2024-07-26 15:29:09 ET
ASE Technology Holding Co., Ltd. (ASX)
Q2 2024 Results Conference Call
July 25, 2024 03:00 AM ET
Company Participants
Ken Hsiang - Head of Investor Relations
Tien Wu - Chief Operating Officer
Joseph Tung - Chief Financial Officer
Conference Call Participants
Gokul Hariharan - JPMorgan
Sunny Lin - UBS
Charlie Chan - Morgan Stanley
Rick Hsu - Daiwa Securities
Brad Lin - BOA
Laura Chen - Citigroup
Bruce Lu - Goldman Sachs
Jason Tsang - CLSA
Presentation
Ken Hsiang
Hello. I am Ken Hsiang, the Head of Investor Relations of ASE Technology Holdings. Welcome to our Second Quarter 2024 Earnings Release. Thank you for attending today. Please refer to our safe harbor notice on Page 2.
All participants consent to having their voices and questions broadcast via participation in this event. If participants do not consent, please disconnect at this time.
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. 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 presented by our subsidiary using Chinese GAAP.
I am joined today by Dr. Tien Wu, our COO; and Joseph Tung, our CFO. For today's presentation, I will be going over the financial results, and Joseph will give the company's outlook. Dr. Wu and Joseph will then be available to take your questions during the Q&A session that follows. During the Q&A session, each caller will be limited to two questions at a time, but may return to the queue for further questions.
With that, let's get started. The second quarter can be summed up as the tale of two businesses, one business representing the leading-edge products and the other the more traditional products. For the traditional business, the second quarter had selective products with signs of reemergence. But by and large, general product demand lacked the strength and durability necessary to be considered a sustained healthy pickup in the immediate term. While the leading-edge business saw increasing demand with the development of increasing product pipelines.
Equipment utilization for traditional products look to be near 60%, while utilization for the leading-edge products are effectively full. To support the bifurcated market, we will need to continue to increase our investment in the leading edge space, in particular, labor and equipment. From the labor perspective, we will need to hire more engineers as the level of product complexities are increasing with the leading edge. We will also need to invest in incremental capital equipment to provide for incremental demand....
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ASE Technology Holding Co., Ltd. (ASX) Q2 2024 Earnings Call Transcript