Amkor Technology Reports Strong Q4 Results Amid Challenging Macro Environment
Amkor Technology, a leading provider of semiconductor packaging and test services, reported fourth quarter results that were in line with guidance despite a challenging macro environment. The company's revenue for the quarter came in at $1.63 billion, while earnings per share (EPS) stood at $0.43.
The full year 2024 saw revenue decline by 3% to $6.3 billion compared to the previous year, with weakness in the automotive and industrial end markets being a major headwind. However, Amkor's advanced packaging business continued to grow, with revenue increasing 3% year-over-year and reaching a record of $3.1 billion for the company's SiP product.
The computing end market also reached a record high, driven by growth in ARM-based PCs and 2.5D technology for AI GPUs. Amkor's new Vietnam facility was qualified during the quarter, with production ramping up for system and package memory devices. The company also solidified its U.S. manufacturing strategy, securing $407 million in CHIPS funding to support its planned Arizona facility.
Despite the challenges, Amkor remains focused on strengthening its technology leadership in advanced packaging, expanding its global footprint, and partnering with lead customers in growth markets. In a statement, CEO Giel Rutten highlighted the company's achievements during the year, saying, "Amkor delivered fourth quarter results in line with guidance with revenue of $1.63 billion and EPS of $0.43."
Looking ahead to 2025, Amkor expects its communications business to be muted in the first half but to recover in the second half as it collaborates closely with its strategic customer. The company also sees continued improvement in Android revenue, projecting total communication revenue to be flat year-over-year.
In contrast, the computing end market is expected to show mild growth for the full year despite some uncertainty around political environments limiting visibility. Amkor's advanced packaging business is projected to continue growing, with the company remaining confident in its project pipeline and ability to navigate dynamic markets."
