ChipMOS Technologies Inc (IMOS) 2021 Q4 法說會逐字稿

Greetings, and welcome to the ChipMOS Fourth Quarter and Full Year 2021 Results Conference Call. (Operator Instructions) I would now like to turn the conference over to Dr. G.S. Shen of ChipMOS TECHNOLOGIES Strategy and Investor Relations team to introduce the management team of the company in conference. Dr. Shen, you may begin.

您好，歡迎參加 ChipMOS 2021 年第四季度及全年業績電話會議。 （操作員指示） 現在會議請南茂科技戰略與投資者關係團隊的沉國勝博士在會議上介紹公司的管理團隊。沉醫生，您可以開始了。

Thank you, operator. Welcome everyone to ChipMOS Fourth Quarter and Full Year 2021 Results Conference Call. Joining us today from the company are Mr. S.J. Cheng, Chairman and President; and Ms. Silvia Su, Vice President of Finance and Accounting Management Center. We are also joined on the call today by Mr. Jesse Huang, Spokesperson and Senior Vice President of Strategy and Investor Relations.

謝謝你，接線員。歡迎大家參加茂茂2021年第四季度及全年業績電話會議。今天加入我們公司的是 S.J. 先生。程先生，董事長兼總裁；財務會計管理中心副總裁Silvia Su女士。發言人兼戰略與投資者關係高級副總裁黃杰西先生也參加了今天的電話會議。

S.J. will chair the meeting and review business highlights and provide color on the operating environment. After Silvia's review of the company's key financial results, S.J. will provide our current business outlook. All company executives will then participate in an open Q&A session. Please note, we have posted a presentation on the MOPS and also on the ChipMOS website, www.chipmos.com, to accompany today's conference call.

S.J.將主持會議並回顧業務亮點並提供運營環境的信息。在 Silvia 審查了公司的主要財務業績後，S.J.將提供我們當前的業務前景。所有公司高管隨後將參加公開問答環節。請注意，我們已經在 MOPS 和 ChipMOS 網站 www.chipmos.com 上發布了演示文稿，以配合今天的電話會議。

Before we begin the prepared comments, we advise you to review our forward-looking statements disclaimer, which is noted as the safe harbor notice on the second page of today's presentation. As a reminder, today's conference call is being recorded, and a replay will be made available later today on the company's website.

在我們開始準備評論之前，我們建議您查看我們的前瞻性聲明免責聲明，該免責聲明在今天演示文稿的第二頁上被標記為安全港通知。提醒一下，今天的電話會議正在錄音，今天晚些時候將在公司網站上提供重播。

At this time, I'd like to now turn the call over to our company's Chairman and President, Mr. S.J. Cheng. Please go ahead, sir.

現在，我想將電話轉給我們公司的董事長兼總裁 S.J. 先生。程.請繼續，先生。

Yes. Thank you, G.S. We appreciate everyone joining our call today. I am very pleased with our team's work in 2021. It was a challenging year for everyone in the industry with COVID-19 and supply constraints. We were in position to capture higher volumes of the higher-margin segments we have been expanding. Finally, while Q4 was slightly lower than Q3, this reflects normal seasonal patterns.

是的。謝謝 G.S。我們感謝大家今天加入我們的電話會議。我對我們團隊 2021 年的工作感到非常滿意。由於受到 COVID-19 和供應限制的影響，對於行業中的每個人來說，這是充滿挑戰的一年。我們有能力在我們一直在擴張的高利潤細分市場中獲得更高的銷量。最後，雖然第四季度略低於第三季度，但這反映了正常的季節性模式。

Our business and underlying demand trends remain strong entering 2022, and we are very positive about our business. Revenue and profit of 2021 were both a new record-high of ChipMOS. Let me give you some highlights. First, we achieved the new full year revenue at TWD 27.4 billion, with a 19.1% increase in 2021 revenue. Gross margin increased 460 basis points for 2021 to 26.5% compared to 2020. We achieved a new net earnings record TWD 6.96 in 2021 with a 113.5% increase in 2021 compared to 2020, TWD 3.26 and TWD 1.95 in Q4 EPS. We continue to stress operating efficiency targets and utilization improvement and maintain operating expense at healthy level, and it was at 6.9% of Q4 revenue.

進入 2022 年，我們的業務和潛在需求趨勢仍然強勁，我們對我們的業務非常樂觀。茂茂2021年營收、利潤均創歷史新高。讓我給你一些亮點。首先，我們實現全年新營收 274 億新台幣，2021 年營收增長 19.1%。 2021 年毛利率較2020 年增長460 個基點，達到26.5%。2021 年淨利潤創新紀錄，為6.96 新台幣，2021 年較2020 年增長113.5%，第四季度每股收益為3.26 新台幣，1.95 新台幣。我們繼續強調運營效率目標和利用率提高，並將運營支出保持在健康水平，佔第四季度收入的 6.9%。

The overall utilization was 76% in Q4. It decreased compared to Q3 given the capacity we have been adding, and some wafer tightness which slowed loading rates. We saw this most in assembly utilization, which decreased to 67% in Q4 2021. Testing held at 80%, driven by strong demand from OLED DDIC and automotive applications. Our high-end DDIC test platform remain fully utilized in Q4. DDIC and bumping UT level remained at around 78% and 83%, respectively, despite the nonlinear wafer supply led.

第四季度整體利用率為 76%。考慮到我們一直在增加的產能，以及晶圓片的緊張導致了裝載率的下降，與第三季度相比有所下降。我們在裝配利用率中看到了這一點，2021 年第四季度下降至 67%。在 OLED DDIC 和汽車應用的強勁需求推動下，測試保持在 80%。我們的高端 DDIC 測試平台在第四季度仍然得到充分利用。儘管非線性晶圓供應占主導地位，DDIC 和凸塊 UT 水平仍分別保持在 78% 和 83% 左右。

Regarding our manufacturing business, assembly represented 27% of Q4 revenue, testing represented just over 21% and wafer bumping represented about 20% of Q4 revenue. On a product segment basis, our DDIC, including COG and COF, was about 31.6% of Q4 revenue, with gold bumping representing about 18% of Q4 revenue. Revenue from DRAM and SRAM represented about 16.8% of Q4 revenue. Our flash segment and the mixed-signal segment represented about 23% of Q4 revenue and 10.5% of Q4 revenue, respectively.

就我們的製造業務而言，組裝佔第四季度收入的 27%，測試佔略高於 21%，晶圓凸塊約佔第四季度收入的 20%。從產品細分來看，我們的 DDIC（包括 COG 和 COF）約佔第四季度收入的 31.6%，其中金塊約佔第四季度收入的 18%。 DRAM 和 SRAM 收入約佔第四季度收入的 16.8%。我們的閃存部門和混合信號部門分別佔第四季度收入的 23% 和 10.5% 左右。

In terms of adding color on our business, our memory product revenue was up about 2% on a year-over-year basis and down 12.7% compared to Q3 2021, led by seasonally adjusted and year-end inventory. Memory products represented about 40% of total Q4 revenue. 2021 full year memory revenue was up 19.8%, driven by IoT and consumer electronics demand growth, including gaming and increased assembly price.

在為我們的業務增添色彩方面，我們的內存產品收入同比增長約 2%，與 2021 年第三季度相比下降 12.7%，主要受季節性調整和年末庫存影響。內存產品約佔第四季度總收入的 40%。受物聯網和消費電子產品需求增長（包括遊戲和組裝價格上漲）的推動，2021 年全年內存收入增長 19.8%。

DRAM revenue represented about 16% of total Q4 revenue, down about 14.3% compared to Q3 2021, but up about 2% year-over-year. DRAM was also increased about 4% for the full year 2021. Total flash revenue grew about 5% year-over-year but declined about 11.5% compared to Q3 2021. Flash revenue represented about 23% of Q4 revenue as we benefited from further diversification in the applications we serve, combined with customers' continued restocking. 2021 full year flash revenue grew significantly and was up 33.6%. NOR increased more than 45% and then increased about 12%. This represented about 30% of total flash revenue in 2021.

DRAM收入約佔第四季度總收入的16%，較2021年第三季度下降約14.3%，但同比增長約2%。 2021 年全年DRAM 也增長了約4%。閃存總收入同比增長約5%，但與2021 年第三季度相比下降了約11.5%。閃存收入約佔第四季度收入的23%，因為我們受益於進一步的多元化在我們服務的應用中，結合客戶的持續補貨。 2021年全年閃存營收大幅增長，同比增長33.6%。 NOR 增長超過 45%，然後增長約 12%。這約佔 2021 年閃存總收入的 30%。

Moving on to driver IC-related product revenue, including gold bumping. Our test ASP increased, driven by customers optimizing their product mix and benefited from higher OLED and auto demand. These would have been even higher, but we continue to work through ongoing industry-wide wafer supply bottlenecks from foundry capacity constraints. Despite the supply constraints, our driver IC-related product revenue increased about 6.6% compared to Q4 2020, and was up about 3.3% compared to Q3 2021. Driver IC-related revenue was about 49.5% of total Q4 revenue and was up about 15% in 2021, driven by price increases and our high-end test platform being fully utilized.

繼續推動 IC 相關產品收入，包括金凸塊。在客戶優化產品組合的推動下，我們的測試平均售價有所增長，並受益於 OLED 和汽車需求的增加。這些本來會更高，但我們將繼續努力解決因代工產能限製而持續存在的全行業晶圓供應瓶頸。儘管供應有限，我們的驅動IC相關產品收入較2020年第四季度增長約6.6%，較2021年第三季度增長約3.3%。驅動IC相關收入佔第四季度總收入約49.5%，增長約15 %在價格上漲和我們的高端測試平台得到充分利用的推動下，2021 年將增長 %。

Total DDIC revenue, including COG and COF, was up just over 13% year-over-year and up slightly over Q3 2021, and up more than 18% for the full year 2021 with COF revenue representing about 44% of total DDIC revenue for the full year 2021. TDDI revenue increased more than 11% compared to Q3 2021 and represented 27% of Q4 DDIC revenue. OLED grew significantly by more than 15% compared to Q3 2021 and represented more than 5% of Q4 DDIC revenue.

包括 COG 和 COF 在內的 DDIC 總收入同比增長略高於 13%，比 2021 年第三季度略有增長，2021 年全年增長超過 18%，其中 COF 收入約佔 DDIC 總收入的 44% 2021 年全年。TDDI 收入較2021 年第三季度增長超過11%，佔第四季度DDIC 收入的27%。與 2021 年第三季度相比，OLED 顯著增長了 15% 以上，佔 DDIC 第四季度收入的 5% 以上。

On an end market basis, we benefited from strong demand from automotive electronics applications. Revenue from automotive and industrial increased to 17.5% of Q4 revenue, and grew around 80% in 2021 compared to 2020. Meanwhile, driven by strong demand for car display panels, the DDIC portion of auto grew to more than 1/3.

在終端市場方面，我們受益於汽車電子應用的強勁需求。汽車和工業收入佔Q4收入的比例增長至17.5%，2021年較2020年增長80%左右。同時，在汽車顯示面板強勁需求的推動下，汽車中的DDIC佔比增長至1/3以上。

Smartphones and TV as an end market accounted about 33.5% and about 17% of Q4 2021 revenue, respectively. Computing represented about 6% and consumer represented 26% of Q4 revenue.

智能手機和電視作為終端市場分別佔 2021 年第四季度收入的約 33.5% 和約 17%。計算業務約佔第四季度收入的 6%，消費類業務約佔 26%。

Now let me turn the call to Ms. Silvia Su to review the fourth quarter and full year 2021 financial results. Silvia, please go ahead.

現在請Silvia Su女士回顧2021年第四季度和全年財務業績。西爾維婭，請繼續。

Thank you, S.J. All dollar amounts cited in our presentation are in NT dollars. The following numbers are based on the exchange rates of TWD 27.74 against USD 1 as of December 30, 2021. All the figures were prepared in accordance with Taiwan-International Financial Reporting Standards.

謝謝你，S.J.我們的演示中引用的所有美元金額均以新台幣為單位。以下數據基於截至 2021 年 12 月 30 日新台幣 27.74 兌 1 美元的匯率。所有數據均根據台灣國際財務報告準則編制。

Referencing presentation Page 12, consolidated operating results summary. For the fourth quarter of 2021, total revenue was TWD 6,791 million. Net profit attributable to the company was TWD 1,418 million in Q4. Net earnings for the fourth quarter of 2020 were TWD 1.95 per basic common share or USD 1.41 per basic ADS. EBITDA for Q4 was TWD 2,490 million. EBITDA was calculated by adding depreciation and amortization together with operating profit. Return on equity of Q4 was 24%.

參考第 12 頁的演示文稿，合併經營業績摘要。 2021年第四季度總收入為新台幣67.91億元。第四季度歸屬於公司的淨利潤為新台幣14.18億元。 2020 年第四季度淨利潤為每股基本普通股 1.95 新台幣或每股基本美國存託股 1.41 美元。第四季度 EBITDA 為新台幣 24.9 億元。 EBITDA 是通過將折舊和攤銷與營業利潤相加計算得出的。第四季度股本回報率為24%。

Referencing presentation Page 13, consolidated statements of comprehensive income. Compared to 3Q '21, total 4Q '21 revenue decreased 5.2% compared to 3Q '21. 4Q '21 gross profit was TWD 1,769 million, with gross margin at 26% compared to 27.3% in Q3. This represents a decrease of 1.3 ppts.

參考第 13 頁的演示文稿，合併綜合收益表。與 21 年第 3 季度相比，21 年第 4 季度總收入較 21 年第 3 季度下降 5.2%。 21 年第 4 季度毛利為新台幣 17.69 億元，毛利率為 26%，而第 3 季度為 27.3%。這意味著下降了 1.3 個百分點。

Our operating expenses in Q4 were TWD 467 million or 6.9% of total revenue, which is about a 0.8% improvement compared to Q3. Operating profit for Q4 was TWD 1,336 million, with operating profit margin at 19.7%, which is about a 1.6 ppts decrease compared to Q3. Net nonoperating income in Q4 were TWD 319 million compared to TWD 148 million in 3Q '21. The difference is mainly due to an increase of the share of gain of associates accounted for using equity method of TWD 190 million, and partially offset by the increase of loss on valuation of financial assets at fair value through profit or loss of TWD 12 million and the foreign exchange losses of TWD 8 million.

第四季度的運營費用為新台幣 4.67 億元，佔總收入的 6.9%，比第三季度改善約 0.8%。第四季度營業利潤為新台幣 13.36 億元，營業利潤率為 19.7%，較第三季度下降約 1.6 個百分點。第四季度的營業外淨收入為 3.19 億新台幣，而 2021 年第三季度為 1.48 億新台幣。該差異主要是由於採用權益法核算的聯營公司收益增加了 1.9 億新台幣，但部分被以公允價值計量且其變動計入損益的金融資產估值損失增加了 1,200 萬新台幣和外匯損失800萬新台幣。

Profit attributable to the company in Q4 expanded 1.3% compared to Q3. Basic weighted average outstanding shares were 727 million shares. Compared to 4Q '20, total revenue for 4Q '21 was up 7.6%. Gross margin at 26% increased 1.6 ppts compared to 4Q '20. Operating expenses increased 13.1% compared to 4Q '20. Operating profit margin at 19.7% increased 1.3 ppts compared to 4Q '20. Net nonoperating income of TWD 319 million in 4Q '21 compared to net nonoperating expenses of TWD 278 million in 4Q '20, which increased TWD 597 million. The difference is mainly due to an increase of the share of gain of associates accounted for using equity method of TWD 439 million, a lower foreign exchange losses of TWD 150 million and the interest expense of TWD 5 million.

第四季度公司應占利潤較第三季度增長1.3%。基本加權平均流通股為7.27億股。與 20 年第 4 季度相比，21 年第 4 季度的總收入增長了 7.6%。毛利率為 26%，與 20 年第四季度相比增加了 1.6 個百分點。與 20 年第 4 季度相比，運營費用增長 13.1%。營業利潤率為 19.7%，較 20 年第 4 季度提高 1.3 個百分點。 21 年第 4 季度的營業外收入淨額為 3.19 億新台幣，而 20 年第 4 季度的營業外支出淨額為 2.78 億新台幣，增加了 5.97 億新台幣。差異主要是由於採用權益法核算的聯營公司收益增加了新台幣4.39億元，匯兌損失減少了新台幣1.5億元，利息支出增加了新台幣500萬元。

Profit were up 106.5% compared to 4Q '20. The difference between 4Q '21 and 4Q '20 is mainly due to an increase of operating profit of TWD 176 million and the net nonoperating income of TWD 597 million, and partially offset by the increase of income tax expense of TWD 42 million.

與 20 年第四季度相比，利潤增長 106.5%。 21 年第 4 季度與 20 年第 4 季度的差異主要是由於營業利潤增加 1.76 億新台幣和營業外收入淨額 5.97 億新台幣，並被所得稅費用增加 4,200 萬新台幣部分抵消。

Referencing presentation Page 14, consolidated statements of comprehensive income. Compared to last year, total revenue for 2021 was TWD 27,400 million, which is up 19.1% compared to 2020. As S.J. mentioned, this was a record level for the company. Gross margin increased to 26.5%, up 4.6 ppts compared to 2020. Our operating expenses in 2021 were TWD 1,817 million, which was up 13.5% compared to 2020. Operating profit margin in 2021 was 20.3%, an improvement of 4.8 ppts compared to 2020.

參考第 14 頁的演示文稿，合併綜合收益表。與去年相比，2021 年總營收為新台幣 274 億元，較 2020 年增長 19.1%。提到，這是該公司的創紀錄水平。毛利率增至26.5%，較2020年上升4.6個百分點。2021年營業費用為新台幣18.17億元，較2020年上升13.5%。2021年營業利潤率為20.3%，較2020年改善4.8個百分點。

Net nonoperating income in 2021 was TWD 473 million. The difference mainly due to an increase of the share of gain of associates accounted for using equity method of TWD 773 million, a lower foreign exchange losses of TWD 266 million and the interest expense of TWD 41 million. Net profit in 2021 was TWD 5,059 million, which was up 113.7% compared to 2020. The difference due to an increase of the operating profit of TWD 1,996 million and net nonoperating income of TWD 1,066 million and partially offset by the increase of income tax expense of TWD 371 million. Net earnings for the year of 2021 were TWD 6.96 per basic common share compared to TWD 3.26 per basic common share for 2020.

2021年營業外淨收入為新台幣4.73億元。差異主要是由於採用權益法核算的聯營公司收益增加了新台幣7.73 億元、匯兌損失減少了新台幣2.66 億元以及利息支出增加了新台幣4,100 萬元。 2021年淨利潤為新台幣50.59億元，較2020年增長113.7%。該差異系營業利潤增加新台幣19.96億元及營業外淨收入新台幣10.66億元，部分被所得稅費用增加所抵銷3.71 億新台幣。 2021 年淨利潤為每股基本普通股 6.96 新台幣，而 2020 年每股基本普通股淨利潤為新台幣 3.26。

Referencing presentation Page 15, consolidated statements of financial position and key indices. Total assets at the end of 4Q '21 were TWD 42,523 million. Total liabilities at the end of 4Q '21 were TWD 18,137 million. Total equity at the end of 4Q '21 was TWD 24,386 million. Accounts receivable turnover days in 4Q '21 were 84 days. Inventory turnover days was 53 days in 4Q '21.

參考第 15 頁的演示文稿，合併財務狀況表和關鍵指數。截至 21 年第 4 季度末的總資產為新台幣 425.23 億元。截至 21 年第 4 季度末的總負債為新台幣 181.37 億元。截至 21 年第 4 季度末的總股本為新台幣 243.86 億元。 2021 年第四季度的應收賬款周轉天數為 84 天。 21 年第 4 季度的庫存周轉天數為 53 天。

Referencing presentation Page 16, consolidated statements of cash flows. As of December 31, 2021, our balance of cash and cash equivalents was TWD 5,906 million, increased TWD 1,793 million compared to the beginning of the year. Free cash flow for the year was TWD 956 million compared to TWD 1,559 million in 2020. The difference is mainly due to an increase of operating profit of TWD 1,996 million and depreciation expenses of TWD 459 million, and partially offset by the increase of CapEx of TWD 2,419 million, income tax expense of TWD 371 million and cash dividend paid of TWD 291 million. Free cash flow was calculated by adding depreciation, amortization, interest income together with operating profit and then subtracting CapEx, interest expense, income tax expense and dividend from the sum.

參考第 16 頁的演示文稿，合併現金流量表。截至2021年12月31日，現金及現金等價物餘額為新台幣59.06億元，較年初增加17.93億元。全年自由現金流為新台幣9.56 億元，而2020 年為新台幣15.59 億元。差異主要是由於營業利潤增加新台幣19.96 億元和折舊費用增加新台幣4.59 億元，部分被資本支出增加所抵消。新台幣24.19億元，所得稅費用3.71億元，現金股利2.91億元。自由現金流的計算方法是將折舊、攤銷、利息收入與營業利潤相加，然後從總和中減去資本支出、利息費用、所得稅費用和股息。

Referencing presentation Page 17, capital expenditures and depreciation. We invested TWD 2,685 million in CapEx in Q4 and TWD 6,553 million in CapEx in 2021. The breakdown of CapEx in Q4 was 4.6% for bumping, 34.8% for LCD driver, 25.1% for assembly and 35.5% for testing. Depreciation expenses were TWD 1,155 million in Q4. Depreciation expenses were TWD 4,634 million in 2021.

參考第 17 頁的演示文稿，資本支出和折舊。我們第四季度資本支出為新台幣 26.85 億元，2021 年資本支出為新台幣 65.53 億元。第四季度資本支出細分為凸塊 4.6%、LCD 驅動器 34.8%、組裝 25.1%、測試 35.5%。第四季度折舊費用為新台幣 11.55 億元。 2021年折舊費用為新台幣46.34億元。

As of January 31, 2022, the company's outstanding ADS number was approximately 4.5 million units, which represents around 12.4% of the company's outstanding common shares.

截至2022年1月31日，該公司已發行的ADS數量約為450萬股，約佔該公司已發行普通股的12.4%。

That concludes the financial review. I will now turn the call back to our Chairman, Mr. S.J. Cheng for our outlook. Please go ahead, sir.

財務審查到此結束。現在我將把電話轉回給我們的主席 S.J. 先生。鄭先生對我們的展望。請繼續，先生。

Thank you, Silvia. While we are pleased with our progress and record results in 2021, we think there is still more room for improvement. Despite Q1 is typically impacted by seasonally shortened workday schedules, however, we are cautiously optimistic for Q1 for current healthy customers' demand and supply chain situation.

謝謝你，西爾維婭。雖然我們對 2021 年的進展和創紀錄的成果感到滿意，但我們認為仍有更多改進空間。儘管第一季度通常受到季節性縮短的工作日安排的影響，但我們對當前健康的客戶需求和供應鏈狀況對第一季度持謹慎樂觀態度。

In our memory product, momentum is improving, and we will work to offset seasonality in Q1 with flat to slightly up segment revenue. We expect growth in DRAM against the trend with near-term upside coming from rush orders. We expect healthy demand momentum in NAND as we benefit from customers restocking inventory. And in DDIC, customer momentum is healthy with our high-end test platform fully utilized, led by strong demand from OLED and automotive applications.

在我們的內存產品中，勢頭正在改善，我們將努力以持平或略有增長的部門收入來抵消第一季度的季節性因素。我們預計 DRAM 的增長將逆勢增長，短期上漲將來自緊急訂單。我們預計 NAND 的需求勢頭將保持健康，因為我們受益於客戶補充庫存。在 DDIC，在 OLED 和汽車應用的強勁需求的帶動下，我們的高端測試平台得到了充分利用，客戶動力強勁。

We strategically extended new DDIC high-end test capacity to meet such strong demand and have added take-or-pay contracts with customers for the new test platform. This will help ensure the UT level in the future 3 years of the new capacity added. However, we do expect DDIC revenue to come down a little in Q1 due to the longer lead time of our test platform and shortened workday schedule. On the plus side, we expect to increase our test pricing over the near term based on high-end test capacity remains tight and industry healthy situation.

我們戰略性地擴展了新的 DDIC 高端測試能力，以滿足如此強勁的需求，並為新測試平台增加了與客戶的照付不議合同。這將有助於保證未來3年新增產能的UT水平。然而，由於我們的測試平台的交付時間較長和工作日安排縮短，我們預計第一季度 DDIC 收入將略有下降。從好的方面來說，由於高端測試能力仍然緊張且行業健康狀況，我們預計短期內會提高測試定價。

Finally, reflecting our business strength, positive outlook and focus on building shareholder value, our Board approved another dividend. Pending shareholder approval at our May AGM, we will distribute TWD 4.3 per common share. Operator, that concludes our formal remarks. We can now take questions.

最後，為了反映我們的業務實力、積極的前景以及對股東價值建設的重視，我們的董事會批准了另一筆股息。在等待 5 月份年度股東大會上的股東批准之前，我們將分配每股普通股 4.3 新台幣。接線員，我們的正式發言到此結束。我們現在可以提問。

Thank you. At this time, we will be conducting a question-and-answer session. Our first question comes from Jerry Su from Credit Suisse.

謝謝。此時，我們將進行問答環節。我們的第一個問題來自瑞士信貸銀行的蘇杰瑞。

Please give us more color about your statement. Regarding better memory visibility of DRAM and flash in 1Q '22, why is this segment not impacted by seasonal adjustment as the regular pattern? Besides, could you further quantify the DDIC outlook in 1Q '22 caused by less working day, as mentioned?

請為我們提供更多關於您的陳述的信息。至於22年第一季度DRAM和閃存的內存能見度較好，為什麼該細分市場沒有像常規模式那樣受到季節性調整的影響？此外，您能否進一步量化由於工作日減少而導致的 DDIC 在 22 年第一季度的前景？

As you know, there was a COVID-19 pandemic event in Xian recently. We benefited by receiving some rush orders from customers for commodity DRAM. For DDIC, our high-end test platform remains tight and fully utilized led by strong demand from OLED and automotive applications. We strategically extended new DDIC high-end tester capacity to meet such strong demand and have added 3-year take-or-pay contracts with customers for the new test platform to help ensure the UT level in the future.

如您所知，最近西安發生了一起新型冠狀病毒肺炎（COVID-19）大流行事件。我們受益於收到客戶對商品 DRAM 的一些緊急訂單。對於 DDIC 來說，由於 OLED 和汽車應用的強勁需求，我們的高端測試平台仍然緊張並得到充分利用。我們戰略性地擴展了新的 DDIC 高端測試儀產能，以滿足如此強勁的需求，並為新測試平台與客戶增加了 3 年照付不議合同，以幫助確保未來的 UT 水平。

There should be around a 4% capacity increase in 1Q '22 and a total of 16% to 17% in 2022. In the meantime, the package format is switching to COF from COG for automotive application due to reliability and quality requirements in large and curved displays. We expect to benefit from all of these factors. It can help drive approximately high single-digit Y-o-Y revenue growth company-wide in 2022.

2022 年第一季度產能預計將增加 4% 左右，到 2022 年總計將增加 16% 至 17%。與此同時，由於汽車應用的可靠性和質量要求，封裝格式正在從 COG 轉向 COF。曲面顯示器。我們期望從所有這些因素中受益。它可以幫助推動 2022 年全公司收入同比增長約個位數。

Please give us more color for niche DRAM in 2022.

請給我們2022年小眾DRAM更多的色彩。

Our niche DRAM customers have reserved capacity from specific wafer foundries. Depending on market demand, they will release the wafers for assembly and test at our site. Besides, Korean DRAM players are stepping out of the DDR3 and DDR4 market. This is also good for the supply chain in Taiwan.

我們的 DRAM 利基客戶已從特定晶圓代工廠預留了產能。根據市場需求，他們將在我們的工廠釋放晶圓進行組裝和測試。此外，韓國DRAM廠商正在退出DDR3和DDR4市場。這對於台灣的供應鏈來說也是利好。

Finally, I would like to ask your CapEx and depreciation in 2022.

最後，我想問一下你們2022年的資本支出和折舊。

For 2021, our CapEx was about TWD 6.5 billion, around 25% of annual revenue. For 2022, our CapEx will be about 20% of annual revenue. However, this does not include some planned extra expense in green energy, stable power supply quality of searching for a new factory or land for future shop floor expansion in Northern Taiwan.

2021 年，我們的資本支出約為 65 億新台幣，約佔年收入的 25%。 2022 年，我們的資本支出將約為年收入的 20%。然而，這並不包括一些計劃中的額外費用，包括在綠色能源、穩定供電質量方面尋找新工廠或為未來在台灣北部擴建車間而用地。

As for depreciation, 4Q '21 was about TWD 1.1 billion and it should increase about 3% to 4% quarterly.

至於折舊，21 年第 4 季約為 11 億新台幣，應按季增加 3% 至 4% 左右。

Could you share which business segment will be expanded in Northern Taiwan, as you mentioned?

您提到北台灣將拓展哪些業務領域？

There are 2 portions: 1 for bumping and the other one for mixed-signal and wafer test.

有 2 個部分：1 個用於凸點，另一個用於混合信號和晶圓測試。

And I am not showing any further questions in the queue. I would like to turn the call back over to G.S.

我不會在隊列中顯示任何其他問題。我想將電話轉回給 G.S.

Thank you. I will orally read some questions from foreign institutional investors. The question is asking about automotive and industry applications, which increased so much in Q4, is this from share gains or a demand increase? Will it continue to grow in 2022?

謝謝。我會口頭宣讀一些國外機構投資者的問題。問題是汽車和工業應用在第四季度增長如此之大，這是來自份額增長還是需求增長？ 2022年還會繼續增長嗎？

We are really pleased with our continued growth in auto and industrial. We view this as a multiyear growth driver for the company and are well positioned. We expect that ratio will continue to increase, led by some different product segment customers, including memory, DDIC and mixed-signal as everyone focuses their products on serving automotive applications.

我們對汽車和工業領域的持續增長感到非常高興。我們認為這是公司多年增長的動力，並且處於有利地位。我們預計，在內存、DDIC 和混合信號等一些不同產品領域客戶的帶動下，這一比例將繼續增加，因為每個人都將其產品專注於服務於汽車應用。

That concludes our question-and-answer session. Thank you for participating. I'll turn the floor back to Mr. S.J. Cheng for any closing comments.

我們的問答環節到此結束。感謝您的參與。我將把發言權交還給 S.J. 先生。鄭先生髮表任何結束意見。

Thank you, everyone, for joining our conference call. Please e-mail our IR team if you have any more questions. We appreciate your support. Goodbye.

感謝大家參加我們的電話會議。如果您還有任何疑問，請給我們的 IR 團隊發送電子郵件。我們感謝您的支持。再見。

Ladies and gentlemen, this concludes today's conference call. Thank you for participating. You may now disconnect.

女士們、先生們，今天的電話會議到此結束。感謝您的參與。您現在可以斷開連接。

[Statements in English on this transcript were spoken by an interpreter present on the live call.]

[本筆錄中的英語陳述是由現場通話中的口譯員說出的。]