校正紀錄
本檔為 AI 語音轉寫，落地前已校正下列轉寫誤植；未列出者為原文。Memo 與 Transcript 兩區塊同步改。 - 刪除站方募款宣傳行 - MPO（多模光學）→ NPO（Near Package Optics，近封裝光學）（Memo 2 處、Transcript 3 處；語音轉寫誤植，與 CPO 並存之 NPO 脈絡一致） - CPU → CPO（Transcript 6 處，皆在談 CPO 營收、量產、聯合新聞稿脈絡；「GPUs, CPUs, ASICs」句保留） - unsubstate → on-substrate (oS)（Memo 1 處、Transcript 3 處）；OSI → oS；LEAP cells → LEAP sales（3 處）；LEAD business → LEAP business；boundary partner → foundry partner - Memo 區塊 EMS 毛利率「年減 0.4 個百分點」刪除：逐字稿該 0.4ppt 年減為 EMS 營業利益率（3.3%），毛利率 YoY 未揭露 - 「on World F.」無從判讀，改標 [待確認：World F]，不臆測（語意為以結構性毛利率上限作為明年基準） - 數字驗算：2,441.61 億 × 22.1% ≈ 539.6 億（毛利）；毛利 − 費用 207.85 億 = 331.82 億，與營業利益 331.42 億差 0.4 億（其他營業項目）；ATM 1,515 × 30.6% ≈ 463.6 億，464 − 162 = 302 億；ATM 占比 1,515 ÷ 2,441.61 = 62%；EMS 935 × 8.3% ≈ 77.6 億、− 費用 5.0% ≈ 營業利益 31 億，均相符 - EPS：基本 6.13／稀釋 5.84（逐字稿口述 fully diluted 5.84、basic 6.13；淨利 269.96 億 ÷ 6.13 ≈ 44.0 億股，相符） - 2026 CapEx 口述「from 10.5 to 11.5」為 US$ 十億元，即 US$105 億 → 115 億；Haas 提問稱「revised twice to date」，公司頁沿革為 85 → 105 → 115 億
日月光投控_2026-10-29
警語：此 Memo 和逐字稿為 AI 生成，可能因為音檔品質導致轉錄逐字稿有誤，或是 AI 曲解原意／幻覺導致 Memo 內容有誤，請以原始音檔為準。
Memo 亮點 • 第三季合併營收創新高達新台幣 2,442 億元，季增 28%，年增 45%。ATM 業務營收 1,515 億元，季增 20%，年增 51%。EPS（稀釋後）為 5.84 元，基本 EPS 為 6.13 元，前三季累計稀釋 EPS 13.40 元，基本 EPS 14.17 元。ATM 業務毛利率達 30.6%，突破歷史結構性天花板，全年毛利率基礎提升至 30%。 [IR - 00:03:46] [IR - 00:07:46] [IR - 00:08:12] • LEAP 業務持續高速成長，2026 年 LEAP 營收預估由上季預期的 37 億美元上修至超過 40 億美元，2027 年預計再倍增。CPO（共同封裝光學）2027 年預計貢獻超過 5 億美元營收，並已於 2026 年第四季開始量產。 [CFO - 00:24:11] [CFO - 00:36:58] [CFO - 00:58:07] • 公司 2026 年資本支出（CapEx）再度上修至 115 億美元，60% 用於 LEAP，40% 用於主流業務。2027 年 CapEx 預計將高於 2026 年，並積極尋求廠房與設備擴充。 [CFO - 00:41:21] [CFO - 00:43:29] 獲利 • 第三季合併毛利為 540 億元，毛利率 22.1%，季增 1.1 個百分點，年增 5 個百分點。ATM 業務毛利率 30.6%，季增 3.3 個百分點，年增 8 個百分點。營業利益 331 億元，季增 57%，年增 151%。稅後淨利 270 億元，季增 28%，年增 148%。 [IR - 00:04:16] [IR - 00:05:34] [IR - 00:06:27] • ATM 業務營業利益 302 億元，季增 53%，年增 178%。營業利益率 20%，季增 4.3 個百分點，年增 9.2 個百分點。 [IR - 00:09:35] 營收 • 第三季合併營收新台幣 2,442 億元，季增 28%，年增 45%。ATM 業務營收 1,515 億元，季增 20%，年增 51%。EMS 業務營收 935 億元，季增 42%，年增 35%。 [IR - 00:03:46] [IR - 00:07:46] [IR - 00:13:12] 訂單 • LEAP 及非 LEAP 產能需求持續超過供給，部分測試產能仍待新廠房建置。2027 年 LEAP 營收預計倍增，2026 年 LEAP 營收預估上修至超過 40 億美元。 [IR - 00:02:06] [CFO - 00:23:45] [CFO - 00:24:11] 產品組合 • LEAP 服務主要來自運算應用，運算應用營收季增 39%，汽車、工業、消費類各增約 14%，通訊應用增 8%。LEAP 產品組合提升帶動毛利率突破結構性天花板，未來毛利率區間將隨 LEAP 組合動態變動。 [IR - 00:11:16] [IR - 00:08:40] • CPO（共同封裝光學）2027 年預計貢獻超過 5 億美元營收，並已於 2026 年第四季開始量產。NPO（近封裝光學）與 CPO 將共存，ASE 皆有能力承接。 [CFO - 00:36:58] [CFO - 00:58:07] 稼動率 • 第三季 ATM 產能維持滿載或接近滿載，傳統產品線利用率提升，LEAP 產能持續擴充但仍供不應求。測試產能受限於空間與設備，優先投資於晶圓測試。 [IR - 00:02:06] [CFO - 00:45:55] 擴廠規劃 • 2026 年資本支出上修至 115 億美元，60% 用於 LEAP，40% 用於主流業務。2027 年 CapEx 預計將高於 2026 年，積極尋求廠房與設備擴充，台灣有 22 個建案進行中，預計 2027 年前超過半數可貢獻營收。 [CFO - 00:41:21] [CFO - 00:43:29] [IR - 00:18:09] 公司展望、未來成長動能 • 第四季合併營收預計季增 6-8%，毛利率 23-24%，營業利益率 14.5-15.5%。ATM 營收預計季增 11-13%，毛利率再提升 100-200 個基點。EMS 營收持平，營業利益率約 2%。2027 年 LEAP 營收預計倍增，CPO 貢獻將顯著提升。公司將持續加大投資以支撐擴張，預期明年仍有強勁成長動能。 [CFO - 00:20:37] [CFO - 00:21:07] [CFO - 01:04:54] 成本毛利 • 第三季合併毛利率 22.1%，季增 1.1 個百分點，年增 5 個百分點。ATM 毛利率 30.6%，季增 3.3 個百分點，年增 8 個百分點。公司表示結構性毛利率天花板已成為新基礎，未來毛利率將隨 LEAP 組合動態提升。EMS 毛利率 8.3%，季減 0.6 個百分點，主因零組件成本上升。 [IR - 00:04:16] [IR - 00:08:12] [IR - 00:13:12] 銷售／管理／研發費用 • 第三季營業費用 208 億元，季增 18 億元，年增 51 億元，主因人力、分紅及 LEAP 相關研發支出增加。營業費用率 8.5%，季減 1.5 個百分點，年減 0.8 個百分點。ATM 營業費用 162 億元，費用率 10.7%，季減 1 個百分點，年減 1.1 個百分點。 [IR - 00:04:41] [IR - 00:09:08] 營業利益 • 第三季合併營業利益 331 億元，季增 57%，年增 151%。ATM 營業利益 302 億元，季增 53%，年增 178%。EMS 營業利益 31 億元，季增 15 億元，年增 6 億元。 [IR - 00:05:34] [IR - 00:09:35] [IR - 00:14:34] 業外損益 • 第三季非營業損失 4 億元，包含淨利息支出 26 億元，季增 8 億元，主因負債水準提升。 [IR - 00:05:44] 稅率 • 第三季所得稅費用 48 億元，有效稅率 14.8%。受惠稅法及匯率變動，全年有效稅率預估 16-17%。 [IR - 00:06:13] 現金、現金流 • 季末現金及等價物與流動金融資產合計 1079 億元，利息負債 4065 億元，淨負債對權益比 66%。預期第四季淨負債比將下降。EBITDA 為 580 億元。 [IR - 00:15:58] • 公司預期明年將持續負現金流，但將透過多元資金來源（如貿易融資等）支應擴張。 [CFO - 00:44:00] 擴廠規劃 • 2026 年資本支出上修至 115 億美元，60% 用於 LEAP，40% 用於主流業務。2027 年 CapEx 預計將高於 2026 年，積極尋求廠房與設備擴充，台灣有 22 個建案進行中，預計 2027 年前超過半數可貢獻營收。 [CFO - 00:41:21] [CFO - 00:43:29] [IR - 00:18:09] 市場競爭策略 • 針對 TSMC 子公司進入 on-substrate (oS) 業務，公司認為目前自身規模仍為主導者，競爭屬於必要性，短期內不會對市佔率產生重大影響，且不預期出現價格戰，因需求遠大於供給。 [Analyst - 00:52:32] [CFO - 00:53:49] 產品價格 • 目前 LEAP 及主流封測業務皆處於有利的價格環境，供需緊張有助於價格提升，帶動毛利率改善。公司將依情況調整最適價格策略。 [CFO - 00:29:56] [Analyst - 00:50:59] 新產品／新技術 • LEAP 產能為未來多世代產品製造基礎，不僅限於 AI 產品。CPO（共同封裝光學）2026 年 Q4 已量產，2027 年營收貢獻將超過 5 億美元。NPO（近封裝光學）與 CPO 將共存，ASE 皆有能力承接。 [IR - 00:19:07] [CFO - 00:58:07] 產業供需 • LEAP 及非 LEAP 產能需求持續超過供給，部分測試產能仍待新廠房建置。2027 年 LEAP 營收預計倍增，2026 年 LEAP 營收預估上修至超過 40 億美元。CPO 需求強勁，2027 年貢獻將顯著提升。 [IR - 00:02:06] [CFO - 00:23:45] [CFO - 00:36:58] 產業狀況 • AI 加速器相關業務帶動運算應用成長，汽車、工業、消費類需求回升，手機與 PC 需求仍疲弱但被其他領域補足。EMS 業務受 AI 建置帶動零組件短缺，成本上升壓抑毛利率。 [IR - 00:15:04] [CFO - 00:55:45] 下游客戶 • AI、高效能運算（HPC）客戶需求強勁，CPO、LEAP 等新技術帶動新客戶與新應用。部分消費性電子客戶（手機、PC）需求疲弱，但汽車、工業、AI 相關客戶需求補足。 [IR - 00:15:04] [CFO - 00:55:45] 原物料／關鍵零組件 • EMS 業務因 AI 建置帶動零組件短缺，零組件成本上升，壓抑 EMS 毛利率。 [IR - 00:12:47] 匯率 • 新台幣匯率對毛利率有正面影響，第三季對 ATM 毛利率季增 0.5 個百分點，年增 3.3 個百分點。第四季預設匯率為 1 美元兌 31.9 元新台幣，與第三季相同。 [IR - 00:10:02] [CFO - 00:20:21] Transcript Presentation Speaker01
(00:00:13)We were always moving closer, even when we couldn't see all the lines that ran between us all the ways you'd get to.
Kenneth Hsiang - ASE, Investor Relation
(00:00:43)穿過距離穿過時間每個訊號依然向前就算世界不停地改 Hello, I am Ken Hsiang, the head of Investor Relations at ASE Technology Holding. Welcome to our third quarter 2026 earnings release. I am joined today by Joseph Tung, our CFO. Thank you for joining us today.Please refer to our safe harbor notice on page two. All participants consent to having their voices and questions broadcast via participation in this event. If you do not consent, please refrain from asking questions or leave the session now. I would like to remind everyone that the presentation that follows may contain forward-looking statements. These forward-looking statements are subject to a high degree of risk, and our actual results may differ materially.
Kenneth Hsiang - ASE, Investor Relation
(00:01:38)For the purposes of this presentation, dollar figures are generally stated in New Taiwan Dollars unless otherwise indicated. As a Taiwan-based company, our financial information is presented in accordance with Taiwan IFRS. Results presented using Taiwan IFRS may differ materially from results using other accounting standards, including those separately presented by our subsidiaries.
Kenneth Hsiang - ASE, Investor Relation
(00:02:06)For today's presentation, I'll give a brief business update and then go through the Q3 results. Joseph will close with our Q4 outlook. During the third quarter, our ATM capacities ran at or near full utilization rates. Demand for our services continues to outpace our ability to supply such services within our LEAP and much of our non-LEAP capacities.Our revenues grew faster than we had initially expected, driven primarily by faster-than-expected installations of high-demand LEAP capacities. Non-LEAP also performed slightly better than initial expectations.
Kenneth Hsiang - ASE, Investor Relation
(00:02:50)And even though, historically speaking, third quarters tend to be driven by seasonal strength, given the increasing mix of LEAP services, seasonality related to underlying consumer buying patterns is becoming less of a factor in our overall loading patterns. Overall, ATM profitability also improved more than anticipated, primarily as a result of higher-than-expected LEAP loading.
Kenneth Hsiang - ASE, Investor Relation
(00:03:19)Our EMS business's third quarter grew slightly ahead of our expectations. The third quarter continues to exhibit strong underlying seasonal demand for our SiP-related products. Our EMS business's profitability was in line with our expectations. Please turn to page three, where you will find our third quarter consolidated results.For Q3, fully diluted EPS was $5.84, and basic EPS came in at $6.13. Year-to-date through Q3, our fully diluted EPS was $13.40, and basic EPS was $14.17. Consolidated net revenues reached a record $244.2 billion, up 28 percent sequentially and 45 percent year-over-year.
Kenneth Hsiang - ASE, Investor Relation
(00:04:16)Gross profit was 54 billion dollars with a gross margin of 22.1 percent, up 1.1 percentage points sequentially and five percentage points year over year. These sequential improvements stem from higher LEAP content in our ATM business. The annual improvement reflects higher ATM revenue and a more favorable NT dollar environment.Operating expenses totaled $20.8 billion, up $1.8 billion sequentially and $5.1 billion year-over-year, primarily driven by higher headcount, profit-sharing expenses, and further R&D spend to support LEAP initiatives. As a percentage of revenue, operating expenses declined sequentially by 1.5 percentage points and annually by 0.8 percentage points to 8.5 percent.
Kenneth Hsiang - ASE, Investor Relation
(00:05:11)Are OPEX percentage declines principally from LEAP revenue growth after previous periods of R&D investment？ We currently see operating expenses continuing to rise on an absolute level, but on a percentage basis should remain near the range demonstrated in the current year.This delivered an operating profit of 33.1 billion dollars, up 57 percent quarter over quarter and 151 percent year over year.
Kenneth Hsiang - ASE, Investor Relation
(00:05:44)We had an operating margin of 13.6 percent, expanding 2.5 percentage points sequentially and 5.8 percentage points annually. Rising company profitability was primarily driven by higher loading and expanding LEAP product mix. Non-operating loss totaled 0.4 billion dollars. This amount includes net interest expenses of 2.6 billion.Up 0.8 billion sequentially due to higher debt levels. Tax expense was 4.8 billion dollars. Our effective tax rate for the quarter was 14.8 percent.
Kenneth Hsiang - ASE, Investor Relation
(00:06:27)During the quarter, we saw beneficial changes to tax regulations and foreign currency movements which positively affected our net deferred tax position. Given these changes, we now expect our full-year effective tax rate to be between sixteen to seventeen percent. Net income for the quarter was twenty-seven billion dollars, up twenty-eight percent sequentially and one hundred forty-eight percent year over year.
Kenneth Hsiang - ASE, Investor Relation
(00:06:57)On page four is a graphical view of our consolidated quarterly performance. For the third quarter twenty twenty-six, our ATM business represented sixty-two percent of our consolidated holding company revenues while representing ninety-one percent of our operating profits. This is compared to fifty-nine percent of consolidated holding company revenues while representing eighty-two percent of operating profit in the third quarter of last year.As our ATM LEAP business continues to outgrow our other service areas, we continue to believe that our ATM business will continue to increase as a percentage of our overall business and profitability. On page five is our
Kenneth Hsiang - ASE, Investor Relation
(00:07:46)ATM P&L. For the third quarter of 2026, we recorded record revenues for our ATM business of 151.5 billion, up 25.3 billion sequentially and 51.2 billion annually, representing an increase of 20 percent sequential and 51 percent annual growth.Gross profit for our ATM business was 46.4 billion, up 11.9 billion sequentially and up 23.7 billion year-over-year. ATM gross profit margin was 30.6 percent, up 3.3 percentage points sequentially and 8 percentage points annually, driven by higher operating leverage and a more favorable revenue mix.
Kenneth Hsiang - ASE, Investor Relation
(00:08:40)Particularly a higher mix of LEAP. Our gross margin has surpassed our historical structural margin ceiling. A theoretical structural margin for our ATM business would now substantially depend upon the amount of expected LEAP product mix. Given that our LEAP business continues to grow rapidly, our margin range now appears to be dynamic rather than fixed structurally.During the third quarter, operating expenses were 16.2 billion, up 1.5 billion sequentially, and 4.3 billion year-over-year. These sequential and annual increases in operating expenses are primarily related to higher overall labor costs and general R&D expenses. Our operating expense ratio was 10.7 percent.
Kenneth Hsiang - ASE, Investor Relation
(00:09:35)Down one percentage point sequentially and one point one percentage points annually. We are approaching our near-term ATM op-ex percentage target as we balance costs in a more technology-led growth framework. During the third quarter, operating profit was 30.2 billion dollars, representing a sequential 53 percent increase of 10.5 billion.And a 178 percent annual increase of 19.4 billion. Operating margin was 20 percent, up 4.3 percentage points sequentially and up 9.2 percentage points year-over-year. The NT dollar had a positive 0.5 sequential and a 3.3 annual percentage point impact to our gross and operating margins.
Kenneth Hsiang - ASE, Investor Relation
(00:10:30)On page six, you'll find a graphical representation of our ATM P&L. The chart currently highlights our gross profit margin. Over the displayed time frame, our margin improvement has been largely driven by improving utilization rates within traditional product lines and increasing LEAP product mix. In this time frame from peak to trough, our gross profit margin percentage has climbed 8.7 percentage points.On page seven is our ATM revenue by communications, computing, and consumer applications. LEAP services are primarily included within our computing applications, with a lesser amount being included in our communications applications.
Kenneth Hsiang - ASE, Investor Relation
(00:11:16)As can be seen here, our computing applications percentage continues to grow steadily. With a large amount of our LEAP services coming from computing, revenues for our computing application grew by 39 percent. Meanwhile, automotive, industrial, and consumer all grew by about 14 percent. Our communications application had the least amount
Kenneth Hsiang - ASE, Investor Relation
(00:11:43)Of growth during the quarter, growing eight percent. At this time, we continue to believe that our computing application will lead growth into 2027 and 2028. On page eight, you will find our ATM revenue by service type. At the beginning of the year, we believed that our test business, led by rapid expansion of our wafer sort business, would outpace growth of our assembly business.However, during the year our assembly business has been showing even stronger than expected growth, especially as it relates to our traditional businesses. The demand for our test services continues to be robust. However, as with much of our business expansion, test capacities are awaiting new facilities.
Kenneth Hsiang - ASE, Investor Relation
(00:12:32)As stated during the previous quarter, we believe that both our assembly and test businesses will grow at similar rates during the year. On page nine, you can see the third quarter results of our EMS business.Our EMS business has historically focused more on products closer to consumer-driven end markets. Many of these products are experiencing a higher component cost environment driven by shortages caused by the rapid AI build-out. These extra pass-through costs are increasing both our reported revenues and raw material costs.
Kenneth Hsiang - ASE, Investor Relation
(00:13:12)When netted, this ultimately negatively impacts our EMS business's margin performance. EMS revenues grew 42 percent sequentially and 35 percent annually to $93.5 billion. Sequentially, our EMS business's gross margin decreased by 0.6 percentage points to 8.3 percent.This change was principally the result of higher pass-through component costs and product mix differences. EMS operating expenses increased by 0.4 billion dollars sequentially and by 0.8 billion dollars annually. Our third quarter EMS operating expense ratio was five percent, declining one point five percentage points sequentially and zero point six percentage points annually.
Kenneth Hsiang - ASE, Investor Relation
(00:14:08)Operating margin came in at 3.3 percent, improving 0.9 percentage points sequentially and declining 0.4 percentage points annually. These sequential margin improvements are the result of product mix offset by a higher component cost environment. The annual decline is the result of higher component costs.Our EMS third quarter operating profit was 3.1 billion dollars, up 1.5 billion dollars sequentially and up 0.6 billion dollars annually. On the bottom of the page you will find a graphical representation of our EMS revenue by application. Generally, the moves in the consumer and communication categories are related to the seasonality of the underlying products we service.
Kenneth Hsiang - ASE, Investor Relation
(00:15:04)And though the communications application percentage looks to have declined, on an absolute dollar basis, our EMS communications application grew quarterly. Annually, the communications application percentage declined, primarily due to underlying customer production timing changes. The growth in the computing application is largely driven by business related to AI accelerator products.From a longer-term perspective, we continue to pursue potential synergies between our ATM and EMS businesses to co-develop system level solutions. By integrating critical EMS competencies with ATM technologies, we have the potential to optimize entire systems end to end.
Kenneth Hsiang - ASE, Investor Relation
(00:15:58)Applying the same co-engineering disciplines that successfully scaled SiP architecture. As complexities increase at the die and package level, the system level will need to follow suit. On page ten, you will find key line items from our balance sheet. At the end of the quarter we had cash, cash equivalents, and current financial assets of one hundred seven point nine billion dollars.Our total interest bearing debt increased by 100.2 billion to 406.5 billion. Total unused credit lines amounted to 457.3 billion. Our EBITDA for the quarter was 58 billion dollars. Our net debt to equity ratio this quarter was 66 percent.
Kenneth Hsiang - ASE, Investor Relation
(00:16:54)As expressed in previous quarters, the third quarter represents the near-term peak of our net debt to equity ratio. We expect this ratio to come down somewhat in the fourth quarter. On page eleven, you will find our equipment capital expenditures relative to our EBITDA.Machine and equipment capital expenditures for the third quarter in U.S.dollars totaled $2.1 billion, of which $1 billion was used in packaging operations, $1.1 billion in testing operations, $41 million in EMS operations, and $5 million in interconnect materials operations and others.
Kenneth Hsiang - ASE, Investor Relation
(00:17:41)In addition to spending on machinery and equipment, during the quarter we also spent 1.8 billion dollars on facilities and land. We continue to believe that the growth of the company is highly dependent upon the execution of our various facility teams to deliver new manufacturing space and install equipment in those buildings for scaled-up mass production.
Kenneth Hsiang - ASE, Investor Relation
(00:18:09)We believe the ability to accelerate capex at this point to be beneficial to the company, as it allows us to bring in new manufacturing capacity at a time when we are running full. Year to date, we have spent eight billion dollars of capex, four point eight billion dollars in equipment, and three point two billion dollars in facilities. We currently have twenty-two ongoing building projects in Taiwan.
Kenneth Hsiang - ASE, Investor Relation
(00:18:39)We expect more than half of these projects will start supporting some level of revenue from now through 2027. One final point before handing the presentation off. Our overall business outlook continues to be increasingly defined by our leading edge capacities. And though our LEAP services are frequently tied to AI-related products,We see our LEAP capacities as the manufacturing basis for future generations of products, not just AI-related. Multi-chip interconnectivity on leading-edge devices has become the norm.
Kenneth Hsiang - ASE, Investor Relation
(00:19:26)We are in the midst of an evolution of electronics production, where systemization is increasingly happening at the chip level. Simply put, what we are seeing is the next evolution of miniaturization.It bears repeating the capacities we are putting in place are not specifically made for AI. AI products just so happen to need the performance benefits LEAP interconnections provide. Our investments today are laying the future groundwork for generations of products to come. I'll hand the presentation over to Joseph to walk through the company's Q4 outlook.
Joseph Tung - ASE, CFO
(00:20:13)Thank you, Ann.Let me give everybody a fourth quarter guidance. Based on our current business outlook and exchange rate assumption of 1 US dollar to 31.9 NT dollars, which remains the same as in third quarter, management projects overall performance for the fourth quarter of 2026 to be as follows.On a consolidated basis in NT dollar terms, consolidated fourth-quarter revenues should grow by six to eight percent quarter over quarter. Consolidated fourth-quarter gross margins should be between twenty-three to twenty-four percent. Consolidated fourth-quarter operating margins should be between fourteen and a half to fifteen and a half percent.
Joseph Tung - ASE, CFO
(00:21:07)For ATM business in NT dollar terms, our ATM fourth-quarter revenues should grow by eleven to thirteen percent quarter over quarter. Our ATM fourth-quarter gross margins should increase by one hundred to two hundred basis points quarter over quarter. For EMS in NT dollar terms, our EMS fourth-quarter revenues should be flat-ish quarter over quarter.
Q&A Kenneth Hsiang - ASE, Investor Relation
(00:21:39)Our EMS fourth-quarter operating margins should be around two percent. Now with that, we'll open the floor for questions. During the Q&A session that follows, we would appreciate it if your questions could be as clear and concise as possible and asked singularly. The moderator will be receiving each question and repeating each asked question. After an initial question, the participant may ask a follow-up question.Clarifications of the earlier question or another
Iris Wu - ASE, Investor Relation
(00:22:26)question entirely, then we will move to the next participant. Participants may return to the queue for any additional questions and/or clarifications. Thank you. If you have any question, please raise your hand. Our first question is from Sunny Lin of UBS.
Sunny Lin - UBS, Analyst
(00:22:41)Sunny？ Hello, could you hear me okay？ Yes. Thank you very much for taking my questions and congrats on the very strong results. My first question is on your overall LEAP sales, given the importance and your accelerating expansion. Any update on your LEAP sales for 2027, and how should we think about the split by full process, substrate outsourcing, and test？
Joseph Tung - ASE, CFO
(00:23:45)For 2027, we're expecting to remain as well as projected to double our LEAP revenue for the year. Well then, sorry, maybe just to follow up, and that'll be my second question： any update on your LEAP sales for 2026？Yeah, as I said, we are upping our 2026 LEAP revenue from originally
Sunny Lin - UBS, Analyst
(00:24:23)3.7 billion that we mentioned last quarter to over
Kenneth Hsiang - ASE, Investor Relation
(00:24:35)4 billion for this year. Got it, and go ahead please. Sure, sorry, not sure if it's our connection issue but I lost part of the response. But it's okay, we will check the transcripts. So my second question will be on the full process CoWoS. How's the overall ramp and yield for the key products second half of this year and now looking into 2027 with your expansion？ Should we assume a more diversified customer base and product base？ And how—yeah, so Sunny, what you're asking about are full process business and then looking for any update in terms of the full process yield and such, right？ It's not correct and then the product base going to 2027.
Joseph Tung - ASE, CFO
(00:25:30)Um, I think for 2026 our full process revenue is on track and we're keeping a 300 million dollar revenue for the year, and I think everything else is going on as planned. For next year, we're expecting over a billion dollar revenue coming from full process, and of course the yield is at the
Iris Wu - ASE, Investor Relation
(00:26:02)level that we can get into mass production and major shipments. Got it, thank you very much. Questions setting, yes, thank you. If you have any question, please raise your hand. Okay, your next question is from Gokul Hariharan of JPMorgan.Hi, Joseph and Ken, thanks for the interview. Hello, Goku？ Goku, I cannot hear you. Okay, next question is from Haas Liu.Of BofA, can you hear me？
Gokul Hariharan - JPMorgan, Analyst
(00:27:58)OK, now we go back to Gokul Hariharan of JPMorgan. Hello. Hello, Goku. Hi, can you hear me？ Yes. Oh, OK, all right. So thank you very much for taking the question. Hi, Joseph and Ken.My first question is on gross margins.Could you talk a little bit about where we are seeing this upside in gross margins compared to our guidance range for Q3？Looks like a very clean kind of 150-200 basis points beat and further upside in Q4 as well. Is it pricing or is it your full process is ramping up better in terms of margins？
Gokul Hariharan - JPMorgan, Analyst
(00:28:50)And secondly, on the same topic, now that we have already exceeded our previous structural range, and obviously the product mix is also different, you're still expecting LEAP to grow faster than the overall product mix. What is the kind of gross margin range we should think about as we think about the next couple of years？
Joseph Tung - ASE, CFO
(00:29:14)Well, as we continue to ramp up our LEAP business, I think there will be further margin improvement in fourth quarter as well as going into next year.I think at this point, I think the so-called structural margin no longer applies because of the significant and rapidly changing business structures that we are having today. So if we are to comment on our margin, I think the first thing we will say is that the so-called structural margin ceiling has now become the base for us.
Joseph Tung - ASE, CFO
(00:29:56)And looking into next year, I think as we continue to ramp up our overall capacity and also in a very friendly type of pricing environment, we believe that we will continue to see gross margin improvement on a quarterly basis from the base of 30 percent, and we will continue to see sequential improvement in our margin on a quarterly basis for next year as well.
Gokul Hariharan - JPMorgan, Analyst
(00:30:26)Sorry, just to follow up there, if you look at the overall portfolio, maybe we leave testing aside within packaging, what would be the highest gross margin that you are able to earn in any of the LEAP process？ Is it already like close to 40 percent for some of the processes or that is too ambitious？Goku, you're looking for the potential highest performing margin for LEAP at this point？ Is that your question？ Within the three or four components that are there, which one is the highest performing and what are those levels just to understand？ Like, what is the room for travel in terms of your overall gross margins given your mix is clearly improving quite rapidly？
Joseph Tung - ASE, CFO
(00:31:17)I don't think we need, we want to comment on the different margins in different products or different packages, but I think overall, I think the overall LEAP business, both on assembly and test, are margin creative and will continue to see improvement.
Gokul Hariharan - JPMorgan, Analyst
(00:31:43)In the, you know, in our margin expansion. Okay, okay, got it. My second question is just to follow up upon your LEAP full process revenues for next year.Joseph, I think you mentioned more than one billion dollars, but that sounds quite conservative given you're already doing three hundred million dollars in the first quarter of ramp this year.Could you talk a little bit more about your engagements on the full process andalso, if you ramp up all these like 22 projects that you are currently ramping up in terms of facilities, both Greenfield and Brownfield, what does it mean in terms of, let's say, your ramp it up in 2028？ Any indication in terms of
Gokul Hariharan - JPMorgan, Analyst
(00:32:31)what is the investment required from a capital perspective and what does that mean for continued growth？Does it mean that you continue to grow at similar rates even into 2028, not just for 2027？ Goku, you're asking about the characterization of our full process business and in certain regards kind of a total return outlook, is that correct？ Total growth outlook given the very sharp ramp in the facilities.
Joseph Tung - ASE, CFO
(00:33:07)We do have multiple customer engagements at this point, although we are pretty much constrained by our capacity, and it were aggressively building that up so from the business outlook that we have so far.I think our resource is quite limited. So we are although the demand is there, but we're still trying very hard to catch up in terms of supply. And for next year, we are expecting that you know that demand can be way higher than what would be able to deliver it. So right now we're still projecting over a billion dollar revenue coming from full process.
Joseph Tung - ASE, CFO
(00:33:53)So I guess that's, I think the biggest bottleneck today is really still the space, although many different areas we do have find ourselves being constrained, but space is really one of the biggest constraints that we are facing today.
Iris Wu - ASE, Investor Relation
(00:34:23)OK, that's helpful,
Laura Chen - Citigroup, Analyst
(00:34:38)thank you. Our next question is from Laura Chen of Citigroup. Hello, hi Christina, can you hear me？ Yes. Yes, hi, thank you for taking my questions. Just want to follow that one billion US dollars like the full process, can you give us more color about that？ What type of the full process will see the contributions next year and also for our LEAP overall revenues, obviously still more driven by the substrate part.But we do see that the our companies have various different
Kenneth Hsiang - ASE, Investor Relation
(00:35:31)type of technology. So just wondering, can you give us more color about the growth breakdowns in particularly in the full process in the next two years？ Hi, Laura, this is Ken.I don't think we have a lot of characterization in terms ofwhat types of full process. I think when we talk about full process, it's generally much more customer specific too. I think we probably can't really comment that much on that at this point. Okay, sure, understood. So that also seems like the growth into next year is
Joseph Tung - ASE, CFO
(00:36:02)more coming from the on substrate part, yes, but we are seeing very, very strong demand in test as well and on assembly and test we are both seeing a very strong momentum again. We are actually in constraint with our capacity build up so we're still trying very hard to try to catch up with it in terms of full process. I think you know as I mentioned we aremoving ahead and on track and we hope that we can supply more for next year and but at this point we are conservatively looking at about over a billion dollar revenue coming from that and there are some other new projects that we're entering, for example CPO.
Laura Chen - Citigroup, Analyst
(00:36:58)And we're expecting over half a billion of revenue coming from CPO as well for next year. That will be included in our LEAP revenue. Thank you very much. That's actually my second question about the CPO because we see that the Jensen's earlier last week he mentioned about that thirty times the capacity will pick up for next years so I assume that also yes.In the LEAP revenues, but will we like going forward to kind of a split that revenues breakdown for better investor understanding on that part growth. I think we will, we are kind of breaking it down already in terms of oS, in terms of full process, in terms of wafer sort, and as I mentioned CPO.
Laura Chen - Citigroup, Analyst
(00:37:53)Okay, thank you.So if I may also check on that, do we have any expectation on the CPO revenue contributions in two years？ In two to three years？ Yes. No, we have our projection for next year, but we will see, we'll have better clarity after we finish what we're, we're resetting that to do for
Iris Wu - ASE, Investor Relation
(00:38:32)now. Okay, sure, looking forward to that. Thank you very much. Thank you. Our next question is from Haas Liu of BofA.
Haas Liu - BofA, Analyst
(00:38:38)Hi, can you hear me now？Sorry, I was disconnected. Okay, thank you so much for taking my questions and congrats on the great results. I think just a quick follow up on the structural gross margins where you already reported the third quarter's IC ATM gross margin up to slightly higher than three percentage.So with your LEAP business set to be even higher in the next couple of quarters and also your mainstream packaging and testing business utilization pricing are actually also improving, can we use third quarter gross margin as a base case going forward for your overall IC ATM gross margin assumptions as long as the cycle holds？ Thank you.
Joseph Tung - ASE, CFO
(00:39:24)Yes, as I mentioned earlier, we're now using our structural margin ceiling as a base for next year on [待確認：World F].
Haas Liu - BofA, Analyst
(00:39:34)OK, so we can use roughly 30% of the gross margin as the base case for next year. Got it. Then we will see quarterly improvement for next year as well. OK, sequential improvement. The second thing is just on CapEx this year； you are already spending based on what you reported just now. You have already been spending.
Haas Liu - BofA, Analyst
(00:39:58)80 to 90 percent of your annual budget, which has been revised twice to date, to 10.5 billion US dollars on CapEx. Would you be able to provide some update on that since there are still a few months to end this year？ Also, looking into 2027, how should we think about that trajectory？ As one of your foundry partners also just now announced to buy another panel, should we also expect similar
Joseph Tung - ASE, CFO
(00:40:25)acquisition of the fabs or the facilities by ASE as well, and also more equipment procurement in the next couple of quarters to meet your customers' demand？ Yes, as I said, space continues to be a constraint, one of the constraints that we have, and we are aggressively seeking suitable existing plants for us to buy, but there is competition that is pretty keen and they're reallynot that many suitable factories for us to pursue at this point. So it's an ongoing effort that we are putting in. Also, for this year's CapEx, we are increasing our CapEx for the year from 10.5 to 11.5. Now, we're adding a billion, another billion.
Joseph Tung - ASE, CFO
(00:41:21)And of that billion, half of it will be for facilities as we continue to fit up our new factories, and the other half will be for equipment. Sixty percent of it will be for LEAP, and forty percent will be for the mainstream events.
Haas Liu - BofA, Analyst
(00:41:46)Got it, got it. And just on the overall pricing environment across your LEAP versus the mainstream packaging and testing business, how should we think about it since the supply-demand is still pretty tight and that they are awesome？ Sorry to stop you there. You're on question number three. Oh sure, sure, thank you so much. Thank you very much. Yeah, okay, yeah, I'll be back in the queue. All right, thank you. Our next question is from
Gokul Hariharan - JPMorgan, Analyst
(00:42:17)Gokul Hariharan of JPMorgan. Hi, a couple of follow-ups from my side.Thanks for the opportunity. So Joseph, I think you mentioned CapEx 11.5, higher by a billion dollars. Could you give an opinion on what you're thinking CapEx is going to look like next year？Are we still in an upward sloping curve for CapEx？And could you also talk a little bit about are you entering into any prepayment arrangements or anything like that with customers, given a lot of this new CapEx seems to be targeted at some of the key customers itself？ Yeah, that's my first question. Goku, you're looking for an update on our CapEx outlook going forward.
Kenneth Hsiang - ASE, Investor Relation
(00:43:07)And the kind of any funding arrangements that you have, repay, and the funding sources are around it. Well, we'll continue to see very strong demand coming in and
Joseph Tung - ASE, CFO
(00:43:13)we do have a very strong prospect for next year as well.So I at this point believe the CapEx spending for next year will be even larger than this year.And as we continue to ramp up our capacity, also in terms of R&D, we will continue to make the necessary investment to carry our missions.Funding-wise, we will continue to use whatever we do have, multiple cost-effective sources for us to raise funds to support our growth. I think at this point we are not shy； we will not be shy from making the necessary investment to support the expansion.
Joseph Tung - ASE, CFO
(00:44:00)So I think for next year we will continue to see negative cash flow. But I think this thing will be better solved in due course. In terms of, you know, as I mentioned, multiple funding sources that will also include some of the trade financing that we can arrange with different customers.Understood.
Gokul Hariharan - JPMorgan, Analyst
(00:44:53)And second question is on the test business. Could you characterize the growth of the test business going into next year, final test versus chip probing？ And I think how constrained are you on test versus packaging？ Like if you think about a relative scale, is the constraint on test bigger than packaging from a facility or equipment perspective？You're looking for an update in terms of looking at the test business going into next year and then in terms of the growth rates relative to what we're seeing in terms of the market, is that correct？ Or related to packaging and related to constraints related to packaging as well.
Kenneth Hsiang - ASE, Investor Relation
(00:45:25)I think same pattern will likely in third and fourth quarter of this year； it will repeat into next year.
Joseph Tung - ASE, CFO
(00:45:46)I think in terms of assembly issue, the growth ratio outpaces test given the limited resources that we have, and also for test under the current resource constraint, we will need to prioritize our investment more on wafer probe rather than final test.Okay, would you say test is more constrained in terms of your capacity versus demand compared to packaging, or is it largely similar？ I think it's mostly space. I think the space that we use for assembly is more efficient
Joseph Tung - ASE, CFO
(00:46:21)than test at this point. So given the constraint, we will allocate, we will put our priority on assembly, and for test, it will be for final, for wafer sort. Understood. That's very good. Thank you. Our next question is from Haas Liu of BofA.Hi, thanks for taking my question again. I think just a quick follow-up on the CapEx. A couple of your peers, including the ones in Korea and also your foundry partner, mentioned that they are preparing for a significant or meaningful step up upon the CapEx for next year. Given this is the first, the third time of CapEx upper revision for the year for ASE in 2026,
Haas Liu - BofA, Analyst
(00:47:14)do you also expect a similar statement to hold for your CapEx for next year？ You already mentioned that next year's CapEx will be higher than this year, but just wondering whether that kind of aggressiveness will be applied to ASE as well. Haas, you're looking for a characterization of how we view next year's investments.Qualitative way as compared to your peers' comment for a meaningful step up or just significantly higher than this year's CapEx. Do those statements also hold true for your CapEx outlook？
Haas Liu - BofA, Analyst
(00:48:04)Generally, we don't necessarily view our own CapEx relative to competitors or, I guess, peers in the market.
Kenneth Hsiang - ASE, Investor Relation
(00:48:27)In general, we do see that CapEx going into next year, we do see a lot of opportunity in terms of the business that will beavailable to us, and as Joseph previously mentioned, we will not be shy in terms of investing to get at that business.Does that answer your question？And just a related follow-up on the CapEx. One is probably more specifically on the CPO. That one of your key customers last week in its Germany events said it will hike CPO capacity by 15 percent next year at your facilities and then double again in 2028. Would you be able to share more detail on that？ What is your role in
Haas Liu - BofA, Analyst
(00:49:05)CPO packaging testing？ What is the related key packs you expect to spend, and how should we expect or try to quantify the related revenue contribution from that part of the business in the next few years from CPO based on your customer statement？ Haas, you're looking for a clarification in terms of the potential joint press release that wehad with our customer on CPO. Well, I don't think we will comment on specific product or specific customer. What we're saying is overall, we are the most active participant in the whole CPO effort and joining with our foundry partner as well as our customer.
Joseph Tung - ASE, CFO
(00:49:52)And just from the business that we are projecting to have from our customers, we're expecting to generate more than half a billion worth of revenue coming from CPO for next year.And my second question would be just on the pricing environment across your lead business and also the mature or mainstream packaging and testing business. It seems that the supply tightness is actually happening across the board. Would you be able to share some detail on how that pricing improvement has been helping your gross margins improvement in third quarter
Haas Liu - BofA, Analyst
(00:50:34)and into 2027？ How should we expect that the pricing negotiation with their customers at this stage to help your gross margin expansion beyond the product mix improvement？Well, I will not comment on pricing except we will continue to look for the most suitable pricing strategy depending on the situation, and all I can say is overall, I think both for LEAP as well as for general market, I think we are in a very pricing-friendly environment at this point.
Joseph Tung - ASE, CFO
(00:51:11)OK, OK, and could you also just try to quantify the I think you're on
Haas Liu - BofA, Analyst
(00:51:33)question number four, so OK, I thought you just thought of that. OK, yeah, I'll be back in a few. Alright, thank you. Our next question is from Charlie Chan of Morgan Stanley. Oh, hi, good afternoon Joseph, Ken, and Iris. Thanks for taking my questions. Just a quick some follow-up. Right, thanks for disclosing your CPO revenues. So if we may, can we know roughly is the testing parts, for example, insertion three, insertion four, bigger revenue contribution, or the on-substrate (oS) is a bigger contribution for that 0.5 billion US dollars revenue contribution？ I wouldn't be able to comment on that, sorry. Okay, no worries.
Charlie Chan - Morgan Stanley, Analyst
(00:51:55)Um, yeah, and secondly, uh, I think, uh, management mentioned you wouldn't hesitate to invest in space capacity whatever, uh, to gain share, right？ But, uh, recently there seems to be some industry dynamic that one of the TSMC's subsidiary, they are also getting into the on-substrate (oS) business, right？ Do you think that is likedemand overflow or is kind of a real competition to your own on-substrate (oS) business？ Charlie, you're asking for commentary in terms of competition within our lead business. Yeah, because now it seems like demand is not an issue, but my question is that whose space can really gain share, right？ Is that a fair comment？ Becauseone of the TSMC's subsidiaries
Charlie Chan - Morgan Stanley, Analyst
(00:53:30)kind of ordering lots of equipment, so we are a little bit worried whether there is kind of a gaining share expense of ASE. It's kind of sensitive to talk about our foundry partner's subsidiary situation, and all I can say is given the scale, UM, right, I think we are really the dominant player in this, uh, in this field, and, uh, you know, whatever competition, I think is out of necessity, uh, from our foundry partner as well as our customer. Um, you know, UM, I don't think, UM, at this point I don't think it will move the needle that much, uh, in terms of overall market share, uh, kind of situation.
Joseph Tung - ASE, CFO
(00:53:49)Um, you know, as I said, we arestill, uh, you know, in the catch-up mode, uh, trying to supply as much as we can, UM, to meet the demand. So, um, I think that's all I can say at this point. Gotcha. At least there wouldn't be any so-called price competition, right？ It's like demand is too big. Uh, whoever can squeeze more base or capacity can gain share, but don't worry about price and net margin. I think the sheer scale difference is I don't think a price war will be created. Makes sense. Yeah, so thank you. And if I may, non-AI, so we start to pick out some negative data points on PC and smartphone order cards as a way for front ends, so
Charlie Chan - Morgan Stanley, Analyst
(00:54:46)except for iOS ecosystem, right？ So Joseph orKen, can you share your observation about non-AI part of business and how that is going to impact your kind of meet and outlook？ Thank you. Well, at least for this year, I think the general market growth is way ahead of our expectation in the earlier part of the year. I think we will have more than 20 percent growth in general market business as well. That's largely, you know, we all understand that cellphone and PC is going through a very soft period given the high component prices that's kind of hurting the overall demand, but that is more than compensated by the
Joseph Tung - ASE, CFO
(00:55:45)recovery of automotive and industrial and more importantly AI adjacent chips requirement. So we are seeing, we're seeing very strong growth in this year for general market and we're expecting that to happen again in next year as well.
Charlie Chan - Morgan Stanley, Analyst
(00:56:41)OK, thank you, guys. Sorry for asking questions so late； I was experiencing some technical issues. Thanks for all the answers. Thank you, no problem. Thank you, thank you. Next question is from Sunny Lin of UBS.
Sunny Lin - UBS, Analyst
(00:57:02)Hello, thank you for taking my follow-up. I have a question on a very high level： what's your view on CPO versus NPO？ Besides CPO, could ASE also capture the opportunity in NPO as well？ And then, based on your commentary, will you be fair to say that...Based on the current visibility, it's fair to say that 2027 CPO will be able to ramp up, even with some technical challenges or optimization that initially need to go through.
Kenneth Hsiang - ASE, Investor Relation
(00:57:41)Sunny, you're looking for an update in terms of how we view the CPO versus NPO market, and then our capability to ramp up to support CPO going forward. Is that correct？ Yeah, or maybe just CPO as a technology isn't mature enough to start mass production for your key clients in 2027.
Joseph Tung - ASE, CFO
(00:58:07)Um, yes, as I mentioned earlier on our CPO, we're expecting mass production. We already started mass production in quarter four, and that will continue into 2027. And as we are projecting at this point, we're looking at...over half a billion worth of revenue coming from CPO in terms of NPO and CPO. I think they will both coexist, and it's just a matter of difference in overall performance between the two different types of packages. And for NPO, ASE will also be able to capture as well.If there is real demand, then yes, of course, we will be the major player in that.
Sunny Lin - UBS, Analyst
(00:59:00)Got it.Thank you.And a quick question on EMS.So looking at the shirt, the scenario is a bit different.And how should you think about the growth going into Q1？ Typically, Q1 should be a down quarter as the bill moderates.But this time around, the Flash is powerful, and clients are also launching.For new, lower-end models are going to early 2027, and so all things considered, how should we think about your EMS business？ May it be going to our first half of 2027？ Sunny, you're looking for the seasonal pattern of our EMS business as under potential underlying customer products change their timing of release. Is that correct？ Right, thank you.
Joseph Tung - ASE, CFO
(00:59:53)Well, we will continue to expect some growth going into 2027 as well for EMS business. I think the main focus will be on high-performance computing, and at this point, it represents roughly mid-teens of our revenue overall EMS revenue. We're seeing that ramping up pretty rapidly, and communication-wise or consumer-wise, it will be...At this point, relative to computing, is weaker, but all in all, I think the...or our EMS will continue to move into optical silicon photonics and power-related types of devices, and also, of course, AI-related business. That will be focusing on. So yes, we do expect further growth, particularly in the AI-related part of the business. Got it, thank you.
Haas Liu - BofA, Analyst
(01:01:02)Thank you. Next, we have Haas Liu of BofA coming back again. Haas, hi, yes, thanks, it's me again. I'm just wondering if you could provide more clarity on the...gross margin improvement in third quarter. How much of that is coming from the product mix improvement versus the LEAP price hike across your LEAP versus the mainstream business and your utilization improvement？ Because if we look at the trend in the past eight quarters or seven quarters, you already have experienced two step-ups on the gross...
Haas Liu - BofA, Analyst
(01:01:43)margins back in second half last year, and now in third quarter this year, there's another step up. So as you accelerate your LEAP business, I think going forward, in addition to the question I just had now on the third quarter first margins breakdown...from the relative benefits, I think just going forward may...
Kenneth Hsiang - ASE, Investor Relation
(01:02:10)I also check on your expectation whether that kind of growth, gross margin improvement will further accelerate through time 27. So you're looking for further clarification in terms of what has caused our margin pickup during the third quarter, and then whether those types of improvements are sustainable going forward. Is that yes？ That's right.
Joseph Tung - ASE, CFO
(01:02:32)Well, third quarter margin improvement is largely because of the LEAP ramp-up, as well as overall improvement in utilization across the board, including the general market or mainstream packages and test. And going forward, as we continue to ramp up our LEAP business...And having a healthy growth on the general market business as well, I think yes, we will continue to see sequential improvement in our margin on a quarterly basis going into next year.
Haas Liu - BofA, Analyst
(01:03:08)OK, I think just a follow-up on the application mix that in third quarter your computing business seeing a nice ramp. Would you be able to share more detail on that and what are the key applications you are targeting in that segment in the next one to two years between GPUs, CPUs, ASICs, and networking switches？
Kenneth Hsiang - ASE, Investor Relation
(01:03:32)You're looking for an answer in terms of the composition of our compute business. Is that correct？ Yeah, and your targeted application in the next few years between GPUs, CPUs, ASICs, and networking switches. I don't know if we can comment so specifically. Yeah, I think from a targeting perspective, we should be targeting everything.We can't be particularly specific.But in terms of our technologies, we do hope to be able to address all applicable products within that high-performance computing section. Got it.
Kenneth Hsiang - ASE, Investor Relation
(01:04:29)Thank you very much. Do you have another question, Haas？Oh no, I'm good for now.
Joseph Tung - ASE, CFO
(01:04:40)Thank you. Okay, I think you're the last question then. Oh, okay. Do we have any other questions online？ No, no more questions. Thank you everyone for attending the call.Joseph, do you wanna？ We had a fabulous third quarter, and we'll continue to see strong momentum going into fourth and into next year.We will make the necessary investment to support the overall expansion and will continue to expect good results for the fourth quarter as well as for next year.Thank you very much.