TTM Technologies (TTMI) 28th Annual Needham Growth Conference Virtual summary

Company overview and market positioning

• Operates in high-end technology markets, providing advanced interconnect solutions for chips, including PCBs, substrates, and advanced packaging.

• Plays a critical role in megatrends like AI, defense spending, and automation, with 80% of these trends impacting its business.

• Focuses on both commercial and defense sectors, aiming to increase visibility and market presence.

• Projects annual top-line growth of 5–20% and plans to double earnings from 2025 to 2027.

Growth drivers and capacity expansion

• Data center and networking segments, driven by AI, are forecasted to grow over 30% this year, with strong customer engagement and visibility six to nine months out.

• Added 25% capacity in Chinese plants for AI work, utilizing existing facilities and outsourcing to optimize resources.

• Penang facility in Malaysia faces yield and workforce challenges but is improving weekly; not critical for current capacity needs.

• Syracuse, NY campus for defense is on track for volume production in the second half of the year, featuring advanced packaging and Ultra HDI processes.

• Acquired a large Wisconsin facility to support both commercial and defense production, with ramp-up expected in 2026–2027.

End market trends and diversification

• Medical and industrial instrumentation markets are recovering, with about 20% growth and AI-driven applications in robotics and testing.

• Automotive segment remains challenged due to inventory and EV market dynamics, with focus maintained on high-end, niche applications.

• Defense remains the largest market at 45% of sales, split evenly between PCB and advanced modules/systems, with strong backlog and long-term customer relationships.

• Key defense applications include radar, surveillance, and communication systems, with RF technologies as a major differentiator.