Amkor Technology and the Semiconductor Cycle: What Investors Should Watch Next

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On October 30, 2025, UG Investment Advisers Ltd. disclosed in an SEC filing that it sold 932,216 shares of Amkor Technology (NASDAQ:AMKR), an estimated $22.44 million trade based on average pricing for the third quarter.

The fund sold 932,216 shares of Amkor Technology; estimated transaction value of approximately $22.44 million

This change represents 3.5% of reportable AUM. The post-trade stake is 177,265 shares valued at $5.03 million.

The position now accounts for 0.79% of AUM, placing it outside the fund’s top five holdings.

What happened

According to a filing with the U.S. Securities and Exchange Commission dated October 30, 2025, UG Investment Advisers Ltd. reduced its holdings in Amkor Technology by 932,216 shares during the quarter. The estimated transaction value was $22.44 million, based on the average closing price for the period. The fund now holds 177,265 shares, with a reported value of $5.03 million.

What else to know

This was a sell transaction, with Amkor Technology now representing 0.79% of UG Investment Advisers Ltd.’s 13F reportable assets under management.

Top holdings after the filing:

• BABA: $278.22 million (47.7% of AUM)
• QCOM: $147.84 million (25.4% of AUM)
• MU: $93.57 million (16.05% of AUM)
• BEKE: $24.49 million (4.2% of AUM)
• VCSH: $13.72 million (2.35% of AUM)

As of October 30, 2025, shares of Amkor Technology were priced at $31.92, up 19.4% over the year ended October 30, 2025, outperforming the S&P 500 by 0.65 percentage points over the same period.

Company overview

Company snapshot

Amkor Technology is a leading provider of outsourced semiconductor packaging and test services, operating at scale with a global footprint and a diverse customer base. The company leverages advanced packaging technologies and integrated solutions to address the needs of electronics manufacturers in high-growth markets. Amkor Technology's competitive advantage is its comprehensive service offerings.

Amkor Technology provides outsourced semiconductor packaging and test services, including wafer bump, probe, back-grind, package design, and advanced system-in-package modules for a range of electronic devices.

The company operates as a turnkey service provider, generating revenue primarily through packaging and testing solutions for integrated device manufacturers and fabless semiconductor companies.

Amkor Technology serves integrated device manufacturers, fabless semiconductor companies, original equipment manufacturers, and contract foundries across the United States, Asia, Europe, and other global markets.

Foolish take

In a year defined by recovery and rotation across the semiconductor landscape, Amkor Technology has captured both sides of the cycle. UG Investment Advisers trimmed its stake in Amkor Technology in the third quarter, selling about 930,000 shares valued at $22 million. This appears more so a disciplined portfolio rebalancing move, the kind of action investors take when a position has served its purpose and the risk-reward balance starts to even out.

Amkor specializes in packaging and testing chips for major manufacturers, including Qualcomm and Micron, and is a key player in the semiconductor supply chain. Its expertise in advanced system-in-package technology gives it an edge in high-growth areas such as AI hardware and automotive electronics.

However, it's also a cyclical business where profits tend to swell when chip demand accelerates and contract when production slows. The company's performance is largely dependent on the broader production cycle, which reflects how capital spending and design innovation ripple downstream through suppliers.

Amkor's story is closely tied to the global need for processing power. As more computing shifts to the edge and new devices demand more efficiency, packaging specialists like Amkor are well-positioned to capture steady growth. Its role at the intersection of innovation and execution gives it leverage across every wave of chip development—a quality that helps it endure beyond any single market cycle.

Glossary

AUM (Assets Under Management): The total market value of investments managed by a fund or investment adviser.

13F reportable assets: Securities that institutional investment managers must disclose in quarterly SEC filings if they exceed certain thresholds.

Turnkey service provider: A company offering end-to-end solutions, handling all aspects of a process for clients.

Fabless semiconductor companies: Firms that design chips but outsource manufacturing to third-party foundries.

Integrated device manufacturers (IDMs): Companies that both design and manufacture semiconductor chips in-house.

System-in-package (SiP): An advanced packaging technology that combines multiple integrated circuits and components into a single module.

Wafer bump: A process in semiconductor manufacturing where small solder bumps are placed on a chip for electrical connections.

Back-grind: The thinning of semiconductor wafers to reduce package size and improve performance.

Probe: Testing individual semiconductor chips on a wafer before packaging to ensure functionality.

Outsourced semiconductor packaging and test services: Third-party services that assemble and test semiconductor devices for chip designers and manufacturers.

Dividend yield: A financial ratio showing how much a company pays in dividends each year relative to its share price.

TTM: The 12-month period ending with the most recent quarterly report.

Eric Trie has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Qualcomm. The Motley Fool recommends Alibaba Group. The Motley Fool has a disclosure policy.