Steve Barger: Hey, thanks. I’m not as familiar with Amkor, so I appreciate you letting me ask a question. And I’m not looking for near-term guidance, like meaning, this quarter of 2024, but can you talk about how you see longer-term growth rates for advanced packaging, individually across your smartphone exposure, your automotive business and then maybe AI?
Giel Rutten: Yeah, let me try to give you a bit of color there, Steve. I mean, we believe that the markets that we’re serving and catering for, specifically for advanced packaging, will grow at an above average rate if we compare that to regular semiconductor growth rates expected. A couple of key drivers there. For Amkor specifically, I think if we take our core strategic pillars, it is diversification of our supply chain where we support customers with semiconductor supply chains in jurisdictions where they like to be, like for example in Europe supporting the European automotive industry or in Japan or now for example in Vietnam where we offer customers an alternative supply chain vis-a-vis their China manufacturing. That will continue.
We believe that Amkor is better positioned than the industry there and that will drive incremental growth. There’s also growth in advanced packaging because the growth drivers in the industry be it 5G or 6G, automotive, IoT or high performance computing, all that growth will be supported by advanced packaging. And there we are positioned as a leader. We’re engaged with the leaders in that industry, and we believe that will drive growth growing forward. And an additional element there is that, the relative outsource potential of the industry volumes is increasing. So where companies in the past, for example, in automotive to a large extent were vertically integrated, we see that for advanced packaging, more and more outsourcing takes place, both on the silicon side, as well as on the packaging side.
So increased outsourcing, solid geopolitical footprints, and that combined with engaged in the lead segments of the market will drive growth for Amkor.
Steve Barger: I appreciate that detail. And just to follow up, I think people expect very high growth rates for advanced packaging around AI for obvious reasons. But will packaging content gains in smartphone and auto result in growth rates that can match that, or how would you rank those kind of relative to each other?
Giel Rutten: Well, specifically in the — Steve, in the high-end part of smartphone, in the premium tier smartphone, we still continue to see significant innovation. I mean, you referred to AI adoption specifically in the data centers, but on the edge and then referring to smartphones, we also expect that in edge devices like smartphones, there is incremental innovation to adopt AI functionality. That will drive a new generation and a next generation of, for example, application processors and that then again will drive advanced packaging. So there is a kick on effect also to edge devices like smartphones.
Steve Barger: And same question for auto, do you expect that the content gains there will drive significantly above average growth relative to the semi cycle itself?
Giel Rutten: Yes, I mean we believe that automotive actually from our analysis and that’s also referring to industry data is that, the automotive semiconductor market is the fastest growing market going forward in the next couple of years. We’re well positioned there and if you take applications like ADAS, in-car networking, connectivity that drives crowds and not only on the processing side but also on the sensor side for example. And that helps the automotive market moving forward. And on top of that, we see a proliferation of these features from, let’s say, high-end part of the automotive market into the more mainstream mid-segment and low segment of the market, because multiple of these features are becoming mandatory to be deployed in the car industry.
Steve Barger: That’s great and just one last one for me. When you talk about an AI-enabled smartphone or an edge smartphone, what’s the timing of something like that? Is that 2024, 2025, 2026?
