Amkor Technology, Inc.

Amkor Technology delivered excellent results in the last quarter and managed an all-around beat as its end markets showed a very strong demand. Amkor saw a successful recovery and growth of its Shanghai factory. Whereas market forecasts are weakened in some areas and the industry has been facing near-term macroeconomic headwinds, demand for the company’s advanced packaging technology stays strong, and the momentum strengthened in this quarter. The company’s communications business experienced significant growth in the quarter, mainly driven by the high-volume ramps that support the launch of the 5G premier-tier smartphones. Revenue from computing end markets increased, and the test business of the company grew. Amkor is continuing to execute the strategy to control its leadership position in its broad geographical footprint and advanced packing for capitalizing on the megatrends of the industry of high-performance and automotive computing, IoT, and 5G. We provide the stock of Amkor with an ‘Underperform’ rating with a revision in the target price.