Greetings and welcome to Kulicke & Soffa's 2021 Investor Day and conference call. At this time, all participants are in a listen-only mode. As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Joseph Elgindy, Senior Director of Investor Relations and Strategic Initiatives for Kulicke & Soffa. Joseph, you may begin. Welcome everyone to Kulicke & Soffa's 2021 Investor Day. Joining us on today's call are several members of the K&S leadership team who will provide a detailed review of our current and future business prospects, as well as our long-term financial targets and framework. In addition to historical statements, today's remarks will contain statements relating to future events and our future results. These statements are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Our actual results and financial condition may differ materially from what is indicated in those forward-looking statements. Throughout today's presentation, we will reference in our past, current, and future baseline revenue assumptions, which represent a theoretical level of total company demand that is supported under a normalized industry growth environment. These baseline revenue assumptions are at the total company level and consider our access to new markets, our participation within several fundamental technology transitions, and the replacement and incremental capacity dynamics of our core businesses. We believe this baseline perspective helps investors better understand the underlying dynamics and growth drivers of our businesses and served end markets. For a complete discussion of the risks associated with Kulicke & Soffa that could affect our future results and financial condition, please refer to our recent SEC filings, specifically the 10-K for the year ended October 3rd, 2020. We've recently celebrated our 70th anniversary and have a long history of innovation and leadership throughout our market served. Based on current guidance for our fiscal fourth quarter, we have grown revenue at a 19% compound annual growth rate while growing operating profit by a nearly 34% compound annual growth rate. Today, we have approximately 3,000 employees based out of 19 facilities in 13 countries. We collectively support nearly 2,000 customers and hold a very sizable market share within our long-established core markets. During today's meeting, we will discuss several fundamental improvements within these core markets, and also provide an overview and outlook to the new higher growth markets that we now have access to. You will also hear from several members of the K&S leadership team. This team has over a quarter-century of cumulative industry experience and has led the organization through a significant transformation over the past four years. Fusen Chen, our President and Chief Executive Officer, will provide specifics to our organizational transformation and also to our underlying corporate strategy. Lester Wong, our Senior Vice President and Chief Financial Officer, will then walk through our financial framework and expectations. We are very happy to also showcase our key business segment heads. MK Han is our General Manager of the aftermarket products and services segment, and Chan Pin Chong is our General Manager of the capital equipment segment. Both will provide many details into our respective positioning at the business and product levels. Additionally, Bob Chylak, our Chief Technology Officer, will discuss the significant and dramatic potential within the fast-growing Mini LED and MicroLED opportunity set. Finally, during the general semiconductor section of today's presentation, we are pleased to host a very special guest speaker who will provide an in-depth customer perspective into the growing value proposition of semiconductor assembly at the leading edge. Today's presentation is expected to run for approximately two hours, and we will hold a brief question and answer session to follow. I would now like to introduce our first speaker, President and CEO, Fusen Chen. Fusen has a long-established history of delivering value through the semiconductor equipment market and also directly to shareholders. Fusen joined K&S in 2016 and has been a catalyst for change, securing our dominant market positions today and materially improving our growth potential for tomorrow. Fusen has fundamentally enhanced Kulicke & Soffa's long-term potential through organizational change, aggressive and focused development, and careful M&A, enhancing our competencies and access into several new and exciting high-growth market opportunities. With that said, I'm happy to introduce Fusen Chen, our President and Chief Executive Officer. Please go ahead, Fusen. Thank you, Joe, and thank you all for joining us today. Despite recently celebrating our 70th anniversary, this is clearly a very unique time in the long history of K&S. Since joining the company five years ago, the entire organization has been very focused to deliver systemic, ongoing improvement across all business functions, product lines, and services. The key message from today's presentation is to highlight why we are now operating and plan to continue operating at a new higher level of performance going forward. Towards today discussion, we will provide many specific detail to how we can sustainably support a new level of growth and the profitability and we have refined our organization, enhanced our competency, and make investment to expand our offering and in the market presence. In addition to this comprehensive effort to drive consistent improvement, the core high volume semiconductor market, which we have led for decades, relies increasingly more on our core competency and the solution. This core offering pervasively serves the entire semiconductor market and are utilized to produce a diverse group of end application, from lighting to smartphones and to data centers. The diversity of consumer and commercial applications that rely on technology developed by K&S is significant. This noteworthy industry presence and position is supported by our deep-rooted competency. K&S has strong history of technical strengths within motion control, ultrasonic, vision systems, software, and metallurgy. Long-standing competency in supply chain management and operational excellence increase our ability to quickly respond to market dynamic, maximizing value at the shareholder level. More recently, we demonstrate our ability to identify, invest, and commercialize new innovative solution, which has allowed us to move into new, exciting, and high growth markets. Our critical competency, combined with the diversity of our end market, is now allowing K&S to play a key role within several exciting technology-driven change, that automatically altering sizable end market. Within semiconductor, challenge of two-dimensional node shrink are increasing the capital intensity across both high volume and the leading-edge applications. Next, electrification and the autonomous trend are driving higher demand for semiconductor content, supporting infotainment, power distribution, and power storage needs. Finally, within the advanced display space, we are playing a key role to enable market adoption of both Mini LED and MicroLED technologies. These technology trends are increasing the size and the growth rate of our existing served market, while also providing meaningful new opportunities, which are expanding our significance within the market we serve. Due to our customer engagement and relentless focus on technology change, we have prepared for this change over the past several years with focus, and efficient R&D investment. We are very well prepared for this key transition and have a broad portfolio of competitive solutions that directly address these new industry challenges. Our current set of opportunities are now being realized due to a very experienced, empowered, and accountable leadership team that has supported this transition. I'm pleased you will have the opportunity to hear from several of them during today's meeting. Ultimately, all of these factors have dramatically enhanced our ability to generate consistent cash flow. At this higher level of demand, fluctuation to broad industry demand trends are much less meaningful to our earnings and cash flow generation. This will provide many more details on our new financial model shortly. Before we go into the details of this presentation, we wanted to remind investors of our environmental, social, and governance processes. Considering our global market leadership, we are in a position of strength to reduce our environmental impact, enhance employee culture, and strengthen our business standards while supporting the community where we operate. We will continue to expand our reporting metrics while ensuring our organization is prepared to meet our future goals, and r ecently we released our fifth annual sustainability report, that provides many more details on these initiatives. These initiatives are some investments that enhance our corporate culture, creating a more aware, engaged, and transparent organization, which strengthen our ability to drive operational excellence. When we examine how we create value, it starts with our employees and the processes. Accountability and empowerment are essential to driving operational excellence and enhancing our ability to pursue multiple opportunities in parallel. Our market share is above 50% in our key served markets. This leadership, combined with our extensive customer network allow us to keep a very close pulse on industry trend, which allow us to maximize access to new high growth opportunities. Over the years, we have expanded our core semiconductor access into general lighting, SMT, advanced display, and automotive. K&S solution have very broad industry exposure and are increasingly aligned with higher growth end market, such as silicon photonics, leading-edge assembly, as well as prismatic and a cylindrical battery assembly. This diversity provide the scale to distribute and support our product largely through internal sales channels. This channel not only enhance our efficiency and profitability, but also provide a feedback loop, which help better understand our customers' challenges and enhance our future technology roadmap. Additionally, we have a very solid financial footing, which we have utilized within our opportunistic repurchase program and also through our consistent dividend. We have also utilized our strong financial position strategically to invest in key transitions that can benefit from our competency. The K&S global R&D team has repeatedly demonstrated our ability to quickly deliver new, innovative, high-quality solutions to meet specific industry needs. This strong R&D competency, combined with our ability to identify new market challenges, enhance our ability to sustainably grow our business. New market access and the favorable market dynamic are allowing our opportunity set to grow more rapidly than it has in the past. As we execute on these new opportunities that create new business, once again, will flow through this value creation cycle. Looking ahead, there are several increasing valuable themes that support our optimism and growth. At the base, our industry is expanding more aggressively than it has before. This is being driven by higher semiconductor content in many end markets. The 5G transition and the auto evolution are significant trends that support above-average growth over the near term. Next, we have demonstrated the ability to efficiently expand into adjacent markets in the past, including battery assembly, SMT, LED, flip chip, thermo compression, as well as advanced display. We have refined this development process, which enhanced our pipeline and increased our success rate. Additionally, we have and will continue to target higher growth adjacencies to expand our served market. We have driven progress within the APS market and continue to seek out additional opportunities. MK will provide some additional information shortly. Assembly complexity is a major theme that is increasing our value proposition in our core high-volume semiconductor market and also providing new access to the leading edge. This is supported by a significant paradigm shift within the broad semiconductor value chain. Finally, we are a key participant in the advanced display market due to our first-mover advantage, which has created a new competency set that we will continue to build on. We are rapidly developing our next-generation system and have several engaged customers. Bob Chylak will provide more information on this transition. Shortly after joining K&S, I reorganized the company to drive a more accountable, efficient, and empowered organization. Initially, this was focused on growing the APS segmentation and maximizing the efficiency of the global R&D team. We set new growth and market share targets within APS, which we are executing on, and have also dramatically increased the efficiency and bandwidth of our R&D team. In the years that followed, we've expanded our served market access by gaining shares and also supporting above-average growth in specific market areas, including LED lighting and heavy wire wedge, and began to benefit from increasing capital intensity within our core market. Finally, we have moved into new exciting markets, including display, battery assembly, and SMT, which provide both diversification and higher growth opportunities. Our TAM has expanded by 250% over the past seven years. Our strong empowerment and accountable organization, structures, and culture have increased our bandwidth and efficiency, allowing us to rapidly address new market needs while expanding shares within markets served. Prudent acquisition has increased our competency and provided immediate access to new and fast-growing markets, while targeted R&D investment has expanded our product portfolio. Looking ahead, we anticipate this TAM will increase further to approximately $5.5 billion by FY 2024. This new market access provides diversification, higher growth, and incremental adjacent opportunities. Today, we are critically involved in several fundamental and significant technology transitions across semiconductor, automotive, and the display market. We have worked aggressively, have strengthened our competency, and expanded our product portfolio to support this specific trend. As this transition becomes more meaningful through fiscal 2022, we are also entering a period of dramatic industry expansion. The period of expansion is being driven by a dramatic increase in semiconductor demand across our end market. 5G is a significant end market driver, which goes beyond smartphone and infrastructures, but also to new devices and applications. Additionally, 5G is supporting the new data era and also new higher bandwidth network deployment. Collectively, this fundamental technology transition, combined with the industry expansion period, is allowing us to operate at a new level of profitability, which we expect to be sustainable over the coming years. Looking ahead to fiscal 2024, we believe our targets are rational and realistic. However, we anticipate there could be upside to our forecast and expectations based on the timing and the growth of this trend. I would now like to turn the discussion back to Joe Elgindy. Joe? Thank you, Fusen. Our next presenter joined Kulicke & Soffa in 2011 and has nearly 30 years of experience leading a variety of functions supporting both private and public organizations, largely within the software, internet, and technology markets. At K&S, Lester has been intimately involved in the development and execution of strategic initiatives at the product and corporate level. He has been critically involved in organizational change, our acquisition strategy, and capital allocation initiatives. He has led the global finance, IT, and facilities organizations at K&S since 2017. It's now my pleasure to introduce Lester Wong, Senior Vice President and Chief Financial Officer. Please go ahead, Lester. Thank you, Joe, and thank you all for joining today. As Fusen mentioned, our entire organization has worked extensively to expand our market opportunities. This focus, combined with technology trends in our favor, provides new layers of structural growth, enabling better visibility and positioning us to outperform over the long term. Secondly, we have a track record of providing realistic and rational goals that align with long-term market dynamics. I'll provide some details to our future financial model and framework shortly. Considering some of our higher potential drivers, such as assembly complexity and advanced display, we see upside in the out years. Next, we have taken a very long-term view when allocating capital. We continue to have a very strong balance sheet and have multiple paths to enhance returns at the shareholder level beyond the scope of our financial framework. Finally, it is very important to understand our business is extremely more profitable at the $1.5 billion level. We have strategically enabled scale across our business from an OpEx standpoint. This inherent leverage increases profitability but also increases our ability to generate much more consistent earnings going forward. Looking out over the coming years, we anticipate our baseline revenue to grow by $600 million by fiscal year 2024. Over the next few years, we anticipate reaching $1.5 billion due to a period of broad industry expansion combined with business execution through fiscal 2023. We've introduced the concept of baseline revenue over the past few years to better help investors normalize our revenue. This baseline concept references historical trends and our underlying market dynamics, which helps to understand the fundamental level of demand regardless of broader industry conditions. Looking ahead, this additional incremental baseline growth stems from 12 specific opportunities, which we will outline in much more detail throughout today's discussion. To add more color, we have also categorized this growth based on three key strategies, which are evenly split. These stem from normal levels of semiconductor growth, above-average growth in markets such as advanced packaging and automotive, and share gains within advanced logic markets and also within our electronic assembly business. Looking back at our last Analyst Day, we set some aggressive targets based on our understanding of the markets. At the time, they seemed aspirational but have actually stemmed from our bottoms-up long-term planning process, which is conducted annually. While the year isn't over yet, we anticipate dramatically exceeding the stretch target of $1.2 billion. We expect to surpass our past revenue target by 25% and our non-GAAP EPS target by approximately 40% this year. At this point, fundamental technology transitions are progressing nicely and provide a higher level of long-term visibility throughout our businesses. Over the past years, our baseline revenue grew as the industry expanded. Assembly started to become more complex, and we now have new access into the advanced display market. We have introduced the concept of baseline revenue, which helps to illustrate our annual revenue on a normalized basis. The variable we normalize to is semiconductor unit growth, which has averaged about 6.5% over the past decade. These new markets and core market growth opportunities within high-volume semi have allowed us to grow our baseline revenue from $675 million to $900 million over the past three years. Historically, industry dynamics have had a material impact on demand levels for our products. While semiconductor growth has averaged a 6.5% CAGR rate over the long term, there are periods of above-average and below-average growth. Our baseline model is calibrated to the historical average growth of 6.5%. We have recently exited an extended period of not only below-average growth but net negative growth. Fiscal 2019 and 2020 were very unique periods with semiconductor unit growth significantly below average. This was related to the industry downturn followed by a global pandemic, which impacted broad macro trends. Looking ahead, we are now experiencing fundamental technology transition, such as assembly complexity and above-average industry growth due to new end markets like 5G, AI, and the broader data era. These trends are allowing us to operate at a new, higher level of performance in the near term, and a higher sustainable level going forward. At the same time, we're very focused to execute and aggressively expand our offerings, which are providing meaningful share gain and new market opportunities. Throughout today's presentations, we will closely examine the individual opportunity sets across our end markets that bridge this baseline acceleration. Again, there are a set of 12 specific opportunities across these four major end market categories. Within general semi and memory, we see opportunities for market share gains, industry expansion, and above-average growth. Within aftermarket products and services, the growing install base expand our servable market, and we continue to execute our tactical strategy to provide additional value-add services. In the LED market, we anticipate market growth in the traditional lighting market to continue, and much more significant growth within the broad advanced display evolution. Bob Chylak, our CTO, will provide specific details to why we're winning in this high-growth market. Finally, in automotive industrial, we're expanding our offerings to support new fast-growing markets. At the same time, the transition to electric vehicles and ultimately fully autonomous vehicles provide a long-term and interesting market opportunity. With the expanding baseline, our ability to generate and sustain a high level of earnings has significantly improved. As we execute to grow our baseline at a high growth rate going forward, we continue to seek out new opportunities for margin expansion. We anticipate our gross margin to expand by approximately 500 basis points due to the growth in higher margin business and aggressive focus on cost reduction, and also due to the new value proposition that has impacted the broad assembly market. By fiscal 2024, we anticipate our normalized non-GAAP earnings per share to sustain above $6. By this time, we see the potential for additional upside in our higher growth markets, specifically, but not limited to advanced packaging trends and also, the global adoption of Mini LED and MicroLED. Assumptions in this model assume semiconductor unit growth at least 6.5% in fiscal 2024. We are holding our tax rate and share count consistent at 18% and 63.5 million through this period. In addition to this positive financial framework, we will also continue to take a prudent, balanced, and long-term view on our capital allocation strategy. A few key principles have guided our capital allocation strategy over the past several years. These include a very thoughtful and careful approach to internal and external investments. Here, we have worked to increase the success of internal projects by increasing long-term development engagement with our customers and other key industry partners. While many products can be accretive, we are very selective with new internal investments in an effort to align our business with higher growth vectors. As we expand our competencies, it opens our access to a broader set of fast-growing and interesting opportunities. These provide paths to both organic and inorganic growth in the future to enhance earnings and deliver value to our shareholders. We also want to maintain flexibility within our balance sheet to quickly invest in new organic and inorganic opportunities as they become available. Our dividend and repurchase program allow us to provide both consistent and also opportunistic returns to shareholders. The dividend allows to consistently return capital to shareholders regardless of industry dynamics. We have returned nearly $100 million of capital to investors through dividends since initiated in fiscal 2018. Last December, we increased this dividend by over 15%. Going forward, we strive to keep the dividend competitive to our peers, and also intend to be more consistent with annual dividend increases. The repurchase program allow us to opportunistically reduce shares outstanding through open market purchases. Occasionally, changing ownership or market sentiment provide near-term opportunities to reduce share count and add value at the per-share level. The repurchase program has added a tremendous amount of economic value to shareholders over the long term. Over the past few years, we have aggressively repurchased shares, which has depleted available cash in certain jurisdictions like the U.S. We are currently transitioning a sizable portion of our global cash balance in the U.S. in the most cost-efficient manner, where it can be utilized for the dividend, share repurchase program, U.S.-based M&A, or incremental R&D spending. Finally, our financial framework currently only assumes that we will offset dilution with the repurchase program, but does not assume any M&A or opportunistic repurchases, which we have engaged in over the past years. Considering these points, we expect upside in our longer-term financial framework on a per-share basis. With that said, this concludes the financial discussion, and I will now turn it back to Joe. Thank you, Lester. I'm now happy to introduce MK Han, our Vice President and General Manager of Products and Services. MK has driven the Aftermarket Products and Services strategy and segment transformation since joining Kulicke & Soffa in 2017. After joining K&S, MK has enhanced our competitive advantage within the APS segment, driving market share gains, expanding our offerings, and increasing recurring revenue. MK earned his Master's in Physics from the National University of Singapore and previously held senior positions at semiconductor equipment companies, including Mattson Technology, Lam Research, and Applied Materials. MK, please go ahead. Thank you, Joe, and thank you all for joining today. By fiscal 2024, we anticipate our Aftermarket Product and Services or APS business to grow by another $60 million. This comes from three main areas: industry expansion, market share gains, and the value-added services. There are a few key messages I would like to cover regarding APS business. First, APS allows us to further increase our engagement with the customer, which helps us to understand their needs better. This feedback is key to drive the right product development to meet our customers' future needs and challenges. Next, we reorganized the team and our strategy a few years ago. With a sharper focus, we have made meaningful improvement in expanding our product offerings to serve our customers and to grow our business. Finally, the growing challenges of assembly complexity and the broader challenges due to technology transition are opening up new opportunities for higher value-added product and services. Today, consumables represent just under half of our APS revenue. We are expecting this composition to remain more or less the same in the coming years. Consumables are tools used in the back-end assembly equipment, capillary, wedge, and dicing blade form our core consumables business today. The market opportunity for the consumables is expected to grow dramatically over the coming years with the install base expansion from the current aggressive ramp. Spares and services represent just over the other half of our APS revenue. This business is also expected to increase with forecasted high factory utilization, new forms of assembly moving to high volume production, and increasing demand for value-added services by our customers. Our comprehensive product offering, together with our global service organization, enables K&S to win to help our customers to win. As original equipment maker, our in-depth equipment and application knowledge enable a very close working relationship with many customer. We are always the first point of contact to our customer when needs arise. The other key differentiator for K&S is our unique consumable offerings, allowing us to provide a very comprehensive solution together with our equipment. This unique combined offering receive very positive feedback from many customer in our annual voice of customer survey. Our global presence in many countries near to the customer shorten our respond time when the customer needs our support. Our close engagement and regular feedback from the customer help to drive continuous improvement in our product to meet their needs. The outlook for the consumable business is very positive due to several favorable factors. First, accelerating demand from strong customer factory utilization. Second, the install base growth from overall industry expansion, and the new market that increase our serve available market. These factors will provide multi-year growth opportunity to increase our recurring revenue. Why we win? Our consumable are designed and optimized for our machine through the joint development between the engineering team within K&S. We also provide a comprehensive consumable product portfolio to a wide range of back-end semiconductor assembly equipment. Our continuous effort to drive best-in-class OEM product quality, together with our application expertise, enhance our position to be the preferred supplier to our customer. With a strong business outlook, we continue to invest to further strengthen our R&D and high volume manufacturing competency, especially in the area of advanced material development, manufacturing technologies, and factory automation enhancement in our manufacturing hub in China. In the last couple of years, we have developed a wider range of aftermarket product portfolio to serve our customer. Spare parts and service support continue to be the 2 key products serving our install base. We have more than 250 service engineer and multiple warehouse at key sites. APS has also expanded our repair and refurb services to support our customer needs throughout the entire equipment life cycle. There's also an increase in the demand for technology and productivity upgrade to extend equipment useful lifespan and to lower the customer's COO. Our customized service program, K&S Care, cover both labor service and spare parts, provide a comprehensive maintenance solution on our machine. This enable our customer to focus on driving manufacturing efficiency in their factory. Last but not least, we have expanded our Industry 4.0 solution and have recently released a cloud-based KNeXt solution. We will continue to develop and expand this new value-added service solution to serve the changing needs from our customer. Our existing spare and service products from our install base continue to form the backbone for our recurring revenue. With the growing complexity in the industry and our new recruitment entering into new market segment, we expect a higher demand for our higher value-added services and solution. This includes our broader K&S Care services and K&S solution that support our customer transition to Industry 4.0 and factory automation. A new generation of bonder designed to be Industry 4.0 capable, which we call smart bonder. We have also developed a proprietary Industry 4.0 software platform, KNeXt, to enable complete machine edge cloud solution for our customer. Some of the key benefits and feature for our KNeXt solution includes real-time advanced process control, customized visualization for user analysis, and full product traceability to enable the development of predictive maintenance and factory process control. This new solution will open up many new and exciting opportunities to install base in the future. With that, I end my presentation, and I'd like to turn the discussion back over to Joe for our next session. Thank you, MK. Our next presenter has led many enabling innovations within semiconductor assembly. These crucial innovations, which are embedded throughout our capital equipment offerings, provide the industry with market-ready solutions that mitigate the challenges of two-dimensional node shrink in both high volume and also leading-edge semiconductor assembly. Bob has also played instrumental roles in enabling the broad industry's gold to copper transition, which has materially reduced semiconductor production costs and extended the value proposition of wire bonding assembly. Over the past few years, Bob has increasingly focused on next generation Mini LED and MicroLED placement technology. Bob has been instrumental in the development of our current market leading placement solutions and also the development of our recently shipped LUMINEX system. Bob also leads our next generation advanced display roadmaps. With that said, it's my pleasure to introduce Bob Chylak, our Vice President and Chief Technology Officer. Please go ahead, Bob. Hi, everyone. Today, I'd like to talk to you about LEDs at K&S. This is an exciting opportunity for growth of our baseline revenue. As you can see from this slide, we believe that by 2024, we can add about $150 million to that baseline for both traditional and advanced display. This growth potential is for both traditional and advanced display. While our projected growth comes from both areas, today I'll focus on Mini and MicroLEDs for the advanced display. This is a significant growth opportunity for us, and we'll show some market data on the subsequent slide. We have a leadership position. We're entering this with an established machine, the Pixelux, and we're working through partnerships, mergers, and acquisitions, and organic investment in R&D to maintain and solidify that leadership position for the future. We have already some key customer engagements for production of our Pixelux in the field. We're leveraging those to build on them to get into mini and micro LED for more advanced displays. We've created aggressive roadmaps. We're accomplishing that through R&D spending, and we have several products in the development pipeline comprehensively, to support these multiple opportunities. If we go on to the next slide, I'd like to stress that mini and micro LED are complementary, and they will coexist in the future. They're intimately involved in the supply chain for both and often it's the same players. We're committed to enabling this industry transition as we see it as a great growth sector for K&S outside our traditional wire bonding and packaging. Mini LED transfer technology is extendable to micro LED. As we're working hard on the Mini LED, we're also providing the future basis for entering MicroLED. Mini LED applications are ramping right now. It serves the high volume display market, and this is because backlighting for Mini LED improves the power efficiency, the brightness, and the contrast of LCD displays, and t his is sort of a logical transition. It might be analogous to fluorescent lighting transitioning to LEDs a decade ago. When LEDs first appeared, they started to replace traditional lighting, and the adoption took a few years. The LCD industry is driving this adoption. For MicroLED, there's R&D ongoing, and it's intensifying to solve the near-term industry challenges to drive adoption. This will become in production for commercial displays and even mobile and wearables, and that'll drive the future demand. This technology competes with other self-emissive technologies such as OLED, but is brighter and there's no burn-in, and it has very high reliability. Micro-LED applications will start to ramp in 2024 after the R&D is accomplished. To the next slide, where's K&S? Where are we in this? Today, we have a leading solution and the largest market share for ultra-fast final placement with our Pixelux product. We recently acquired a startup, Uniqarta, who we had been working with, that has laser technology, and that adds laser competencies to our development. We're broadening our portfolio of next generation of mini and micro-LED market-ready solutions and working hard in R&D to do so. This market for both mini and micro-LED wafers is expected to grow at about a 55% compound annual growth rate over the next four years. If you look at the timeline on the next slide, we have a proven ability to rapidly intercept the technology trends. In September of 2017, we identified a new advanced display market opportunity. By August 2019, we recognized revenue for the first machine in this market approximately two years later. Another year later or so, we delivered the 100th Pixelux machine to the market. The following February, we acquired Uniqarta, who we had previously been working in collaboration with, and then j ust now in September this year, we shipped our first LUMINEX machine. We're positioned to enable widespread adoption of the advanced display, and we've shown that we can commercialize products within about two years. I've spoken about the Pixelux, the LUMINEX, and MicroLED. Let's talk a little bit about the technologies behind them. The Pixelux is a mechanical transfer. You can see that the die are mounted on tape upside down and a pin mechanically presses the die down onto the PC board into solder paste. We can do this remarkably quickly at about 50 die per second. This is a mechanical process, and this mechanical process, while remarkably fast, is going to run out of steam. We decided that we needed a new technology to gain higher cost of ownership, better cost of ownership, higher productivity. We are developing and have developed the LUMINEX machine. This is based on Uniqarta technology. We have a patented laser transfer. Let me describe a little bit about how it works. A laser, there's a tape mounted on a fused silicon substrate, like a glass substrate, and the die is mounted onto that tape. The laser beam shoots through the tape, it's positioned through the tape, and the tape is two layers. The first layer of tape gets heated, it absorbs the laser energy, and gas is formed, and there's sort of a mini explosion. The second layer of tape contains that explosion, so it does not add debris to the tape. That's the genius in this technology, is that there's a little micro machine that can transfer the die very quickly. The laser pulse heats the material in only tens of picoseconds, and the die is transferred in microseconds. As opposed to mechanical transfer, instead of moving a gantry mechanism, cameras, this is all positioned by mirrors, galvo mirrors, that can move extremely quickly. The productivity of this machine can be much higher, and it's similar in nature because the die is mounted to tape. In the future, for MicroLEDs, where an 8K display can have up to 100 million die LEDs mounted to them, we need much, much faster transfer. We're developing the same technology, but instead of shooting one die across a gap onto a board at a time, we're going to shoot many die simultaneously, so t hat opens market potential for us. If you look at this chart, this is a chart that shows how a display is made. First is the epitaxy done in the fab, then dicing of the wafer, and stretching of it onto a tape. These die have to be sorted and mixed because the wavelength of the die are not uniform. Die of the same wavelength need to be put on a new reconstituted wafer so that your eye cannot detect color changes. If it's for an RGB display, the die are repitched onto a pitched array module, and then they're placed finally onto the substrate. The Pixelux today can do the final placement onto the substrate, but does not do the sorting or the repitching. However, the LUMINEX, with its better accuracy and laser transfer, can do the sorting, the repitching, and the final placement. This opens, not just backlighting applications, but it opens RGB applications for both Mini and MicroLED. We go on to the next page, we can look at the market. This market shows thousands of four-inch equivalent wafers on the Y-axis versus time. You could see that in 2021, most of the market are the backlight applications for Mini LED. There's a small amount of self-emissive RGB but, b y and large, the whole market is for backlighting. You can see that over time, the market grows for backlighting and self-emissive RGB displays and grows further, until finally in 2025, MicroLED emerges. In this market, we have engagements with multiple customers, solutions in development or already available for backlighting and self-emissive displays. This gives us access to new process steps, and increases our SAM by 66% by 2024. This market growth, as I said previously, is 55%, and it's a huge and significant growth sector for K&S, and it's very exciting. Finally, let me compare the specs and the applications for our roadmap. The Pixelux is a backlighting machine. This is for premium displays. Our customer engagements are limited. We have partial IP, and the accuracy of the placement of these die is about 20 microns at 3 Sigma, and our throughput's 50 to 75 per second. The LUMINEX, the laser-based system, can do both backlighting and self-emissive displays. The end market will be mass displays. There's many customers that we're engaged with or are in the queue. We have full IP ownership. The accuracies of the placement is now below 10 micron, and we can achieve much, much higher throughput with the laser-based system, depending on the application, up to 1,000 per second. Then the self-emissive displays for MicroLEDs in the future, we've already engaged with several customers. We fully own the IP. We believe we can get the accuracy less than 1 micron for the transfer of these dies. In order to hit the throughput that makes this cost-effective, we will extend this technology to throughput greater than 10,000 Hz. With that, I'll turn this back to Joe. Thank you, Bob. Our next speaker brings nearly 30 years of experience in the semiconductor and electronics assembly markets. Over the prior 20 years, he has driven sales, business unit strategy, and operational execution within senior leadership roles at KLA Corporation and FormFactor. Prior to joining K&S, Chan Pin also served as chief executive officer of Everett Charles Technologies. Chan Pin joined K&S in 2014 and has added a tremendous amount of value by expanding our automotive business into battery assembly and intercepting the advanced display opportunity. He has strengthened our position through organizational refinements within the wedge bond, advanced packaging, and electronics assembly businesses, and currently serves as our Executive Vice President and the General Manager of our Capital Equipment Segment. While Chan Pin Chong is ultimately P&L responsible for our complete Capital Equipment Segment, today, he will cover the general semiconductor memory, automotive, and industrials and market opportunities. Please go ahead, Chan Pin. Thank you, Joe. Well, it's exciting times now on automotive and industrial segments. We believe that this fundamental changes in the coming years is providing a huge growth opportunity for K&S. Looking at this slide here, we see auto growth, industrial growth, and battery interconnects, and are contributing close to $90 million of incremental opportunities on auto and industrials. Some of the strong positions that we have today in auto, with our core business in wire bonding, wire interconnect, battery interconnects, is giving us a very strong position as a leader in automotive back-end semi wire bonding. At the same time, we are also seeing growth above the average, especially in semiconductor content, and we continue to see this expanding dramatically in the coming years as the growth of electric vehicles continue to evolve. We are strongly engaged with a lot of lead customers in Europe, U.S., and Asia. These ongoing customers engagements is giving us extreme momentum in the semi for auto and industrial segments. We will continue to expand the market and continue to grow in these auto industrial segments. Let's start with a history of where K&S started in automotive segments. In 2006, we entered the power IC market. In 2017, we released the RAPID Pro, and we entered into the EA market after the acquisition of Assembléon entity in Netherlands. In 2021, we continued to expand battery solutions. We anticipate that in 2021, this is going to contribute over $120 million of revenue for both auto and industrial revenue. There's some competencies that I like to highlight. As you can see, some of the pictures on the right, ribbon bonding. Ribbon bonding is an innovation developed by K&S, together with the Ultradyne brand in the past of wedge bonding. We started developing very core IGBT power modules for the industrial controls as well as the hybrid and electric vehicle productions. This has enabled very high volume, very high reliability electric vehicle battery assembly. This is all coming very strong momentum in the last couple of years. We anticipate that this growth will continue to grow even more. Like I mentioned, we have very strong customer engagements, over 150 dedicated auto and industrial customers for both power and discrete solutions. We're also in the hybrid power hybrid, which is t he picture on this bottom right of the white power module, that's a power hybrid module. That's a simplified module. In it is including MOSFETs and transistors, diodes, transistors in a power module, driving inverter modules for electric vehicles and power hybrid solutions. Alternative energy solutions is a segment in the market. We continue to identify solutions to go into alternative energies, for example, like electric, hybrid electric, plug-in electric, solar, storage power. These are examples of alternative energy solutions. The next slide basically shows a simple explanation of why the full electric is advancing faster than the original plan. As planned in the past, you can see in the bottom line, this was supposed to evolve in the next couple of years, but due to the whole carbon footprint reduction, CO2 reduction, incentives for zero-emission vehicles in China, and basically, a clear plan of transition from combustion engine to electric, this initiative driven from both regional government, institutional, commercial, has basically brought the curve forward. We expect that this is going to continue for the next many years, but the pull forward is going to be two to three years ahead of going to full electric. As you can see, many announcements from different automotive players announcing a clear strategy and plan going towards full electric in the next coming years. How does that help K&S? Let's look at the next picture, which is a very simple schematic of an electric car with a big battery in the center, high-voltage battery, a battery management to manage the batteries as well as communicate to the electronics in the modules of the car. Importantly, on the left, you see an inverter for AC and DC, and that's also using what we call the IGBT modules. Of course, you have the low voltage, high voltage converters, the DC to DC. You can see on the left side, we have a picture of the wedge bonder, we call the Asterion. It's targeted for applications in sensors, IGBTs, diodes, hybrid pack, MOSFETs, and battery management. In many applications, our wire bonder family, wedge bonder, specifically as Asterion, has been driving very clear applications towards all these different applications. Moving to the picture on the bottom, it's our core pick-and-place machine, and we call electronics assembly. It's basically a combination of a line that consists of a high-speed pick-and-place called a Hybrid. It's coupled with the iFlex for different component sizes, placements. This is used for placing components on a PCBA that's also used in many parts of the car vehicles. For example, what we've seen most recently is, for example, is like the infotainment, the dashboards, where a lot of electronics, LED screens, all kinds of electronics are in the infotainment systems, and we see this as a big, huge advantage of a high-speed automotive Industry 4.0 compliance in terms of supporting this industry. On the right, you can see a battery module, and there's two basically types of different battery modules that we've seen in the market. One is the cylindrical batteries, and one is the prismatic. Again, we have been very strong in leading the cylindrical battery interconnect, and recently we're also getting into certain engagements on the prismatic battery cells. The pictures on the right shows different wedge modules that again, supports the different applications for the electric car modules. I think if you look at the header, right? Basically, we see the semi content. It's going to continue to grow at least 2x to maybe up to 8x when electric vehicles are just going full autonomous. It's beyond the electric vehicles that we see adoption of semiconductor in power modules and electric vehicles. We start to see that beyond the vehicles, a very key important component is the silicon carbide adoption for fast chargers in electric vehicles. What we see that the need, the requirement to fast charge a car, 30 minutes, 40 minutes, or less than 1 hour, becoming a very important point for considerations for adoption for electric cars. What we've seen in semi is the mixed compound called silicon carbide, where it provides a much higher charging rate based on the mixed compound silicon carbide's attributes. It has better thermal behavior, it has better electrical behavior, it has better contributions towards ability to fast charge a car within less than 30 minutes. What we see here is that for silicon carbide, you can get charging rates from 350 kW or up to 1,000 V, right? We start to see that many key leading customers of ours adopting silicon carbide in terms of their modules that uses our wedge bonders or wire bonder solutions. We're going to see this also a lot towards the IPM, Intelligent Power Modules, where it also has a system to package type of efficiency gain. This creates basically a multi-chip modules within power modules. This gives advantage of integrating the logics as well as the power IC chips into a certain module we call IPM. The picture on the right basically shows a three-head wire bonder, wedge bonder that shows how the multi-chips can be wire bonded using multiple heads to bond the different chips to the substrates or the lead frames. This is one of the examples, but we start to see that the drive for infrastructure is becoming more and more important. As a result, silicon carbide naturally becomes a part of a very important solution to this whole infrastructure of chargers. Moving on, I'd like to just explain that we have been very focused on the cylindrical batteries for the last couple of years, driving very high efficiency battery interconnect for cylindrical cells. The systems that we have right now are over 500 systems in cylindrical production, and it has been growing for the last couple years and will continue to grow at a CAGR of 30% through 2025. Today, cylindrical battery interconnect represents close to 20% of all EV battery markets, and we believe that this will continue to grow even more in the next coming years. Moving on, K&S is moving to the next-generation product, which we call a new laser-based cylindrical battery systems. Recently, we got qualified with a major battery manufacturer in North Asia. We have been shipping tools to them, and they have been starting to do battery interconnect, using our later-generation wedge bonders. This is going to be used in large packs for commercial trucking productions. Moving on further below, the arrow pointing down is a new, entirely new offering called the Prismatic Battery Solutions. As I explained earlier, the battery comprises mainly of cylindrical as well as prismatic. Now with K&S initiated to go into the prismatic, I believe that this is also giving us a very high potential market. It will represent close to 10% of our fiscal 2022 auto industrial revenue. One of the key markets we'll see is in Europe, specifically in East Europe. As you see, a lot of automotive players are beginning to have strong presence in East Europe to support the entire European market as well as international markets for automotive, as well as going into the EV market. I'd like to hand over this time to a very key strategic customer of ours, from Intel. His name is Mostafa. He's currently the Corporate Vice President and Director for Die Prep and Assembly Technology Development. He has been working closely with K&S in many different projects. He's got over 37 years of experience leading transitions of assembly complexity. Mostafa, I'd like to introduce you and welcome to our K&S Analyst Day. First off, thank you for the opportunity to participate in this call. What I'm going to share with you is our views on advanced packaging and heterogeneous integration for creating system-level capabilities and in a package, and also talk a bit about our partnership with K&S. Before I start, I need to make some legal disclaimers, as some of the statements that refer to Intel's future plans or expectations are forward-looking statements. These statements are based on current expectations and involve many risks and uncertainties that could cause actual results to differ materially from those expressed or implied in such statements. All right, with that out of the way, if you look at the history of semiconductor and computer industry over the last 40 years, a lot of performance has become available to a lot of people through several disruptions that have taken place. During the early years in the PC era, 1 billion devices were connected to internet. Then, in the mobile and cloud computing era, there were 10 billion devices connected to the cloud. Now, with the compute becoming a part of everything, and everything getting connected and smarter, there has been an exponential growth in the amount of the data that is getting generated. Only a fraction of this data is being analyzed and translated to useful information. This is driving an insatiable appetite for compute power. As we look forward, we are entering an era of exascale computing, and tremendous amount of compute power will become available to the masses, with around 100 billion connected devices. This will result in even a faster growth in data generation and driving the need for even more computing power and the network capabilities, as well as storage. The question is that how we can create and build products to meet this growing demand for performance and functionality that is driven by data-centric applications, and how to do it in light of growing cost and complexity of the silicon process node scaling. This is where advanced packaging and heterogeneous integration comes into play, by enabling integration of right transistors on the right silicon process node, an d creating a system on package with a ton more transistors that can be achieved from a single monolithic die. By leveraging advanced packaging technologies, we can overcome some of the limitations of the monolithic silicon by repartitioning the device and breaking it into tiles and chiplets. For one, this will allow us to remove the reticle size limitations by building products on multiple pieces of silicon. We can also build products by using transistors on different process technology nodes from different foundry sources and optimize for yield, for cost, and for performance. At the same time, we can shorten the debug and validation cycles, and as a result, shorten the time to market. Over the past several years, many players across the semi and computer industry and the ecosystem have realized that the role of the advanced packaging is so critical in building better and differentiating products. This has led to significant increase in R&D investments, investments in manufacturing and scale-ups, and so on and so forth. Here, I want to share a snapshot of Intel's advanced packaging roadmap. As you can see, our portfolio is built around 2.5 D and 3D interconnect technologies with the goal of maximizing the interconnect density, and minimizing the power and the latency associated with the interconnect, and trying to get a performance level as if you had a monolithic piece of silicon in a disaggregated architecture. As you may know, EMIB is industry's first 2.5 D embedded bridge that enables a very high, very efficient, and cost-effective interconnect in a 2D space. This technology has been in production for quite a few years and we have a growing number of products that are being designed and built on this architecture. Foveros, the next one, is the first-of-its-kind 3D stacking technology that provides a very short interconnect with much higher interconnect density. This one, same similar to EMIB, has been in production for a while. Right now, we have two other versions of Foveros technology in development as it has been announced by Intel in the past. One is Foveros Omni, which provides a combined direct silicon to silicon, and a silicon to substrate connection in a 2D space. The key attribute of this technology is that offers a path for further design flexibility and cost and performance optimization. Lastly, we have Foveros Direct, which leverages direct copper to copper bonding instead of using solder. As you know, this technology increases the interconnect density by an order of magnitude. One other point I want to make is that these technologies can also be combined in various fashions in a single package to create extremely powerful system and package type of products. I also want to show you some examples of our flagship products that are built on these architectures. Some of these are in development and not in the market yet, but some are. To the left, I have Intel's Agilex, which is an FPGA product on EMIB technology, which integrates fabric, high bandwidth memory, and various high-speed I/O links on different silicon technology nodes from different foundry sources. In the middle, I have a couple of mainstream client and server products, which are currently in development, and these are built on Foveros and EMIB technologies. To the right, I'm showing Ponte Vecchio, which was announced recently and is currently, we believe it is industry's most complex system in packaged product that is built on a combination of EMIB and Foveros packaging technologies. As you can see, in this case, we have around 47 chiplets connected through high density and high bandwidth interconnect, to behave as if these were all part of a super-sized monolithic device. This product combines the layers of high bandwidth memory, cache, high speed I/O, and compute tiles, all of these in a single package. One key message I want to convey is that as you can see, many of the mainstream products across several market segments are now moving to advanced packaging and system package architectures. As I mentioned earlier, other industry players are also investing in advanced packaging. They're all trying to create heterogeneous interconnect platforms to integrate chiplets with the least amount of overhead or what I call interconnect tax. Here, I'm showing a couple of examples from Samsung and TSMC. To the left is TSMC's 3D advanced packaging platforms. They use various interconnect schemes like organic redistribution layers or silicon interposer. They're also going to bring up direct copper to copper bonding per their announcements. These all have different optimization points for interconnect density, for power performance, for cost. To the right, there are a couple of examples from Samsung's Cube series platforms. They use, like TSMC, silicon interposer for 2D. They also recently announced their X-Cube 3D platform using solder bumping and through silicon via interconnect. Looking further into the future, the next barrier to overcome is integrating optical I/O in a package. This is driven by a number of factors, like the need to increase the I/O bandwidth, in particular in data center space, or the fact that network power is increasing, and is becoming a larger portion of the system power. Also, the need to increase the reach of high bandwidth and high data rate connections. Now with co-packaging of the optics, the optical ports and I/O can be placed near the switch within the same package as opposed to a plug-in connection to the system, which is the approach that is out there today. What this will do is it will reduce the system power tremendously and will enable I/O bandwidth scalability. By the way, this level of integration requires a lot of innovations in design, in equipment, in materials concerning the type of unique requirements and challenges for electrical and optical coupling, and the fact that we need to reduce the amount of the losses to this coupling. Now, looking at the supply chain and supply ecosystem around advanced packaging, we are seeing some major shifts that are important to understand and internalize. For one, advanced packaging requires some of the capabilities that exist in silicon far back-end. As you may know, the boundaries for where the silicon wafer process fabrication ends and where the package manufacturing starts are blurring. For example, many of the process steps need to be in a silicon fab-level type of a clean room environment, like ISO 5. The formation of some of the fine feature size redistribution layers requiring patterning steps that are used in silicon fabrication. Most importantly, we need the types of hardware and data automation systems that exist in the fab environment to deal with a bit more complex flows and more stringent process and quality control requirements that are needed for these kind of technologies and processes. To that end, we are seeing a trend where traditional front-end and back-end equipment and material supply chain is converging. We are seeing front-end suppliers moving into the back-end space and making investments, a lot of investments actually, and growing their business in advanced packaging space. The back-end suppliers are investing in cleaner tools, higher precision tools, or investing in fab-like processes, either organically or through acquisitions. The other trend we see is the growing number of collaborations and partnership arrangements between front-end and back-end suppliers. They are realizing that this is a path to accelerate the rate of innovation and the need for creating more integrated and more of a turnkey solutions for their customers. We believe this is creating an unprecedented opportunity for suppliers to invest, to collaborate, to innovate, to differentiate, and improve their business portfolio, and keep on expanding and taking advantage of these opportunities. Lastly, as a K&S customer, I want to make a few comments regarding our partnership between Intel and K&S. In our view, we consider K&S as a key strategic supplier and partner for Intel. In our view, K&S plays a critical role in support of our current and future needs for advanced packaging. I want to recognize K&S's investments and their outstanding level of commitment from all the way from Fusen Chen, his executive team, and all of K&S's employees in support of our needs. We believe, based on years of working experience with K&S, they have a deep engineering bench and valuable who continue developing very well-engineered tools and capabilities, and we are very happy and excited about the kind of capabilities that they have provided to us. These tools have become key enablers for our packaging technology roadmap and manufacturing. As we have worked together, we see continued improvement along the technology, quality, affordability, and sustainability vectors. Most importantly, I want to recognize the efforts by K&S in support of our needs in a super tough COVID and supply-constrained environment, which apparently, you know, continues for a while. We are more than ever dependent on K&S. As we look into the future, we see many opportunities for collaboration, for investment and innovation, to shape Intel and the industry's advanced packaging roadmaps. Examples include, I have listed a few, like copper-to-copper interconnect, optical packaging, as I talked about it earlier, opportunities on panel processing type of tools, and also collaborating to develop more intelligent manufacturing and participating in Industry 4.0 transition. With that, this concludes my talk, and thank you for listening. Okay. Thank you, Mostafa. I'd like to now introduce the overall general semiconductor and memory landscape, in terms of what K&S Solutions is providing in the coming years, especially in the exploding growth of the semiconductor segments. We believe that incrementally, that's close to about $300 million of incremental general semi and memory baseline opportunities. A lot of this is going to come from advanced assembly, industrial expansion, electronics assembly, as well as memory. With the diversification of our product portfolio, from wire bonding to advanced packaging and also for advanced display, we believe that we have created a new value across assembly markets. This has increased capital intensity of assembly in mitigating well-known strengths and challenges. It also offers multi-year industry expansions through diversified core competencies, both through organic and inorganic executions. Well, we have been winning new businesses, increasing market share, with our leading-edge logic assemblies, as well as core wire bond and electronic assembly markets. Similar themes to previously I mentioned, we have very strong intimate customer engagements. We have very strong track record in solving customer and industry challenges. Let's look at the core competencies of where we are at for electronic assembly first. If you look at the picture on the right, the graph shows that this is a $3.5 billion market, total electronic assembly equipment TAM. We are currently targeting a SAM, a served market of close to about $800 million of capital equipment for advanced electronic assembly. Now the electronic assembly is going through a lot of innovation recently. We acquired Assembléon in 2015. It was previously a PE-owned asset, we acquired for about close to 1x of its revenue in Fiscal Year 2015. We have fully integrated competencies to enhance advanced packaging offerings, as well as enter into the Mini LED and MicroLED that Bob has previously highlighted. The development team have strong competencies and developed good offerings to expand beyond the acquisition since then. With that, we have developed very strong competencies in high-speed motion control, placement accuracies, throughput efficiency, and better cost of ownership for our end customers. Now, moving on, I'd like to mention about our core market in terms of the tech change, and what's driving that outlook. As you can see the picture on the right, the wire bonder utilization, it's going close to up to what, 90+%, 95% utilization. We have a very high utilized install base of over 200,000 wire bonders in install base. With such high utilization, it creates yearly, roughly maybe about 30,000 bonders. With that increase in demand from utilization and semi growth, we believe that this will continue to propel our core markets in wire bonding. Importantly, what's driving that high utilization rates and the high semi content? What we have seen is that the chip modules traditionally has been a single chip that's wire bonded with multiple wires with different I/O points. We've seen that in the last couple of years, when multi-chip has evolved exponentially because of more functionality, more packaging, more higher density into a package. We see that wire bond has increased tremendously in the applications for multi-chip modules. As a result, with 1 trillion semiconductors to be assembled, we see that as a 6.5% drilling of a 10-year CAGR. We see that this is also giving us above average growth anticipated through 2023. Again, many, many different reports that we've seen, eight in 10 semi packages are using wire bonding as the core interconnect technology. When multi-chip is evolving and being introduced into this packaging, we are also seeing that the same adoption of high utilization of wire bond for multi-chip. Why do we lead now? We continue to have very strong R&D investments, commitments to continue our roadmaps for our core markets in wire bondings. Our customer engagements are very strong. We have leading customers especially in Asia, in the U.S., in Europe and Southeast Asia. We are not only just offering wire bonding solutions, we're offering the wire bond together with the consumables, as well as process know-how and process development. All this packaged together gives a customer a really good end-to-end solutions in terms of developing new applications on wire bond. As a summary, our incumbent positions is we have high productivity, we have high portability, and we have high flexibility. Imagine when you're inside a factory, when there are 100s or maybe up to 1,000 of wire bonders sitting hour by hour, customers would always want to make sure that machines are running at very high utilization rate, minimize any interruptions to the productions in terms of downtime. Uptimes are very high, and importantly is portability, right? Take the same program that you have developed in one wire bonder and multiply it to, you know, 10, 20, 100 bonders without even tweaking any of the process parameters. This is a huge advantage for K&S. Another growth that's driving is the 5G. 5G has enabled a lot of push for higher data rates. We start to see that in 5G, that the demand will continue to increase, as shown in the picture on the left. Right. You can see that the CAGR of this is growing at 77% between 2021 and 2023. At some point, half of the new smartphones is all going to be 5G enabled, which means that the amount of semi content will continue to increase. We anticipate it's going to grow of about 4% annually. How is K&S involved in the solutions, right? There's more silicon content means new modems, new RF, new millimeter wave antennas require base stations on top of 4G, higher silicon intensity, higher bandwidth networking. On the end device, on the palm of your hand, you want to have more photos, more videos, higher resolutions, and faster data rate transferring between the data centers and your phones or your mobile phones, and also, b etter edge devices. If you look at what is the content of this package level, high transistor density, we believe that Moore's law, as it evolves to the last two to three decades, has reached a point where transistors, we call, basically fail to maintain the pace of cost and performance. As we all seen, the Moore's law in the last several decades in terms of the transistor density improvements, but then t he cost and performance are not so far, I would say, matched to the level of that scale. What we've seen that even with 5G now, that advanced assembly or the introduction of advanced packaging is becoming more and more important in terms of driving solutions. At the same time, maintaining those cost benefits are relative to the performance requirements. We see that the multi-chip in 2018, only 20% of advanced package requirements is in general semi. In 2021, we begin to see close to 40% of wire bonded multi-chip module, it's increasing the amount of content. We anticipate by in the next couple of years that 50% of general semi, 50% of that will be multi-chip or multiple systems in package level in the package. This will continue to drive high adoption of wire bonder for multi-chips also as the transistor continue to scale to smaller ones and package density continues to increase. Complexity will increase through value propositions, extends growth across the portfolio. It reduces the reliance on unit-driven capacity additions, and of course, complexity creates a higher value for K&S because we have a differentiations in our product and solutions, which creates higher margin opportunities, s o K&S solutions in general provides new level of complexities for both high volume and very high leading edge applications. Let's move on to the high volume semiconductor segments. We have connected devices in 5G, IoT, RF, stacked memories like NAND and high bandwidth memory, and also for all kinds of optical and sensing, the camera modules, the CMOS, image sensors, the face recognition, and also for security. Again, a lot of focus is on systems and package and multi-chip modules, stack die, wafer level packaging. The picture on the bottom shows a suite of solutions from ConnX ELITE, PowerFusion's, Premier, CIF solutions, AiFlex, and our high-end wire bonder, RAPID series. This basically creates a huge broad portfolio supporting the multi-die package growth. Now, for the leading edge, the three segments in the market is mobile, mobility, the application processes in it, the sensors in it, AI, the edge devices, machine learning, and of course, data center, rich in content and driving high data rates through heterogeneous packaging, silicon photonics. This is basically driving, you can see the pictures below of all the different advanced packaging solutions, the thermo compression bonding, the wafer level packaging, hybrid bonding, high-accuracy flip chip and, of course, lithography for the back end. This is the pictures on the bottom that shows the suite of solutions. The picture on the left is a high-accuracy flip chip. The p icture on the center, it's a APAMA, which is a very leading edge for application processes bonding, the APAMA series. LITEQ is for the lithography for advanced packaging. The Fluxus, this is a next generation thermo compression bonding and, o f course, working towards a hybrid bonder in the coming years, for even a high accuracy placements, for example, like copper-to-copper bonding. Now just a very simple schematic of silicon photonics in line with what Mostafa has also mentioned about the Co-Packaged. The Co-Packaged Optics assembly, it's a very complex assembly that requires basically transceivers that integrates together with the silicon chips. You would see a chip set with basically a fiber optics unit integrated into the modules. I'm not going to go into some of the details, but basically the Co-Packaged Optics requires the PIC as well as the EIC, which is a photonics, as well as electronics integrated circuit integrated into the chip. What's driving the differentiations in our K&S solutions is a thermal compression bonding together with our formic acid or Fluxus solution. All right. This basically creates a winning formula for customers who's trying to create a package for Silicon Photonics, and what we call it in short, Co-Packaged Optics. This is going to grow at 40% CAGR in the next couple years. This is another great applications that K&S provides a differentiated solutions. All the different applications on the right shows crypto, leading edge modules, AI display drivers, advanced logics, chiplets. These are all kind of driving more to advanced placements like the flip chip and thermal compression bond. Now, I conclude my presentation for the general semi as well as the memory and the complexities of the future trends of packaging. I'd like to now turn the time to Lester, who's going to conclude in today's presentation. Thank you. To summarize today's presentation, we provided many specific structural drivers to support a higher level of sustainable growth and profitability. Throughout our multiple end market opportunities, we expect roughly 1/3 of our fundamental baseline revenue growth to stem from a normal level industry growth based on historical trends. Another 1/3 of the incremental baseline to be driven by above average growth opportunities. These are apparent within automotive transitions, advanced display, and emerging opportunities such as silicon photonics and Co-Packaged Optics. The final 1/3 of sustainable revenue growth comes from an ongoing strategy to take shares in areas including the electronic assembly market, which provides a significant untapped opportunity. Also, transitions for leading-edge assembly are accelerating demand for our new equipment solutions, providing opportunities to gain share. Chan Pin has provided several specific cases that show how we are already actively winning at the turn within this ongoing transition. Additionally, we anticipate a period of multi-year industry expansion to continue as we move into the data era. 5G-related semiconductor demand is independently anticipated to drive demand for over 100 billion semiconductors by 2023, representing 4% of semiconductor growth per year, or nearly two-thirds of the historical industry growth rate. This provides an opportunity to realize the same average profitability and cash flow generation levels that are inherent in our 2024 sustainable target model today. We believe these are all very rational and achievable targets as we look ahead. We have demonstrated a track record for setting and achieving realistic targets, both on a quarterly and long-term basis, including our prior 2018 Analyst Day targets, and also through a very dynamic operational and supply chain environment over the past 18 months. We are very optimistic of the future based on our positioning. There are several industry and company specific dynamics that provide paths for upside, which we also want to clarify. At the industry level, overall demand for semiconductors may exceed the historical 6.5% growth rate due to a more rapid global 5G rollout and growth in connected end devices. Also, the ongoing impact of work and play at-home trends and better macro conditions can also support a longer industry expansion period. Next, semiconductors nationalism across the U.S., Europe, and Asia is driving additional investment in wafer fabrication. This is causing wafer starts to be high in 2023. This desire to have local control of the semi space is likely to continue into the long term and will ultimately help drive chip ASPs down, supporting a high demand. Ultimately, localization of the semiconductor market creates inherent efficiencies or a need for higher capital spending. These trends all provide local industries more confidence, supporting more consistent level of capital equipment spending, and capacity expansion. These national focuses within the semiconductor industry are also directly driving above-average wafer starts into fiscal 2023, which will lead to further assembly expansion. At our company level, we also see potential upside in assembly complexity, advanced display, and future inorganic growth prospects. First, within assembly complexity, faster transitions at the leading edge and also within the high-volume semiconductor markets can materially impact demand for our solutions. Additionally, our baseline methodology is inherently backward-looking and may not fully value the current incremental baseline improvements stemming from the recent acceleration of multi-die assembly. Next, a faster industry transition towards locally dimmable backlighting and initial volume MicroLED panel production can provide significant upside in the out years. Additionally, faster and broader adoption of LumenX throughout fiscal 2022 may also increase our outlook and potential for outperformance over the longer term. Finally, our strong balance sheet provides additional optionality for direct shareholder returns through our consistent dividend and opportunistic repurchase program. Additionally, we continue to be extremely selective on M&A as we prioritize our higher ROI organic initiatives. Although we now have more access to interesting prospects based on our new market reach and positioning. We continue to take a very prudent and long-term approach to capital allocation, which has added significant value at the shareholder level over the longer term. To summarize, we have a broad set of systems and solutions that are pervasive throughout the semiconductor industry. In many cases, we are the dominant leader within the market we serve due to our deep-rooted competencies from an engineering, operational, and supply chain management standpoint. We are directly involved in several exciting industry transitions, providing the opportunity for market share gains and higher growth. K&S is an empowered, accountable, performance-driven organization that has demonstrated the ability to drive industry change, innovation, and transition into new markets. We have now reached a new level of profitability, which we believe is very sustainable and creates a platform for long-term market outperformance. With that said, I would now like to turn it back to Joe for the Q&A. Thank you, Lester. For today's question and answer section, we'll be prioritizing questions from our covering analysts, and we'll open the floor to other publishing analysts as time permits. Operator, please poll for questions. Thank you. At this time, we'll be conducting a 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 your line is in the question queue. You may press star two if you would like to remove your question from the queue. The first question today comes from Krish Sankar of Cowen & Co, company. Please proceed with your question. Yeah. Hi. Thanks for taking my question, and congrats, Fusen and team, on a very informative and clear presentation, r eally appreciate it. I have two questions. The first one is for Lester. Thanks for the new target model and the baseline revenue, how to think about it. I'm kind of curious, obviously, you're exceeding your prior numbers. If I do the math, is the way to think about it, if you're going to be earning over $6 at $1.5 billion, on the upside, every $500 million incremental revenue is a little over $2 in earnings power increment. Is the way to think about it? On the flip side, given that there is a cyclical aspect to this growth industry, how should we think about the downside to your model? Then I had a follow-up. Krish, I think there is some cyclicality, but we believe that at this level, the earnings are much more sustainable. Again, we're talking about an average of $1.5 billion over the next couple of years. There will be ins and outs, just as there always is, particularly driven by supply chain constraints in the near term, wafer starts as well as other things in the supply chain, semiconductor supply chain. As far as upside, as I think I indicated at the end of the presentation, we do believe there is upside to the $1.5 billion, and this is based from, again, in the faster adoption of MicroLED Mini LED, you know, adoption of a LumenX tool, as well as additional market share gains from SMT, as well as the assembly complexity, which could be higher than we thought. Again, as I indicated, there's macro factors, as in semiconductor, what we call nationalism, as people build alternate supply chains, which will create increased demand for capital equipment. I think there is definitely upside. There will be some cyclicality. Again, we're going with the $1.5 billion average. I'm not sure we would actually say it's downside. I think we would become very split up rational and reasonable in terms of the way that we built them from the baseline. Got it, got it, s uper helpful. Lester, and then a question for Fusen or Chan Pin, you knwo, y our customer presentation, most of us are familiar with it's super interesting. I'm kind of curious, what do you guys do for inventory? Are you in the EMIB or Foveros packaging technology? On a one longer-term question, Mostafa mentioned out supply chain convergence, and we saw last year BE Semiconductor do a partnership with Applied Materials on hybrid bonding. Is that something that you would consider where you might have to start working with the front-end folks in the future? Thank you. Hi. Thank you for the question. I think, if you could seen the slide from Tapan's presentation, we're going across multiple devices, across the different platforms, the packaging of platforms as shown in the EMIB Foveros, and so forth. Yeah, we're going across because our machine platforms, it's not specific to a specific product, but it's going across different applications like I highlighted in my presentation earlier. That's the first question that I answered about going across, and as they evolve, our machine will continue to also evolve in terms of high accuracies and higher productivity and so forth. The second question about partnerships in terms of hybrid bonding or copper-to-copper. We're looking at all possible opportunities right now, including the internal investigations and development in terms of our product line. Right now, I would say that since the roadmap is a little further out, we are investigating in our current roadmap first, before we look external for partnerships, and so forth. The requirements right now have been quite challenging in terms of some of the things, but I think our platform is ready to be able to meet some of the challenges ahead. Those are the answers to your two questions. Thank you very much. Thank you, t hat is super helpful, and informative. Thank you. The next question is from Craig Ellis of B. Riley Securities. Please proceed with your question. Yeah. Thanks for taking the question, and congratulations, guys, not only on a very insightful presentation today, but on the prior target financial model execution. I wanted to start with a higher-level question. It kind of builds on one that Krish asked, and I'll direct it to you, Lester. It looks like the SAM is increasing dramatically from here to fiscal 2024. I think in many of K&S' markets right now, you've got about 50% share. As the SAM grows to $5.5 billion as depicted in some of the slides, it would seem that would imply much more than $1.5 billion in annual revenue. Can you just talk about the expected share that the company would have in some of its growth assumptions, and is the company willing to quantify the potential upside that you might see to the $1.5 billion annual? Well, thanks for the question, Craig, and as I answered to Krish, we do see there's upside. At this point, I think it's challenging us to quantify a specific number on the upside. There is, again, in the different vectors that we've talked about in advanced display and automotive, in general semi on the complexity. Again, we do believe we'll continue to hold market share in our tier markets in wire bonding and also in advanced display, where we are a leader. We are going to try to gain more market share in SMT, which we don't have as dominant market share, as well as MK is going to grow market share in APS with the introduction of new products. We do believe we're going to continue to drive growth across all businesses. In terms of quantifying specific upside, again, we're very comfortable that we'll average $1.5 billion. We think there is definitely potential, as I indicated, to do better than that in the out years. As a specific quantification, I think as we move towards that, you know, into 2024, 2025, we'll provide more guidance to you and our investors. Thanks for that, Lester. Then my second question is a margin question, I'll direct it to you, and i t's twofold. One, there's a 400-basis point gap between where we are now and the target model. If we broke that down, what are the three or four main drivers that close that gap? Then on the operating margin side, it looks like the target model or the baseline model is affirming operating margin levels where we are now. Can you just talk about why more of that incremental gross margin leverage wouldn't fall through to operating margins? In terms of gross margins, I think, the improvement is based on a few things. I think we're going to optimize our core business, and we're going to focus on designing for manufacturing, savings, as well as for margin expansion. Also, we believe there's going to be growth in a higher margin in our core business, specifically in our, what we call the HP segment of our core business of wire bonding. In addition, our new products such as in advanced packaging as well as definitely in advanced display, those are also high margin products. If you put all those together, I think that's where the bridge is from the current gross margin towards the target gross margin, as I indicated. Why wouldn't more of that gross margin expansion fall through to operating margin, Lester? Well, I think right now, we perhaps being a little bit conservative. I think OpEx will grow over time, but even at these levels, these are incredible operating margins that we're delivering based on historical, you know, what K&S has delivered before. I think there's also definitely upside on the operating margin side. Yeah, no doubt they are very impressive versus history. If I could, I wanted to ask a more technical question to Chan Pin. When I look at the automotive commentary around battery capability, clear historic strength in cylindrical and planned there in the future, but I believe really only one volume OEM is using that technology, and love to see that you're going into prismatic and that's led by European OEMs. There's another battery type, which is pouch, and does the company have any opportunity to move into pouch? If not, why not? As you look at the growth over the next four to five years between prismatic and cylindrical, how does the growth break down? Because it seems like that's a pretty important driver for the company. Okay, thanks for the question, j ust to give some comments about cylindrical first, right? Cylindrical has largely had one key adopter in the market, but we have also seen that adoption has also gone into Asia. As one of my points in my presentation, I highlighted that we've recently qualified with a North Asian customer of ours, and it went into also cylindrical battery, right? That adoption not just stayed in one, but we continued also in Asia, and we see a couple more also trying to get into cylindrical. Cylindrical offers a faster charge of highest current density across, especially when you're trying to drive a very short current in a short time, I think, t he cylindrical offers a better offering than the prismatic. Prismatic, as I highlighted, is our strategic direction to going to a larger market in terms of the European segment of the market, and that we see across all the automotive guys in Europe going across into prismatic. This is why I focus a lot about the East European countries, because that's where also the springboard for all the Western Europe geography for prismatic electric vehicles. I think pouch is a combo of, I would say, it's a mid-range between the prismatic versus cylindrical. We do believe that the prismatic line, I'll show you one of the pictures I have, can be adapted to the pouch. First, I think we're taking a step-by-step approach first, and we're very solid right now in cylindrical. We're going into prismatic. We're going to establish ourselves in prismatic, and then as and when the engagement comes, we will adapt or modify our line towards the pouch line. That's the strategy, right? We believe that the next big growth will come from prismatic because of the adoption of prismatic into the European car manufacturers, and pouch maybe some parts of Asia, and also some parts of the Europe side. In general, I think overall, battery, whether cylindrical, prismatic, or pouch, offers very high significant growth, as I've shown in my slide about growing easily a couple X, right? 2X to 8X in one lifecycle. Guys, that's really helpful. I'll jump back in the queue because I have a few more. Thanks. Thanks. The next question is from Charles Shi of Needham & Company. Please proceed with your question. Hi, thanks for taking my question. I want to follow up on the gross margin side. When you look at your capital equipment versus APS, that the mix definitely plays a role in terms of the gives and takes in gross margin. I looked at your APS incremental revenue target. It kind of implies by 2024, APS is going to be like in 17% of the total revenue, a little bit lower than where you were in 2019 and 2020, probably in line with 2017, 2018. A lot of the margin upside has to come from the product. You did mention how there is a little bit of upside from wire bonding, a little bit of advanced packaging, a little bit of advanced display. In terms of these three, can you kind of rank order where the gross product margin upside are going to come from? I have a follow-up. Well, thanks, Charles. As I said, part of it is product mixer that always is with us, but also part of it is that we're making a concerted effort to kind of optimize the core business. Again, in terms of both the new products and the next generation of our core products, we're really designing in terms of to maximize the margin right from the start. As well as we're working very closely with our supply chain, as well as with our operations to, again, maximize the margin going forward, even at this elevated ramp level. Charles, I think your question, we believe advanced display probably have the highest potential for the margin improvement. Thank you, Lester and Fusen. That's very helpful. My next question is about advanced display. First off, a really clean product roadmap, r eally appreciate the presentation there. I have a question. I think you're talking about $5.5 billion TAM or SAM by fiscal 2024, 9% compound advanced display, which is about more or less $500 million TAM, but you're only targeting $150 million incremental revenue for all the LED of a fiscal 2021 based off Mini LED. I believe it's $70 million to $80 million. I think if my math is right, you're seeing a little bit less than 15% market share in advanced display. Is that right? What about the upside opportunity? What they are? Thank you. Charlie, yes. I think next, I would say 18 months will be critical for us to see more clearly. If we are able to push our LumenX to the market as fast as possible and then get a very good result, then Pixelux, we have a first-in-the-market advantage if we can establish this in LumenX. LumenX, the process capability is much, much higher than Pixeluxm, right. You hear our processes including sorting, mixing, and re-pitching on top of final placement, and with a much, much faster speed. In the future, for example when a direct emission type come in, I think in 2024, just one big display need to move 25 million die. If we are able to demonstrate leadership, at this moment, I think they are not clear, leader except Canon in Pixelux. If we are able to demonstrate this in next, I would say 18 months, then I would think the upside will be much faster. At this moment, I think that's what we provide into our forecast. As you calculate, probably roughly about 15% of market shares. It can go higher if we demonstrate our advantage and we're accepted by our customers. Yeah, o kay, t hank you. That's all my question. Thanks. The next question is from Tom Diffely of D.A. Davidson. Please proceed with your question. Yeah, good morning. Thanks for the question, and hopefully, Lester, this is your last model question. I did have a question on the operating side of the model. Historically, you've had a very consistent model with fixed and variable and a lot of operating leverage. Curious, when you look at the growth drivers going forward and the product mix that it might entail, do you see any kind of meaningful change in the level of R&D or SG&A spending you need to do to support these new products? Well, Tom, there will be an increase in R&D spending going forward, but not a significant increase, I would say. Again, as I said, we look at each project very carefully. Even though most of the projects are accretive, we generally try to tackle products with the highest growth potential and the higher ROI. I think there will be an increase in R&D as we look at the different vectors, as we identify new opportunities. I would not say there's going to be a huge ramp-up in terms of R&D. Also, as I think we've indicated before, as we move into new products, we also have R&D falls off, products that we've already developed. For example from Pixelux into LumenX as well as from some of our core wire bonders, the lower cost bonders now the R&D is now going into the more advanced bonders. Okay, great. That's good to hear, t hen Fusen, maybe the follow-up question on the display side. When you look at LumenX, how do you think that rolls out over the next few years? Do you have to wait for a certain technology inflection point among the panels? Or is it just a matter of working with customers to get into their current product lines? Then ultimately, do you see this as cannibalizing the Pixelux market as the main product, or do you see a world where they both coexist side by side? Thanks. Okay. I think you have two questions, m aybe your first question, I think the market is waiting for us right now for the Mini LED. This is currently backlighting. Its the biggest market. I think at this moment, it really depend on our ability to roll out the LUMINEX. I think the industry, maybe a little bit of MicroLED infrastructure need to be totally set up. Mini LED probably will be moved much faster beyond 2024. From now, I think the growth rate is going to be huge. I think it just really depend on our own capability. Your second question is Pixelux, w e believe from now, maybe the 18 months or maybe next two years will be the mixture of Pixelux and the LUMINEX, b ecause the productivity of LUMINEX will be much higher. At a certain point, I think we will see clear advantage of LumenX, and the revenue probably will be more toward the LumenX. I personally believe probably a year, maybe 18 months from now, in the next one year, probably we have a mixture of Pixelux and LumenX. For example, I think this year we give a guidance over $60 million to $80 million for the Pixelux line. Next year, we probably will also pull about the same number. In the next few quarters, we will ship a multiple system to multiple customers. We do expect, in our data part over next year, we probably will start to get sizable PO for LumenX, and LumenX probably will go faster from there. Okay, great, t hat's helpful color. I want to thank everybody for just a nice presentation this morning, g reat information, t hank you. Thank you. The next question is from Christian Schwab of Craig-Hallum Capital Group. Please proceed with your question. Hey, guys. I thought that was a great explanation of the company and the future growth drivers. The model, I think, has been hashed over quite a bit. Fusen, I just have a big picture question for you. As we highlight, and Intel Corporation has come and highlighted as well, just the importance of back-end equipment supplier seems to be, in my opinion, much more important than it has ever historically, whether that's advanced packaging with more chiplet and package or customer adoption of Silicon Photonics and carbide or Mini LED and MicroLED. With that as a background, Fusen, how do you see the back end evolving over the next two to five years? Certainly seems like more capabilities and scale and M&A would be very logical. Do you have enough going on with all the opportunities that you highlight, we're just going to keep our head down and do what we're doing? I'd be curious, year three to five, your kind of outlook as well as what you think could happen in the industry. Thanks. Okay. I do believe our back end will create more and more input than low, the whole food chain. Most now try to increase our transistor density, just by shrink in the front end. Everybody know it's more and more difficult to scale down just by physically shrink. In the back end, we can increase transistor density in a back end level. It's much economical, right? I do believe back end will grow actually faster than previous years, and that will been my prediction and supported by everybody's belief, so t hat's the first question. The second question, you're talking about M&A. There's a lot M&A we cannot control, but we try to look at all the possibilities. I think at the end, the internal capability is the most, right? We need to assume this should be a default to stay alone. I think this got to be our default, continue to increase our core competency, continue to invest in the adjacency. When the opportunity come in terms of M&A, you know, we got to do the best for shareholder, right? We will keenly discuss with the board to make the best decision. I think at this moment, we have very strong R&D team, very experienced. I think a roadmap we see clearly, and I think we will continue to do very well by staying alone. We will entertain any possibility. Great. Thank you, guys. That was my only question. Thank you. Thanks, Christian. The next question is from Craig Ellis of B. Riley Securities. Please proceed with your question. Yeah, thanks for taking the question, and I wanted to start just by coming back to LumenX, and I know there's been considerable discussion in the Q&A, but I wanted to take a different view and see if I could get Bob's input on some of the comments he made about customer engagements. Bob, can you provide us any color on where that's happening regionally or the type of customer and as you're working with different types of customers, and any color on where you've got more confidence in nearer term to intermediate term ramp pacing? You probably can't name them specifically, but any qualitative color would be helpful there. Hi. Yeah, sure, I can talk a little bit about that. We have customers in Asia, Taiwan, and China primarily, that are LED manufacturers and display manufacturers. We also have European customers. Actually, our list of customers that are sort of queuing up to evaluate this technology is longer than we can actually deal with at this point. We're picking and choosing the largest, and the companies that are already into working into the displays for Mini LEDs that want to increase their productivity, lower the cost of ownership, over what they can presently achieve. We also are trying to align with customers that have roadmaps that move them into MicroLED. Generally, we have a short list of a number of customers that are trying to do both. Does that cover your question? Yeah, that's really helpful, Bob. Thanks for that. For my first follow-up, I wanted to bounce back to Chan Pin. One of the things that surprised me in one of the slides that you showed was that for multi-chip packaging, the rate of growth will slow as we look ahead. It was 20%, I think that was in either 2018 or 2019, 40% now. We doubled, and we're going up to 50% by 2024. Yet we've got multi-chip as the strategic imperative for TSMC, Samsung, and Intel. I thought we might see a higher number than 50%. The question revolves around why we wouldn't see something that's higher than that. Is it that we're just so highly penetrated already in smartphones that other applications just don't have the units that can push us above 50%, or would we more likely see something above 50%? If we did, what are the implications for growth and margins given the company's strengths in this area? Okay. Multi-chip is definitely one of the key strategic growth areas for K&S, as I have shown in my slides about the growth from 20% to 40% to 50%. You're right there's a potential, there's a lot of upside in the potential greater than 50% in terms of how transistors or how packages are being compact and developing the multi-chip, right? There is also a transition from wire bonded to advanced packaging, right? Either flip chip or thermal compression bonding or eventually maybe hybrid bonding. That transition will also create opportunities for K&S, as shown in my advanced packaging portfolio with flip chip, flip thermal compression, and eventually at some point, hybrid bonding, right? Those will create opportunities for growth, will also create opportunities for margin growth. Right now, we see, like I mentioned in my slide, eight out of 10 devices are wire bonded. A lot of that is growing on multi-chip, because today multi-chip on wire bond continues to be the most mature, proven, and cost-effective platform. We still have a very clear roadmap in terms of our wire bond technologies to address some of the accuracies and fine pitch needed. That roadmap will continue, but at the same time, we also have the flip chip, and the advanced packaging platforms to be able to enable opportunities of that transition from wire bonded to flip chip or advanced packaging. I think both will offer growth opportunities as well as margin opportunities for both, for K&S, as we continue to invest in our roadmap for our products. Yeah, Craig. That's great. Thank you. Go ahead. Yeah. I think it can be a 50%, can be 60%. We just cannot put everything at a very high number. I do believe the ball bond now is still the most dominant way to do interconnect, and it's the most economical way. We have a high confidence. If the market shares got to continue to increase, we will be the one to grab the opportunity. That's helpful, t hanks, guys, and m y last one's for MK. MK, you talked about the consumable growth opportunity within APS, and my question is, what's the attach rate, what's the share that the company has in that area now? As we look forward towards realizing $60 million of growth, what needs to happen with attach rates and share to drive consumables portion of growth towards $60 million incremental? Thank you. Okay. The consumable business is a very competitive business, where we have quite a bit of competitors. As I mentioned in my slide, we invest quite a bit on R&D. This will help us to always drive new product or better product to improve the cost of ownership. At the same time, we also invest in the Suzhou factory. In terms of factory automation, in terms of new manufacturing technology to make our parts cheaper. I think this will all help us to be more competitive against our competitors in the market. I think our capillaries, wedges for the wire bonder will all be the key driver to help us to drive this business. I hope I answered your question. Got it, t hanks for that, guys, a ppreciate all the color. Thanks, Craig. As a reminder, if you would like to ask a question, please press star one on your telephone keypad. Our next question is from David Duley of Steelhead Securities. Please proceed with your question. Thanks for taking my question. I have a couple. One of the assumptions I think you made in your base business is unit volume growth of around 6.5%. If unit volume growth comes in higher, let's say, I'll just pick up a number, let's say 10%, is there a way that you can help us quantify what the base business would be under that scenario? Dave, again, it's very hard to quantify. I mean, we say the assumption 6.5%, right? I think in certain of our product lines, we believe that the unit growth will be higher, for example, in automotive as well as in display. I mean, I would not say it's a straight line. If it's 6.5, it goes to 10, we double. I think if it's at 10, there's definitely upside, right? I mean, you look at what the growth has been over the last. year or so as we catch up on under-investment, you saw what it did in terms of our revenue growth. Again, I don't really think that we're in a position to give you a specific metric to tie to if it was 10%, obviously, it will act as an accelerant in terms of our revenue. Maybe I answer very quick in given way. In 2018, actually, we predict the model we have, we will achieve $1.2 billion, I think in three years. Unfortunately, I think we have two down year, 2019, and we had a downturn start with the U.S.-China tension, then we had pandemic. Amazingly, 2021, it's turned out the market has the ability to correct itself. For a period of time, I think, is significant below the average. It will be picked up at another year, r ight? If you look at it, I think that 6.5 probably can be higher. For example, from 6.5 to maybe 7.5 is possible. In the long term, probably average of 10%, maybe it's not so easy to be sustainable, ri ght? That's my answer. Thank you. I noticed in the presentation, the new LumenX tool essentially addresses three production steps, I think, final placement and sorting and pitch adjustment. Four, right four. Versus the current tool, which only does the final placement. How much does that add to the TAM, adding those 2 additional steps that the new tool addresses? This is Chan Pin here. Let me answer the question, David. If you look at the slide, there is the sorting, mixing. Let me just explain very simple. This tool can address front-end die manufacturer who makes LED dies. That's one segment on the market, a nd that market, we believe, is about $100 million SAM right now at this point, an estimate. And then the other market, which is the panel makers, that puts the final die on the final panel, whether it is a glass or substrate, and that's a $200 million SAM right now, we estimate. We used to be able to address the back end, which is the panel, but now this tool expands its applications for both die manufacturer as well as panel manufacturer. The SAM basically increases from just the back end to both the die end as well as the back end. Okay, and then j ust two financial questions. First, with the gross margin kind of optimization strategy that you're working through. I understand higher volumes and new products are going to help the gross margins. I imagine there's some other things going on, like an introduction of new lower cost tools and whatnot. I'm just curious when, in the core business, will there be a new lower cost bonder coming, and what's the timing of that? The final question from me is just with $6 in earnings that you're kind of presenting here, could you just help me understand what the cash flow from operations might be with that level of earnings? Congratulations, this has been a great presentation, w e really appreciate the information. Well, thanks, Dave. Sorry, can you repeat your last question? I didn't quite catch it. Sorry, just a little bit of static online. You said it was $6 EPS. What was the question? Sorry. Yeah. If you produce $6 in earnings like you're presenting in your presentation, what is the cash flow from operations on an annual basis roughly going to be? The tax? Cash flow from operations. Oh, cash flow. Cash flow. Well, I think the cash flow will be over $350 million, approximately, if we do it at that level. Then as far as your first question is concerned, I think we always introduce multiple products in our core business. Also, it's true, we do try to drive the margins up through design as well as other things. I think going forward there will be an introduction of both a more advanced ball bonder as well as a more cost-efficient ball bonder. I think the timeline for that will be the next 12 months, 18 months. Yeah. Correct. Yeah. Thank you. I think the roadmap, as I said, right, both core wire bonding and advanced packaging, we have concurrent roadmaps driving either efficiency or miniaturization or finer pitch, right? advanced packaging is, like I mentioned, a flip chip going at a couple microns, like three microns, and then thermal compression bonding about two microns. Then eventually when we get into a one micron space, potentially a hybrid bonding, right? Each of these has addressed a roadmap that's aligned to the back-end semiconductor roadmap. Thank you. That concludes the Q&A session of today's call. I will now turn the call back over to Joseph Elgindy for closing comments. Thank you, Brock, and thank you all for joining today's call. Please don't hesitate to reach out directly for any clarifications regarding today's presentation. We look forward to providing future updates as we continue to set new targets and achieve new milestones. Brock, this concludes today's presentation. Thank you.