Company: AMKR
Filing Date: 2025-10-28
Form Type: 10-Q
Source: 0001047127-25-000190
Chunk: 169

Company: AMKOR TECHNOLOGY, INC.
Filing Date: 2025-10-28
Form: 10-Q
Item: Part I, Item 8
Chunk 169
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 compared to 2024, primarily driven by strong demand across all computing applications and in premium tier smartphones.  

The increase in net sales for the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024 was primarily due to growth in our computing and consumer end markets, partially offset by a decrease in the communications end market.  The computing and consumer end markets grew 20% and 18%, respectively, for the nine months ended September 30, 2025 compared to 2024, primarily driven by strong demand across all computing applications as well as IoT wearables.  The communications end market decreased 8% for the nine months ended September 30, 2025 compared to 2024, primarily driven by lower supported content in premium tier smartphones. 

Gross Profit and Gross Margin

For the Three Months Ended September 30,For the Nine Months Ended September 30,20252024Change20252024Change(In thousands, except percentages)Gross profit$284,490 $272,484 $12,006 $623,970 $686,502 $(62,532)Gross margin14.3 %14.6 %(0.3)%12.9 %14.6 %(1.7)%

Our cost of sales consists principally of materials, labor, depreciation and manufacturing overhead.  Since a substantial portion of the costs at our factories is fixed, there tends to be a strong relationship between our revenue levels and gross margin.  Accordingly, relatively modest increases or decreases in revenue can have a significant effect on margin and on labor and other manufacturing costs as a percentage of revenue, depending on product mix, utilization, foreign currency exchange rate movements and seasonality.  We have expanded our business in advanced packaging, which tends to have 

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higher material costs than our other products.  As we continue to increase production of these higher material cost products, there could be an impact on our profitability, depending on overall utilization.

Gross margin decreased for the three and nine months ended September 30, 2025 compared to the three and nine months ended September 30, 2024, primarily due to increased overhead and employee compensation costs, partially offset by a decrease in the proportion of products sold with higher material content and higher factory utilization driven by the increase in net sales.  Gross profit and gross margin for the nine months ended September 30, 2025 was also impacted by the ramp up