AMKR - Earnings call transcript Q4 2024

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Operator

Good day, ladies and gentlemen, and welcome to the Amkor Technology Fourth Quarter and Full Year 2024 Earnings Conference Call. My name is Diego, and I will be your conference facilitator today. [Operator Instructions] As a reminder, this conference is being recorded. I would now like to turn the call over to Jennifer Jue, Head of Investor Relations. Ms. ahead. go please Jue,

Jennifer Jue

Good Amkor's and Conference Fourth operator. joining Call. you us for Quarter afternoon, you, thank everyone, for Thank XXXX Earnings

and Joining Chief Financial Giel are Megan Officer; Officer. me Chief Faust, Rutten, our today Executive our

earnings that this and SEC accompany Relations of today's is with with along Investor afternoon our the call. press website, release on the Our filed page the was available presentation slides

equivalent to on measures, presentation, website. and non-GAAP you the we U.S. the find this GAAP During financial reconciliation our will can use

We we will about statements our expectations based on for performance make forward-looking it. Amkor's the currently future environment as see

Of differ XX-K. filings refer final for Please from in note Please materially course, cause financial and to SEC risk included our on release Form could factors, these uncertainties discussed and expectations. and could preliminary, actual the today information are results that data exceptions to our results be results differ. will that press actual

over And call now I'll turn the to Giel.

Giel Rutten

afternoon, you billion and in $X.XX. you, with $X.XX line of everyone, results Thank revenue and with quarter the Good for call EPS Amkor fourth thank Jennifer. guidance delivered today. joining of

year the the our we For XXXX, $X.X The was a expectations decline improvement in end expected year had from automotive year. previous except half. revenue X% for and the weakness the where in billion, industrial full met markets second the

GPUs. The of $X.X in packaging technology billion. milestones. of AI the record by increased growth X% end revenue a During $X.X and and significant ARM-based year-over-year SiP we Advanced achieved X.XD driven a year, advanced reached market for billion several PCs record computing reached

with growth leadership in our million the manufacturing memory on in to production expanding funding short-term support advanced Arizona and Despite technology for support in devices. our and in remain strengthening our partnering footprint strategy dynamic markets. challenges, and and advanced our in qualified We and and system ramped partnership focused we Infineon $XXX expanded modules We package to power we Vietnam CHIPS with our Europe. global facility, and support planned macro TSMC to secured our U.S. facility and U.S. with customers solidified packaging the environment packaging, lead new

discuss was Android me socket quarter, of full lower to iOS end new for build temporarily in to we markets. XX% phone pattern decline communications revenue latest full in are This declined growth market participating a fourth gap communication In revenue The iOS due our an that not our phones year X% in. the the socket sequentially change let the drove Now end content for of by each the in slightly our due total for offset in revenue decline the XXXX. SiP iOS X% and year.

to communications We're the growth For customer collaborating our business half. muted strategic phones. by SiP in in with XXXX, we second be expect the socket followed in in above-seasonal next-generation half, are and confident first the the our iOS closely recovering

improvement We to and expect flat revenue Android continued in year-on-year. are communication projecting total revenue be

and ramping the levels. year GPUs supporting PCs growth, upside. dampened demand XX% Revenue programs sequentially computing while market weakness XX% increased in full for servers end the to and in and ARM-based led record Strong traditional for networking AI our

trade the product family, dynamics the in adjusted expectations GPU supply with an AI accelerated restrictions chain near-term growth have weeks, new resulted center year. the a our Within data AI outlook. have to X.XD within few past transition for together impacted new We

running level at AI continue volume for previously lower GPUs than to expect anticipated. We but X.XD a

which next-generation RDL our interposer including in on these we remain low-volume As pipeline, continues programs our new production. first customer dynamics, project X.XD started our ramp volume we that technology, to confident navigate and the

for political year. the of full limit uncertainty The environments visibility

to full year. However, market for growth mild we end show expect our the computing

our missing and automotive fourth X% control. weakness deteriorated sequentially, the growth inventory Customer throughout tight revenue the expectations. in our macro due mild In and quarter quarter, end to flat industrial to declined forecasts market

industrial the end XX% due year-on-year year, has $XXX peak in in nearly automotive to declines declines. compared full quarters to the row market From For XXXX, mainstream have XX%, declined our a revenue of and products. experienced million, declined and X primarily in we

mild XXXX, in uncertain. packaging the programs in expect Overall, the although growth. in softness in remain anticipate our we full For mainstream optimistic timing recovery we first mid-teens of automotive year advanced part and is portfolio, the percent grow to the about and year the

consumer ramp SiP to applications. Revenue advanced technology. other by helped increased XXXX the market offset consumer XX% driven in program headwinds for in full This wearable a end utilizing traditional our of program year new

Our after revenue steady in steep ramp third in the relatively fourth a quarter the quarter. remained

we of XXXX, program programs. year in by wearable growth for traditional driven and full a production consumer improvements the modest mild expect For

Now to our I outlook. quarter will turn first

expect QX, decline temporary a the iOS due to in For socket current we X%, revenue primarily billion, $X.XXX phones. reflecting of year-on-year of the gap

half content generation flat half, by be the strong low to single-digit of followed by to For each the second markets in be end iOS foresee With to full first muted slightly expected flat expect up, the we revenue recovery we a company driven phones. XXXX, the growth year to next for year. of a total

more detailed will turn information. to I that, to the With financial call now Megan over provide

Megan Faust

a product financial gross prolonged of advanced everyone. communications and quarter $X.XX Gross sequentially, and metrics increased change QX XX.X%. SiP. primarily profit in from gross as the seasonal Revenue million, end with declined met Fourth industrial Giel, within Fourth $XXX XX well with to in proportion due basis mix afternoon, lower points automotive markets was you, margin margin billion a weakness was markets. financial primarily end of to performance than expectations more Thank as range. our and due guidance good all quarter our

also points facility. of by being this impacted ramp of gross basis margin is had Vietnam new Our QX, our approximately burden. XX the In

and was offset the $XXX resulting fourth operating net of Favorable quarter Operating expected to EBITDA million, taxes, $X.XX. lower margin X.X%. or million, Operating income came EPS $XXX EBITDA currency $XXX XX.X%. the partially $XXX margin for at income due partially compensation. quarter lower was expenses than was in million, quarter for million in foreign of incentive income and Fourth higher-than-expected was

Now let's Revenue and X% $XXX operating margin adhered measures cycle performance. turn was $XXX Operating year-on-year containment maintain and XX.X%. utilization, $X.X million, Gross prolonged teams profit million, of our to due full cost down profitability. the billion the was strictly gross was to year low to manufacturing was income was XXXX margin X.X%. the year and for to

and rate income was full Our EPS margin was was million, effective year $X.XX. billion, tax resulting of Net for the $X.X $XXX XX.X%. EBITDA EBITDA XX.X%. was in year

million, investments the on expanding CapEx intensity. for We and efficient our financial strict for exhibited was Free an X.XD million, has was focused capital Amkor in discipline. For XX.X% year Korea $XXX working cash SiP and for management full performance. capacity demonstrating Korea in capital and Vietnam. flow both $XXX XXXX operational advanced

billion investments $X.X the and of total of year $X.X cash liquidity ended with and billion. short-term We

total the Our end the debt ratio of quarter as X.Xx. billion, $X.X is of debt-to-EBITDA and is our

quarter Moving anticipate to of $X.XXX approximately year-on-year our on of a decline billion, We revenue X%. first representing outlook.

With will the ramps burden underutilization scale, the Vietnam expected as across constrained. new our factories profitability facility our associated be and it with

between XX% expect margin and We to XX%. gross be

around expect operating We $XXX of million. expenses QX

increase to our expect rate regulations. around XX% new tax global effective We tax full to due to year

income $XX to resulting net at guidance, is midpoint the be of million in of expected quarter $X.XX. First EPS

for million, which new our Arizona. $XXX is X% XXXX estimated for XX% facility is forecast of to in advanced packaging CapEx Our

production manufacturing environment, this in beginning our strengthened resilience footprint and advanced milestones successfully demonstrated our X.XD geographic by for has leaders and CHIPS proud with partnerships for are reached technology location planned expanded and we in U.S. Amkor we advanced securing in broad in industry funding markets. and enhanced the dynamic our growth of portfolio XXXX, packaging and SiP, Vietnam

will With questions. open we for now your call that, up the Operator?

Operator

Goldman from question Toshiya Hari first Our Sachs. Instructions] with [Operator comes

Toshiya Hari

Giel communications business. on for one the Maybe

You would confidence significant for clarify or year? lower gives can that quarter, content iPhone talked that sort the really hit back first of from sort half and had I the guess, the partner to helpful. guess that you in confirm -- most in And of your in your was that back the 'XX. recent the a what content then, guess, or little it can the you you of regain how then come that indeed bit be the in what expectation of all, the well, and I I if impact about

Giel Rutten

bit me Toshiya, give this on to let yes, a SiP you background socket. try

already we the First XXXX. generation, long-standing of ramp lead customer the production new all, the in technology started the that of record sight to quarter new confidence this with in prepare have to mass have third the clear of will and get next next-generation a back and socket products XXXX. this generation happen for this market. in into We in of Amkor slot development bringing line We new phone of we track of

was it the in end the do decided by way say, an important, decision It changeover let's the phone. do was a it we of to architecture strategic to it customer that because their

line sense, that a we sight. significant impact. is in So clear have It of

see. let's Megan, impact would help be QX So here? can -- you roughly The

Megan Faust

Yes.

as the of The lesser of was was the QX far impact. gap as Toshiya, piece impact, the the So bigger really build the QX the pattern socket X.

for of look it as think guide As QX, QX, way I the driver at our is communication. about year-over-year our with biggest that we X% of is decline the think to

notable, year-over-year where is so that's a And the in decline. gap socket is

Toshiya Hari

things. my side one follow-up, maybe of for Megan the then as on And gross margin

QX. to guiding in you're So XX% to XX%

we think how takes as QX. But mix about to half? volumes think into the QX it and You grow should went you back as progressing 'XX? through as and trajectory stays gross should move the we I about how pertains margins throughout Vietnam, But puts a headwind. assume, and evolves,

Megan Faust

Sure.

guide, pretty going concerned as with range as So that math's that's QX yes, incremental provided to a QX. far for we for the flow-through our our follow traditional

XX% I in material to at previous today, past our has X flow-through with out years. I remaining the content, XXXX, that's evolved part incremental from would content say would incremental XX% and XX% original -- were of does support, XX% at the came the we the out our towards of in Back we that look material model, we to over XX% we're happened XX%. when As year, given still financial flow-through. lift model the This

say is now I to profile. financial our would the model XX% better So XX% given

Vietnam towards will be around flow-through. From XXX point we way in think the QX. would to XXXX, have As look perspective, about same the a that that burden basis incremental

of course reduce the That is we be the So that's exit we as incorporated year our that income. into XXXX, gradually operating at such breakeven to going over will guide.

on full year. So an have that of will the less impact

Operator

next Our Stanley. with Joe Morgan comes Moore from question

Joseph Moore

autos quarter, that package also growth? types for confidence Can just What gives that what eroding optimism you I guess seeing? the course in give you we're for about talked that your the can of sense specific macro weakness talked over offset the us a about XXXX. you the are but you the

Giel Rutten

this Joe, Giel. is

market? specific were You one referring to specifically

Joseph Moore

automotive. to Yes,

Giel Rutten

market us X% automotive previous the Well, the quarter. in single-digit automotive. in disappoint our came in the improvement fourth below fourth we a share at we it were To expecting significantly but quarter because the quarter, lower

that's disappointing. So

project Now if in as we going say, and incumbent we strength have we advanced in infotainment, our well specifically in-car advanced forward, the, automotive, as the pipeline player devices, see for with where ADAS take for packaging. the packaging networking automotive, newcomers for strength let's

that a sense, in let's have project and confidence flat be, XXXX will a we say, So pipeline, strong in automotive. that that year builds

a not our the our expect now declined we're vague. the least our although we line of is visibility getting but reached from -- customers, that is at portfolio significantly mainstream we still that for that year, believe That's over gradual For last the clear. products, feedback mainstream It very and it's we improvement trough. sight

Operator

comes Peng Peter Chase with Co. & Your JPMorgan from next question

Peter Peng

Maybe if can -- ramps And at either that customer. customer to marquee down more about maybe little dynamic are importantly, then kind dynamic. that a backfill their of you bit you the with et time time more customers, just that some cetera? the talking you spend Blackwell spend can on how rollout, your Maybe expanding given of as expecting if

Giel Rutten

Yes. Good point, Peter.

dynamics couple see to mean, growth for me explain that the as compute over broader we the market I an next significant with of Let important the years. for a in you market, try here. opportunity us in the sense

impact GPU the next-generation then restrictions of on -- in quarter in by AI second below the there specifically say, see, now. GPUs, ramp to the let's market, had end and be So we second quarter by the we the first for a quarter. China and generation our these families. the still of of see reasons, specifically introduced devices in first XXXX, X.XD related And couple of that came for to the the in accelerated expectation the planning were second that we is that ramp XXXX, AI being element the several And business

Now next to short-term these, I would dynamics. it call

our pipeline. We are project customer overall confident in and

customer RDL-based That's first technology X.XD in We're We the to are expanding quarter. in portfolio second our also ongoing. ramping our with technology.

first devices already we have ramping say, further, And X in going project have up, production which technology. let's is X the We in strong quarter. in forward of pipeline a AI-based

a if and a we currently engagements the technology R&D, GPU customer in to leader. we a technology in production into follower, on work bridge-based look that not with one there, Now have we we technology, bring several that to are consider next-generation us, and that more technology than devices XXXX. And

Peter Peng

And maybe spending muted given how through about just talk year thinking you OpEx if then the can just the revenue more about you're expectations.

Giel Rutten

that Okay. to Megan. leave I'll

Megan Faust

come in so OpEx QX than Peter, did yes, lower expected. we

full I pretty to a that for expecting As incentive to we're increase total QX, at being OpEx seasonal your of reset XXXX. From anticipate would similar mainly comp. looking year, we're

to invest modules. map our technology to road technology well We surrounding are power as in other going continue as

anticipating reduction include also continued other to in strict travel control, and we and to what a XXXX. OpEx of count deferral maintain projects level similar. achieved we're of similar of That discretionary spend, head would So lower

Operator

B. next Securities. Craig Riley Ellis comes Our question from with

Craig Ellis

to expect? that start would compute AI in it contribute look And was of you that within growth opportunities look I the real systems? versus at if within to we growth expect GPU-based from came stick is the strong What segment, you much different how understand I'll the off. how as those at XXXX, to you to PCs XXXX, hoping

Giel Rutten

Thanks, Craig.

and would able that the plan. to part We in major GPUs we Let technology, data X.XD growth was that have That to and invested for ramped XXXX. centers. -- in quadruple with AI the in that seen of revenue the that we within XXXX according growth we consider the there, me in for were start we X.XD

our compute record So of in our market. major part that was the year

and continue a significant we diversifying business our a on technology forward. capacity potential the base installed in our good diversifying see current we Now the still we order debt going diversify base. We're base, beyond our We're as base. market, customer customer capabilities and have to

the a take products have new are PCs, AI-based of couple customers we If that there. we introducing segment of then

where believe others, I that more are an are we positioned. than customers Some well still successful but segment that's emerging

We that currently products companies. with X have There lead the in fabless in customers market. market are

smartphones. when ultimately but we sense, edge AI growth to further like forward, devices see So going in moves certainly PCs that also to

Craig Ellis

real Giel. less the That's question. a question And that's follow-up modeling helpful is a and one more question color, program new

how how you that in the AI. the X, that through growth as Amkor, X? it, it wearables look But seems benefited So ARM-based is for good things in set we and XXXX, company-specific continued was had at very X at order impressive And opportunity PCs will some a benefit through as AI and if those SiP an and to rank list? look would would X clearly, foundation there's like recapture you multiple And to because the look share, it XXXX, it program, company segments. were and you there

Giel Rutten

Yes.

I the scan we see communication. We with it, as opportunities let's Craig. that. mean through covered me start already Let

growth. That not Now next-generation in socket regaining the phone SiP critical. the will is initiate

We more expect flat Android although in some see a side, communication recovery we year, year. flat currently we plan communication for but a the

will for both We automotive the the ] on we say, in advanced have products as that infotainment. definitely in question, lease well and revenue If we ADAS previous, I that. in [ are materialize that covered see introduced, automotive, XXXX. With there, market, upsides take let's as that we refresh also to customers And the will a and pipeline in see products being next-generation pipeline. strong that

our in this decline, in little stays almost that we The the that is slightly power we into a year. year but feedback X power going see flat side will seen a of Mainstream hope mature 'XX. and recovery up now and years and in least automotive, definitely a see is and that of hope at the market at automotive EV have during bit soft we customers vague, to also but market. a modules row bit we that Not a on breakthrough even includes little products there from moment,

into Now then compute move segment. the

see this forward. that a many, China is had worst conservative that slightly growth are as, that include a let's also flat uncertainty, these segment on to let's the significant the say, upsides, planning also say, in but opportunities our there. year restrictions. pipeline [ didn't we technology. to being We We is We -- We the definitely discount call have want case, XXXX. recent up, for see currently because hit devices going RDL-based There's And and by a year. to we X.XD uncertainty ] strong on this because that of currently, we

last least, consumer then And the not but market.

We for that will on year Again, still. slightly XXXX, mature expect the contribute to that the more and full a uncertainty year. to run will current the flat program products significant up also

we're there quite So conservative look. for guiding the full a and take we year, conservative

but So breakout a segments. are all would I believe, market I pipeline all the all, solid there into opportunities, we in no have say, going project

Operator

Randy And question with from next Abrams your UBS. comes

Randy Abrams

and side? for first piece, $XXX special mentioned think, through maybe question, on on the I know that you actually the you're priorities My assembly go to allocation investment, or Vietnam. the outlook, where other some million. where module to you you said remaining have guiding conservative the I wanted between But CapEx I on touch given test, of And spend any power

Giel Rutten

Thanks the leave Megan that for question. to I'll this, to cover Randy. Yes.

Megan Faust

$XXX our million. target is Randy,

just to... million. think I $XXX I heard say you wanted I

Randy Abrams

right, That's yes. million, right. $XXX That's

Megan Faust

clarify to wanted just I that.

intending in the technology, XX% generation primary RDL for how for generations. intended technology dollars high-performance computing of high-performance on bridge and so And that that computing as the out, on spend similar are next those rolls we and capacity leading-edge of work We're the next market. is to so our And areas about capability.

The SiP second would the be area test. be would third then largest advanced and

on construction. we but about for So And we're allocating then because is that's our following elevated what a X% little our that R&D. intensity XX% historical is last more quality and XX% capability, to facility. than and about be, and that on would X% facilities capacity have And the bit Arizona

certain We our including investments for in quality, automation have earmarked factories.

for and to receive to to given the expect not the be that those guides. I in milestones. tied is into out would do to those is that and want of uncertain material tied point investments grants milestones so CHIPS certain incorporated some these receipt of funding We did is those not timing XXXX

Randy Abrams

Okay. on of Good a lot wanted the market I actually that. ask of commentary a is color few areas. in to on tariffs because there affecting

There's First, some if also automotive. pull-ins. consumer been talk like but Mexico, happening side, anything Canada, you're on seeing on any if given

it's affecting shipments. if one, that's So timing of

is bypass And some if on whether shift shifts. customer about any gets you're some There's to where tariff, seeing swing Second or Taiwan tariffs. assembly. the potential way could that's engagement talk

So swings curious on be any business for could shift, from geographic that your if there too. side,

Giel Rutten

impact there an still currently, me which Short inventory yet. supply because remarks significant we in not let Randy, still really little a is is bit in I we chain, don't defined make a currently elevated on impact. impact expect believe vague mean, term, the well is that I tariff situation about X-month the We mean that. the is a you inventory still Well, automotive, referred few tariffs. level. to that don't see the

any there on constraints impact don't I short-term expect prices. so driving And

to I Now difficult that, comment but hear didn't I specifics to cannot to here. we respect any -- with say Taiwan, it's

to in a came already that 'XX other December U.S. December respect stricter that products than certain restricted on on hand, are of I AI allowed of now rulemaking export saw and where exported or the referred exported latest 'XX. limited the impact we is the the in, into related the China be significantly were administration to On of with before, list products that products. to to what significant that's

extent, But companies a bit a the OSAT we although and I designers our the approved between could, work foundry side in that quite compliance. our -- feel companies to some benefit, there in uncertainty environment to environment, design there look Also, the still in that and on going approved see that and at of discrimination is OSAT, took forward. and work is

of and will the So Randy. uncertainty, be, a bit to specifics difficult say what

Operator

from comes Needham. Shi Your with next question Charles

Yu Shi

back Yes. I go to outlook. full to want the year

down is for are half. us really the start to inform half does half, right, require year? what to expecting X% a second would if us above-seasonal You growth you to into of the And Like little bit some in metric that can metric. It slow up have year-on-year. full of that what's we expectation the bit going probably seem help guys the maybe more that the particular you're half But year might flat, little use for given second -- that year, the QX seasonality? a here, normal above-seasonal growth the a

Giel Rutten

question. Yes, Charles, that's a good

me Megan details you to of level your more Let understanding. ask increase to give

Megan Faust

typical be for So in XX% would half. and Charles, growth or year second -- pattern XX% our a seasonal the for the in first half the

the lower within that communications and And going our we socket, so say that will it's half. regain confidence be the dynamics happening half to will would that and with second amplify market, our seasonal first given I where than half, muted first

flat want I the to year. given full we've do for low single-digit growth to the -- already

be to similar require those quite considerable. second to even rise half growth It that 'XX. as at models, the So to QX you're will that could were the looking levels

able you even magnified that, how would with see be be XX-XX so the the to could of And a year shape to pattern.

Yu Shi

high-end question regaining very smartphone your the helpful. customer. on a That's socket with Maybe

you think production that into year. of be QX, So in I sight you socket have maybe the like, to sounds line particular mentioned do for going this

little a particular of level regaining for are confident right into socket right, that terms in your heading socket? definitely And QX. last what's particular year's bit model? how will and QX into year, we go did of -- you this Because that well, now surprise So have confidence

Giel Rutten

and with There's we to to is I a before in we let's that and already that that the strict are model confidence the milestones defined. production bring and The this well production level the Yes. cooperation new customer mentioned are the, long-standing mass record for also a market. plan quarter, high. that with the Charles, say, identified for third preparation milestones that timing clear have mass technology track --

I get as pointing the as well confident with to 'XX and all end that was this ramp strategic respect the production this mass we before, a indications project are that are ready So as milestones mentioned for product. of customer. decision We're we execution QX for

Operator

next Tom Our with Davidson. comes from D.A. question Diffely

Thomas Diffely

Giel, the very package you your to to more or with little market. capacity the X.XD quickly you high-end up ought next-generation X.X I that wanted is curious, talk bit ramped just capacity a the existing that upgrade about to is completely at last require to moving backfill over and compute an type, new capability the you then old capacity. Obviously, look to years going clients? I'm or when your X.XD new

Giel Rutten

that for we a that's means We the used technology, RDL-based for Yes, it capacity. mentioned also XXXX a extent, that broader and let's wafer-based And call was, include high devices. our in, in fungible in Tom. next a in can question, we X.XD. to step technology last Actually, in did bridge good that technology earnings investments we be include that the sense next-generation and say, the in

devices that that fungible we the ramped a We and limited ramp enables we that in have us also volumes adjusted to technology. it's now our with technology, X.XD, that for volumes up in we currently RDL-based prove it parallel. So or

at see time, we Tom. point it how in I yes, think this So that's

Thomas Diffely

that's then? just overall when in the transform the not to you $XXX capacity, million it CapEx, increase at going newer So capacity look into

Giel Rutten

and how a domain seeing GPU mentioned into I That's data all it. we have to in the the broaden use beyond technology. We're project centers, a the see the, I centers. in would pipeline. before, AI CPUs like opportunity packaging networking say, we also goes broad main data in advanced data and that centers They

our the expands pipeline centers. data project into to that devices go not but is GPUs other into the only related So definitely

Thomas Diffely

raise the Megan, get specifics helpful. wondering is very -- tax if to And was 'XX. more what That's how about a behind some from you as 'XX follow-up, I could

Megan Faust

specific Sure, Two how adopted the to is jurisdictions. that related Tom. It's at Pillar being and

couple percentage So the to of we're our a year. tax for full effective rate anticipating impact

Operator

Steven our comes Fox question from next And Fox Advisors. with

Steven Fox

a some if the way markets program-specific to -- you're you're the a just all I just the provided, you edge about second happens of that on auto to wondering there's color PCs the devices, -- just state that was the back on of smartphones talk AI step broader markets, Then in auto assuming follow-up. you're had traditional serving. what the and more and I specifically half, from

Giel Rutten

we it the next that's very a over provide into then Steven, for answer. Well, question inference, training. easy will that opportunities. off but good And that devices. AI now We doesn't continue to question, make used that started to believe with devices an in and to were years go we It edge go opportunities

iOS the but also already. We with in also see in also applications Android applications PCs in smartphones the but in in recently phones being launched also the edge like devices phones

And capture will for the hardware all we upside upgrades drive an on side. general. So Ultimately, semiconductors that, believe an in and will network, including are hardware feeding our well that positioned we into of we years. with technology believe pipeline, our at-scale with drive upgrade opportunities base the side that of to partnership the that foundries on the these couple next in and that capacity our with over

Steven Fox

Fair enough.

Sorry, on give a expect just like the then to sense a can to would receiving you that. as you when didn't follow-up, mean start us spot put just And I you for start the quarters hurdles the to from Act exactly you CHIPS would sort expansion government? the grants, receive hitting just month U.S. into but many of how capacity back like the funding not

Megan Faust

milestones attached during are to the certain project. Steven, so with grants respect outlined, how to they're the

be a able into So we'll move as our as we XXXX, better start give that. feel construction we and for you to

X flow be the about shared important in a that's $X total perspective. to well choppy We've what's where years. as that between timing be, keep billion. CHIPS investment as what that, in in credits combined, is over expected cash think grant could investment X project from to how for to $XXX is could of comes that about reduction. that And bit mind our tax be I a million that is The it's together and

that make as information. sure more update we So soon have we'll as to

Operator

Our with Markets. next question comes KeyBanc from Steve Barger Capital

Steve Barger

quarters be just is inventory. that seems there demand or and all seem automotive strange inventory infotainment X lines electrification levels? across with that Giel, or cannibalized? getting really chasing this that's or any down Or ADAS declines, of Are or it product desourced to customers

Giel Rutten

I portfolio, and in row, we that's decline the strength remarks, -- X it If a still is the to Yes, declining market. mean there I in we prepared and portfolio. take that an if packaging if to advanced we even -- question, mentioned Steve. quarters the look a we mainstream overall good up year-on-year. the at in take see That's industrial mostly the stable automotive my more

we believe ADAS, to inventory a continues is on prominent the level in-car networking growth the also less And mainstream than infotainment, products. be that area. So

I X inventory. products, in excess our be top that mode of mainstream the would replenished. think I the if a XXXX, that, automotive see customers, stable. reporting go inventory at that gets would And look in decline we that into And be they believe half, -- after first a the gradual latest during would they where

little customers inventory inventory a that back they COVID, customer, lean the very while overshooting to are product go after into undershooting bit we currently, automotive because Now were end a the delivering level. probably

turn. And but will expect we so -- situation that that,

bring, on main products, the that also volume running, at but So into mainstream significant industrial step in mostly and optimism our it's see vague there base. will microcontrollers 'XX back, XXXX. automotive products, also take certainly that what on frame go although bond, still we is lead longer. And and upsides keep applications, wire customer that and inventory much is will in on still less, we are declines the advanced products, business The

Steve Barger

now? us to flat is more Can percentage is products what versus tell automotive stuff challenged? percentage you what that's advanced Or of up the

Giel Rutten

Well, quicker we report but say product it, generally advanced don't mainstream would is more up although ramping than is product than XX%, the mainstream. still I much

products was, our rough be, it XX, XX XX let's a advanced XX, that So as would portfolio. with say, what to estimate, and mainstream being

Steve Barger

that. imagine has Got the of was test it. know a become business, a part of quick more I just and follow-up. I then your driver X.XD important And

outlook utilization where business Or rates your increasing? has intensity test tester other areas how you the ramp are of for is changed? So seeing

Giel Rutten

rate, case also testing. area We question. have also very products the but we we our assembling clearly the for test are take as opportunity. communication automotive. If Good then see Yes. that an test high That's we a of so business,

that. areas, some test but have For in investing we less definitely we're rates, other

We getting believe a houses being concentration test And chain is that too the there that be is a that we're et high, high considered supply tests out there, of feedback that's currently, to in cetera. maybe the Taiwan a with risk. of

and can high that location to say, in we're So chain supply expanding an there's capacity test specifically test a where accommodate a working actively concentration compute find, let's Taiwan.

in test compute So yes, that important. We're is segment. prominently working expanding on prominently and most the -- then actively

Operator

I'm over closing the turn at this like time, questions. call remarks. would And to showing to back further Giel no for I

Giel Rutten

Thank you. Thanks for questions. all the

computing Let advanced and record me for and in Year 'XX our We automotive recap weakness for set key prolonged the the SiP. end revenue except messages. the met expectations, industrial markets.

by generation driven half of second stronger-than-seasonal phones. a expect IOS we XXXX, content year next in the full recovery For

to for call. our industry the invest you joining partnerships technology leadership, with footprint global We expanding and leaders. our continue Thank in

Operator

gentlemen, concludes Thank and today's this conference call. you. Ladies

You may disconnect.

Amkor Technology (AMKR) 10 Feb 252024 Q4 Earnings call transcript