AMKR 2025Q1

Good day, ladies and gentlemen, and welcome to the Amkor Technology First Quarter 2025 Earnings Conference Call. My name is Diego, and I will be your conference facilitator today. At this time, all participants are in a listen-only mode. After the speakers' remarks, we will conduct a question-and-answer session. As a reminder, this conference is being recorded. I would now like to turn the call over to Jennifer Jue, Head of Investor Relations. Ms. Jue, please go ahead.

Thank you, operator. Good afternoon, everyone, and thank you for joining us for Amkor's first quarter 2025 earnings conference call. Joining me today are Giel Rutten, our Chief Executive Officer; and Megan Faust, our Chief Financial Officer. Our earnings press release was filed with the SEC this afternoon and is available on the Investor Relations page of our website, along with the presentation slides that accompany today's call. During this presentation, we will use non-GAAP financial measures, and you can find the reconciliation to the U.S. GAAP equivalent on our website. We will make forward-looking statements about our expectations for Amkor's future performance based on the environment as we currently see it. Of course, actual results could differ. Please refer to our press release and SEC filings for information on risk factors, uncertainties, and exceptions that could cause actual results to differ materially from these expectations. Please note that the financial results discussed today are preliminary, and final data will be included in our Form 10-Q. And now, I'll turn the call over to Giel.

Thank you, Jennifer. Good afternoon, everyone, and thank you for joining the call today. Amkor delivered revenue of $1.32 billion in the first quarter at the upper end of our guidance. Communications revenue exceeded our expectations, while other end markets performed as anticipated. EPS was $0.09, impacted by higher R&D costs, including accelerated development in RDL technology for additional programs scheduled to ramp this year. We are closely monitoring the tariffs and trade regulations. On tariffs, our global manufacturing operations are largely unaffected at this time because the majority of our facilities operate in free trade zones and we only ship a small amount of semiconductors into the U.S. The main uncertainties revolve around potential disruptions to our customers' supply chains and potential demand swings for consumer-driven end products. Our diversified global footprint and long-standing partnerships allow us to help customers work through this complexity. On trade, we continue to monitor evolving U.S. export controls, including expanding technology restrictions. As an approved OSAT by the U.S. Department of Commerce, we are an ideal partner for our customers. The Amkor team is handling these market dynamics with agility and is focused on executing our long-term strategy. Our strategic framework is based on three pillars: strengthening our technology leadership; expanding our geographic footprint; and partnering with lead customers in growth markets. This strategy helps us to leverage our competitive advantages that differentiate Amkor as a Tier 1 OSAT. As a technology leader in advanced packaging and test, we are a trusted partner for the largest semiconductor companies to enable their product roadmaps. Our leadership and engineering expertise allow us to address manufacturing complexities through co-development with customers, utilizing our broad technology portfolio. High-performance computing and AI are driving technology innovations and the need for advanced packaging. In addition to our engagements in 2.5D and RDL technology, we are collaborating with our data center and networking customers on co-packaged optics and for photonic solutions. Amkor is engaged in photonics in pluggable devices and in next-generation advanced co-packaged optics devices with heterogeneous integration of optical engine chiplet dies in a module format, improving power, bandwidth, signal and space efficiency. The growing complexity of devices requires a comprehensive testing strategy. This quarter, we confirmed plans for a turnkey test solutions expansion on our K5 campus in Incheon, Korea, where also our main R&D center is located. We expect the first phase of the expansion to be operational in the existing K5 facility by the end of 2025. The next phase, including a new building, is expected to be operational in the first half of 2027. Our second pillar aims to expand our geographic footprint to align with customer and industry supply chains. To support accelerated demand for advanced packaging services in the U.S., we are evaluating options to increase scale and expand our technology offerings. We continue to broaden our partnerships with lead customers and silicon foundries, and we are on track to begin construction of our Arizona facility in the second half of 2025. Beyond these significant projects, we continuously evaluate our footprint to ensure we are optimally scaled with the right technologies in the right locations. In our third pillar, we are strengthening collaboration with leading semiconductor companies to facilitate early engagements in product development and to co-develop innovative advanced packaging solutions to enable fast time-to-market for lead applications in the industry. In communications, we have primarily served the premium tier smartphone market for both the iOS and the Android ecosystems. With AI applications shifting to edge devices, we expect innovation within smartphones will accelerate in premium tier first, notably in apps processors and connectivity applications, both requiring advanced packaging. Within the computing end market, we support customers across the data center and PC landscape with advanced packaging and test for multiple devices in AI and high-performance computing applications. The accelerated transition to a new AI GPU product family and the expanded trade restrictions tempered our outlook for this year. Demand for prior generation devices will continue for the year, but volumes are difficult to predict due to the impact of export controls. Overall, we have a robust project pipeline in our computing end markets, including our new 2.5D switching customer that continues to ramp volume and our first AI CPU programs ramping on RDL interposing technologies, which gives us further confidence in our long-term outlook. While the automotive and industrial end markets are still recovering from weak end market demand and elevated inventory levels, the demand for advanced packaging solutions continues to be robust. The main driver is the proliferation of ADAS and infotainment functionality across the car ranges. Amkor is a leading automotive OSAT provider with a strong track record in automotive manufacturing and advanced packaging technology, where we have a solid pipeline with multiple customers for new radar and LiDAR applications, ADAS and CMOS image sensor programs. In the consumer markets, long-term drivers include the growing demand for wearables and connected devices. Our advanced SiP expertise positions us well for consumer growth. And between our established Korea facility and new Vietnam facility, we have alternative locations to offer customers this technology. In summary, we remain confident in our strategy to achieve long-term profitable growth. We are actively supporting customers to resolve supply chain challenges in the current dynamic environment. And we are focused on executing our strategy. With that, I will now turn the call over to Megan to provide more details on our first quarter performance and near-term outlook.

Thank you, Giel, and good afternoon, everyone. As Giel mentioned, we are navigating a dynamic environment. The team is focused on adapting to change and managing elements within our control, while continuing to execute on our long-term strategy. Amkor delivered first quarter revenue of $1.32 billion, reflecting a 3% year-on-year decline. Revenue in our communications end market decreased 19% year-on-year, primarily driven by lower revenue within the iOS ecosystem. A new SiP socket we are co-developing for the next generation of smartphones is on track to begin production by the end of June. For the second quarter, communications revenue is expected to increase sequentially, reflecting efforts to optimize line utilization. Revenue in our computing end market increased 21% year-on-year, driven by multiple engagements across data center, networking and PC customers, as well as accommodating dynamic build patterns for AI GPUs using 2.5D technology. Computing is expected to grow sequentially in the second quarter, driven by strong demand for new PC devices. Revenue in the automotive and industrial end market declined 6% year-on-year but remained stable sequentially across both advanced and mainstream products. Our project pipeline with our largest customers in ADAS, infotainment and other advanced applications is robust. And we have begun ramping solutions that we expect to drive growth for this end market in Q2. Revenue in our consumer end market increased 23% year-on-year, driven by a continuation of the hearable program utilizing advanced SiP technology that launched in the second half of last year. For Q2, we expect the consumer market to be relatively flat sequentially. First quarter gross profit was $158 million and gross margin was 11.9%. Gross margin was lower sequentially and year-over-year due to the impact from lower volumes, with resulting factory utilization in the low-50%s. Operating expenses came in higher-than-expected at $126 million, primarily due to the increase in R&D, which, Giel mentioned, is associated with the development of new technology, including RDL that is expected to ramp later this year. Operating income was $32 million or 2.4% of sales. Cost containment measures are in place globally, and we have continued to be profitable throughout the semiconductor cycle. Net income was $21 million, and EPS was $0.09. First quarter EBITDA was $197 million and EBITDA margin was 14.9%. Amkor has exhibited strict financial discipline and maintains a strong balance sheet. We ended the quarter with $1.56 billion of cash and short-term investments and total liquidity of $2.2 billion. Our total debt as of the end of the quarter is $1.15 billion and our debt-to-EBITDA ratio is 1.1 times. The strong and flexible balance sheet we have built enables us to enhance shareholder returns by investing in organic growth, including technology development with lead customers, exploring strategic investments to optimize our global footprint and returning cash to shareholders within our capital allocation framework. We are confident that this multifaceted and balanced approach will allow us to create long-term shareholder value. Moving on to our second quarter outlook. We expect revenue between $1.375 billion and $1.475 billion, representing growth of 8% sequentially at the midpoint. We are closely monitoring the impact of tariffs and other trade regulations, which may affect demand. Gross margin is expected to be between 11.5% and 13.5%, reflecting a modest improvement in utilization across our factories. We expect operating expenses of around $125 million for the quarter, and a full year effective tax rate of around 20%. As a result, second quarter net income is expected to be between $17 million and $57 million, resulting in EPS between $0.07 and $0.23. Our CapEx forecast for 2025 remains unchanged at $850 million, of which 5% to 10% is estimated for our new advanced packaging facility in Arizona. Our investments are focused on expanding capacity and capability for leading-edge technology, including the next-generation RDL and bridge technology, advanced SiP and test solutions. We will continue to monitor the environment and prudently evaluate our investments. Although tariffs and trade regulations are constantly evolving, Amkor's operations remain largely unaffected. Our shipments to the U.S. are immaterial and nearly all of our operations are in some form a free trade zone, which provides duty relief for the direct supply of equipment, materials and components. We believe our diversified geographic footprint remains a competitive advantage, and we will continue to closely monitor developments in this area. In this dynamic environment, we remain poised and ready to support our customers. Our team continues to execute our strategic plan. We are investing in differentiated technology to maintain our position as a leader in the OSAT space. We are optimizing and expanding our geographic footprint. And we are closely partnering with leading semiconductor companies that are addressing market megatrends. With that, we will now open the call up for your questions.

Thank you. We will now begin the Q&A session. Our first question comes from Charles Shi with Needham. Please go ahead with your question.

Hi, thank you for taking my question. I may have missed part of the prepared remarks, but could you provide some insight on why Q1 turned out better than expected? I'm particularly interested in your thoughts on Q2, as the projected sequential growth for Q2, based on the midpoint of your guidance range, suggests it's one of the stronger Q2s in your recent history. Do you anticipate any potential impact from pull-ins related to tariff concerns for either Q1 or Q2? Thank you.

Hello, Charles. This is Giel. Let me start answering your question. First of all, in Q1, we have strength in our communication business and the other businesses were performing in line with expectations. Now, for Q2, we see growth compared to Q1, again in communication. Additionally, we see strength in the computing domain, which spans applications from the data center to the PC domain, as well as in networking. So that's the strength in Q2. Do we believe that the Q2 strength is related to market pull-ins? That's not what we observe, Charles. I think we're working with customers to optimize the utilization of our lines, but that's more related to our management structure than a pull-in from our customers. Therefore, we don't see that in either of the markets that we serve.

Got it. Thanks. The second question, you guys are maintaining that $850 million CapEx. Given the recent tariff news, any thoughts on the continued expansion in Vietnam and any thoughts that you may or may not continue the current investment in that specific country that probably can be hit by the tariffs?

Let me provide some insight into our capital expenditure plans. Currently, we don't anticipate any major changes to our CapEx plan, although we are remaining flexible in case unforeseen events arise later in the year that might require us to delay certain investments. Approximately 70% of our investments focus on capacity and capabilities, while about 25% is allocated to facility and construction expansion, with 5% to 10% directed towards our Arizona and Portugal facilities. The capacity and capabilities investment mainly supports our high-performance computing market, which spans various applications, including PC and networking, as well as 2.5D and RDL technologies. We still see a strong pipeline in this area, though it may be affected by potential changes in tariff structures this year. We are closely monitoring this situation and collaborating with our customers, which may lead us to delay some equipment shipments. However, we remain confident that the long-term and mid-term outlook for this market is strong, and the majority of our investments are geared towards adaptable equipment. Additionally, we are investing in expanding our testing capabilities and capacity. Megan, do you have anything to add?

Charles, I think as we look at our current view, our first half, I would say, shaped up slightly better than what we expected, with our Q1 coming in at the high end of guide and then a strong compare to our seasonal expectations for Q2. So, as Giel mentioned, we're not seeing any significant changes from our customers' perspective. So, we are holding our CapEx expectations, although we will continue to monitor that.

Thank you. And our next question comes from Ben Reitzes with Melius Research. Please state your question.

Yeah, hi. Good afternoon. Hope you can hear me okay. I wanted to ask about the communications segment beyond the 2Q. Should this be better than seasonal for the second half, given the win of the new socket? And I was wondering what that would mean for margins? And then, also, in the answer to your question, if you thought about tariffs and how that may impact the seasonality in the second half as well in the comm sector? Thanks.

It's challenging to provide specifics about the second half, Ben, as the fundamentals remain unchanged. The critical programs in the communications segment are still in line with our prior expectations. We have visibility on the new program with our lead customer, and we anticipate starting the initial ramp toward the end of the second quarter. Our projections for the communications segment's program and project pipeline are also steady, and we believe our market position is robust on both the iOS and Android sides. However, trade restrictions and related uncertainties, such as consumer demand and tariffs, may affect overall volumes and influence customer build plans, creating significant uncertainties. We focus on the aspects we can control and are confident our position in the communications market is as we previously anticipated.

Ben, just to comment on your question with respect to gross margins. As we move into the second half, we would expect those gross margins to expand as we increase utilization. So that would be expected given our financial model. But as Giel mentioned, we'll be watching demand carefully in order to flex costs where possible to manage profitability.

Okay, great. If I could just slip in one more. I wanted to just clarify on the auto/industrial guidance. Given that the margin impact that you have in that vertical, what are you thinking there? Can you just reiterate what you said about the 2Q and into the second half? And does that have the same uncertainty with regards to tariffs as the other spaces, or is that space really picking up?

We believe the automotive market has reached its lowest point, and we are cautiously optimistic about future growth. There is noticeable strength in advanced packaging for automotive, particularly due to in-car infotainment and ADAS applications, as well as related devices like image sensors. However, in the more mainstream automotive sector, our leading customers feel confident that the lowest point has been reached, although we aren't seeing significant growth signals for the next quarter. Overall, we expect modest growth of mid-single digits quarter-on-quarter for the second quarter, but we remain cautious about predicting a robust second half for the automotive sector this year.

Thanks a lot. Appreciate the answers from both of you.

Your next question comes from Randy Abrams with UBS. Please state your question.

Yes, hi. Thank you. I wanted to ask the first question on the Arizona expansion. Two parts to it. I think first, how you’re thinking about your opportunity now with TSMC announcing their two sites in U.S.? If you could talk about where you see your opportunity versus their expansion? And the other side, it sounds like even given that you're expanding or potentially considering a faster plan. So, if you could talk about the potential to either pull-in or raise the scale of Arizona, if indeed you see a bigger opportunity there?

That's a great question. Let me explain our perspective. TSMC's announcements regarding their increased investments in the U.S. present an opportunity for Amkor. As their operations expand and next-generation technology is introduced in the U.S., we anticipate a rise in volume, which aligns with our strategy to complement TSMC and enhance our own opportunities. We are currently assessing the technology offerings for our facility in Arizona, as this shift may involve a focus on on-substrate technology, though that is still uncertain. We are exploring two main approaches: to accelerate our efforts and to scale up more quickly than we initially planned in response to rising demand. This is how we are evaluating our opportunities in the U.S., Randy.

Okay. Yeah. And a quick follow-up, and then I'll ask a second question. The faster than anticipated, if you could give a timeline, how you see the scale up like in terms of going into volume for that facility? And then, the second question on a couple of the advanced technology. Curious how you're seeing the potential come in? I think you mentioned the RDL interposer accelerating some of the R&D. So, how you see in terms of design activity or opportunities once you go into production for that? And then, the second, you mentioned a bit more on the co-packaged optics, when you see timing and how you see participating versus TSMC, which has some vertical integration there?

Let me address the first part of your question about the timeline. We are still on track to start our manufacturing facility in Arizona in the second half of this year. We are exploring ways to accelerate this process, including the possibility of a 24/7 building schedule. It’s important to note that our last packaging facility in Vietnam took 18 months to complete from groundbreaking to equipment installation. We anticipate that the Arizona project might take a bit longer, but we are actively seeking ways to speed things up with our contractors. Regarding the scale and technology portfolio, we initially evaluated opportunities related to communication technology in collaboration with TSMC and our lead customer. Given the growing compute market, we are assessing the best technology portfolio, which we believe will integrate both communication and compute technologies. This compute segment will include elements such as RDL or 2.5D technology alongside an on-substrate portfolio. We are working closely with TSMC to ensure a smooth transition for customers moving their product portfolios from Asia to the U.S. We expect that the technology portfolio we will support includes these elements. As for the timing, I am unable to provide specific details on behalf of TSMC, as there are still many aspects to finalize. We are in ongoing discussions to sort out these details. Concerning co-packaged optics, we are collaborating with a major data center company on the first products that are now in production. There are several new generations of products on the horizon that will enhance our offerings. We see co-packaged optics technology diversifying both within the data center and networking sectors, and we expect to ramp up multiple devices over the next few years.

Thank you. And your next question comes from Craig Ellis with B. Riley Securities. Please state your question.

Yeah. Thanks for taking my question. In fact, I'll start with a couple of clarifications. If you could clarify, in the communications segment, you mentioned it was stronger than you expected in the first quarter. Can you just characterize the linearity of that strength? Was it all quarter long, early quarter, late quarter? And then, Giel, on the RDL-based opportunity you just talked about, can you clarify, is that something that as you work on it this year generates revenue this year, or is that revenue generative next year? And can you comment if that would be first or second half?

Very good, Craig. Regarding the development of the communication segment and the improved revenue during the quarter, I don't have the exact data here, but I anticipate it was fairly linear. We started the quarter strongly, and it progressed in line with our normal expectations, perhaps a bit better than we initially thought. We conduct weekly reviews of our revenue projections, and from the start of the quarter, we observed a solid buildup in our communication business. Concerning the RDL technology, we currently have one device in production for a CPU data center device, along with several other devices in the qualification stage. We believe this technology is next-generation and will take off, leading to revenue generation this year. It's important to note that our investments for high-performance computing are versatile across different applications. The capacity we have established for 2.5D, RDL, large body size flip chip BGA, and even co-packaged optics can be applied across the entire spectrum, including standard bumping. This allows us to achieve high utilization. Most of these investments will start generating revenue when they come online, and while we need to qualify the equipment, we expect to begin seeing revenue towards the end of this year or early next year.

That's very helpful. Thank you. And then, the follow-up is really a higher-level question for you or Megan, and it goes back to some commentary from last quarter's conference call. I think in characterizing the year, the company was of the view that revenues could be flat to modestly up year-on-year with strong half-on-half seasonality potentially in the 40-60 range half-on-half. Is that still the right way to think about the year? Or how should we think about the year's potential and the way linearity could break down?

Hi, Craig. Yeah. So, as I just mentioned, our first half has shaped up better than we had originally expected. So that alone would moderate some of that first half/second half magnitude that we had talked about last quarter. With respect to our position on the second half, we're not providing second half or full year guide given the dynamics and the environment. That being said, the fundamentals of what's driving our second half growth are still intact. And so, those are really centered around communications with that new socket and the seasonal launch expected, a lot of the new compute programs that Giel has mentioned, strength in automotive, as well as the continuation in consumer for that wearable product. So with that, we're just going to leave it at that point given the dynamics.

Thank you. And our next question comes from Peter Peng with JPMorgan. Please state your question.

Hi, everyone. Thank you for taking my question. I wanted to focus on your computing segment, particularly the 2.5D area. It seems that due to some export controls affecting your key customers, this segment is seeing a decline. However, you're also working with a networking switch customer this quarter. Considering these factors, should we anticipate that this segment will remain stable for the year, or given the significant impact of that key customer, could we see a decline this year?

Yeah, Peter, let me start by sketching the color in the compute segment. Now, as you mentioned, we are indeed ramping up with a second customer in 2.5D, and we are continuing with 2.5D for our prime customer, although at lower volumes due to the current situation on export controls. Next to that, we're ramping up multiple other devices for both customers, both on the GPU domain as well as the CPU domain, and we expect that to be in production for the second half of this year given the uncertainties of the overall environment. Next to that, we have multiple devices in qualification that will have strength in the second half of the year, and that goes beyond the wafer-based technologies. There are certain devices in the data center that go for large body size flip chip BGA. All of that contribute to strength in the computing domain. So, we are optimistic for the second half of this year, for the full year, given the disclaimer that in the current macroenvironment, things may change rapidly.

Got it. And maybe just kind of follow-up to that question. Maybe as we kind of look into 2026, I know you guys were working on the Connect-S technology, which is the CoWoS-L. Any updates on there and whether you're able to support that marquee customer for next year? And then, maybe more broadly, if you can talk about your design win pipeline for your 2.5D segment?

So, let's first try to look at the first part of the question on the bridge technologies. Now, currently, we have two customers in qualification to be ramping by 2026. So, in the course of next year, the volumes are hard to predict, but we expect that to complement our 2.5D and RDL-based portfolio. So, we still expect growth, and that's also how we invest. We also see diversification in the compute segment, where multiple devices as well as in the data center moving from GPU, and on top of that, we see CPUs programs in data centers. We also see networking devices being refreshed and renewed in data centers. So, the portfolio is broadening beyond, I would say, the single device, GPU device that you're referring to, Peter.

Thank you. And your next question comes from Steve Barger with KeyBanc Capital Markets. Please state your question.

Thanks. As you move into the socket recovery ramp, does the content and pricing there mean you'll outgrow the prior program? And do you have visibility into share gains or content gains beyond the socket issue that we should be thinking about? Or is whatever happens in the back half just more about unit volume?

Let's start from the latter part of your question. Our overall business in communication is very dependent on unit volume. Unit volume depends on build plans for individual customers, both in iOS as well as in the Android ecosystem. And these build plans may be impacted by current trade restrictions, export controls, et cetera. So, that as a disclaimer. Now, to go back to your earlier part of your question, how is the socket that we're currently ramping in the latter part in the next-generation iOS devices, how does that compare to previous devices when it comes to technology, complexity and pricing? If we compare it on revenue potential for the second half of the year and we compare it with previous devices and it's in the same order of magnitude. So, the devices are different. But the total revenue potential is in the same order of magnitude if the volumes are the same. And that's the uncertainty here that we have. Then, in the middle part of your question is, what is our view, what is our visibility of our, let's say, position in the individual phones? Do we have a clear visibility of our socket position beyond the sockets that we regain? And there, we have a very open communication with our lead customer and customers, both in iOS as well as in the Android ecosystem and we know pretty exactly which positions that we're in. Slightly uncertainty is that in some of the positions and slots, there are multiple suppliers. So then, it's a bit on market share division. But overall, we know exactly what our footprint is. And we do a very detailed planning on volume expectation for the ramp of a new phone generation.

Understood. That's good detail. Thank you. And I know you can't make firm statements about trade issues at this point, but if you do have customers asking to move a program to mitigate tariffs and it goes into an area with higher labor cost, or if you incur costs because you have to move things around, is that all complete pass-through or how will that customer conversation go?

This situation is handled individually; we don't employ a universal strategy. We are experiencing something unique, which for many is a first-time event. Typically, we maintain long-term relationships with our customers, most of whom we've worked with for over a decade. We engage in discussions when extra costs arise, considering the reasons behind them, and we reach an agreement. Currently, Amkor operates with a high level of agility, and we observe our customers doing the same as they seek practical solutions when supply chain disruptions occur.

Understood. Thank you.

Thanks. And our next question comes from Tom Diffely with D.A. Davidson. Please state your question.

Yes, good afternoon. Thank you for taking my questions. Giel, curious maybe to follow-up on the communications side. Do you expect the AI going to the edge to drive unit growth this year in the handsets? And perhaps if not, is there enough technology changes to allow you to grow in a further depressed market?

That's not an easy question to answer, Tom. We believe AI will enter the smartphone segment through the premium tier of the market, which is beneficial for Amkor as that aligns with our market focus. It’s hard for me to predict if this will lead to growth this year. However, I believe AI will eventually expand to edge devices like smartphones and PCs. There are already some initial applications emerging, which will推动 innovation in smartphones, including advancements in connectivity, processing, and modems. Many devices will likely undergo an innovation cycle. It's challenging to pinpoint when this will begin to positively impact the market, especially this year, which is difficult for predicting volumes.

So, Tom, I just want to clarify, you're looking at Q1 '25 compared to Q1 '24?

Correct, yes.

So, really the main difference between those two periods is moving our Vietnam factory to production. And so, those costs are having an impact on the margin in '25 that was not there in '24. For Q1, that was around 100 basis points.

Okay. Got it. That's perfect. All right. Well, thank you.

Thank you. At this time, I'm showing no further questions. I would like to turn the call back over to Giel for closing remarks.

Thank you. Now, let me recap the key messages. First quarter results met our expectations with revenue of $1.32 billion and EPS of $0.09. Second quarter revenue is expected to grow 8% at the midpoint of guidance of $1.425 billion. We stay agile to support our customers in this dynamic environment and we stay focused on executing our long-term strategy by strengthening our technology leadership, expanding our geographic footprint and partnering with lead customers in growth markets. Thank you for joining the call today.

Ladies and gentlemen, this concludes today's conference call. You may disconnect.