Company: AMKR
Filing Date: 2025-07-29
Form Type: 10-Q
Source: 0001047127-25-000168
Chunk: 13

Company: AMKOR TECHNOLOGY, INC.
Filing Date: 2025-07-29
Form: 10-Q
Item: Part I, Item 3
Chunk 13
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Packaging and test processes are complex, and our production yields and customer relationships may suffer from defects in the services we provide or if we do not successfully implement new technologies. 

Semiconductor packaging and test services are complex processes that require significant technological and process expertise, and in line with industry practice, customers usually require us to pass a lengthy and rigorous qualification process that may take several months.  Once qualified and in production, defective packages primarily result from one or more of the following:

•contaminants in the manufacturing environment;

•human error;

•equipment malfunction;

•changing processes to address environmental requirements;

•defective raw materials; or

•defective plating services.

Test is also complex and involves sophisticated equipment and software.  Similar to many software programs, these software programs are complex and may contain programming errors or “bugs.”  The test equipment is also subject to malfunction, and the test process is subject to operator error.

These and other factors have, from time to time, contributed to lower production yields.  They may also do so in the future, particularly as we adjust our capacity, change our processing steps or ramp new technologies.  In addition, we must continue to develop and implement new packaging and test technologies and expand our offering of packages to be 

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competitive.  Our production yields on new packages, particularly those packages which are based on new technologies, typically are significantly lower than our production yields on our more established packages.

Our failure to qualify new processes, maintain quality standards or acceptable production yields, if significant and prolonged, could result in the loss of customers, increased costs of production, delays, substantial amounts of returned goods and claims by customers relating thereto.  Any of these problems could have a material adverse effect on our business, liquidity, results of operations, financial condition and cash flows.

A significant portion of our revenue is derived from customers in the automotive industry.  A downturn or lower sales to customers in the automotive industry could materially affect our business and results of operations.

A significant portion of our sales is to customers within the automotive industry.  The automotive industry is cyclical, and, as a result, our customers in the automotive end-market are sensitive to changes in general economic conditions, inflationary pressure, disruptive innovation and end-market preferences, which can adversely affect sales of our products and, correspondingly, our results of operations.  The automotive industry is also subject to long design-in time frames, long product life cycles and a high degree of regulatory and safety requirements, necessitating suppliers to the