AMKOR Technology (AMKR)

Risks

• Company-Specific Risk Factors
• Our packaging and test services are used in volatile industries and industry downturns, and declines in global economic and financial conditions could harm our performance.
• Our business may suffer if the cost, quality or supply of materials or equipment changes adversely.
• Our operating results and cash flows have varied and may vary significantly as a result of factors that we cannot control.
• We depend on our factories and operations in various foreign jurisdictions and many of our customers’ and vendors’ operations are also located outside of the U.S.
• We compete against established competitors in the packaging and test business as well as internal capabilities of IDMs and face competition from new competitors, including foundries.
• We make substantial investments in equipment and facilities to support the demand of our customers, which may materially and adversely affect our business if the demand of our customers does not develop as we expect or is adversely affected.
• Due to our high percentage of fixed costs, we may be unable to maintain satisfactory gross margins if we are unable to achieve relatively high-capacity utilization rates.
• The lack of contractually committed customer demand may materially and adversely affect our sales.
• Historically, there has been downward pressure on the prices of our packaging and test services.
• 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.
• Our business will suffer if we are not able to develop new proprietary technology, protect our proprietary technology and operate without infringing the proprietary rights of others.
• Covenants in the indentures and agreements governing our current and future indebtedness could restrict our operating flexibility.
• We may decrease or suspend our quarterly dividend, and any decrease in or suspension of the dividend could cause our stock price to decline.
• We have significant severance plan obligations associated with our manufacturing operations in Korea which could reduce our cash flow and negatively impact our financial condition.
• James J. Kim and members of his family can effectively determine or substantially influence the outcome of all matters requiring stockholder approval.
• The Covid-19 pandemic has impacted, and may continue to impact, the supply chain and consumer demand for our customers’ products and services, and the continued impact on the supply chain and consumer demand may ultimately have a material and adverse effect on our business, results of operations, and financial condition.
• Our substantial indebtedness could have a material adverse effect on our financial condition and prevent us from fulfilling our obligations.
• We are exposed to fluctuations in interest rates and changes in credit risk, which could have a material adverse impact on our earnings as it relates to the market value of our investment portfolio.
• We may have difficulty funding liquidity needs.
• The loss of certain customers or reduced orders or pricing from existing customers may have a material adverse effect on our operations and financial results.
• We face risks trying to attract, retain or replace qualified employees to support our operations.
• If we fail to maintain an effective system of internal controls, we may not be able to accurately report financial results or prevent fraud.
• We face risks in connection with the continuing development and implementation of changes to, and maintenance and security of, our information technology systems.
• We face challenges as we integrate diverse operations.
• We could suffer adverse tax and other financial consequences if there are changes in tax laws or taxing authorities do not agree with our interpretation of applicable tax laws, including whether we continue to qualify for tax holidays, or if we are required to establish or adjust valuation allowances on deferred tax assets.
• Environmental, health and safety liabilities and expenditures could have a material adverse effect on our business, results of operation and financial condition.
• Our business and financial condition has been adversely affected, and could be adversely affected in the future, by natural disasters and other calamities, health conditions or pandemics, political instability, hostilities or other disruptions.