Amkor Technology Inc at Morgan Stanley Technology, Media & Telecom Conference Transcript

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

Question: Joseph Moore - Morgan Stanley - Analyst : <_ALACRA_META_ABSTRACT>I mean your historic seasonality has been about 45% of revenue in the first half, 55% in the second half. At the latest earnings call, you talked about a little bit more of a second half skew. Can you just talk to the trends that are driving that view?

Question: Joseph Moore - Morgan Stanley - Analyst : What are major customers telling you about their order outlooks for this year and just maybe give us a contrast with what we've seen in the last couple years?

Question: Joseph Moore - Morgan Stanley - Analyst : And then, probably the most asked question we got after your earnings is also probably the most difficult for you to speak to directly, but you know you mentioned the socket loss. In the Apple ecosystem or iOS ecosystem, how do you think about that in terms of what milestones should we look at, to determine your progress around that and just any help you can give us to sort of navigate what you're seeing there?

Question: Joseph Moore - Morgan Stanley - Analyst : You've also talked about a new wearables project that you started ramping last year. Can you give us a sense for the durability of that growth?

Question: Joseph Moore - Morgan Stanley - Analyst : Maybe looking at some of the markets that you talked about starting with compute. Can you kind of clarify your comments on compute growth, ticking down a little bit this last earnings, how much your compute business, how much that was related to China and.

Question: Joseph Moore - Morgan Stanley - Analyst : And I know again it's hard for you to be overly precise about the AI GPU part of the business. In the events packaging there, the cows like the products, but can you just give us a general sense for how important that is for multiple year growth prospects for A?

Question: Joseph Moore - Morgan Stanley - Analyst : And then I guess can you talk about your top couple of customers in this space and maybe you know with your primary customer, can you talk about prospects for future platforms and then you know maybe give us an indication of how big the second.

Question: Joseph Moore - Morgan Stanley - Analyst : I guess a lot of those advanced packaging technologies now when you talk about. Cow-like product or those kind of chip stacks, it takes you into a little bit of a different domain than you've been in. Do you compete with TSMC? Do you help TSMC? Like how should we think about that as a competitive dynamic? I think of your competitive side usually being other test. Yeah.

Question: Joseph Moore - Morgan Stanley - Analyst : Automotive, you talked about kind of a mixed environment. We just had an X here, talking about kind of a lack of visibility. That's generally the sense. It's maybe you know not approaching the worst point, but maybe not visibility when recovers, can you talk to that and can you talk to the business that you have your visibility into that?

Question: Joseph Moore - Morgan Stanley - Analyst : And at the latest earnest call you mentioned a split of your automotive business, roughly 60%, 40% payment, I believe. Can you talk to the growth rates of those two businesses and the prospects that you have?

Question: Joseph Moore - Morgan Stanley - Analyst : And can you talk about the advanced package types that are that are being?

Question: Joseph Moore - Morgan Stanley - Analyst : So I guess thinking about CapEx and maybe the strategy there. We're sort of moving from an environment where, and I don't want to get too political, but we're moving from a subsidy environment to more of like tariff concern kind of environment, but it seems like the goal is still the same, that stuff, there's a desire to have things manufactured in the region where it's being consumed in the US. 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 05, 2025 / 4:30PM, AMKR.OQ - Amkor Technology Inc at Morgan Stanley Technology, Media & Telecom Conference You guys are investing in Arizona, which I have kind of not thought of the US as being, necessarily the The cost structure that you look for and kind of packaging, but can you talk about the thought behind that facility, the benefits that you guys see from it, and maybe in navigating uncertainty in the political environment still seems like a pretty big benefit to have that capacity here.

Question: Joseph Moore - Morgan Stanley - Analyst : You said customers don't want to pay more, which I guess on the one hand is obvious, but is there a tradeoff between wanting supply chain certainty, wanting things to be manufactured in a region where at an OEM level the customers feel comfortable? Is there a willingness to pay for that, or.

Question: Joseph Moore - Morgan Stanley - Analyst : And still a pretty, it's exciting announcement, it's still a pretty small part of your CapEx, I think. You got it for CapEx of $850 million this year, of which you said 5% to 10% is going to that facility. Can you talk about what that looks like going forward is the capital density co op this year?

Question: Joseph Moore - Morgan Stanley - Analyst : And you mentioned Vietnam. You're up and running there now. Can you give us a sense for where you are in that ramp and how much revenue you can ultimately support.

Question: Joseph Moore - Morgan Stanley - Analyst : Can you talk about you know your business. How are you thinking about tester purchases in 2025? And it seems like there's some availability issues with certain testers. Can you talk generally to the --

Question: Joseph Moore - Morgan Stanley - Analyst : Maybe talk to financials a little bit. Your gross margin in the second half was a little lighter than what people were expecting. You had material content on the SAP under utilization in Vietnam. Can you just walk us through the puts and takes there and you know you've sort of talked about getting back to 20% gross margin at some point. You know what does it take to get to 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 05, 2025 / 4:30PM, AMKR.OQ - Amkor Technology Inc at Morgan Stanley Technology, Media & Telecom Conference

Question: Joseph Moore - Morgan Stanley - Analyst : Can you talk about the business mix and I think you've mentioned some of the legacy businesses can actually have higher gross margin at times. Just, how do we think about businesses impacting?

Question: Joseph Moore - Morgan Stanley - Analyst : Yeah. And I know you guys have made big investments into advanced packaging and the differentiation. That that gives you, what are those negotiations like? Are you able to -- you can extract more gross margin over time from that is from the fact that you have more capability that maybe is a little bit more differentiated?

Question: Joseph Moore - Morgan Stanley - Analyst : Yeah. Okay. Let me stop and see if we have questions from the audience. 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 05, 2025 / 4:30PM, AMKR.OQ - Amkor Technology Inc at Morgan Stanley Technology, Media & Telecom Conference Unidentified Participant I just wanted to ask about silicon photonics, co-packaged optics just from a customer roadmap perspective just at a high level what you're seeing there.

Question: Joseph Moore - Morgan Stanley - Analyst : It seems like this AI is an accelerant to all these things that we've been talking about for a long time, but it's coming.

Question: Joseph Moore - Morgan Stanley - Analyst : No, up there. Thank you so much.