Amkor Announces 50% Increase in Quarterly Cash Dividend and Shareholder Return Goal

Rhea-AI Summary

Amkor Technology, Inc. (NASDAQ: AMKR) has announced a 50% increase in its quarterly cash dividend, raising it from $0.05 to $0.075 per share, effective December 27, 2022, for shareholders of record as of December 6, 2022. The company plans to return 40% to 50% of cumulative free cash flow generated from 2022 onward, contingent on various factors including strategic investments and Board approval. This move reflects Amkor's confidence in its long-term financial stability while allowing for ongoing business investments.

Positive

• 50% increase in quarterly cash dividend from $0.05 to $0.075 per share.
• Commitment to return 40% to 50% of cumulative free cash flow to shareholders.

Negative

• None.

TEMPE, Ariz.--(BUSINESS WIRE)-- Amkor Technology, Inc. (Nasdaq: AMKR), a leading provider of semiconductor packaging and test services, today announced that its Board of Directors has approved a 50% increase in the company’s quarterly cash dividend, from $0.05 per share to $0.075 per share, on the company’s common stock. This increase will be effective with the dividend payment to be distributed on December 27, 2022 to shareholders of record on December 6, 2022.

Additionally, the company announced its intention to return 40 percent to 50 percent of cumulative free cash flow generated over time, beginning 2022, subject to a variety of factors, including strategic investments, other capital allocation priorities and Board of Directors’ approval. The company defines free cash flow as net cash provided by operating activities less purchases of property, plant and equipment. The company’s capital allocation priorities remain investing in the business, maintaining a strong balance sheet, strategic investments, and shareholder returns.

“We are very pleased to announce our shareholder return goal, reflecting confidence in our long-term business outlook and strong financial position. This target allows the company to continue investing for long-term growth while also returning capital to shareholders,” said Giel Rutten, Amkor’s president and chief executive officer.

About Amkor Technology, Inc.

Amkor Technology, Inc. is one of the world’s largest providers of outsourced semiconductor packaging and test services. Founded in 1968, Amkor pioneered the outsourcing of IC packaging and test and is now a strategic manufacturing partner for the world’s leading semiconductor companies, foundries and electronics OEMs. Amkor’s operational base includes production facilities, product development centers, and sales and support offices located in key electronics manufacturing regions in Asia, Europe and the USA. For more information visit amkor.com.

Forward-Looking Statement Disclaimer

This press release contains forward-looking statements within the meaning of the federal securities laws. You are cautioned not to place undue reliance on forward-looking statements. All forward-looking statements in this press release are made based on our current expectations, forecasts, estimates and assumptions. Because such statements include risks and uncertainties, actual results may differ materially from those anticipated in such forward-looking statements. Risk factors that could affect the outcome of the events set forth in these statements are discussed in the company’s reports filed with or furnished to the Securities and Exchange Commission. All forward-looking statements attributable to us or persons acting on our behalf are expressly qualified in their entirety by this cautionary statement. We assume no obligation to review or update any forward-looking statements to reflect events or circumstances occurring after the date of this press release except as may be required by applicable law.

View source version on businesswire.com: https://www.businesswire.com/news/home/20221115006280/en/

Jennifer Jue

Senior Director, Investor Relations and Finance

480-786-7594

jennifer.jue@amkor.com

Source: Amkor Technology, Inc.

FAQ

When will Amkor Technology's dividend increase take effect?

The dividend increase will take effect on December 27, 2022.

What is the new dividend amount for Amkor Technology?

The new dividend amount is $0.075 per share.

What percentage of free cash flow does Amkor Technology plan to return to shareholders?

Amkor plans to return 40% to 50% of cumulative free cash flow.

When is the record date for Amkor Technology's dividend?

The record date for the dividend is December 6, 2022.