Asmpt Limited Unsp/Adr

Good morning, ladies and gentlemen. I'm Ben Po, Head of Investor Relations, and today I will be moderating the call. On behalf of ASMPT Limited, welcome to our fourth quarter and full year 2025 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 and a session priority will be given to the covering analysts before we start let me go through our disclaimer please note that they may be forward-looking statements about the company's business and finances during this call such forward-looking statements could be could involve known and unknown uncertainties risks and 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 result 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 fourth quarter and full year 2025 and provide outlook and guidance for the following quarter. KT will provide details on the financial performance for the year and quarter. Now, I will hand the time over to our Group Chief Executive Officer, Robin.

Thank you, Ben. Good morning, good afternoon and good evening, everyone. Thank you for joining us today for our fourth quarter and full year 2025 earnings conference call. Before we begin, and as I'm sure you know by now, I recently announced my decision to step down from my role as Group Chief Executive Officer for personal reasons and to devote more time to my family. I will remain in my role until the successor is appointed to ensure a smooth and orderly transition. I'm proud of what we have achieved as a business during my time as CEO, and I'm grateful for your trust in me over the years. I'm confident that ASMPT has the right foundations and the people in place for its next phase of growth. Thank you once again for your continued support. Moving on, the group has decided to divest ASMPT next, which has been classified as a discontinued operation. Therefore, please note that unless otherwise specified on today's call, we will refer to the group's continuing operations only. Now for the key highlights for 2025. We experienced strong performance in both our SEMI and SMT businesses, supported by AI-driven structural growth. There was an increase in customer activity translating into meaningful bookings and revenue for the group, evident in both advanced packaging and our mainstream portfolio. Group bookings grew 21.7% year-on-year, driven by both SMT and Semi businesses, and our full-year revenue increased 10% year-on-year, mainly from our flagship TCB solutions. Now, let's look at TCB. TCB momentum strengthened further in 2025 with significant new orders across logic and memory solidifying our TCB technology leadership. We established deeper engagement with both logic and memory customers and saw encouraging traction in areas such as HBM and C2W ultra-fine-pitch applications. This continues to reinforce our position as a leading provider of advanced packaging solution as customers move to more complex chiplet-based and high-density architectures. Turning to our SMT segment, bookings were better than expected, supported by AI servers, China's EV ecosystem, and increased requirements for data transmission for base stations. Last but not least, we also advanced several transformation initiatives from late 2025 to date. These are to enhance focus on our backend packaging business, improve agility, and optimize our portfolio as part of a longer-term strategy. These actions will place us in a stronger position to scale capabilities in the areas where customer demand is more structurally aligned with our technology strengths. Overall, 2025 was a year where we executed well, deepened customer engagements, and continued building the foundation for sustained growth. I will elaborate further as we move through today's presentation. Let me now provide an update on the TCB total addressable market. This time last year, when we presented this slide, we expected the TEM to reach around $1 billion by 2027. Since then, the landscape has evolved meaningfully. The acceleration of AI-driven investment, especially in advanced logic and high bandwidth memory, has expanded the market significantly, more than our earlier assumptions. Based on our latest projections, we now estimate the TCP temp to grow from roughly US$759 million in 2025 to US$1.6 billion by 2028, representing a chaser of 30%. This reflects sustained adoption of 2.5D architectures. higher HBM stacks and the industries move towards final pitch interconnects. All areas where TCP is increasingly the preferred solution. Our target market share remains at 35 to 40%. This is supported by the breadth of our deep engagements across leading logic and memory customers and by the performance of our HBM C2S, and C2W TCB platforms, including strong uptake of our plasma-enabled ultrafine pitch capabilities. We are well positioned to benefit from this expanded TCB 10, and we are committed to continue investing in this exciting technology. Moving on to advanced pathogens. This remains a strong growth engine for us in 2025, supported by rising complexity in both logic and memory packaging. As customers shift further towards triplets, higher state HPM, and final pitch interconnects, we continue to see solid demand across our TCP platforms in particular. Of note, with our breakthrough into comparative HPM market, we also grew TCB market share significantly, achieving record TCB revenue growth about 146% year-on-year. In 2025, our AP revenue growth of 30.2% year-on-year was driven by TCB. As a result, AP's contribution to group revenue also increased from 26% in 2024 to 30% in 2025. Now, let's look at TCB more closely. In logic, our C2S solution maintains its dominant position as a process of record with a steady flow of orders from key OSEP customers in 2025. Extending into early 2026, we are pleased to share that we have secured additional orders for nine more TCB tools from the same customer. we are well positioned for further order wins as the market shift towards larger compound lines. At the same time, our C2W ultra-fine pitch platform enhanced with plasma AOR technology secured orders for two tools in February, 2026 from a leading customer for C2W applications. Since the announcement, we have secured two more such tools, TCP tools, from the same customer. As the industry transitions from mass reflow technology to TCP, the group stands to benefit significantly as the preferred C2W solution provider, offering plasma-enabled capabilities. This engagement underscore the confidence customers place in our ability to support tighter technical specifications and next-generation packaging roadmaps. In memory, we deepen our engagement with several customers and continue to expand our share with shipments in Q4 2025. Our tools have demonstrated superior performance with industry-leading production years and interconnect quality. We were also the first to secure HBM4-12H orders from multiple players, and we are now leading HBM4-16H development with our flux-based TCB2 deployed for sampling and our fluxless AOR-TCB process under qualification. These are important milestones for our technology leadership as HBM architectures scale further. Beyond TCB, we also made progress in hybrid bonding, where we receive customer files and ship modules. Our second generation hybrid bonding solution is highly competitive, offering high alignment precision, bonding accuracy, footprint efficiency, and units per hour. In photonics, revenue grew year on year, and we sustained our leading position in the 800G optical transceiver market. while continuing development work with industry partners on 1.60 transceiver solutions. Our CBO collaboration also continues to move forward with key global players. And in SMT SIP applications, demand remains robust, especially in AI-related RF and system-impaired application. Our next-generation chip assembly tool also gained traction among advanced logic smartphone applications. Overall, advanced packaging delivered another year of meaningful progress with broader adoption across logic, memory, photonics, and SIP, and it continues to be a central pillar of our long-term growth. And finally, our mainstream business. This accounted for about 70% of our fiscal year 25 group revenue. In 2025, AI-related demand was also a strong momentum driver for our mainstream business. Rising requirements for AI data center power management applications kept utilization rates elevated at leading global IDMs, benefiting semi-mainstreams. Meanwhile, SMT mainstream secured more orders to support increased data transmission requirements for base stations and AI server boards. In China, our mainstream business saw around 18% year-on-year revenue growth across both SEMI and SMT. SEMI's growth was driven by strong demand for YM and die-border applications underpinned by robust OSATs utilization. SMT benefited from increased deployment of AI server bots and strong demand for EEBs in 2025. With these highlights, let me now hand over the time to Katie, who will walk you through our group and segment financial performance.

Thank you, Robin. Good morning, good evening, everyone. Let me take you through the group financial performance. Before I start, 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 2025. For the full year, the group delivered a revenue of $1.76 billion, representing an increase of 10.0% year-on-year, driven largely by TCB. Group bookings reached $1.86 billion, representing 21.7% year-on-year growth. Both SMT and SME registered high bookings during the year. The group continues to build a healthy backlog. We spoke to a bill of 1.05, which is our highest since 2021. In 2025, group adjusted gross margin was 38.3%. This was 172 basis points lower year-on-year, reflecting lower gross margin in both SMT, and SEMI. Group operating expenditures was 4.56 billion Hong Kong dollars, up 3.2% year-on-year, mainly driven by strategic R&D and IT infrastructure investments of 237 million Hong Kong dollars, as we communicated at the beginning of last year. These investments were partially offset by disciplined execution of cost control and efficiency measures. Now looking ahead for 2026 for Alpax, as Robin mentioned, we're committed to continuing the investment in our core technologies, and we expect Alpax to rise by about 200 million Hong Kong dollars in 2026. In 2025, both adjusted operating profit and net profit improved year on year due to high revenue and operating leverage. In the fourth quarter, We delivered a revenue for continuing operations and discontinued operations of $557.1 million that surpassed the upper end of all guidance. Coupon revenue for continuing operations was $508.9 million, representing an increase of 12.2% Q&Q and a 30.9% year-on-year, driven by a strong growth across both SEMI and SMT. Group Q4 bookings were $499.7 million. The Q on Q increase was due to stronger TCV bookings, while the year-on-year growth was largely driven by SMT's mainstream business. Group Q4 adjusted gross margin was 35.8%, down 175 basis points Q on Q and 101 basis points year-on-year. This sequential decline came from both Semi and SMT, with year-on-year decline due to lower Semi margins partially offset by higher SMT margins. Group Q4 adjusted operating profit was 161.0 million Hong Kong dollars, up 4.3% year on year, up 4.3% Q on Q due to higher revenue and operating leverage. Group Q4 adjusted net profit was 119.9 million Hong Kong dollars, up 42.2% Q on Q and 390.7% year on year, The QMQ increase was largely due to fees of 39 million Hong Kong dollars from order cancellations, while the year-on-year increase was due to stronger operating profit. Adjusted earnings per share were 30 cents Hong Kong dollar. Moving on to the semiconductor solution segment for the fourth quarter of 2025. Semi delivered a Q4 revenue of 245.6 million US dollars, an increase of 9.4% QMQ, and 19.5% year-on-year. Q-on-Q and year-on-year growth were driven by AI-related applications, mainly from photonics. Semi-Q4 bookings were $253.3 million, up 15.4% Q-on-Q and 2.3% year-on-year. The increases were due to TCV orders from advanced and larger customers and a market share gain in high and high-bounders. Semi-book-to-bill ratio in Q4 2025 was 1.03%, Q4 adjusted margin for semi came in at 40.3%, down 102 basis points Q on Q and 292 basis points year on year. The Q on Q decline was largely due to product mix and inventory provision as a result of an isolated order cancellation. Year on year decline was due to product mix, inventory provision mentioned above, and a higher factory utilization in Q4 2024 during the TCB rent. Q4 adjusted segment profit was 98.0 million Hong Kong dollars, up 62.5% Q on Q, and up significantly year on year. Both Q on Q and year on year improvements were mainly driven by higher volume and fees related to the order cancellations. Next, let me move to the SMT solution segment performance for the fourth quarter of 2025. SMT delivered strong Q4 revenue of 263.3 million U.S. dollars, up 15.0% Q on Q and 43.8% Y on Y, driven by AI servers, EVs in China, and the billing of a bulk order for smartphone applications. However, contributions from automotive and market outside of China and industrial remained soft. SMT recorded Q4 bookings of $246.4 million, down 3.9% Q on Q, but up 73%. up 73.3% year-on-year. The Q-on-Q decline was due to seasonality, while the year-on-year increase came from the demand for AI servers and EVs in China. Q4 SMT gross margin was 31.6%, down 225 basis points Q-on-Q, but up 199 basis points year-on-year. The Q-on-Q decline reflected continued weakness in automotive and industrial end markets, and the building of bulk order mentioned above which had a lower margin. The year-on-year increase was mainly due to higher volume. Q4 segment profit was 193.1 million Hong Kong dollars, up 18.5% Q on Q, and a significantly year-on-year due to higher volume. This slide highlights ASMPT's revenue breakdown by end markets. Computer end market was significantly up. becoming the largest contributor to group revenue, accounting for 22%. The growth in computing was largely driven by our TCB solutions. Consumer end market was the second largest contributor at 17%. Young year revenue growth came largely from the group's mainstream solutions, consistent with higher revenue from China. The communication end market contributed 16% to group revenue, driven by photonics and high-end smartphone-related applications. The automotive end market contributed almost 16% to group revenue, supported by EV demand in China, where the group remains the leading player. Lastly, the industrial end market contributed 10% to group revenue, reflecting soft market conditions. As you can see from this slide, we're a truly global business, partnering with customers across all major regions. China remained the largest market, contributing 41% of group revenues. However, Europe and America's decline year-on-year, mainly due to soft market conditions in S&T, with Europe's share of revenue down to 13% and America's down to 11%. Looking at Asia outside China, their proportion increased collectively from 24% to 34%, largely driven by TCB revenues. the group continued to maintain low customer concentration risk, with the top five customers representing approximately 16% of total revenue in 2025. We have an existing dividend policy of distributing about 50% of the annual profits as dividends, and we firmly believe in returning excess cash to our shareholders. For the second half of 2025, With adjusted EPS at 68 cents in Hong Kong dollars for continuing and discontinued operations, the board has recommended a final dividend of 34 cents per share. In addition, the board has recommended a special cash dividend of 79 cents per share after taking into consideration the net cash inflow from recent strategic projects. Together with the interim dividend of 26 cents per share paid in August 2025, the total dividend payment for 2025 will be HK$1.39 per share. With that, let me now pass the time back to Robin for an update on our transformation initiatives and the next quarter's revenue guidance.

Thank you, Kitty. As mentioned earlier, we undertook several transformation initiatives from the late 2025 to date as part of our long-term strategy. In November 2025, We completed the divestment of our entire equity interest in AAMI in exchange for cash and new shares in Shenzhen Original Advanced Compounds Company Limited. In January this year, we announced a strategic options assessment of our SMT solution segment. The assessment is underway and we will update at the appropriate time when there are material developments. Lastly, today we make public the decision to diverse ASM Next Incorporated. This initiative share a common objective of optimizing ASMPT's portfolio, streamlining operations to enhance agility and improving margin and profitability, while ensuring continued investment in infrastructure and technology development technology development in high growth areas. They also sharpen our focus on the backend packaging business. In the meantime, business for all our segments continue as usual. Let me now turn to our Q1 2026 revenue guidance. The group expects Q1 2026 revenue to be in the range of US dollar $470 million and US dollar $530 million At midpoint, this represents a decline of 1.8% Q on Q and 29.5% year on year. Notably, the gross midpoint revenue guidance for continuing operations already exceeds current market consensus, which includes both continuum and discontinued operations. We anticipate sustained Q and Q revenue growth in our semi-segment driven by TCP and high-end die-bonders, although this will be partially offset by SMT seasonality. On year-on-year basis, the higher group revenue is expected to be driven mainly by strong momentum in SMT, coupled with steady growth of semi. For Q1, 2026, Group gross margin is expected to improve, led by semi-gross margin returning to the mid-40s level. This improvement is driven by higher volumes from TCB and high-end die bonders. S&T's gross margin, however, is expected to stay at similar levels as automotive and industrial end markets remain soft. The group bookings momentum will accelerate in Q1, 2026, supported by both segments. Looking further ahead, structural industry growth from AI demand is expected to drive revenue growth across both SEMI and SMT. In TCB, with our industry-leading technologies and deep engagement across a broad AI customer base, we are well positioned to expand our TCB business in a rapidly growing market. our semi and SMT mainstream businesses continue to be supported by global investment in AI infrastructure and steady demand from China, while SMT automotive and industrial air markets are expected to remain soft in the near term. This concludes our full year and fourth quarter 2025 presentation. Thank you, and we are now ready for Q&A. Let me pass back the time 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'll request you to unmute. Please limit yourself to two questions each time and pose your questions one at a time. So with that, may I have the first question? Okay, Gogo, please unmute yourself and raise your question.

Yeah, hi. Hi, good morning. Hi, Ben, Robin, Katie, Robin, first of all, thanks for your leadership over the many years and good luck on your retirement. My first question is on TCB, the addressable market TAM expansion to $1.6 billion. Could you talk a little bit more about where is this upside mostly coming from in your estimates? Let's say we get to this $1.6 billion. What will be the mix of HBM versus Logic look like in 2028? And given that you gave an estimate of $750 million addressable market for last year, what was the market share roughly for ASMPT last year? Should we assume that it was about 30% or so for TCB, just to get a starting point of your TCB journey when we think about this time expansion? Thanks.

Okay, Gautam, this is Katie. Let me try and address the questions that you have. First, on the TCB10, let's just take a quick minute on the methodology. Actually, last year was our first time publishing the TAM at the billion. This year, actually, the methodology is very, very similar. So we essentially use the wafer per month. Actually, you guys have published in the industry, and we refer that to the number of AI chips and the interconnects and then choose needed, right? So it's the same methodology. So to your question about what's driving the expansion, obviously, right, really is the starting point. It's the wave of the month that has expanded significantly for the AI industry overall. So that's the main expansion. Now, in terms of the mix of Hyperbound, sorry, HBM and the logic, I think previous years we've communicated that HBM is the larger portion of the TAM and will continue to be so probably until as we go into the outer years, right, If we talk about HBM20 high beyond, then at that point, maybe Hyperbomb will be kicking in, and then the logic side, especially COW, will actually become more prominent in the term. So then the other thing is you asked about the last year's market share, and you said about 30%, and you are quite in the ballpark for that one.

Got it. That's very clear. Thank you very much for the clarification. Second, on the proceeds from, I think, this rationalization of the portfolio and some strategic actions that you're taking, good to see that happen. But could you also talk a little bit about what is the kind of end state that you are hoping for once this rationalization is being done? Are there areas that you are kind of trying to bulk up on as it pertains to the back-end packaging business? And specifically on Nex, what is the rationale for divesting Nex, given that has a fair bit of 2.5D bumping and ECD plating kind of business, which... theoretically feels like closer to the advanced packaging business, but just help us understand why that divestment of NEX is also happening.

Hi, Goku. Thanks for the question. I'll take that question, Goku. So, basically, I think it's really focusing, you know, really on our backend packaging business because this is where, you know, we feel this is where the structural role will be and this is where I think our the industrial roadmap for packaging. So really back to, you know, focusing on back-end packaging. So first you notice we divest our lead-frame business, just discuss one step. And now we are, you know, assessing SMT, which is more of the, you know, downstream operation. And then as to your question on Next, you're right. Next is, although it's an advanced packaging, but it's not exactly backend. It belongs more to the middle end. And the technology, to be honest, is more wet technology, whereas back-end technology is really more on automation and vision and so forth. So we felt that it's probably a right time to consider divesting meds next to really focus all our attention, all our resources on the back-end side. Yep.

Understood. And maybe if I could squeeze in one more, I think. Any quick view on how the mainstream STEMI solution business, you're expecting it to progress? Robin, what are you hearing from the customers, given at least from a CapEx perspective, many of your customers seem to be moving up for the first time in this upcycle?

Maybe we talked about green shoes some quarters back, but this time around, the green shoes seem to be real from our point of view. Now, because there is a tier win behind the mainstream business, and this time around, we feel that we have been talking for a few quarters already, Goku, that we feel this time around is underpinned by AI investment as well. You can imagine when, you know, industry, you know, continue to invest more and more in terms of data center. Besides GPUs, there are many other components inside a data, inside a server board, AI server board. You know, you have power measurement devices and many other components, right? So, you can imagine with all these server boards going to data center and the data center KPEX, there's huge, massive need to be packaged using both our semi, wire-bound and the normal die-bound tools, as well as our SMT pick-and-place tools. So these AI data center investments are really driving our mainstream, both on the semi side as well as on the SMT side.

Okay, that's very clear. So we should expect that mainstream semis also should be growing. I think it's not been growing for maybe three, four years now after 2021, but it looks like in 2026 we should see some growth in the non-advanced packaging piece of semi-solutions as well, right?

Yeah, as far as we can see, I think our visibility is, again, it's quite normal in our business to be limited to one or two borders, right? So I think first half looks to be okay. Half and half, you know, better than half and half. Half and half growth. Year on year, half year or so, we think it will grow. But if you ask me on the second half, let's wait for a while to see how we develop limited visibility at this point in time for second half.

Got it. Thank you very much. Thanks. Thank you, Gogo, for your questions. I see a raised hand from Daisy. I will request Daisy to unmute and raise her question.

Thank you, Ben. And firstly, I want to ask about the HBF opportunities, because I listened to your competitor's earnings call. They are talking about high bandwidth flash opportunities. Have you guys also seen these opportunities from ASMPT side?

Yes, we do, Daisy. You have very good questions. I think this is, again, probably... an exciting development. To be honest, we have not factored this into our TAM, TCB TAM, because potentially the way we assess the technology or the packaging technology required I think TCB could also be a tool to package HPF. So this is something that we look forward to. If the industry develops in this direction, I think we will also stand to benefit in time to come.

okay thank you and uh also following goku's previous question and you previously also mentioned that you expect the second half will also grow versus the first half so i want to ask about the order visibility for from asmpt side because i think in normal times back-end order visibility is three to six months, and how is the order visibility now? And what is the magnitude that you are seeing that second half could grow versus first half?

Correction, correction, Daisy, correction. Let me make it clearer. Just want to answer Koko's question. I'm just saying first half 2026, we have better visibility. because of the momentum we are seeing in terms of advanced packaging as well as mainstream. But second half is still limited in terms of visibility. But at least this time around, we can see a little bit further, maybe slightly more than a Second half, we still have limited visibility. So when I mentioned just now half and half, I'm sort of giving you some color. First half this year, demand probably will be better than first half last year as well as second half of last year. So I'm just comparing half and half and year on year. But second half, I repeat, we still have limited visibility at this point in time.

Okay, understood. Thank you. That's all my question.

okay uh thank you daisy and uh next uh request after to our meal okay uh hi hi uh thank you we missed and uh thanks uh you and the teddy band uh first congrats on the strong results um so uh first question is on the backlog You highlight that the backlog is almost over 800 million. Can you give us more color on the spread between the semi and SMT? And also, you highlight the high-end bundler. Can you share with us more on the non-TCB product, such as panel-level fan-out? Thank you.

Up on the backlog, just really quick, the semi-side backlog is a larger concern than SMT.

Okay. Is it significant higher or is it, you know, pretty insignificant?

Oh, you mean the percentages? Roughly 60-40, I guess. Don't quote me on exact. Somewhere there. Okay.

Okay, thank you. So, Arthur, on your second question about high-end die-borne, which I think you're referring to what we are mentioning in our announcement. Yes, I think if you're referring to the same thing, I think it's good news. We have penetrated into a high-end die-attached application for high-end smartphones, right? So if you look at The terminal modules of high-end smartphones, there are many, many odd-shaped components in there which need to be put in place as well. So the customers have chosen our die-attached application to place those components. So this is a brand new market for us. We have never been in this market, so we really look forward to having more market share, increasing our market share in this particular area. So that's for the high-end die-born I think you're referring to. Now you also have question on panel level of fan-out. We see a lot of trending in that direction. We feel that this is also driven by AI as well, right? So panel level of fan-out for components that go into data center, becoming more and more visible. So definitely we have a tool basically a mass reflow tool that we can deploy for a solution like this. So we are also pretty well placed to capture this opportunity.

Thank you. And the second question is on page 10. You highlight there is an older cancellation on the semi side. Can you give us more color? Is it associated with the next

Yeah, Arthur, so this order cancellation does not have an association with Max. So let me just give a little bit more color on that. The order cancellation came from a global IDM who's focused on automotive applications, and the order came a few years ago, and it was for our semi-mainstream products. The customer had to cancel the order due to weak automotive industry performance. So that's why we got this cancellation. But I want to make sure that we all understand this is very much an isolated event.

Thank you. No more questions. Thanks, Arthur.

Thank you, Arthur. Next, I would like to request Le Ping to unmute and raise the questions.

Okay, thank you for taking my question. The first question is also about the TCV time. So when you derive the TCV time in 2028, what's the split between memory and logic? And you also say that your target is 35% to 40% market share in 2038. So what's your current market share in memory and logic, and what's the upside we can expect in the next few years?

Thank you. Maybe I'll just add a little bit more. Basically, essentially, the answer I'm providing is called the split of memory and logic. Currently, the memory of the HBM portion in the temp definitely is much larger than logic, but as we go out a few years out, this dynamic will actually shift where the logics, especially COW, will actually take a larger share. But we cannot share the specific split for confidentiality reasons, or competitive reasons, I should say. Now, in terms of the market share, As Robin has mentioned in the opening, ASMPT is very, very strong in COS. And also when we are actually making our wins on COW. So our market presence in the logic space is very strong. HBM, you guys probably remember a year ago, we broke into HBM market. So we have gained market share there. So that's kind of where we are in terms of market share.

Maybe just to end on a little bit in terms of the competition landscape, but I think in the logic space, you know, we have a POR. you know, for a very key supply chain, you know, for, you know, substrate application. And then recently, the good news is that, you know, we announced we want, you know, two tools for C2W application, right, for for the same supply chain and then we want two more. So I think it is a signal that we are also being recognized as a solid solution provider for the C2W space as well. Now on the memory side, I think the competition landscape is different. We have a strong incumbent in the memory space. But we have done a fantastic job. In 2024, we have practically zero share in HBM. And then in 2025, we managed to penetrate in a very meaningful way in the HBM market. Now that we have a strong FUKO in the memory market, we look forward to a better time circuit in terms of HBM demand allocation.

Cool. Okay, the second question is about the memory super cycle. So are you seeing an acceleration of the capacity expansion from your HVM customer and given your HVM for 12 high or the win. Are your customers providing a longer-term rolling forecast to secure your TCB tour for the 12 high and the 16 high? Or how you play your capacity in this year for the TCB business? Thank you.

Yeah, thanks. Definitely, definitely in terms of the HCBM capacity is really in line with investment in data center. So when data center investment continues to increase, you can expect the HBM to continue to increase as well, not just in the number of HBM, but also in the higher stack, from 12 high to 16 high to 20 high potentially. So that means there will be more and more opportunities for TCP packaging as HBM continues to stack up in terms of in terms of height. Now, you asked whether, you know, about capacity allocation. To be honest, I think there are some module differentiation between 1200 and 1600, but they are not major. Some hardware module need to be different. If you use to package between 1200 and 1600, there are some hardware modifications, but also some software. So there's not much material differences between the 12-Hit TCP tool and the 16-Hit TCP tool.

Thank you. Thank you very much.

Thank you, Robin. And next, I would like to request Simon Wu to unmute and raise questions.

Yeah, thank you very much. Thank you, Robin, as always. we will miss you thank you um so the uh and it's long-term questions for 2028 you are expecting pcb market 10 1.6 billion dollars for 2028 any rough idea the percentage of the hybrid bonding assumption for that time or very low single digit or missing or

Sorry, Simon, because your line is breaking up. So do you mind to say it again?

My question is the hybrid bonding portion of the 2028 TAM, $1.6 billion.

So this is the TCV10, so there is no hyperbond in the TCV10, but I guess you're asking our assumption of the hyperbond adoption timing. Is that what your question is?

Yeah, sure, yeah. That can help, yeah.

Okay. In our model so far, for HBM16 high, we assume that And we are actually confident that the TCB will continue to serve 16 high. But as we get into 20 high, it really depends on the JTAG standard, right? If the standard continues to relax, then it will actually be an upside to this model. Otherwise, we assume in the model itself that the 20 high will be moving on to hyperbolic.

Partially. Partially, yeah, partially. Yeah. I think the TCB can be used for the 20 high, if that is okay.

Yes, Simon, I think looking at how the technology, the TCB technology developed over the years and also into the future, we are confident that the TCB technology together with, of course, we need to collaborate with our customers as well. Their wafer technology will probably, we believe, will continue to improve. So I think a combination of both the wafer as well as TCB tools, we are hopeful and optimistic that a 20 high can still use a TCB. Of course, if like what Kelly said, if the JDAT standard can be relaxed to increase the height from 775 to beyond 775, maybe 950 or even 1050, a micron um then then then the uh the chance of using more tcv for 20 high and beyond will even be higher so so this is yeah so so we just have to wait for wait for a little bit longer to see how how the industry plays out in terms of the high restriction yeah very clear

Do you believe the logistic area coax or fan-out PLPT will require hybrid bonding as well, maybe a year later? Sorry, you're breaking up.

Sorry, I need to ask you to repeat.

You're breaking up. I should use a better phone. My question is, logistic area, do you see any meaningful progress for the hybrid bonding for coax or fan-out PLPT area?

So I believe your question is in the logic area whether there's no opportunity for hybrid bonding, right?

Yeah, correct.

Actually, to be honest, hybrid bonding has already been adopted at the chiplet level for certain devices. We believe that that has already been ongoing. uh it all depends if it's very it's very dynamic right so even to be honest even at the cheaper level a tcb can be used as a true as well especially when we look at the the exciting technology that we're going to develop for tcp going into the future the the tcp technology will get closer and closer to the hybrid morning technology so from that yeah from that perspective we are optimistic and hopeful that at some point uh you know tcb can also be used also at the chip integration level but as i said the yeah this industry is very dynamic uh so nobody knows what's going to happen but let's let's continue to monitor this space yeah very clear sorry but almost the last and quick check

30% of your revenue is advanced packaging any rough idea that means anyway near half a billion dollars your revenue for advanced packaging last year so any rough idea what was the tcb portion out of the total advanced packaging revenue last year you're talking about tcb proportion to the advanced packaging is that what you're saying yeah 2025.

yeah yeah very dominant very dominant the major share of the ap revenue for tcp yeah oh dominant means majority proportion yeah if you look at the tcp uh market the 10 slider we shared and robin mentioned right you know what the tcp market size was in 2025, and I think Galko earlier mentioned about market share. As you do the rough calculation, you actually get there. If that's what you guys are trying to do.

Yeah. Okay. Yeah, $200 million, $300 million maybe. So one last question from some investors asking, what over the revenue disappearance or erosion after your massive restructuring for the SMT or lead frame, the back-end area, what percentage of the revenue will be off once we complete all the restructuring process? Thank you.

Let me try to answer your question. So for clarification, for AMI, we were 49% shareholding, and now after the disposal of AMI, there's actually no revenue impact year-on-year or the last few years, right? There's no revenue impact at all. for the next business we just announced today to be as discontinued business or put up for sale, right? Next revenue is about 100 million US dollars. That's what you're looking for.

Yeah, all clear. Thank you very much. Thank you, Robin. Thank you, Simon. Yeah, I think we have time for one final question. And Donnie, we'll request you to unmute and raise your question.

Thank you for taking my question and wish Robin you all the best after the retirement. Thank you. My first question is regarding to your guidance. Can you break down or elaborate more on the bookings momentum in the first quarter and particularly TCB? Because I think based on your announcement in fourth quarter last year, we already have received quite some tcp orders so i'm also wondering what kind of uh friend in terms of the tcp bookings into the first quarter uh this year this is my first question thank you thank you donnie uh i think you probably expect my answer we cannot be too uh granular because for competitive reason as well but i think in overall i think 2020

with the, you know, investment, so much investment in data center, right? So I think that's for one. Now, if I drill down to the booking, I'll give you some booking color, you know, for Q1 2026. We're likely to see a strong booking in Q1, Q and Q, around 20% growth Q and Q. and even stronger around 40% year-on-year growth for Q1, Booking 26 for both SMT segment as well as the Semi segment. I think we have been talking a fair bit over the last couple of quarters as well that we see AP will continue to grow. And because of mainstream momentum gaining very strongly over the last one or two quarters and into Q1 2026 as well. So I think both advanced packaging as well as mainstream will continue to do well in Q1 2026 as far as bookings are concerned. Now, however, I have a caveat just now as well, right? With the stronger booking, also let me caveat or qualify that we might see some impact on revenue conversion, you know, because we are seeing longer material lead times due to tightness in the supply chain, right? So although bookings are going to be very strong in Q1, but the conversion to revenue may because of supply chain tightness, okay? Yeah, so I think this is some color I want to give you. And by the way, I think Q1 bookings, the way we see it, will be the highest quarterly booking in four years.

Yeah, okay. Understood. Can I have a follow-up on this? So for the semi-business bookings, the strong sequential growth, Can we say it's primarily driven by more like conventional packaging or from advanced packaging?

I would say mainstream will probably grow a little bit more than advanced packaging. Advanced packaging tends to be a bit lumpy. We have been thinking that for a long time really. Don't expect AP revenue to be continuously Most customers are limited. Last customers are in the mainstream. Second, these are high-value tools, so customers cannot continue to buy quarter-on-quarter. But the demand for TCP is steady for sure, but don't expect this to continue to be on a quarter-on-quarter basis, continue to grow. But what we are seeing is quite interesting is really on the mainstream side. So we really picked up in terms of mainstream for those reasons I said earlier, AI-driven data center.

okay got it and my second question is regarding to your 2025 review in terms of the market share game particularly in the hbm market so uh but if you uh if i remember correctly we actually received quite sizable orders from fourth quarter 2024 from leading hbn customers and since then into 2025 i but seems like not as significant as what we had back in fourth quarter 2024. So just want to clarify that our market share gain in 2025 for HP and TCP is primarily driven by the big orders we received in fourth quarter 2024.

Just really quick, Tony, the market share data is actually based on billing.

Yeah, yes. you know so so the thought is like when should we expect to receive a more meaningful repeat orders from the leading hbm customer i mean or when should we can be expect that the orders can be maybe more significant than what we had back in fourth quarter 2024 yeah i think it all depends on uh how soon they roll uh

in volume for 16 height, right? So also that depends on their customers' rollout of the new architecture. So the timing has to be aligned with ultimately how the ultimate customer rollout the GPU's architecture. So I think as the industry moves from 12 height to 16 height, I think all equipment suppliers, including myself for TCB, are waiting anxiously for that particular customer to allocate TCP demand. that 2026 will be a year whereby you know there will be new truth enough tcp for section high but exact timing unfortunately donnie i i cannot i cannot give you any visibility at this point in time but it can't be but it cannot be too long basically in our opinion yeah sure sure no problem thank you robbie and thank you katie for the presentation thank you thank you thank you donnie

That will be our last question for today. So I will pass the time back to Robin for his closing remarks.

So thank you for all your well wishes about my retirement. Now, before we end, let me capture some really key takeaway from today's discussion. First, 2025 was a year of solid execution for us and strengthening our customer engagement across the group. So we delivered growth in both bookings and revenues with a book-to-bill ratio of 1.05 and a healthy backlog with reflecting continued momentum and the trust the customer placed in us. Second, AI-related demand was the engine of our overall business in 2025. Across both infrastructure and applications, AI drove significant activity in both SEMI and SMT. This reflects an enduring structural trend that we expect to perceive persist for some time as it increasingly shapes customer roadmaps and priorities. Last but not least, TCB was a standout for us in terms of momentum and in terms of technology leadership. We expanded engagement in both logic and memory, securing wins across HBM, C2S, and C2W applications. So with our latest TCB 10 projection, this highlights the scale of the opportunities in TCB, and we continue to target a 35% to 40% share of this market. So in short, before I close, overall we are well positioned as we enter 2026. So thank you once again for joining us, and we look forward to updating you in the next quarter. This concludes our call. Thank you and take care.