Financial Data and Key Metrics Changes - For Q4 2025, consolidated net revenues were NT$177.9 billion, a 6% sequential increase and a 10% year-over-year increase. On a US dollar basis, sales increased by 2% sequentially and 14% year-over-year [14] - The gross profit was NT$34.7 billion, with a gross margin of 19.5%, improving by 2.4 percentage points sequentially and 3.1 percentage points year-over-year [14] - Operating profit for Q4 was NT$17.7 billion, up NT$4.5 billion sequentially and NT$6.5 billion year-over-year, resulting in an operating margin of 9.9% [15][16] - For the full year 2025, consolidated net revenues improved by 8% compared to 2024, with net income increasing by 25% to NT$40.7 billion [20] Business Line Data and Key Metrics Changes - The ATM business improved by 20% in 2025, accounting for 60% of consolidated net revenue, up from 54% in 2024. The EMS business declined by 5% annually [18] - In Q4 2025, ATM revenues reached NT$109.7 billion, up 9% sequentially and 24% year-over-year, with a gross profit margin of 26.3% [22] - The testing business grew 36% year-over-year in 2025, supported by expanding turnkey and leading-edge test services [10] Market Data and Key Metrics Changes - The company anticipates that the mainstream business, including IoT and automotive sectors, will recover better in 2026 compared to 2025, driven by AI proliferation and general market recovery [3][11] - The EMS business is expected to extend its capabilities into AI and AI-adjacent applications, with a focus on server, optical, and power solutions [30] Company Strategy and Development Direction - The company is focusing on a "Taiwan Plus One" strategy to support global manufacturing requirements, with significant investments in Penang, Korea, and the Philippines [9] - The company plans to aggressively increase CapEx spending to support strong business prospects for 2026 and beyond, with an additional $1.5 billion in machinery planned [37] - The company aims to enhance its competitive advantage through technology collaboration and resource management within the Taiwan semiconductor cluster [6][8] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the future, citing a favorable pricing environment and expected improvements in operating leverage [37] - The company expects the ATM business to continue outperforming the logic semiconductor market, with leading-edge assembly packaging services projected to double in revenue [11] - Management acknowledged the challenges of supply constraints and the need for careful resource planning to meet demand [52] Other Important Information - The company reported a net non-operating gain of NT$0.6 billion for Q4, primarily from foreign exchange hedging activities [16] - The effective tax rate for 2025 was 18.4%, with expectations for 2026 to be around 18% [20] Q&A Session Questions and Answers Question: Can you provide a breakdown of your LEAP business revenue? - The company expects to double LEAP revenue to NT$3.2 billion this year, with a significant portion coming from OSAT and wafer sort, and anticipates tripling full process revenue to about 10% of overall LEAP service revenue [41][43] Question: What is the outlook for your mainstream business? - The mainstream business is expected to grow at a similar pace as last year, with a friendly pricing environment and decent loading from general sectors, including AI data centers [51] Question: Is the EMS business being downsized? - The EMS business is not being downsized but is realigning to focus on AI and system-level optimization, with expectations for growth in the coming years [96]