A：The expected revenue for the second quarter is between $1.75 and $1.85 billion, a 7% sequential increase at the midpoint. The projected gross margin is between 14.5 and 15.5%, with operating expenses of approximately $120 million, including a gain on the sale of real estate of about $20 million. The full year 2026 effective tax rate is expected to be around 20%, resulting in net income between $105 and $130 million, and an EPS between 42 and 52 cents.

A：The 2026 CapEx estimate remains at 2.5 to $3 billion. The allocation is as follows: 65% to 70% for facilities expansion, including phase 1 of the Arizona campus; about 30% to 35% for HDFS test and other advanced packaging capacity; and the remaining spend for RD and quality programs.

A：The focus and discipline in executing on strategic pillars position the company well to continue generating improved financial results and sustained shareholder value. Revenue growth is driven by acceleration in computing and strong growth in advanced automotive.

A：Despite customer supply delays and pricing pressures, the company anticipates that pricing, utilization, and product mix will support a lift in gross margins. Specifically, they expect gross margins to rise in the mid to high teens for the second half of the year due to an increase in utilization and the ramp of the compute segment, particularly in the data center, which will improve product mix.

A：The ramp for the compute device (CP device) will start in the current quarter but will not have a meaningful revenue contribution until the third quarter. It is expected to continue ramping beyond the third quarter into 2027 and beyond.

A：The expected impacts of equipment depreciation on the investment community include understanding the dynamics and timing of larger depreciation expenses related to equipment, as opposed to building depreciation, which has a longer cycle. This will have a significant impact as more equipment is brought in.

A：The projected timeline for the start of cost impacts from the new facility is in 2027, which is expected to begin as an operating expense (Opex) and then transition to cost of goods sold (COGS) and subsequently affect margins. Revenue is expected to be modest in 2028, increase in 2029, and scale meaningfully in 2030, subject to customer qualification processes.

A：Factors to consider when assessing the viability and potential growth of the CPU business include the successful ramp of the new product, sustaining and increasing market share beyond 2026, engagement with other customers in more advanced package types, broadening customer engagements with platforms like Swift technology and co-ossification, and the continued engagement of customers with technologies like 2.5D silicon interposers.

A：Utilization is trending positively, with a year-over-year improvement in Q1 to the low 70s from the 50s of the prior year, and a slight increase expected in Q2. There is additional space to improve utilization in some factories, with monitoring of space being very close prior to the US factory coming online in Korea. In Vietnam, migrating some Sip products from Korea to Vietnam is providing more room for growth. The new facility in Arizona will provide headroom for continued ramping, and aggressive expansion is planned in Korea with significant demand anticipated throughout the year and into the next.

A：A new CP product is being worked on with a customer, but the development cycle is still early, so it will take some time before it is more advanced.

A：Several dynamics could affect the growth numbers, including the opportunity to grow beyond the initial projection and constraints in the supply chain and packaging space.

A：The growth expectations for communication markets have been revised upward from single digits to low double digits due to stronger performance than anticipated in the first half of the year.

A：The anticipated growth for the second half of the year is slightly less than the first half, mainly due to a very strong cycle in the first half and the risk of a different dynamic in the second half.

A：There is no specific mention of concerns from customers regarding build intensity in the back half of the year; however, the conversation suggests a focus on the rebalancing of supply chains and the strength of PC sales.

A：The spending on CapEx is expected to follow a pattern of approximately 30% in the first half and 70% in the second half of the year.

A：The company is seeing a strong growth of over 20% for the full year in their market, with a tripling on the advanced side for the data center and muted growth on the mainstream PC side related to auto industrial dynamics. There is also strong growth in the advanced segment, while the mainstream is more muted. The company anticipates comms growth to potentially approach double digits, with a lot of variability due to memory impacts and customer discussions around supply chain options and prioritization. Material supply impacts are causing a range of around 50 million to 100 million for one material, with similar levels expected in the second quarter.

A：The operating margins for the business in the Arizona facility are meaningfully higher than the corporate average. For the impact in 28, the company does not provide too much detail, suggesting it will be significant but waiting for an investor day to disclose more. Regarding financing, the company has several options including government incentives like chip grants and a 35% investment tax credit, totaling $2.8 billion in support. They are also working with customers on different forms of support, some already executed and others in discussion. The company has ample liquidity and debt capacity to manage their current and future investments.

A：The factors considered regarding export controls revolve around pricing dynamics influenced by the Middle East situation and commodity pricing, including material and precious metals. Additionally, trade discussions between the US and China on AI products have impacted pricing and have become more normalized for the company. While these factors are being watched closely, the company indicates they are prepared to balance the effects of any acceleration or loosening of restrictions, and they are not a major factor in their current assessment.