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ASMPT's AI Inflection: Photonics Triples, a New CEO, and the HBM5 Gambit

Q2 bookings +97.6% YoY, book-to-bill 1.43 — and a leadership handoff at the cycle peak
0522.HK · Earnings Call · 2026-07-29

An Unusual Sign-Off: The CEO Handoff

Robin Ng's final earnings call as ASMPT Group CEO was neither a retirement speech nor a victory lap — it was a passing of the baton at an inflection point. Having helmed the company "at the very height of the COVID pandemic," he signed off on call number 25, handing the reins to Bassel Haddad with an explicit strategic mandate:

I look forward to the company progressing on its transformation journey as it sharpens its focus on the back-end packaging business, a business that has experienced rapid growth over the last few years.

Cher Ng, Group CEO · 2026-07-29
The transformation had been telegraphed all year — the divestment of the leadframe business and the "assessing" of SMT and NEXX, as Ng put it in March. But what's notable is the timing: the outgoing CEO leaves with the company firing on all cylinders. Q2 revenue of USD 630.0 million (+52.1% YoY) beat the top of guidance; Q2 bookings of USD 903.6 million rose 97.6% YoY; book-to-bill hit 1.43, the highest since H1 2021.

Photonics Triples — and the CPO Clock Starts

The clearest evidence of a new growth engine is photonics. “SEMI's pluggable optical transceiver solutions revenue almost tripled year-on-year to approximately USD 75 million in first half 2026.” — Cher Ng, Group CEO · 2026-07-29 This is the pluggable optical transceiver wave powering 800G-and-beyond lines, and it's now one of the largest contributors within the AP portfolio alongside TCB. The question analysts pressed was whether this converts into co-packaged optics. Ng was candid: “CPO is just small at this point in time. We believe, from the packaging equipment standpoint, maybe the inflection point will be somewhere between '27, '28, more likely '28 for CPO.” — Cher Ng, Group CEO · 2026-07-29 The positioning across the CPO value chain — EIC/PIC integration through hybrid bonding and TCB, AMICRA fiber attach — was laid out slide by slide. The CPO market is where ASMPT hopes to compound.

Memory's Patient Chess: HBM4 Delay, HBM5 JEP

On memory TCB, the tape told a confusing story. Gokul Hariharan pointed out that Korea revenue momentum "is down quite a bit year-on-year," a function of HBM tool shipments lagging the orders. Ng confirmed the industry is "taking a little bit more time to meet upgraded HBM4 technical specification" — echoing a delay Katie Xu had flagged in April — but paired it with a genuine new development:

We also have low volume manufacturing with multiple memory makers for HBM4 with our tools... we have entered into a JEP with a key memory player for advanced memory packaging, particularly for HBM5.

Cher Ng, Group CEO · 2026-07-29
That JEP was already foreshadowed in the April call — “in the process of finalizing an evaluation program with a key memory player... enabling our group's technology from memory as a process standard” — Cher Ng, Chief Executive Officer · 2026-04-22 — but its formalization, plus the HBM5 focus, lets ASMPT argue the HBM4 into HBM5 transition keeps TCB relevant past the point where the stack-height limit was feared to cede to hybrid bonding. As Katie Xu had noted back in March, “if we talk about HBM 20-high beyond, then at that point, maybe hybrid bond will be kicking in” — Yifan Xu, Finance or Financial Officer (likely CFO or similar) · 2026-03-04 — an assumption the company is now actively parrying by pushing hybrid bonding solution (Gen-2) for logic while it can extend TCB into HBM5.

Agentic AI: A New Word in the TAM Pitch

Perhaps the most novel narrative insert in this call was agentic AI. Explaining why the TCB TAM can exceed USD 1.6 billion by 2028, Ng cited a shift in AI architecture: “The emergence of this inferencing or agentic AI is driving a shift from GPU-centric design towards a more balanced CPU to GPU configurations, basically increasing CPU content per AI workload.” — Cher Ng, Group CEO · 2026-07-29 More CPUs per workload means more TCB packaging demand — a structurally new TAM expansion argument that didn't exist in the prior quarters' pitch (which leaned on wafer-per-month growth and HBM stack counts). It also dovetails with the broader AI-equipment tape: globally, High bandwidth memory (+2.08x over 360d), HPC data centers and co-packaged optics have been among the strongest advancing clusters, and peer reporters from Samsung to ASM and Tokyo Electron are all riding the same AI data-center demand wave.

The One-Word Summary

What changed at ASMPT in Q2 2026? Photonics went from pilot to engine; memory TCB's narrative shifted from "HBM4 timing" to "HBM5 JEP"; agentic AI entered the TAM calculus; and the CEO baton changed hands at a cycle peak. The long lead time for materials, flagged as the one constraint on Q3 conversion, is a scarcity signal, not a warning. Q3 revenue guidance above consensus — “at midpoint, this represents an increase of 4.8% Q-on-Q and 46.3% Y-on-Y, exceeding current market consensus” — Cher Ng, Group CEO · 2026-07-29 — and Q3 bookings guided to grow high-single-digit sequentially should keep the story genuinely novel, not boilerplate.