ChipMOS Technologies Inc (IMOS) 2022 Q2 法說會逐字稿

Greetings, and welcome to the ChipMOS Second Quarter 2022 Results Conference Call. (Operator Instructions)

您好，歡迎參加 ChipMOS 2022 年第二季度業績電話會議。 （操作員說明）

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.

現在我想請南茂科技戰略與投資者關係團隊的G.S. Shen博士在會議上介紹公司的管理團隊。

Dr. Shen, you may begin.

沉醫生，您可以開始了。

Thank you, operator. Welcome, everyone, to ChipMOS Second Quarter 2022 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. 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's website, www.chipmos.com to accompany today's conference call.

謝謝你，接線員。歡迎大家參加 ChipMOS 2022 年第二季度業績電話會議。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.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，我們在今天的電話會議上發布了有關 MOPS 和 ChipMOS 網站 www.chipmos.com 的演示文稿。

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. We continue to deliver revenue growth, profit expansion and strong financial results. Our strong results show the good job we have been doing so far with the near-term supply chain, global inflation and recent macro end market weakness. In terms of Q2 2022, for ChipMOS even with the headwind of geopolitics, global inflation and end demand noise in Q2, our revenue was up 1.9% from Q1 2022, and was down just 1.9% year-over-year. We are very pleased that gross margin increased 40 basis points to 25.4% compared to Q1 2022.

是的。謝謝 G.S。我們感謝今天大家加入我們的電話會議。我們繼續實現收入增長、利潤擴張和強勁的財務業績。我們強勁的業績表明，我們迄今為止在近期供應鏈、全球通脹和近期宏觀終端市場疲軟方面做得很好。就2022年第二季度而言，對於茂茂來說，儘管第二季度受到地緣政治、全球通脹和終端需求噪音的不利影響，我們的收入仍較2022年第一季度增長1.9%，同比僅下降1.9%。我們非常高興地看到，與 2022 年第一季度相比，毛利率增長了 40 個基點，達到 25.4%。

This remains a priority for us. We are also pleased with our management of operating expenses, which came at 7.1% of revenue for Q2. We have been reducing costs through increased automation and other programs we implemented at our manufacturing facilities. Our multiyear automation efforts have been a key driver of our profitable growth. Finally, net earnings were TWD 1.82 in Q2, with first half EPS of TWD 3.5. This was up about 14% year-over-year. I am very proud of the ChipMOS team for delivering the higher profitability in such a challenging operating environment.

這仍然是我們的首要任務。我們對運營費用的管理也很滿意，第二季度運營費用佔收入的 7.1%。我們一直通過提高自動化程度和在製造工廠實施的其他計劃來降低成本。我們多年來的自動化努力一直是我們盈利增長的關鍵驅動力。最後，第二季度淨利潤為新台幣 1.82 元，上半年 EPS 為新台幣 3.5 元。這一數字同比增長約 14%。我為 ChipMOS 團隊在如此充滿挑戰的運營環境中提供更高的盈利能力感到非常自豪。

Let me give you some additional color on our Q2 performance. Assembly utilization held at 69% in Q2 2022. Testing increased to 75%. Our utilization rates reflect the industry-wide capacity adjustments. Customers are adjusting inventory led by end demand softness. Our high-end DDIC test capacity increased in Q2, while both DDIC and bumping UT levels decreased to 80% and 77%, respectively. Our overall utilization rate decreased to 75% in Q2 2022. Regarding our manufacturing business, our assembly represented 28% of Q2 revenue. Testing represented around 22% and wafer bumping represented around 19% of Q2 revenue.

讓我給大家介紹一下我們第二季度的表現。 2022 年第二季度裝配利用率保持在 69%。測試增加至 75%。我們的利用率反映了全行業的產能調整。由於終端需求疲軟，客戶正在調整庫存。我們的高端 DDIC 測試能力在第二季度有所增加，而 DDIC 和碰撞 UT 水平分別下降至 80% 和 77%。 2022 年第二季度，我們的整體利用率下降至 75%。就我們的製造業務而言，我們的組裝業務佔第二季度收入的 28%。測試約佔第二季度收入的 22%，晶圓凸點約佔第二季度收入的 19%。

On a product basis, our DDIC product was about 32% of Q2 revenue with gold bumping representing about 17%. Revenue from DRAM and SRAM represented about 20% of Q2 revenue. Our flash and the mixed signal products represented about 20.5% and 10.7% of Q2 revenue, respectively. Mixed signal revenue grew more than 10% compared to Q1 2022 as we benefited from strong demand and inventory rebuilding in automotive. As additional color on our business, our memory product revenue was up about 1.5% compared to Q1 2022, and down 7.7% on a year-over-year basis.

從產品來看，我們的 DDIC 產品約佔第二季度收入的 32%，其中金礦產品約佔 17%。來自 DRAM 和 SRAM 的收入約佔第二季度收入的 20%。我們的閃存和混合信號產品分別佔第二季度收入的 20.5% 和 10.7% 左右。與 2022 年第一季度相比，混合信號收入增長了 10% 以上，這得益於汽車行業的強勁需求和庫存重建。作為我們業務的額外亮點，我們的內存產品收入與 2022 年第一季度相比增長了約 1.5%，同比下降了 7.7%。

Memory products represented about 40.5% of total Q2 revenue. DRAM revenue increased 4.8% compared to Q1 and was up about 10% year-over-year. This represented about 19.6% of total Q2 revenue, led by underlying loading increase of commodity DRAM. Total flash revenue represented about 20.5% of Q2 revenue. This was down just 1% compared to Q1 and down about 19% year-over-year, led by macro demand softness. NOR revenue increased around 3.3% compared to Q1 2022, and NAND represented about 27% of Q2 total flash revenue.

內存產品約佔第二季度總收入的 40.5%。 DRAM收入較第一季度增長4.8%，同比增長約10%。這約佔第二季度總收入的 19.6%，主要是由於商品 DRAM 的潛在負載增加。閃存總收入約佔第二季度收入的 20.5%。由於宏觀需求疲軟，與第一季度相比僅下降 1%，同比下降約 19%。與 2022 年第一季度相比，NOR 收入增長約 3.3%，NAND 約佔第二季度閃存總收入的 27%。

Moving on to driver IC-related product revenue, including gold bumping. This business benefited from a price increase in March and the use of added high-end test capacity in Q2, which helped offset the impact of softness in TV panels and smartphones. Our driver IC-related product revenue was slightly up compared to Q1 and was up about 5.2% on a year-over-year basis. Driver IC-related revenue was about 48.8% of total Q2 2022 revenue, thanks to COF short-term and rush orders. DDIC revenue increased 1.3% compared to Q1 and around 6% year-over-year.

繼續推動 IC 相關產品收入，包括金凸塊。該業務受益於3月份的價格上漲以及第二季度增加的高端測試產能的使用，有助於抵消電視面板和智能手機疲軟的影響。我們的驅動IC相關產品收入較第一季度略有增長，同比增長約5.2%。得益於 COF 短期訂單和緊急訂單，驅動 IC 相關收入約佔 2022 年第二季度總收入的 48.8%。 DDIC 收入較第一季度增長 1.3%，同比增長約 6%。

COF revenue significantly increased 11% compared to Q1 and represented more than 40% of Q2 DDIC revenue. TDDI revenue represented about 20% of Q2 DDIC revenue. OLED also grew significantly over Q1 and represented more than 5% of Q2 DDIC revenue. On an end market basis, driven by strong demand for car display panels, more sensor consumption and electronics content, revenue from automotive and industrial represented about 19.7% of Q2 revenue and significantly grew more than 20% over Q1. Smartphones and TVs as an end market accounted about 27.2% and about 17.8% of Q2 revenue, respectively. Computing represented about 8.6% and consumer represented 26.7% of Q2 revenue.

COF 收入較第一季度大幅增長 11%，佔第二季度 DDIC 收入的 40% 以上。 TDDI 收入約佔第二季度 DDIC 收入的 20%。 OLED 也比第一季度顯著增長，佔第二季度 DDIC 收入的 5% 以上。從終端市場來看，在汽車顯示面板的強勁需求、更多的傳感器消費和電子內容的推動下，汽車和工業收入佔第二季度收入的約19.7%，較第一季度大幅增長超過20%。智能手機和電視作為終端市場分別佔第二季度收入的約27.2%和約17.8%。第二季度收入中，計算業務約佔 8.6%，消費者業務約佔 26.7%。

Now let me turn the call to Ms. Silvia Su to review the second quarter 2022 financial results. Silvia, please go ahead.

現在請蘇女士來回顧一下2022年第二季度的財務業績。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 29.74 against USD 1 as of June 30, 2022. All the figures were prepared in accordance with Taiwan-International Financial Reporting Standards. Referencing presentation, Page 12, consolidated operating results summary. For the second quarter of 2022, total revenue was TWD 6,852 million. Net profit attributable to the company was TWD 1,321 million in Q2. Net earnings for the second quarter of 2022 were TWD 1.82 per basic common share or USD 1.22 per basic ADS. EBITDA for Q2 was TWD 2,474 million. EBITDA was calculated by adding depreciation and amortization together with operating profit. Return on equity of Q2 was 21.3%.

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 2022 年 6 月 30 日新台幣 29.74 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。參考演示文稿，第 12 頁，綜合經營業績摘要。 2022年第二季度總收入為新台幣68.52億元。第二季度歸屬於公司的淨利潤為新台幣13.21億元。 2022 年第二季度淨利潤為每股基本普通股 1.82 新台幣或每股基本美國存託股 1.22 美元。第二季度 EBITDA 為新台幣 24.74 億元。 EBITDA 是通過將折舊和攤銷與營業利潤相加計算得出的。第二季度股本回報率為21.3%。

Referencing presentation, Page 13, consolidated statements of comprehensive income. Compared to 1Q '22 total 2Q '22 revenue increased 1.9% compared to 1Q '22. 2Q '22 gross profit was TWD 1,742 million with gross margin at 25.4% compared to 25% in 1Q '22. This represents an increase of 0.4 PPTS. Our operating expenses in 2Q '22 were TWD 485 million or 7.1% of total revenue, which is about a 3.9% improvement compared to 1Q '22.

參考第 13 頁的演示文稿，綜合收益合併報表。與 2022 年 1 季度相比，22 年 2 季度總收入比 22 年 1 季度增長了 1.9%。 2022 年第二季度毛利潤為新台幣 17.42 億元，毛利率為 25.4%，而 22 年第一季度為 25%。這意味著增加了 0.4 個 PPTS。 2022 年第二季度我們的運營費用為新台幣 4.85 億元，佔總收入的 7.1%，比 22 年第一季度提高了約 3.9%。

Operating profit for 2Q '22 was TWD 1,277 million with operating profit margin at 18.6%, which is about a 0.3 PPTS increase compared to 1Q '22. Net nonoperating income in 2Q '22 was TWD 309 million compared to TWD 229 million in 1Q '22. The difference is mainly due to an increase of the foreign exchange gains of TWD 82 million. Share of profit of associates accounted for using equity method of TWD 41 million and the decrease of finance expense of TWD 10 million and partially offset by the increase of loss on valuation of financial assets value through profit or loss of TWD 54 million.

2022 年第 2 季度的營業利潤為新台幣 12.77 億元，營業利潤率為 18.6%，比 22 年第 1 季度增加約 0.3 個百分點。 2022 年第二季度的營業外淨收入為 3.09 億新台幣，而 2022 年第一季度為 2.29 億新台幣。差異主要是由於匯兌收益增加新台幣8,200萬元。按權益法核算的聯營公司利潤應佔新台幣 4,100 萬元，財務費用減少 1,000 萬新台幣，部分被計入損益的金融資產價值估值損失增加新台幣 5,400 萬元所抵銷。

Profit attributable to the company in 2Q '22 increase 7.8% compared to 1Q '22. Basic weighted average outstanding shares were 727 million shares compared to 2Q '21. Total revenue for 2Q '22 decreased 1.9% compared to 2Q '21. Gross margin at 25.4% decreased 2.8 PPTS compared to 2Q '21. Operating expenses increased 4.8% compared to 2Q '21. Operating profit margin at 18.6% decreased 3.5 PPTS compared to 2Q '21. Net nonoperating income of TWD 309 million in 2Q '22 compared to net nonoperating expenses of TWD 19 million in 2Q '21, which increased of TWD 328 million.

與 2022 年第 1 季度相比，2022 年第 2 季度公司應占利潤增長 7.8%。與 2021 年第二季度相比，基本加權平均流通股為 7.27 億股。與 2021 年第二季度相比，22 年第二季度的總收入下降了 1.9%。毛利率為 25.4%，與 2021 年第二季度相比下降了 2.8 個百分點。與 2021 年第二季度相比，運營費用增加了 4.8%。營業利潤率為 18.6%，與 2021 年第二季度相比下降了 3.5 個百分點。 2022 年第 2 季度的營業外收入淨額為新台幣 3.09 億，而 21 年第 2 季度的營業外支出淨額為新台幣 1,900 萬，增加了 3.28 億新台幣。

The difference is mainly due to an increase of foreign exchange gains of TWD 289 million and share of profit of associates accounted for using equity method of TWD 76 million and partially by the increase of loss on valuation of financial assets at fair value through profit or loss of TWD 48 million. Profit was up 2.9% compared to 2Q '21.

差異主要是由於匯兌收益增加了新台幣2.89億元，以及權益法核算的聯營公司利潤增加了新台幣7,600萬元，部分是由於以公允價值計量且其變動計入當期損益的金融資產估值損失增加所致新台幣4800萬元。與 2021 年第二季度相比，利潤增長 2.9%。

Referencing presentation, Page 14, consolidated statements of financial position and key indices. Total assets at the end of 2Q '22 were TWD 43,037 million. Total liabilities at the end of 2Q '22 were TWD 19,262 million. Total equity at the end of 2Q '22 was TWD 23,775 million. Accounts receivable turnover days in 2Q '22 were 77 days, Inventory turnover days was 56 days in 2Q '22.

參考演示文稿，第 14 頁，合併財務狀況表和關鍵指數。截至2022年第二季度末的總資產為新台幣430.37億元。截至 2022 年第二季度末的總負債為新台幣 192.62 億元。 2022 年第二季度末的總股本為新台幣 237.75 億元。 2022 年第二季度應收賬款周轉天數為 77 天，2022 年第二季度存貨周轉天數為 56 天。

Referencing presentation, Page 15, consolidated statements of cash flows. As of June 30, 2022, our balance of cash and cash equivalents was TWD 7,270 million, increased TWD 1,363 million compared to the beginning of the year. Free cash flow for the first half of 2022 was TWD 2,321 million compared to TWD 1,768 million for the same period in 2021.

參考演示文稿，第 15 頁，合併現金流量表。截至2022年6月30日，現金及現金等價物餘額為新台幣72.70億元，較年初增加新台幣13.63億元。 2022 年上半年的自由現金流為新台幣 23.21 億元，而 2021 年同期為新台幣 17.68 億元。

The difference is mainly due to a decrease of CapEx of TWD 671 million, an increase of depreciation expenses of TWD 102 million and partially offset by the decrease of operating profit of TWD 190 million and increase of income tax expense of TWD 39 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.

差異主要是由於資本支出減少 6.71 億新台幣、折舊費用增加 1.02 億新台幣，並被營業利潤減少 1.9 億新台幣和所得稅費用增加 3,900 萬新台幣部分抵消。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 16, capital expenditures and depreciation. We invested TWD 1,401 million in CapEx in Q2. The breakdown of CapEx in Q2 was 3.8% for bumping, 59.6% for LCD driver, 18.9% for assembly and 17.7% for testing. Depreciation expenses were TWD 1,197 million in Q2. As of July 31, 2022, the company's outstanding ADS number was approximately 4.5 million units, which represents around 12.3% of the company's outstanding common shares.

參考第 16 頁的演示文稿，資本支出和折舊。第二季度我們在資本支出上投資了 14.01 億新台幣。第二季度的資本支出細分為凸塊 3.8%、LCD 驅動器 59.6%、組裝 18.9% 和測試 17.7%。第二季度折舊費用為新台幣 11.97 億元。截至2022年7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12.3%。

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，我們的展望。請繼續，先生。

Thank you, Silvia. We are in the right markets for long-term growth. We had a good start to the first half of 2022, and we continue to work with our customers to meet demand. We can be impacted by the broader market issues over the near-term semiconductor supply chain and China COVID lockdowns just like everyone else and the inventory increase reflects global inflation and consumer electronics macro softness.

謝謝你，西爾維婭。我們處於適合長期增長的市場。我們在 2022 年上半年取得了良好的開端，我們將繼續與客戶合作以滿足需求。就像其他人一樣，我們可能會受到近期半導體供應鍊和中國新冠封鎖等更廣泛市場問題的影響，庫存增加反映了全球通脹和消費電子產品宏觀疲軟。

According to this situation, we are conservative on the business and restrained on CapEx investment to reduce depreciation pressure and maintain UT level. In our memory product, we expect the business momentum to remain similar in Q3 to Q2, led by DRAM from new products and niche DDR3. We also expect a gradual production increase and positive demand from flash products driven by normal seasonal demand. And in DDIC, customers are adjusting near-term demand lower because of high TV panel inventory and soft smartphone sales.

根據這種情況，我們對業務持保守態度，並限制CapEx投資，以減輕折舊壓力並維持UT水平。在我們的內存產品方面，我們預計第三季度和第二季度的業務勢頭將保持相似，由新產品的 DRAM 和利基 DDR3 引領。我們還預計，在正常季節性需求的推動下，閃存產品的產量將逐步增加，需求也將呈積極增長。在 DDIC 中，由於電視面板庫存較高和智能手機銷售疲軟，客戶正在調低近期需求。

We are not immune to that macro weakness and DDIC business is in a more obvious correction over the near term. However, OLED and automotive panel demand is also steady and just slightly down compared to other DDIC products. We are seeing some of the pressure offset by customers optimizing product mix and our use of take-or-pay contracts to reflect the near-term market situation and considering the long-term business cooperation of customers, we are moving H2 high-end test capacity to 2023. We have discussed this with customers, and this decision can help reduce depreciation and maintain UT level pressure for both ChipMOS and customers.

我們無法免受宏觀疲軟的影響，DDIC 業務在短期內將出現更明顯的調整。然而，OLED 和汽車面板需求也穩定，與其他 DDIC 產品相比略有下降。我們看到客戶優化產品結構和我們使用照付不議合同來抵消一些壓力，以反映近期市場狀況，並考慮到客戶的長期業務合作，我們正在轉向H2高端測試產能到2023年。我們已經和客戶討論過這個問題，這個決定可以幫助ChipMOS和客戶減少折舊並維持UT級別的壓力。

Finally, reflecting the longer-term positive customer demand growth outlook, ChipMOS through the Invest Taiwan Initiative of the Ministry of Economic Affairs is participating in a government incentive program. I am pleased to report that we got approval for a 3-year investment project in July. This investment plan includes extending manufacturing facilities, capacity debottleneck AI and automation and green energy investments for future business operations. Meanwhile, ChipMOS continues to implement manufacturer process optimization and simplification and automation to maintain the competitive advantage and strength of ChipMOS. Our efforts continue to help further improve product quality, enhance efficiency and reduce costs.

最後，為反映長期積極的客戶需求增長前景，南茂科技通過經濟部投資台灣計劃參與政府激勵計劃。我很高興地報告，我們在 7 月份獲得了一項為期 3 年的投資項目的批准。該投資計劃包括擴大製造設施、消除人工智能和自動化的產能瓶頸，以及為未來業務運營進行綠色能源投資。同時，茂茂不斷實施製造商工藝優化、簡化和自動化，以保持茂茂的競爭優勢和實力。我們的努力不斷幫助進一步提高產品質量、提高效率、降低成本。

Operator, that concludes our formal remarks. We can now take questions.

接線員，我們的正式發言到此結束。我們現在可以提問。

(Operator Instructions)

（操作員說明）

Our first question comes from Jerry Su from Crédit Suisse.

我們的第一個問題來自瑞士信貸銀行的 Jerry Su。

You just mentioned that DDIC business is in a more obvious correction over the near term. Would you give us more color about this statement? Under the condition, how long do you think the correction will take for the DDIC segment and also potential pressure on DDIC and memory?

您剛才提到DDIC業務近期出現較為明顯的調整。您能給我們更多關於此聲明的信息嗎？在此情況下，您認為DDIC板塊的調整需要多長時間，以及DDIC和內存的潛在壓力？

As you know, the near-term semiconductor supply chain inventory increase reflects global inflation and consumer electronics macro softness. Ongoing China COVID-19 shutdowns may also further impact inventory levels. Our DDIC and mixed signal products are not immune to the macro weakness of panels and consumer electronics along with the broader market and obviously corrected. However, memory product could maintain similar momentum in second half.

如您所知，近期半導體供應鏈庫存增加反映了全球通脹和消費電子產品宏觀疲軟。中國因新冠肺炎 (COVID-19) 疫情導致的持續停工也可能進一步影響庫存水平。我們的 DDIC 和混合信號產品無法免受面板和消費電子產品以及更廣泛市場的宏觀疲軟的影響，並且明顯得到糾正。然而，內存產品下半年可能會保持類似的勢頭。

So as we have done in the past, we are taking a conservative view. We currently expect third quarter revenue to be lower than the second quarter with a decline for 2022. Regarding our longer-term outlook, we will continue to update you on our quarterly calls as is our normal process. We serve a diverse space of customers. There are always pockets of the market that are stronger than others.

因此，正如我們過去所做的那樣，我們採取保守的觀點。我們目前預計第三季度收入將低於第二季度，2022 年將出現下降。關於我們的長期前景，我們將按照正常流程繼續向您通報季度電話會議的最新情況。我們為多元化的客戶提供服務。市場上總有一些領域比其他領域更強大。

Our customers reflect this based on their business and customer profile and each individual customer situation is such different. So it is hard to make a broader call on inventory for the end of the year. We are still okay with the price pressure from memory products and DDIC high-end platform contract customers. For noncontract customers, we could waive some prices for specific products in order to gain volume and maintain the utilization level.

我們的客戶根據他們的業務和客戶資料反映這一點，每個客戶的情況都如此不同。因此，很難對年底的庫存做出更廣泛的預測。我們仍然可以承受來自內存產品和DDIC高端平台合約客戶的價格壓力。對於非合同客戶，我們可以放棄特定產品的一些價格，以增加銷量並維持利用率水平。

Would you give us more color about your mentioned DRAM new product and DDR3 higher volume? How about the 2022 CapEx and depreciation?

您能否給我們更多關於您提到的 DRAM 新產品和 DDR3 更高容量的信息？ 2022 年資本支出和折舊怎麼樣？

A couple of customers show better DDR3 visibility. Regarding the new DRAM product, it referred to mass production for customers using advanced DRAM technology.

一些客戶展示了更好的 DDR3 可見性。對於新的DRAM產品，它指的是採用先進的DRAM技術為客戶進行量產。

Regarding 2022 CapEx, it will be near 20% of annual revenue. Q2 depreciation is around TWD 1,197 million and depreciation of Q3 and Q4 would be expected around TWD 1.2 billion.

2022 年資本支出將接近年收入的 20%。第二季度折舊額約為新台幣 11.97 億元，預計第三季度和第四季度折舊額約為新台幣 12 億元。

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 G. S.

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。]