Peter Pang

Peter Tang sought clarification on the mix driving better-than-expected content at Skyworks' largest customer, asking if it was primarily due to the mix within the current generation or a better mix of prior generation models. He also asked for a characterization of the broad markets business.

Answer

Phil Brace, CEO and President of Skyworks, stated that the improved results were 'all of the above,' encompassing better units, better mix, and better content, all factored into the guidance. Regarding broad markets, Rajvindra Gill, VP of Investor Relations, explained that broad markets are guided up slightly sequentially and mid-to-high single digits year-over-year, with growth led by strong Wi-Fi 7 adoption, a record automotive business ($65 million/quarter run rate), and recovery in data center/infrastructure due to inventory rebuilds and 800G timing design wins. All three segments are growing, with some expected seasonality.

Peter Tang asked for clarification on the mix at Skyworks' largest customer, specifically whether the better-than-expected content was driven by the mix within the current generation or a better mix of prior generation models. He also inquired about the growth drivers within the broad markets business, which has seen seven consecutive quarters of growth, asking which of the three main buckets (auto, infrastructure, consumer IoT) are back to normal growth and which are still below trendline.

Answer

Phil Brace, CEO and President, stated that the improved results at the largest customer were due to 'all of the above' – better units, better mix, and better content. Rajvindra Gill, Vice President of Investor Relations, explained that broad markets growth is led by strong Wi-Fi 7 adoption, a record automotive business run rate ($65 million per quarter), and a recovery in data center and infrastructure with new 800G design wins. All three segments are growing, with some expected seasonality.

Peter Pang of JPMorgan asked how MKS Instruments views its potential performance relative to the mid-single-digit WFE growth forecast for the year and when the Specialty Industrial business might bottom out.

Answer

CEO John Lee stated that MKS has historically outperformed WFE by 200 basis points through cycles and is well-positioned to continue this trend due to key design wins and its strength in world-class optics. Regarding the Specialty Industrial segment, Lee described it as 'bouncing along the bottom,' with noted weakness in the broader industrial market. He indicated the current guidance reflects their best visibility for this lumpy segment.

Peter Pang inquired about how Amkor's business might perform against seasonal trends in the first half of 2025 and asked for details on the company's engagement with hyperscalers and customer diversification efforts in the AI market.

Answer

CEO Giel Rutten outlined a promising outlook for the first half of 2025, expecting gradual recovery in Auto & Industrial, continued growth in Computing (2.5D AI, ARM-based PCs), and a progressing build in Consumer. He acknowledged potential headwinds in the iOS ecosystem but expects the Android market to continue its recovery. Regarding AI, Rutten confirmed Amkor is onboarding a new 2.5D customer and qualifying several others on next-generation technologies, diversifying both its customer base and technology portfolio for the growing market.