Jason Tsang

Jason Tsang requested a more detailed Q2 revenue outlook for the EMS business by sector. He also asked about the company's mass production timeline for panel-level packaging and silicon photonics, referencing a competitor's recent comments on the topic.

Answer

Joseph Tung, CFO, declined to provide a sector-by-sector EMS outlook for Q2, as it would be tied to specific customers. Regarding new technologies, Mr. Tung stated that the company's panel-level packaging pilot line is being established for customer qualification in late 2025 and 2026. He emphasized that they are on schedule and taking a measured approach to ensure the solution meets market needs.

Jason Tsang requested a Q2 revenue outlook breakdown by sector for the EMS business. He also asked about the company's timeline for mass production of panel-level packaging and silicon photonics, particularly for high-end applications, referencing a competitor's recent announcements.

Answer

Joseph Tung, CFO, declined to provide a sector-by-sector breakdown for the Q2 EMS outlook, as it would be too closely tied to specific customers. Regarding new technologies, he confirmed that the company is establishing a pilot line for panel-level packaging, with customer qualification scheduled for late 2025 and 2026. He emphasized that they are on schedule and taking a measured, step-by-step approach to ensure their solution meets market needs.

Jason Tsang followed up on the U.S. BIS 'white list' topic, asking specifically if ASE's production lines in China could support clients not on the list. He also requested an outlook on growth momentum across different end-market applications like communications, computing, and consumer for the upcoming year.

Answer

COO Tien Wu stated that ASE is still clarifying the precise BIS rules and cannot give a definitive answer, but affirmed they could support customers from Taiwan if China facilities are restricted. CFO Joseph Tung projected that HPC/computing would show the strongest momentum, with communications recovering well and automotive potentially improving in the third quarter.

Jason Tsang of CLSA sought clarification on the U.S. BIS 'white list' regulations, specifically asking if ASE's production lines in China can support clients who are not on the list. He also requested an outlook on growth momentum across different application segments like communications, computing, and consumer for the year.

Answer

COO Dr. Tien Wu explained that ASE is still clarifying the precise BIS rules for its China facilities and cannot provide a definitive answer yet. However, he assured that ASE has the capability to ramp up capacity in Taiwan to support any affected customers. CFO Joseph Tung provided an outlook, expecting computing to show the strongest momentum, followed by a recovery in communications, with automotive potentially stabilizing in the third quarter of 2025.

Jason Tsang from CLSA requested more detail on second-half demand for 28nm, mature nodes, and 8-inch wafers. He asked about the likelihood of a normal Q3 seasonality and if utilization could reach 70%, and questioned how UMC plans to defend its 28nm market share against new competition and technology migration.

Answer

President Jason Wang projected that for Q2, 28/22nm demand will improve while mature 12-inch and 8-inch nodes will remain flattish. He stated it was difficult to forecast a return to 70% utilization in Q3 due to limited visibility and prudent customer behavior. To address competition, Mr. Wang emphasized that UMC's strategy is to remain competitive by building differentiated specialty technologies with strategic customers and minimizing exposure to commoditized market segments.