艾克爾 (AMKR) 2022 Q2 法說會逐字稿

Good day, ladies and gentlemen. And welcome to the Amkor Technology Second Quarter 2022 Earnings Conference Call. My name is Diego, and I will be your conference facilitator today. At this time, all participants are in a listen-only mode. After the speakers' remarks, we will conduct the question-and-answer session. 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. Jue, please go ahead.

女士們，先生們，美好的一天。歡迎參加 Amkor Technology 2022 年第二季度收益電話會議。我的名字是 Diego，今天我將成為您的會議主持人。此時，所有參與者都處於只聽模式。講者致辭後，我們將進行問答環節。提醒一下，本次會議正在錄製中。我現在想將電話轉給投資者關係主管 Jennifer Jue。珏小姐，請繼續。

Thank you, Operator. Good afternoon, everyone, and thank you for joining us for Amkor's Second Quarter 2022 Earnings Conference Call. Joining me today are Giel Rutten, our Chief Executive Officer, and Megan Faust, our Chief Financial Officer. Our earnings press release was filed with the SEC this afternoon and is available on the Investor Relations page of our website, along with the presentation slides that accompany today's call.

謝謝你，接線員。大家下午好，感謝您參加 Amkor 的 2022 年第二季度收益電話會議。今天加入我的還有我們的首席執行官 Giel Rutten 和我們的首席財務官 Megan Faust。我們的收益新聞稿已於今天下午提交給美國證券交易委員會，可在我們網站的投資者關係頁面以及今天電話會議隨附的演示幻燈片上找到。

During this presentation, we will use non-GAAP financial measures, and you can find the reconciliation to the U.S. GAAP equivalent on our website. We will make forward-looking statements about our expectations for Amkor's future performance based on the environment as we currently see it. Of course, actual results could differ. Please refer to our press release and other SEC filings for information on risk factors, uncertainties and exceptions that could cause actual results to differ materially from these expectations. Please note that the financial results discussed today are preliminary, and final data will be included in our Form 10-Q. And now I would like to turn the call over to Giel.

在本次演示中，我們將使用非 GAAP 財務指標，您可以在我們的網站上找到與美國 GAAP 等值的對賬。我們將根據我們目前所看到的環境，就我們對 Amkor 未來業績的預期做出前瞻性陳述。當然，實際結果可能會有所不同。有關可能導致實際結果與這些預期存在重大差異的風險因素、不確定性和例外情況的信息，請參閱我們的新聞稿和其他 SEC 文件。請注意，今天討論的財務結果是初步的，最終數據將包含在我們的 10-Q 表中。現在我想把電話轉給吉爾。

Thanks, Jennifer. Good afternoon, everyone, and thank you for joining the call today. Amkor delivered record second quarter revenue of $1.5 billion and EPS of $0.51. Demand for advanced packaging remained strong and drove our revenue in the automotive and industrial market to 16% year-on-year growth and a new record. Revenue increased 14% year-on-year in the first half, and advanced packaging grew 18% despite the COVD-19 lockdown in our Shanghai factories.

謝謝，詹妮弗。大家下午好，感謝您今天加入電話會議。 Amkor 第二季度實現創紀錄的 15 億美元收入和 0.51 美元的每股收益。對先進封裝的需求依然強勁，推動我們在汽車和工業市場的收入同比增長 16% 並創下新紀錄。上半年收入同比增長 14%，儘管我們上海工廠實施了 COVD-19 封鎖，但先進封裝仍增長了 18%。

While the industry is facing macroeconomic headwinds and market forecasts have weakened in some areas, we continue to see robust demand for our services, notably for advanced packaging. Amkor's strategic focus and leadership position in advanced packaging enable us to leverage the growth catalysts in 5G premium smartphones, automotive electronics, high-performance computing and IoT.

儘管該行業面臨宏觀經濟逆風，並且某些領域的市場預測已經減弱，但我們繼續看到對我們服務的強勁需求，尤其是對先進封裝的需求。 Amkor 在先進封裝領域的戰略重點和領導地位使我們能夠利用 5G 高端智能手機、汽車電子、高性能計算和物聯網的增長催化劑。

Now let me review the dynamics in our end markets. In the first half of this year, our communications business grew 10% compared to the first half of last year. Although overall forecasts for smartphone units have weakened to a mid-single-digit year-on-year decline, 5G unit volume is expected to grow and reach an estimated 50% penetration this year, up from around 35% in 2021. Semiconductor content for premium tier 5G phones continues to increase. And with our leading position in this market, we expect further growth through this transition to 5G. The density and size advantages of our proven package on package technology for high-end processes and modems and the SiP technology for integration of RF, sensors and display components positions us well to capture this growth.

現在讓我回顧一下我們終端市場的動態。今年上半年，我們的通信業務比去年上半年增長了10%。儘管對智能手機銷量的整體預測已減弱至中個位數的同比下降，但 5G 銷量預計將增長，今年預計將達到 50% 的滲透率，高於 2021 年的 35% 左右。高端 5G 手機繼續增加。憑藉我們在這個市場的領先地位，我們預計通過向 5G 的過渡會進一步增長。我們經過驗證的用於高端工藝和調製解調器的封裝技術的密度和尺寸優勢以及用於集成射頻、傳感器和顯示組件的 SiP 技術使我們能夠很好地抓住這一增長。

Solid performance in the automotive and industrial market drove first half growth of 16% versus last year. Although material constraints throughout the automotive supply chain persist, we observed improvement in lead times and anticipate a more balanced supply chain by the end of this year. We expect the automotive semiconductor market to outgrow the overall industry. Average semiconductor content per car is expected to increase 50% by 2025 from around $500 in 2020, up to $750 per car in 2025. Market forecast shows mid-teens CAGRs over the next several years, driven by adoption of ADAS, electrification, infotainment and telematics. These new and expanding features require the use of advanced packaging to obtain the required performance, quality and reliability needed in the automotive industry. As the leading automotive OSAT with a global manufacturing footprint and advanced packaging solutions throughout the vehicle, we are well positioned to profit from this market growth.

汽車和工業市場的穩健表現推動上半年同比增長 16%。儘管整個汽車供應鏈的材料限制仍然存在，但我們觀察到交貨時間有所改善，並預計到今年年底供應鏈將更加平衡。我們預計汽車半導體市場的增長將超過整個行業。到 2025 年，每輛汽車的平均半導體含量預計將從 2020 年的 500 美元左右增長 50%，到 2025 年達到每輛汽車 750 美元。市場預測顯示，在採用 ADAS、電氣化、信息娛樂和遠程信息處理。這些新的和擴展的功能需要使用先進的封裝來獲得汽車行業所需的性能、質量和可靠性。作為領先的汽車 OSAT，在全球製造足跡和整個車輛的先進封裝解決方案，我們有能力從這一市場增長中獲利。

Amkor's 40-plus year track record as a trusted partner for leading automotive customers has built a solid foundation to enable technology innovations and to support the reliable automotive supply chain.

Amkor 作為領先汽車客戶值得信賴的合作夥伴已有 40 多年的歷史，為實現技術創新和支持可靠的汽車供應鏈奠定了堅實的基礎。

Continued strong momentum in the computing market drove revenue for the first half up by 27% compared to the first half of 2021. This robust growth was driven by datacenters, infrastructure and PCs. In datacenters, the introduction of AI is driving investments in high-performance computing utilizing advanced packaging technology. We see similar technology requirements in wire and wireless infrastructure markets, notably in support of 5G infrastructure. Although the PC market is softening, the trend to ARM-based PC architectures opens new business opportunities for Amkor. Besides the technology shift in the PC market, we observed a continued trend towards an outsourced semiconductor supply chain with the big data producing companies taking an active role in developing key semiconductors for hyperscale datacenters. These companies tend to utilize a fully outsourced supply chain and are partnering with foundries and OSATs like Amkor to accelerate innovation.

計算市場的持續強勁勢頭推動上半年收入比 2021 年上半年增長 27%。這種強勁增長是由數據中心、基礎設施和個人電腦推動的。在數據中心，人工智能的引入正在推動對利用先進封裝技術的高性能計算的投資。我們在有線和無線基礎設施市場看到了類似的技術要求，尤其是在支持 5G 基礎設施方面。儘管 PC 市場正在走軟，但基於 ARM 的 PC 架構的趨勢為 Amkor 帶來了新的商機。除了個人電腦市場的技術轉變，我們觀察到外包半導體供應鏈的持續趨勢，大數據生產公司在為超大規模數據中心開發關鍵半導體方面發揮著積極作用。這些公司傾向於利用完全外包的供應鏈，並與 Amkor 等代工廠和 OSAT 合作以加速創新。

With our broad advanced packaging portfolio and established relationships with lead customers and foundries, we are well positioned to capitalize on opportunities in these growing computing applications, and we continue to invest in advanced technology and manufacturing scale for this market.

憑藉我們廣泛的先進封裝產品組合以及與主要客戶和代工廠建立的關係，我們有能力利用這些不斷增長的計算應用程序中的機會，我們將繼續投資於該市場的先進技術和製造規模。

Our Consumer business increased 8% in the first half, supported by strength in traditional consumer products and a broad portfolio in IoT wearables. Our advanced SiP assembly and test platform offers a complete turnkey solution for the IT wearable market by enabling high levels of integration in a single SiP module with small form factor. IoT wearables continue to be an important driver for growth, although we expect that this emerging product category is more prone to quarterly variability due to supply constraints and varying product life cycles. With an advancing digital economy and increased proliferation of connected wearable devices, Amkor has the technology, scale and expertise to support these trends.

上半年，我們的消費業務增長了 8%，這得益於傳統消費產品的強勢和物聯網可穿戴設備的廣泛組合。我們先進的 SiP 組裝和測試平台通過在具有小尺寸的單個 SiP 模塊中實現高水平集成，為 IT 可穿戴市場提供完整的交鑰匙解決方案。物聯網可穿戴設備仍然是增長的重要驅動力，儘管我們預計這一新興產品類別由於供應限制和不同的產品生命週期更容易出現季度變化。隨著數字經濟的發展和互聯可穿戴設備的日益普及，Amkor 擁有支持這些趨勢的技術、規模和專業知識。

We continue to invest in our test business to broaden the scope, scale and capability of our test services. With increasing complexity and cost of our assembled products, multistage testing becomes an important part of our test portfolio. Amkor offers customers a broad range of test solutions from wafer probe and final test to system level test to ensure quality and reliability of the final product. Our ability to support full turnkey services from wafer fab to final product shipment reduces cycle time and customer resources to manage each individual service.

我們繼續投資於我們的測試業務，以擴大我們測試服務的範圍、規模和能力。隨著我們組裝產品的複雜性和成本的增加，多階段測試成為我們測試組合的重要組成部分。 Amkor 為客戶提供範圍廣泛的測試解決方案，從晶圓探針和最終測試到系統級測試，以確保最終產品的質量和可靠性。我們支持從晶圓廠到最終產品出貨的全套交鑰匙服務的能力減少了管理每項服務的周期時間和客戶資源。

Our global manufacturing organization continued to demonstrate Amkor's commitment to operational excellence in support of our customers. Our Quality First program is widely deployed in the organization and close collaboration with our supply chain partners further improved supply reliability. In the supply chain, we observed improvements in lead times of substrates, lead frames and components, and we expect a more balanced supply chain towards the end of the year.

我們的全球製造組織繼續證明 Amkor 致力於卓越運營以支持我們的客戶。我們的質量第一計劃在組織中得到廣泛部署，並且與我們的供應鏈合作夥伴的密切合作進一步提高了供應可靠性。在供應鏈中，我們觀察到基板、引線框架和組件的交貨時間有所改善，我們預計到年底供應鏈將更加平衡。

The mandated COVID-19 lockdown of our Shanghai factory required the utmost in flexibility of the team to return to normal output levels in the second quarter. Our team was focused on supporting our people and keeping them safe while closely cooperating with local government and customers to minimize the impact.

我們上海工廠的強制性 COVID-19 封鎖要求團隊具有最大的靈活性，以便在第二季度恢復正常的產量水平。我們的團隊專注於支持我們的員工並確保他們的安全，同時與當地政府和客戶密切合作，以盡量減少影響。

Now let me turn to our third quarter revenue outlook. Although market forecasts have weakened in some areas, we are expecting a strong third quarter with revenue of $1.93 billion at the midpoint of our guidance. This would represent a sequential increase of 28% and a year-on-year increase of 15%. We expect solid demand across all end markets, especially driven by new product ramps in support of 5G premium tier phone models and the continued strength in computing, automotive and consumer markets. Megan will now provide more detailed financial information.

現在讓我談談我們的第三季度收入展望。儘管某些領域的市場預測已經減弱，但我們預計第三季度將強勁，在我們指導的中點收入為 19.3 億美元。這意味著環比增長 28%，同比增長 15%。我們預計所有終端市場的需求都將保持強勁，尤其是在支持 5G 高端手機型號的新產品數量增加以及計算、汽車和消費市場持續強勁的推動下。梅根現在將提供更詳細的財務信息。

Thank you, Giel, and good afternoon, everyone. Amkor delivered strong financial results with record second quarter revenue of $1.5 billion and solid bottom line EPS of $0.51. Factory utilization, excluding Shanghai, remained high with revenue exceeding historical seasonal levels. First half revenue increased 14% versus first half 2021, a strong start to the year. All of our end markets are also showing robust first half growth, with most growing double digits compared to the prior year.

謝謝你，吉爾，大家下午好。 Amkor 實現了強勁的財務業績，第二季度收入達到創紀錄的 15 億美元，每股收益為 0.51 美元。除上海外，工廠利用率保持高位，收入超過歷史季節性水平。與 2021 年上半年相比，上半年收入增長了 14%，這是今年的強勁開局。我們所有的終端市場上半年也都顯示出強勁的增長，與去年相比，大多數增長達到兩位數。

Our technology leadership position and focused execution drove first half revenue for advanced products up 18%, representing approximately 70% of our business. Our Shanghai factory returned to normal output levels late in the second half of the quarter. Regulatory approval to resume production was received later than expected, and therefore, the revenue impact for the second quarter was more than we estimated in May. We worked closely with our customers to mitigate the impact. In addition, upside demand, notably for advanced SiP supporting the communications and consumer end markets, resulted in Q2 revenue within 1% of our midpoint.

我們的技術領先地位和專注的執行推動先進產品上半年收入增長 18%，約占我們業務的 70%。我們的上海工廠在本季度後半段恢復了正常的產量水平。監管部門批准恢復生產的時間晚於預期，因此第二季度的收入影響超過了我們 5 月份的估計。我們與客戶密切合作以減輕影響。此外，上行需求，特別是對支持通信和消費終端市場的高級 SiP 的需求，導致第二季度收入在我們中點的 1% 以內。

Gross margin for the second quarter was 16.6%, primarily due to underutilization of our Shanghai factory and related incremental costs. Operating expenses for the quarter were less than expected at $106 million, benefiting from lower labor costs, favorable foreign currency movements and timing of new product introductions. Operating income margin for the quarter was 9.5%. Net income for the quarter was $125 million, resulting in EPS of $0.51. First half EPS of $1.20 is 20% higher than first half of last year.

第二季度的毛利率為 16.6%，主要是由於我們上海工廠的利用率不足和相關的增量成本。本季度的運營支出為 1.06 億美元，低於預期，這得益於較低的勞動力成本、有利的外匯走勢和新產品推出的時機。本季度的營業利潤率為 9.5%。本季度的淨收入為 1.25 億美元，每股收益為 0.51 美元。上半年每股收益為 1.20 美元，比去年上半年高出 20%。

Q2 EBITDA was $302 million, and EBITDA margin was 20%. Our balance sheet is solid. We ended the quarter with $1.1 billion of cash and short-term investments and total liquidity of $1.8 billion. Our total debt as of the end of the second quarter is $1.1 billion, and our debt-to-EBITDA ratio is 0.8x.

第二季度 EBITDA 為 3.02 億美元，EBITDA 利潤率為 20%。我們的資產負債表很穩固。我們以 11 億美元的現金和短期投資以及 18 億美元的總流動性結束本季度。截至第二季度末，我們的總債務為 11 億美元，我們的債務與 EBITDA 比率為 0.8 倍。

Moving on to our third quarter outlook, we see continued solid demand into the third quarter, specifically in the communications market due to the launch of premium tier smartphones. We are expecting Q3 revenue between $1.88 billion and $1.98 billion. This represents a 28% sequential increase and a 15% year-over-year increase at the midpoint of guidance. Gross margin is expected to be between 19% and 21%, demonstrating the leverage in the financial model and an ability to execute a quick return to strong profitability. We expect Q3 operating expenses of around $110 million. We expect our full year effective tax rate to be around 15%. Q3 net income is expected to be between $200 million and $250 million, resulting in EPS of $0.82 to $1.02.

繼續我們的第三季度展望，我們看到第三季度的需求持續強勁，特別是在通信市場，因為高端智能手機的推出。我們預計第三季度收入在 18.8 億美元至 19.8 億美元之間。在指導的中點，這代表了 28% 的連續增長和 15% 的同比增長。毛利率預計在 19% 至 21% 之間，顯示了財務模型的槓桿作用以及快速恢復強勁盈利能力的能力。我們預計第三季度的運營費用約為 1.1 億美元。我們預計全年有效稅率約為 15%。第三季度淨收入預計在 2 億美元至 2.5 億美元之間，每股收益為 0.82 美元至 1.02 美元。

Our forecast for capital expenditures for the year remains at $950 million to support broad-based long-term demand and the expansion of our global factory footprint to Vietnam. Full year 2022 is tracking to be another record year with double-digit growth expected for revenue, operating income and EPS. All end markets are expected to set new annual records. We are monitoring macroeconomic and industry dynamics and the potential impact on near-term demand in the overall semi industry. We do not see a change in the secular trends and growth catalysts for advanced packaging, and we remain confident in our long-term outlook. Amkor holds a leading position in advanced packaging, and we expect that strategic focus to continue to drive long-term growth. With that, we will now open the call up for your questions. Operator?

我們對今年資本支出的預測仍為 9.5 億美元，以支持廣泛的長期需求以及將我們的全球工廠足跡擴展到越南。 2022 年全年有望成為另一個創紀錄的年份，預計收入、營業收入和每股收益將實現兩位數增長。預計所有終端市場都將創下新的年度記錄。我們正在監測宏觀經濟和行業動態以及對整個半導體行業近期需求的潛在影響。我們沒有看到先進封裝的長期趨勢和增長催化劑發生變化，我們對我們的長期前景仍然充滿信心。 Amkor 在先進封裝領域處於領先地位，我們預計這一戰略重點將繼續推動長期增長。有了這個，我們現在將打開您的問題的電話。操作員？

Thank you. (Operator Instructions) Our first question comes from Randy Abrams with Credit Suisse.

謝謝你。 （操作員說明）我們的第一個問題來自瑞士信貸的 Randy Abrams。

The first question I just wanted to ask on the Shanghai operations, which resumed a bit later than expected. If you could, talk about how much impact in second quarter. And then for the shift, do you expect any or all of that to shift into third quarter, or some could continue into fourth quarter. If you could, discuss the timing, how that impacted the flow of revenue.

我只是想問的第一個問題是關於上海業務的，它恢復的時間比預期的要晚一些。如果可以的話，談談第二季度的影響。然後對於轉變，您是否預計其中任何或全部會轉移到第三季度，或者有些可能會持續到第四季度。如果可以，請討論時間安排，以及這如何影響收入的流動。

Hi, Randy. Let me start answering that question. For the Shanghai operation, Megan already indicated that the impact was slightly higher than we expected. And in our guidance, we indicated a number. We don't want to go further in specifics here when it comes to the recovery of that business. Part of that will be recovered in the third quarter. Part of it we recovered by utilizing our global manufacturing footprint. We have a strong partnership with our customers that we support out of the factory in Shanghai. We have long-term agreements in place, so we expect that the majority of that business will be recovered later in the year.

嗨，蘭迪。讓我開始回答這個問題。對於上海業務，梅根已經表示影響略高於我們的預期。在我們的指導中，我們指出了一個數字。當涉及到該業務的恢復時，我們不想在這裡進一步詳細說明。其中一部分將在第三季度收回。我們通過利用我們的全球製造足跡恢復了其中的一部分。我們與客戶建立了牢固的合作夥伴關係，我們在上海的工廠提供支持。我們簽訂了長期協議，因此我們預計大部分業務將在今年晚些時候恢復。

Great. Yes. It sounds like it's mostly third, but some of it could continue into fourth quarter. Okay. If I could ask on the -- you have the foundries and some of the backend companies are indicating some risk of a correction into fourth quarter/first half. It sounds like your markets are pretty robust, but are you anticipating factoring in or expecting some slowdown? Or do you see the strength continuing to yearend? Maybe an initial view if you think first quarter gets back to kind of the normal seasonal trend just factoring some of the macro.

偉大的。是的。聽起來它主要是第三季度，但其中一些可能會持續到第四季度。好的。如果我可以問一下-您有代工廠，並且一些後端公司表示存在修正到第四季度/上半年的風險。聽起來您的市場相當強勁，但您是否預計會考慮或預計會出現放緩？或者你是否看到實力持續到年底？如果您認為第一季度回到正常的季節性趨勢，只是考慮到一些宏觀因素，也許是一個初步的看法。

Well, Randy, guiding into the first quarter will be very difficult. That's what we normally don't do. With respect to this year, we expect a strong second half of this year. As indicated, third quarter will be strong and also, we expect a solid fourth quarter. We see macroeconomic headwinds evolving into the first half of next year, although we also see still let's say a balanced, a more balanced supply chain. Than the key growth drivers in the markets that we're supporting, be it 5G, be it automotive electronics, high-performance computing and IoT, in our view, the fundamentals will continue to stay in place. There may be some corrections in some segments. But overall, I believe the foundation for the semiconductor industry and the growth drivers are still very strong also going into next year.

好吧，蘭迪，指導進入第一季度將非常困難。這是我們通常不會做的事情。就今年而言，我們預計今年下半年將表現強勁。如前所述，第三季度將強勁，而且我們預計第四季度將穩健。我們看到宏觀經濟逆風演變到明年上半年，儘管我們也看到仍然可以說是一個平衡的、更平衡的供應鏈。在我們看來，除了我們支持的市場的主要增長動力，無論是 5G、汽車電子、高性能計算和物聯網，基本面將繼續保持不變。某些部分可能會有一些更正。但總體而言，我相信明年半導體行業的基礎和增長動力仍然非常強勁。

Good. And for the -- like you've seen a strong mix towards advanced packaging and highlighted that as a driver. For the mainstream business, how have you seen the wire bonding? I think traditionally, you've had more of an auto industrial footprint there versus some of the OSATs that are a little more leveraged to consumer and see more correction. How do you see your utilization holding in? And are you seeing any rising level of competition from some of your peers facing a bit more underutilization?

好的。對於 - 就像您已經看到先進封裝的強大組合併強調它作為驅動力一樣。對於主流業務，您是如何看待打線的？我認為傳統上，與一些更受消費者利用並看到更多修正的 OSAT 相比，您在那裡擁有更多的汽車工業足跡。您如何看待您的利用率？您是否看到一些面臨更多未充分利用的同行競爭加劇？

Yes. For our wire bond and lead frame business, we operate our factories at high utilization. That will continue for the major part of the year. Same thing as for our advanced packaging. We have long-term agreements in place with our customers. We have a strong position in the automotive domain. On the wire bond business, we see strength certainly in the automotive wire bond part. Automotive microcontrollers are a strong driver in that growth. Some pockets of inventory corrections, specifically in Japan, but we expect going into the fourth quarter and even further going into next year, we see strength in that business. Accelerated competition when there is open demand, the segments that we are supporting for the wire bond and lead frame business, it is not so easy for customers to switch. And we have, with our long-term agreements, we believe that we are well positioned there. It is not -- we don't cater to the commodity part of this business, so we don't believe that there is a risk there.

是的。對於我們的引線鍵合和引線框架業務，我們以高利用率運營我們的工廠。這將在今年的大部分時間裡持續下去。與我們的高級封裝相同。我們與客戶簽訂了長期協議。我們在汽車領域擁有強大的地位。在引線鍵合業務方面，我們肯定在汽車引線鍵合部分看到了實力。汽車微控制器是這一增長的強大推動力。一些庫存調整，特別是在日本，但我們預計進入第四季度，甚至進一步進入明年，我們看到該業務的實力。在需求開放的情況下競爭加速，我們支持的引線鍵合和引線框架業務的細分市場，客戶轉換並不容易。而且，通過我們的長期協議，我們相信我們在這方面處於有利地位。不是——我們不迎合這項業務的商品部分，所以我們不認為那裡存在風險。

Right. I just had 2 other questions I wanted to ask. One on the gross margin might be more for Megan. It looked like second quarter materials, like the variable material costs, went up a few points as a percent of sales. Was that mix impact more SiP, or are there other factors like higher material costs, higher substrate costs?

正確的。我還有另外 2 個問題想問。對梅根來說，毛利率可能更高。看起來第二季度的材料（如可變材料成本）佔銷售額的百分比上升了幾個百分點。這種組合會影響更多的 SiP，還是有其他因素，例如更高的材料成本、更高的基板成本？

Randy. Megan can answer that.

蘭迪。梅根可以回答這個問題。

Yes. Randy, with respect to the material content increasing in the second quarter, really 2 factors. With the Shanghai impact, that factory tended to have a lower material content than our average and so that contributed to part of it. And the other is, as you've mentioned, the increase in advanced SiP for the quarter. The increase is not related to specifically increasing material cost as we are able to pass that through to our customers.

是的。蘭迪，就第二季度增加的物質含量而言，確實有兩個因素。由於上海的影響，該工廠的材料含量往往低於我們的平均水平，因此部分原因。正如您所提到的，另一個是本季度高級 SiP 的增長。增加與具體增加材料成本無關，因為我們能夠將其傳遞給我們的客戶。

And a follow-up on that, with balanced supply chain, does that include the high-end substrate? There's been talk of multiyear shortage in some of the high-end, but does it look like with some of the shifts in the PC market by next year, and some of the efforts you're making, you'll be kind of in balance? Or do you see constraints there continuing on?

以及在平衡供應鏈的情況下的後續行動，是否包括高端基板？有人說一些高端產品會出現多年短缺，但看起來明年 PC 市場會發生一些變化，以及你正在做出的一些努力，你會有點平衡?還是您看到那裡的限制仍在繼續？

Yes. Specifically in the high-end substrates, materials, that's a good point, Randy. In the ABF substrates, we see continued shortages going into next year. That's mostly for the computing markets and some segments of the automotive markets. Although we see some improvements in the rest of the supply chain for the more lower-end substrate, but ABF substrates will be in short supply, although more capacity comes online. We also see that some of the capacity, specifically in the PC market, can be redirected in other segments. With some corrections in the PC market, that would bring some relief in other areas.

是的。特別是在高端基板、材料方面，這很好，蘭迪。在 ABF 基板中，我們看到明年將持續短缺。這主要用於計算市場和汽車市場的某些部分。儘管我們看到供應鏈的其餘部分對更低端的基板有所改善，但 ABF 基板將供不應求，儘管更多產能上線。我們還看到，一些產能，特別是在個人電腦市場，可以重新定向到其他領域。隨著個人電腦市場的一些調整，這將給其他領域帶來一些緩解。

Great. The last question I wanted to ask on CHIPS Act, with Congress passing, but maybe the initial scenario, how you're thinking about expansion. You've announced some interest in U.S. capacity. And also, for the financials, how it could affect both the CapEx from an offset in R&D -- or sorry, the tax credits, like if it could benefit the tax rate from some of the investments?

偉大的。我想問的關於 CHIPS 法案的最後一個問題是國會通過，但可能是最初的情景，你是如何考慮擴張的。你已經宣布對美國的產能感興趣。此外，對於財務，它如何影響資本支出從研發的抵消 - 或者對不起，稅收抵免，比如它是否可以從一些投資中受益？

Let me share -- open up the share answer here and then maybe Megan can give a little bit more details on the tax incentives. Well first of all, as a general statement, Randy, we're very happy that the CHIPS Act was approved. We see this as an important milestone of supporting the U.S. supply chain. Amkor is uniquely positioned to support that. And already for a while, we're looking what is the best scenario to engage in a more expanding U.S. supply chain. We're working on scenarios with different partners and customers, direct customers in the supply chain to see what is the best way to support the local supply chain. We see this as an opportunity. How the financials exactly work out, that is still to be shared, to be decided. Megan, can you take the tax incentive part?

讓我分享一下——在這裡打開分享答案，然後也許梅根可以提供更多關於稅收優惠的細節。首先，作為一般性聲明，Randy，我們很高興 CHIPS 法案獲得批准。我們認為這是支持美國供應鏈的一個重要里程碑。 Amkor 具有獨特的優勢來支持這一點。已經有一段時間了，我們正在尋找參與更擴張的美國供應鏈的最佳方案。我們正在與不同的合作夥伴和客戶一起研究場景，直接在供應鏈中的客戶看看什麼是支持本地供應鏈的最佳方式。我們認為這是一個機會。財務狀況究竟如何運作，仍有待分享，待決定。梅根，你能參加稅收優惠嗎？

Yes, sure. Randy, it's just too early to tell what that tax incentive that's included, how that would impact Amkor specifically. We're monitoring that, and to the extent we have updates, we'll include that in our upcoming guidance.

是的，當然。 Randy，現在說稅收激勵措施包括哪些內容以及這將如何具體影響 Amkor 還為時過早。我們正在監控這一點，並且在我們有更新的範圍內，我們將把它包含在我們即將發布的指南中。

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

我們的下一個問題來自 D.A. 的 Tom Diffely。戴維森。

First question is revolving around capital spending. It sounds like you're on plan here for $950 million this year. Curious what the linearity is of adding the capacity through this year and when you see the impact of this on the balance sheet?

第一個問題圍繞著資本支出。聽起來你今年的計劃是 9.5 億美元。好奇今年增加產能的線性關係是什麼，以及何時看到這對資產負債表的影響？

Okay. Let me start kicking this off. Yes, I think our CapEx plan, Tom -- by the way, good afternoon, is still targeted at $950 million for the year. You have to keep in mind that $100 million of that $950 million is geared to our new Vietnam facility. We see a strong ramp in the second half of the year, so a large part of that capacity that was allocated to equipment expansion is already coming on board for the ramp in the third quarter and the fourth quarter. And that would hit the balance sheet, and I don't know the accounting details here, but Megan can probably add to that, probably in the second half of this year.

好的。讓我開始吧。是的，我認為我們的資本支出計劃，湯姆——順便說一下，下午好，今年的目標仍然是 9.5 億美元。您必須記住，這 9.5 億美元中有 1 億美元用於我們在越南的新工廠。我們在下半年看到了強勁的增長，因此分配給設備擴張的大部分產能已經在第三季度和第四季度的增長中加入。這會影響資產負債表，我不知道這裡的會計細節，但梅根可能會增加這一點，可能在今年下半年。

Yes. Sure, Tom. I can add to that. I would say Q3 is the peak adding to the balance sheet as far as supporting the Q3 surge. But as Giel mentioned, it is going to be second half weighted, specifically as it relates to our Vietnam activities. Those are going to be mainly concentrated in the fourth quarter. And just as a reminder, Tom, Vietnam won't actually, I mean that won't start depreciating until we complete those activities, which we're expecting to begin high-volume late in '23.

是的。當然，湯姆。我可以補充一下。我想說，就支持第三季度的飆升而言，第三季度是資產負債表的峰值。但正如 Giel 所說，它將在下半年得到加權，特別是因為它與我們的越南活動有關。這些將主要集中在第四季度。提醒一下，湯姆，越南實際上不會，我的意思是在我們完成這些活動之前不會開始貶值，我們預計這些活動將在 23 年後期開始大批量生產。

Okay. Great. Very helpful. And just in general, is there a rule of thumb where $1 of CapEx gives you a $1 per year revenue or $0.50 per year revenue? Or how do you view capital spending on a holistic basis?

好的。偉大的。非常有幫助。總的來說，有沒有一個經驗法則，即 1 美元的資本支出可以為您帶來每年 1 美元的收入或每年 0.50 美元的收入？或者您如何從整體上看待資本支出？

Megan, can you answer that question?

梅根，你能回答這個問題嗎？

Yes, Tom, no specific rule of thumb at this point. I think it's tricky given the different dynamics, specifically with material content changes, to be able to have kind of a guideline for the capital spend.

是的，湯姆，目前還沒有具體的經驗法則。我認為考慮到不同的動態，特別是物質內容的變化，要能夠為資本支出製定一種指導方針是很棘手的。

Okay. And then final capital spending question, how fungible is the capacity between the different end markets?

好的。然後是最終的資本支出問題，不同終端市場之間的容量可替代性如何？

Tom, let me try to answer that question. Fungibility for Amkor is very important and we invested significantly over the last couple of years to assure that the capacity that we install is fungible. Now not everything is of course fungible. If we take test and test equipment, which is a large part of our investment, generally we buy industry standard platforms, and they are fungible between business with customers. When it comes to assembly equipment, of course in the specific technology areas, the capacity is fungible. If we talk about SiP and SiP lines, these equipment are fungible. If we talk about flip chip, these are fungible, and wafer-level packaging is also fungible across markets. There are generally some dedications with respect to technology areas.

湯姆，讓我試著回答這個問題。 Amkor 的可替代性非常重要，我們在過去幾年中進行了大量投資，以確保我們安裝的容量是可替代的。當然，並非所有東西都是可替代的。如果我們拿測試和測試設備，這是我們投資的很大一部分，一般我們購買行業標準的平台，它們在與客戶的業務之間是可互換的。在組裝設備方面，當然在特定的技術領域，能力是可替代的。如果我們談論 SiP 和 SiP 生產線，這些設備是可替代的。如果我們談論倒裝芯片，這些是可替代的，晶圓級封裝也可以跨市場替代。通常有一些關於技術領域的貢獻。

Okay. Very helpful. And then moving over to the end markets, a lot of the companies out there have seen some softness in consumer and mobility. You guys are not seeing that. And I'm curious, when you look at the strength in the third quarter, do you think that disparity is driven by share gains on your part? Or is it just the complexity of the chips this year around are such that it drives revenue growth even if the units aren't growing that high?

好的。非常有幫助。然後轉向終端市場，許多公司在消費者和移動性方面都出現了一些疲軟。你們沒有看到這一點。而且我很好奇，當您查看第三季度的實力時，您是否認為這種差異是由您的股票收益驅動的？或者僅僅是今年芯片的複雜性使得即使單位增長沒有那麼高，它也能推動收入增長？

Yes. Let me start giving some comments on the consumer market. The consumer market for Amkor, our position in the consumer market is very much towards the variable IoT devices as well as more the traditional consumer markets. And we see that specifically the variable category this year is strong in the second half specifically. That makes us confident to see further growth. The mobility market, I don't exactly know. Can you give me an example where you see weakness in the mobility market? Is it automotive?

是的。讓我開始對消費市場發表一些評論。 Amkor 的消費市場，我們在消費市場的定位非常傾向於可變物聯網設備以及更多的傳統消費市場。我們看到今年的變量類別特別是在下半年特別強勁。這使我們有信心看到進一步的增長。移動市場，我不太清楚。你能給我舉一個你認為移動市場疲軟的例子嗎？是汽車嗎？

I think it was more driven by the softness in the unit growth from advanced handsets more than anything else.

我認為這更多是由先進手機的單位增長疲軟推動的，而不是其他任何事情。

Yes. I think on the mobility market, if you talk about the smartphone market, indeed, I think on a global volume basis, we expect let's say a mid-single-digit decline. Now Amkor is very much positioned towards the higher-end premium tier smartphones. There is still strength in that market. Specifically, when we talk about the transition into 5G premium smartphones, although the overall market is declining, we see the 5G unit volume increasing. Because last year there was about 35% of the market was 5G. This year is expected to be 50%. It's an increase in 5G and the premium tier market continues to stay strong on a global basis. With our position in that premium tier segment of the market, we see continued strength.

是的。我認為在移動市場上，如果你談論智能手機市場，事實上，我認為從全球銷量來看，我們預計會出現中個位數的下降。現在 Amkor 非常定位於高端高端智能手機。該市場仍有實力。具體來說，當我們談到向 5G 高端智能手機的過渡時，雖然整體市場正在下滑，但我們看到 5G 的單位數量在增加。因為去年大約有 35% 的市場是 5G。今年預計為50%。這是 5G 的增長，高端市場在全球範圍內繼續保持強勁。憑藉我們在高端市場的地位，我們看到了持續的實力。

Okay. Great. No, good to hear. And the final question on the automotive front. Can you talk a little bit about the biggest driver near term? Is it just the increasing chips in normal cars? Or is it the EV market that's driving a lot of the growth near term? And then which of those segments do you think is the bigger long-term driver?

好的。偉大的。不，很高興聽到。最後一個問題是關於汽車方面的。你能談談近期最大的驅動因素嗎？只是普通汽車的芯片越來越多嗎？還是電動汽車市場在短期內推動了大量增長？然後，您認為哪些細分市場是更大的長期驅動力？

Yes, that's a good point. We see drivers for growth. Specifically, this year there is, on the automotive, the car unit volume this year, there's a single-digit increase, so that drives growth. And on top of that, we see the let's say penetration of features like driver assistance features, like ADAS, telematics, digital displays proliferating deeper into that market. The semiconductor content per car is significantly increasing, and we're expecting that to continue. And this goes for both EVs as well as combustion engine cars. On the EV side, there is an incremental semiconductor content that's increasing, and that relates to the electrical control of the transmission. There's a lot of, for example, power electronics there, power modules that increase transition from silicon into silicon carbide, into silicon nitride. And we also see that as a good driver for Amkor. We hold a very strong position in the silicon carbides assembly and test markets, so we believe that on the EV side there are incremental growth drivers on top of the electrification that I mentioned before that are across the board for the automotive markets. Does that answer your question, Tom?

是的，這是一個很好的觀點。我們看到了增長的動力。具體來說，今年在汽車方面，今年的汽車銷量有個位數的增長，從而帶動了增長。最重要的是，我們看到駕駛輔助功能（如 ADAS、遠程信息處理、數字顯示器）等功能滲透到該市場的更深處。每輛汽車的半導體含量正在顯著增加，我們預計這種情況會持續下去。這適用於電動汽車和內燃機汽車。在電動汽車方面，半導體含量不斷增加，這與變速器的電氣控制有關。那裡有很多，例如，電力電子設備，功率模塊，可以增加從矽到碳化矽，再到氮化矽的過渡。我們也認為這是 Amkor 的一個很好的推動力。我們在碳化矽組裝和測試市場擁有非常強大的地位，因此我們相信，在電動汽車方面，除了我之前提到的電氣化之外，汽車市場還有全面的增長動力。這能回答你的問題嗎，湯姆？

Yes. No, absolutely. And thank you both for your time today.

是的。不，絕對。感謝你們今天的時間。

(Operator Instructions) Our next question comes from Charles Shi with Needham & Company.

（操作員說明）我們的下一個問題來自 Needham & Company 的 Charles Shi。

Good afternoon, Giel and Megan. Thank you for allowing me to ask a question. Giel, I want to go back to your comment about automotive semiconductor content per car. You talked about 50% growth of content I believe you said 2026 or 2027 from 2020. I want to try to ask you to help us how to reconcile your comment with what ST Microelectronics said back in May. They basically said in 2022 they are seeing automotive semiconductor TAM expanded 50% compared to 2019 level, but that the auto production, as you also know that 2022 is not so different from 2019. So obviously, their number seems to be a lot more aggressive than yours and how do I reconcile the 2 views here? Maybe both of you are right, but I would like to hear your thought. Thank you.

下午好，吉爾和梅根。謝謝你允許我提問。 Giel，我想回到你關於每輛車的汽車半導體含量的評論。您談到了 50% 的內容增長，我相信您說的是 2026 年或 2027 年的 2020 年。我想請您幫助我們如何使您的評論與 ST Microelectronics 早在 5 月所說的內容相一致。他們基本上說，在 2022 年，他們看到汽車半導體 TAM 與 2019 年相比增長了 50%，但汽車產量，正如你也知道，2022 年與 2019 年沒有太大不同。所以顯然，他們的數字似乎要激進得多比你的，我如何在這裡調和這兩種觀點？也許你們倆都是對的，但我想听聽你的想法。謝謝你。

Yes. Good point, Charles. I cannot comment on behalf of ST. We use different sources to reference here. We talk about average semiconductor content per car goes from $500 in 2020 to $750 in 2025. Again, I cannot comment to the ST part. It may relate to a certain transition from combustion engine cars into EVs. We see some acceleration there, certainly in the European market where the let's say participation of EV in the overall automotive market is increasing. And there, definitely on the power component side, that contributes significantly to the semiconductor content. That may be one of the elements. But yes, further, I cannot comment to that, Charles.

是的。好點子，查爾斯。我不能代表 ST 發表評論。我們在這裡使用不同的來源進行參考。我們談論每輛汽車的平均半導體含量從 2020 年的 500 美元到 2025 年的 750 美元。同樣，我不能對 ST 部分發表評論。這可能與從內燃機汽車到電動汽車的某種過渡有關。我們在那裡看到了一些加速，當然在歐洲市場，可以說電動汽車在整個汽車市場的參與度正在增加。在那裡，肯定是在功率元件方面，這對半導體含量有很大貢獻。這可能是要素之一。但是，是的，此外，我無法對此發表評論，查爾斯。

Maybe a second question, maybe this is also my final question. What do you see in terms of the pricing environment today? I think your peer in Taiwan sort of commented at least for the mainstream packaging side, pricing has been stable so far this year quarter-over-quarter. But obviously, there's inflation and you've got to pass down some of the input costs. But what's the pricing outlook as you see going to Q3 and Q4? Thank you.

也許是第二個問題，也許這也是我的最後一個問題。您對當今的定價環境有何看法？我認為您的台灣同行至少對主流包裝方面發表了評論，今年到目前為止，價格環比保持穩定。但很明顯，存在通貨膨脹，你必須轉嫁一些投入成本。但是，您認為第三季度和第四季度的定價前景如何？謝謝你。

Yes. Pricing, that's an important point. I mean, first of all, your comment on inflation. So far this year, we work closely with our customer base to include inflation in our prices, so to increase prices where needed to make sure that our increase in cost is covered. Secondly, with respect to the second half of the year, we don't see an increased pricing environment or a deteriorating pricing environment. We have several long-term agreements in place with customers and customers don't want to renegotiate these agreements. So far, I see a stable pricing environment in the businesses that we support.

是的。定價，這是很重要的一點。我的意思是，首先，你對通貨膨脹的評論。今年到目前為止，我們與客戶群密切合作，將通貨膨脹納入我們的價格中，以便在需要的地方提高價格，以確保我們的成本增加得到彌補。其次，就下半年而言，我們沒有看到定價環境增加或定價環境惡化。我們與客戶簽訂了幾項長期協議，客戶不想重新談判這些協議。到目前為止，我在我們支持的業務中看到了穩定的定價環境。

Thank you. And ladies and gentlemen, I'm showing no further questions. I would like to turn the call back over to Giel for closing remarks.

謝謝你。女士們，先生們，我不再提出任何問題。我想把電話轉回給 Giel 做結束語。

Thank you. Before closing the call, I would like to recap our key messages. Amkor delivered solid first half results with overall revenue up 14% year-on-year and advanced packaging revenue up 18% year-on-year. We expect third quarter revenue of $1.93 billion, reflecting another quarter of strong year-on-year growth of around 15%. Demand for our technology and services remains robust, driven by our leadership position in advanced packaging supporting 5G, automotive, high-performance computing and IoT. Although we observed macroeconomic headwinds and some weaker market forecast in some segments, we believe the long-term growth drivers for the semiconductor industry remain in place, and we are confident our strategic focus and leadership position in key semiconductor markets will continue to drive future growth. I would like to close with a special thank you for our Shanghai factory team. Under difficult conditions they worked diligently through the mandated factory lockdown and enabled a successful return to normal output levels by the end of the second quarter. Thank you for joining the call today.

謝謝你。在結束通話之前，我想回顧一下我們的關鍵信息。 Amkor 上半年業績穩健，總收入同比增長 14%，先進封裝收入同比增長 18%。我們預計第三季度收入為 19.3 億美元，反映了另一個季度強勁的同比增長約 15%。由於我們在支持 5G、汽車、高性能計算和物聯網的先進封裝領域的領先地位，對我們的技術和服務的需求依然強勁。儘管我們觀察到宏觀經濟逆風和某些細分市場的一些疲軟市場預測，但我們相信半導體行業的長期增長動力仍然存在，我們相信我們在關鍵半導體市場的戰略重點和領導地位將繼續推動未來增長.最後，我要特別感謝我們上海工廠團隊。在困難的條件下，他們通過強制工廠停工努力工作，並在第二季度末成功恢復正常產出水平。感謝您今天加入電話會議。

Thank you. This concludes today's conference. All parties may disconnect. Have a great day.

謝謝你。今天的會議到此結束。各方都可以斷開連接。祝你有美好的一天。