ChipMOS Technologies Inc (IMOS) 2024 Q1 法說會逐字稿

(interpreted) Greetings, and welcome to the ChipMOS first quarter 2024 results conference call.

（翻譯）大家好，歡迎參加南茂茂2024年第一季業績電話會議。

(Operator Instructions) I would now like to turn the conference over to Dr. GS Shen, of ChipMOS TECHNOLOGIES' Strategy and Investor Relations team to introduce the management team of the company in Conference.

（操作員指示） 現在我想請南茂科技策略與投資者關係團隊的沈GS博士在會議上介紹公司的管理團隊。

Dr. Shen, you may begin.

沈醫生，您可以開始了。

(interpreted) Thank you, operator.

（已翻譯）謝謝您，接線生。

Welcome everyone to ChipMOS' first quarter 2024 results conference call.

歡迎大家參加茂茂2024年第一季業績電話會議。

Joining us today from the company are Mr. SJ Cheng, Chairman and President; and Ms. Silvia Su, Vice President of Finance and Accounting Management Center.

今天加入我們公司的有董事長兼總裁鄭世傑先生；財務會計管理中心副總裁Silvia Su女士。

We are also joined on the call today by Mr. Jesse Huang, Spokesperson and Senior Vice President of Strategy and Investor Relations.

發言人兼策略與投資者關係高級副總裁黃傑西先生也參加了今天的電話會議。

SJ will chair the meeting and review business highlights and provide color on the operating environment.

SJ 將主持會議並回顧業務亮點並為營運環境提供色彩。

After Silvia's review of the company's key financial results, SJ will provide our current business outlook.

在 Silvia 審查公司的主要財務表現後，SJ 將提供我們目前的業務展望。

All company executives will then participate in an open Q&A session.

所有公司高層隨後將參加公開問答環節。

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.

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 的簡報。

Before we begin the prepared comments, we remind you to review our forward-looking statements disclaimer, which is noted as the Safe Harbor notice on the second page of today's presentation and in the results press release we issued.

在我們開始準備評論之前，我們提醒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和我們發布的結果新聞稿中被標記為安全港通知。

As a reminder, today's conference call is being recorded and a replay will be made available later today on the company's website.

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. SJ Cheng.

現在我想把電話轉給我們公司的董事長兼總裁鄭世俊先生。

Please go ahead, sir.

請繼續，先生。

(interpreted) Yes, thank you, GS.

（翻譯）是的，謝謝你，GS。

We appreciate everyone joining our call today.

我們感謝大家今天加入我們的電話會議。

We are very pleased with our strong results and business execution in the face of industry headwinds and end market challenges.

面對行業逆風和終端市場挑戰，我們對我們的強勁業績和業務執行力感到非常滿意。

We continue to carefully add capacity, expand our leadership, and build long-term value for shareholders.

我們繼續謹慎地增加產能，擴大我們的領導地位，並為股東創造長期價值。

In terms of Q1 highlights, our Q1 revenue increased 17.7% compared to Q1 2023, and was down 5.4% from Q4 2023 reflecting fewer working days in Q1 and industry headwinds.

就第一季亮點而言，我們第一季營收較 2023 年第一季成長 17.7%，較 2023 年第四季下降 5.4%，反映出第一季工作日減少和產業不利因素。

Q1 Gross margin increased 180 basis points to 14.2% from 12.4% in Q1 2023, and decreased 590 basis points compared to Q4 2023.

第一季毛利率從 2023 年第一季的 12.4% 成長 180 個基點至 14.2%，較 2023 年第四季下降 590 個基點。

Net earnings more than doubled to TWD0.6 in Q1 2024 on a year over year basis.

2024 年第一季淨利潤年增一倍多，達到 0.6 新台幣。

Our overall utilization rate was strong at 63% in Q1 2024.

2024 年第一季度，我們的整體利用率高達 63%。

Assembly utilization increased to 62% and average test utilization was 60%.

組裝利用率提高到 62%，平均測試利用率為 60%。

DDIC was at 67% and bumping UT level increased to 61%.

DDIC 為 67%，碰撞 UT 水準增加至 61%。

Regarding our manufacturing business, assembly represented 25.6% of Q1 revenue.

就我們的製造業務而言，組裝佔第一季營收的25.6%。

Mixed-signal and memory testing represented 20.4% and wafer bumping represented 21.3% of Q1 revenue.

混合訊號和記憶體測試佔第一季營收的 20.4%，晶圓凸塊測試佔 21.3%。

On a product basis, our DDIC product represented 32.5% of total revenue in Q1, with gold bumping representing about 18.6%.

從產品來看，我們的 DDIC 產品佔第一季總營收的 32.5%，其中金塊約佔 18.6%。

Revenue from DRAM and SRAM represented 16.3% of total Q1 revenue.

DRAM 和 SRAM 營收佔第一季總營收的 16.3%。

Our mixed-signal products represented 9.7%.

我們的混合訊號產品佔 9.7%。

As additional color on our business, our memory products represented 39.2% of total Q1 revenue.

作為我們業務的額外亮點，我們的記憶體產品佔第一季總收入的 39.2%。

Memory product revenue increased 1.6% compared to Q4 2023, and increased 26.4% on a year-over-year basis.

記憶體產品營收較 2023 年第四季成長 1.6%，年增 26.4%。

DRAM revenue decreased 3.6% compared to Q4 2023 and represented 15.8% of total Q1 revenue.

與 2023 年第四季相比，DRAM 營收下降 3.6%，佔第一季總營收的 15.8%。

Flash revenue represented about 23% of Q1 revenue, which was up 5.6% compared to Q4 2023.

快閃記憶體收入約佔第一季營收的 23%，較 2023 年第四季成長 5.6%。

NAND flash also benefitted significantly from customers rebuilding inventory levels and increased 17.4% compared to Q4 2023.

NAND快閃記憶體也顯著受益於客戶重建庫存水平，與2023年第四季相比增加了17.4%。

NAND flash represented 45.3% of Q1 total Flash revenue.

NAND快閃記憶體佔第一季快閃記憶體總營收的45.3%。

We are pleased with our growth in this important area to the company and expect growth throughout 2024 based on demand we see today.

我們對公司在這一重要領域的成長感到滿意，並預計根據我們今天看到的需求，到 2024 年全年都會實現成長。

Moving onto Driver IC and gold bump revenue, this represented about 51% of total Q1 revenue.

轉向驅動器 IC 和黃金凸點收入，約佔第一季總收入的 51%。

This was up 14.3% on a year-over-year basis but decreased 11% compared to Q4 2023.

年比成長 14.3%，但與 2023 年第四季相比下降 11%。

Of note, Gold bump revenue was down 1.8% compared to Q4 2023 and DDIC revenue was down 15.5% compared to Q4 2023.

值得注意的是，Gold Bump 營收與 2023 年第四季相比下降了 1.8%，DDIC 營收與 2023 年第四季相比下降了 15.5%。

Demand from auto panels drove more than 27% of our Q1 DDIC revenue.

汽車面板的需求推動了我們第一季 DDIC 收入的 27% 以上。

We continue to view automotive as an important mid and long-term growth market for us.

我們繼續將汽車視為我們重要的中長期成長市場。

The most demanded auto features are reliant on semiconductors.

最需要的汽車功能依賴半導體。

As a result, semiconductor content is increasing at a rapid rate in models at all price points.

因此，所有價位型號中的半導體含量都在快速增加。

Our track record of quality, excellence, and required qualifications gives us a competitive edge in serving auto customers.

我們在品質、卓越和所需資格方面的記錄使我們在服務汽車客戶方面具有競爭優勢。

Regarding TDDI, it represented around 20.7% of Q1 DDIC revenue, with OLED at 23.3% of Q1 DDIC revenue.

TDDI 佔第一季 DDIC 營收的 20.7% 左右，OLED 佔第一季 DDIC 營收的 23.3%。

On an end-market basis, total revenue from automotive and industrial represented about 22% of Q1 revenue.

從終端市場來看，來自汽車和工業的總收入約佔第一季營收的 22%。

Smartphones related demand represented 38.4% of Q1 revenue and decreased 10.9% compared to Q4 2023.

智慧型手機相關需求佔第一季營收的 38.4%，較 2023 年第四季下降 10.9%。

Consumer related demand represented 20.5% of Q1 revenue and increased to 6.3% compared to Q4 2023.

消費者相關需求佔第一季營收的 20.5%，與 2023 年第四季相比增加至 6.3%。

TV's panel demand represented 15.8% of Q1 revenue, which was flat with Q4 2023.

電視面板需求佔第一季營收的 15.8%，與 2023 年第四季持平。

Lastly, computing accounted for 3.3% of Q1 revenue.

最後，計算業務佔第一季營收的 3.3%。

Now let me turn the call to Ms. Silvia Su, to review the first quarter 2024 financial results.

現在請蘇女士來回顧一下2024年第一季的財務表現。

Silvia, please go ahead.

西爾維婭，請繼續。

(interpreted) Thank you SJ.

（翻譯）謝謝你，SJ。

All dollar amounts cited in our presentation are in NT dollars.

我們的演示中引用的所有美元金額均以新台幣為單位。

The following numbers are based on the exchange rates of TWD31.93 against USD1 as of March 29, 2024.

以下數字是根據截至 2024 年 3 月 29 日新台幣 31.93 兌 1 美元的匯率。

All the figures were prepared in accordance with Taiwan-International Financial Reporting Standards.

所有數據均依據台灣國際財務報告準則編製。

Referencing presentation page 12 consolidated operating results summary, for the first quarter of 2024, total revenue was TWD5,419 million.

參考示範第12頁合併經營績效摘要，2024年第一季總營收為新台幣54.19億元。

Net profit attributable to the company was TWD438 million in Q1.

第一季歸屬公司淨利為新台幣4.38億元。

Net earnings for the first quarter of 2024 were TWD0.60 per basic common share or USD0.38 per basic ADS.

2024 年第一季淨利為每股基本普通股 0.60 新台幣或每股基本美國存託股 0.38 美元。

EBITDA for Q1 was TWD1,544 million.

第一季 EBITDA 為新台幣 15.44 億元。

EBITDA was calculated by adding depreciation and amortization together with operating profit.

EBITDA 是透過將折舊和攤提與營業利潤相加計算得出的。

Return on equity of Q1 was 7%.

第一季的股本回報率為 7%。

Referencing presentation page 13 consolidated statements of comprehensive income, compared to 4Q '23, total 1Q '24 revenue decreased 5.4% compared to 4Q '23.

參考第 13 頁綜合損益表，與 23 年第 4 季相比，24 年第 1 季總營收比 23 年第 4 季下降了 5.4%。

1Q '24 gross profit was TWD771 million, with gross margin at 14.2% compared to 20.1% in 4Q '23.

24 年第 1 季毛利為新台幣 7.71 億元，毛利率為 14.2%，而 23 年第 4 季毛利率為 20.1%。

This represents a decrease of 5.9ppts.

這意味著下降了 5.9 個百分點。

Our operating expenses in 1Q '24 were TWD430 million, or 7.9% of total revenue, which decreased 3.5% compared to 4Q '23.

24 年第 1 季的營業費用為新台幣 4.3 億元，佔總營收的 7.9%，比 23 年第 4 季下降 3.5%。

Operating profit for 1Q '24 was TWD363 million, with operating profit margin at 6.7%, which is about a 5.8ppts decrease compared to 4Q '23.

24 年第 1 季營業利潤為新台幣 3.63 億元，營業利益率為 6.7%，較 23 年第 4 季減少約 5.8 個百分點。

Net non-operating income in 1Q '24 was TWD156 million compared to net non-operating expenses of TWD137 million in 4Q '23.

24 年第 1 季的營業外收入淨額為新台幣 1.56 億元，而 23 年第 4 季的營業外支出淨額為新台幣 1.37 億元。

The difference is mainly due to the increase of the foreign exchange gains of TWD348 million from the foreign exchange losses of TWD '195 million in 4Q23 to the foreign exchange gains of TWD153 million in 1Q '24 and partially offset by the decrease of share of profit of associates accounted for using equity method of TWD55 million.

此差異主要是由於 2023 年第 4 季外匯虧損 1.95 億新台幣增加到 2024 年第 1 季外匯收益 1.53 億新台幣，而外匯收益 3.48 億新台幣被利潤份額減少部分抵銷。公司為新台幣5,500 萬元。

Profit attributable to the company in 1Q '24 decreased 9.2% compared to 4Q '23.

與 2023 年第 4 季相比，2024 年第 1 季公司應佔利潤下降 9.2%。

This primarily reflects the decrease of operating profit of TWD352 million and partially offset by an increase of net non-operating income of TWD293 million and the decrease of income tax expense of TWD14 million.

這主要反映營業利潤減少新台幣3.52億元，但被營業外淨收入增加新台幣2.93億元和所得稅費用減少新台幣1,400萬元所部分抵銷。

Basic weighted average outstanding shares were 727 million shares.

基本加權平均流通股為7.27億股。

Compared to 1Q '23, total revenue for 1Q '24 increased 17.7% compared to 1Q '23.

與 23 年第 1 季相比，24 年第 1 季的總營收比 23 年第 1 季成長了 17.7%。

Gross margin at 14.2% increased 1.8ppts compared to 1Q '23.

毛利率為 14.2%，較 2023 年第一季增加 1.8 個百分點。

Operating expenses increased 7.2% compared to 1Q '23.

與 2023 年第一季相比，營運費用增加了 7.2%。

Operating profit margin at 6.7% increased 2.7ppts compared to 1Q '23.

營業利益率為 6.7%，與 2023 年第一季相比增加了 2.7 個百分點。

Net non-operating income increased TWD113 million compared to 1Q '23.

營業外淨收入較 2023 年第一季增加 1.13 億元新台幣。

The difference is mainly due to the increase of the foreign exchange gains of TWD197 million from the foreign exchange losses of TWD44 million in 1Q '23 to the foreign exchange gains of TWD153 million in 1Q '24 and partially offset by the decrease of share of profit of associates accounted for using equity method of TWD44 million, rental income of TWD16 million and interest income of TWD13 million.

差異主要是由於2023年第1季外匯虧損4,400萬新台幣增加了1.97億新台幣的匯兌收益，增加到2024年第1季的1.53億新台幣匯兌收益，部分被利潤份額減少所抵銷。法核算的聯營公司為新台幣4,400 萬元，租金收入為新台幣1,600 萬元，利息收入為新台幣1,300 萬元。

Profit attributable to the company increased 116.3% compared to 1Q '23.

與 23 年第一季相比，公司應佔利潤成長 116.3%。

The difference is mainly due to an increase of operating profit of TWD178 million and net non-operating income of TWD113 million and partially offset by the increase of income tax expense of TWD55 million.

差異主要是由於營業利潤增加新台幣1.78億元和營業外收入淨額增加新台幣1.13億元，並被所得稅費用增加新台幣55百萬元部分抵銷。

Referencing presentation page 14 consolidated statements of financial position and key indices, total assets at the end of 1Q '24 were TWD45,563 million.

參考第14頁的合併財務狀況表及主要指標，2024年第一季末的總資產為新台幣455.63億元。

Total liabilities at the end of 1Q '24 were TWD20,280 million.

2024 年第 1 季末的負債總額為新台幣 202.8 億元。

Total equity at the end of 1Q '24 was TWD25,283 million.

2024 年第一季末的總股本為新台幣 252.83 億元。

Accounts receivable turnover days in 1Q '24 were 88 days.

2024 年第一季的應收帳款週轉天數為 88 天。

Inventory turnover days was 51 days in 1Q '24.

2024 年第一季的庫存週轉天數為 51 天。

Referencing presentation page 15 consolidated statements of cash flows as of March 31, 2024, our balance of cash and cash equivalents was TWD12,165 million, which represents a decrease of TWD189 million compared to the beginning of the year.

參考第15頁截至2024年3月31日的合併現金流量表，現金及現金等價物餘額為新台幣121.65億元，較年初減少新台幣1.89億元。

Net free cash inflow for the first quarter of 2024 was TWD800 million compared to TWD1,033 million for the same period in 2023.

2024 年第一季自由現金流淨流入為新台幣 8 億新台幣，而 2023 年同期為新台幣 10.33 億新台幣。

The decrease was mainly due to the increase of CapEx of TWD319 million and income tax expense of TWD55 million and partially offset by the increase of operating profit of TWD178 million.

減少的主因是資本支出增加了新台幣 3.19 億元，所得稅費用增加了新台幣 5,500 萬元，但部分被營業利潤增加新台幣 1.78 億元所抵銷。

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.

自由現金流的計算方法是將折舊、攤提、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 TWD633 million in CapEx in Q1.

參考第 16 頁的資本支出和折舊，我們第一季的資本支出投資了新台幣 6.33 億。

The breakdown of CapEx in Q1 was 4.4% for bumping, 22.4% for LCD driver, 46.8% for assembly, and 26.4% for testing.

第一季的資本支出細分為凸塊 4.4%，LCD 驅動器 22.4%，組裝 46.8%，測試 26.4%。

Depreciation expenses were TWD1,181 million in Q1.

第一季折舊費用為新台幣 11.81 億元。

As of April 30, 2024, the company's outstanding ADS number was approximately 4.3 million units, which represents around 12% of the company's outstanding common shares.

截至2024年4月30日，該公司已發行的ADS數量約為430萬股，約佔該公司已發行普通股的12%。

That concludes the financial review.

財務審查到此結束。

I will now turn the call back to our Chairman Mr. SJ Cheng for our outlook.

現在我將把電話轉回給我們的主席 SJ Cheng 先生，詢問我們的前景。

Please go ahead, sir.

請繼續，先生。

(interpreted) Thank you, Silvia.

（翻譯）謝謝你，西爾維亞。

According to the current industry situation and customers' feedback, we are cautiously optimistic entering Q2.

根據目前的行業情勢和客戶回饋，我們對進入第二季持謹慎樂觀態度。

Industry headwinds are expected to remain in nearly every end market.

預計幾乎每個終端市場都將面臨產業阻力。

We expect Q1 to be the seasonal trough quarter for 2024, which is in line with normal industry seasonality.

我們預計第一季將是 2024 年的季節性低谷季度，這符合正常的行業季節性。

We expect the broader market condition will improve as we move through 2024 leading to a stronger second half with improved operating momentum, end markets, and end customer inventory levels.

我們預計，隨著 2024 年的到來，更廣泛的市場狀況將有所改善，下半年將更加強勁，營運動能、終端市場和終端客戶庫存水準都會有所改善。

In our memory product, the assembly and test UT level are improving with DRAM and flash customers restocking.

在我們的記憶體產品中，隨著DRAM和快閃記憶體客戶的補貨，組裝和測試UT水平正在提高。

In our DDIC product, the automotive panel and OLED demand still remain stable compared to other products.

在我們的DDIC產品中，與其他產品相比，汽車面板和OLED需求仍然保持穩定。

This leads to the high UT level of high-end DDIC test platforms.

這導致了高階DDIC測試平台的UT水平很高。

In addition, benefitting the TV rush order, it is increasing the related assembly and test UT level.

此外，受益於電視搶單，正在提高相關組裝和測試UT水平。

Therefore, we think DDIC will outgrow memory product momentum in Q2.

因此，我們認為 DDIC 在第二季度的成長將超過記憶體產品的成長勢頭。

With regard to CapEx, based on current customer forecasts and UT level improving, we plan to support customers with careful CapEx additions, including our DDIC high-end test platform in the second half of the year.

關於資本支出，根據當前客戶預測和UT水平的提高，我們計劃透過謹慎增加資本支出來支持客戶，包括下半年我們的DDIC高端測試平台。

We will continue to be disciplined in order to maintain our balance sheet strength, while also maintaining our business growth momentum, and competitive advantage.

我們將繼續遵守紀律，以保持我們的資產負債表實力，同時保持我們的業務成長動力和競爭優勢。

In general, based on market commentary across the industry, we expect the inventory situation to improve as we move through the second half with headwinds decreasing.

總體而言，根據整個行業的市場評論，我們預計下半年庫存狀況將有所改善，不利因素將減少。

Finally, in terms of our capital allocation, our Board approved our latest dividend.

最後，在我們的資本配置方面，我們的董事會批准了我們最新的股利。

This reflects our balance sheet strength, strong market position, and our focus on building shareholder value.

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創造股東價值的關注。

Pending shareholder approval at our May 2024 AGM, we will distribute TWD1.8 per common share.

在等待 2024 年 5 月年度股東大會上的股東批准之前，我們將分配每股普通股 1.8 新台幣。

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

接線員，我們的正式發言結束了，我們現在可以提問了。

(interpreted) (Operator Instructions) [Haas Liu, UBS].

（解釋）（操作員說明）[Haas Liu，UBS]。

Yes, hi, Jesse, Dr. Shen, and management team, thanks for taking my question.

是的，嗨，傑西、沈博士和管理團隊，感謝您提出我的問題。

If possible, I'll give English translations for overseas investors and you can answer in English or Chinese.

如果可以的話，我會給海外投資者提供英文翻譯，你可以用英文或中文回答。

So my first question will be on your business outlook for 2Q.

所以我的第一個問題是關於第二季的業務前景。

With supply chain TV demand outlook is still solid [into sports events], while the smart phone demand remains pretty muted.

由於供應鏈電視需求前景仍穩固（體育賽事），而智慧型手機需求仍相當低迷。

On the memory business, NAND and DRAM, as you just mentioned, the pricing and also the demand have been improving.

在記憶體業務方面，NAND和DRAM，正如您剛才提到的，定價和需求都在改善。

So could you try to quantify your business outlook for second quarter?

那麼您能否嘗試量化第二季的業務前景？

And could you please rank the weakness and strength for your business during the quarter?

您能否列出本季貴公司業務的弱點和優勢？

Thank you so much.

太感謝了。

Okay, hi, this is Jesse speaking.

好的，嗨，我是傑西。

Thanks for your question.

謝謝你的提問。

So I'll give you some rankings respectively for memory and DDIC.

那我就分別給大家一些內存和DDIC的排名。

For DDIC, as Chairman has mentioned, for OLED and automotive positions relatively maintaining the momentum.

對於DDIC來說，正如董事長所提到的，OLED和汽車領域的地位相對保持勢頭。

And since we have different domestic or overseas customer, relatively stronger demand, with large panel TV DDIC from domestic and overseas customers for DDIC, recently we did the TV large panel driver IC reforming better, improving recently.

而且由於我們國內外客戶不同，需求相對較強，有國內大螢幕電視DDIC和海外客戶對DDIC的支持，最近我們對電視大螢幕驅動IC的改造做得比較好，最近有所改善。

And for the small panel as you mentioned, muted.

對於您提到的小面板，靜音。

As for memory, both of the DRAM and SRAM customers requirement has been improving.

在記憶體方面，DRAM和SRAM客戶的需求都在不斷提高。

And followed by previous NAND flash demand, recently we also see some of our NOR flash customer starting to picking up their utilization and also some of their loading to ChipMOS.

繼先前的 NAND 快閃記憶體需求之後，最近我們也看到一些 NOR 快閃記憶體客戶開始提高利用率，並且部分載入到 ChipMOS。

This is the amount of color that I can share with you.

這是我可以與您分享的顏色量。

Okay, sure.

好吧，當然。

So with your peers (inaudible) or the back-end peers (inaudible), we were guiding like a [2%] growth we're seeing quarter on quarter.

因此，對於您的同儕（聽不清楚）或後端同業（聽不清楚），我們的指導是季度環比增長 [2%]。

Do you think of your rigs will be similar to your peers or you could potentially outperform your peers with your higher memory exposure?

您是否認為您的裝備與您的同行相似，或者您可能憑藉較高的內存暴露而超越您的同行？

Thank you.

謝謝。

Okay.

好的。

Normally, we don't provide a guidance for the following quarter.

通常，我們不會提供下一季的指導。

So I think we can just tell you that Q1 would be the bottom and quarterly our result would be gradually improving and the momentum will be as a determinant of mentioned in Q2, DDIC would perform slightly better than memory.

因此，我認為我們可以告訴您，第一季將是底部，每季我們的業績將逐漸改善，勢頭將作為第二季度提到的決定因素，DDIC 的表現將略好於內存。

Okay.

好的。

So with that mix shift, how should we think about your margins outlook relative to your first quarter?

因此，隨著這種組合的轉變，我們應該如何看待您相對於第一季的利潤前景？

Because I think your utilization is proving, but I think the mix is more favorable with its -- we think our mix is shifting toward more driver IC, right?

因為我認為你的利用率正在得到證明，但我認為這種組合更有利——我們認為我們的組合正在轉向更多的驅動器 IC，對吧？

Yeah.

是的。

So certainly when we improve our utilization, gross margins are certainly improved.

因此，當我們提高利用率時，毛利率肯定會提高。

And I think in Q2 we usually communicate with you guys due to the less kind of additional cost adder like a bonus or like seasonality cost of electricity in Q3.

我認為在第二季度，我們通常會與你們溝通，因為第三季度的額外成本增加因素較少，例如獎金或季節性電力成本。

So this may be positive factors to our cost structure then (inaudible) profitability.

因此，這可能對我們的成本結構和（聽不清楚）獲利能力是正面因素。

Okay.

好的。

And then could you also remind us how the potential electricity price hike could impact your business, for the same quarter, how much is your percent of your total (inaudible) cost structure?

然後您能否提醒我們，潛在的電價上漲會對您的業務產生怎樣的影響？

We did do some modeling for each scenario, even though they operate now final and well in all ranked in, the increased percentage will be hope for our industry, may be 14% increase and that would break into our cost.

我們確實對每種情況做了一些建模，儘管它們現在最終運行並且在所有排名中都表現良好，但增加的百分比將是我們行業的希望，可能會增加 14％，這將打破我們的成本。

So for each quarter correspond may be within nearly 0.5% for each quarter.

因此，每季的對應值可能在近 0.5% 之內。

Okay.

好的。

So with that kind of a nexus, very high, the impact to your gross margins will be around 0.5 percentage point.

因此，由於這種關係非常高，對毛利率的影響將約為 0.5 個百分點。

Okay.

好的。

Got it.

知道了。

And then -- that is very helpful, yeah.

然後——這非常有幫助，是的。

And my second question will be on your outlook into second half.

我的第二個問題是關於你對下半年的展望。

Could you discuss the demand you're seeing now for second half from your existing customers and potential opportunity from new customers or projects?

您能否討論一下現有客戶下半年的需求以及新客戶或專案的潛在機會？

And do you think you will be able to gain market share this year or the outgrowth relative to your back-end peers who are guiding (inaudible) this year?

您認為今年能否獲得市場份額或相對於今年指導（聽不清楚）的後端同行的成長？

And what should we think about the potential revenue mix for your first half versus second half?

我們該如何看待上半年和下半年的潛在收入組合？

Thank you.

謝謝。

For your question for the second half, for OLED and automotive, driver area are significantly increased because of the demand and application user, that is the display area.

對於你下半年的問題，對於OLED和汽車來說，由於需求和應用用戶的需求，驅動器面積顯著增加，即顯示面積。

For mixing and all, and sensor area also will be greater increase.

對於混合和所有，感測器面積也將得到更大的增加。

For memory wise, since we had a stable cost of it, they are going to be spent with

對於記憶體而言，由於我們有穩定的成本，因此它們將用於

[spread capacity].

[傳播能力]。

So they are going to increase our loading for the second half.

所以他們將增加我們下半年的負荷。

So that's what you guys see for both memory and driver, mixing is up.

這就是你們所看到的記憶體和驅動器，混合已經完成。

That area second half will be better than the first half.

該地區下半場會比上半場更好。

And for priority wise is high-end driver IC will be the highest one, then low price, mixing, and demand will be the second.

從優先級來看，高端驅動IC將是最高的，然後是低價、混雜和需求第二的。

So we are definitely optimistic about the second half.

所以我們對下半年肯定是樂觀的。

Okay.

好的。

When you talk about the significant or meaningful improvements or your older driver IC being second half.

當您談論重大或有意義的改進或您的舊驅動器 IC 已成為下半年。

Could you please elaborate more on what kind of the things new customers or new projects you are seeing that higher volatilities in smartphones that is lifting the demand there and support your utilization in second half?

您能否詳細說明您所看到的新客戶或新項目，智慧型手機的更高波動性正在提升那裡的需求並支持您下半年的利用率？

Thank you.

謝謝。

[Well, actually the dimension is great].

[嗯，其實尺寸很大]。

We are going to increase some high-end DDIC tender because of the increase and automotive also increase, the driver area and that's coming from our existing customers, their new applications.

我們將增加一些高端 DDIC 招標，因為汽車領域的增加、驅動領域的增加以及來自我們現有客戶及其新應用的增加。

Okay.

好的。

Yes, that's very helpful.

是的，這非常有幫助。

Thanks.

謝謝。

And my final question before I jump back in the queue, is that if I could have a follow-up question on your outlook.

在我回到隊列之前，我的最後一個問題是，我是否可以對您的前景提出一個後續問題。

What are you seeing the potential opportunity in addition to your existing display driver IC at both the analog and memory business?

除了現有的顯示器驅動器 IC 之外，您認為在類比和記憶體業務領域還有哪些潛在機會？

And with growing China competition, are you concerned your positioning at existing back-end supplier?

隨著中國競爭的加劇，您是否擔心您在現有後端供應商中的定位？

Thank you so much.

太感謝了。

I think China competition is for everybody.

我認為中國的競爭適合所有人。

So the only thing we can do is that we are going to increase the product value added and also invest on automation and simplify the process in order to reduce our cost structure and maintain our profitability and maintain our competition.

因此，我們唯一能做的就是增加產品附加價值，投資自動化並簡化流程，以降低成本結構，保持獲利能力並保持競爭。

So far so good.

到目前為止，一切都很好。

Okay.

好的。

Thank you so much.

太感謝了。

I'll be back in the queue.

我會回到隊列中。

(interpreted) Stanley Wang, SinoPac.

（口譯）Stanley Wang，永豐金豐公司。

(interpreted) How do you see the revenue ratio for 1H and 2H.

（解讀）您如何看待1H和2H的收入比例？

(interpreted) In last quarter's earnings call, our CFO gave 47:53.

（解釋）在上個季度的財報電話會議上，我們的財務長給了 47:53 的答案。

We think this number could be similar.

我們認為這個數字可能相似。

(interpreted) Do you think the UT rate for the second quarter would reach 70%?

（解讀）您認為第二季的UT率會達到70%嗎？

(interpreted) Almost in the range.

（解釋）幾乎在範圍內。

(interpreted) It looks like your depreciation didn't increase too much, but the operating cost increased a lot.

（解讀） 看起來你們的折舊並沒有增加太多，但是營運成本增加了很多。

Does it imply you're encountering higher material cost pressure?

這是否意味著您面臨更高的材料成本壓力？

If yes, could it be transferred to your customers?

如果是的話，可以轉移給你的客戶嗎？

(interpreted) Gold material cost for bumping has a formula, which could be shared between ChipMOS and customers.

(解讀) 凸塊的金料成本有一個公式，可以由茂茂與客戶共同分攤。

However, the assembly gold wire cost would not be.

然而，組裝金線成本卻不會。

(interpreted) Further, you mentioned about capacity expansion in 2H.

（解釋）另外，您提到了下半年的產能擴張。

Would it be possible to have contracts with customers?

是否可以與客戶簽約？

(interpreted) Basically, we would move in this way since we have lots of experience in this kind of business model.

（解釋）基本上，我們會採取這種方式，因為我們在這種商業模式方面有很多經驗。

(interpreted) In the script, you mentioned about stable demand from automotive in Q2.

（解釋）在劇本中，您提到第二季汽車需求穩定。

Please give us more color for other applications.

請為我們其他應用提供更多顏色。

(interpreted) Smart mobile likely gradually bottoming out, and TV demand favored by domestic and oversea customers.

(解讀) 智慧型手機或將逐步觸底反彈，電視需求受到國內外消費者青睞。

(interpreted) Based on your current financial data, your CapEx in Q1 is still relatively lower.

（解讀）根據你們目前的財務數據，你們第一季的資本支出還是比較低的。

Please give us more color about whole year CapEx and depreciation.

請給我們更多有關全年資本支出和折舊的資訊。

(interpreted) As our Chairman just mentioned, we should have higher capex in 2H.

（解釋）正如我們主席剛才所提到的，我們下半年的資本支出應該會更高。

The percentage to annual revenue would be an increase from 15% to 16% up to 18% to 19% in 2024.

到 2024 年，佔年收入的百分比將從 15% 至 16% 增加到 18% 至 19%。

On the basis of 1Q '24, the depreciation rate would increase around 1% to 3% quarterly.

以2024年第一季為基礎，折舊率將按季上漲1%至3%左右。

Echo to Jesse's reply to your question about 1H and 2H ratio, it would be roughly 47:53.

回應傑西對你關於1H和2H比率問題的答复，大約是47:53。

(interpreted) Michael Hsu, Yuanta.

(翻譯) Michael Hsu，元大。

(interpreted) How is your price pressure for currently and 2H?

（解讀）目前和下半年你們的價格壓力如何？

(interpreted) Generally speaking, it is stable.

（解釋）整體來說是穩定的。

Our only concern is whether we can transfer the increased material cost to customers.

我們唯一關心的是能否將增加的材料成本轉嫁給客戶。

(interpreted) Do you think you can still maintain your price position even under lower price competition from Chinese competitors?

（解讀）您認為即使在中國競爭對手的更低價格競爭下，您還能維持價格地位嗎？

(interpreted) Again, China player competition is for everybody.

（解釋）再說一遍，中國選手的比賽是適合所有人的。

We would focus on the high-end product segment, for example, OLED, automotive, and high-end TV.

我們將專注於高階產品領域，例如 OLED、汽車和高階電視。

We also gain share from Chinese customers targeting market demand outside China.

我們也從針對中國以外市場需求的中國客戶獲得了份額。

(interpreted) Thank you.

（翻譯）謝謝。

And I am not showing any further questions in the queue.

我不會在隊列中顯示任何其他問題。

I would like to turn the call back over to GS Shen.

我想將電話轉回 GS Shen。

(interpreted) That concludes our question-and-answer session.

（解釋）我們的問答環節到此結束。

Thank you for participating.

感謝您的參與。

I'll turn the floor back to Mr. SJ Cheng for any closing comments.

我將請 SJ Cheng 先生徵求結束意見。

(interpreted) Thank you, everyone for joining our conference call.

（翻譯）謝謝大家參加我們的電話會議。

Please e-mail our IR team if you have any more questions.

如果您還有任何疑問，請發送電子郵件給我們的 IR 團隊。

We appreciate your support.

我們感謝您的支持。

Goodbye.

再見。

(interpreted) Ladies and gentlemen, this concludes today's conference call.

（同聲傳譯）女士們、先生們，今天的電話會議到此結束。

Thank you for participating.

感謝您的參與。

You may now disconnect.

您現在可以斷開連線。

Portions of this transcript that are marked (interpreted) were spoken by an interpreter present on the live call.

此文字記錄中標記（翻譯）的部分是由現場通話中的口譯員說出的。

The interpreter was provided by the company.

翻譯由公司提供。

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