v3.26.1
Debt
 6 Months Ended
Jun. 30, 2026
Debt Disclosure [Abstract]  
Debt Debt
Short-term borrowings and long-term debt consist of the following:
June 30, 2026December 31, 2025
 (In thousands)
Debt of Amkor Technology, Inc.:   
Senior notes:
5.875% Senior notes, due October 2033
$500,000 $500,000 
0.00% Convertible senior notes, due July 2031 (1)
1,150,000 — 
Other:
2025 Revolving Credit Facility, applicable bank rate plus 1.75%, due May 2030 (2)
— — 
Term A Loans, applicable bank rate plus 1.75%, 5.48% as of June 30, 2026, due May 2030
493,750 500,000 
Debt of subsidiaries:   
Amkor Technology Korea, Inc.:
Term loan, fixed rate at 3.95%, due May 2027 (3)
— — 
Term loan, fixed rate at 2.12%, due December 2028
125,000 150,000 
Amkor Technology Japan, Inc.:
Short-term term loans, variable rate (4)— — 
Term loan, fixed rate at 1.23%, due December 2026
8,059 16,719 
Term loan, fixed rate at 1.59%, due December 2027
28,976 40,074 
Term loan, fixed rate at 1.80%, due December 2028
53,830 67,003 
Term loan, fixed rate at 2.05%, due December 2029
73,639 87,295 
Term loan, fixed rate at 2.42%, due December 2030
82,497 95,080 
2,515,751 1,456,171 
Less: Unamortized discount and deferred debt costs, net(30,020)(10,925)
Less: Short-term borrowings and current portion of long-term debt(150,781)(162,430)
Long-term debt$2,334,950 $1,282,816 
(1)In May 2026, we issued the 2031 Notes, which included the exercise in full of the option granted to the initial purchasers to purchase up to an additional $150 million aggregate principal amount of the 2031 Notes. The 2031 Notes are senior, unsecured obligations guaranteed by our wholly-owned subsidiary Guardian Assets, Inc. (“Guardian”). The 2031 Notes will mature on July 15, 2031, unless earlier repurchased, redeemed or converted. We incurred $21.0 million of debt issuance costs associated with the 2031 Notes. As of June 30, 2026, the effective interest rate for the 2031 Notes was 0.03%, primarily reflecting the accretion of debt issuance costs. The net proceeds from the offering of the 2031 Notes were used to fund the cost of entering into privately negotiated capped call transactions (the “Capped Calls”) and for general corporate purposes, including capital expenditures.
Holders may convert their notes at their option under the following conditions: (1) during any calendar quarter commencing after the calendar quarter ending on June 30, 2026 and only during such fiscal quarter, if the last reported sale price of our common stock for at least 20 trading days (whether or not consecutive) during a period of 30 consecutive trading days ending on, and including, the last trading day of the immediately preceding calendar quarter exceeds (x) before July 15, 2030, 150% and (y) on or after July 15, 2030, 130%, in each case, of the conversion price on each applicable trading day; (2) during the five consecutive business days immediately after any ten consecutive trading day period in which the trading price per $1,000 principal amount of notes for each trading day of such five consecutive trading day period was less than 98% of the product of the last reported sale price of our common stock and the conversion rate on each such trading day; (3) if we call any notes for redemption; or (4) upon the occurrence of specified corporate events. On or after April 15, 2031, until the close of business on the second scheduled trading day immediately preceding the maturity date, holders of the 2031 Notes may convert all or any portion of their notes at any time, in integral multiples of $1,000 principal amount, at the option of the holder regardless of the foregoing conditions. Upon conversion, we will settle conversions of the 2031 Notes by paying cash up to the aggregate principal amount of the 2031 Notes and pay or deliver, as applicable, cash or shares of our common stock, based on the applicable conversion rate(s).
As of June 30, 2026, none of the conditions permitting the holders of the 2031 Notes to convert their notes early had been met. Therefore, the 2031 Notes are classified as long-term debt.
We may not redeem the 2031 Notes prior to May 15, 2029. On or after May 15, 2029, we may redeem all or a portion of the 2031 Notes for cash at our option if certain stock price and other conditions are satisfied, at a redemption price equal to 100% of the principal amount to be redeemed, plus accrued and unpaid interest to, but excluding, the redemption date. If we redeem less than all of the outstanding 2031 Notes, at least $150 million aggregate principal amount of notes must be outstanding and not subject to redemption as of, and after giving effect to, delivery of the relevant notice of redemption. No sinking fund is provided for the 2031 Notes.
The initial conversion rate for the 2031 Notes is 9.4013 shares of common stock per $1,000 principal amount of the 2031 Notes, which represents an initial conversion price of approximately $106.37 per share of our common stock. The conversion rate and conversion price are subject to customary adjustments upon the occurrence of certain events. In addition, holders who convert their 2031 Notes in connection with a “make-whole fundamental change” (as defined in the indenture for the 2031 Notes) or a notice of redemption may be entitled to an increase in the conversion rate.
If a “fundamental change” (as defined in the indenture for the 2031 Notes) occurs, then, subject to certain conditions, noteholders may require us to repurchase their 2031 Notes for cash at a price equal to the principal amount of the 2031 Notes to be repurchased, plus accrued and unpaid interest, if any, to, but excluding, the applicable repurchase date.
The 2031 Notes include customary covenants and certain events of default after which the 2031 Notes may be declared immediately due and payable and set forth certain types of bankruptcy or insolvency events of default after which the notes become automatically due and payable.
In connection with the issuance of the 2031 Notes, we entered into the Capped Calls with certain financial institutions at an aggregate cost of approximately $56.4 million. The Capped Calls initially cover, subject to anti-dilution adjustments, approximately 10.8 million shares of common stock underlying the 2031 Notes. The
Capped Calls can be settled in cash or shares at our option and are expected generally to reduce the potential dilution to common stock upon any conversion of the 2031 Notes and/or offset any cash payments we are required to make in excess of the principal amount of the 2031 Notes. The Capped Calls have an initial strike price of approximately $106.37 per share and an initial cap price of $139.50 per share, which are subject to certain adjustments under the terms of the Capped Calls. The Capped Calls meet the criteria for classification in equity, are not remeasured each reporting period and are included, net of tax, as a reduction to additional paid-in-capital within shareholders’ equity in the Consolidated Balance Sheets.
(2)In May 2025, we entered into a $1.0 billion senior secured revolving credit facility (the “2025 Revolving Credit Facility”) guaranteed by Amkor Technology Singapore Holding Pte. Ltd. (“ATSH”) and Guardian. The maximum borrowing capacity under the 2025 Revolving Credit Facility is $1.0 billion. The 2025 Revolving Credit Facility includes an uncommitted optional accordion of up to $200.0 million, which may be incurred in the form of revolving commitment increases or term loans. As of June 30, 2026, $1.0 billion was available for future borrowings under the 2025 Revolving Credit Facility.
(3)In May 2024, we entered into a ₩80.0 billion (approximately $59 million) term loan agreement with the option to borrow and re-borrow the funds up to six times per year through May 2027. Principal is payable at maturity, and interest is payable monthly at a fixed rate of 3.95%. As of June 30, 2026, ₩80.0 billion, or approximately $52 million, was available to be drawn.
(4)We entered into various short-term term loans which mature semiannually. Principal and interest are payable in monthly installments. As of June 30, 2026, $3.1 million was available to be drawn.
Certain of our debt is collateralized by the land, buildings, equipment and capital stock of subsidiaries. As of June 30, 2026, the collateralized debt balance was $865.8 million, of which $611.9 million of assets and subsidiary capital stock were pledged as collateral.
The debt of Amkor Technology, Inc. is structurally subordinated in right of payment to all existing and future debt and other liabilities of our subsidiaries. From time to time, Amkor Technology, Inc., ATSH and Guardian guarantee certain indebtedness. The agreements governing our indebtedness contain affirmative and negative covenants, including, among others, covenants to maintain a minimum interest coverage ratio and a maximum consolidated leverage ratio, which restrict our ability to pay dividends and could restrict our operations. These restrictions do not currently have a material impact on our ability to make dividend payments or stock repurchases.
We were in compliance with all debt covenants at June 30, 2026.