AMKR 10-Q filed 2026-10-27 | Key takeaways
AMKR filed its 10-Q; the most relevant disclosure change is expanded Contract liabilities: Contract liabilities were $547.6 million as of September 30, 2026 compared to $390.8 million as of December 31, 2025, with short-term portions of $127.5 million and $69.6 million, respectively. The company expects to recognize $406.3 million over the next 1-5. Customer concentration: Ten largest customers (unnamed) represented 72% of net_sales.
Forward guidance
Key takeaways
Computing end market grew 37% year-over-year and automotive and industrial grew 37%, while communications declined 28% due to timing of SiP program transfers from Korea to Vietnam
Customer concentration: ten largest customers accounted for 72% of net sales for the year ended December 31, 2025
Capital expenditures for nine months ended September 30, 2026 totaled $1.24 billion, focused on advanced packaging equipment and Arizona Facility construction
Purchase obligations increased to $2.69 billion as of September 30, 2026, with $2.64 billion payable within 12 months
Finance lease liabilities increased to $117.7 million as of September 30, 2026 from $105.0 million at December 31, 2025
Company entered Foreign Direct Investment Cash Support Agreement in Korea in July 2026 providing potential cash grants of up to approximately $110 million
Contract liabilities increased to $547.6 million as of September 30, 2026 from $390.8 million at December 31, 2025, driven by customer advance payments
Key metrics
Customer concentration
Disclosure changes
- Contract liabilities
Contract liabilities were $547.6 million as of September 30, 2026 compared to $390.8 million as of December 31, 2025, with short-term portions of $127.5 million and $69.6 million, respectively. The company expects to recognize $406.3 million over the next 1-5 years and $13.9 million over the next 5-10 years. Revenue recognized during the nine months ended September 30, 2026 that was included in the contract liabilities balance at the beginning of the period was $46.3 million.
The significant increase in contract liabilities reflects approximately $1.9 billion of expected customer advance payments in the next 12 months, indicating strong customer demand and prepayment commitments. - Government grants
In July 2026, certain subsidiaries entered into a Foreign Direct Investment Cash Support Agreement with Korean governmental authorities providing potential cash grants of up to approximately ₩150 billion (approximately $110 million), subject to achievement of specified investment, employment and performance conditions. Approximately $11 million has been received as of September 30, 2026.
This represents significant non-dilutive government support for the company's Korean operations, with $11 million already received and included in restricted cash and other non-current liabilities. - Finance lease liabilities
Total long-term finance lease liabilities as of September 30, 2026 were $117.7 million compared to $105.0 million as of December 31, 2025.
Finance lease obligations have increased significantly during 2026, reflecting expanded lease commitments for equipment and facilities. - Investment tax credits and grants receivable
Investment tax credits recorded in other assets increased to $129.9 million as of September 30, 2026 from $81.1 million as of June 30, 2026 and $0 as of December 31, 2025. Grants receivable recorded in other assets increased to $61.7 million from $46.9 million as of June 30, 2026.
The increase in investment tax credits and grants receivable reflects timing of qualified capital expenditures and government grant recognition, particularly related to U.S. semiconductor manufacturing investments under CHIPS Act. - End market mix
Computing increased to 26% of net sales in Q3 2026 from 19% in Q3 2025; Communications decreased to 37% from 51%; Automotive, industrial and other increased to 22% from 16%.
The shift in end market mix reflects growth in AI/data center and automotive applications, partially offset by communications weakness due to SiP program transfers. - Purchase obligations
Purchase obligations were $2.69 billion as of September 30, 2026, with $2.64 billion payable within 12 months, compared to $1.47 billion with $1.40 billion payable within 12 months as of June 30, 2026.
The significant increase in purchase obligations reflects commitments for Arizona Facility construction and advanced packaging equipment.
Primary source
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