TEMPE, Ariz. - Amkor (NASDAQ:AMKR) Technology, Inc. (NASDAQ:AMKR), a prominent provider of semiconductor packaging and test services, today announced a forthcoming change in its leadership. Susan Y. Kim will take over as Chairman of the Board following the retirement of the current Executive Chairman, James Kim, on October 31, 2024.
James Kim, who founded Amkor in 1968, has been instrumental in shaping the outsourced semiconductor assembly and test services industry for over five decades. To honor his significant contributions, he will be bestowed with the title of Chairman Emeritus upon his retirement.
The transition comes at a time when Amkor is positioned for growth, leveraging its strong technology leadership in advanced packaging and a diversified global footprint. The company's president and chief executive officer, Giel Rutten, expressed gratitude for James Kim's visionary leadership and welcomed Susan Kim to her new role, emphasizing the continued support from the Kim family.
Amkor Technology , Inc. is recognized as the largest US-headquartered OSAT service provider and has been a strategic manufacturing partner for leading semiconductor companies, foundries, and electronics OEMs across various industries including communication, automotive, computing, and consumer electronics.
This leadership change is part of a strategic move by Amkor to maintain its global leadership in advanced packaging technologies. The company's commitment to innovation and quality has been a cornerstone of its success, and with Susan Y. Kim as the new Chairman, Amkor aims to continue on this path.
The information regarding the leadership change is based on a press release statement from Amkor Technology, Inc.
In other recent news, Amkor Technology has reported a robust second-quarter performance, with revenues amounting to $1.46 billion and earnings per share at $0.27. This marks a 7% sequential increase in revenue, primarily fueled by demand for advanced packaging used in premium smartphones and AI solutions. However, the company's third-quarter guidance fell slightly below analyst expectations, primarily due to a delay in its 2.5D technology ramp-up and less robust recovery in the automotive and industrial sectors than initially anticipated.
Needham has responded to these developments by raising its price target for Amkor Technology to $45 from the previous target of $40, while maintaining a Buy rating on the stock. Despite the challenges, Amkor Technology remains optimistic about its full-year revenue from 2.5D technology, projecting it to quadruple year-over-year, and plans to expand its 2.5D capacity in 2025.
The production of high-end smartphones, laptops, and wearable devices is expected to increase significantly in the second half of 2024. Looking ahead, Amkor anticipates a third-quarter revenue of $1.835 billion, influenced by new product launches and strong demand in various segments. Despite flat expectations for the automotive and industrial markets, there is strong demand projected for high-performance computing and ARM-based PCs.
InvestingPro Insights
As Amkor Technology, Inc. (NASDAQ:AMKR) prepares for a significant leadership transition, the company's financial health and market position remain pivotal for investors. According to InvestingPro data, Amkor boasts a market capitalization of $7.45 billion, underscoring its substantial presence in the semiconductor industry. The company's Price-to-Earnings (P/E) ratio stands at 19.99, reflecting investor expectations of its earnings capacity. Notably, the company has experienced a revenue growth of 0.24% in the last quarter, indicating steady performance amidst challenging market conditions.
InvestingPro Tips highlight that Amkor has increased its dividend for four consecutive years, showcasing a commitment to returning value to shareholders. This is complemented by the company's strong liquidity position, where liquid assets surpass short-term obligations, providing financial flexibility and stability. Investors should note that while analysts have revised their earnings expectations downwards for the upcoming period, Amkor remains a prominent player in the Semiconductors & Semiconductor Equipment industry. With the company's profitability over the last twelve months and a strong return over the last five years, Amkor's strategic focus on advanced packaging technologies is poised to capitalize on industry growth trends.
For those looking for a deeper dive into Amkor's financials and strategic positioning, InvestingPro offers additional tips and insights. Currently, there are 10 more InvestingPro Tips available on https://www.investing.com/pro/AMKR, which can provide investors with a more comprehensive understanding of the company's performance and potential.
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