Good day, ladies and gentlemen, and welcome to the Amkor Technology Q2 2021 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 speaker's 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. Thank you, Ms. Jue. Please go ahead. Thank you, operator. Good afternoon, everyone, and thank you for joining us for Amkor's Q2 2021 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 US 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 other 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. Now, I would like to turn the call over to Giel. Thanks, Jennifer. Good afternoon, everyone, and thank you for joining the call today. Today, I will review our Q2 performance and will provide the outlook for the Q3. I will also make a few comments on dynamics in the markets and technologies where Amkor is well-positioned for future growth. We delivered solid financial results in the Q2 with an all-time quarterly revenue record of $1.41 billion, above the high end of guidance and an increase of 20% year-on-year and 6% sequentially. Following a strong Q1, continued momentum resulted in better-than-expected performance in all end markets, most notably communications and consumer, where we saw a sequential increase of 6% and 9% respectively. High factory utilization for our advanced technology portfolio and continued improvement in our mainstream business resulted in a record Q2 EPS of $0.51. The 6% sequential growth in communications exceeded our expectations after a strong Q1 in this segment. Year-on-year, our communications business grew 28%, representing 40% of total quarterly revenue. For the full- year of 2021, we expect continued growth in this business, driven by the strength in the smartphone market, particularly in 5G, with current industry forecast of over 500 million 5G-enabled smartphones to be built this year. Amkor has a leading position in the 5G RF domain, and over recent years, we have established a proven technology portfolio to address the advanced requirements needed to enable 5G. With our DSMBGA Advanced SiP platform, we have established a preferred advanced packaging solution for this demanding application. Amkor's industry-leading design rules, dual-sided molding technology, conformal shielding, together with in-line RF testing, deliver best-in-class integration levels in a high-volume, high-yield manufacturing process. We continue to develop technology and manufacturing scale to support our customers in this growing market segment. In the automotive and industrial markets, we achieved another quarterly revenue record. Year-on-year growth of 33% underlines the recovery in these end markets. Some supply chain constraints, especially in the wafer and substrate supply, dampened even further growth. We continue to see strength in the mainstream part of our automotive portfolio and have received several customer endorsements, especially for the quality and delivery performance in our Philippines factories. In the advanced product part of our portfolio, we ramped several new products in the automotive sensor domain. For radar sensors, we utilize wafer-level fan-out technology in our Portugal factory. Customers are rapidly adopting this technology due to the strict requirements of radar sensors. In addition to the growing sensor market, we also ramped several new products targeting the automotive high-power domain, accelerated by the growth of the EV markets. For the H2 of the year, we anticipate the automotive supply chain will gradually improve, resulting in further growth. Beyond the H2, we believe the growth drivers in this market remain in place. We expect that semiconductor content per car will further increase due to accelerated proliferation of driver assistance electronics and the electrification of more car models. Strength in the consumer market resulted in a better-than-expected sequential increase of 9%. We continue to diversify our product and customer portfolio in IoT wearables and ramped several new products in the quarter. We expect this market will be an important driver of growth, and our overall product and customer pipeline for Advanced SiP solutions in this domain remains strong. In addition to the wearable market, we also experienced strength in traditional consumer products like gaming, display, and video devices, and we expect continued growth going forward. Revenue in the computing market set another quarterly record, with sequential growth of 6% and a year-on-year growth of 21%. We experienced solid performance in all computing applications and a further strengthening of our project pipeline. We are investing in technology and manufacturing scale to capitalize on opportunities across the computing domain, from personal computing to infrastructure and data centers. We see more opportunities in this market in emerging segments like AI and high-performance computing, and in the changes brought by the ongoing deverticalization in this market. Our test business grew 12% year-on-year in the Q2 as we broaden the scope of our test services for 5G communications and the system-level testing and expand our test attach rates. To prepare for the volume ramp in the H2 of 2021, our manufacturing organization has expanded clean room space and capacity, most notably for Advanced Packaging in our factories in Korea. We are encouraged by progress in the U.S. on investment policies to incentivize domestic semiconductor manufacturing. The Amkor team is exploring a possible factory location to align with the investments in the U.S. supply chain of other major semiconductor companies. During the quarter, we increased our CapEx target for the year to around $775 million, partially in anticipation of some initial investments in a new factory location. Other major investments in 2021 are planned for wafer-level and flip chip technology, SiP and test capacity, as well as facility expansions and specific investments to support our Industry 4.0 program. Now let me turn to our Q3 outlook. We expect significant growth with revenue of $1.7 billion at the midpoint of guidance. This would represent a sequential increase of 21% and a year-on-year increase of 26%. The ongoing short-term constraints in the supply chain of materials and equipment are expected to continue into the H2 of 2021. We are working closely with our suppliers and customers to help mitigate these risks. For full- year 2021, we expect growth in all end markets, particularly communications. We are well-positioned to support the continued recovery in automotive. We remain confident in our strong market position and the overall demand environment and expect to outgrow the semiconductor market in 2021. Megan will now provide more detailed financial information. Thank you, Giel, and good afternoon, everyone. Today, I will review our Q2 results and then provide some comments about our Q3 outlook. Q2 sales were better than expected, up 6% from the Q1 to an all-time quarterly record of $1.41 billion. All of our end markets experienced growth this quarter, and as Giel noted, revenue in both automotive and industrial, as well as computing, were new quarterly records. Advanced products revenue grew 17% in the H1 of 2021 over the same period last year and represent approximately 70% of our business. Our mainstream products revenue also improved, driven by the recovery in automotive, and increased 20% in the H1 of 2021 over the same period last year. Advanced SiP products grew double digits sequentially in Q2, primarily in support of the communications and consumer end markets. With strong growth in both advanced and mainstream products, gross margin grew 300 basis points over prior year Q2 to 19.4%, and gross profit dollars of $273 million is a Q2 record. Material content increased 150 basis points sequentially, and costs in support of H2 growth moderately constrained gross margin. Operating expenses for the quarter came in slightly lower than expected at $118 million, and operating income margin growth outpaced gross margin expansion, increasing 365 basis points year-on-year to 11%. Net income for the quarter was $126 million, resulting in record Q2 EPS of $0.51. Q2 EBITDA increased over 40% year-on-year to $295 million, and EBITDA margin was 21%. We ended the quarter with $885 million of cash and short-term investments and total liquidity of $1.3 billion. Our solid financial position provides flexibility to continue to invest in growth opportunities. Moving on to our Q3 outlook. We expect revenue to be between $1.65 billion and $1.75 billion. Gross margin is expected to be between 18.5% and 20.5%. Consistent with historical seasonality, Q3 expectations include a significant increase in communications, driven by Advanced SiP products. We expect Q3 operating expenses of around $115 million. Our plans for controlling OpEx in a significant growth environment are expected to contribute to operating income margin expansion of around 150 basis points. We expect full- year effective tax rate to be reduced to around 15% due to discrete tax benefits recognized in the H1 of 2021 and favorable foreign currency movements. Q3 net income is expected to be between $150 million and $200 million, resulting in EPS of $0.60-$0.80. This would represent over 80% growth in EPS at the midpoint compared to the prior year quarter. We are increasing our planned capital expenditures to $775 million for the year to meet strong H2 demand and for initial investments in a new factory location. Our target capital intensity remains in the low teens, and we expect free cash flow for 2021 to exceed prior year free cash flow. With that, we will now open the call up for your questions. Operator? Thank you. Ladies and gentlemen, at this time we will be conducting our question- and- answer session. If you would like to ask a question, please press star one on your telephone keypad. A confirmation tone will indicate that your line is in the question queue. You may press the star key followed by the number two if you would like to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys. Once again, to ask a question, press star one. We'll pause for a moment to poll for questions. Thank you. Our first question comes from [inaudible] with Credit Suisse. Please state your question. Hi. This is Angela on behalf of Randy, congratulations on a great quarter. If you give a little more color on what will be driving the strength of your Q3 sales, and about relative strength and weakness by application and your initial view for Q4. Hi, Angela. Let's just clarify the question. There was a little bit of audio on our side. I think your question is to add some color with respect to any supply constraints that we might be experiencing heading into the Q3, to perhaps expand by application on those supply constraints, and then whether or not we have any comments as it relates to impact in the Q4. Did I capture your question appropriately? Actually, my question is more so around those larger drivers of your performance. Okay. End market drivers. Okay, Angela. Giel, would you like to address the end market drivers? Yes, Angela. Let's try to summarize that. The main catalyst for growth, certainly in the Q3, is 5G communication, then IoT, specifically IoT wearables, generally automotive, and in automotive, we see strength in the driver assistance features, and also in the automotive power domain. Of course, high-performance computing in general. If you look specifically into Q3, we see that the communication market is strong. We expect growth both in the volume of smartphones to be sold in the Q3, as well as an increase in the number of 5G handsets to be sold. Comparing to last year, it is expected that this year, 500 million smartphone 5G-enabled handsets will be deployed into the market, which is a doubling compared to last year, and that drives a significant semiconductor end content, where Amkor has a good position in the RF domain, but also in multiple other components in the 5G smartphones. Angela, just to add to Giel's comments, to give you some color, our 21% increase for Q3 at the midpoint. The last five years, we've had about 15% increase. That significant increase in Q3 we're expecting, as Giel mentioned, is led by communications. Typically, if you look back at our Q3 performance, you'd see around a 30% increase for communications, and we're expecting something around 40% for the communications market. Any follow-up questions, Angela? Yeah, sure. About your Q3 gross margin guidance. You briefly mentioned about some cost factoring in. Can you elaborate upon that? The mid 20% margin. Yeah, Angela, are you speaking specifically to the Q3 guide for gross margin or specific to the Q2 actuals? I just wanted to make sure I addressed the right question. Yeah, the Q3 guide. Okay. Yeah. Our midpoint for the gross margin guide is flat sequentially, acknowledging revenue is expected to increase 21%. As you know, gross margin can fluctuate based on utilization or product mix. Advanced SiP revenue is increasing significantly in Q3, as I mentioned, that is supporting the communications market, and Advanced SiP does have a higher material content, and so that's what impacts product mix. However, our gross profit dollars are projected to be up over $50 million, or 20%, and operating income margin is expected to expand around 150 basis points sequentially. EPS is also expected to be up around $0.20 or 40% to a record $0.70. Overall, while the product mix can have an impact on gross margin percentage, Advanced SiP is profitable, generating good results and cash flow. And- Any- To follow up, around your SiP pipeline, can you give an update of your SiP pipeline, the revenue expectation for the full- year, and do you see it growing factoring multi-sourcing on some of the consumer audio products? Thanks, Angela. Let me try to answer that question. I think, with respect to our SiP pipeline, as we already mentioned earlier, we have a strong pipeline, both in the communication segment as well as in the consumer segment. For communication, we see healthy growth in the Q3. Of course, we don't guide for the full- year, but we expect that to extend in the Q4, also. For the consumer markets, we are ramping up several new products, in the Q2 as well as in the Q3. We see continued strength there, proliferating in multiple products as well as in multiple customers there. Going forward, we expect SiP to be an important part of our product portfolio in Amkor, where it goes from starting with communication, it extends into the consumer market as well as in the automotive and to computing markets. Any further questions there? Yeah. Thank you. Yeah. On lead times, are your lead times running normal for assembly and test, and, how are your lead times now? Are you getting additional equipment? Okay. Angela, in the supply chain, we are experiencing several challenges. One is in the lead time of equipment. New equipment, we saw over the last six to eight months, lead times actually doubling. Overall, we were able to install the capacity that we required for our ramp in the Q3. Although the lead times are extending, we don't see that as a bottleneck for the H2 of this year. We, already in anticipation of these lead times, we, in selective areas, are ordering equipment for the following year. If we look to the lead time for our manufacturing process, these lead times are not changed. We don't see an extension there. We start our manufacturing process when we have all the materials available, and then our manufacturing lead time is unchanged, and that holds both for assembly as well as test. Of course, besides equipment, we see more challenges in the supply chain for materials, specifically, where we see significant challenges for substrates and lead frames in different parts of the market. For the second and Q3, we're able to work with our suppliers and customers to deliver on our forecast. However, we see a challenge to support further upsides. Oh, that's great. Next, regarding the industry full billing data. The billings are at a record high and do worry some investors. How do you see the industry respond, and, do you have any concern on the reversal to oversupply? Do you negotiate with your customers on any agreements to guarantee volume and mitigate risk capacity? Okay. Thanks, Angela. Let me start with the second part of your question is, the agreements that we have with our customers. In the current market conditions, we see several agreements with our customers that go beyond our regular agreements that we have. They range from prepayments to minimum loading agreements in critical areas where we see significant increases. Customers are willing to support these changing commercial terms, and work with us. Go back to your first part of the question, that was very much related to billings in the equipment industry. This is indeed a very strong year for the equipment industry. We see significant installation of new capacity in the course of this year. The way that we look at this is very much that, in 2020, we saw a significant moderation in the installed capacity due to the COVID situation. I see 2021 a bit of a catch-up year where there is higher investments. That will continue. Of course, the industry is expected to grow, but I see this year very much as a catch-up year versus a moderate 2020 investment year. When it comes to the lead times for critical equipment, we're working with our suppliers there to ensure that we have a forecast for 2022 in such a way that our suppliers can preempt the volumes that they need to build for us next year. We are confident that we are able to also support our customers in the coming year. Does that answer your question there, Angela? Yeah. Thank you so much. Thank you. Our next question comes from Art Winston with Pilot Advisors. Please state your question. Thank you. Congratulations on such a great quarter for shareholders. My first question, Giel, would you anticipate, if you forget seasonality, that the 5G business will continue to grow from this level, or would you anticipate it should flatten out going forward? Yeah, that's a good question. We see the transition from 4G to 5G continue for the next 2-3 years. This year, it's expected 500 million handsets being built with 5G capability, which is about 40% of the total handset market. We expect that to grow in 2022 to something like 65%-70%, and then the years after, it will gradually move to a higher percentage. The overall smartphone market, if you take the overall volume, it grows mid-single digits percentages this year, and we expect, let's say, a moderate growth going forward. We saw some of the critical markets, like, for example, the India market, holding back a bit in the Q2, but we expect that to recover going forward. That's what we see, over the next two years, continued growth in 5G. We have a strong footprint there, and that is a strong growth driver for Amkor going forward. Good. In terms of capacity utilization, are we bumping up against full utilization any place like Korea or someplace where we're at fully utilized? Well, we installed significant incremental capacity, actually, in the Q2 to prepare for the Q3 ramp. Currently, our lines are highly utilized. We see still some utilization improvement possibilities in our Japan factory, for example. Generally, in the third and Q4, we are close to fully utilized, and we also expect this year to be close to fully utilized in the third and Q4s. Wow, okay. Have you picked out a location in the United States? If so, what do you think the whole project will cost when you're finished up with it? Well, we're watching closely the activities in the U.S. with establishing a semiconductor manufacturing supply chain. Of course, we are encouraged to see the passage of the CHIPS for America Act. Amkor is uniquely positioned to be an OSAT in the U.S. We're a U.S.-based company. We're headquartered in Tempe, Arizona. Of course, with respect to the U.S. cost structure as compared to the Asian cost structure, we are really currently working with federal, state, and local jurisdictions to really understand the incentives that could become available to build a competitive supply chain in the U.S. Currently, we are actively exploring and evaluating potential sites for a U.S. facility and to bring that up in line with other investments in the supply chain to be able to support our customers in the U.S. Nothing has been signed so far? Nothing is. You have a... Yes. No, but we're zooming in to a few possible locations, and we expect to finalize this in the next phase. Okay. My last question is on a couple older conference calls, you alluded to going into sort of more high-technology testing and emphasizing testing going forward, but you're really not talking about it very much. Is testing growth in the cards for the future? Well, let me step back here to create a perspective. I think turnkey services for Amkor is important, and turnkey basically includes bumping, probing, assembly, and final test. Testing is an integral part of our offering, and we are investing significantly to expand our test capability and capacity, very specifically in the 5G domain, where 5G testing is a new technology area where we started to invest in about two years ago, and we now have significant volume capability in place in our Korea facility. Well, thanks, and thanks for the results as well. Okay, appreciate that. 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. Thank you. Before closing the call, I would like to recap our key messages. For the Q2 of 2021, we delivered all-time record revenue of $1.41 billion and record Q2 EPS of $0.51. For the Q3, we expect robust year-on-year growth of 26%, with revenue of $1.7 billion. Supply chain constraints are expected to continue in the H2 of this year, with gradual recovery occurring through the first part of next year. We are working closely with our customers and suppliers to help mitigate risks from these ongoing constraints. The main catalysts for growth are 5G, IoT, automotive, and high-performance computing. With Amkor's position in these key markets, we expect to outgrow the semiconductor market in 2021. Last but not least, I would like to thank the global Amkor team for delivering another great quarter. Thank you for joining the call today. Thank you. Ladies and gentlemen, this concludes today's conference call. You may now disconnect.