Amkor Technology Inc at KeyBanc Capital Markets Emerging Technology Summit Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Steve Barger - KeyBanc Capital Markets Inc - Analyst : Very good. Most common question I've gotten post earnings is the socket transition. Can you just talk about how that evolved, what happened, when you expect to restart that?

Question: Steve Barger - KeyBanc Capital Markets Inc - Analyst : So you've already gotten a commitment from the customer, and you're highly confident that that comes in the back half? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MARCH 04, 2025 / 9:30PM, AMKR.OQ - Amkor Technology Inc at KeyBanc Capital Markets Emerging Technology Summit

Question: Steve Barger - KeyBanc Capital Markets Inc - Analyst : Great. And over the past year or two, there has been a lot of variability between smartphone forecasts and what we've actually seen. Are there any other design changes or issues that could affect the year?

Question: Steve Barger - KeyBanc Capital Markets Inc - Analyst : So does that extend to the Android environment? Or can you tell us what you're seeing there on the premium tier?

Question: Steve Barger - KeyBanc Capital Markets Inc - Analyst : Do you have any early thoughts on the AI-enabled phones? Are they going to drive an upgrade cycle? Or do we expect that they'll just get that functionality over time and we'll see normal replacement cycles, whatever that means?

Question: Steve Barger - KeyBanc Capital Markets Inc - Analyst : I want to ask about System in Package. I think right now, it primarily is for wearables and smartphones. Do you expect that technology will spread into auto, industrial and other consumer applications? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MARCH 04, 2025 / 9:30PM, AMKR.OQ - Amkor Technology Inc at KeyBanc Capital Markets Emerging Technology Summit

Question: Steve Barger - KeyBanc Capital Markets Inc - Analyst : Yes. We'll talk more about automotive a minute. But I guess just to extend that to ARM-based PCs, any comments there?

Question: Steve Barger - KeyBanc Capital Markets Inc - Analyst : Okay. Let's switch to computing. All through last year, we talked about tripling or quadrupling capacity for 2.5D. On the call, you talked about lower-than-expected demand due to China export restrictions and shifting product type lines -- time lines. Can you start with the China restrictions? What's happened most recently there?

Question: Steve Barger - KeyBanc Capital Markets Inc - Analyst : So that's a good point on the shifting time lines. Do -- have product rollout dynamics changed, in your view?

Question: Steve Barger - KeyBanc Capital Markets Inc - Analyst : Is that what Giel talked about on the call in terms of bridge-based packaging? And what does that mean from a design standpoint?

Question: Steve Barger - KeyBanc Capital Markets Inc - Analyst : Understood. And it's been a little over a month since the DeepSeek news and everything we've talked about so far has been kind of before that. Has DeepSeek changed how you think about industry dynamics?

Question: Steve Barger - KeyBanc Capital Markets Inc - Analyst : Yes. And it seems like DeepSeek was trained on nonrestricted GPUs. Does that create more of an opportunity in China for you around AI?

Question: Steve Barger - KeyBanc Capital Markets Inc - Analyst : When you think about AI in the near term versus the medium term, how do you expect revenue will evolve from traditional data center GPUs to more edge devices like PC and smartphones? And do you have a time line for when you think inferencing could overtake PC?

Question: Steve Barger - KeyBanc Capital Markets Inc - Analyst : Understood. Your primary OSAT competitor has also expanded CoWoS capacity. How do you differentiate against competitors in advanced packaging?

Question: Steve Barger - KeyBanc Capital Markets Inc - Analyst : Given some of the near-term demand concerns, can you maintain pricing through a period like this?

Question: Steve Barger - KeyBanc Capital Markets Inc - Analyst : Yes. Can we talk a little bit about panel-level packaging? We're hearing a little bit more about that. Maybe give everyone just an overview of what it is, why it matters. And do you think it will primarily be for AI and HPC?

Question: Steve Barger - KeyBanc Capital Markets Inc - Analyst : Any idea of time line towards more mainstream manufacturing? Is this years away?

Question: Steve Barger - KeyBanc Capital Markets Inc - Analyst : Okay. If AI demand slows or macro conditions worsen, just thinking about Amkor's $850 million CapEx plan, would you view that as more discretionary in this year, just given how you're thinking about future growth? Or would you consider adjusting that?

Question: Steve Barger - KeyBanc Capital Markets Inc - Analyst : Understood. I have a few more questions on CapEx, but I want to make sure we have time for automotive, a very challenging market. Have you ever experienced a downturn this prolonged before?

Question: Steve Barger - KeyBanc Capital Markets Inc - Analyst : So when you think about the prior cycle, it ultimately was just getting through the inventory in the channel that -- before things flip back to positive? Or how do you see that evolving? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MARCH 04, 2025 / 9:30PM, AMKR.OQ - Amkor Technology Inc at KeyBanc Capital Markets Emerging Technology Summit

Question: Steve Barger - KeyBanc Capital Markets Inc - Analyst : When we see the more mainstream products start to reaccelerate, what does that mean for corporate margins?

Question: Steve Barger - KeyBanc Capital Markets Inc - Analyst : As you look across the spectrum of vehicles from low tier to premium, how much more runway is there for semiconductor content increases? Have we -- are we hitting the upper limit in any platform?

Question: Steve Barger - KeyBanc Capital Markets Inc - Analyst : Would that be more -- as we think more about Tesla's full self-driving or Waymo, is that more dollar content, just more expensive chips? Or is it unit content across the vehicle?

Question: Steve Barger - KeyBanc Capital Markets Inc - Analyst : Yes. Shifting to consumer, in terms of devices in the market, can we just talk about the market share that you touch today in your addressable market? And I'm just trying to think about how much room there is for share gains versus your -- the platforms you're on just kind of riding cycles? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MARCH 04, 2025 / 9:30PM, AMKR.OQ - Amkor Technology Inc at KeyBanc Capital Markets Emerging Technology Summit

Question: Steve Barger - KeyBanc Capital Markets Inc - Analyst : Is it similar to other parts of your business where you're in the prior design cycle or the forward design cycle and you see what that road map looks like?

Question: Steve Barger - KeyBanc Capital Markets Inc - Analyst : I just had a question on AR and VR. How important is that to the future of the consumer segment? And maybe are you seeing a proliferation of applications?

Question: Steve Barger - KeyBanc Capital Markets Inc - Analyst : Yes. And you have a lot of capacity coming online in Vietnam. That business is typically more margin constrained because of the material content. What is the normal mix that you hope to maintain there going forward? Or can you talk about how you're going to balance the plants?

Question: Steve Barger - KeyBanc Capital Markets Inc - Analyst : Got it. Capital allocation, can you remind us of the preferred ranking of capital allocation, and how you approach that? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MARCH 04, 2025 / 9:30PM, AMKR.OQ - Amkor Technology Inc at KeyBanc Capital Markets Emerging Technology Summit

Question: Steve Barger - KeyBanc Capital Markets Inc - Analyst : You did do a special in November, which I think was your first.

Question: Steve Barger - KeyBanc Capital Markets Inc - Analyst : What was the investor response? How did that -- what was the reaction to that?

Question: Steve Barger - KeyBanc Capital Markets Inc - Analyst : And you talked a little -- a question in the back. Unidentified Participant A question. So you have a partnership with TSMC in Arizona. TSMC, obviously, may have (inaudible) investment in the US. Do you see that partnership growing or is that kind of a one-off (inaudible) to the customers that it is what it is and (inaudible) enhance the partnership?

Question: Steve Barger - KeyBanc Capital Markets Inc - Analyst : I think for you, full-rate production is planned for 2028. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MARCH 04, 2025 / 9:30PM, AMKR.OQ - Amkor Technology Inc at KeyBanc Capital Markets Emerging Technology Summit

Question: Steve Barger - KeyBanc Capital Markets Inc - Analyst : Could you accelerate that if it made sense?

Question: Steve Barger - KeyBanc Capital Markets Inc - Analyst : On a relative basis, that will be your most automated plant? Or can you talk some about the investments and how you're planning to meet the demand levels?

Question: Steve Barger - KeyBanc Capital Markets Inc - Analyst : We just have 1 minute left. Maybe if you want to wrap up, what do you view as the biggest opportunity, just given the end market set that you face right now?

Question: Steve Barger - KeyBanc Capital Markets Inc - Analyst : Very good. Thanks very much.