Release Date: October 30, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- ASMPT Ltd (ASMVF, Financial) reported strong demand for its advanced packaging (AP) solutions, particularly driven by generative AI and high-performance computing applications.
- The company achieved a significant breakthrough by securing a bulk TCB order from a leading global HBM player, which is expected to drive future growth.
- ASMPT Ltd (ASMVF) maintained its leading market position in the SMT business despite market softness.
- The company's gross margin improved both quarter-over-quarter and year-over-year, driven by higher manufacturing utilization and favorable product mix.
- ASMPT Ltd (ASMVF) ended the quarter with a healthy balance sheet, including cash and bank deposits of HKD5.47 billion.
Negative Points
- The semiconductor industry's recovery remains uneven, with non-AI-related cyclical semiconductor demand recovering slower than anticipated.
- ASMPT Ltd (ASMVF) experienced a decline in adjusted net profit due to a significant foreign exchange loss of about HKD108 million.
- The SMT segment faced ongoing market softness, resulting in a decline in both revenue and bookings.
- The company's revenue was flat quarter-on-quarter and down year-on-year, reflecting challenges in certain market segments.
- ASMPT Ltd (ASMVF) anticipates a slower-than-expected recovery in its semi mainstream business, impacting near-term growth prospects.
Q & A Highlights
Q: Can you provide some booking outlook for the fourth quarter, considering new orders from TCBs?
A: We expect Q4 group bookings to be flattish quarter-on-quarter. Semi will be up, mainly due to AP, but mainstream could be down due to seasonality. AP bookings are expected to increase, driven by TCB memory demand. However, SMT bookings are expected to decline due to market softness and seasonality, though we believe SMT bookings are bottoming out.
Q: How sustainable is the sizeable TCB order from a leading memory company into 2025, and could the volume increase?
A: The AI momentum is expected to continue into 2025, with significant investments from major players. This suggests that the HBM market will continue to grow, making our TCB order a breakthrough. For chip-to-wafer applications, evaluations are ongoing, and results may be expected within a year.
Q: Could you exceed 100 TCB tool shipments next year given the memory win, and will memory tools surpass logic tools for TCB in 2025?
A: While we don't comment on specific numbers, the HBM market is exciting and expected to grow. Memory tools are likely to surpass logic tools in demand due to the increasing number of HBM in AI architectures.
Q: What are the differences between TCB tools for memory and logic, and how does this affect market share?
A: TCB tools are largely fungible, but memory tools handle thinner dies. Our tools can seamlessly upgrade from flux-based to fluxless applications, providing flexibility. This differentiation has helped us secure a significant market position despite not being the incumbent.
Q: What is the outlook for the photonics solutions market, and when do you expect silicon photonics to become significant?
A: Demand for photonics tools, especially for 800G optical transceivers, is strong and expected to continue. Silicon photonics is still in its infancy and may become significant around 2026.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
