Company: AMKR
Filing Date: 2025-04-29
Form Type: 10-Q
Source: 0001047127-25-000087
Chunk: 12

Company: AMKOR TECHNOLOGY, INC.
Filing Date: 2025-04-29
Form: 10-Q
Item: Part I, Item 3
Chunk 12
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 fail to do so, our gross margins may be negatively impacted.  

In addition, our fixed operating costs have increased as a result of capital expenditures for capacity expansion.  The anticipated customer demand for which we have made capital investments may not materialize, and our sales may not 

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adequately cover fixed costs, resulting in reduced profit levels or even significant losses, either of which may materially and adversely impact our business, liquidity, results of operations, financial condition and cash flows.

The lack of contractually committed customer demand may materially and adversely affect our sales.

Our packaging and test business does not typically operate with any material backlog.  Our quarterly net sales from packaging and test services are substantially dependent upon our customers’ demand in that quarter.  Generally, our customers do not commit to purchase any significant amount of packaging or test services or provide us with binding forecasts of demand for packaging and test services for any future period, in any material amount.  In addition, we sometimes experience double booking by customers, and our customers often reduce, cancel or delay their purchases of packaging and test services for a variety of reasons, including industry-wide, customer-specific and Amkor-specific reasons.  This makes it difficult for us to forecast our capacity utilization and net sales in future periods.  Since a large portion of our costs is fixed and our expense levels are based in part on our expectations of future sales, we may not be able to adjust costs in a timely manner to compensate for any sales shortfall.  If we are unable to adjust costs in a timely manner, our margins, operating results, financial condition and cash flows could be materially and adversely affected.

Historically, there has been downward pressure on the prices of our packaging and test services.

Prices for packaging and test services have generally declined over time, and sometimes prices can change significantly in relatively short periods of time.  We expect downward pressure on average selling prices for our packaging and test services to continue in the future, and this pressure may intensify during downturns in business.  If we experience declining average selling prices and are unable to offset such declines by developing and marketing new packages with higher prices, reducing our purchasing costs, recovering more of our material cost increases from our customers and reducing our manufacturing costs, our business, liquidity, results of operations, financial condition and cash flows could be materially and adversely affected.

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. 

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