Amkor Technology has projected second-quarter earnings per diluted share to fall within the range of $0.42 to $0.52. This outlook comes as the company prepares for a significant expansion in Arizona.
Arizona Facility to Impact Margins
The semiconductor packaging and test services provider indicated that the upcoming ramp-up of its new facility in Arizona is expected to exert downward pressure on its operating margins. Starting in 2027, Amkor anticipates this expansion will lead to a dilution of operating margins by approximately 1% to 2%.
Strong First Quarter Performance
The guidance follows a robust first quarter for Amkor, which reported record revenue of $1.68 billion, marking a 27% increase year-on-year. CEO Kevin Engel highlighted the strong start to the year during the company’s earnings call, noting that earnings per diluted share for the first quarter were $0.33. The company’s performance reflects ongoing preparations for advanced manufacturing capabilities.
Investors will be closely monitoring Amkor’s progress as it navigates the substantial investment in its Arizona operations and its potential impact on profitability in the coming years.
