Haas

Haas inquired about the mainstream business outlook for the year, seeking a breakdown between shipment and pricing trends, especially given the above-seasonal performance. He also questioned the LEAP business guidance, noting the significant increase from previous estimates and asking for commentary on potential further upside. Later, Haas asked about the company's long-term capital intensity targets, how capacity growth is balanced against customer demand, and the ROIC metrics for CapEx in advanced nodes versus traditional business.

Answer

Dr. Tien Wu, COO, explained that mainstream business growth comes from IoT, automotive, industrial, and AI data center components, noting a friendly pricing environment. He attributed the revised LEAP guidance to improved visibility and careful capacity management, acknowledging demand exceeds current capacity. Regarding CapEx, Dr. Wu emphasized the AI boom and ASE's first-mover advantage, while Joseph Tung, CFO, stated they are not conservative with necessary investments, maintain a healthy financial condition, and see LEAP services as margin and return accretive, with ROE/ROIC improving.

Haas asked about the mainstream business outlook for the year, including shipment versus pricing trends, and sought clarification on potential further upside for the LEAP business beyond the TWD 3.2 billion guidance. Haas also inquired about capital intensity targets and the Return on Invested Capital (ROIC) for advanced nodes compared to traditional business.

Answer

Tien Wu explained that mainstream business, including IoT, automotive, industrial, and AI data center components, shows decent loading with a 'friendly' pricing environment. He clarified the LEAP revenue revision to TWD 3.2 billion reflects better visibility and careful capacity management, acknowledging demand still exceeds capacity. Regarding CapEx and ROIC, Dr. Wu and Joseph Tung stated that while long-term CapEx is hard to predict, current aggressive investments are justified by the AI boom and ASE's leadership, confirming LEAP services are margin and return accretive, showing ROE/ROIC improvement.