Sentiment Analysis of the earnings transcript to help figure out if there are any bullish or bearish sentiments that could be gathered from it. We're doing ML and AI based analysis on the earnings call to get some more insights.
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| Statement |
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| So, we are optimistic about the revenue from these different package type products coming from both directions, one is our own solutions and the other is really the collaboration with foundries |
| And while revenues related to these products are relatively small, representing a low-single digit percentage of ATM revenues, we believe we see significant growth opportunities in the coming year |
| So basically, firstly, we are encouraged to learn the management's positive comments on the new generation of the consumer demand |
| Overall demand looks marginally better as consumers finish their post-COVID catch up spending |
| [Multiple Speakers] Charlie Chan The testing, for the GPU and ASIC, yes? Joseph Tung Other than congratulating, our competitor is doing a very good job in securing that type of business |
| And given our scale in our technology offering and the efficiency or the level of automation that we have, we have continued to be able to maintain a reasonable pricing level and also to have pretty good control over our costs and making the margin at a [Indiscernible] |
| As an extension to this concept, we believe the seasonal forces of product cycles are still stronger than the recovery we are encountering |
| What was the profitability for that? Capital intensity and profitability? The profitability for the AI-related business and the capital intensity for that? Joseph Tung Well, you're seeing our margin being gradually improving so because at least the margin should be good |
| Bruce Lu But which one is stronger for there? For the past three months, which one turns out to be more positive to give the management like stronger confidence? Is it collaboration was foundry or yourself? Joseph Tung The collaboration is more stable there and it's more obvious |
| And at this point, we are confident that we should easily double that part of the revenue next year |
| From a sequential perspective, we estimate the NT dollar depreciation had a 0.8 percentage point positive impact to the company's gross and operating margins |
| You can see here that we are experiencing a stronger pickup in our advanced packaging services, which includes bumping and flip chip |
| So I think the Suzhou being a more advanced, more efficient, more cost effective facility, I think it does – it is doing quite well actually in China, particularly in terms of serving the Chinese customers with higher-end technology requirements |
| Our traditionally strong third quarter ATM revenues are just now near our first quarter 2022 levels |
| The operating margin improvements were driven primarily by loading and favorable foreign exchange impacts to raw materials |
| The sequential margin improvement is the result of improved scales of efficiency from higher loading, offset in part by slightly higher summer utility consumption and outsourced services, while the annual margin decline is primarily the result of lower loading due to the current downturn |
| This represents a 10% improvement sequentially and a 15.3% decline annually |
| One is the AI chip placed business right, in the middle of GPU or ASIC, right, inside your computer, in testing business are gaining a lot of market share |
| Gross margin was on the higher side of our expectations |
| I think the management sounds a lot more bullish or positive in terms of AI revenue potentials |
| So we are confident that in China we could be losing some revenue in terms of dollar per -- in terms of business where we're actually gaining better quality business in China |
| And so for ASE, what are some of the competitive advantage that you think you have, when competing with key projects? Joseph Tung Well, our long partnering relationship with the foundry or the foundry, certainly give us an edge and given our scale and the technology that we have been growing over the years, I think we are certainly ahead of our competitors, and in whatever products that we are building today, or whatever technology that we're developing |
| We are in mass production at this point, but with limited amount, but we see this has a pretty good potential and we will continue to make investment into it and continue to work very closely with our customers to start expanding that part of the business for us |
| And while the automotive segment lost relative share, it grew during the quarter by 7% on an absolute dollar basis |
| So, first of all, congrats for the [Indiscernible], especially for first quarter gross margin improvement |
| Our ATM businesses results were on the higher side of our expectations |
| As you can see here, the current correction appears to have had a stronger impact on our ATM business than our EMS business |
| You saw a pretty good improvement in communication by both auto and industrial kind of tailed off in Q3 |
| From a year-over-year perspective, we estimate that that depreciating NT dollar had a 1.2 percentage point positive impact to gross and operating margins |
| Joseph Tung Well, instead of giving out numbers for capacity, I think what we can say is we have the sufficient store capacity for generating the revenue that we're generating now and we do see pretty good potential going forward |
| Statement |
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| Our EMS businesses pickup was slightly below our initial expectation |
| We believe this was primarily attributable to higher than expected unplanned orders and the soft loading environment |
| The overall environment for our businesses during the third quarter was relatively soft from an historical perspective |
| The annual decline in gross margin is principally the result of lower loading during the current downturn |
| Our wire bonding and test business saw their relative shares declined during the quarter |
| Our customers have become more cautious when booking regular production forecasts on the expectation that there would be more capacity available when needed |
| Sequential revenue increase is primarily attributable to the seasonal nature of our EMS business, while the year-over-year revenue decline is primarily due to the broad-based soft electronics demand environment |
| Consolidated net revenues increased 13% sequentially and declined 18% year-over-year |
| Our automotive consumer and other market segment declined on a relative and absolute basis |
| Product mix and the cessation of foreign exchange benefits will result in a lower quarterly operating margin similar with year-to-date levels |
| So if we look at the Q4 guidance down low-to-mid single digit |
| Although we are seeing some level of the growth, the momentum seems to be slowing down a little bit, because there are certain areas where there will be some inventory that needs to be digested |
| Gross profit for our ATM business was 18.6 billion, up 2.4 billion sequentially and down 10.2 billion year-over-year |
| Gross profit margin for ATM business was 22.2%, up 1 percentage point sequentially and down 7 percentage points year-over-year |
| Our customers have been more cautious in their approach towards restocking |
| For the third quarter 2023, revenues for ATM business were at 3.7 billion, up 7.6 billion from the previous quarter and down 15.1 billion from the same period last year |
| Net income for the quarter was TWD8.7 billion, representing an increase of 1.1 billion sequentially, and a decline of 8.8 billion year-over-year |
| During the quarter, EMS revenues were TWD71 billion, improving 10.6 billion or 18% sequentially and declining 19.7 billion or 22% year-over-year |
| So, I assume, given your steady decline in Q4 ATM revenue, so your loading should be below mid 60s in Q4 |
| For our ATM business, in NT dollar terms, our ATM fourth quarter 2023 revenues should decline low-to-mid-single digits quarter-over-quarter |
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