Asmpt Ltd

Good morning, ladies and gentlemen. I'm Ben Poh, Head of Investor Relations. And today I will be moderating the call. On behalf of ASNTT Ltd, welcome to our second quarter and first half of 2026 investor conference call. Thank you all for your interest and continued support. Please know 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, business, and finances during this call. Such forward-looking statements could involve known and unknown uncertainties and risks that could cause actual results, performance, to defer 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 second quarter and the first half of 2026 and provide outlook and guidance for the following quarter, while Katie will provide details on the financial performance. Now, I will hand the time over to our Group Chief Executing Officer, Robin.

Robin, please. Thank you, Ben. Good morning, everyone. Thank you for joining us today for our second quarter and the first half of 2026 Earnings Conference Call. Before we begin, I'm sure you are aware of the news that I'll be stepping down as Group CEO on 11th August 2026. So this will be my last quarterly earnings call with all of you. I took over as Group CEO at the very height of the COVID pandemic in May 2020, arming the first investor conference call, which was Q2 2020, and it has been quite a journey. I'm proud of what we have achieved as a business. I look forward to the company progressing on its transformation journey as it sharpens its focus on the backend packaging business. A business that has experienced rapid growth over the last few years. I'm grateful for your trust in me over the years as we've connected this journey together. Looking to the future, I'm confident that the new CEO, Mr. Gasol Herak, will continue on this transformation journey and bring ASMPT to even greater heights, given our technology leadership, strong foundations, and great people. Thank you for your continued support. Now, let me proceed with the earnings score with some key business highlights for the first half of 2026. For the first half, I'm pleased to share that ASMPT achieved strong revenue and bookings driven by AI and the recovery in our traditional mainstream business. As AI capabilities advance, semiconductor architecture requirements continue to expand beyond compute to continuous planning, workload orchestration, memory access, and Realtime Data Movement. These developments have placed increasing demands on semiconductor manufacturing to support workloads from data centers to edge devices. Next, SMP achieved record bookings largely driven by strong demand from AI servers. AI servers continue to be a significant source of demand with accelerated adoption of SMPs iFlex i4 solutions SMT bookings were also driven by demand for optical transceivers and China's EV segment Semi AP bookings doubled year on year due to photonics and TCB This highlights ASMPT multiple AP solutions which are key enablers for present and future AI infrastructure At the group level, our first half revenue increased 18.9% half on half and 42.5% year on year, mainly driven by mainstream and photonics. In photonics, we saw customers ramping up production of high speed optical transceivers for 800G and beyond. In mainstream, the group business experienced some recovery from traditional application. such as consumer, industrial and automotive EVs. Looking at our gross margin, its growth was driven mainly by S&T in Q2. And finally, we are pleased to report that our revenue and adjusted EVs beat concessors in Q2. Now let's look at the group business highlights. First, let's start with advanced packaging. This remained a strong growth engine for us in the first half, with AAP revenue growing 17% year-on-year and contributing 30% of group revenue. TCBs, S&T High Precision, and Photonics Solutions were the largest contributors within the AAP portfolio. In TCV, we expect TAM to expand beyond US$1.6 billion by 2028 due to growing AI investments and increasing packaging intensity, driving greater demand for TCV solutions. In logic, although momentum for Group's C2S solutions remains strong, This was supported by repeat orders for larger compound-dyed TCP tools from OSAP partners of the leading advanced logic customers. In July 2026, the group received new bulk orders for more than 15 C2F TCP tools from OSAP customers. In CDW, we secured a bulk order in Q2 2026 from a leading global IDM. for advanced CPUs to support client computing and AI inferencing. We also delivered ultra-fine-pitched TCP tools to the leading advanced logic customers. In memory, the group continues to secure repeat orders from HVM manufacturers. However, the timing of some customers' new-to-purchase The group also entered into an exclusive joint evaluation program with a key memory player to establish its technology as a preferred production standard. Next, panel-level packaging is emerging as a potential growth driver for ASMPT, as the industry seeks to improve throughput Scalability and cost efficiency. Beyond TCV, we saw strong performance from our photonics solutions. Customers are ramping up production on high-speed optical transceivers for 800G and beyond as demand accelerates for bandwidth-intensive, low-latency AI workloads. As a result, semi-trackable optical transceiver solutions revenue almost tripled year-on-year to approximately US 75 million in first half 2026. The group is confident of further growth for the rest of 2026. In co-opted package for CPO, the group continues to deepen its engagement with multiple leading global CPO players, positioning well to gain market share as CPO adoption accelerates. The group offers the most comprehensive range of CPO solutions spanning ultra-high precision photoex, TCV, and hybrid bonding. I will also elaborate more on this in the next slide. Our semi-mainstream business experience significant growth supported by high utilization at leading IDMs due to improving demand for power management requirements for AI JR centers and industrial applications. In China, revenue and bookings were particularly strong with wire bonding and time bonding too demands supported by ongoing AI infrastructure expansion and high offset utilization. Our S&T bookings hit record highs for Q2 and first half of 2026. AI servers continue to be a significant source of demand with accelerated adoption of S&P high-flex high-force solution for large format board assembly. And finally, beyond AI applications, I'm pleased to share that the group's mainstream business also experienced some recovery from traditional end applications such as Consumer Devices, Industrial Systems, and Automotive Indies in China. Let me now turn to photonics as shown on this slide. We have built a strong position across the entire photonics value chain, extending from pluggable optical transceivers to CPO. Our comprehensive portfolio spans SMT, advanced packaging, and ultra-high precision photonics assembly tools. In the current optical transceiver market as shown on the left-hand side of the slide, SMTT supports multiple critical assembly steps. Our SMT placement solutions are used for digital signal processor and passive components attached. Our high-end photonics and micro solutions Our solutions can deliver placement accuracy down to sub-micron level, a key technological differentiator. Looking ahead, the industry is transitioning towards CPO solutions to address increasing bandwidth and Power Efficiency and Latency requirements of AI infrastructure. ASMPT is well positioned in several key assembly sets. As you can see from the right-hand side of the slide, these include EIT on PIC integration through hybrid bonding and TCP solutions, optical assembly assembly using fixed-shape mass-report solutions, and fiber-attached unit and micro-lens assembly enabled We are affected about the potential in photonics, which represents another important role factor for ASM2T. With these highlights, let me now hand the time over to Katie, who will walk you through our group's segment and financial performance.

Thank you, Robin. Good morning, good evening, everyone. Let me take you through the group's financial performance. I would like to reiterate that, unless otherwise specified, the numbers I'll be referring to today are for the group's continuing operations only, with adjustments made under non-HKFRS measures. This slide covers our financial results for the first half of 2026. The group delivered revenue of $1.14 billion in the first half of 2026. representing an increase of 18.9% half-on-half and 42.5% year-on-year, driven by CEMI and S&P. Group bookings reached $1.63 billion, representing growth of 68.1% half-on-half and 85.1% year-on-year. Both S&P and CEMI registered significantly higher bookings during the period. Book to bill was 1.43, the highest since the first half of 2021. In the first half of 2026, group adjusted gross margin was 41.2%. This was 441 basis points higher half on half and 86 basis points higher year on year, driven by a better gross margin from both CEMI and S&P. Group adjusted operating expenditures was 2.42 billion Hong Kong dollars, Up 2.4% half-on-half due to higher volume. It was also up 15.4% year-on-year due to higher volume, unfavorable effect impact, and strategic infrastructure and R&D investments as we announced at the beginning of the year. Both adjusted operating profit and net profit improved half-on-half and year-on-year due to higher revenue and operating leverage. In the second quarter, we delivered revenue of 630.0 million U.S. dollars, which exceeded the upper end of our guidance. It is grouped by 24.4% Q&Q and 52.1% year-on-year, driven by both CENI and SMT. Group Q2 bookings were 903.6 million U.S. dollars, up 24.8% Q&Q and 97.6% year-on-year. Significantly better than anticipated for both SEMI and SMT. In particular, SMT's bookings came in much stronger despite a high base effect in Q1. Group Q2 adjusted gross margin was 42.5%, up 302 basis points Q on Q and 284 basis points year on year. Group Q2 adjusted operating profit was HK$847.0 million, up 114.1% QonQ and 268.8% YoY due to higher gross margin and operating leverage. Groups adjusted net profit was HK$637.5 million, up 90.2% QonQ and 253.9% YoY due to higher operating profit. Adjusted earnings per share was $100.53. Moving on to the semiconductor solution segment for the second quarter. Semi delivered a revenue of $369.1 million, an increase of 34.9% QonQ and 56.1% Yangye. QonQ and Yangye growth were driven by photonics for AI-related applications and wire and die binders for both AI and consumer-related applications. Semi Q2 bookings were 428.1 million U.S. dollars, the highest since Q1 2022. Bookings grew by 39.0% Q on Q due to ride and die bounders and photonics, and up 125.9% year on year due to ride and die bounders, photonics, and TCB. Semi's book to bill ratio in Q2 was 1.16, which has continued to expand for the past four quarters. Q2 adjusted margin for semi came in at 46.5%, up 10 basis points Q on Q and 150 basis points Y on Y. Q on Q increase was due to higher volume offset by product mix, while Y on Y increase was largely due to higher volume. Adjusted segment profit was HK$603.2 million in Q2, up 94.9% Q on Q and 170.1% Y on Y. due to higher adjusted wealth profit and operating leverage. Next, let me move to the S&P solution segment performance for the second quarter of 2036. S&P delivered a strong Q2 revenue of $260.9 million, up 12.1% Q&Q and 46.9% year-on-year. It achieved record bookings of $475.4 million, up 14.3% Q&Q and 77.6% year-on-year. Both revenue and bookings growth were largely driven by strong demand from AI servers. Q2 SMT adjusted gross margin was 36.8%, up 561 basis points Q&Q and 429 basis points year-on-year, the highest since Q1 2024. Q&Q increase was due to favorable product mix and a higher volume. while year-on-year increase was larger due to higher volume. Adjusted segment profit was HK$284.8 million in Q2 2026, up 100.8% QMQ and 386.1% year-on-year due to higher gross profit and operating leverage. Now, this slide highlights ASMPT's revenue breakdown by end markets. The computer end market was the largest contributor to group revenue at approximately 33%, up significantly from around 10% in 2024, driven mainly by SMP solutions, PCB, and photonics applications. Please note that photonics applications were reclassified from communications end market to the computer end market for both first half of 2026 and first half of 2025, reflecting the increasing alignment with AI-related applications. The consumer end market was the second largest contributor to group revenue at approximately 18%, mainly from groups' traditional mainstream business. The automotive end market contributed almost 12% to groups' revenue. Revenue growth was driven by EVs in China, while automotive for the rest of the world remained soft. The communication end market contributed around 10% to group revenue, mainly coming from high-end smartphone-related applications. Lastly, the industrial and market revenue contribution was up marginally from 8% to 9% due to gradual recovery in industrial activity. Now, as you can see from this slide, we are truly global business, partnering with customers across all major regions. China remained the largest market, contributing 42% of group revenue in first half 2026, driven by Y and Y bounders, while share of revenue from Asia outside China declined from 37.9% to 36.2%. Share of revenue from both Europe and America's decline in the young year from 23.7% in first half 2025 to 21.3% in first half 2026. The group continued to maintain a low customer concentration risk with the top five customers representing approximately 19% of total revenue in first half 2026. We have an existing dividend policy of distributing about 50% of the profits as dividend. For the first half of 2026, with adjusted EPS at HK$1.94 for continuing and discontinued operations. The board has recommended an interim dividend of $0.97 per share. With that, let me now pass the time back to Robin for next quarter's revenue guidance.

Thank you, Carrie. Let me now turn to our Q3 2026 revenue guidance. The group expects Q3 2026 revenue to be in the range of US$630 million and US$690 million. At midpoint, this represents an increase of 4.8% year-on-year and 46.3% year-on-year, exceeding current market consensus, despite longer lead times for certain materials. Following a very strong Q2, the group still expects Q3 2026 booking to grow by a high single-digit percentage sequentially, mainly driven by TCE and photonics. The proliferation of AI will continue to drive structural demand for advanced AI applications and computing needs, benefiting the group's products. Our AP solutions are able to address complex technical requirements across the AI value chain, while our mainstream solutions can support the demands of extensive AI infrastructure build-up. Beyond AI applications, we also see continued demand for some traditional mainstream applications. The group remains confident of revenue growth across both Semi and SMT in 2026, despite longer lead times, as mentioned above, and customers' dynamic AI product rollout schedules. This concludes our second quarter and the first half of 2036 presentation. Thank you and we're now ready for Q&A. Let me pass the time back to Ben to facilitate it.

Thank you, Robin. Ladies and gentlemen, we will now begin the Q&A session. To ask a question, please click with hand on Zoom and I will request you to unmute. Please limit yourselves to two questions each time. May I request Borko to unmute and raise your question?

Yeah, hi, good morning. Thanks, Ben. First of all, thanks, Robin, for your leadership and good luck in your retirement. Maybe first question on PCB. It looks like memory PCB equipment are quite slow in first half of the year. just looking at your career revenue momentum is down quite a bit around here so could you talk a little bit about when are we expecting the memory PCB shipments to really start picking up really fully especially given the order status seems to be still quite good so feels like it is very much a timing kind of gap and is that the main driver for much stronger Q3 kind of momentum. And also on TTV, the 50 chips to substrate orders from OSAP that you highlighted. Could we also talk a little bit about the delivery schedule for these 50 tools? How quickly do you expect to recognize them in revenue?

Okay, thank you, Gokul, for your well-wisher testimony. Thank you very much. I think your first question is on memory and also follow up with what you expect GCB memory to pick up since the orders look muted. Now let me answer your first question first. Now if you look at the industry as a whole and according to what is out there in the market, the reports that are out there by the industry experts, it seems that HBM We also understand from this report that customers are also taking a little bit more time to make upgraded HPM4 technical specifications. Now, this obviously has implications on the product launch schedules, which we also highlighted in our outlook as well, and definitely has an impact on customers' purchase divisions for HP and TCP tools. But having said that, from our own perspective, we continue to secure Repeat orders from HBM manufacturers. In stock 2, with one of these customers, I'm also pleased to announce that we've also been deployed to HBM 4, 8 high, in high volume manufacturing. At the same time, we also are having low volume manufacturing with multiple memory makers for HBM 4. with our tools as well. Last but not least, we also announced in MD&A that we have entered into a JEP with a key memory player for advanced memory packaging, particularly for HPM5. So these are some of the developments from our site that are very promising for HPM business. I think your second question is on TCB orders, right?

Yeah, so the CQS orders, the CQS 52, any delivery schedule?

Yeah, I think you understand that for TCB 2, typically the lead time is a bit longer than the traditional tools. Not counting the longer lead time for certain materials as well. So we... Thank you very much. Second question is on the photonic side which is seeing very strong growth from pluggables.

Can you talk a little bit about as we transition to CPO, how much value capture does ASMPT have? Let's say it's not one-on-one in terms of the comparison, but just to understand the transition from, let's say, a pluggable-based solution to a CPO-based solution, how much of a value increase does ASMPT expect when a lot of it is much more final pitch? But at the same time hybrid bonding is probably one area where you're a little bit kind of behind the market data. So I just wanted to understand how that value capture expands if you go from plugables to CPO and also are you starting to see CPO related orders also increase or most of the upside that you're seeing right now is coming primarily from plugables?

Okay, let me answer your probably the last bit of the question. CPO is still small at this point in time. We believe, from the packaging equipment standpoint, probably the inflection point would be somewhere between 27 and 28, more likely 28 for CPO. So most of the volume that we are experiencing right now to them are what we call flexible optical transceivers, which we also have a very strong position over there. Now, in terms of CPO, we are confident, obviously. Omicron is very well positioned for CPO market. At the same time, even now, we are deeply engaging very key customers in the CPO side of things. So when CPO picks up, as I said, probably in 2027, 2028, I think we are well positioned to capture the market going forward. Now, in terms of solution, we put some pain to root to to show you what we can participate on the CPO side of things. There are a number of applications, very key applications there, which our solutions are well fitted, well suited for those very high precision placement kind of bonding requirements by our customers. So I think overall, I think we're confident of catching a good market share of CPO market.

Thank you, Coco, for your questions. And I'll move on to the next. Raise hand. I would like to request, Tani, could you please unmute yourself and raise your question?

Yeah, sure. Thank you. Good morning. And thank you, Robin, for all your leadership and contributions over the last few years. Wishing you all the best and exciting new chapter ahead. So, my first question will be on the Thank you, Sunny. I think we said quite a few times that the way we view chip to wafer

For current year, we have been saying that chip to wafer demand will be still lower than chip to substrate. But we have started to shift already chip to wafer solutions with AOR to the leading advanced logic customer. Now the way we see chip to wafer development is this. Now it all depends on The next generation of GPUs, we believe that the next generation of GPUs may go into chiplets. So that's where our PCB tools for chip-to-waver will be deployed. Because when it comes to chiplets integration, the die structures are very different from the SOC. So for that reason, a chipless kind of architecture require a TCB for chip to wafer solution. So we're looking forward for that to happen. And then when that happens, chip to wafer solutions or TCB solution will start to become in a more meaningful manner.

Thank you, Robin. Sorry, let me quickly follow up if that's okay. And so in terms of the potential opportunity from GPU migrating to your chatbot. Do you think that opportunity may still come through in 2027 or do you think based on the current engagement with the client that may come a bit later?

They have been using our tools for testing, qualification and so forth. So we believe there is a certain amount of urgency to start to use our C2 wafer tools. So we said before, I think 2027 could be the year whereby we see more demand for C2 wafer tools compared to 2026.

Got it. Thank you. And my second question will be on China. And China obviously grew a lot in the last 12 months by about 50% year-over-year for first half of this year. So I wonder what's the key drivers for strong growth? Is it still mostly coming from traditional or we start to see a good progression on the advanced packaging side? And in the coming maybe two to three years, how do you think about the overall potential from China for advanced packaging given the very aggressive investment for linear logic and memory? Do you think potentially China could be maybe larger than foundry idea and memory overall?

Now, let me talk about the mainstream first. Yes, I think if you look at the MDA, we have been saying that the traditional mainstream businesses have been seeing recovery momentum. These are mainly coming from wild-born and die-born. The traditional wild-born and die-born are coming from the China side. On the adaptation side for these tools, they are typically consumer-driven. EVs, and so forth. For sure, the China mainstream business is on the recovery path. In terms of advanced packaging, they are still lower than the rest of the world, but we believe that this momentum in China continues to increase over time.

Got it. Okay. Thank you.

Thank you, Daisy. Sorry. Thank you, Fanny. So next I think Daisy's hand is raised. So I would like to request Daisy to unmute and raise a question.

Thank you. And congrats on the strong result. And Robin, wish you all the best for your retirement. My first question is regarding hyperbonding. And you mentioned that hyperbonding has moved to the sampling stage. Could you share us with possible timing that when you expect that it could be qualified for the membrane and the logic customers respectively?

Yeah. Thanks, Daisy. Now, hybrid bonding, yes, we are confident of our hybrid bonding solution. As we have highlighted before, we believe our second-gen generation PHP solutions are very competitive, we'll say. In terms of certainty metrics like alignment precision, bonding accuracy, footprint efficiency, and also UPH, we still have the view that hybrid bonding inflection point could be steered from our perspective across a couple of years down the road, maybe 29, 30 kind of time frame or even 31. So it's very dynamic, so we can't really put a But what we do know on the flip side for TCP is that there is a possibility that the memory chip stack height for HPM there is a possibility that it could increase from the current 775 micron to beyond 900 for example. So if that happens, then TCP use could be extended for HPM packaging beyond HPM4 into HPM5. So that's a super-nano factor to take into account, the deployment of a hybrid-oriented solution. Now, as far as Hybrid Bonding Solutions for all sales, this year we are definitely trying to break into the top hybrid bonding customers. If we can break into that space, I think that will position us well for hybrid bonding solutions for the future. Yes indeed, we are doing Thank you, Robin. And my second question is for Kenny. So this quarter, we see that both S&P and Semi Solution, they're

Yifan Xu, Benjamin Poh, Yifan Xu, Benjamin Poh

Maybe we'll break your questions into two pieces. One is on gross margin. The other one is also, I think, on the top line side due to also CapEx. So let me answer the first question. In terms of gross margin, we announced Q2 already. You guys can see the numbers. Going, kind of looking ahead, right, looking to Q3, we actually, we think the, we believe the gross margin will actually remain quite stable for both businesses. On the S&P side, it will continue to be in the 30s in terms of gross margin at this volume level. So, I think put these two together, as we look out this The next question, I think that you also asked about the cap expense to the top one impact, right? I'll start and see if Robin has anything to add. Overall, I think the capacity is very strong and we definitely have experienced that in our actual results. And I think going forward, this momentum will continue to the line of sight that we have for the remaining of the year. And we, I think we touched on that in our sort of the outlook for the AIMD and DMA. If that's everything. Okay.

Thank you, Daisy. Next. Next, I would like Le Dinh to unmute to raise your question. Hello, can you hear me?

So my first question is about the plug-in optical transceivers. You mentioned that your revenue tripled in the first half this year. So how we should look the Sustainability or the potential of this business. Will it become an even bigger business versus your other, like the TCP or other high potential business? Thank you.

Yeah. Yeah, yes, yes, please. Yeah. So, yes, I think photonics is really interesting. So if you look at If we look at the Q3 bokeh that we lay out that is going to be increased by Pi single digit Q2, part of the increase, I would say, is also due to photonics. So we believe our photonics bokeh in Q3 will continue to increase sequentially as well, right? So I think you've said, you know, It's very sustainable. I think this probably gives you an idea that the photonics business in the second half or the demand in the second half will be growing as well relative to the first half. Now optical transceiver definitely is a bigger portion right now for photonics. As I mentioned earlier, CPU is a smaller portion. In terms of TAM, I think you asked something about TAM, right? So let me give you some color on the TAM. I think for this, we'd rather not focus on a specific TAM number today. But as I said, I want to emphasize that we'll continue to see a meaningful growth around way in both pluggable and CBO photonics in years to come. I think more importantly, I think the opportunity for us is really expanding as customers move towards more advanced optical architecture and we strongly believe that ASMPT really can participate across several critical process steps in that particular chain. Now I also want to be mindful and also want to be careful about drawing direct comparison with TCB at this stage for photonics. As you are aware, TCB is a much more mature market with much more clearer visibility in terms of adoption and market sizing. Photonics, particularly for CPO, is still in the earliest stage of development. So I think what's important for us today is that we continue to see and and see strong customer engagement on our part. We see increasing adoption activities, our tools, and we see a lot of opportunity across multiple process step where SMPT can participate both in the CPO market as well as in the optical transceiver market.

Thank you. Okay. And also, the second question is about your third quarter guidance. You mentioned that you see strong growth, sustained growth despite the long lead time of certain materials. So number one is what are the supply chain issues you are facing? And it seems to be the third quarter, the revenue guidance is slightly slower than the booking. It's slightly slower than the second quarter booking growth. What was the reason? Is it because you are facing some supply chain issues? Or you are still seeing... And what's the growth coming from? Is it coming from mainly the SMT or coming from SME?

Okay, good. The rapid... Let me answer the long-distance question. The rapid domestic growth has certainly led to supply chain tightness resulting in longer distance for certain materials. which affected both the SMT as well as semi-operation. I think you alluded to also probably the longer conversion time from bookings to billing. So definitely longer head time is one factor. Now the other factor that you might have to take into consideration is that the increase in your semi-product make The group's booking conversion time is estimated to be a little bit more extended than before, to be around six to nine months, roughly, depending on the products itself.

Thank you for the questions. And next, I would like Kevin to do a mute and raise a question.

Thank you, Benjamin, for taking my question. And thank you, Robin, especially for your past leaderships. I wish you all the best in your upcoming retirement. Now, my first question will be on the TCP temp. I think in the announcement, we mentioned that our temp Right now we're expecting that crypto beyond 1.6 billion US dollars by 2028. I was wondering what do the management see this upside coming from? Would it be more coming from memory or logic? Especially given right now there's some growing market concern over the memory outlook. What do we see any changes for memory sector driving the TCP outlook? Would it be any additional customer coming in?

Thanks, Kevin, for your well wishes as well. Yes, I will not give you any specifics because this is a half year. We aim to provide an official update at this year's full year earnings call on the TTP 10. However, having said that, let me try to provide some color on the TTP 10 situation. Yes, indeed we expect our TCP-10 to expand beyond US$1.6 billion by 2028. That was the last time we dished out this number during our Q4 earnings call. Now, we believe this expansion of TCP-10 by 2028 will come from several areas. First, there will be increased data center The emergence of this inferencing or agentic AI is driving a shift from GPU-centric design towards a more balanced CPU to GPU configurations, basically increasing GPU Thank you very much. The second reason we can think of is we see increased logic packaging requirements for co-ops as well in the years to come. And last but not least, panel packaging including embedded and even elevated bridge tie kind of solutions where we are participating will also contribute to the increased intent for TCB by 2028. Now we also, lastly but not least, we also believe this expansion is expected in spite of the industry-wide phenomenon from continuous improvement in HBM, TCB, UPH. So I think this sort of give you a color, Treven, of why the confidence that the TTP-10 will expand beyond US $1.6 billion by the time we hit 2028.

All right. Thank you, Robin. My second question, actually, I want to go back to hybrid bumping. Just wondering, for our Gen 2 tool, is it mainly for wafer-to-wafer or die-to-wafer capable? And going forward, I know that I think we are expecting inflation point probably sometime in 2029 or 2030. What do we see could drive the demand higher if they were pulling the demand a little bit earlier than the time we expected?

David? Now, is that a wafer? If you are talking about wafer-to-wafer bonding, we do not have the capability or solution in-house. Now, in terms of infection point, it all depends because the other side of the coin is really TCB, right? So you know that the TCB, in terms of technology, we have been advancing TCB technology together with our customers as well. So it depends how... How TCV advanced and also the market development in terms of HPM in particular. Now, as I mentioned earlier, for HPM, if there is a relaxation of the stack high, then there is a possibility that So I hope I sort of give you an indication, you know, why we continue to say that the HP, we believe the HP adoption will probably come in that kind of timeframe.

Thank you, Kevin. Thank you for your questions. And next, I would like to invite Tracy, Tracy to unmute to raise your question.

Thanks for the opportunity to raise questions. And thanks, Robin, for your leadership and wish you all the best ahead. My first question is about TCB. So in China market, we see both advanced logic and memory capacity are having fast expansion. So just wondering what is the revenue order scale of your TCB business in China currently and how you expect its growth?

Thank you. Tracy, I think I mentioned, but it's probably worth repeating as well. Yes, I think in terms of advanced packaging, China is relatively smaller than rest of the world at this point in time. But we believe with all these advancements in terms of advanced packaging in China, we believe that the trajectory for AP in China looks interesting in the years to come.

Okay, I got it. So maybe my second question is about your bookings guidance for the next quarters. Are there any split between semi-business and the F&P business for your bookings outlook?

Let me give you the bookings for Q3. I hope you have the meantime for it. So bookings for Q3 this year is expected to grow as high as the price of the digital. Thank you very much. SMT bookings on the underhand are likely to moderate or decrease due to a very high base already effect in Q2 but certainly we still believe it is at an elevated level so on a year-on-year basis SMT booking would still be higher driven by strong demand from AI service Thank you Tracy

I think we have time for just one final question. Oh, no, sorry. There's no more raised hand. So I think that will be it for our Q&A session. And I will pass the time back to Robin for his closing remarks.

So thank you all for all your well wishes. Before we end, let me capture some key takeaways from today's discussion. First, ASMPT continues to experience strong revenue and bookings driven by AI and traditional mainstream applications. Following a very strong Q2 financial performance, Q3 revenue guidance is above market consensus. Second, advanced packaging remains a strong growth with TCB, ASMPT high precision, and Photonic Solutions the largest contributor within the 3P portfolio. In particular, photonics represents a compelling growth opportunity for us. Overall, we are well positioned as we enter the second half of 2026. So, ladies and gentlemen, with that, this concludes my last earning calls at ASMPT. This is my 25th such call, and it feels like a nice number to sign off. As I enter the next phase of my personal journey in a couple of weeks, I hope that you will continue to support ASMPT. I look forward to catching up with you, or some of you, in the smaller group meetings on this trip. So thank you once again for joining us today. Goodbye.