Advanced Energy Industries Inc Citi Global TMT Conference

Great. Thanks, Elizabeth, and thanks everyone for joining us. Just a reminder today, any statements we make are subject to a number of risks. You can find those risks articulated in our recent SEC filings. Also, we reported our Q2 earnings on August 3rd of this year. Today we will not be providing any updates to the guidance provided at that time.

Yeah, thanks, Elizabeth. I think what we saw in the first half was an increase in our customer confidence over the next two years, and also an increase in their forecast. We saw a number of new orders that came in that gave us a lot of confidence in the second half, as well as in 2027. One of the actions we took in response to those increased forecasts was to accelerate the opening of our new factory in Thailand. In Thailand, we are just opening a 500,000 sq ft facility, and we will be launching that facility with our largest customers, semiconductor, as well as our largest customers in data center. That is a very good sign for future demand.

Yeah, so what we're being told by our customers is they have good visibility for the next two years. That's a lot of visibility. They're also telling us they're constrained by available fab basis. As their customers are able to accelerate the build-out schedule for new fabs for advanced memory, advanced logic, that's an upside for our customers, upside for us.

Yeah. I think it's interesting phenomena. We think we're shipping to demand and not into inventory. I also look at how we manage our supply base. We learned a lot during COVID about managing our supply base. We divided the suppliers into two categories, the reliable ones and the not so reliable suppliers. If you're a not reliable supplier, we'll typically put in place more inventory to give us some insurance against execution challenges. I think the same phenomenon happens with our customers. I think Advanced Energy is perceived as a reliable supplier. We've got very strong factory infrastructure. We're successful in managing our supply chain. So they have to put in place less inventory as insurance for shortfalls from Advanced Energy. So I think we're in the good supplier category, and therefore our customers don't need to put in place a lot of inventory.

Yeah, so in our semi business, we typically operate on a just-in-time model with our largest customers. There is no lead time per se, but we know what they need and when they need it, and we are able to keep up with that.

Yeah. We're very enthusiastic about the customer acceptance of our new technologies, namely eVoS, eVerest, and NavX. Where those technologies are used is leading edge. Today we're being designed into sub-two nanometer applications logic, for instance. We expect those products to become more meaningful from a revenue standpoint next year. We're already seeing shipments this year, but compared to the overall shipments we make, they're not that meaningful. We're very encouraged at the adoption of these technologies, leading-edge logic and leading-edge memory, because they're necessary to maintain throughput and yield at these very advanced geometries.