艾克爾 (AMKR) 2023 Q3 法說會逐字稿

Good day, ladies and gentlemen, and welcome to the Amkor Technology Third Quarter 2023 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.

女士們、先生們，美好的一天，歡迎參加 Amkor Technology 2023 年第三季財報電話會議。我叫迭戈，今天我將擔任你們的會議主持人。 （操作員指示）謹此提醒，本次會議正在錄製中。

I would now like to turn the call over to Jennifer Jue, Head of Investor Relations. Ms. Jue, please go ahead.

我現在想將電話轉給投資者關係主管 Jennifer Jue。爵女士，請講。

Thank you, operator. Good afternoon, everyone, and thank you for joining us for Amkor's Third Quarter 2023 Earnings Conference Call. Joining me today are Giel Rutten, our Chief Executive Officer; and Megan Faust, our Chief Financial Officer.

謝謝你，接線生。大家下午好，感謝您參加 Amkor 2023 年第三季財報電話會議。今天加入我的是我們的執行長吉爾·魯滕 (Giel Rutten)；和梅根·福斯特，我們的財務長。

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. 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 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.

我們的收益新聞稿已於今天下午向美國證券交易委員會提交，並可在我們網站的投資者關係頁面上查看，以及今天電話會議附帶的演示幻燈片。在本次示範中，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 同等指標的調整表。我們將根據我們目前所看到的環境，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。請參閱我們的新聞稿和 SEC 文件，以了解可能導致實際結果與這些預期有重大差異的風險因素、不確定性和例外情況的資訊。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 表格中。

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

現在我將把電話轉給吉爾。

Thank you, Jennifer. Good afternoon, everyone, and thank you for joining the call today. Amkor delivered solid results in the third quarter, with both revenue and profitability at the high end of guidance. Revenue of $1.82 billion was up 25% sequentially, driven by the growth in advanced packaging, supporting the launch of premium tier smartphones.

謝謝你，詹妮弗。大家下午好，感謝您今天加入電話會議。 Amkor 在第三季度取得了穩健的業績，收入和盈利能力均處於指導價值的高端。在先進封裝成長的推動下，營收為 18.2 億美元，環比成長 25%，支援了高階智慧型手機的推出。

Year-to-date, revenue of $4.8 billion was down 8% versus prior year, reflecting strong outperformance compared to an estimated semiconductor industry decline of over 15% in that same period. Although we observed improvements in certain areas like smartphones and PCs, overall macroeconomic conditions continue to dampen end market demand, and inventory levels remain elevated in some markets. Looking forward, we remain confident that the secular growth drivers for the industry remain in place and that Amkor is well positioned to outperform the industry with our strategic focus on advanced packaging and our broad geographic footprint.

年初至今，營收為 48 億美元，較上年下降 8%，與同期半導體產業預計下滑超過 15% 相比，表現強勁。儘管我們觀察到智慧型手機和個人電腦等某些領域有所改善，但整體宏觀經濟狀況持續抑制終端市場需求，一些市場的庫存水準仍然較高。展望未來，我們仍然相信該行業的長期成長動力仍然存在，並且憑藉我們對先進封裝的策略重點和廣泛的地理覆蓋，Amkor 處於領先地位，能夠超越行業。

Now let me review the dynamics in each of our end markets. Revenue within our communication end market has remained strong throughout this industry cycle despite overall smartphone units projected to decline for the second year in a row. Third quarter revenue set a new record, crossing the $1 billion mark with a sequential growth of 69% and a year-on-year growth of 3%. Amkor also leading position through our premium tier smartphones, build on our technology expertise and our proven track record as a trusted partner for codeveloping innovative solutions and delivering operational excellence. Our advanced packaging technology supports a wide range of applications and functionality throughout the phone. With our advanced SiP technology for heterogeneous integration, we enable continuous innovation and form factor, functionality and performance.

現在讓我回顧一下我們每個終端市場的動態。儘管整體智慧型手機銷售預計將連續第二年下降，但我們的通訊終端市場的收入在整個行業週期中仍然保持強勁。第三季營收創下新紀錄，突破 10 億美元大關，季增 69%，年增 3%。 Amkor 也透過我們的高階智慧型手機佔據領先地位，並以我們的技術專業知識和作為值得信賴的合作夥伴共同開發創新解決方案和提供卓越營運的良好記錄為基礎。我們先進的封裝技術支援整個手機的廣泛應用和功能。憑藉我們先進的異質整合 SiP 技術，我們實現了外形尺寸、功能和性能的持續創新。

Devices supporting 5G connectivity, RF, camera applications, touch and display controllers, memory and sensors utilize advanced SiP technology, which drove the communication revenue to new record levels. Amkor's broad technology portfolio, scale and focus on operational excellence are key drivers for further growing our footprint in premium tier smartphones.

支援 5G 連接、射頻、攝影機應用、觸控和顯示控制器、記憶體和感測器的設備採用先進的 SiP 技術，將通訊收入推向新的記錄水平。 Amkor 廣泛的技術組合、規模和對卓越營運的關注是進一步擴大我們在高階智慧型手機領域的影響力的關鍵驅動力。

Overall revenue from the automotive and industrial end market was flat sequentially as well as year-to-date. But year-to-date revenue for advanced packaging in this market is up 15% versus the same period last year. Although we have observed some near-term variability in certain applications with ongoing inventory control measures by certain customers, we expect that the trend of increasing semiconductor content per car will continue.

汽車和工業終端市場的整體收入與上一季和年初至今持平。但今年迄今為止，該市場先進封裝的收入比去年同期增長了 15%。儘管我們觀察到某些應用在某些客戶持續採取庫存控制措施的情況下出現了一些近期變化，但我們預計每輛車半導體含量增加的趨勢將持續下去。

Advanced driver assistance systems generate growth in multiple applications from cameras and high-performance processors to sensors like RADAR and LiDAR. Growth in the EV segment is leading innovation in electrification, especially with the introduction of white band gap materials like silicon carbide and gallium nitride. These materials enable improvements in power efficiency and charging infrastructure.

先進的駕駛員輔助系統推動了從攝影機和高性能處理器到雷達和雷射雷達等感測器的多種應用的成長。電動車領域的成長引領著電氣化領域的創新，尤其是碳化矽和氮化鎵等白色帶隙材料的引入。這些材料可以提高電源效率和充電基礎設施。

As the leading automotive OSAT, we are strategically expanding our capacity and technology base for automotive solutions, notably in our factories in Europe, Japan and Korea, in support of regional supply chains for critical automotive semiconductors. In these regions, we have built a pipeline for future growth by partnering with lead customers for new applications utilizing advanced technology portfolio.

作為領先的汽車 OSAT，我們正在策略性地擴大汽車解決方案的產能和技術基礎，特別是在歐洲、日本和韓國的工廠，以支援關鍵汽車半導體的區域供應鏈。在這些地區，我們透過與領先客戶合作，利用先進技術組合開發新應用，建立了未來成長的管道。

Mixed near-term dynamics impacted our revenue in the computing end markets, resulting in a sequential decline of 14%. Strong demand for leading-edge advanced packaging technologies supporting high-performance computing devices for AI and other data center applications was offset by product life cycle changeovers and excess inventory corrections in more mature computing segments. Amkor is leading the OSAT supply chain with the deployment of 2.5D technologies, integrating high bandwidth memory and ASIC on interposers, combined with modular touch on substrates.

近期動態好壞參半影響了我們在計算終端市場的收入，導致季減 14%。對支援人工智慧和其他資料中心應用的高效能運算設備的領先先進封裝技術的強勁需求被更成熟的運算領域的產品生命週期轉換和過量庫存修正所抵消。 Amkor 透過部署 2.5D 技術、在中介層上整合高頻寬記憶體和 ASIC，並結合基板上的模組化觸摸，引領 OSAT 供應鏈。

To support the strong demand now and in the future, we are optimizing line utilization and expect capacity to double by the end of the year. And with our planned investments coming online by Q2 next year, we will have more than tripled our capacity compared to the second quarter of this year. Amkor is well positioned to capitalize on opportunities in the computing market with our broad advanced packaging portfolio and established relationship with lead customers and foundries.

為了支持現在和未來的強勁需求，我們正在優化生產線利用率，預計到年底產能將增加一倍。隨著我們計劃的投資在明年第二季上線，我們的產能將比今年第二季增加兩倍以上。 Amkor 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，處於有利地位，可以充分利用計算市場的機會。

Revenue within the consumer end market remained stable sequentially. The headwinds impacting this market continue to dampen demand. Reduced consumer spending, excess inventory and product life cycle changeovers in the IoT wearable market are still holding back a full recovery. Beyond this cycle, we expect the IoT wearable market will diversify and grow, and we are expanding capacity and investing in our advanced SiP technology to drive manufacturing scale and innovation.

消費終端市場收入環比保持穩定。影響該市場的不利因素繼續抑制需求。物聯網穿戴市場中消費者支出的減少、庫存過剩和產品生命週期的轉變仍然阻礙著物聯網穿戴市場的全面復甦。在此週期之後，我們預計物聯網穿戴市場將多元化並成長，我們正在擴大產能並投資先進的 SiP 技術，以推動製造規模和創新。

We are engaged with multiple customers across a diverse set of products ranging from audio devices, smart watches and the emerging AR/VR experience. Within our new Vietnam location, we are qualifying new advanced SiP consumer products that we expect to ramp to high volume in the second half of 2024. In the third quarter, our manufacturing organization demonstrated operational excellence and supply reliability to support a significant advanced packaging ramp within premium tier smartphones.

我們與多個客戶合作，涉及多種產品，包括音訊設備、智慧手錶和新興的 AR/VR 體驗。在我們的越南新工廠中，我們正在對新型先進SiP 消費產品進行資格認證，預計這些產品將在2024 年下半年實現大批量生產。在第三季度，我們的製造組織展示了卓越的營運能力和供應可靠性，以支援先進封裝的顯著增長在高階智慧型手機。

Geopolitical dynamics continue to impact the semiconductor supply chain. With our broad geographic footprint across multiple countries in Asia and in Europe, Amkor is uniquely positioned to support our customers with reliable and cost-effective manufacturing. We are actively working with our customers on programs that will support diversifying and derisking their supply chains.

地緣政治動態持續影響半導體供應鏈。憑藉我們在亞洲和歐洲多個國家的廣泛地理足跡，Amkor 具有獨特的優勢，能夠為我們的客戶提供可靠且經濟高效的製造。我們正積極與客戶合作進行支援供應鏈多元化和降低風險的計畫。

In the U.S., we are progressing our discussions to establish an advanced packaging and test facility. We have submitted our pre-application for chips funding and are actively working with customers and partners on long-term commitments to secure a U.S. manufacturing supply chain. On October 11, we held the grand opening ceremony for our Vietnam manufacturing site. The Bac Ninh campus further diversifies and strengthens our broad geographic footprint. And qualifications of new programs is progressing for advanced SiP and memory technology.

在美國，我們正在討論建立先進的封裝和測試設施。我們已經提交了晶片資金預申請，並積極與客戶和合作夥伴合作，致力於確保美國製造供應鏈的長期承諾。 10月11日，我們舉行了隆重的越南生產基地開幕儀式。北寧校區進一步多元化並加強了我們廣泛的地理足跡。先進 SiP 和記憶體技術的新項目資格正在取得進展。

Vietnam is an attractive location for our customers. We believe that the evolving local semiconductor ecosystem, coupled with Amkor's advanced packaging scale and expertise, will deliver a cost-effective and reliable manufacturing location.

越南對我們的客戶來說是一個有吸引力的地點。我們相信，不斷發展的本地半導體生態系統，加上 Amkor 先進的封裝規模和專業知識，將提供一個經濟高效且可靠的製造基地。

Now let me turn to the fourth quarter outlook. With the ongoing uncertainties in the markets, we are observing several customers taking a prudent position on inventory to close out the year. With this backdrop, we are expecting the fourth quarter to be softer than seasonal, with revenue of $1.675 billion at the midpoint of guidance. Although it is taking longer than anticipated to recover from this industry cycle, we believe that the secular growth drivers for the semiconductor industry remain in place. And with our leading technology portfolio, scale and global footprint, Amkor is poised to accelerate as the market recovers.

現在讓我談談第四季的展望。由於市場持續存在不確定性，我們觀察到一些客戶在年底前對庫存持謹慎態度。在此背景下，我們預計第四季將比季節性疲軟，營收為 16.75 億美元，處於指導中位數。儘管從這個產業週期中恢復的時間比預期要長，但我們相信半導體產業的長期成長動力仍然存在。憑藉我們領先的技術組合、規模和全球足跡，Amkor 準備隨著市場復甦而加速發展。

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

現在，我將把電話轉給梅根，以提供更詳細的財務資訊。

Thank you, Giel, and good afternoon, everyone. Third quarter revenue of $1.82 billion was up 25% sequentially, primarily driven by advanced packaging supporting the launch of premium tier smartphones. We achieved a notable highlight with communications growing to a quarterly record of over $1 billion. Given the increase in utilization and leverage in our financial model, our EPS more than doubled sequentially to $0.54.

謝謝吉爾，大家下午好。第三季營收為 18.2 億美元，比上一季成長 25%，這主要得益於支援高階智慧型手機推出的先進封裝。我們取得了顯著的成就，通訊收入成長至季度創紀錄的超過 10 億美元。鑑於我們的財務模型利用率和槓桿率的提高，我們的每股收益比上一季增長了一倍多，達到 0.54 美元。

For the first 3 quarters of this year, Amkor's revenue is down 8% compared to 2022. Amkor's market share gains in communications, together with its diversified end market landscape and strategic focus on advanced packaging, is mitigating cyclical variability and providing the resilience needed to perform better than the industry. Gross margin for the third quarter was 15.5%, and gross profit increased over 50% sequentially to $283 million. With effective cost discipline, manufacturing costs, defined as cost of goods sold less materials only increased 3% sequentially, allowing for significant flow-through to gross profit.

今年前3 季度，Amkor 的營收比2022 年下降了8%。Amkor 在通訊領域的市佔率成長，加上其多元化的終端市場格局和對先進封裝的策略重點，正在減輕週期性波動並提供所需的彈性表現優於同業。第三季毛利率為 15.5%，毛利較上季成長超過 50%，達到 2.83 億美元。透過有效的成本控制，製造成本（定義為銷售成本減去材料後的成本）僅比上一季增加了 3%，從而可以顯著轉化為毛利。

Optimizing utilization is the key variable to improving profitability. Operating expenses for the third quarter came in as expected at $116 million. Operating income more than doubled sequentially to $167 million. And operating margin expanded nearly 400 basis points to 9.1%.

優化利用率是提高獲利能力的關鍵變數。第三季營運支出符合預期，為 1.16 億美元。營業收入比上一季成長了一倍多，達到 1.67 億美元。營業利益率擴大近 400 個基點，達到 9.1%。

Net income for the third quarter was $133 million, resulting in EPS of $0.54. Third quarter EBITDA was $333 million, and EBITDA margin was 18.3%. We ended the quarter with $1.2 billion of cash and short-term investments, and our total liquidity was $1.9 billion. Our total debt as of the end of the third quarter is $1.1 billion, and our debt-to-EBITDA ratio is 0.9x. Amkor has exercised cost and CapEx discipline during this cycle, and our strong balance sheet demonstrates financial strength.

第三季淨利為 1.33 億美元，每股收益為 0.54 美元。第三季 EBITDA 為 3.33 億美元，EBITDA 利潤率為 18.3%。截至本季末，我們擁有 12 億美元的現金和短期投資，總流動資金為 19 億美元。截至第三季末，我們的總負債為 11 億美元，負債與 EBITDA 的比率為 0.9 倍。 Amkor 在此週期中嚴格執行成本和資本支出紀律，我們強勁的資產負債表證明了財務實力。

We continue to invest strategically in our global manufacturing footprint during the industry cycle, and we completed our new Vietnam factory on schedule. This state-of-the-art factory will support advanced packaging growth, offer our customers an alternative to diversify their global supply chain and provide for capacity expansion when we exit the current cycle.

我們在產業週期中繼續對我們的全球製造足跡進行策略性投資，並如期竣工了新的越南工廠。這家最先進的工廠將支持先進封裝的成長，為我們的客戶提供實現全球供應鏈多元化的替代方案，並在我們退出當前週期時提供產能擴張。

Moving on to our fourth quarter outlook. We expect Q4 revenue to be $1.675 billion at the midpoint of guidance. We observed customers taking a cautious approach in Q4 to control inventory. Although we see improvement in some areas, overall macroeconomic conditions continue to dampen end market demand. We expect gross margin to be between 14% and 16%. We expect operating expenses to increase to around $120 million as we start to onboard our new Vietnam factory. We expect our full year effective tax rate to be around 17%. Fourth quarter net income is expected to be between $80 million and $120 million, resulting in EPS of $0.32 to $0.49. Our full year CapEx target remains at $750 million.

繼續我們的第四季展望。我們預計第四季營收為 16.75 億美元（以指引中位數計算）。我們觀察到客戶在第四季採取謹慎的態度來控制庫存。儘管我們看到某些領域有所改善，但整體宏觀經濟狀況仍持續抑制終端市場需求。我們預計毛利率在 14% 至 16% 之間。隨著我們開始建造新的越南工廠，我們預計營運費用將增加至 1.2 億美元左右。我們預計全年有效稅率約為 17%。第四季淨利潤預計在 8,000 萬美元至 1.2 億美元之間，每股收益為 0.32 美元至 0.49 美元。我們的全年資本支出目標仍為 7.5 億美元。

We have chosen to continue to invest strategically through this cycle to expand our global manufacturing footprint and strengthen our technology leadership position in advanced packaging to build foundations for future growth. Amkor recently celebrated its 55th anniversary and 25th year as a public company by ringing the NASDAQ closing bell. We are proud of our rich history and what we have accomplished over the past 5 decades. Our scale and leadership position in the OSAT market allows us to bring enabling technology to the world's leading semiconductor company.

我們選擇在這一周期中繼續進行策略性投資，以擴大我們的全球製造足跡，並加強我們在先進封裝領域的技術領先地位，為未來的成長奠定基礎。 Amkor 最近敲響了納斯達克收市鐘聲，慶祝其成立 55 週年，也是上市公司 25 週年。我們為我們豐富的歷史和過去 5 年來所取得的成就感到自豪。我們在 OSAT 市場的規模和領導地位使我們能夠為世界領先的半導體公司帶來支援技術。

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

現在，我們將開始徵集您的問題。操作員？

(Operator Instructions) Our first question comes from Tom Diffely with D.A. Davidson.

（操作員說明）我們的第一個問題來自 Tom Diffely 和 D.A.戴維森。

First, I was curious if you could just compare a year ago, fourth quarter to this upcoming fourth quarter by end markets to tell us where the relative 10% to 15% year-over-year weakness is?

首先，我很好奇您能否透過終端市場將一年前的第四季與即將到來的第四季進行比較，以告訴我們同比 10% 至 15% 的相對疲軟在哪裡？

Thanks, Tom, for the question. I can best refer to Megan to answer that. Megan, can you take this?

謝謝湯姆提出這個問題。我最好參考梅根來回答這個問題。梅根，你能接受這個嗎？

Sure. Tom, so just to give you some color on end market dynamics for what we're seeing in Q4. With respect to communications, while we are showing a sequential decline off of a record Q3, that communications amount we're anticipating will be pretty much flat to the prior year Q4. So I would say holding very strong. And just a reminder, communications is -- depending upon the quarter, can be 40% to 50% of our business.

當然。湯姆，我只是想向您介紹我們在第四季度看到的終端市場動態。在通訊方面，雖然我們顯示出第三季創紀錄的連續下降，但我們預計通訊量將與去年第四季基本持平。所以我想說保持非常強。提醒一下，根據季度的不同，通訊可能占我們業務的 40% 到 50%。

As it relates to the other markets, automotive, what we're expecting for Q4. While that is expected to be down year-over-year, when we also look at the full year, we are still continuing to see an increase in advanced packaging. So I think that's the notable aspect with respect to automotive that despite some of that near-term softness in automotive, we are continuing to see strength in the advanced.

由於它與其他市場（汽車市場）相關，因此我們對第四季度的預期。雖然預計這一數字將同比下降，但當我們審視全年時，我們仍然繼續看到先進封裝的成長。因此，我認為這是汽車行業值得注意的方面，儘管汽車行業近期出現一些疲軟，但我們仍繼續看到先進技術的優勢。

From a computing perspective, that's had some mixed dynamics. With respect to Q4, again, down year-over-year. we are seeing for the full year, strong in the data center and infrastructure, where we really saw the most notable year-over-year was in the memory and storage component. And then last, consumer that had the most significant year-over-year decline. That's 2 factors. One, that is being impacted, I would say, the most by the macroeconomic conditions, but also timing with respect to product life cycle changeovers.

從計算的角度來看，這有一些複雜的動態。第四季再次年減。我們看到全年資料中心和基礎設施的表現強勁，其中最引人注目的是記憶體和儲存組件。最後是同比下降最顯著的消費者。這是兩個因素。第一，我想說，這受到宏觀經濟狀況的影響最大，也受到產品生命週期轉換時機的影響。

Okay. That's very helpful. So when you look at computing and consumer to the softer segments, how close do you think we're getting to a bottom here in terms of customers rationalizing their inventory levels?

好的。這非常有幫助。因此，當您關注較軟細分市場的計算和消費者時，您認為我們在客戶合理化庫存水平方面距離底部有多近？

Yes. Let me try to take care of that, Tom. Let's start with computing. I mean, as Megan already mentioned in the computing segment, we see clearly 2 dynamics. One is on the data center, high-performance computing, specifically products for AI utilizing over 2.5D technologies. That is showing a significant quarter-on-quarter growth, and we expect that to continue and support our overall computing business. The rest of the computing market, we expect that -- difficult to say whether we are at the bottom right now, but we see currently slight inventory corrections, but we are very positive for next year in the overall computing segment.

是的。讓我盡力解決這個問題，湯姆。讓我們從計算開始。我的意思是，正如梅根在計算領域已經提到的那樣，我們清楚地看到了兩個動態。一是資料中心、高效能運算，特別是利用2.5D以上技術的人工智慧產品。這顯示出顯著的季度環比增長，我們預計這將繼續並支持我們的整體計算業務。我們預計，在計算市場的其餘部分，很難說我們現在是否處於底部，但我們目前看到庫存略有調整，但我們對明年整個計算領域非常樂觀。

For consumers, that depends on a few things here. One is end market demand. Very much dependent on recovery, for example, of the China markets, macroeconomic elements. There, it's slightly difficult to predict. The market is still very uncertain, broadly. But with improving consumer demand, we expect that there will be a recovery, certainly because we see that inventory in that market is being digested. Not completely in balance yet, but definitely improving towards the end of the year. And that creates a good basis for further growth next year.

對消費者來說，這取決於一些事情。一是終端市場需求。很大程度取決於中國市場和宏觀經濟因素的復甦。在那裡，預測有點困難。總體而言，市場仍然非常不確定。但隨著消費者需求的改善，我們預計將會出現復甦，這當然是因為我們看到該市場的庫存正在消化。尚未完全平衡，但到年底肯定會有所改善。這為明年的進一步成長奠定了良好的基礎。

Great. And it sounded like from your comments that even though there's ebbs and flows in each of these markets, you're continuing to invest capital expansion to the high end of each of these markets. Is that correct?

偉大的。從您的評論來看，儘管每個市場都有潮起潮落，但您仍在繼續向每個市場的高端投資資本擴張。那是對的嗎？

Yes, that's correct, Tom. I mean, definitely, on the computing segment, we see that as a long-term growth market for Amkor. We have a strong position in discriminating -- differentiating technologies like 2.5D. And also, there's a road map going forward into, let's say, road map technologies there. We have a strong customer portfolio, so we continue to invest in that technology as well as in capacity.

是的，這是正確的，湯姆。我的意思是，毫無疑問，在計算領域，我們將其視為 Amkor 的長期成長市場。我們在區分 2.5D 等技術方面擁有強大的優勢。而且，還有一個路線圖，可以說是那裡的路線圖技術。我們擁有強大的客戶群，因此我們將繼續投資於該技術和產能。

When it comes to the consumer market, that's driven, let's say, specifically also by the consumer wearables. And there, in our Vietnam factory, we will launch in the course of next year a next-generation wearable products, and we expect that creates a good basis for further growth.

就消費市場而言，這主要是由消費者穿戴裝置所推動的。在我們的越南工廠，我們將在明年推出下一代穿戴式產品，我們預計這將為進一步成長奠定良好的基礎。

Okay. And maybe just quickly on that wearables market, is that going to be a new business for you? Or is that just an evolution from the prior generation to the new generation that you've done?

好的。也許很快就進入穿戴式裝置市場，這對您來說會是一項新業務嗎？或者這只是您所做的從上一代到新一代的演變？

That specific product we're talking about is new. It's a new generation, and is also a new business for us, a business that we didn't have in '23 and that we will have in '24.

我們正在談論的特定產品是新的。這是新一代，對我們來說也是一項新業務，一項我們在 23 年沒有的業務，但我們將在 24 年擁有。

Great. And then -- sorry to take some of precious your time, but the capacity expansion in 2.5D, it sounds like that business is currently under a pretty heavy ramp, and it's not until the second quarter of '24 where it gets to kind of 3x of last year's level?

偉大的。然後 - 很抱歉佔用您一些寶貴的時間，但是 2.5D 的產能擴張，聽起來該業務目前正處於相當強勁的增長階段，直到 24 年第二季度才達到某種程度是去年水平的3倍？

Yes. I mean that's a continuous ramp in that line. Of course, we have existing capacity there, Tom. And by debottlenecking that capacity and optimization of the utilization of the line, we are able to double capacity and output by the end of this year already. And by further investments of incremental equipment, we share further plan to, in total, triple our capacity towards the second quarter of '24.

是的。我的意思是那條線上有一個連續的斜坡。當然，我們在那裡有現有的能力，湯姆。透過消除產能瓶頸和優化生產線利用率，我們能夠在今年年底前將產能和產量增加一倍。透過對增量設備的進一步投資，我們進一步計劃在 2024 年第二季將我們的產能總共增加兩倍。

Okay. And then when you look at the CapEx for the year, it sounds like you're maintaining the $750 million, but did the location of the spend change? Are you spending more on computing and less on other markets?

好的。然後，當您查看今年的資本支出時，聽起來您維持了 7.5 億美元，但支出的位置是否發生了變化？您是否在計算上花費更多而在其他市場上花費更少？

Not really, Tom. You have to keep in mind that in that CapEx for this year, a significant part of that CapEx was allocated for our Vietnam facility. On the CapEx allocated for equipment and equipment expansion, I think that we already allocated, and that is as planned.

不是真的，湯姆。您必須記住，在今年的資本支出中，資本支出的很大一部分分配給了我們的越南工廠。關於分配給設備和設備擴展的資本支出，我認為我們已經分配了，而且是按計劃進行的。

(Operator Instructions) Our next question comes from Randy Abrams with UBS.

（操作員說明）我們的下一個問題來自瑞銀集團的蘭迪·艾布拉姆斯。

The first question, actually following up on Tom's questions on the applications. I may have missed it, but could you discuss for auto, industrial and mainstream, just the outlook for those applications to continue the correction or start to show signs of life on more of the mainstream and mature auto in industrial products?

第一個問題，其實是在跟進湯姆關於申請的問題。我可能錯過了，但您能否討論一下汽車、工業和主流應用程式的前景，這些應用程式將繼續修正或開始在工業產品中的更多主流和成熟汽車上顯示出生命跡象？

Yes. Good question, Randy. Now let me try to give some color, and then Megan later on give a little bit more detail here. In the automotive, we're clearly monitoring our position in advanced products in automotive because the emerging applications like ADAS, infotainment, in-car networking are all supported by advanced silicon in combination with advanced packaging. So there, we see continued growth. I mean, year-to-date growth in automotive, advanced packaging was around 15% year-on-year. So that's a good signal that will continue to grow.

是的。好問題，蘭迪。現在讓我嘗試給出一些顏色，然後梅根稍後在這裡給出更多細節。在汽車領域，我們正在明確監控我們在汽車先進產品中的地位，因為 ADAS、資訊娛樂、車內網路等新興應用均得到先進晶片與先進封裝相結合的支援。因此，我們看到了持續成長。我的意思是，今年迄今為止，汽車、先進封裝領域的年成長率約為 15%。所以這是一個將繼續增長的良好信號。

On the more mature part of the automotive market, we clearly see that customers are very prudent on keeping inventory or maintaining inventory at an elevated level, certainly go into the end part of this year, and we saw some corrections in specific areas. In our view, it's not that the inventory is extremely elevated, but it was more a prudent correction towards the end of the year. And we believe that going into next year, I think the overall supply chain for automotive is pretty much in balance.

在汽車市場較成熟的部分，我們清楚地看到客戶對保持庫存或將庫存維持在較高水平非常謹慎，當然進入今年年底，我們在特定領域看到了一些調整。我們認為，這並不是庫存極度升高，而是接近年底的謹慎調整。我們相信，進入明年，我認為汽車的整體供應鏈基本上保持平衡。

Good. On the margins, I'm curious on the incremental fourth quarter. Actually, the sales are pulling back. It looks like the margin is holding up a bit again. Is there a mix change, just sit relative to other part of the business? Or I think some of the efficiency measures on the nonmaterial costs that held in third quarter. Just if anything, relatively supporting the margin to hold up in the fourth quarter?

好的。在邊緣，我對第四季的增量感到好奇。事實上，銷量正在回落。看起來利潤率又保持住了一點。是否存在組合變化，只是相對於業務的其他部分？或者我認為第三季針對非物質成本採取的一些效率措施。如果有的話，是否相對支撐第四季的利潤率？

Okay. Thanks, Randy. Megan can take that.

好的。謝謝，蘭迪。梅根可以接受。

Yes. Randy, yes, so Q4, despite some decline, the margin is holding up nicely within our, I would say, our financial model even a bit better than that. There is some product mix in there, but I wouldn't say that that's dramatic. There's also a bit of currency benefit in there. But overall, there's really good, I would say, cost management where we're holding manufacturing costs down as that revenue declines.

是的。蘭迪，是的，所以第四季度，儘管有所下降，但在我們的財務模型中，利潤率保持得很好，甚至比這更好一點。其中有一些產品組合，但我不會說這是戲劇性的。其中還有一些貨幣利益。但總的來說，我想說的是，成本管理非常好，隨著收入下降，我們控制了製造成本。

The follow-up on CapEx, curious just how it ends the year for your overall CapEx. And then the initial take for next year with the advanced capacity expansion, if there'll be much lift in -- or for other investment areas in SiP, how you see the CapEx for next year as well?

資本支出的後續行動，好奇您的整體資本支出在今年結束時如何。然後，明年的初步產能擴張是否會帶來很大提升，或者 SiP 的其他投資領域，您如何看待明年的資本支出？

Okay. Megan?

好的。梅根？

Yes. Randy, so from a CapEx perspective, now that we have our Q4 guide, you can see we really maintained that low teens capital intensity approach. As a reminder, and Giel mentioned, a significant portion of '23 was dedicated to construction. So we did pull back significantly on the equipment and capability.

是的。蘭迪，從資本支出的角度來看，既然我們有了第四季度的指南，您可以看到我們確實保持了青少年資本密集度較低的方法。吉爾提到，作為提醒，23 年的很大一部分時間都致力於建立。因此，我們確實大幅縮減了設備和能力。

As far as '24 goes, it's too early for us to give a guide on '24 CapEx. We would, as we have now, continued to focus on the advanced packaging elements of our investment. And I would say just as a guideline, we would anticipate that we wouldn't go outside of our rule of thumb of low-teens capital intensity.

就「24」而言，我們現在給出「24 資本支出」指南還為時過早。我們將像現在一樣，繼續專注於我們投資的先進封裝元素。我想說，作為一個指導方針，我們預計我們不會超越我們的低青少年資本強度的經驗法則。

I actually want to follow up on the high-performance compute, the ramp up to double and then trip more -- I think, triple or more than triple by middle of next year. Two questions. One, the profitability and returns on this advanced business. And then the assurance on that capacity, where you have the foundry also doubling capacity, how you see assurance or just the momentum once you triple it, if you see trends and activity for customers broadening out to continue to grow that business?

我實際上想跟進高效能運算，將其提升至兩倍，然後再增加——我認為，到明年年中，將增加三倍或三倍以上。兩個問題。第一，這項先進業務的獲利能力和回報。然後是對產能的保證，代工廠的產能也翻倍，您如何看待保證或三倍後的動力，如果您看到客戶擴大趨勢和活動以繼續發展該業務？

Yes, Randy, I think we feel fairly comfortable that we can utilize the capacity that we bring in place. I mean there, we work with customers as well as with, for example, parties in the supply chain that provides elements like interposers to make sure that we share half demand and supply lined up. I mean there is also a broadening of our customer base in that technology. So we're fairly confident that into 2024, we can fill that capacity.

是的，蘭迪，我認為我們對能夠利用我們現有的能力感到相當滿意。我的意思是，我們與客戶以及供應鏈中提供中介層等元素的各方合作，以確保我們共享一半的需求和供應。我的意思是，我們在該技術方面的客戶群也在擴大。因此，我們相當有信心，到 2024 年，我們可以填補這一容量。

And the returns, like normally for advanced, I guess, capital intensity higher. But how do you see like return on investment and profitability? Is it still ramping and takes time to get scale and margin accretive as you ramp?

我猜，就像通常的高階投資一樣，報酬率資本密集度更高。但您如何看待投資回報和獲利能力？它是否仍然在成長，並且需要時間才能在成長過程中擴大規模並增加利潤？

Yes. I mean we already have capacity in place since 2017. So we're now in the third generation of products where we provide an end-to-end solution. So that means both population of the interposer as well as the on substrate part. If we invest in that technology, the majority of that equipment is fungible with a standard bumping line, so the utilization can be warranted. And even if there are swings on the 2.5D sites, we believe that since the fungibility of the equipment, we can utilize that with a very solid return on investment in the individual equipment. So it is broadly fungible, and you could label it as investment in wafer-level capacities in the broader sense of the word.

是的。我的意思是，我們自 2017 年以來就已經具備了產能。所以我們現在處於第三代產品中，我們提供端到端解決方案。因此，這意味著中介層以及基板上的部分。如果我們投資該技術，大部分設備都可以與標準凸塊生產線互換，因此利用率可以保證。即使 2.5D 場地存在波動，我們相信，由於設備的可互換性，我們可以利用它，在單一設備上獲得非常可觀的投資回報。因此，它在很大程度上是可替代的，你可以將其標記為更廣泛意義上的晶圓級產能投資。

Okay. And 1 final question on the interposer, sub and silicon that industry is looking at trying to find a bit less expensive or different options. Do you see much interest in activity for redistribution interposer? And would that be a value shift or opportunity? And are you investing towards that, if you're seeing that trend?

好的。最後一個問題是關於中介層、子系統和晶片，業界正在尋找更便宜或不同的選擇。您是否對重新分配中介層的活動很感興趣？這會是一個價值轉變或機會嗎？如果您看到這種趨勢，您是否會為此進行投資？

Yes. We're seeing that trend from an interposer or silicon interposer base into an RDL-level interposer. And we're working with several customers on initial, I would say, pilot production for that technology. I mean in general, the industry is conservative. Let's say, the maturing of the interposer-based technologies. Certainly, the yield levels is extremely important because the combination of high-bandwidth memory and expensive silicon requires very high yield levels, and that takes a steep learning curve.

是的。我們看到了從中介層或矽中介層到 RDL 級中介層的趨勢。我想說，我們正在與幾家客戶合作進行該技術的初步試生產。我的意思是，總的來說，這個行業是保守的。比如說，基於中介層的技術的成熟。當然，良率水平極為重要，因為高頻寬記憶體和昂貴的矽的組合需要非常高的良率水平，並且需要陡峭的學習曲線。

But on the other hand, the RDL-based technologies is emerging, and we're preparing that. And by the way, the installed capacity that we have in place is, to some extent or to a very large extent, fungible with between RDL and interposer-based technology.

但另一方面，基於 RDL 的技術正在興起，我們正在為此做好準備。順便說一句，我們現有的裝置容量在某種程度上或在很大程度上可以在 RDL 和基於中介層的技術之間互換。

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

我們的下一個問題來自 KeyBanc Capital Markets 的 Steve Barger。

I'm not familiar with Amkor. So I appreciate you letting me ask a question. And I'm not looking for near-term guidance like meaning this quarter or 2024. But can you talk about how you see longer-term growth rates for advanced packaging individually across your smartphone exposure, your automotive business and then maybe AI?

我對 Amkor 不熟悉。所以我很感激你讓我問一個問題。我並不是尋找像本季或 2024 年這樣的短期指導。但是您能否談談您如何看待先進封裝在智慧型手機業務、汽車業務以及人工智慧方面的長期成長率？

Yes. Let me try to give you a bit of color there, Steve. I mean, we believe that the markets that we are serving and catering for, specifically for advanced packaging, will grow at an above average rate if we compare that to regular semiconductor growth rates expected.

是的。讓我試著給你一點色彩，史蒂夫。我的意思是，我們相信，如果我們將其與預期的常規半導體增長率進行比較，我們所服務和迎合的市場，特別是先進封裝市場，將以高於平均水平的速度增長。

A couple of key drivers there. For Amkor specifically, I think if we take our core strategic pillars, it is diversification of our supply chain where we support customers in -- with semiconductor supply chains in jurisdictions where they like to be, like, for example, in Europe, supporting the European automotive industry or in Japan or now, for example, in Vietnam, where we offer customers an alternative supply chain vis-a-vis their China manufacturing. That will continue. We believe that Amkor is better positioned than the industry there, and that will drive incremental growth.

那裡有幾個關鍵驅動因素。具體來說，對於 Amkor 來說，我認為如果我們採取核心策略支柱，那就是我們的供應鏈多元化，我們為客戶提供支持，在他們喜歡的司法管轄區（例如歐洲）提供半導體供應鏈，支持歐洲汽車產業或日本或現在，例如在越南，我們為客戶提供相對於中國製造的替代供應鏈。這將繼續下去。我們相信 Amkor 比當地產業處於更有利的地位，這將推動增​​量成長。

There is also growth in advanced packaging. Because the growth drivers in the industry, be it 5 or 6G, automotive, IoT or high-performance computing, all that growth will be supported by advanced packaging. And there, we are positioned as a leader. We are engaged for -- with the leaders in that industry, and we believe that will drive growth going forward.

先進封裝也有成長。因為產業的成長動力，無論是 5G 還是 6G、汽車、物聯網或高效能運算，所有這些成長都將得到先進封裝的支援。在那裡，我們被定位為領導者。我們與該行業的領導者合作，我們相信這將推動未來的成長。

And then an additional element there is that the relative outsourced potential of the industry volumes is increasing. So where companies in the past, for example, in automotive, to a large extent, were vertically integrated, we see that for advanced packaging, more and more outsourcing takes place, both on the silicon side as well as on the packaging side. So increased outsourcing, solid geopolitical footprints, and that combined with engaged in the lead segments of the market will drive growth for Amkor.

另外一個因素是產業數量的相對外包潛力正在增加。因此，過去的公司，例如汽車行業，在很大程度上是垂直整合的，我們看到，對於先進封裝，越來越多的外包發生，無論是在矽方面還是在封裝方面。因此，外包的增加、穩固的地緣政治足跡以及對市場領先領域的參與將推動 Amkor 的成長。

I appreciate that detail. And just to follow up, I think people expect very high growth rates for advanced packaging around AI for obvious reasons. But will packaging content gains in smartphone and auto result in growth rates that can match that? Or how would you rank those kind of relative to each other?

我很欣賞這個細節。順便說一句，我認為出於顯而易見的原因，人們預計圍繞人工智慧的先進封裝會出現非常高的成長率。但智慧型手機和汽車領域的包裝內容成長是否會帶來與其相符的成長率？或者你會如何對這些類型之間的相對關係進行排序？

Well, specifically in the -- Steve, in the high-end part of smartphone and the premium tier smartphone, we still continue to see significant innovation. I mean, you referred to AI adoption, specifically in the data centers. But on the edge and then referring to smartphones, we also expect that an edge devices like smartphones, there is an incremental innovation to adopt AI functionality that will drive a new generation and a next generation of, for example, application processors. And that, again, will drive advanced packaging. So there is a kick-on effect also to edge devices like smartphones.

嗯，特別是在史蒂夫，在智慧型手機的高端部分和高階智慧型手機領域，我們仍然繼續看到重大創新。我的意思是，您提到了人工智慧的採用，特別是在資料中心。但在邊緣，然後指智慧型手機，我們也期望智慧型手機等邊緣設備能夠採用人工智慧功能進行漸進式創新，這將推動新一代和下一代應用處理器等的發展。這將再次推動先進封裝的發展。因此，智慧型手機等邊緣設備也會產生連鎖效應。

And same question for auto. Do you expect that the content gains there will drive significantly above-average growth relative to the semi-cycle itself?

對於汽車也有同樣的問題。您是否預期那裡的內容成長將推動相對於半週期本身顯著高於平均的成長？

Yes. I mean, we believe that automotive, actually, from our analysis, and that's also referring to industry data, is that the automotive semiconductor market is the fastest-growing market going forward in the next couple of years. We're well positioned there. And if you take applications like ADAS, in-car networking, connectivity that drives growth, and not only on the processing side, but also on the sensor side, for example, and that helps the automotive market moving forward.

是的。我的意思是，實際上，根據我們的分析（也指產業數據），我們認為汽車半導體市場是未來幾年成長最快的市場。我們在那裡處於有利位置。如果你採用 ADAS、車內網路、連接等應用來推動成長，不僅在處理方面，而且在感測器方​​面，例如，這有助於汽車市場向前發展。

And on top of that, we see a proliferation of these features from, let's say, high-end part of the automotive market into the more mainstream mid segment and low segment of the market because multiple of these features are becoming mandatory to be deployed in the car industry.

最重要的是，我們看到這些功能從汽車市場的高端部分擴散到更主流的中端和低端市場，因為其中多個功能正在成為強制性部署汽車工業。

That's great. And just 1 last one for me. When you talk about an AI-enabled smartphone or an edge smartphone, what time -- what's the timing of something like that? Is that 20 -- in '24, '25, '26?

那太棒了。對我來說只有最後一張。當你談論支援人工智慧的智慧型手機或邊緣智慧型手機時，什麼時間——類似的事情的時機是什麼？那是20年嗎──24年、25年、26年？

Well, if you -- I can only refer to the recent announcement of the biggest, let's say, smartphone chip company in the U.S. And you will see that the next generation of that high-end processors already has, let's say, an AI core included in that device. So we expect that to be '24, '25 range. This functionality to enter into the smartphones.

好吧，如果你——我只能參考美國最大的智慧型手機晶片公司最近發布的公告，你會發現下一代高階處理器已經擁有人工智慧核心包含在該裝置中。因此，我們預計該範圍為「24」、「25」。此功能進入智慧型手機。

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

謝謝。此時，我沒有再提出任何問題。我想將電話轉回給吉爾，讓他發表結束語。

Let me recap the key messages. We delivered solid third quarter results at the high end of guidance, with revenue growing 25% sequentially to $1.82 billion and EPS more than doubling to $0.54. We are expecting fourth quarter revenue of $1.675 billion at the midpoint of guidance.

讓我回顧一下關鍵訊息。我們第三季業績穩健，處於指導上限，營收季增 25%，達到 18.2 億美元，每股收益翻倍多，達到 0.54 美元。我們預計第四季營收為 16.75 億美元，處於指導中位數。

Through the cycle, Amkor continued to invest in a diversified large-scale manufacturing base to support a secure and reliable global semiconductor supply chain. In August, Amkor had the opportunity to ring the NASDAQ closing bell in celebration of the company's legacy and success. We celebrated 2 significant milestones: our 55th anniversary and our 25th anniversary as a publicly traded company.

在整個週期中，Amkor 持續投資多元化的大型製造基地，以支援安全可靠的全球半導體供應鏈。 8 月，Amkor 有機會敲響納斯達克收市鐘聲，慶祝公司的傳承和成功。我們慶祝了兩個重要的里程碑：我們成立 55 週年和我們作為上市公司成立 25 週年。

With our leadership in advanced packaging, our broad geographic footprint and diversified exposure to industry megatrends, we are poised to outperform the semiconductor market and accelerate out of this cycle. Thank you for joining the call today.

憑藉我們在先進封裝領域的領先地位、廣泛的地理覆蓋範圍以及對行業大趨勢的多元化了解，我們準備超越半導體市場並加速擺脫這一周期。感謝您今天加入通話。

Thank you. We conclude today's conference. All parties may now disconnect. Have a good day. Thank you.

謝謝。我們今天的會議結束了。所有各方現在都可以斷開連接。祝你有美好的一天。謝謝。