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00:00We want to start off with with the role of PTI in the ecosystem and the role of PTI, specifically in AI. And we've been speaking this morning about how demand for this is real. It's it's continuing to evolve. It's maybe just in the early innings. That also means a lot of things for your business. So Sara, how it works in the context. I think AI is the biggest growth driver for the future. Currently is the integrated association at IBM. We foresee the future. I require more and more chipset integration. So we customer whatever into the meter, more look bigger, louder, vertical size package. So AI is going to be a revolution for the industry. We think we started AI application product and we think the in the future of a package become very big. So the waveform for A.I. is now able to support the climate. So we focus on a panel size A.I., So we think that parasite's going to be the best solution for G7 climate. And so what does that allow then? I mean, we've been talking about going into this sort of post Moore's Law era. How pivotal is it that advanced packaging technology going to be? I think about the use of technology to make the air, I think is not just overnight you can accomplish not so basically needs some basic technology of Billabong and now very popular on the wall behind there appears to be a connection PM and also many many attachment and then connections. So now you may have so much technology to integrate as it. So I think we are very optimistic about the technology, which is there are challenges, but it is also an opportunity for the company. Let's talk about some of the challenges. I think this kind of came up in your most recent report that around around availability of of machines as well. I mean, it was something that was raised because advanced packaging is such a big focus. And you see TSMC, for instance, it has its own technology CO was to wait for on substrate, but how is it impacting your business as well? I think actually our technology has the advantage to it. You now, everybody, you know, call us and call us is our chip of laser hand on substrate, which is a popular term right now. But colas are used in a way which is possible. But our opinion aside that we used the podium, I would make a note of by also. So it's a different technology, but we are more challenging and more difficult. However, in the future, I think our we have a greater advantage because now we emphasize in the package you become very big is a period of only from the input use making a single digit order picture by our partner's eyes. And we can do like five times the of a waveform. So I think that is the very challenging and also very interesting technology, and I think that will be the future trend to become Panasonic, not just call us and that is already in production. Yes. Yes. Yeah. And how do you keep up with demand then? I mean, I know you've got production sites in in Taiwan, in China, in Japan. Do you have enough capacity right now? Are you looking to bring more online? I think the full commission of Higuchi, I think our whole capacity is enough to support our market demand. But in terms of using advanced technology, I think we are far behind, far away from the future climate. And actually the demand is very strong and that very solid. So we anticipate that we're going to have that. We are going to have a heavy capital expenditure, you know, in the coming years to support this. The climate a big decisions then. So when it comes to deciding how you want to spend that money, is it is it money that you want to keep in Taiwan? Are you looking at facilities abroad? What's your what's your plan? Yeah, we are still looking for that because they are some they will cost concern and also the because it is it should be in the package in quite a heavy capital expenditure so it's not easy to make a decision. So we are still in decision making process. Yeah. Certainly as I mean means multi-billion dollar decisions essentially. Is the US one of your considerations? Yeah, us because our TSMC data and also the US tariff, we think all that, but we need the customer to support that. So our customer most affected us customer and also Japan customer. So we are thinking we are not looking for a low cost, low, low, low cost country. We are thinking about the technology which can justify that kind of cost. One of the sort of issues that you hear about or questions you hear about, particularly in Taiwan for companies that are looking to move to the US. And there is that push that comes not just from the US but maybe from the Taiwan side as well is is around labor and there's that concern maybe the right people on there may be the cultural differences this week for instance. So last week we had the raids, for instance, on the Korean plant, the battery plant as well. And in the US. I mean, is that is that a challenge that you could foresee? Yes, I think there may be. I think it would be a great challenge because I think the US and Japan example, they did not invest a lot in Eastern semiconductor, no matter in foundry or back end. But suddenly it's going. Many people will jump in. There will be a serious engineering labor shortage because most of our Terran climate is engineering. So that is their worry. However, I think the US people to US Terran most our we are educated and it should be very easy to. We do have to accept that those are two grandiose kind of technologies. So from that point of view, I don't see a problem.

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PTI Chairman on AI-led Business Demand

DK Tsai, Chairman of PTI, shares how AI is creating the need for new packaging solutions, and how the business is looking at new countries for expansion, including the US. He speaks exclusively on the sidelines of Semicon Taiwan with Annabelle Droulers on "Bloomberg: The China Show." (Source: Bloomberg)

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