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    Tetsuya Wadaki • Morgan Stanley

    Tetsuya Wadaki's questions to Advantest Corp (ATEYY) leadership

    Tetsuya Wadaki's questions to Advantest Corp (ATEYY) leadership • Q3 2024

    Question

    Tetsuya Wadaki from Morgan Stanley expressed concern that strong 2024 performance, driven by low yields in advanced packaging, could create a high hurdle for the following year. He questioned the sustainability of this demand surge and the potential for a future drop.

    Answer

    Executive Makoto Nakahara and Executive Douglas Lefever responded. Mr. Nakahara noted that while current-gen yields are improving, the 2025 ramp-up of next-gen devices will create new challenges, sustaining tester demand. Mr. Lefever added that complexity is not slowing due to Moore's Law, chiplets, and silicon photonics, and even small test content increases on a larger installed base drive significant capacity needs.

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    Tetsuya Wadaki's questions to Advantest Corp (ATEYY) leadership • Q3 2024

    Question

    Tetsuya Wadaki expressed concern that the current year's strong performance, driven by low yields in advanced packaging, creates a high hurdle for next year and questioned if this demand momentum is sustainable.

    Answer

    Makoto Nakahara, an executive, acknowledged that while existing devices see yield improvements, the ramp-up of next-generation devices in 2025 will introduce new quality challenges, sustaining tester demand. Executive Douglas Lefever added that test complexity is not slowing due to Moore's Law, chiplet adoption, and new technologies like silicon photonics, which will continue to drive demand for testing on a larger installed base.

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    Tetsuya Wadaki's questions to Advantest Corp (ATEYY) leadership • Q1 2024

    Question

    Tetsuya Wadaki of Morgan Stanley commented on the significant upward guidance revision and asked about the company's capacity to handle the increased sales and delivery forecast for the second half of the year, especially given potential capacity constraints.

    Answer

    An unnamed executive responded that the company has been preparing for strong HBM demand for some time by working with suppliers. To meet the urgent demand for HPC SoC testers, they have been strategically increasing inventory, as reflected on the balance sheet. The executive expressed confidence in their ability to manage capacity, provided customers give advance notice.

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    Tetsuya Wadaki's questions to Advantest Corp (ATEYY) leadership • Q3 2024

    Question

    Tetsuya Wadaki of Morgan Stanley expressed concern that strong FY24 results, driven by low yields in advanced packaging, could create a high hurdle for the next fiscal year, questioning if demand will drop as yields improve.

    Answer

    Executive Makoto Nakahara acknowledged that while yields on current-generation devices may improve, the 2025 ramp-up of next-generation devices will introduce new quality challenges, sustaining tester demand. Executive Douglas Lefever added that test complexity is not slowing due to Moore's Law, the adoption of chiplets, and future technologies like silicon photonics. The high cost of advanced packages continues to justify significant investment in testing.

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