Asmpt Ltd

Good morning, ladies and gentlemen. I'm Ben Poe, Head of Investor Relations, and today I will be moderating the call. On behalf of ASMPT Limited, welcome to our first quarter 2026 investor conference call. Thank you all for your interest and continued support. Please note that all participants will be in listen-only mode during the presentation by the management. We will start the Q&A session after the presentation. During the Q&A session, priority will be given to the covering analysts. Before we start, let me go through our disclaimer. Please note that there may be forward-looking statements about the company's business and finances during this call. Such forward-looking statements could involve known and unknown uncertainties and risks that could cause actual results, performance, and events to differ materially from those expressed or implied during this conference call. For your reference, the investor relations presentation on our recent results is available on our website. On today's call, we have the Group Chief Executive Officer, Mr. Robin Ng, and the Group Chief Financial Officer, Ms. Katie Hsu. Robin will cover the Group's key highlights for the first quarter 2026 and provide outlook and guidance for the following quarter. Katie will provide details on the financial performance for the quarter. Now, I will hand the time over to our Group Chief Executive Officer, Robin.

Thank you, Ben. Good morning and good afternoon and good evening to all. Thank you for joining us today for our first quarter 2026 earnings conference call. Now, let me start with the key business highlights for Q1. This quarter, I'm pleased to share that ASMPT achieved the highest quarterly bookings and billings in the last few years. We continue to see AI drive demand across multiple products as the rapid evolution of AI increases the value and complexity of back-end semiconductor manufacturing. New AI architectures demand heterogeneous integration tighter interconnect pitch, higher bandwidth, and power efficiency. And these requirements are driving higher precision, alignment, and process control needs across packaging flows. Benefiting a wide range of the group's product, from TCB, photonics, CPO, flip chip, and mainstream wire and die bonding, and pick and place solutions. Let me provide some color on these specific product areas. First, let's look at TCB. In logic, we delivered sizeable shipments for chip-to-substripe applications, reinforcing our leadership in chip-to-substripe TCB. We received bookings for 4 out of 5 fish-chip-to-wafer TCB tools featuring our fluxless plasma-based AOR technology from a leading advanced logic customer. We are also actively engaging key logic players across multiple programs and we are well positioned for more opportunities as the industry advances towards more complex logic chip architectures. In memory, our TCB tools remain at the forefront of technology development. A key memory player is using a flux-based CCB tool for assembly, and this customer is also qualifying a Fluxus AOR solution for HBN4-16i. Next, we'd like to share an update on photonics. I'm pleased to report that our photonics revenue grew nearly 5-fold year-on-year, benefiting from strong demand for high-speed optical transceivers of 800G and above. In addition, our 1.6T transceiver solution received bulk orders from leading optics suppliers in the data center networking supply chain. This demonstrates strong traction for optical transceiver solution as a market leader. I would like now to touch a bit on cold package optics for CPO before we move on to the next item. CPO represents a paradigm shift in AI system design, bringing optical engines closer to compute silicon to reduce electrical losses, lower power consumption, and improve system efficiency. Our CPO solutions enable high precision bonding to integrate diverse components, including fiber array unit, microlens, electronic IC, and Photonet EyeSafe into a single high-performance optical engine. We have deepened our engagement with multiple leading global players, and this positioned the group well to gain market share as CTO adoption accelerates. Looking now at our flipchart solutions, I am pleased to update that they registered strong bookings growth both QonQ and YonQia. This momentum is coming from two areas. First, there is an accelerated adoption of 2.5D packaging for larger AI package sizes that is driving a steady pipeline of opportunities for embedded bridge-type bonding solutions for both chip-on-wafer and chip-on-panel solutions. Second, we also gain traction in panel-level fan-up for radio frequency and power devices. Both these areas are well served by our flip-chip solutions, which combine cost efficiency, scalability, high placement accuracy, and strong throughput. And finally, in our mainstream business, we register strong bookings for both SEMI and S&T. SEMI's mainstream business benefited from sustained utilization as leading global IDMs and OSETs. alongside rising demand for AI data center power management solutions. In China, there was increased demand for wire and die bonding applications. For SMT, we achieved record bookings in Q1, driven by strong customer demand across AI servers, optical transceivers, and China EVs. In particular, SMT HiFlex high-force solutions for large format bots are a leading choice for AI server assembly. As we broaden our AI customer base, we are fully committed to delivering the highest quality of solutions and services. ASMPG was recently recognized with a prestigious Intel Epic Supplier Award for 2026, the highest supplier recognition award for excellence in business collaboration. This is a reflection of a strong technical capability and deep engagement with our customers. With these highlights, now let me hand over the time to Katie, who will walk you through our group and segment financial performance.

Thank you, Robin. Good morning and good evening, everyone. Before I start, I would like to say that unless otherwise specified, the numbers I'll be referring to today are for the group's continuing operations only. with adjustments made on the non-HKFRS measures. This slide covers our group financial results for Q1 2026. In Q1, the group delivered revenue of $507.9 million, flat Q on Q, but up 32.0% year on year, driven by SMT and SEMI. Group revenue came in above market consensus and was the highest in the last three years. Group quarterly bookings exceeded expectations, with SMT bookings at a record level. Group's bookings reached $727.0 million, up 46.0% Q&Q and 71.6% year-on-year, the highest in the last four years. This strong growth came from multiple products, notably SMT products, Y-bonders and Y-bonders, and photonics. Group adjusted gross margin was 39.5% Q on Q, up 357 basis points due to higher gross margin and revenue contribution from SEMI. The year-on-year decline of 151 basis points was due to a higher revenue contribution from SMP. Groups adjusted all tax declined 4.6% Q on Q, but increased 12.4% year-on-year, largely due to unfavorable FX impact. and from strategic infrastructure and R&D investments, as we have guided for 2026 during our last earnings call. Both adjusted operating profit and adjusted net profit improved QMQ and year-on-year due to higher revenue and operating leverage. Adjusted EPS was at 81 cents Hong Kong dollars, up 118.9% QMQ and 189.3% year-on-year, which was above market consensus. Moving on to the Semi-Conductor Solution segment. In Q1, Semi revenue delivered 274.5 million US dollars, up 12.2% Q on Q and 14.6% Y on Y. Q on Q growth was driven by high-end die-bounders and PCB, while Y on Y growth came in from multiple products, largely driven by AI-related applications. Semi bookings were 309.6 million US dollars, up 22.6% Q on Q and 43.2% Y on Y due to higher demand for Y-bonders and Y-bonders driven by China OSAPs, high-end smartphone-related applications, AI-related power management applications, and optical transceivers. Semi achieved a book-to-bill ratio of 1.13, which marks three consecutive quarters of improvement. Then the adjusted gross margin reached 46.4%, achieving the guidance we set last quarter. Adjusted gross margin improved by 594 basis points Q on Q, but declined slightly by 37 basis points E on E. The significant Q on Q improvement was mainly driven by high volume and favorable product mix. Then the adjusted segment profit was 309.4 million Hong Kong dollars, up 165.9% QMQ and 16.8% year-on-year. The strong QMQ improvement was mainly driven by higher gross margins and operating leverage. Let me move to S&T. S&T QM revenue was $233.5 million, down 11.0% QMQ, but up 60.7% year-on-year. QMQ decline was due to seasonality, while year-on-year increase was due to strong demand from AI servers and China EVs. As mentioned earlier, SMT achieved a record bookings of $417.4 million, up 70.0% QMQ and 101.1% year-on-year. This was primarily driven by strong demand from AI servers, optical transceivers, and China EVs. together with robust China demand arising from global data center expansion. S&P adjusted segment profit was 141.8 million Hong Kong dollars, down 28.3% Q on Q due to lower volume, but it improved young year. Now let me hand the time back to Robin for the outlook and the revenue guidance.

Let me present our Q2 2026 revenue guidance. The group expects Q2 2026 revenue to be in the range of US$540 million and US$600 million. At the midpoint of US$517 million, this represents an increase of 12.2% Q2 and 37.0% B2. Notably, our midpoint revenue guidance has six current market consensus, and it will be mainly driven by SEMI. Group bookings in Q2 2026 are expected to remain elevated for both segments, though SMT will be down Q and Q due to the high base defect from Q1. The continued proliferation of AI expected to drive structural demand growth for both SEMI and SMT in 2026 across multiple products this includes our flagship tcp and hp solutions photonics and cpo to mainstream wire and die bonding and pick and place solutions that enable ai infrastructure deployment looking ahead structural ai driven demand is expected to support revenue growth across both semi and smt in 2026. This concludes our first quarter 2026 presentation. Thank you, and we are now ready for Q&A. Let me pass the time back to Ben to facilitate.

Thank you, Robin. Ladies and gentlemen, we will now begin the Q&A session. To ask a question, please click raise hand on Zoom, and I will request you to unmute. Please limit yourself to two questions each time. And I see a raise hand from Goko of JVM. Goko, please unmute and raise your question.

Yeah, hi. Good morning. Thanks, Ben. And good morning, Robin and Katie. Great results. And also thank Robin for your amazing leadership over the years. So, first question is on memory DTP applications. What are we seeing in terms of bookings and potential for bulk orders for memory PCB? Given that we haven't really seen any big bulk orders in the last maybe couple of quarters now, and at the same time, the R&D progress seems to be quite good on both flux-based and flux-less. And in addition to that, could you also talk a little bit about your engagement with the the bigger memory vendor that the market is talking about, which has largely been using internal DCB tools. Do you see that there is an opportunity opening up with this customer, which will definitely expand your municipal market?

Thank you, Gokul. I think there are a number of questions within your question. Let me address, I think, the first one first. You're asking about memory TCB. bookings and potential for bulk orders for TCB, any bulk order in the last few quarters. The last bulk order that we received was in Q4 2025. We're still confident that we are well-placed in the position, well-positioned to receive orders from memory makers as far as they're ready to to dish out orders for equipment supplier and ourselves. Now, I think your second question is on fluxless, R&D fluxless, how is it going? I think we are making good progress, especially on the logic side. As we have mentioned, we have won four tools in Q1 for COW fluxless applications. We believe this is a start of this particularly exciting program. I think as the industry continues to migrate to more complicated GPU or even ASIC architecture, I think at some point they may have to switch to a chiplet kind of configuration rather than using SoC. And that's where the opportunity to use our TCP Fluxus 247 waiver application will be there. So since now that we are already in, you know, that supply chain, I think we, again, I think, you know, we are really well positioned to capture more opportunities for COW Fluxus application going forward. I believe your third question relates to about the biggest memory player who's used to using internal TCP tools. Yes, I think we are unable to really name or confirm any specific collaboration with any customer, I hope you understand. What I can say is that we are in the process of analyzing an evaluation program with a key memory player. We definitely see this as a positive step possibly in the future, enabling our proof technology for memory as a process standard in the future. So we are excited about this potential collaboration going forward.

Going back to the question on the memory TCP barcode, I just want to We want to say that we want to reiterate that our 10 forecasts is actually of the $1.6 billion is intact. And you're probably referencing to some of the recent adjustments for the next generation of GPU and HPM4 roadmaps. They are leading to some maybe, you know, quarter to quarter, there might be some variability in the times of a customer's decision. but our activity level remains very healthy, but it could be uneven from quarter to quarter.

Got it. That's very clear. Second question that I have is on your photonics, obviously very strong growth, 5X kind of growth. Could you help us size the like photonics business I think we've said it long back that it was probably under 100 million dollars annual run ballpark or is it still much bigger than that yes I think Goku is very good when we transition yeah maybe answer a photonics first Goku go ahead go ahead Robin I'll ask the photo plate up there

Yeah, your line is breaking up actually, Goku.

Okay, anyway, I'll answer the photonics question first, Goku. Yes, indeed, when we look back in a deep dive into the photonics and the CPU market recently, actually the temp looks even more promising than before, right? But we are not ready to disclose the temp at this point in time. But I can tell you the TEM looks bigger than before. So when we combine the optical transceiver TEM and the CPUO TEM, I must say that the TEM looks interesting. We are definitely bringing a lot of attention in this area. And fortunately, I think for photonics, we are already a very strong player in the optical transceiver market. And I think for the CPO, you probably will follow up with a question on CPO as well. I think we're well positioned with some key players already. Our solutions, I would say, have been designed with a number of key CPO players. So when that adoption takes place, I think we're in a good position to capitalize this opportunity for CPO. We'll be back to you for second question, please.

Yeah, thank you very much. So, I think just to follow up on that CPO comment, Robin, the market understanding, obviously, is that hybrid bonding plays an important role in CPO for the EIC-PIC attach. And obviously, your hybrid bonder is still in qualification, especially the second generation. So, could you talk a little bit about the progress there? And maybe also help clarify, I think there are multiple die-attack steps, not just hybrid bonding, I think beyond that as well. So, just want to understand, like, what is the span of, like, ASMPT environment when it comes to CPO, just beyond the EIC, PSC attach?

That's right. I think we also said in our MP&D&A, we are participating in several key high-precision bonding areas for CPO, one of which is FAU attached on PIC. The other one is what you mentioned, the static PIC on PIC. The third application we can think of is micro-lens attached on PIC. and also finally the whole optical engine on the substrate so we have solutions actually for all these key bonding solutions that's why we feel particularly quite excited about the cpu market and as i said earlier i think the 10 looks interesting maybe not in the initial years but i think the cpu will accelerate probably from 38 onwards And the temp, in fact, looks very interesting for CPO. So these are the areas we are participating. Now, back to your question on EIC and PIC, hybrid bonding is one solution. I think CPO players are also exploring whether they can use TCB, you know, for their application as well. So that would be also very interesting market segment for us.

Understood. Thank you very much. I'll go back to the queue.

Thank you. I'm seeing a next raise hand from Daisy. Daisy, could you please unmute yourself and raise question?

Yeah. Thank you. And my first question is regarding the OSAP CAPEX. So we saw that the OSAP CAPEX is getting higher and higher for this year. So which area do you expect to record the highest growth for the year based on their current order visibility and I mean the regions and also China is the largest revenue contributor last year around 41% of your total revenue within China do you see that still advanced packaging I mean your TCB and other hyperbounding tools grows, outgrow the mainstream, or mainstream for this year is also very strong. That's my first question.

Thank you, Daisy. In terms of, I think your first question was in terms of OSAP, but yes, in fact, we are experiencing a strong demand, I would say, on the OSAP front, mainly coming from a wire bond, die bond, because of the AI demand for infrastructure. I think we have been We have been talking about this for a few quarters already, but in Q1, the demand is particularly very strong. What is driving this is really power applications that go into data center. So this requires new power devices, and because of that, new capacity is required. So that's driving a lot of our wire-borne and die-borne. And also not forgetting SMT as well. We mentioned that SMT had a very fantastic booking in Q1. Highest so far in history. Largely also driven by very several boards. And in there, there are a lot of power packages using SIP tools from SMT as well. So all this infrastructure deployment and spending are driving a lot of mainstream tools, both in semi as well as in SMT. Now, I think your second question is about China region, whether China region, whether AP growth, is it faster than mainstream or is it still very strong? I think typically in China, I would say, especially on the semi side, the mainstream side are definitely stronger than the AP side. However, on the S&P side, the rest of the region is still stronger than the China side. So there's a mix in terms of China demand coming from Aosemi and S&P 7.

Thank you. Thank you, Robin, for the explanation. And my second question is also regarding the optics in photonic solution. So you mentioned that the revenue delivered fivefold increase year on year this quarter. And may I ask why we suddenly saw a very strong pickup in this segment? And I believe you mentioned that regarding the booking, the photonic solution is both in your semi-solution segment and the S&P segment. May I ask what tools for the SMT and what tools are within the SEMI solution?

Yeah. I think it's really all AI-driven, data center-driven. As you can imagine, as the industry continues to increase the silicon compute, the transmission side has to match that capability as well. So that drives a lot of growth. presently in terms of optical transceivers, and the industry is moving from 400G to 800G to 1.60, and we have very, very good solution for optical transceivers. This segment has been seeing steady growth for a few quarters already. We've been reporting that, so it's nothing new to us. We have been saying that optical transceiver is a good market for us. We have been quite dominant in that space. We've been winning market share as well. So that's something that we are experiencing from many courses already in terms of photonics. Now, your second question is for both segments, indeed, are participating in this area. Now, for SMT, you can imagine in the optical transverse, there are many, many components. Some require higher precision than others. So for those components that require higher precision bonding, they use our SEMI tools for that purpose. For those that do not require a lot of precision, they use our SMT pick-and-place tool to bond those components. So both segment SMT and SEMI are actually benefiting from this search in demand for optical transceivers.

Okay, got it. Very clear. Thank you.

Thank you, Daisy. Next, I will request KB. from CT to Emil.

Hello. Hi. Good morning. Thank you for taking my questions, and especially thank Robin for the past leadership. So I have two questions. Number one is that I would like to get some more detail on the booking guidance outlook. As you see, right now, our booking is back to, especially like S&T, back to record level. So can we guess, for the coming quarters, do we have a rough sense of a breakdown for booking into the, say, Semi and S&T? And specifically, which region are we seeing the most growth from? And also, I think last time we mentioned we're seeing some improving visibility. Is this still the case? So that right now, approximately how many months of visibility do we have right now?

Thanks, Kevin, for the question. I think you're referring to, okay, now we, as you know, we don't really have a guide, but we can definitely give you some colors. we see bookings in Q2 this quarter to remain elevated. Bookings may, however, moderate Q on Q, but still expected to grow strongly on a year-on-year basis. We believe in large part we continue to benefit from the circular demand for AI-related applications. and in the infrastructure spending, plus, of course, overall improving market condition as a whole. I'll give you a little bit of color as to, you know, the segment booking. Now, for semi, Q2, semi bookings are expected to increase Q on Q and more significantly higher on the year-on-year basis. However, for S&T bookings are likely to decrease due to high base effect. As we have reported, Q1 booking for S&T was a record high. So we don't expect the current level to continue on a Q1 basis. However, having said that, S&T bookings are also expected to be higher on a year-on-year basis. Now, you asked about visibility. Looking ahead, while we are definitely more optimistic about business compared to some quarters back, there is less visibility for the second half of 2026 for the whole group. I think this is pretty normal for business. We can't really look too far away. So I hope I answered your question, Kevin.

Maybe very quick, I think Kevin was asking about the booking by region. And Kevin, we actually sort of answered it already when we were talking about when I was addressing David's question. Overall, the regional mix will stay relatively stable, but like what Robin was mentioning about the strength of China OSEC, so there will be a little bit more booking from China. But overall, it's quite steady.

Yeah. All right. Thank you, Rob and Katie. My second question is on the EMIP outlook. I think recently there has been some demand pickup on this technology. I'm just wondering what type of tool are addressing this kind of demand and also our position in the share allocation in this type of technology. Do we need some special type of PCBs that require customization as well?

Yeah. I think Kevin, I can't hear you for a bit. I think you mentioned EMT, right? Yes. Okay. So a couple layers we have to understand on the EMT program. If you are talking about embedded type bonding, we believe this is on the last substrate probably 510 by 500 unfortunately the TCP we are not ready for that yet in terms of that kind of panel size because it will take some time for us to deliver a tool of that size for TCP but however if this image program takes off and we believe it will you know we are already this particular customer is already using our tool for COW application. So they have to, I mean, if this program proliferate, right? So they will probably need also more tools to place a lot more components on the EVT substrate. So I think we will benefit from that particular area, that means on the COW tools, which we are already in. But if you're talking about embedded bonding for the unity, we are not there yet.

Great. Great. Thank you.

Okay. Thank you, Kevin. Next, I will move to Sunny. Sunny, could you please unmute and raise your question?

Hello. Could you hear me okay?

Yeah, very well.

Thank you very much for taking my questions. Congrats on the very good results. And thank you, Robin, for all your leadership over the years. And so my first question is on your opportunity on logic, especially on chip-bound wafer. And so, Robin, earlier you mentioned the chip-bound wafer migration for TCB could be somewhat related to chipless. That was a bit surprising to me because I always think that the – Chip-on-Wafer migration for TCP should be related to larger package. And so how should we think about from here? You just secure for tools from a leading edge boundary customer. How aggressive are they in migrating to TCP for Chip-on-Wafer from here? How should we think about when you may get another bulk orders? Would that be in second half or would it need to wait until maybe 2027?

Okay, thanks, Sunny, for your question. Now, when I mentioned about chiplet, between chiplet and SOC, when the GPU architecture is using SOC, there is less need to use TCP to place the SOC onto the interposer because you don't need that kind of precision. But when you go into SOC, SOIC kind of packaging, you need more precision to put those chips onto an interposer. So that's why TCB will be needed going forward. So I think as the industry migrates from an SOC structure to an SOIC structure, we see increasing use of TCB for that application. However, having said that, we have been telling you guys that for 2026, the number of tools for COW will not be significant because it all depends on the migration to the next chip architecture. So we believe 36 will not be high for COW, but going forward in the years to come, I think there's a meaningful time over there for COW application for logic. Now, how aggressive is this migration to COW? Yes, I think I already answered your second question as well. So 26 would not be high, but 27 would be meaningful.

Got it. Thank you, Robin. Also, if I may follow up on my first question, also, these leading-edge logic customers, they are already working on the follow-up solution beyond COAS, meaning COPOS. So from your perspective, for this COPPOS, it will start from solar form factor, 310 by 310. And so from your perspective, are you seeing any signs of clients trying to pull forward the technology development? And for COPPOS, how should we think about your overall opportunity, especially around chip panel?

Yes, I think we are, as we speak, we are developing tools for COP. So we deal to deliver demonstration tools, you know, sometime this year. So that part we are already engaged with the key advanced logic customer. So that's another exciting area for TCB. So if you look at TCB in general, we have a wide customer base. We have a very diverse applications. We don't just depend on certain applications, but a very diverse application, both on the logic side as well as on the HVM side. So certainly, panel packaging at COP level is an interesting development for us as well.

Thank you, Robin. Also, if I may, I do want to ask a question on S&P. Also, any update on your strategic review for the division, and have you identified a specific option that you want to go for, and what would be the timeline?

To answer your second question, no. I think we have seen the progress of evaluating, but certainly we have received some interest in the S&T business. Got it.

Very clear. Thank you.

Thank you, Sunny. Next, I would like to request Arthur. Arthur, please unmute.

Hi, Robin. Can you hear me? Yes. Congrats. Strong results and guidance. I will have two questions. Number one is on the CPO. You just mentioned that you have a deep dive into the whole process, right? And you mentioned that time is 28. I want to company, that's the optical engine shipment or that's your equipment shipment timing?

Shipment time. We are referring to our equipment time for CTO. It will be interesting from 2018 onwards. Okay.

Interesting from 2018. Because what we heard from the supply chain is that actually some of the CPU equipment already kick off so can you share more color on your target for example the is for the GPU style maker or is for the ASIC style maker I think I think the clientele that we have probably serving both other I don't know we can really differentiate whether it's ASIC or GPU yeah

Okay, got you.

Okay, okay. And my second question is about the HBM. So, thanks for sharing this good progress. Do you think, you know, for the HBM 4 and 4E, actually, you can continue to... So, my question is about the HB progress, hybrid bounding progress, and then you're So do you think the visibility is getting longer and longer in the HBM side?

Not really. I think the roadmap from our customers are pretty clear. But like what Kerry said, if there is adjustment to the roadmap, of course, the demand will vary from quarter to quarter. But however, in the long run, I think we are still sticking to a very significant time of $1.6 billion in 2028. And we intend, we have never wavered from our aim to target 35% to 40% market share for the whole CCB market.

Thank you. And finally, a question to Petit. On the modeling perspective, We know there's a strong booking, right? But how about your components prior lead time? Is it getting longer or is it remain, you know, comfortable? How should we think of the, you know, the real bidding seasonality of this year? Do we see any constraint?

Yeah, Arthur, thank you for the question. Maybe I'll answer it by segment. On the S&P front, I'll go to that first. Though we have very, very strong booking, as we've mentioned a few times now, the conversion, the revenue conversion is somewhat impacted by the lead time of our suppliers. The team is actually actively addressing this, and we expect that in the second half, this kind of situation actually will get better. On the semi side, I mean, there's always the kind of tight supply chain, especially given all the, you know, uncertainty around the globe. But so far, we will say that we are managing the supply situation just fine.

Okay. Thank you. Okay.

Thank you, Arthur. Next, I would like to request Alex Chang to unmute. Alex, please go ahead. We can't hear you, Alex. I think Alex will have some technical problem. Maybe we'll go to the next one. Next, I would like to invite Donnie. Donnie, could you please unmute?

Thank you, Robin, Katie, Ben for taking my question. Can you hear me? Yes, Tony, go ahead. Thank you, Robin. My first question is regarding to your NEXT business. So I'm wondering if that, I mean, I remember in the past few years, NEXT, one of NEXT's major business was plating tool, and it can be sold to some PCB companies. And recently, I think PCB companies or substrate companies are expanding capacity due to they are running out of the fab. So I think I just want to ask is that if NEXT can generate some revenue momentum recovery in the future, are you still considering to sell this business? And also in terms of timeline, when are we expect that we can dispose Seedplace and NEXT, these two businesses in the future? Would that be in second quarter? So this is the first question.

Yeah, I think let me answer your second part of the question first. We don't have an exact timing for you. Whenever there is a deal, we will announce it. But so far, we have nothing to mention here. Now, you're talking about next. Yes, they are into deposition. When we make a decision to divest next, we don't just look at financial alone, we look at strategic fit to our whole business. So we feel that we want to divest next because we want to focus more on the back end. Next is not exactly in the back end. Next is what we call on the middle end. So that's the reason why we make the decision to divest next. Not because of purely on financial, but because of strategic fit.

Okay, I understood. Just one thought on this. So when you decide to divest next, have you already seen the pickup of the orders from those PCB and sub-trademakers?

I would say yes. As I said, my decision is not based on financial. It's really more on strategy.

Okay, no problem. Thank you. And my second question. It's regarding to the CPU. So my understanding was that our micro, for example, can be used for laser bounding or as you say, maybe micro lens bounding onto the IC. I guess that's the major business still today. But I'm also wondering if you can quantify a little bit more on the 5x growth in the first quarter this year. It's like what kind of pace in the last year and also In terms of the inspection, as you know, for CPO, the FAU alignment with optical engines is also very critical and it also requires inspection. So we have AA tool, we have AOI tool. I'm wondering if we can explore some of the business opportunities there or we are mainly staying at the die-bonding market. Yeah, very good question, Tony.

Actually, when we did dive into the photonics business, right, so we also think that maybe, you know, we shouldn't just focus on just on the die bonding because there's indeed a lot of opportunities in the photonics, in the CPU, as well as the optical transceiver business. So too early, I don't have any concrete answer for you at this point in time. But coming back on the FAU, yes, I think Amucra has a solution actually for FAU attached onto the PIC. So as I said earlier, as far as CPO is concerned, we feel good. We feel excited about this particular development. So we will probably have more to share as we move towards the quarters in the year to come.

And in terms of 5x growth, can you elaborate a little more? It's like what kind of base we are growing from in capacity?

Yeah, I would say, Donny, right now it's still a small base. But again, in terms of growth, if it was a significant growth, we thought it's worth to highlight to you guys as well that we are making good progress in terms of optical transceiver as well as CPU. Okay, got it. Thank you, Robby. Yeah.

Okay. Thank you, Donny. I'm afraid this is the time that we have. And now I'll pass the time back to Robin for his closing remark.

Yeah. So thank you for a very good discussion today. So let me take a step back and say that this quarter really marks an important point for ASMPT. We delivered one of the strongest quarters in recent years. not just in terms of revenue and bookings, but notably also how broadly AI is translating into more opportunity for ASMPG. From PCB and advanced packaging to photonics, CPU and mainstream platform, we are indeed seeing AI driving demand across multiple products and customer segments at the same time. I would say this breadth matters because it reflects the increasing complexity of AI system architecture, and the value of back-end manufacturing, an area where our range of solutions, our skill, our capabilities are allowing us to participate meaningfully across the technology space. We are indeed very encouraged by the operational leverage we have demonstrated this quarter. Our adjusted margins improved sequentially, supported by product mix and volume, and our results streaming ahead of market expectations. So looking ahead, we continue to see AI as a multi-year structural driver for our business. With strong engagement across advanced logic and memory, photonics and CPU and mainstream wire and die-balling, and SMT pick-and-play solutions, we believe SMTD is well-positioned to support this next phase of industry growth across both SEMI and SMT. So once again, thank you for your interest and your continuous support. We look forward to updating you more in the next quarter. So this concludes our call. Thank you and take care.