ChipMOS Technologies Inc (IMOS) 2022 Q4 法說會逐字稿

Greetings, and welcome to the ChipMOS Fourth Quarter and Full Year 2022 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.

您好，歡迎來到 ChipMOS 第四季度和 2022 年全年業績電話會議。 （操作員說明）我現在想把會議轉交給ChipMOS TECHNOLOGIES戰略和投資者關係團隊的G.S.Shen博士來介紹公司的管理團隊。

Dr. Shen, you may begin.

沉醫生，你可以開始了。

Thank you, operator. Welcome, everyone to ChipMOS Fourth Quarter and Full Year 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' website, www.chipmos.com to accompany today's conference call.

謝謝你，運營商。歡迎大家參加 ChipMOS 第四季度和 2022 年全年業績電話會議。今天從公司加入我們的是 S.J. 先生。程，董事長兼總裁；財務與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 Jesse Huang 先生今天也加入了我們的電話會議。 S.J.將主持會議並審查業務亮點並為運營環境提供色彩。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 的網站 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.

在我們開始準備好的評論之前，我們建議您查看我們的前瞻性聲明免責聲明，該聲明在今天的演示文稿的第二頁被稱為安全港通知。提醒一下，今天的電話會議正在錄製中，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，我想把電話轉給我們公司的董事長兼總裁 S.J.誠。請繼續，先生。

Yes. Thank you, G. S. We appreciate everyone joining our call today. 2022 was a year of opportunities and challenges; COVID, inflation and inventory issues impacted all industries and markets. For ChipMOS, we ended 2022 year in a very strong financial position with liquidity. We will remain conservative and continue to monitor the broader trends and inventory levels. We will also remain focused on supporting our customers and driving growth when volumes rebound. In terms of Q4 2022, our Q4 revenue was down 10.8% from Q3 2022 and down 14.2% in 2022 revenue. Q4 gross margin came in at 14.5%, decreased 100 basis points compared to Q3 and decreased 560 basis points for 2022 to 20.9% compared to 2021 with net earnings of TWD 0.22 in Q4 or TWD 4.64 for 2022.

是的。謝謝你，G.S. 我們感謝今天加入我們電話會議的每一個人。 2022年是機遇與挑戰並存的一年； COVID、通貨膨脹和庫存問題影響了所有行業和市場。對於 ChipMOS，我們在 2022 年結束時擁有非常強大的財務狀況和流動性。我們將保持保守，並繼續監測更廣泛的趨勢和庫存水平。我們還將繼續專注於支持我們的客戶並在銷量反彈時推動增長。就 2022 年第四季度而言，我們的第四季度收入比 2022 年第三季度下降 10.8%，2022 年收入下降 14.2%。第四季度毛利率為 14.5%，與第三季度相比下降 100 個基點，與 2021 年相比下降 560 個基點至 20.9%，第四季度淨收益為 0.22 新台幣或 2022 年為 4.64 新台幣。

Reflecting the impact of the challenges I just mentioned, our overall utilization rate in Q4 2022 decreased to 49%. Assembly utilization was at 46% and testing average was 53%. DDIC increased to 53%, driven by rush order and bumping UT level was 41%. Regarding our manufacturing business, our assembly represented 26.6% of Q4 revenue. Testing represented around 22.7% and wafer bumping represented around 17% of Q4 revenue. On a product basis, our DDIC product increased to 33.8%, with gold bumping representing about 15%. Revenue from DRAM and SRAM represented about 15.5% of Q4 revenue. Our mixed signal products represented about 11.2%.

反映了我剛才提到的挑戰的影響，我們在 2022 年第四季度的整體利用率下降到 49%。裝配利用率為 46%，測試平均值為 53%。 DDIC 增加到 53%，受緊急訂單和衝擊 UT 水平的推動為 41%。關於我們的製造業務，我們的裝配業務佔第四季度收入的 26.6%。測試佔第四季度收入的 22.7% 左右，晶圓凸塊佔收入的 17% 左右。從產品來看，我們的DDIC產品增加到33.8%，其中gold bumping約佔15%。 DRAM 和 SRAM 的收入約佔第四季度收入的 15.5%。我們的混合信號產品約佔 11.2%。

As additional color on our business, our memory product revenue was down about 23.2% compared to Q3 2022 and down around 30.7% on a year-over-year basis. Memory products represented about 40.1% of total Q4 revenue. DRAM revenue represented about 15.1% of total Q4 revenue. Total flash revenue represented about 24.6% of Q4 revenue. This was down 14.4% compared to Q3. NAND declined about 4% compared to Q3 and represented about 28.4% of Q4 total flash revenue. Moving on to driver IC-related product revenue. The macro demand picture is still soft, but we benefited from a pickup in rush orders, including gold bumping revenue increased 4.6% compared to Q3 and represented about 48.7% of total Q4 2022 revenue.

作為我們業務的額外顏色，我們的內存產品收入與 2022 年第三季度相比下降了約 23.2%，同比下降了約 30.7%。內存產品約佔第四季度總收入的 40.1%。 DRAM 收入約佔第四季度總收入的 15.1%。閃存總收入約佔第四季度收入的 24.6%。與第三季度相比下降了 14.4%。 NAND 與第三季度相比下降了約 4%，約佔第四季度閃存總收入的 28.4%。接下來是驅動IC相關的產品收入。宏觀需求形勢依然疲軟，但我們受益於緊急訂單的回升，其中黃金沖壓收入與第三季度相比增長 4.6%，佔 2022 年第四季度總收入的 48.7% 左右。

DDIC revenue increased significantly by about 13%, while COF revenue for large panel like TV grew more than 20% and COG for a small panel like smartphone, also increased over 8%. TDDI revenue represented around 15% of Q4 DDIC revenue. Regarding OLED, revenue grew significantly more than 35%, both compared to Q3 and on a year-over-year basis and represented about 9.4% of Q4 DDIC revenue. In the meantime, the automotive portion of our DDIC in Q4 and full year 2022 represented 22% and 20%, respectively, and the automotive portion represented about 15% of 2022 full year OLED revenue.

DDIC 收入大幅增長約 13%，而電視等大面板的 COF 收入增長超過 20%，智能手機等小面板的 COG 收入也增長超過 8%。 TDDI 收入佔第四季度 DDIC 收入的 15% 左右。在 OLED 方面，與第三季度和同比相比，收入增長顯著超過 35%，約佔第四季度 DDIC 收入的 9.4%。與此同時，我們 DDIC 在第四季度和 2022 年全年的汽車部分分別佔 22% 和 20%，汽車部分約佔 2022 年全年 OLED 收入的 15%。

On an end-market basis, revenue from automotive and industrial represented about 20.7% of Q4 revenue, driven by the popularization of automotive panels. DDIC-related products represented to nearly 60% of automotive and industrial. Smartphones and TVs as an end market, accounted about 27% and about 16.3%, respectively. Computing represented just about 6.4% and consumer represented 29.6% of Q4 revenue.

在終端市場基礎上，受汽車面板普及的推動，汽車和工業收入佔第四季度收入的 20.7% 左右。 DDIC 相關產品佔汽車和工業的近 60%。智能手機和電視作為終端市場，分別佔比約27%和約16.3%。計算僅佔第四季度收入的 6.4%，而消費者佔第四季度收入的 29.6%。

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

現在讓我請 Silvia Su 女士回顧第四季度和 2022 年全年的財務業績。西爾維亞，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 30.73 against USD 1 as of December 30, 2022. All the figures were prepared in accordance with Taiwan International Financial Reporting Standards.

謝謝你，S.J.我們介紹中引用的所有美元金額均以新台幣計。以下數字是根據 2022 年 12 月 30 日新台幣 30.73 兌 1 美元的匯率計算得出。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 2022, total revenue was TWD 4,686 million. Net profit attributable to the company was TWD 155 million in Q4. Net earnings for the fourth quarter of 2022 were TWD 0.22 per basic common share or USD 0.14 per basic ADS. EBITDA for Q4 was TWD 1,477 million. EBITDA was calculated by adding depreciation and amortization together with operating profit. Return on equity of Q4 was 2.5%.

參考演示文稿，第 12 頁，合併運營結果摘要。 2022年第四季度總收入為新台幣46.86億元。第四季度歸屬於公司的淨利潤為新台幣1.55億元。 2022 年第四季度的淨收益為每基本普通股 0.22 新台幣或每基本 ADS 0.14 美元。第四季度的 EBITDA 為 14.77 億新台幣。 EBITDA 的計算方法是將折舊和攤銷與營業利潤相加。第四季度的股本回報率為 2.5%。

Referencing presentation, Page 13, consolidated statements of comprehensive income compared to 3Q '22. Total 4Q '22 revenue decreased 10.8% compared to 3Q '22. This reflects the challenges S. J. noted earlier facing all industries and end markets. 4Q '22 gross profit was TWD 680 million, with gross margin at 14.5% compared to 15.5% in 3Q '22. This represents a decrease of 1.0 ppt. Our operating expenses in 4Q '22 were TWD 417 million or 8.9% of total revenue, which is about 8.6% lower compared to 3Q '22. Operating profit for 4Q '22 was TWD 310 million, with operating profit margin at 6.6%, which is about a 1.0 ppt decrease compared to 3Q '22.

參考介紹，第 13 頁，與 22 年第三季度相比的合併綜合收益表。與 22 年第三季度相比，22 年第四季度的總收入下降了 10.8%。這反映了 S. J. 之前指出的所有行業和終端市場面臨的挑戰。 22 年第四季度毛利為 6.8 億新台幣，毛利率為 14.5%，而 22 年第三季度為 15.5%。這表示減少了 1.0 個百分點。我們在 22 年第四季度的運營費用為 4.17 億新台幣，佔總收入的 8.9%，比 22 年第三季度低約 8.6%。 22 年第 4 季度營業利潤為 3.1 億新台幣，營業利潤率為 6.6%，與 22 年第 3 季度相比下降約 1.0 個百分點。

Net nonoperating expenses in 4Q '22 were TWD 130 million compared to net nonoperating income of TWD 403 million in 3Q '22. The difference is mainly due to an increase of the foreign exchange losses of TWD 515 million from the foreign exchange gains of TWD 298 million in 3Q '22 to the foreign exchange losses of TWD 217 million in 4Q '22. The decrease of share of profit of associates accounted for using equity method of TWD 87 million and partially offset by the increase of gain on valuation of financial assets at fair value through profit or loss of TWD 47 million and interest income of TWD 27 million.

22 年第四季度的非營業淨支出為 1.3 億新台幣，而 22 年第三季度的非營業淨收入為 4.03 億新台幣。差異主要是由於 22 年第 3 季度的匯兌收益 2.98 億新台幣增加到 22 年第 4 季度的匯兌損失 2.17 億新台幣，外匯損失 5.15 億新台幣。使用權益法計算的應佔聯營公司利潤減少 8700 萬新台幣，並被按公允價值計入損益的金融資產估值收益增加 4700 萬新台幣和利息收入 0.27 億新台幣部分抵消。

Profit attributable to the company in 4Q '22 decreased 76.9% compared to 3Q '22. The difference is mainly due to an increase of net nonoperating expenses of TWD 533 million, a lower operating profit of TWD 87 million and partially offset by the decrease of income tax expense of TWD 103 million. Basic weighted average outstanding shares were 727 million shares compared to 4Q '21. Total revenue for 4Q '22 decreased 31% compared to 4Q '21. Gross margin at 14.5% decreased to 11.5 ppts compared to 4Q '21. Operating expenses decreased 10.7% compared to 4Q '21. Operating profit margin at 6.6% decreased 13.1 ppts compared to 4Q '21. Net nonoperating expenses of TWD 130 million in 4Q '22 compared to net nonoperating income of TWD 319 million in 4Q '21, which increased TWD 449 million.

與 22 年第 3 季度相比，22 年第 4 季度公司應占利潤下降 76.9%。差異主要是由於營業外淨支出增加 5.33 億新台幣，營業利潤減少 8700 萬新台幣，部分被所得稅費用減少 1.03 億新台幣抵消。與 21 年第四季度相比，基本加權平均流通股為 7.27 億股。與 21 年第四季度相比，22 年第四季度的總收入下降了 31%。與 21 年第四季度相比，毛利率為 14.5%，下降至 11.5 個百分點。與 21 年第四季度相比，運營費用下降了 10.7%。與 21 年第四季度相比，營業利潤率為 6.6%，下降 13.1 個百分點。 22 年第 4 季度非營業淨支出為 1.3 億新台幣，而 21 年第 4 季度非營業收入淨額為 3.19 億新台幣，增加了 4.49 億新台幣。

The difference is mainly due to a lower share of profit of associates accounted for using equity method of TWD 291 million, an increase of the foreign exchange losses of TWD 206 million and partially offset by the increase of interest income of TWD 35 million and gain on valuation of financial assets at fair value through profit or loss of TWD 14 million. Profit decreased 89.1% compared to 4Q '21. The difference is mainly due to a decrease of operating profit of TWD 1,025 million, an increase of the net nonoperating expenses of TWD 449 million and partially offset by the decrease of income tax expense of TWD 212 million.

差異主要是由於採用權益法核算的聯營公司利潤份額減少 2.91 億新台幣，匯兌損失增加 2.06 億新台幣，部分被利息收入增加 3500 萬新台幣和收益增加所抵消以公允價值計量且其變動計入損益的金融資產估值為 1400 萬新台幣。與 21 年第四季度相比，利潤下降了 89.1%。差異主要是由於營業利潤減少新台幣 10.25 億元，淨營業外支出增加新台幣 4.49 億元，部分被所得稅費用減少新台幣 2.12 億元所抵消。

Referencing presentation, Page 14, consolidated statements of comprehensive income. Compared to last year. Total revenue for 2022 was TWD 23,517 million, which decreased 14.2% compared to 2021. Gross margin at 20.9% decreased 5.6 ppts compared to 2021. Our operating expenses in 2022 were TWD 1,825 million, which was up 0.4% compared to 2021. Operating profit margin in 2022 was 13.7%, a decrease of 6.6 ppts compared to 2021. Net nonoperating income in 2022 was TWD 811 million. The difference mainly due to an increase of the foreign exchange gains of TWD 537 million and interest income of TWD 47 million and partially offset by the decrease of share of profit of associates accounted for using equity method of TWD 172 million, an increase of loss on valuation of financial assets at fair value through profit or loss of TWD 85 million.

參考介紹，第 14 頁，合併綜合收益表。與去年相比。 2022年總收入為新台幣235.17億元，較2021年下降14.2%。毛利率為20.9%，較2021年下降5.6個百分點。2022年營運開支為新台幣18.25億元，較2021年上升0.4%。營業利潤2022 年毛利率為 13.7%，較 2021 年下降 6.6 個百分點。2022 年營業外淨收入為新台幣 8.11 億元。差異主要是由於匯兌收益增加 5.37 億新台幣和利息收入增加 4700 萬新台幣，部分被權益法核算的聯營公司利潤減少 1.72 億新台幣、虧損增加所抵消以公允價值計量且其變動計入損益的金融資產估值為新台幣 8500 萬元。

Net profit in 2022 was TWD 3,372 million, which decreased 33.3% compared to 2021. The difference due to a decrease of the operating profit of TWD 2,346 million and partially offset by the increase of net nonoperating income of TWD 338 million and a decrease of income tax expense of TWD 321 million. Net earnings for the year of 2022 were TWD 4.64 per basic common share compared to TWD 6.96 per basic common share for 2021.

2022年淨利潤為新台幣33.72億元，較2021年減少33.3%，其差異是由於營業利潤減少新台幣23.46億元，部分被營業外淨收入增加新台幣3.38億元和收入減少所抵消稅費3.21億元。 2022 年的淨收益為每股基本普通股 4.64 新台幣，而 2021 年為每股基本普通股 6.96 新台幣。

Referencing presentation, Page 15, consolidated statements of financial position and key indices. Total assets at the end of 4Q '22 were TWD 44,943 million. Total liabilities at the end of 4Q '22 were TWD 20,131 million. Total equity at the end of 4Q '22 was TWD 24,812 million. Accounts receivable turnover days in 4Q '22 were 87 days. Inventory turnover days was 74 days in 4Q '22.

參考介紹，第 15 頁，合併財務狀況表和主要指數。 22 年第 4 季度末的總資產為新台幣 449.43 億元。 22 年第四季度末的總負債為新台幣 201.31 億元。 22 年第四季度末的總股本為新台幣 248.12 億元。 22 年第四季度的應收賬款周轉天數為 87 天。 22 年第四季度的庫存周轉天數為 74 天。

Referencing presentation, Page 16, consolidated statements of cash flows. As of December 31, 2022, our balance of cash and cash equivalents was TWD 9,897 million, increased TWD 3,990 million compared to the beginning of the year. Net free cash outflow for 2022 was TWD 818 million compared to net free cash inflow was TWD 956 million in 2021. The difference is mainly due to a decrease of operating profit of TWD 2,346 million, and the increase of cash dividend paid of TWD 1,527 million and partially offset by the decrease of CapEx of TWD 1,634 million. Income tax expense of TWD 321 million, an increase of depreciation expenses of TWD 118 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.

參考介紹，第 16 頁，合併現金流量表。截至2022年12月31日，現金及現金等價物餘額為新台幣98.97億元，較年初增加新台幣39.90億元。 2022年自由現金流淨流出8.18億台幣，2021年自由現金流淨流入9.56億新台幣。差異主要是營業利潤減少23.46億新台幣，以及支付的現金股息增加15.27億新台幣部分被資本支出減少 16.34 億新台幣所抵消。所得稅費用為新台幣3.21億元，折舊費用增加為新台幣1.18億元。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 1,831 million in CapEx in Q4 and TWD 4,919 million in CapEx in 2022. The breakdown of CapEx in Q4 was 4.6% for bumping, 50.9% for LCD driver, 17% for assembly and 27.5% for testing. Depreciation expenses were TWD 1,166 million in Q4. Depreciation expenses were TWD 4,752 million in 2022. As of January 31, 2023, the company's outstanding ADS number was approximately 4.4 million units, which represents around 12.1% of the company's outstanding common shares.

參考介紹，第 17 頁，資本支出和折舊。我們在第四季度的資本支出中投資了新台幣 18.31 億元，在 2022 年的資本支出中投資了新台幣 49.19 億元。第四季度的資本支出細分為凸塊 4.6%、LCD 驅動器 50.9%、組裝 17% 和測試 27.5%。第四季度折舊費用為新台幣 11.66 億元。 2022 年折舊費用為新台幣 47.52 億元。截至 2023 年 1 月 31 日，公司已發行 ADS 數量約為 440 萬股，約占公司已發行普通股的 12.1%。

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。我現在將電話轉回給我們的主席 S.J. 先生。程，我們的展望。請繼續，先生。

Thank you, Silvia. We are in a solid position entering 2023. We have the strong balance sheet and liquidity needed to support our customers and long-term growth. In the near term, however, a lot of uncertainty remains around global inflationary pressures, macro weakness and inventory levels. So we are taking a more conservative approach with our CapEx budget in 2023 than in prior years. We plan to carefully invest in green energy, building re-layout and construction, quality improvement, automation/AI and R&D. We are not looking to add capacity, but we'll be able to move quickly when the market rebounds.

謝謝你，西爾維婭。進入 2023 年，我們處於穩固的位置。我們擁有支持客戶和長期增長所需的強大資產負債表和流動性。然而，在短期內，全球通脹壓力、宏觀經濟疲軟和庫存水平仍存在許多不確定性。因此，與往年相比，我們對 2023 年的資本支出預算採取了更為保守的方法。我們計劃謹慎投資綠色能源、建築重新佈局和建設、質量改進、自動化/人工智能和研發。我們不打算增加產能，但我們將能夠在市場反彈時迅速採取行動。

As part of this strategy, we are working with our customers and retain flexibility in the OEM price to the improvement of the utilization rate. In our memory product, we expect the business will continue to be impacted by the factors I mentioned earlier. And in DDIC, automotive panel demand has remained stable and just slightly down compared to other DDIC products. We're also seeing some demand improvement in specific products. For example, OLED is gradually rebounding, despite revenue will be impacted by the fewer workdays in Q1 and inventory adjustments. However, according to the current industry situation and customers' feedback, we expect Q1 will be the bottom with operating momentum expected to gradually rebound from Q2, and we think memory product would be later than DDIC and mixed signal products.

作為該戰略的一部分，我們正在與客戶合作並保持 OEM 價格的靈活性以提高利用率。在我們的內存產品中，我們預計業務將繼續受到我之前提到的因素的影響。而在DDIC中，車用面板需求保持穩定，與其他DDIC產品相比略有下降。我們還看到特定產品的需求有所改善。比如OLED，雖然收入會受到Q1工作日減少和庫存調整的影響，但正在逐步反彈。但根據目前的行業形勢和客戶的反饋，我們預計Q1將是底部，經營勢頭有望從Q2開始逐步回升，我們認為內存產品將晚於DDIC和混合信號產品。

Finally, our Board approved another dividend. This reflects our balance sheet strength, strong market position and our focus on building shareholder value. Pending shareholder approval at our May AGM, we will distribute TWD 2.3 per common share.

最後，我們的董事會批准了另一筆股息。這反映了我們的資產負債表實力、強大的市場地位以及我們對建立股東價值的關注。在我們 5 月的年度股東大會上等待股東批准，我們將分配每股普通股 2.3 新台幣。

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。我們現在可以提問了。

(Operator Instructions) Our first question comes from Angela Dai from Credit Suisse.

（操作員說明）我們的第一個問題來自瑞士信貸的 Angela Dai。

Could you provide OSAT price guidance for DDIC and memory product in 1Q '23?

您能否提供 23 年第一季度 DDIC 和內存產品的 OSAT 價格指導？

As S.J. mentioned in our prepared comments, we are working with our customers to help support them in this challenging period. We are taking this on a customer-by-customer basis and retaining some flexibility in the OEM price with the improvement of the utilization rate for some rush orders with volume.

作為 S.J.在我們準備好的評論中提到，我們正在與客戶合作，幫助他們度過這個充滿挑戰的時期。我們在逐個客戶的基礎上採取這種做法，並隨著一些批量加急訂單的利用率提高，在 OEM 價格上保持一定的靈活性。

Next comes from [Stanley Vaughn] from [SinoPac Securities].

接下來來自【永豐證券】的【Stanley Vaughn】。

Could you provide more some color on your 2023 revenue outlook under the condition of better DDIC business visibility than memory starting from 2Q?

從第二季度開始，在 DDIC 業務可見性比內存更好的情況下，您能否提供更多關於 2023 年收入前景的顏色？

As you know, the industry continues to face several headwinds with macro softness and overall uncertainty. We will continue to work with customers and closely monitor the demand and inventory situation. According to the current industry situation and customers' feedback, we expect Q1 will be the bottom with operating momentum expected to gradually rebound from Q2. Due to the earlier correction, DDIC should rebound more quickly than memory product.

如您所知，該行業繼續面臨宏觀經濟疲軟和整體不確定性等諸多不利因素。我們將繼續與客戶合作，密切關注需求和庫存情況。根據目前行業形勢和客戶反饋，我們預計一季度處於底部，經營勢頭有望較二季度逐步回升。由於較早的調整，DDIC 應該會比內存產品反彈得更快。

For full year 2023, we expect 1H '23 VS 2H '23 would roughly be the reverse of 2022 1H with 57% VS 2H with 43%. However, it would really be dependent on customers' inventory digestion progress. That said, as I mentioned earlier on the call, there are areas where we will prudently invest other than capacity. These are tied to increasing operating efficiency, green energy, quality improvement, automation/AI, R&D and building re-layouts, et cetera. These are areas that make good business sense and do not require any capacity expansion.

對於 2023 年全年，我們預計 1H '23 VS 2H '23 與 2022 年 1H 57% VS 2H 43% 大致相反。但是，這實際上取決於客戶的庫存消化進度。也就是說，正如我之前在電話會議上提到的，除了產能之外，還有一些我們將謹慎投資的領域。這些與提高運營效率、綠色能源、質量改進、自動化/人工智能、研發和建築重新佈局等相關。這些領域具有良好的商業意義，不需要任何容量擴展。

Meanwhile, we will take the chance to increase automotive and industrial segments business scale to optimize our product mix.

同時，我們將藉機擴大汽車和工業板塊的業務規模，優化我們的產品結構。

Could you comment on those capacity expansions, which were canceled or postponed last year? Would they be executed this year or not? And how about the CapEx and depreciation in 2023?

您能否評論一下去年取消或推遲的那些產能擴張？今年會不會被處決？ 2023 年的資本支出和折舊情況如何？

For CapEx, there are areas where we will prudently invest other than capacity. These are tied to increasing operating efficiency, green energy, automation/AI, building re-layouts and maintenances, et cetera. After that, we would not expand new capacity without take-or-pay contracts. Therefore, we estimate the CapEx would be around 15% of 2023 total revenue.

對於資本支出，除了產能之外，我們還會謹慎投資其他領域。這些與提高運營效率、綠色能源、自動化/人工智能、建築重新佈局和維護等息息相關。之後，我們不會在沒有照付不議合同的情況下擴大新產能。因此，我們估計資本支出將佔 2023 年總收入的 15% 左右。

Could Ms. Silvia Su provide more color about OpEx and tax rate of 2023?

Silvia Su女士能否提供更多有關2023年OpEx和稅率的顏色？

Firstly, comment on your previous question about depreciation. 2022 depreciation was about 4.8 [VATD], and we expect 2023 will be similar to this level. As for OpEx, we managed to control OpEx between 6% to 8% of revenue. However, it really depends on revenue scale. And then the tax rate, we expect it would be around 18% to 19%, which also depends on the unrealized gains and losses.

首先，評論一下您之前關於折舊的問題。 2022 年折舊約為 4.8 [VATD]，我們預計 2023 年將與該水平相似。至於運營支出，我們設法將運營支出控制在收入的 6% 到 8% 之間。但是，這實際上取決於收入規模。然後是稅率，我們預計會在18%到19%左右，這也取決於未實現的損益。

Could you share the current situation of wafer bank for customer comparing to previous quarter? And what does the movement look like?

您能否為客戶分享與上一季度相比晶圓銀行的現狀？運動是什麼樣的？

For DDIC, the wafer bank level has been reducing pretty significantly. We also see some new product wafers in. Only little improvement for memory at this moment.

對於DDIC，wafer bank的水平一直在下降。我們也看到了一些新產品晶圓。目前內存方面只有很小的改進。

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

謝謝，我不會在隊列中顯示任何其他問題。我想把電話轉回給 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。我會把發言權轉回給 S.J. 先生。 Cheng 的任何結束評論。

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.

謝謝大家參加我們的電話會議。如果您有任何問題，請給我們的 IR 團隊發送電子郵件。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.]

[現場通話中的口譯員用英語對這份成績單進行了陳述。]