Company: AMKR
Filing Date: 2025-07-29
Form Type: 10-Q
Source: 0001047127-25-000168
Chunk: 128

Company: AMKOR TECHNOLOGY, INC.
Filing Date: 2025-07-29
Form: 10-Q
Item: Part I, Item 1
Chunk 128
---
 June 30,For the Six Months Ended June 30,20252024Change20252024Change(In thousands, except percentages)Gross profit$181,897 $212,375 $(30,478)$339,480 $414,018 $(74,538)Gross margin12.0 %14.5 %(2.5)%12.0 %14.6 %(2.6)%

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 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 profit and gross margin decreased for the three and six months ended June 30, 2025 compared to the three and six months ended June 30, 2024, primarily due to increased overhead and employee compensation costs to prepare for our seasonal second half volume.  Gross profit and gross margin were also impacted by the ramp up of the Vietnam Facility, which is in the early stages of high-volume manufacturing.  

-27-

Selling, General and Administrative

For the Three Months Ended June 30,For the Six Months Ended June 30,20252024Change20252024Change(In thousands, except percentages)Selling, general and administrative$47,922 $91,280 $(43,358)(47.5)%$128,330 $181,626 $(53,296)(29.3)%

Selling, general and administrative expenses decreased for the three and six months ended June 30, 2025 compared to the three and six months ended June 30, 2024, primarily due to net cash received in the Nanium Insolvency Receipt and the incremental costs incurred in 2024 during start-up at the Vietnam Facility.  The amount recognized from the Nanium Insolvency Receipt for the three and six months ended June 30, 2025, net of amounts remitted to the selling shareholders, was $