes 1 and 4 to the consolidated financial statements, the Company recorded income tax expense of $75.5 million for the year ended December 31, 2024, and net deferred tax assets of $55.9 million and unrecognized tax benefits of $36.3 million as of December 31, 2024. Income taxes are accounted for using the asset and liability method. Under this method, deferred income tax assets and liabilities are recognized for the future tax consequences attributable to temporary differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax basis as well as for net operating loss and tax credit carryforwards. Management monitors on an ongoing basis its ability to utilize deferred tax assets and whether there is a need for a related valuation allowance. In evaluating the ability to recover deferred tax assets in the jurisdictions from which they arise, management considers all available positive and negative evidence, including scheduled reversals of deferred tax liabilities, projected future taxable income, tax-planning strategies and recent results of operations. The Company operates in and files income tax returns in various U.S. and foreign jurisdictions, which are subject to examination by tax authorities. Years open to examination contain matters that could be subject to differing interpretations of applicable tax laws and regulations related to the amount and/or timing of income, deductions and tax credits. The principal considerations for our determination that performing procedures relating to accounting for income taxes is a critical audit matter are the significant judgment by management in determining the income tax provision and other tax positions. This in turn led to a high degree of auditor judgment, subjectivity and effort in performing procedures and in evaluating audit evidence relating to income taxes. The audit effort involved the use of professionals with specialized skill and knowledge to assist in evaluating the audit evidence obtained. 51 Table of Contents Addressing the matter involved performing procedures and evaluating audit evidence in connection with forming our overall opinion on the consolidated financial statements. These procedures included testing the effectiveness of controls relating to accounting for income taxes, including the controls addressing the completeness and accuracy of the data utilized. These procedures also included, among others (i) testing the income tax provision calculation and underlying data, including the effective tax rate reconciliation, significant return to provision adjustments, and permanent and temporary differences, (ii) evaluating management’s assessment of the realizability of deferred tax assets on a jurisdictional basis, (iii) evaluating the identification of reserves for unrecognized tax benefits and the reasonableness of the “more likely than not” determination considering the jurisdictions, court decisions, legislative actions, statute of limitations, and developments in tax examinations, and (iv) using professionals with specialized skill and knowledge to assist in evaluating the reasonableness of management’s judgment and estimates, including application of foreign and domestic tax laws and regulations. /s/ PricewaterhouseCoopers LLP Phoenix, Arizona February 21, 2025 We have served as the Company’s auditor since 2000. 52 Table of Contents AMKOR TECHNOLOGY, INC. CONSOLIDATED STATEMENTS OF INCOME For the Year Ended December 31, 2024 2023 2022 (In thousands, except per share data) Net sales $ 6,317,692 $ 6,503,065 $ 7,091,585 Cost of sales 5,384,480 5,559,912 5,761,598 Gross profit 933,212 943,153 1,329,987 Selling, general and administrative 331,806 295,393 283,372 Research and development 162,951 177,473 149,429 Total operating expenses 494,757 472,866 432,801 Operating income 438,455 470,287 897,186 Interest expense 64,945 59,000 58,563 Other (income) expense, net ( 57,506 ) ( 32,554 ) ( 18,309 ) Total other expense, net 7,439 26,446 40,254 Income before taxes 431,016 443,841 856,932 Income tax expense 75,481 81,710 89,890 Net income 355,535 362,131 767,042 Net income attributable to noncontrolling interests ( 1,523 ) ( 2,318 ) ( 1,219 ) Net income attributable to Amkor $ 354,012 $ 359,813 $ 765,823 Net income attributable to Amkor per common share: Basic $ 1.44 $ 1.46 $ 3.13 Diluted $ 1.43 $ 1.46 $ 3.11 Shares used in computing per common share amounts: Basic 246,344 245,628 244,676 Diluted 247,818 247,176 246,205 The accompanying notes are an integral part of these statements. 53 Table of Contents AMKOR TECHNOLOGY, INC. CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME For the Year Ended December 31, 2024 2023 2022 (In thousands) Net income $ 355,535 $ 362,131 $ 767,042 Other comprehensive income (loss), net of tax: Adjustments to net unrealized gains (losses) on available-for-sale debt investments ( 722 ) 1,785 ( 1,225 ) Adjustments to unrealized components of defined benefit pension plans 665 1,685 8,604 Foreign currency translation ( 8,783 ) ( 3,819 ) ( 10,658 ) Total other comprehensive income (loss) ( 8,840 ) ( 349 ) ( 3,279 ) Comprehensive income 346,695 361,782 763,763 Comprehensive income attributable to noncontrolling interests ( 1,523 ) ( 2,318 ) ( 1,219 ) Comprehensive income attributable to Amkor $ 345,172 $ 359,464 $ 762,544 The accompanying notes are an integral part of these statements. 54 Table of Contents AMKOR TECHNOLOGY, INC. CONSOLIDATED BALANCE SHEETS December 31, 2024 2023 (In thousands, except per share data) ASSETS Current assets: Cash and cash equivalents $ 1,133,553 $ 1,119,818 Short-term investments (amortized cost of $ 513,494 and $ 474,663 , respectively) 512,984 474,869 Accounts receivable, net of allowances of $ 1,318 and $ 8,114 , respectively 1,055,013 1,149,493 Inventories 310,910 393,128 Other current assets 61,012 58,502 Total current assets 3,073,472 3,195,810 Property, plant and equipment, net 3,576,148 3,299,445 Operating lease right of use assets 109,730 117,006 Goodwill 17,947 20,003 Restricted cash 759 799 Other assets 166,272 138,062 Total assets $ 6,944,328 $ 6,771,125 LIABILITIES AND EQUITY Current liabilities: Short-term borrowings and current portion of long-term debt $ 236,029 $ 131,624 Trade accounts payable 712,887 754,453 Capital expenditures payable 123,195 106,368 Short-term operating lease liability 26,827 33,616 Accrued expenses 356,337 358,414 Total current liabilities 1,455,275 1,384,475 Long-term debt 923,431 1,071,832 Pension and severance obligations 70,594 87,133 Long-term operating lease liabilities 57,983 56,837 Other non-current liabilities 253,880 175,813 Total liabilities 2,761,163 2,776,090 Commitments and contingencies (Note 17) Stockholders’ equity: Preferred stock, $ 0.001 par value, 10,000 shares authorized, designated Series A, none issued — — Common stock, $ 0.001 par value, 500,000 shares authorized, 293,052 and 292,167 shares issued, and 246,684 and 245,888 shares outstanding, respectively 293 292 Additional paid-in capital 2,031,643 2,008,170 Retained earnings 2,335,132 2,159,831 Accumulated other comprehensive income (loss) 7,510 16,350 Treasury stock, at cost, 46,368 and 46,279 shares, respectively ( 225,033 ) ( 222,335 ) Total Amkor stockholders’ equity 4,149,545 3,962,308 Noncontrolling interests in subsidiaries 33,620 32,727 Total equity 4,183,165 3,995,035 Total liabilities and equity $ 6,944,328 $ 6,771,125 The accompanying notes are an integral part of these statements. 55 Table of Contents AMKOR TECHNOLOGY, INC. CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY Additional Paid- In Capital Retained Earnings Accumulated Other Comprehensive Income (Loss) Total Amkor Stockholders’ Equity Noncontrolling Interest in Subsidiaries Total Equity Common Stock Treasury Stock Shares Par Value Shares Cost (In thousands) Balance at December 31, 2021 290,466 $ 290 $ 1,977,134 $ 1,163,939 $ 19,978 ( 46,151 ) $ ( 219,065 ) $ 2,942,276 $ 30,270 $ 2,972,546 Net income — — — 765,823 — — — 765,823 1,219 767,042 Other comprehensive income (loss) — — — — ( 3,279 ) — — ( 3,279 ) — ( 3,279 ) Treasury stock acquired through surrender of shares for tax withholding — — — — — ( 7 ) ( 161 ) ( 161 ) — ( 161 ) Issuance of stock through share-based compensation plans 783 1 5,648 — — — — 5,649 — 5,649 Share-based compensation — — 13,562 — — — — 13,562 — 13,562 Cash dividends declared ($ 0.225 per common share) — — — ( 55,118 ) — — — ( 55,118 ) — ( 55,118 ) Subsidiary dividends to noncontrolling interests — — — — — — — — ( 540 ) ( 540 ) Balance at December 31, 2022 291,249 $ 291 $ 1,996,344 $ 1,874,644 $ 16,699 ( 46,158 ) $ ( 219,226 ) $ 3,668,752 $ 30,949 $ 3,699,701 Net income — — — 359,813 — — — 359,813 2,318 362,131 Other comprehensive income (loss) — — — — ( 349 ) — — ( 349 ) — ( 349 ) Treasury stock acquired through surrender of shares for tax withholding — — — — — ( 121 ) ( 3,109 ) ( 3,109 ) — ( 3,109 ) Issuance of stock through share-based compensation plans 918 1 3,549 — — — — 3,550 — 3,550 Share-based compensation — — 8,277 — — — — 8,277 — 8,277 Cash dividends declared ($ 0.30375 per common share) — — — ( 74,626 ) — — — ( 74,626 ) — ( 74,626 ) Subsidiary dividends to noncontrolling interests — — — — — — — — ( 540 ) ( 540 ) Balance at December 31, 2023 292,167 $ 292 $ 2,008,170 $ 2,159,831 $ 16,350 ( 46,279 ) $ ( 222,335 ) $ 3,962,308 $ 32,727 $ 3,995,035 Net income — — — 354,012 — — — 354,012 1,523 355,535 Other comprehensive income (loss) — — — — ( 8,840 ) — — ( 8,840 ) — ( 8,840 ) Treasury stock acquired through surrender of shares for tax withholding — — — — — ( 89 ) ( 2,698 ) ( 2,698 ) — ( 2,698 ) Issuance of stock through share-based compensation plans 885 1 5,102 — — — — 5,103 — 5,103 Share-based compensation — — 18,371 — — — — 18,371 — 18,371 Cash dividends declared ($ 0.72440 per common share) — — — ( 178,711 ) — — — ( 178,711 ) — ( 178,711 ) Subsidiary dividends to noncontrolling interests — — — — — — — — ( 630 ) ( 630 ) Balance at December 31, 2024 293,052 $ 293 $ 2,031,643 $ 2,335,132 $ 7,510 ( 46,368 ) $ ( 225,033 ) $ 4,149,545 $ 33,620 $ 4,183,165 The accompanying notes are an integral part of these statements. 56 Table of Contents AMKOR TECHNOLOGY, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS For the Year Ended December 31, 2024 2023 2022 (In thousands) Cash flows from operating activities: Net income $ 355,535 $ 362,131 $ 767,042 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 594,663 631,508 612,702 Amortization of deferred debt issuance costs and premiums 3,534 3,523 3,247 Deferred income taxes ( 784 ) 13,394 ( 11,623 ) Gain on disposal of fixed assets, net ( 3,978 ) ( 2,200 ) ( 2,807 ) Share-based compensation 18,371 8,277 13,562 Other, net 8,160 16,660 ( 1,957 ) Changes in assets and liabilities: Accounts receivable 99,690 205,491 ( 103,990 ) Inventories 78,965 233,797 ( 148,137 ) Other current assets ( 5,640 ) 2,673 ( 23,802 ) Other assets 12,076 10,875 ( 34,835 ) Trade accounts payable ( 36,047 ) ( 134,618 ) 86,574 Accrued expenses 3,709 ( 48,389 ) ( 40,637 ) Pension and severance obligations ( 6,527 ) ( 844 ) ( 10,547 ) Net operating lease ROU asset 3,544 50,650 ( 14,483 ) Operating lease liabilities ( 1,577 ) ( 52,543 ) 1,574 Other non-current liabilities ( 34,826 ) ( 30,365 ) 6,873 Net cash provided by operating activities 1,088,868 1,270,020 1,098,756 Cash flows from investing activities: Payments for property, plant and equipment ( 743,796 ) ( 749,467 ) ( 908,294 ) Proceeds from sale of property, plant and equipment 3,981 8,444 3,148 Proceeds from foreign exchange forward contracts 47,045 44,013 33,578 Payments for foreign exchange forward contracts ( 88,623 ) ( 75,786 ) ( 104,703 ) Payments for short-term investments ( 568,711 ) ( 657,583 ) ( 438,803 ) Proceeds from sale of short-term investments 65,502 94,242 33,972 Proceeds from maturities of short-term investments 474,097 379,344 370,924 Other investing activities 10,181 4,883 3,009 Net cash used in investing activities ( 800,324 ) ( 951,910 ) ( 1,007,169 ) Cash flows from financing activities: Proceeds from revolving credit facilities — 370,000 80,000 Payments of revolving credit facilities — ( 370,000 ) ( 80,000 ) Proceeds from short-term debt 5,012 20,712 29,711 Payments of short-term debt ( 9,731 ) ( 19,448 ) ( 27,187 ) Proceeds from long-term debt 172,651 168,335 366,386 Payments of long-term debt ( 177,214 ) ( 175,427 ) ( 214,290 ) Payments for debt issuance costs ( 1,280 ) ( 1,385 ) ( 7,297 ) Payments of finance lease obligations ( 72,255 ) ( 66,398 ) ( 40,673 ) Proceeds from issuance of stock through share-based compensation plans 4,995 3,562 5,635 Payments of dividends ( 178,605 ) ( 74,686 ) ( 55,116 ) Other financing activities ( 4,005 ) ( 4,472 ) ( 1,572 ) Net cash (used in) provided by financing activities ( 260,432 ) ( 149,207 ) 55,597 Effect of exchange rate fluctuations on cash, cash equivalents and restricted cash ( 14,417 ) ( 10,692 ) ( 16,299 ) Net increase in cash, cash equivalents and restricted cash 13,695 158,211 130,885 Cash, cash equivalents and restricted cash, beginning of period 1,120,617 962,406 831,521 Cash, cash equivalents and restricted cash, end of period $ 1,134,312 $ 1,120,617 $ 962,406 The accompanying notes are an integral part of these statements. 57 Table of Contents AMKOR TECHNOLOGY, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS For the Year Ended December 31, 2024 2023 2022 (In thousands) Supplemental disclosures of cash flow information: Cash paid during the period for: Interest $ 60,263 $ 54,306 $ 54,355 Income taxes 82,617 90,458 97,333 Non-cash investing and financing activities: 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 Grants and incentive receivables for qualified capital expenditures 1,403 — — The accompanying notes are an integral part of these statements. 58 Table of Contents AMKOR TECHNOLOGY, INC. Notes to Consolidated Financial Statements 1. Description of Business and Summary of Significant Accounting Policies Description of Business 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 and industry partners; • Focusing on strategic end markets that offer solid growth potential; • Providing a geographically diverse operating base with manufacturing facilities in multiple countries across Asia and in Europe; and • Developing a competitive cost structure through disciplined capital investment. Basis of Presentation Our Consolidated Financial Statements include the accounts of Amkor Technology, Inc. and its subsidiaries. Our Consolidated Financial Statements reflect the elimination of all significant inter-company accounts and transactions. Our investments in variable interest entities in which we are the primary beneficiary are consolidated. We reflect the remaining portion of variable interest entities and foreign subsidiaries that are not wholly owned as noncontrolling interests. The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. On an ongoing basis, we evaluate our estimates, including those related to revenue recognition, income taxes, inventory and long-lived assets. These estimates are based on management’s best knowledge of current events, historical experience, actions that we may undertake in the future and on various other assumptions that are believed to be reasonable under the circumstances. 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. Consolidation of Variable Interest Entities We have variable interests in certain Philippine realty corporations in which we have a 40 % ownership. We lease land and buildings in the Philippines from these entities and we are the primary beneficiary of these arrangements. 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. The creditors of the Philippine realty corporations have no recourse to our general credit. 59 Table of Contents AMKOR TECHNOLOGY, INC. Notes to Consolidated Financial Statements — (Continued) Foreign Currency Translation The U.S. dollar is the functional currency of our subsidiaries other than our Japan operations. The foreign currency asset and liability amounts at these subsidiaries are remeasured into U.S. dollars at end-of-period exchange rates, except for nonmonetary items which are remeasured at historical rates. Foreign currency income and expenses are remeasured at daily exchange rates, except for expenses related to balance sheet amounts which are remeasured at historical exchange rates. Exchange gains and losses arising from remeasurement of foreign currency-denominated monetary assets and liabilities are included in other (income) expense, net in the period in which they occur. The Japanese yen is the functional currency of our Japan operations. The asset and liability amounts of our Japan operations are translated into U.S. dollars at end-of-period exchange rates. Income and expenses are translated into U.S. dollars at the daily exchange rate. 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. dollars, and the resulting transaction exchange gains or losses are included in other (income) expense, net in the period in which they occur. Risks and Concentrations The semiconductor industry is characterized by rapid technological change, competitive pricing pressures and cyclical market patterns. Our financial results are affected by a wide variety of factors, including general economic conditions worldwide, economic conditions specific to the semiconductor industry, the timely implementation of new package and test technologies, the ability to safeguard patents and intellectual property in a rapidly evolving market and reliance on materials and equipment suppliers. In addition, the semiconductor market has historically been cyclical and subject to significant economic downturns at various times. Our profitability and ability to generate cash from operations is principally dependent upon demand for semiconductors, the utilization of our capacity, semiconductor package mix, the average selling price of our services, our ability to manage our capital expenditures and our ability to control our costs including labor, material, overhead and financing costs. A significant portion of our revenues is concentrated with a small group of customers (Note 18). 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. Financial instruments, for which we are subject to credit risk, consist principally of accounts receivable and cash, cash equivalents and short-term investments. 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 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 BB rated financial instruments. Our short-term investments are primarily in corporate bonds, direct obligations of the U.S. Government or its agencies, asset-backed securities and commercial paper. At December 31, 2024, our cash and cash equivalents were primarily maintained in various U.S. and foreign bank operating and time deposit accounts and invested in various available-for-sale debt investments. See Note 6 for further discussion regarding our available-for-sale debt investments. Contingencies and Litigation We may be subject to certain legal proceedings, lawsuits and other claims, as discussed in Note 17. We accrue for a loss contingency, including legal proceedings, lawsuits, pending claims and other legal matters, when we conclude that the likelihood of a loss is probable and the amount of the loss can be reasonably estimated. When the reasonable estimate of the loss is within a range of amounts, and no amount in the range constitutes a better estimate than any other amount, we 60 Table of Contents AMKOR TECHNOLOGY, INC. Notes to Consolidated Financial Statements — (Continued) accrue for the amount at the low end of the range. We adjust our accruals from time to time as we receive additional information, but the loss we incur may be significantly greater than or less than the amount we have accrued. We disclose loss contingencies if we believe they are material and there is at least a reasonable possibility that a loss has been incurred. Attorney fees related to legal matters are expensed as incurred. Cash and Cash Equivalents We consider all highly liquid investments with a maturity of three months or less when purchased to be cash equivalents. Our cash and cash equivalents are primarily maintained in various U.S. and foreign bank operating and time deposit accounts and invested in various available-for-sale debt investments. See Note 6 for further discussion regarding our available-for-sale debt investments. Restricted Cash Restricted cash, non-current, mainly consists of collateral to fulfill utility requirements. Investments Generally, we classify our short-term investments in fixed income securities as available-for-sale debt investments. All of our available-for-sale debt investments as of December 31, 2024 are available to fund current operations and are recorded at fair value (Note 6). Unrealized gains and losses on our available-for-sale debt investments are included as a separate component of accumulated other comprehensive income (loss), net of tax. Realized gains and losses on our available-for-sale debt investments and declines in value judged to be an impairment are included in other (income) expense, net. The cost of short-term investments matured or sold is based on the average cost method. We evaluate on an ongoing basis the market conditions, trends of earnings, financial condition, credit ratings, any underlying collateral and other key measures for our short-term investments in determining if and when a decline in value below the adjusted cost of our available-for-sale debt investments is an impairment. An impairment is considered if (i) we have the intent to sell the security, (ii) it is more likely than not that we will be required to sell the security before recovery of the entire amortized cost basis or (iii) we do not expect to recover the entire amortized cost basis of the security. If impairment is considered on condition (i) or (ii) above, the entire difference between the amortized cost and the fair value of the debt security is recognized in earnings. If impairment is considered based on condition (iii), the amount representing credit losses will be recognized in earnings and as an allowance for credit losses. The amount relating to all other factors will be recognized in other comprehensive income. Inventories Inventories consist of raw materials and purchased components and are stated at the lower of cost and net realizable value. Cost is principally determined by standard cost or the weighted moving average method, both of which approximate actual cost. We review and set our standard costs as needed, but at a minimum on a quarterly basis. We reduce the carrying value of our inventories for the cost of inventory we estimate is excess and obsolete based on the age of our inventories. When a determination is made that the inventory will not be utilized in production or is not saleable, it is written-off. Other Current Assets Other current assets consist principally of prepaid assets. 61 Table of Contents AMKOR TECHNOLOGY, INC. Notes to Consolidated Financial Statements — (Continued) Property, Plant and Equipment Property, plant and equipment are stated at cost. Depreciation is calculated by the straight-line method over the estimated useful lives of depreciable assets which are as follows: Buildings and improvements 10 to 40 years Machinery and equipment 2 to 7 years Software and computer equipment 3 to 5 years 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. Expenditures for maintenance and repairs are charged to expense as incurred. We review long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. Recoverability of a long-lived asset group to be held and used in operations is measured by a comparison of the carrying amount to the sum of the undiscounted cash flows expected to result from the use and eventual disposition of the asset group. If such asset group is considered to be impaired, the impairment loss is measured as the amount by which the carrying amount of the asset group exceeds its fair value. 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. Leases 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 62 Table of Contents 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. Our leases have remaining lease terms ranging from less than one year to 81 years. 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 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 Goodwill is recorded when the cost of an acquisition exceeds the fair value of the net tangible and identifiable intangible assets acquired. We review goodwill for impairment annually during the fourth quarter of each year and whenever events or changes in circumstances indicate that an impairment may exist. Impairment losses are recorded when the carrying amount of the reporting unit exceeds its fair value. The balance of goodwill in our Consolidated Balance Sheets reflects adjustments for foreign currency translation. Other Assets Other assets consist principally of deferred tax assets, refundable security deposits and advanced payments to vendors. Derivatives 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. 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. Fair Value Measurements We apply fair value accounting for assets and liabilities that are recognized or disclosed at fair value in the financial statements on a recurring or nonrecurring basis. We define fair value as the price that would be received from selling an asset or paid to transfer a liability in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants at the measurement date. See Note 16 for further discussion of fair value measurements. 63 Table of Contents AMKOR TECHNOLOGY, INC. Notes to Consolidated Financial Statements — (Continued) Revenue Recognition We recognize revenue, net of sales, use, value-added and other similar taxes, as a performance obligation is satisfied in an amount reflecting the consideration to which we expect to be entitled. We apply a five-step approach in determining the amount and timing of revenue to be recognized: (1) identifying the contract with a customer; (2) identifying the performance obligations in the contract; (3) determining the transaction price; (4) allocating the transaction price to the performance obligations in the contract; and (5) recognizing revenue when the performance obligation is satisfied. Substantially all of our revenue is recognized as services are rendered. Our packaging and test services are our performance obligations to our customers. Our packaging services include wafer bump, probe and assembly. We provide packaging and test services to our customers either individually or as part of a combined offering. In a combined offering, we account for the individual services separately if they are determined to be distinct. We determine a service to be distinct if it is separately identifiable from other services in the combined offering and if a customer can benefit from the unique service on its own or with other resources that are readily available to the customer. The consideration, including variable consideration, is allocated between the distinct services in a combined offering based upon the stand-alone selling prices of the individual services. Our services involve a high degree of specialization which are unique based on the design and purpose of the customer’s wafers. Accordingly, our negotiated pricing reflects the customized nature of our services and represents a customer-specific stand-alone selling price. We recognize revenue as services are rendered, which generally occurs over the course of two to three weeks. Services are generally billed at completion of each individual packaging or test service or in some instances at the completion of all services in a combined offering. We recognize revenue over time as services are rendered because our services create or enhance the customer’s wafer. We utilize an input method (cost incurred plus estimated margin) to determine the amount of revenue to recognize for in-process, but incomplete, customer orders at a reporting date. During the period of providing our services, we generally do not control or take ownership of customers’ wafers, nor do we include the cost of the wafer in our cost calculations. We believe that a cost-based input method is the most appropriate manner to measure how we satisfy our performance obligations to customers because the effort and costs incurred to package and/or test customer wafers are not linear over the duration of these services. Shipping and handling costs are accounted for as a cost to fulfill our performance obligations to customers. Accordingly, we record customer payments of shipping and handling costs as a component of net sales, and the costs incurred for shipping and handling are then charged to cost of sales. Unbilled receivables are revenues that have been recognized for performance obligations that have been satisfied, or partially satisfied, in advance of billing the customer. Revenue may be recognized in advance of billing as our contracts provide us with an unconditional right to consideration for work that is performed. Total unbilled receivables as of December 31, 2024 and 2023 were $ 210.1 million and $ 260.8 million, respectively. These amounts are included in accounts receivable, net of allowances in our Consolidated Balance Sheets. 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 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. As of December 31, 2024 and December 31, 2023, the short-term portion of the liability was $ 59.7 million and $ 71.1 million, respectively. The remainder of the December 31, 2024 contract liability balance is expected to be recognized in revenue over the next 1 - 5 years. 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. 64 Table of Contents AMKOR TECHNOLOGY, INC. Notes to Consolidated Financial Statements — (Continued) Research and Development Costs Research and development expenses include costs attributable to the conduct of research and development programs primarily related to the development of new package designs or technologies and improving the efficiency and capabilities of our existing production processes. Such costs include labor, materials, supplies, depreciation and maintenance of research equipment, services provided by outside contractors and the allocable portions of facility costs such as rent, utilities, insurance, repairs and maintenance, depreciation and general support services. Costs associated with research and development are expensed as incurred. Income Taxes Income taxes are accounted for using the asset and liability method. Under this method, deferred income tax assets and liabilities are recognized for the future tax consequences attributable to temporary differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax basis as well as for net operating loss and tax credit carryforwards. Deferred income tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which these temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. A valuation allowance is provided for those deferred tax assets for which it is more likely than not that the related tax benefits will not be realized. We monitor on an ongoing basis our ability to utilize our deferred tax assets and whether there is a need for a related valuation allowance. In evaluating our ability to recover our deferred tax assets in the jurisdictions from which they arise, we consider all available positive and negative evidence, including scheduled reversals of deferred tax liabilities, projected future taxable income, tax-planning strategies and recent results of operations. With the exception of a certain foreign jurisdiction and select U.S. and foreign carryforwards, we consider it more likely than not that we will have sufficient taxable income to allow us to realize these deferred tax assets. However, in the event taxable income falls short of current expectations, we may need to establish a valuation allowance against such deferred tax assets. We recognize in our Consolidated Financial Statements the impact of an income tax position, if that position is more likely than not of being sustained on audit, based on the technical merits of the position. Related interest and penalties are classified as income taxes in the financial statements. See Note 4 for further discussion regarding unrecognized income tax benefits. Recently Issued Standards In December 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures (“ASU 2023-09”). ASU 2023-09 requires disclosure of additional income tax information, primarily related to effective tax rate reconciliation and income taxes paid. ASU 2023-09 is effective for annual periods beginning after December 15, 2024. Early adoption is permitted. 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. 65 Table of Contents AMKOR TECHNOLOGY, INC. Notes to Consolidated Financial Statements — (Continued) 2. Share-Based Compensation Plans For the years ended December 31, 2024, 2023 and 2022, we recognized share-based compensation of $ 18.4 million, $ 8.3 million and $ 13.6 million, respectively, primarily in selling, general and administrative expenses. The amount of compensation expense to be recognized is adjusted for an estimated forfeiture rate which is based on historical data. The corresponding deferred income tax benefits are $ 2.4 million, $ 0.7 million and $ 1.7 million for 2024, 2023 and 2022, respectively. Equity Incentive Plans Second Amended and Restated 2007 Equity Incentive Plan. The Second Amended and Restated 2007 Equity Incentive Plan (as amended, the “2007 Plan”) provided for the grant of the following types of incentive awards: (i) stock options; (ii) restricted stock; (iii) restricted stock units; (iv) stock appreciation rights; (v) performance units and performance shares; and (vi) other stock or cash awards. Those eligible for awards included employees, directors and consultants who provide services to Amkor and its subsidiaries. There were originally 17.0 million shares of our common stock reserved for issuance under the 2007 Plan. No awards have been or will be granted under the 2007 Plan after the effective date of the 2021 Plan (as defined below), but all outstanding awards under the 2007 Plan will continue in full force and effect, subject to their original terms. 2021 Equity Incentive Plan. On May 18, 2021, at our 2021 Annual Meeting of Stockholders (the “2021 Annual Meeting”), our stockholders approved the Amkor Technology, Inc. 2021 Equity Incentive Plan (as amended, the “2021 Plan”) to replace the 2007 Plan. The 2021 Plan provides for the grant of the following types of incentive awards: (i) stock options; (ii) restricted stock; (iii) restricted stock units; (iv) stock appreciation rights; (v) performance units and performance shares; and (vi) other stock or cash awards. Those eligible for awards include employees, directors and consultants who provide services to Amkor and its subsidiaries. The number of shares authorized and available for issuance under the 2021 Plan is 23,100,000 shares, reduced for certain awards granted under the 2007 Plan after December 31, 2020, but before May 18, 2021. There were originally 22.8 million shares of our common stock reserved for issuance under the 2021 Plan, and at December 31, 2024, there were 19.4 million shares available for grant under the 2021 Plan. Stock options Stock options are generally granted with an exercise price equal to the market price of the stock at the date of grant. Substantially all of the options granted are exercisable pursuant to a one to four year vesting schedule, and the term of the options granted is no longer than ten years . Upon option exercise, we may issue new shares of common or treasury stock. In order to calculate the fair value of stock options at the date of grant, we use the Black-Scholes option pricing model. Expected volatilities are based on historical performance of our stock. We also use historical data to estimate the timing and amount of option exercises and forfeitures within the valuation model. The expected term of the options is based on evaluations of historical and expected future employee exercise behavior and represents the period of time that options granted are expected to be outstanding. The risk-free interest rate for periods within the contractual life of the option is based on the U.S. Treasury yield curve in effect at the time of grant. 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. 66 Table of Contents AMKOR TECHNOLOGY, INC. Notes to Consolidated Financial Statements — (Continued) The following table summarizes our stock option activity for the year ended December 31, 2024: Number of Shares (In thousands) Weighted-Average Exercise Price per Share Weighted-Average Remaining Contractual Term (Years) Aggregate Intrinsic Value (In thousands) Outstanding at December 31, 2023 2,031 $ 10.58 Granted — — Exercised ( 396 ) 12.61 Forfeited or expired ( 10 ) 13.49 Outstanding at December 31, 2024 1,625 $ 10.07 3.45 years $ 25,380 Fully vested at December 31, 2024 and expected to vest thereafter 1,625 $ 10.07 3.45 years $ 25,380 Exercisable at December 31, 2024 1,625 $ 10.07 3.45 years $ 25,380 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 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 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 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. 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 67 Table of Contents 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: Number of Shares (In thousands) Weighted- average Grant Date Fair Value (Per Share) Non-vested at December 31, 2021 286 $ 22.48 Awards granted 531 22.29 Awards vested ( 22 ) 22.23 Awards forfeited ( 57 ) 22.63 Non-vested at December 31, 2022 738 22.34 Awards granted 1,049 26.72 Awards vested ( 464 ) 22.19 Awards forfeited ( 16 ) 25.24 Non-vested at December 31, 2023 1,307 25.87 Awards granted 1,026 29.00 Awards vested ( 489 ) 27.37 Awards forfeited ( 217 ) 24.62 Non-vested at December 31, 2024 1,627 $ 27.56 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, 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. 3. Other Income and Expense Other income and expense consists of the following: For the Year Ended December 31, 2024 2023 2022 (In thousands) Interest income $ ( 65,541 ) $ ( 48,458 ) $ ( 12,762 ) Foreign currency (gain) loss, net 8,856 18,361 ( 1,572 ) Loss on debt retirement — — 464 Other ( 821 ) ( 2,457 ) ( 4,439 ) Total other (income) expense, net $ ( 57,506 ) $ ( 32,554 ) $ ( 18,309 ) 68 Table of Contents AMKOR TECHNOLOGY, INC. Notes to Consolidated Financial Statements — (Continued) 4. Income Taxes Geographic sources of income (loss) before taxes are as follows: For the Year Ended December 31, 2024 2023 2022 (In thousands) United States $ 81,289 $ 94,643 $ 81,488 Foreign 349,727 349,198 775,444 Income before taxes $ 431,016 $ 443,841 $ 856,932 The components of the provision (benefit) for income taxes are as follows: For the Year Ended December 31, 2024 2023 2022 (In thousands) Current: Federal $ 7,898 $ 19,831 $ 40,063 State 34 7 150 Foreign 68,333 48,478 61,300 76,265 68,316 101,513 Deferred: Federal 153 8,899 ( 10,156 ) State ( 501 ) 1 1,458 Foreign ( 436 ) 4,494 ( 2,925 ) ( 784 ) 13,394 ( 11,623 ) Income tax expense $ 75,481 $ 81,710 $ 89,890 The reconciliation between the U.S. federal statutory income tax rate of 21% and our effective tax rate is as follows: For the Year Ended December 31, 2024 2023 2022 U.S. federal statutory income tax rate 21.0 % 21.0 % 21.0 % Foreign income taxed at different rates ( 2.1 ) ( 4.2 ) ( 12.0 ) Foreign exchange (loss) gain 1.4 0.5 2.2 Change in valuation allowance ( 1.8 ) 2.9 ( 2.4 ) Income tax credits generated ( 6.8 ) ( 7.5 ) ( 6.1 ) Foreign earnings and profits 3.5 7.0 9.0 Foreign derived intangible income ( 1.8 ) ( 1.6 ) ( 0.9 ) Settlements and changes in uncertain tax positions 3.8 ( 0.5 ) ( 0.2 ) Other 0.3 0.8 ( 0.1 ) Income tax expense 17.5 % 18.4 % 10.5 % In 2022, we reversed $ 17.8 million of valuation allowance recorded against U.S. foreign tax credit carryforwards previously projected to expire unused due to the limitations to utilize the credits under current tax law. 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 69 Table of Contents 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. We recognized $ 33.2 million, $ 18.6 million and $ 84.5 million in tax benefits as a result of the conditional reduced tax rates in 2024, 2023 and 2022, respectively. 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. The following is a summary of the components of our deferred tax assets and liabilities: December 31, 2024 2023 (In thousands) Deferred tax assets: Net operating loss carryforwards $ 21,420 $ 33,679 Tax credit carryforwards 69,373 88,147 Property, plant and equipment 18,512 21,387 Deferred interest expense 446 476 Accrued liabilities 37,968 37,832 Receivable 27,284 30,086 Unrealized foreign exchange loss 23,769 7,205 Operating lease liabilities 14,825 16,053 Other 14,203 15,219 Total deferred tax assets 227,800 250,084 Valuation allowance ( 107,113 ) ( 114,811 ) Total deferred tax assets net of valuation allowance 120,687 135,273 Deferred tax liabilities: Property, plant and equipment 27,442 34,206 Deferred gain 3,341 5,739 Unrealized foreign exchange gain 6,674 3,129 Unbilled receivables 6,508 8,995 Operating lease right of use assets 14,240 16,031 Other 6,560 5,533 Total deferred tax liabilities 64,765 73,633 Net deferred tax assets $ 55,922 $ 61,640 Recognized as: Other assets $ 72,488 $ 73,585 Other non-current liabilities ( 16,566 ) ( 11,945 ) Total $ 55,922 $ 61,640 We monitor on an ongoing basis our ability to utilize our deferred tax assets and whether there is a need for a related valuation allowance. In evaluating our ability to recover our deferred tax assets in the jurisdictions from which they arise, we consider all available positive and negative evidence, including scheduled reversals of deferred tax liabilities, projected future taxable income, tax-planning strategies and recent results of operations. 70 Table of Contents AMKOR TECHNOLOGY, INC. Notes to Consolidated Financial Statements — (Continued) Valuation allowance against deferred tax assets consist of the following: December 31, 2024 2023 (In thousands) Valuation allowance: U.S. $ 44,853 $ 44,426 Foreign 62,260 70,385 Total valuation allowance $ 107,113 $ 114,811 Our net operating loss carryforwards are as follows: December 31, 2024 2023 Expiration (In thousands) U.S. federal net operating loss carryforwards $ — $ 5,611 2024 U.S. state net operating loss carryforwards 27,334 32,612 2025-2036 Foreign net operating loss carryforwards 207,203 196,636 2025-2031 At December 31, 2024 and 2023, a portion of our remaining U.S. federal net operating loss carryforwards was reserved with a valuation allowance due to ownership change limitations from a prior year acquisition as well as certain state net operating loss carryforwards expected to expire unused. Also, we have a valuation allowance against foreign net operating loss carryforwards that we do not expect to have sufficient taxable income to realize as of December 31, 2024 and 2023. Our tax credit carryforwards are as follows: December 31, 2024 2023 Expiration (In thousands) U.S. Foreign Tax Credits $ 49,639 $ 51,512 2027-2034 U.S. Other Tax Credits 3,817 2,559 2026-2034 Foreign Tax Credits 19,543 34,546 2025-2034 At December 31, 2024 and 2023, a portion of our U.S. and foreign tax credit carryforwards were reserved with a valuation allowance for the amount expected to expire unused. Distributions of cash to the U.S. as dividends generally will not be subject to U.S. federal income tax. We have not provided foreign withholding taxes or state income taxes on the undistributed earnings of our foreign subsidiaries, over which we have sufficient influence to control the distribution of such earnings and have determined that substantially all such earnings have been reinvested indefinitely. These earnings could become subject to foreign withholding tax if they are remitted as dividends. For the year ended December 31, 2024, we estimate that repatriation of these foreign earnings would generate withholding taxes and state income taxes of approximately $ 160 million. We operate in and file income tax returns in various U.S. and foreign jurisdictions which are subject to examination by tax authorities. We have tax returns that are open to examination in various jurisdictions for tax years 2013-2024. The open years contain matters that could be subject to differing interpretations of applicable tax laws and regulations related to the amount and/or timing of income, deductions and tax credits. There can be no assurance that the outcome of examinations will be favorable. Our unrecognized tax benefits are subject to change as examinations of specific tax years are completed in the respective jurisdictions. In certain circumstances where we elect to appeal the results of an 71 Table of Contents AMKOR TECHNOLOGY, INC. Notes to Consolidated Financial Statements — (Continued) examination, we may be required to make tax assessment payments to proceed with the administrative appeal process. 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: For the Year Ended December 31, 2024 2023 2022 (In thousands) Balance at January 1 $ 31,537 $ 33,253 $ 37,293 Additions based on tax positions related to the current year 7,260 — 1,519 Additions for tax positions of prior years 3,761 495 1,909 Reductions for tax positions of prior years ( 4,992 ) ( 345 ) ( 5,755 ) Reductions related to settlements with tax authorities ( 789 ) — ( 988 ) Reductions from lapse of statutes of limitations ( 461 ) ( 1,866 ) ( 725 ) Balance at December 31 $ 36,316 $ 31,537 $ 33,253 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 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. 5. Earnings Per Share Basic earnings per share (“EPS”) is computed by dividing net income attributable to Amkor common stockholders by the weighted-average number of common shares outstanding during the period. The weighted-average number of common shares outstanding is reduced for treasury stock. Diluted EPS is computed based on the weighted-average number of common shares outstanding plus the effect of dilutive potential common shares outstanding during the period. Dilutive potential common shares include outstanding stock options, PSUs, RSUs and unvested restricted shares. 72 Table of Contents AMKOR TECHNOLOGY, INC. Notes to Consolidated Financial Statements — (Continued) The following table summarizes the computations of basic and diluted EPS: For the Year Ended December 31, 2024 2023 2022 (In thousands, except per share data) Net income attributable to Amkor common stockholders $ 354,012 $ 359,813 $ 765,823 Weighted-average number of common shares outstanding — basic 246,344 245,628 244,676 Effect of dilutive securities: Share-based awards 1,474 1,548 1,529 Weighted-average number of common shares outstanding — diluted 247,818 247,176 246,205 Net income attributable to Amkor per common share: Basic $ 1.44 $ 1.46 $ 3.13 Diluted $ 1.43 $ 1.46 $ 3.11 The following table summarizes the potential shares of common stock that were excluded from diluted EPS, because the effect of including these potential shares was anti-dilutive: For the Year Ended December 31, 2024 2023 2022 (In thousands) Share-based awards — 2 180 73 Table of Contents AMKOR TECHNOLOGY, INC. Notes to Consolidated Financial Statements — (Continued) 6. Investments The following table summarizes our cash equivalents and available-for-sale debt investments: December 31, 2024 Fair Value Level Amortized Cost Gross Unrealized Gains Gross Unrealized Losses (1) Total Fair Value Level 1 Level 2 (In thousands) Cash equivalents Commercial paper $ 53,110 $ — $ — $ 53,110 $ — $ 53,110 Corporate bonds 755 — — 755 — 755 Money market funds 146,679 — — 146,679 146,679 — U.S. government bonds 16,450 4 — 16,454 16,454 — Total cash equivalents (2) 216,994 4 — 216,998 163,133 53,865 Short-term investments Asset-backed securities 63,256 168 ( 1,038 ) 62,386 — 62,386 Certificate of deposits 15,121 — — 15,121 15,121 — Commercial paper 36,829 — — 36,829 — 36,829 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 U.S. government agency bonds 11,392 — ( 25 ) 11,367 — 11,367 U.S. government bonds 110,522 102 ( 170 ) 110,454 110,454 — Total short-term investments 509,067 841 ( 1,352 ) 508,556 125,575 382,981 Total $ 726,061 $ 845 $ ( 1,352 ) $ 725,554 $ 288,708 $ 436,846 74 Table of Contents AMKOR TECHNOLOGY, INC. Notes to Consolidated Financial Statements — (Continued) December 31, 2023 Fair Value Level Amortized Cost Gross Unrealized Gains Gross Unrealized Losses (1) Total Fair Value Level 1 Level 2 (In thousands) Cash equivalents Asset-backed securities $ 138 $ — $ — $ 138 $ — $ 138 Commercial paper 48,063 — — 48,063 — 48,063 Money market funds 60,719 — — 60,719 60,719 — US government bonds 2,996 — — 2,996 2,996 — Total cash equivalents (2) 111,916 — — 111,916 63,715 48,201 Short-term investments Asset-backed securities 65,340 170 ( 22 ) 65,488 — 65,488 Certificate of deposits 17,086 — — 17,086 17,086 — Commercial paper 56,273 — — 56,273 — 56,273 Corporate bonds 251,671 432 ( 299 ) 251,804 — 251,804 U.S. government agency bonds 13,200 — ( 9 ) 13,191 — 13,191 U.S. government bonds 65,881 13 ( 79 ) 65,815 65,815 — Total short-term investments 469,451 615 ( 409 ) 469,657 82,901 386,756 Total $ 581,367 $ 615 $ ( 409 ) $ 581,573 $ 146,616 $ 434,957 (1) All unrealized losses have been in a continuous loss position for less than 12 months. We do not intend to sell the investments in an unrealized loss position, and we do not believe it is more likely than not that we will be required to sell these investments before recovery of their amortized cost bases. (2) During the years ended December 31, 2024, 2023, and 2022 we sold cash equivalent investments for proceeds of $ 29.8 million, $ 47.0 million and $ 29.6 million, respectively, and realized no gain or loss on such sales. The following table summarizes the contractual maturities of our cash equivalents and available-for-sale debt investments as of December 31, 2024: Amortized Cost Fair Value Within 1 year $ 493,164 $ 493,511 After 1 year through 5 years 158,482 158,514 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. 75 Table of Contents AMKOR TECHNOLOGY, INC. Notes to Consolidated Financial Statements — (Continued) 7. Factoring of Accounts Receivable For certain accounts receivable, we use non-recourse factoring arrangements with third-party financial institutions to manage our working capital and cash flows. Under these arrangements, we sell receivables to a financial institution for cash at a discount to the face amount. As part of the factoring arrangements, we perform certain collection and administrative functions for the receivables sold. For the years ended December 31, 2024 and 2023, we sold accounts receivable totaling $ 158.6 million and $ 253.9 million, net of discounts and fees of $ 0.4 million and $ 1.3 million, respectively. 8. Property, Plant and Equipment Property, plant and equipment consist of the following: December 31, 2024 2023 (In thousands) Land $ 246,953 $ 212,722 Buildings and improvements 2,239,481 2,080,589 Machinery and equipment 7,389,787 7,022,614 Finance lease assets 274,302 209,506 Furniture, fixtures and other equipment 18,652 22,655 Software and computer equipment 215,031 200,362 Construction in progress 185,351 223,332 Total property, plant and equipment 10,569,557 9,971,780 Accumulated depreciation and amortization ( 6,993,409 ) ( 6,672,335 ) 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: For the Year Ended December 31, 2024 2023 2022 (In thousands) Depreciation expense $ 594,141 $ 630,941 $ 612,105 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 . 76 Table of Contents AMKOR TECHNOLOGY, INC. Notes to Consolidated Financial Statements — (Continued) 9. Leases The components of lease expense were as follows: For the Year Ended December 31, 2024 2023 2022 (In thousands) Operating lease cost $ 40,110 $ 70,722 $ 81,410 Finance lease cost Amortization of leased assets 35,290 42,345 24,644 Interest on lease liabilities 9,138 5,521 3,891 Total finance lease cost 44,428 47,866 28,535 Short-term lease cost 4,599 4,788 5,749 Variable lease cost 7,409 6,921 6,592 Net lease cost $ 96,546 $ 130,297 $ 122,286 Other information related to leases was as follows: For the Year Ended December 31, 2024 2023 2022 Supplemental Cash Flows Information (in thousands) Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows for operating leases $ 39,111 $ 73,774 $ 81,044 Operating cash flows for finance leases 8,736 5,419 3,933 Financing cash flows for finance leases 72,255 66,398 40,673 Weighted Average Remaining Lease Term (years) Operating leases 6.0 6.1 4.2 Finance leases 3.9 3.2 2.3 Weighted Average Discount Rate Operating leases 5.8 % 5.2 % 4.4 % Finance leases 6.3 % 5.7 % 4.1 % 77 Table of Contents AMKOR TECHNOLOGY, INC. Notes to Consolidated Financial Statements — (Continued) Maturities of lease liabilities were as follows: December 31, 2024 Operating Leases Finance Leases (In thousands) 2025 $ 30,852 $ 65,666 2026 23,072 52,194 2027 16,258 32,624 2028 6,615 17,433 2029 4,803 23,836 Thereafter 16,884 12,618 Total future minimum lease payments 98,484 204,371 Less: Imputed interest ( 13,674 ) ( 26,050 ) Total $ 84,810 $ 178,321 As of December 31, 2024, we have entered into additional lease agreements that have not yet commenced of approximately $ 22 million. 10. Accrued Expenses Accrued expenses consist of the following: December 31, 2024 2023 (In thousands) Payroll and benefits $ 121,683 $ 115,604 Deferred revenue and customer advances 59,656 71,117 Short-term finance lease liability 55,613 57,761 Income taxes payable 35,067 35,215 Accrued pension and severance obligations (Note 12) 13,091 7,906 Accrued interest 11,487 11,175 Other accrued expenses 59,740 59,636 Total accrued expenses $ 356,337 $ 358,414 78 Table of Contents AMKOR TECHNOLOGY, INC. Notes to Consolidated Financial Statements — (Continued) 11. Debt Short-term borrowings and long-term debt consist of the following: December 31, 2024 2023 (In thousands) Debt of Amkor Technology, Inc.: Senior notes: 6.625 % Senior notes, due September 2027 $ 525,000 $ 525,000 Debt of subsidiaries: Amkor Technology Korea, Inc.: Term loan, fixed rate at 3.95 %, due May 2027 (1) — — Term loan, fixed rate at 2.12 %, due December 2028 200,000 200,000 Amkor Technology Japan, Inc.: Short-term term loans, variable rate (2) — 5,098 Term loan, fixed rate at 1.35 %, due December 2024 — 40,414 Term loan, fixed rate at 1.20 %, due December 2025 13,868 30,913 Term loan, fixed rate at 1.23 %, due December 2026 33,333 55,729 Term loan, fixed rate at 1.59 %, due December 2027 59,923 89,053 Term loan, fixed rate at 1.80 %, due December 2028 89,059 124,078 Term loan, fixed rate at 2.05 %, due December 2029 (3) 108,779 — Amkor Assembly & Test (Shanghai) Co., Ltd.: Term loans, SOFR plus 0.75 %, due June 2025 35,000 37,000 Term loans, SOFR plus 0.75 %, due 2025 55,500 57,500 Term loans, SOFR plus 0.95 %, due December 2026 (4) 44,000 45,000 Other: Senior secured revolving credit facility, applicable bank rate plus 1.75 %, due March 2027 (Singapore) (5) — — 1,164,462 1,209,785 Less: Unamortized discount and deferred debt costs, net ( 5,002 ) ( 6,329 ) Less: Short-term borrowings and current portion of long-term debt ( 236,029 ) ( 131,624 ) 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 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. (2) We entered into various short-term term loans which mature semiannually. Principal and interest are payable in monthly installments. As of December 31, 2024, $ 6.0 million was available to be drawn. (3) In December 2024, we borrowed ¥ 17.1 billion (US$ 113.9 million) under a new term loan agreement due December 2029, guaranteed by Amkor Technology, Inc. and our subsidiary, ATSH. Principal is due in 20 equal, quarterly installments plus accrued interest, through maturity. 79 Table of Contents AMKOR TECHNOLOGY, INC. Notes to Consolidated Financial Statements — (Continued) (4) In February 2024, Amkor Assembly & Test (Shanghai) Co. Ltd. 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 March 2022, ATSH entered into the 2022 Singapore Revolver, which is guaranteed by Amkor Technology, Inc., ATT and AATT. The maximum borrowing capacity under the 2022 Singapore Revolver is limited to a base amount equal to the lesser of: (1) $ 600.0 million; or (2) $ 250.0 million plus a variable amount equal to 37.5 % of our consolidated accounts receivable balance. As of December 31, 2024, $ 600.0 million was available for future borrowings under the 2022 Singapore Revolver. Certain of our foreign debt is collateralized by the land, buildings, equipment and accounts receivable in the respective locations. As of December 31, 2024 the collateralized debt balance was $ 639.5 million, of which $ 286.1 million of assets were pledged as collateral. Interest Rates Interest is payable semiannually on our senior notes and quarterly or monthly on our other fixed- and variable-rate debt. Refer to the table above for the interest rates on our fixed-rate debt and to the table below for the interest rates on our variable-rate debt. December 31, 2024 2023 Amkor Technology Japan, Inc: Short-term term loans, variable rate — % 0.24 % Amkor Assembly & Test (Shanghai) Co., Ltd.: Term loans, SOFR plus 0.75 % due June 2025 5.15 % 6.07 % Term loans, SOFR plus 0.75 %, due 2025 5.15 % 6.07 % Term loans, SOFR plus 0.95 %, due December 2026 5.28 % 6.76 % Compliance with Debt Covenants The debt of Amkor Technology, Inc. is structurally subordinated in right of payment to all existing and future debt and other liabilities of our subsidiaries. From time to time, Amkor Technology, Inc., ATT, AATT and ATSH guarantee certain debt of our subsidiaries. The agreements governing our indebtedness contain affirmative and negative covenants which restrict our ability to pay dividends and could restrict our operations. These restrictions are determined in part by calculations based upon cumulative net income and do not currently have a material impact on our ability to make dividend payments or stock repurchases. We were in compliance with all debt covenants at December 31, 2024 and 2023. 80 Table of Contents AMKOR TECHNOLOGY, INC. Notes to Consolidated Financial Statements — (Continued) Maturities Total Debt (In thousands) Payments due for the year ending December 31, 2025 $ 236,029 2026 173,662 2027 638,995 2028 94,020 2029 21,756 Thereafter — Total debt $ 1,164,462 12. Pension and Severance Plans Korean Severance Plan Our subsidiary in Korea maintains an unfunded severance plan that covers certain employees that were employed prior to August 1, 2015. To the extent eligible employees are terminated, our subsidiary in Korea would be required to make lump-sum severance payments on behalf of these eligible employees for service provided prior to August 1, 2015. Factors used to determine severance benefits include employees’ length of service, seniority and rate of pay. The employees’ length of service and seniority are fixed as of July 31, 2015. The employees’ rate of pay is adjusted to the rate of pay at the time of termination. Accrued severance benefits are estimated assuming all eligible employees were to terminate their employment at the balance sheet date. Our contributions to the National Pension Plan of the Republic of Korea are deducted from accrued severance benefit liabilities. On August 1, 2015, our subsidiary in Korea began sponsoring a defined benefit pension plan and a defined contribution plan. Existing employees at that time were given the option of choosing either a defined benefit pension plan or a defined contribution plan for their future benefits and new employees since that date are enrolled in a defined contribution plan. The changes to the balance of our accrued severance plan obligations are as follows: For the Year Ended December 31, 2024 2023 (In thousands) Balance at January 1 $ 47,906 $ 56,289 Provision of severance benefits 3,142 1,653 Severance payments ( 1,416 ) ( 8,770 ) Foreign currency (gain) loss ( 6,194 ) ( 1,266 ) Balance at December 31 43,438 47,906 Payments remaining with the National Pension Fund ( 101 ) ( 119 ) Total accrued severance plan obligations at December 31 43,337 47,787 Less current portion of accrued severance plan obligations (Note 10) (1) 12,231 7,906 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. 81 Table of Contents AMKOR TECHNOLOGY, INC. Notes to Consolidated Financial Statements — (Continued) Foreign Defined Benefit Pension Plans Our subsidiaries in Japan, Korea, Malaysia, the Philippines and Taiwan sponsor defined benefit plans (the “Plans”). Charges to expense are based upon actuarial analyses. The following table summarizes the changes to the Plans’ benefit obligations, fair value of the Plans’ assets and the funded status of the Plans at December 31, 2024 and 2023: For the Year Ended December 31, 2024 2023 (In thousands) Change in projected benefit obligation: Projected benefit obligation at January 1 $ 164,281 $ 159,760 Service cost 13,645 15,032 Interest cost 5,718 6,202 Benefits paid ( 11,320 ) ( 14,056 ) Actuarial (gain) loss 2,458 4,150 Effects of curtailment ( 320 ) ( 617 ) Settlement ( 883 ) ( 1,073 ) Foreign exchange (gain) loss ( 14,423 ) ( 5,117 ) Projected benefit obligation at December 31 159,156 164,281 Change in plan assets: Fair value of plan assets at January 1 129,196 127,338 Actual gain (loss) on plan assets 8,918 12,325 Employer contributions 12,165 7,368 Settlement ( 883 ) ( 1,073 ) Benefits paid ( 11,320 ) ( 14,056 ) Foreign exchange gain (loss) ( 12,794 ) ( 2,706 ) Fair value of plan assets at December 31 125,282 129,196 Funded status of the Plans at December 31 $ ( 33,874 ) $ ( 35,085 ) December 31, 2024 2023 (In thousands) Amounts recognized in the Consolidated Balance Sheets consist of: Prepaid benefit cost (included in non-current assets) $ 5,991 $ 12,039 Accrued benefit liability (included in pension and severance obligations) (1) ( 39,865 ) ( 47,124 ) 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. 82 Table of Contents AMKOR TECHNOLOGY, INC. Notes to Consolidated Financial Statements — (Continued) The following table summarizes, by component, the change in accumulated other comprehensive income (loss), net of tax related to our Plans: Prior Service Cost Actuarial Net Gain (Loss) Total (In thousands) Balance at December 31, 2022 $ 602 $ 13,618 $ 14,220 Amortization and settlement gain included in net periodic pension cost — ( 46 ) ( 46 ) Net gain (loss) arising during period — 1,731 1,731 Adjustments to unrealized components of defined benefit pension plan included in other comprehensive income (loss) — 1,685 1,685 Balance at December 31, 2023 $ 602 $ 15,303 $ 15,905 Amortization and settlement gain included in net periodic pension cost — ( 388 ) ( 388 ) Net gain (loss) arising during period — 1,053 1,053 Adjustments to unrealized components of defined benefit pension plan included in other comprehensive income (loss) — 665 665 Balance at December 31, 2024 $ 602 $ 15,968 $ 16,570 Information for pension plans with benefit obligations in excess of plan assets is as follows: December 31, 2024 2023 (In thousands) Plans with underfunded or non-funded projected benefit obligation: Aggregate projected benefit obligation $ 92,191 $ 100,662 Aggregate fair value of plan assets 52,326 53,539 Plans with underfunded or non-funded accumulated benefit obligation: Aggregate accumulated benefit obligation 55,646 60,638 Aggregate fair value of plan assets 20,122 21,304 The following table summarizes total pension expense: For the Year Ended December 31, 2024 2023 2022 (In thousands) Components of net periodic pension cost and total pension expense: Service cost $ 13,645 $ 15,032 $ 20,072 Interest cost 5,718 6,202 4,731 Expected return on plan assets ( 5,554 ) ( 5,144 ) ( 5,605 ) Recognized actuarial (gain) loss ( 462 ) ( 156 ) 53 Net periodic pension cost 13,347 15,934 19,251 Curtailment (gain) loss ( 320 ) ( 617 ) — Settlement (gain) loss 33 132 ( 1,374 ) Total pension expense $ 13,060 $ 15,449 $ 17,877 The components of net periodic pension cost other than the service cost component are included in other (income) expense, net in our Consolidated Statements of Income. 83 Table of Contents AMKOR TECHNOLOGY, INC. Notes to Consolidated Financial Statements — (Continued) The following table summarizes the weighted-average assumptions used in computing the net periodic pension cost and projected benefit obligations: For the Year Ended December 31, 2024 2023 2022 Discount rate for determining net periodic pension cost 3.8 % 4.2 % 2.6 % Discount rate for determining benefit obligations at December 31 3.8 % 3.8 % 4.2 % Rate of compensation increase for determining net periodic pension cost 3.7 % 3.6 % 3.7 % Rate of compensation increase for determining benefit obligations at December 31 3.8 % 3.7 % 3.6 % Expected rate of return on plan assets for determining net periodic pension cost 4.5 % 4.1 % 3.8 % The measurement date for determining the Plans’ assets and benefit obligations is December 31, each year. Discount rates are generally derived from yield curves constructed from high-quality corporate or foreign government bonds, for which the timing and amount of cash outflows approximate the estimated payouts. The expected rate of return assumption is based on weighted-average expected returns for each asset class. Expected returns reflect a combination of historical performance analysis and the forward-looking views of the financial markets and include input from our actuaries. We have no control over the direction of our investments in our defined benefit plans in Taiwan as the local Labor Standards Law Fund mandates such contributions into a cash account balance at the Bank of Taiwan. Our defined benefit pension plan in Malaysia is a non-funded plan, and as such, no asset exists related to this plan. Our investment strategies for our defined benefit plans in Japan, Korea and the Philippines are based on long-term, sustained asset growth through low to medium risk investments. The current rate of return assumption targets are based on asset allocation strategies as follows: Allocation Debt Equity Other Japan defined benefit plan 64 % 34 % 2 % Korea defined benefit plan 30 % 20 % 50 % Philippine defined benefit plan 50 % 45 % 5 % 84 Table of Contents AMKOR TECHNOLOGY, INC. Notes to Consolidated Financial Statements — (Continued) The fair value of our pension plan assets, by asset category utilizing the fair value hierarchy as discussed in Note 16, is as follows: December 31, 2024 December 31, 2023 Level 1 Level 2 Total Level 1 Level 2 Total (In thousands) (In thousands) Cash and cash equivalents $ 749 $ — $ 749 $ 217 $ — $ 217 Equity securities 14,276 — 14,276 13,680 — 13,680 Debt securities Government bonds 3,712 — 3,712 3,674 — 3,674 Corporate bonds 1,259 — 1,259 1,130 — 1,130 Treasury notes 11,881 — 11,881 11,993 — 11,993 Mutual and commingled funds Equity funds 11,950 7,270 19,220 29,016 7,807 36,823 Debt funds 18,210 12,516 30,726 12,031 13,163 25,194 Guaranteed investment contracts — 30,365 30,365 — 23,189 23,189 Taiwan retirement fund 12,428 — 12,428 12,478 — 12,478 Other, net — 666 666 — 818 818 Total fair value of pension plan assets $ 74,465 $ 50,817 $ 125,282 $ 84,219 $ 44,977 $ 129,196 The Taiwan retirement fund category of our plan assets represents accounts that our subsidiaries in Taiwan have in a government labor retirement fund in the custody of the Bank of Taiwan. The accounts earn a minimum guaranteed rate of return and are invested in a mix of cash, domestic and foreign equity securities and domestic and foreign debt securities. We expect to make contributions of approximately $ 10 million during 2025. We closely monitor the funded status of the Plans with respect to legislative requirements. We intend to make at least the minimum contribution required by law each year. The estimated future benefit payments related to our foreign defined benefit plans are as follows: Payments (In thousands) 2025 $ 9,307 2026 11,145 2027 13,419 2028 14,037 2029 13,922 2030 to 2034 97,256 Defined Contribution Plans We sponsor defined contribution plans in Korea, Malaysia, Taiwan and the U.S. Total defined contribution expense was $ 26.5 million, $ 27.0 million and $ 24.2 million for 2024, 2023 and 2022, respectively. 85 Table of Contents AMKOR TECHNOLOGY, INC. Notes to Consolidated Financial Statements — (Continued) 13. Dividends 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. 14. Accumulated Other Comprehensive Income (Loss) The following table reflects the changes in accumulated other comprehensive income (loss), net of tax: Unrealized Gain (Losses) on Available-for-Sale Debt Investments (1) Defined Benefit Pension (2) Foreign Currency Translation (3) Total (In thousands) Balance at December 31, 2022 $ ( 1,573 ) $ 14,220 $ 4,052 $ 16,699 Other comprehensive income (loss) before reclassifications 2,265 1,731 ( 3,819 ) 177 Amounts reclassified from accumulated other comprehensive income (loss) ( 480 ) ( 46 ) — ( 526 ) Other comprehensive income (loss) 1,785 1,685 ( 3,819 ) ( 349 ) Balance at December 31, 2023 $ 212 $ 15,905 $ 233 $ 16,350 Other comprehensive income (loss) before reclassifications ( 469 ) 1,053 ( 8,783 ) ( 8,199 ) Amounts reclassified from accumulated other comprehensive income (loss) ( 253 ) ( 388 ) — ( 641 ) Other comprehensive income (loss) ( 722 ) 665 ( 8,783 ) ( 8,840 ) Balance at December 31, 2024 $ ( 510 ) $ 16,570 $ ( 8,550 ) $ 7,510 (1) Amounts reclassified out of accumulated other comprehensive income (loss) are included as other (income) expense, net (Note 3). (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). 15. Derivatives We use foreign currency forward contracts to mitigate foreign currency risk of certain assets and monetary liabilities denominated in foreign currencies. We do not enter into such contracts for trading or speculative purposes. 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. 86 Table of Contents AMKOR TECHNOLOGY, INC. Notes to Consolidated Financial Statements — (Continued) As of December 31, 2024 and 2023, our foreign exchange forward contracts consisted of the following: 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 not designated as hedging instruments Japanese yen $ 254,783 $ 10 Other current assets $ 279,027 $ 2,745 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 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. 87 Table of Contents AMKOR TECHNOLOGY, INC. Notes to Consolidated Financial Statements — (Continued) 16. Fair Value Measurements The accounting framework for determining fair value includes a hierarchy for ranking the quality and reliability of the information used to measure fair value, which enables the reader of the financial statements to assess the inputs used to develop those measurements. The fair value hierarchy consists of three tiers as follows: Level 1, defined as quoted market prices in active markets for identical assets or liabilities; Level 2, defined as inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active, model-based valuation techniques for which all significant assumptions are observable in the market or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities; and Level 3, defined as unobservable inputs that are not corroborated by market data. For our Level 2 short-term investments, we consider factors such as actual trade data, benchmark yields, broker/dealer quotes, and other similar data obtained from quoted market prices and independent pricing vendors to determine the fair value of these assets and liabilities. The fair values of cash, accounts receivable, trade accounts payable, capital expenditures payable, and certain other current assets and accrued expenses approximate carrying values because of their short-term nature. The carrying value of certain other non-current assets and liabilities approximates fair value. Our assets and liabilities recorded at fair value on a recurring basis include restricted cash money market funds and short-term investments, including investments classified as cash equivalents. Cash equivalent money market funds and restricted cash money market funds are invested in U.S. money market funds and various U.S. and foreign bank operating and time deposit accounts, which are due on demand or carry a maturity date of less than three months when purchased. No restrictions have been imposed on us regarding withdrawal of balances with respect to our cash equivalents as a result of liquidity or other credit market issues affecting the money market funds we invest in or the counterparty financial institutions holding our deposits. Our derivative financial instruments are valued using quoted market prices for similar assets. Counterparties to these derivative contracts are highly rated financial institutions. We also measure certain assets and liabilities, including property, plant and equipment and goodwill, at fair value on a nonrecurring basis. We measure the fair value of our debt for disclosure purposes. The following table presents the fair value of our debt: December 31, 2024 December 31, 2023 Fair Value Carrying Value Fair Value Carrying Value (In thousands) Senior notes (Level 1) $ 525,562 $ 522,615 $ 531,778 $ 521,839 Revolving credit facilities and term loans (Level 2) 625,818 636,845 666,316 681,617 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. The estimated fair value of our revolving credit facilities and term loans is calculated using a discounted cash flow analysis, which utilizes market-based assumptions including forward interest rates adjusted for credit risk. 17. Commitments and Contingencies We generally warrant that our services will be performed in a professional and workmanlike manner and in compliance with our customers’ specifications. We accrue costs for known warranty issues. Historically, our warranty costs have been immaterial. Legal Proceedings 88 Table of Contents 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. We evaluate these claims and legal matters on a case-by-case basis to make a determination as to the impact, if any, on our business, liquidity, results of operations, financial condition or cash flows. Although the outcome of these matters is uncertain, we believe that the ultimate outcome of these claims and proceedings, individually and in the aggregate, will not have a material adverse impact to us. Our evaluation of the potential impact of these claims and legal proceedings on our business, liquidity, results of operations, financial condition or cash flows could change in the future. 18. Business Segments, Customer Concentrations and Geographic Information We operate as a single operating segment as managed by our Chief Executive Officer, who is considered our chief operating decision maker (“CODM”). The CODM bears the ultimate responsibility for, and is actively engaged in, the allocation of resources and the evaluation of our operating and financial results. We have concluded that we have a single operating segment based on the following: • We are managed under a functionally-based organizational structure with the head of each function reporting directly to the CODM; • 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; and • 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 Less: 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 89 Table of Contents 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: December 31, 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: For the Year Ended December 31, 2024 2023 2022 (In thousands) Advanced Products $ 5,174,459 $ 5,032,859 $ 5,367,589 Mainstream Products 1,143,233 1,470,206 1,723,996 Total net sales $ 6,317,692 $ 6,503,065 $ 7,091,585 (1) Advanced Products include flip chip, memory and wafer-level processing and related test services. (2) Mainstream Products include all other wirebond packaging and related test services. Net sales by end market consist of the following : For the Year Ended December 31, 2024 2023 2022 Communications (smartphones, tablets) 48 % 50 % 44 % 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 % Total net sales 100 % 100 % 100 % Net sales by region based on customer headquarters location consist of the following: For the Year Ended December 31, 2024 2023 2022 (In thousands) Europe, Middle East and Africa $ 817,875 $ 1,043,880 $ 1,084,853 Japan 800,713 935,620 1,132,121 Asia Pacific (excluding Japan) 716,344 704,520 1,017,246 Total foreign countries 2,334,932 2,684,020 3,234,220 United States 3,982,760 3,819,045 3,857,365 Total net sales $ 6,317,692 $ 6,503,065 $ 7,091,585 90 Table of Contents 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: December 31, 2024 2023 (In thousands) China $ 308,889 $ 385,544 Japan 139,126 143,399 Korea 1,923,953 1,781,632 Malaysia 55,166 51,164 Philippines 172,180 183,430 Portugal 130,653 108,982 Taiwan 322,539 272,428 Vietnam 471,581 365,059 Other foreign countries 1,553 272 Total foreign countries 3,525,640 3,291,910 United States 50,508 7,535 Total property, plant and equipment, net $ 3,576,148 $ 3,299,445 91 Table of Contents SCHEDULE II — VALUATION AND QUALIFYING ACCOUNTS Balance at Beginning of Period Additions (Credited) Charged to Expense Write-offs Balance at End of Period (In thousands) Deferred tax asset valuation allowance: Year ended at December 31, 2022 $ 122,357 ( 17,762 ) ( 2,726 ) $ 101,869 Year ended at December 31, 2023 $ 101,869 15,838 ( 2,896 ) $ 114,811 Year ended at December 31, 2024 $ 114,811 ( 3,633 ) ( 4,065 ) $ 107,113 92 Table of Contents Item 9. Changes In and Disagreements with Accountants on Accounting and Financial Disclosure None.