Financial Data and Key Metrics Changes - The company recorded fully diluted EPS of NT$2.41 and basic EPS of NT$2.50 for Q3 2025, with consolidated net revenues of NT$168.6 billion, representing a 12% sequential increase and a 5% year-over-year increase [4] - Gross profit was NT$28.9 billion with a gross margin of 17.1%, improving by 0.1% sequentially and 0.6% year-over-year [4][6] - Operating profit increased to NT$13.2 billion, up NT$3 billion sequentially and NT$1.7 billion year-over-year, with an operating margin of 7.8% [6][7] Business Line Data and Key Metrics Changes - The ATM business achieved record revenues of NT$100.3 billion, up NT$7.7 billion sequentially and NT$14.5 billion year-over-year, representing an 8% sequential increase and a 17% annual increase [8] - The EMS business reported revenues of NT$69 billion, increasing 17% sequentially but down 8% year-over-year, primarily due to differing underlying device seasonality [12][13] - The test business grew 11% sequentially and 30% annually, outpacing the assembly business [8] Market Data and Key Metrics Changes - The NT dollar appreciated by 4.6% against the US dollar during the quarter, negatively impacting margins at the holding company and ATM levels by 1.4% and 2.1% sequentially, and 2.4% and 3.6% annually [3][4] - The company expects a more stable NT dollar environment in Q4 with an average exchange rate of NT$30.4 per US dollar [4] Company Strategy and Development Direction - The company is focusing on expanding its LEAP services, driven by AI demand, and expects to reach NT$1.6 billion in revenue for LEAP by the end of the year [21][27] - The company plans to increase capital expenditures to support customer requests and business momentum into 2026, particularly for wafer probing for AI and non-AI chips [21][22] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving revenue targets despite geopolitical uncertainties affecting packaging [26] - The company anticipates continued strong momentum in the AI and HPC-related business, with expectations for significant revenue growth in 2026 [27][64] Other Important Information - The company reported a net non-operating gain of NT$0.8 billion, primarily from foreign exchange hedging activities [7] - Total interest-bearing debt increased to NT$295.7 billion, primarily due to a NT$50 billion syndicated loan for capital expenditures [15] Q&A Session Summary Question: Progress on LEAP revenues and margin contribution - Management confirmed they are on track to reach the NT$1.6 billion target for LEAP this year, with strong momentum expected to continue into 2026 [26][27] Question: Pricing environment and negotiations - Management indicated that pricing remains resilient and will be adjusted based on the current market situation, with stable pricing expected for mainstream advanced packaging [32][35] Question: Update on US operations and competition - Management is evaluating investment opportunities in the US but has not made any decisions yet, emphasizing the need for economic viability [41] Question: Final test business update - Management is making necessary investments to build capacity for final tests, expecting meaningful revenue generation in the latter part of next year [44] Question: Revenue split for incremental AI-related revenue - Management indicated that for the expected NT$1 billion increase in AI-related revenue, approximately NT$650 million is anticipated from packaging and NT$350 million from testing [49] Question: Gross margin outlook - Management expects gross margins to improve, with a target of over 27% in Q4, driven by increased utilization and expansion in leading-edge business [64][83]

Financial Data and Key Metrics Changes - For Q3 2025, the company reported fully diluted EPS of TWD 2.41 and basic EPS of TWD 2.50, with consolidated net revenues of TWD 168.6 billion, representing a 12% sequential increase and a 5% year-over-year increase [4][7] - Gross profit was TWD 28.9 billion with a gross margin of 17.1%, improving by 0.1% sequentially and 0.6% year-over-year [4][6] - Operating profit was TWD 13.2 billion, up TWD 3 billion sequentially and TWD 1.7 billion year-over-year, with an operating margin of 7.8% [6][7] Business Line Data and Key Metrics Changes - The ATM business achieved record revenues of TWD 100.3 billion, up 8% sequentially and 17% year-over-year, with a gross profit margin of 22.6% [8][9] - The test business grew 11% sequentially and 30% annually, outpacing the assembly business [8] - EMS revenues were TWD 69 billion, increasing 17% sequentially but down 8% year-over-year, with a gross margin of 9.2% [13][14] Market Data and Key Metrics Changes - The NT dollar appreciated by 4.6% against the U.S. dollar during Q3, negatively impacting margins [3] - The company expects a more stable NT dollar environment in Q4 with an average exchange rate of TWD 30.4 per U.S. dollar [4] Company Strategy and Development Direction - The company is focusing on expanding its leading-edge business, particularly in AI and HPC-related areas, with plans to increase CapEx to support this growth [21][22] - The company aims to maintain a competitive edge by investing in both packaging and testing capabilities, with a strong emphasis on customer needs and market demands [17][18] Management Comments on Operating Environment and Future Outlook - Management expressed confidence in reaching the $1.6 billion revenue target for LEAP this year, with expectations for continued strong momentum into 2026 [26][27] - The company anticipates gross margin improvements in Q4, projecting a gross margin over 27% at stable currency levels [67] Other Important Information - The company reported a net non-operating gain of TWD 0.8 billion, primarily from foreign exchange hedging activities [7] - Total interest-bearing debt increased to TWD 295.7 billion, mainly due to a TWD 50 billion syndicated loan for CapEx [15] Q&A Session Summary Question: Progress on LEAP revenues and future outlook - Management confirmed they are on track to reach the $1.6 billion target for LEAP this year, with strong momentum expected to continue into 2026 [26][27] Question: Pricing environment and negotiations - Pricing remains resilient, with management indicating they will adjust pricing based on current market conditions [32][36] Question: U.S. operations and competition - The company is evaluating investment opportunities in the U.S. but has not made any decisions yet [42] Question: Final test business update - The company is expanding its test business aggressively, expecting meaningful revenue from next-generation AI chips in the latter part of next year [46] Question: Revenue split for incremental $1 billion in 2026 - The expected breakdown for the $1 billion increase is approximately $650 million from packaging and $350 million from testing [54] Question: T-glass shortage impact - Management stated they have not seen disruptions in service due to material shortages and are well-positioned to secure necessary components [116]