Amkor Technology Closes Offering of Senior Notes due 2033: A Provider of Outsourced Semiconductor Packaging and Test Services

Amkor Technology, a provider of outsourced semiconductor packaging and test services, has closed an offering of senior notes due 2033. The company is engaged in the outsourcing of semiconductor packaging and test services and offers a range of services to IDMs, fabless semiconductor companies, OEMs, and contract foundries. The notes have a variable interest rate that is reset quarterly based on a benchmark rate. The offering was made through a private placement and is subject to market conditions.

Amkor Technology, Inc. (Nasdaq: AMKR), a leading provider of outsourced semiconductor packaging and test services, has successfully closed its offering of $500 million in senior notes due 2033. The offering was conducted through a private placement and is subject to market conditions. The notes, which carry a variable interest rate reset quarterly based on a benchmark rate, are part of the company's ongoing efforts to secure financing for its operations and growth initiatives.

In addition to the 2033 notes, Amkor has announced plans to redeem all $400 million of its outstanding 6.625% senior notes due 2027. The redemption, set to be effective on October 9, 2025, will be at 100% of the principal amount, or $1,000 per $1,000 principal amount thereof, paid in cash. The company will also pay accrued and unpaid interest on the 2027 notes to, but excluding, the redemption date.

The proceeds from the 2033 notes offering will be used to fund the redemption of the 2027 notes, pay related fees and expenses, and for general corporate purposes. Pending the use of the proceeds of the 2033 notes offering, Amkor intends to invest the proceeds in cash, cash equivalents, investment grade securities, or other short-term marketable securities.

The company's strong track record of innovation and its broad geographic footprint, which includes Asia, Europe, and the US, make it a key player in the outsourced semiconductor assembly and test (OSAT) industry. Amkor's services are essential for the production of advanced technologies in various sectors, including smartphones, data centers, artificial intelligence, automobiles, and wearables.

Amkor's recent financial performance has shown signs of recovery, with the company beating earnings expectations for both Q1 and Q2 2025. The company's guidance for the back half of 2025 has helped the share price recover some lost ground, despite weaker demand for consumer electronics and squeezed margins due to pricier substrates and labor.

The company's growth prospects are driven by faster adoption of advanced packaging for AI and high-performance computing, new top-tier smartphone launches, expanding business in automotive and industrial electronics, and extra capacity stateside thanks to CHIPS Act funding. Amkor's strategic investments and partnerships, such as its integration with Nanium to boost its 3D IC offering, further position it as a leader in the outsourced packaging market.