ASE Technology Holding Co., Ltd. (NYSE:ASX) Q2 2023 Earnings Call Transcript July 27, 2023 3:00 AM ET

Company Participants

Ken Hsiang - Head of IR

Joseph Tung - CFO

Conference Call Participants

Randy Abrams - Credit Suisse

Gokul Hariharan - J.P. Morgan

Brad Lin - BofA

Rick Hsu - Daiwa

Sunny Lin - UBS

Laura Chen - Citigroup

Bruce Lu - Goldman Sachs

Szeho Ng - China Renaissance

Ken Hsiang

Hello, I am Ken Hsiang, the Head of Investor Relations for ASE Technology Holdings. Welcome to our Second Quarter 2023 Earnings Release. Thank you for attending our conference call 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, our dollar figures are generally stated in new Taiwan dollars, unless otherwise indicated. As a Taiwan-based company, our financials are 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 Joseph Tung, our CFO. For today's session, I will be giving the prepared remarks. Joseph will then be available to take your questions during the Q&A session that follows. The following financial references will be referring to the first half of 2023 as compared to first half 2022.

The first half of the year has been characterized not just by an unprecedented inventory correction but also broad ranging declines in electronics demand as consumers catch up on travel and socialization. Issues relating to a slower-than-expected economy in China exacerbated our already lackluster electronics spending. The excess inventory environment appears to be stretching out well into the back half of 2023. In this climate, the holding company first half revenues declined 12% year-over-year while our ATM and EMS first half revenues declined by 17% and 7% respectively.

For our ATM business, our automotive related application bucked the trend and grew by 15%. Advanced packaging revenues declined slightly more than wire bond packaging revenues during the first half of the year, 20% and 17% respectively. Our advanced packaging products have more exposure to the more heavily impacted communications segment.