PresentationSunny LinUBS Investment Bank, Research Division Good morning, good evening. Thank you all for attending the conference call with ASE. I'm Sunny Lin, covering Greater China [ Semis ] at UBS. It's my great honor to host Mr. Yin Chang, Executive VP of ASE for Sales and Marketing. He will be sharing with us how advanced packaging innovations are evolving to support cloud AI technologies. ASE's IR team, Ken Hsiang, Iris Wu, Chiayi Liao will also be on the line as well to take questions with Yin towar ...

December 22, 2025 01:18 AM GMT Semiconductors | North America Weekly: SEMICON Japan Takes We come out of SEMICON Japan more positive on the operating environment as companies called out a DRAM and leading logic uptick. We attended SEMICON Japan. For a more detailed recap, see Semiconductor Production Equipment: SEMICON Japan 2025 (19 Dec 2025). Incrementally more positive on the near-term. The Japan SPE supply chain has clearly seen an uptick over the last month or so with sub-system players talking about a ...

Core Insights - Amkor Technology Inc reported strong earnings for Q3, with earnings per share (EPS) of 51 cents, surpassing the analyst consensus estimate of 42 cents [1] - The company achieved quarterly sales of $1.987 billion, exceeding the analyst consensus estimate of $1.932 billion [1] - For Q4, Amkor expects GAAP EPS to be between $0.38 and $0.48, with sales projected between $1.775 billion and $1.875 billion [1] Financial Performance - Q3 revenue reached $1.99 billion, marking a 31% sequential increase, driven by demand for Advanced packaging [2] - The company set a new revenue record in its Communications and Computing end markets [2] Strategic Developments - Amkor broke ground on a new Advanced packaging and test campus in Arizona, emphasizing its commitment to U.S. semiconductor manufacturing [2] Market Reaction - Following the earnings announcement, Amkor Tech shares fell by 3.4% to $32.06 [2] Analyst Ratings and Price Targets - Consensus rating for Amkor is "Buy" with a highest price target of $37.00 and a lowest price target of $20.00, leading to a consensus price target of $29.00 [4] - Needham analyst Charles Shi maintained a "Buy" rating and raised the price target from $32 to $37 [6] - JP Morgan analyst Peter Peng maintained an "Overweight" rating and increased the price target from $27 to $32 [6]

Core Insights - Amkor Technology Inc reported strong earnings for Q3, with earnings per share (EPS) of 51 cents, surpassing the analyst consensus estimate of 42 cents [1] - The company achieved quarterly sales of $1.987 billion, exceeding the analyst consensus estimate of $1.932 billion [1] - For Q4, Amkor expects GAAP EPS to be between $0.38 and $0.48, with sales projected between $1.775 billion and $1.875 billion [1] Financial Performance - Q3 revenue reached $1.99 billion, marking a 31% sequential increase, driven by demand for Advanced packaging [2] - The company set a new revenue record in its Communications and Computing end markets [2] Strategic Developments - Amkor broke ground on a new Advanced packaging and test campus in Arizona, emphasizing its commitment to U.S. semiconductor manufacturing [2] Stock Performance - Following the earnings announcement, Amkor Tech shares fell by 3.4% to $32.06 [2] Analyst Ratings and Price Targets - Consensus rating for Amkor Tech is "Buy" with a highest price target of $37.00 and a lowest price target of $20.00, resulting in a consensus price target of $29.00 [4] - Needham analyst Charles Shi maintained a "Buy" rating and raised the price target from $32 to $37 [6] - JP Morgan analyst Peter Peng maintained an "Overweight" rating and increased the price target from $27 to $32 [6]

Financial Performance - Q3 2025 revenue reached $1.99 billion, a 31% sequential increase[11] - Q3 2025 Earnings Per Share (EPS) was $0.51[11] - Q3 2025 gross profit was $284 million with a gross margin of 14.3%[26] - Q3 2025 operating income was $159 million with an operating margin of 8.0%[24] - Q3 2025 EBITDA was $340 million with an EBITDA margin of 17.1%[29] Revenue Breakdown & Growth - Communications revenue experienced a 67% sequential increase, driven by the iOS ecosystem[15] - Computing revenue increased by 12% sequentially, fueled by investments in AI and HPC[15] - Automotive and Industrial revenue grew by 5% sequentially, driven by Advanced Packaging for ADAS applications[16] - Consumer revenue increased by 5% sequentially, but a decline is expected in Q4 due to product life cycle[16] Q4 2025 Guidance - Q4 2025 revenue is projected to be between $1.775 billion and $1.875 billion[32] - Q4 2025 gross margin is expected to be between 14.0% and 15.0%, including an approximately $30 million benefit from asset sales[32]

Core Insights - Qnity Electronics, Inc. is positioned as a leading technology solutions provider in the rapidly expanding semiconductor market [1] - The company offers comprehensive product integration across the semiconductor value chain, including chip manufacturing, advanced packaging, and thermal management solutions [1] Company Overview - Qnity Electronics, Inc. is recognized for its end-to-end horizontal product integration in the semiconductor industry [1] - The company is set to host its inaugural Investor Day, indicating a commitment to engaging with investors and stakeholders [1]

Core Insights - Onto Innovation Inc. (ONTO) reported Q2 2025 earnings per share (EPS) of $1.25, missing the Zacks Consensus Estimate by 1.6% and down from $1.32 in the prior year [1][8] - Quarterly revenues reached $253.6 million, exceeding the Zacks Consensus Estimate by 1.5% and reflecting a 5% year-over-year increase, driven by growth in advanced nodes and AI-packaging [1][8] Revenue Breakdown - Specialty devices and advanced packaging revenues accounted for 46% of total revenues, totaling $117 million [2] - Revenues from the Advanced nodes market, which represented 35% of total revenues, were $89 million, supported by strong demand in leading-edge DRAM and NAND memory, although GAA transistor demand slowed as anticipated [2] - Software and services revenues, making up 19% of total revenues, amounted to $48 million [3] Acquisition Details - ONTO announced the acquisition of Semilab International's materials analysis business for $475 million in cash and 706,215 shares of common stock, pending regulatory approvals [4] - The acquisition is expected to generate $130 million in revenues in 2025 and enhance gross and operating margins, with non-GAAP EPS projected to increase by over 10% in the first year post-acquisition [5] Margin and Financial Performance - Operating expenses rose to $89.9 million, a 13.2% increase year-over-year [6] - Non-GAAP gross profit increased to $138.3 million, with a gross profit margin of 54.5%, up from 53.2% in the previous year [6] - Non-GAAP operating income was $65.6 million, with a non-GAAP operating margin of 25.9%, down from 26.6% year-over-year [6] Balance Sheet Overview - As of June 28, 2025, ONTO had $894.9 million in cash and marketable securities, compared to $850.6 million as of March 29, 2025 [6] - Total current liabilities decreased to $155.8 million from $174.5 million in the same period [6] - Accounts receivable stood at $285.3 million, with cash generated from operations reaching a record $58 million, reflecting a 95% cash conversion of non-GAAP net income [7] Q3 2025 Guidance - ONTO expects Q3 total revenues to be between $210 million and $225 million, with a consensus estimate of $217.8 million, anticipating a slowdown in advanced node spending [9] - Non-GAAP EPS is projected to range from 75 cents to 95 cents, while GAAP EPS is expected between 52 cents and 72 cents [10] - Non-GAAP operating margin is anticipated to be between 18% and 21% [10] Tariff Impact and Strategy - ONTO expects to incur tariff expenses of $2 million to $3 million in both Q3 and Q4 due to inbound tariffs [11] - The company is implementing a region-for-region strategy, rapidly establishing manufacturing capabilities in several Asian markets, with shipments expected to commence in the current quarter [11]

Investment Rating - The report does not explicitly provide an investment rating for the advanced packaging industry. Core Insights - Advanced packaging is essential for overcoming semiconductor performance bottlenecks, enabling higher speeds and efficiency through enhanced interconnect density and improved thermal management [1][4][8]. - The advanced packaging market is projected to grow at a compound annual growth rate (CAGR) of approximately 12% from 2024 to 2029, with high-end performance packaging expected to grow at a CAGR of 37% [4][54][55]. - Hybrid bonding technology is highlighted as a key evolution in semiconductor performance, offering significant advantages in terms of cost, efficiency, and application potential [4][89]. Summary by Sections Advanced Packaging Key to Future Scaling - Moore's Law has led to increased transistor density, but performance metrics like single-thread performance and power efficiency have not kept pace, creating bottlenecks [7][11]. - Advanced packaging addresses these limitations by improving interconnect density and thermal management, allowing chips to operate at higher speeds [8][11]. Semiconductor Architecture Evolution - The shift from monolithic System-on-Chip (SoC) designs to 2D chiplets allows for modular chip design, optimizing cost and performance [16][21]. - 2.5D and 3D packaging techniques enhance data transfer efficiency and increase transistor density [25][26]. Bonding and Packaging Technologies - The evolution of bonding technologies from wire bonding to hybrid bonding reflects the industry's need for higher precision and density in interconnects [62][64]. - Hybrid bonding enables direct copper-to-copper interconnects, significantly reducing latency and increasing interconnect density [95][89]. Market Growth and Trends - The advanced packaging market is expected to reach $84 billion by 2029, driven by innovations in AI, 5G/6G, and autonomous driving technologies [54][40]. - High-end performance packaging, particularly in segments like 3D NAND and HBM, is projected to contribute significantly to market growth [55][48]. Adoption of Hybrid Bonding - Hybrid bonding is currently limited to high-end applications but is expected to see wider adoption due to its performance advantages over traditional methods [4][89]. - Companies like AMD and Intel are early adopters of hybrid bonding, indicating a trend towards its increased use in advanced semiconductor applications [4][89]. Competitive Landscape - The advanced packaging equipment market features several competitors, with BE Semiconductor (Besi) noted for its strong position in hybrid bonding [4][54]. - The report emphasizes the need for semiconductor manufacturers to invest in advanced packaging technologies to remain competitive [84][85].