In This Article:
Release Date: February 24, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Chroma Ate Inc (TPE:2360) reported a 16% growth in consolidated sales for 2024, reaching $21.6 billion.
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The company's net income grew by 32% year-on-year, reaching $5.4 billion.
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The semiconductor and photonics sectors showed significant growth, with a 135% increase in sales revenue year-on-year.
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Chroma Ate Inc (TPE:2360) expects the semiconductor sector to contribute more than 50% of the company's sales revenue in 2025.
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The company plans to generate approximately $3 billion in capital gains from a residential project for employees, enhancing employee morale and retention.
Negative Points
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The ATS segment experienced a 16% decline in sales year-on-year, primarily due to low sentiment in the EV and ESS markets.
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The 4th quarter saw a 15% decline in the turnkey solution segment quarter-over-quarter.
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There is uncertainty regarding the timeline for the ramp-up of CPO products, with mass production expected only in the following year.
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The company faces competitive pressure in the high-end metrology and SLT sectors as more competitors seek to enter the market.
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The power tester business recovery is uncertain, with only signs of recovery rather than a strong rebound.
Q & A Highlights
Q: Can you provide an update on your metrology segment, specifically regarding your penetration into overlay in advanced packaging and front-end processes? A: Our metrology equipment, including models 7980 and 7981, is primarily focused on advanced packaging. We are not limited to foundry sales and also cover some offsets. Our equipment is designed for advanced package testing, and we have already qualified it, so no further qualification is needed. (Respondent: Jennifer Jan, Operational Highlights Presenter)
Q: Could you elaborate on the $3 billion capital gain from the residential project for employees? A: We developed a residential area as part of an incentive scheme for our employees. The project was co-developed with constructors, and we are transferring the finished houses to our employees this year. This will result in an estimated capital gain of approximately $3 billion, which will be reflected in this year's financial report. (Respondent: Jennifer Jan, Operational Highlights Presenter)
Q: How do you plan to allocate R&D spending, and what is the target for R&D expenses? A: We do not break down R&D spending by product mix but rather by talent and special technologies. Our goal is to maintain R&D expenses around 11%, with the current level at about 12%. (Respondent: Jennifer Jan, Operational Highlights Presenter)