Stacking in packaging such as CoWoS, SoIC, and HBM is enabling faster chip performance by increasing the bandwidth of chip interconnections and is a key enabler of AI chips. It is also being extended to frontend processes to drive upcoming node migrations. Such technologies could create big opportunities for packaging equipment and material companies. This Blackbook discusses technologies, competition, and major beneficiaries for this multi-year trend. See Disclosure Appendix of this report for important di ...

Core Viewpoint - GlobalFoundries is positioned as a leader in the silicon photonics and advanced packaging sectors, emphasizing the importance of their differentiated platforms and high-performance interconnect technologies for next-generation data and connectivity applications [3]. Group 1: Business Update - The webinar aims to provide a comprehensive update on the business, technical aspects, and strategic direction of GlobalFoundries in the context of silicon photonics and advanced packaging [3]. - The company is focused on addressing the increasing demands for speed, efficiency, and scalability in data and connectivity applications [3]. Group 2: Leadership and Presentation - The call features key executives including the Chief Business Officer, Chief Technology Officer, and Senior Vice President of the Silicon Photonics business, highlighting the leadership team's involvement in the discussion [4]. - A slide presentation and a recording of the call will be made available on the Investor Relations webpage, ensuring transparency and accessibility of information for stakeholders [4].

Summary of GlobalFoundries Investor Webinar Company Overview - **Company**: GlobalFoundries (NasdaqGS: GFS) - **Industry**: Silicon Photonics and Advanced Packaging Key Points and Arguments Industry Positioning - GlobalFoundries is positioned at the forefront of the silicon photonics and advanced packaging revolution, addressing the increasing demand for speed, efficiency, and scalability in data and connectivity applications [2][9] - The company emphasizes the shift from traditional north-south traffic to east-west traffic in AI data centers, highlighting the need for optical interconnects [5][8] Technology Leadership - GlobalFoundries has over a decade of experience in silicon photonics, offering a comprehensive device portfolio including modulators and broadband couplers [9] - The company is recognized for its technology leadership, deep design support, and global manufacturing scale, which enables rapid market entry for customers [10] Market Growth and Projections - By 2030, GlobalFoundries anticipates its serviceable addressable market (SAM) in communications, infrastructure, and data centers to exceed $11 billion, more than doubling from current levels [23] - Revenue from silicon photonics is projected to double in 2025 and again in 2026, with a clear path to a $1 billion+ run rate by the end of 2028 [24] Competitive Landscape - GlobalFoundries claims to be the largest player in the silicon photonics market, with significant investments exceeding $1 billion over the past decade [30][47] - The company is focused on maintaining its market share as the industry transitions to co-packaged optics (CPO) and anticipates strong growth in this area [48] Advanced Packaging Capabilities - The company is developing advanced packaging solutions that integrate electronic and photonic components, which are critical for scaling CPO solutions [16][17] - GlobalFoundries is investing in a new facility in Malta, New York, to enhance its manufacturing capabilities for silicon photonics and advanced packaging [17] Customer Engagement and Ecosystem - GlobalFoundries has established strong partnerships with key players in the ecosystem, including EDA providers and fiber attach partners, which enhances its design support capabilities [32] - Customers have expressed confidence in GlobalFoundries as a trusted development partner, highlighting the robustness of its silicon photonics platform [12] Acquisitions and Strategic Moves - Recent acquisitions, such as AMF and InfiniLink, are expected to accelerate GlobalFoundries' technology roadmap and revenue growth, enhancing its manufacturing scale and design capabilities [13][14] Future Innovations - The company is focused on innovating across multiple dimensions in optical networking, including bit rate per lane and overall system radix, to meet the demands of AI and advanced computing [15] - GlobalFoundries is exploring new applications in optical circuit switching and quantum interconnects, positioning itself for long-term growth [15] Additional Important Content - The transition to optical interconnects is seen as essential for the future of AI data centers, with GlobalFoundries emphasizing the importance of interconnect efficiency [6][8] - The company is committed to an open ecosystem, allowing for compatibility with various technologies and partners, which is crucial for customer satisfaction [43] This summary encapsulates the key insights and strategic directions discussed during the GlobalFoundries investor webinar, highlighting the company's leadership in silicon photonics and its proactive approach to market demands and technological advancements.

Core Insights - iMGP Small Company Fund underperformed in Q4 2025 with a return of 1.33%, compared to the Russell 2000 Index's 2.19% return, and had flat returns of 0.01% for the entire year against the Index's 12.81% [1] - The Fund's poor performance in Q4 was attributed to the strong performance of biotech stocks, which rose over 25%, a sector the Fund typically avoids due to its binary nature [1] - The Fund aims to refine its investment process and focus on high-quality, growing firms moving into 2026 [1] Company Focus: Amkor Technology, Inc. - Amkor Technology, Inc. (NASDAQ:AMKR) was highlighted as a top performer in the Fund's Q4 2025 letter, benefiting from excitement around AI and advanced packaging due to significant demand for AI compute [3] - As of March 09, 2026, Amkor's stock closed at $43.22, with a one-month return of -19.15% but a substantial 124.75% gain over the past 52 weeks, and a market capitalization of $10.689 billion [2] - Despite its potential, Amkor is not among the 40 most popular stocks among hedge funds heading into 2026, with 48 hedge fund portfolios holding the stock at the end of Q4, up from 35 in the previous quarter [4]

Summary of ASMPT (0522.HK) Conference Call Company Overview - **Company**: ASMPT (0522.HK) - **Market Cap**: HK$46,415 million (US$5,936 million) [2] Industry Insights - **Industry**: Semiconductor Packaging - **Key Development**: Discussions within JEDEC regarding the potential relaxation of the height limit for next-gen 20H HBM (High Bandwidth Memory) from 775µm to a range of 825-900µm [1][3] - **Impact of Height Increase**: - A height increase would favor TCB (Thermo-Compression Bonder) usage over HB (Hybrid Bonder), extending TCB's market presence due to its lower cost and established technology [1] - Current TCB technology supports HBM production up to 16H at the 775µm standard, while HB becomes necessary at 20H [1] Financial Outlook - **Target Price**: HK$145.00, representing a potential upside of 30.5% from the current price of HK$111.10 [2][12] - **Expected Total Return**: 32.4%, including a dividend yield of 1.9% [2] - **Valuation Justification**: Anticipated revenue and earnings recovery driven by: 1. AI-driven advanced packaging order wins, particularly in TCB for 2026 [12] 2. Recovery in mainstream SEMI (Semiconductor Equipment and Materials International) and SMT (Surface Mount Technology) markets [12] Risks - **Downside Risks**: 1. Slowdown in AI infrastructure investment [13] 2. Loss of TCB market share among key customers [13] 3. Reduced demand for TCB due to alternative technologies like hybrid bonding [13] 4. Increased competition within the industry [13] 5. Potential export restrictions affecting back-end equipment [13] Competitive Landscape - **Competitor Mentioned**: BE Semiconductor Industries (BESI.AS) - BESI is viewed as a competitor in the hybrid bonding space, with its own set of risks including technological pace, competitive intensity, and customer adoption rates [14][15][16][17][18][19] Conclusion - ASMPT is positioned to benefit from potential changes in HBM packaging standards, which could enhance its market share and financial performance. The company is recommended as a "Buy" based on its improving outlook and strategic focus on advanced packaging solutions [1][12]. However, investors should remain cautious of the outlined risks that could impact future performance.

Amkor Technology Conference Call Summary Company Overview - **Company**: Amkor Technology (NasdaqGS: AMKR) - **Date**: March 03, 2026 - **Key Speakers**: Kevin Engel (CEO), Megan Faust (CFO) Core Industry Insights Strategic Pillars - **Technology Leadership**: Focus on advanced packaging, crucial for AI and communications markets [6][7] - **Global Footprint Expansion**: Unique position as the only OSAT offering advanced packaging outside Taiwan and China, with facilities in Korea and the U.S. [7] - **Customer Partnerships**: Emphasis on enhancing strategic partnerships to align technology and packaging needs [7][8] U.S. Investment and CapEx - **Significant CapEx Guidance**: Investment in Arizona driven by customer demand for U.S. manufacturing capabilities [9][10] - **Construction Timeline**: Groundbreaking in October 2025, with completion expected by mid-2027 and production ramp-up in early 2028 [11][13] - **Capacity Goals**: Phase one aims for 25,000 wafers per month capacity [13][14] Customer Dynamics - **Commitment from Customers**: Strong demand from major customers, including TSMC and Apple, for U.S.-based packaging [20][21] - **Diverse Customer Agreements**: Various commitment structures, including take-or-pay agreements and upfront investments [20][21] Market Dynamics Growth Projections - **Compute Market Growth**: Anticipated 20% year-over-year growth, driven by AI and data center demand [25] - **Automotive Sector**: Growth in advanced technologies for in-car computing and ADAS applications, despite flat unit car sales [27][28] - **Communications Market**: Expected single-digit growth, with ongoing challenges related to memory supply [29][65] Supply Chain Constraints - **Memory and Silicon Supply**: Issues with memory procurement affecting production capabilities; customers prioritizing products based on memory availability [29][30] - **Substrate Constraints**: Advanced substrates facing supply challenges due to AI growth, but manageable through strong supplier relationships [30] Advanced Packaging Focus Technology Development - **2.5D and HDFO Growth**: Significant revenue growth in 2.5D technology, with expectations to triple revenue year-over-year [35] - **Investment in Equipment**: 40% increase in equipment spending, primarily in Korea for HDFO platforms [36] Margin Expectations - **High Margins in Advanced Packaging**: Targeted margins for advanced packaging expected to be above corporate averages, with potential mid to high teens gross margins by the end of 2026 [54][56] - **Utilization Rates**: Advanced packaging facilities operating at higher utilization rates (70-80%), while mainstream locations remain lower [87][89] Long-term Outlook Strategic Importance - **Government Focus**: Increased attention on back-end manufacturing, with customer demand driving investments more than government mandates [92][96] - **Future Growth Opportunities**: Positive outlook for growth across various sectors, with a focus on balancing factory capacities and supporting automotive and advanced technology markets [96][97] Conclusion - **Overall Sentiment**: Amkor Technology is positioned for growth through strategic investments, customer partnerships, and a focus on advanced packaging technologies, despite facing supply chain challenges and market dynamics.

Group 1 - Onto Innovation is identified as a promising investment opportunity for 2026, driven by its potential in advanced packaging and semiconductor metrology [2][8] - Advanced packaging is recognized as a significant innovation driver for CPUs, memory, and optics, with high barriers to entry that favor early market leaders [3][8] - Increased confidence in capital spending from major chip manufacturers and commitments from hyperscalers are enhancing the outlook for semiconductor equipment stocks [4][8] Group 2 - The company is participating in several upcoming investor events, including the Morgan Stanley 2026 Technology, Media & Telecom Conference and the Cantor 2026 Global Technology & Industrial Growth Conference [5] - The complexity and cost associated with advanced packaging create a competitive advantage for companies that establish an early lead in the market [4][7] - The analyst's previous recommendation of Camtek over Onto Innovation is now being reconsidered, indicating a shift in investment strategy towards owning both stocks [6]

Core Insights - Amkor Technology, Inc. has been recognized as one of the best tech stocks that exceeded earnings estimates, with analysts raising price targets following a strong Q4 earnings report [1][2]. Group 1: Earnings Performance - Amkor reported Q4 revenue of $1.89 billion, surpassing consensus estimates of $1.84 billion, indicating strong financial performance [3]. - The company's CEO highlighted 2025 as a pivotal year, emphasizing record revenue in advanced packaging and computing, along with strategic execution [3]. Group 2: Analyst Ratings and Price Targets - Needham analyst Charles Shi raised the price target for Amkor to $65 from $50, maintaining a Buy rating, citing strong metrics and a robust FY26 CapEx outlook of $2.5 billion to $3 billion [1]. - Morgan Stanley increased its price target to $45 from $28 while maintaining an Equal Weight rating, revising EPS estimates post-Q4 report [2]. - Goldman Sachs also raised its price target to $43 from $38, keeping a Neutral rating, and noted expectations for modest stock movement following the earnings beat [2]. Group 3: Strategic Investments and Future Outlook - Amkor is accelerating strategic investments to support advanced packaging growth, entering 2026 with positive momentum [3]. - The company is focusing on Chip-on-Wafer-on-Substrate-related spending and operational progress, including reaching break-even in Vietnam and advancing construction at the Arizona campus [2].

Financial Data and Key Metrics Changes - The company reported record revenue of $267 million for Q4 2025, representing a 22% increase from Q3 [12] - Gross margin improved by about 50 basis points to 54.6% from Q3, while operating margins increased to 25.2%, up 410 basis points from the previous quarter [12] - For the full year, revenue reached $1,005 million, also a record for the company [12] Business Line Data and Key Metrics Changes - Advanced packaging and specialty devices generated approximately $145 million in Q4, accounting for slightly more than half of total revenue, with sales from the 2.5D packaging business doubling compared to Q3 [13] - Advanced nodes revenue more than doubled in 2025 to $308 million, driven by growth in both DRAM and logic, which together represent about 75% of the total [14] - Advanced packaging revenue is expected to grow over 30% in 2026, while advanced nodes are projected to grow in the range of 10%-20% [8][10] Market Data and Key Metrics Changes - The semiconductor capital equipment spending is projected to experience a powerful upcycle driven by AI investments, with NVIDIA forecasting a 40% CAGR for global AI infrastructure over the next five years [3] - Analysts project strong wafer fab equipment (WFE) growth in the range of 10%-20% in 2026, contingent on the availability of new clean room space [4] - The company has a backlog that has nearly doubled over the last three months, supporting strong growth expectations [10] Company Strategy and Development Direction - The company is focused on expanding its technology portfolio to meet the insatiable demand for AI, with a volume purchase agreement valued at over $240 million covering metrology demand through 2027 [4][5] - The company is ramping up extended factories to support a $2 billion run rate, indicating confidence in capacity to meet demand [24] - The integration of Semilab is expected to enhance operational discipline and improve scalability and profitability [17] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the strong momentum in advanced packaging and advanced nodes, with expectations for revenue in Q1 2026 to be in the range of $275 million-285 million [10][15] - The company anticipates continued margin expansion each quarter in 2026, with gross margin expected to improve by approximately 50 basis points from Q4 levels [16] - Management noted that customer discussions are increasingly constructive, with several extending forecasts into 2027 [4] Other Important Information - The company completed the acquisition of Semilab for $445 million in cash and stock, which is expected to contribute to revenue growth in 2026 [15] - The adoption of the One Big Beautiful Bill Tax Act resulted in cash tax savings of $19 million in 2025 and an estimated $14 million in 2026 [14] Q&A Session Summary Question: Market outlook for the year - Management expects advanced packaging to grow over 30% this year, with broad-based demand across various manufacturers [21] Question: Backlog and capacity for growth - The company is set up to serve a $2 billion run rate, with no significant capacity issues anticipated, though supply chain constraints are being managed [24][25] Question: Expectations for advanced packaging growth - Advanced packaging revenue is expected to be stable throughout the year, with potential upside from the adoption of G5 technology [30] Question: Visibility in advanced nodes growth - Advanced nodes are expected to grow in the range of 10%-20%, with ongoing discussions around volume purchase agreements providing better insight [33] Question: Contribution of Semilab to revenue - Semilab is expected to contribute low hundreds to $110 million in revenue for 2026, with challenges anticipated in the power semiconductor segment [59] Question: Growth rates for CoWoS and HBM inspection businesses - Growth rates for both segments are expected to be relatively similar, with demand for memory expanding [50]

Financial Data and Key Metrics Changes - In 2025, the company achieved a 10% year-over-year sales growth, a 20% growth in earnings per share (EPS), and over 20% growth in free cash flow [4][12] - The fourth quarter revenue was reported at $1.03 billion, reflecting a 5% sequential increase and a 10% year-over-year increase [13][18] - Gross margin for the fourth quarter was 46.4%, slightly down year-over-year but above the guidance midpoint [16][19] Business Line Data and Key Metrics Changes - Semiconductor revenue for Q4 was $435 million, up 5% sequentially and 9% year-over-year, driven by demand in DRAM and logic foundry applications [13][14] - Electronics and packaging revenue reached $303 million in Q4, a 5% sequential increase and a 19% year-over-year increase, primarily due to higher flexible PCB drilling and chemistry equipment sales [14][15] - Specialty industrial revenue was $295 million in Q4, up 4% sequentially and 5% year-over-year, supported by improvements in research and defense markets [16][19] Market Data and Key Metrics Changes - The semiconductor market is expected to see sequential revenue growth in Q1, driven by improving industry spending [6][11] - Electronics and packaging revenue is anticipated to increase slightly sequentially in Q1, with a year-over-year growth forecast in the low 20% range [10][24] - Specialty industrial revenue is expected to decline low- to mid-single digits sequentially in Q1, but year-over-year growth is projected in the mid-single digits [10][24] Company Strategy and Development Direction - The company is focused on maintaining strong gross margins while investing in business growth and reducing leverage [4][12] - A new supercenter factory in Malaysia is set to ramp up in the second half of the year, enhancing capacity and resilience [7][12] - The company aims to capitalize on the growing demand for advanced electronics and AI applications, positioning itself with a broad portfolio of solutions [4][9] Management's Comments on Operating Environment and Future Outlook - Management noted a strengthening demand outlook across semiconductor and electronics markets, with large chip manufacturers announcing ambitious CapEx plans [5][6] - The company expects to outperform industry spending in improving demand environments, with a strong position in supporting leading-edge foundry investments [11][12] - Management expressed confidence in meeting customer demand and maintaining profitability despite potential challenges in consumer electronics [4][64] Other Important Information - The company reported a net leverage ratio of 3.7 times at year-end, with a focus on deleveraging and maintaining liquidity [18][21] - A dividend of 22 cents per share was paid, with a 14% increase authorized for the next dividend [22][21] Q&A Session Summary Question: How much of the 46% gross margin is from chemistry equipment mix? - The lower Q1 gross margin is due to seasonality from lower chemistry sales, with expectations for improvement in Q2 and Q3 [27] Question: Can you discuss the memory shortage and its impact? - The industry is rapidly investing in DRAM for AI, with NAND becoming a potential bottleneck, but the company has capacity to meet upgrades [28][29] Question: How much of the electronics and packaging growth was due to capacity additions? - The growth was driven by both capacity additions and utilization of chemistry equipment, with strong bookings expected to continue [34][35] Question: What is the outlook for WFE growth this year? - Customers are anticipating 20% year-over-year WFE growth, with the company positioned to outperform during this upturn [42][43] Question: Should we anticipate chemistry revenue to accelerate or decelerate in 2026? - AI chemistry revenue is expected to grow, offsetting potential declines in consumer electronics [62][64] Question: How is the company managing capacity with the new Malaysia facility? - The Malaysia facility is part of a business continuity plan, with sufficient existing capacity to meet current demand [52][53] Question: Are there any constraints from customers regarding equipment space? - There have been no reported constraints from customers regarding space for new equipment [79]