Photronics, Inc. (PLAB) 2026 Q2 法說會逐字稿

Good day and thank you for standing by. Welcome to the Photronics Q2 fiscal year 2026 earnings conference call. (Operator Instructions) Please be advised that today's conference is being recorded I would now like to hand the conference over to your speaker today, Ted Moreau, Vice President of Investor Relations. Please go ahead.

各位好，感謝您稍候。歡迎參加 Photronics 2026 會計年度第二季（Q2）財報電話會議。(接線員指示) 請注意，今天的會議將被錄音。現在我想把會議交給今天的發言人——投資人關係副總裁 Ted Moreau。請開始。

Thank you, operator. Good morning, everyone. Welcome to our review of Photronics fiscal second-quarter 2026 financial results. Joining me this morning are George Macricostas, Chairman and Chief Executive Officer; Eric Rivera, President and Chief Financial Officer; and Frank Lee, Senior Executive for Asia.

謝謝，接線員。各位早安。歡迎參加我們對 Photronics 2026 會計年度第二季財務結果的回顧。今天早上與我一同出席的有：董事長兼執行長 George Macricostas；總裁兼財務長 Eric Rivera；以及亞洲資深主管 Frank Lee。

The press release issued earlier this morning, along with the presentation materials accompanying our remarks, is available on the Investor Relations section of our website and on the Form 8-K filed with the SEC. This call includes forward-looking statements that involve risks and uncertainties, which could cause Photronics results to differ materially from management's current expectations.

今天稍早發布的新聞稿，以及配合我們發言的簡報資料，可在我們網站的投資人關係專區以及向美國證券交易委員會（SEC）提交的 Form 8-K 中取得。本次電話會議包含前瞻性陳述，涉及風險與不確定性，可能導致 Photronics 的結果與管理層目前預期出現重大差異。

We encourage you to review the forward-looking statements disclosure included in our earnings release and in our most recent SEC filings. In the coming weeks, we will be participating in investor conferences hosted by Bank of America in San Francisco, Three Part Advisors in New York, D.A. Davidson in Nashville, and Singular Research in Las Vegas.

我們鼓勵各位查閱我們財報新聞稿以及近期向 SEC 提交文件中所載的前瞻性陳述揭露。在接下來幾週，我們將參與由美國銀行（Bank of America）於舊金山、Three Part Advisors 於紐約、D.A. Davidson 於納什維爾，以及 Singular Research 於拉斯維加斯主辦的投資人會議。

With that, I will now turn the call over to George.

接下來，我把電話交給 George。

Thank you, Ted, and good morning, everyone. In Q2, global photomask market dynamics reflected a mix of supportive long-term drivers alongside temporary headwinds. Industry demand for leading-edge memory and logic chips for AI applications remains exceptionally strong. Manufacturing these chips requires a significant number of high-end photomasks, which creates a compelling multiyear growth opportunity for Photronics.

謝謝你，Ted，各位早安。第二季（Q2），全球光罩市場動態呈現：一方面有支持性的長期驅動因素，另一方面也有短期逆風。產業對用於 AI 應用的先進記憶體與邏輯晶片需求仍然異常強勁。製造這些晶片需要大量高階光罩，為 Photronics 帶來極具吸引力的多年期成長機會。

We are taking several strategic actions to strengthen our position in this growing market which I will discuss later in more detail. Importantly, as a reminder, photomask demand is more closely aligned with semiconductor design releases than to wafer starts. In the near term, several factors have delayed design releases, including elevated fab utilization rates, memory supply constraints and geopolitical uncertainty. Eric will further elaborate on these factors. Given these unexpected near-term headwinds for certain ship design releases, the seasonal recovery following Chinese New Year has not occurred to the extent anticipated. As a result, our IC business decreased 5% year-over-year to $148 million, resulting in total fiscal Q2 revenue of $210 million, which was essentially flat year-over-year. Despite the near-term industry headwinds, we continue to execute against our investment priorities and strengthen our position in the robust high-end market segment.

我們正採取多項策略性行動，以強化我們在這個成長市場中的地位，稍後我會更詳細說明。重要的是，提醒各位：光罩需求與半導體設計釋出（design releases）的關聯性，比與晶圓開工（wafer starts）更為密切。短期內，有數項因素延後了設計釋出，包括晶圓廠稼動率偏高、記憶體供應限制，以及地緣政治不確定性。Eric 將進一步闡述這些因素。由於某些晶片設計釋出面臨這些非預期的短期逆風，農曆新年後的季節性復甦未如預期發生。因此，我們的 IC 業務營收年減 5% 至 1.48 億美元，使得 2026 會計年度第二季總營收為 2.10 億美元，與去年同期基本持平。儘管產業短期逆風存在，我們仍持續依照投資優先事項執行，並強化我們在強勁的高階市場區隔中的地位。

Our ongoing investments in our US and Korea operations are designed to strengthen Photronics long-term competitive position as we expand site capabilities into more advanced technology nodes. Both expansion projects remain on track. And over the next several years, we expect these investments to help us capture photomask demand and support a more geographically diverse revenue base. Strategically, these investments align us with the industry's ongoing manufacturing regionalization trends. They also position us to benefit from increased outsourcing opportunities from captive photomask producers, which will further shift our product mix towards more advanced geometries that carry higher ASPs. At our Korea facility, we are preparing our clean room for the arrival of key equipment to extend our capabilities down to 8-nanometer and below and we expect installations to begin later in the fiscal year.

我們持續對美國與韓國營運據點的投資，旨在於我們將各廠區能力擴展至更先進製程節點之際，強化 Photronics 的長期競爭地位。兩項擴建計畫皆按進度推進。在未來數年，我們預期這些投資將協助我們掌握光罩需求，並支持更具地理多元性的營收結構。在策略上，這些投資與產業持續推動製造區域化（regionalization）的趨勢一致。同時也使我們能受惠於來自自有光罩生產商（captive photomask producers）增加外包的機會，進一步將我們的產品組合轉向具更先進幾何尺寸、且具較高平均售價（ASP）的產品。在韓國廠，我們正為關鍵設備進駐做無塵室準備，以將能力延伸至 8 奈米及以下，並預期於本會計年度稍晚開始安裝。

At our Allen facility, we are beginning production of qualification masks and continue to target initial revenue late in the fiscal year with a more meaningful contribution to revenue growth in 2027 and beyond. Over time, we expect the site will become an important mask supplier for US onshore mainstream semiconductor manufacturing.

在 Allen 廠，我們正開始生產認證用光罩（qualification masks），並持續以本會計年度稍晚開始取得初期營收為目標，且在 2027 年及之後對營收成長做出更具實質性的貢獻。長期而言，我們預期該據點將成為美國本土主流半導體製造的重要光罩供應商。

For leading-edge AI chips, our high-end US facility in Boise is qualified to produce masks at the 7-nanometer node and our teams are working closely with customers on even more advanced nodes. Photronics facility in Taiwan and the US are also well positioned to capture the increasing opportunities in advanced chip packaging applications.

針對先進 AI 晶片，我們位於美國 Boise 的高階廠已通過 7 奈米節點光罩生產資格認證，我們的團隊也正與客戶密切合作，推進更先進的節點。Photronics 位於台灣與美國的廠區，也具備良好條件以掌握先進晶片封裝應用日益增加的機會。

Turning to FPD. Revenue of $62 million increased 13% year-over-year, reflecting our capability to produce more complex, larger mask sizes and our strong differentiation in AMOLED. Our market-leading high-end capabilities in the dynamic China market remains strong and should support display revenue growth in the coming years. In Korea, where we maintain strong market share, positive seasonality returned during fiscal Q2 after a slower start to the calendar year.

接著談 FPD（平面顯示器）。營收為 6,200 萬美元，年增 13%，反映我們具備生產更複雜、更大尺寸光罩的能力，以及我們在 AMOLED 的強勁差異化優勢。我們在充滿活力的中國市場中具市場領先的高階能力仍然強勁，並應可支持未來數年的顯示器營收成長。在韓國，我們維持強勁市占；在年初較為緩慢的開局後，2026 會計年度第二季出現正向季節性回升。

The launch schedules of high-end consumer electronics particularly in smartphones and smart watches for Western markets remain on track. Encouragingly, these high-end consumer electronics have not been impacted by tight memory conditions. Our recently installed FPD mass writer is entering production. This tool is expected to maximize our opportunity in G8.6 AMOLED, which carries higher ASP mask layers and is anticipated to be more widely adopted later in the calendar year. We expect continued strength in the Korea FPD market ahead of this higher resolution upgrade cycle. Returning to I.C., while we are observing some signs of order recovery, near-term visibility regarding the timing of certain design releases remains limited. For the medium and long term, secular demand trends remain positive as highlighted at the beginning of my prepared remarks.

面向西方市場的高階消費性電子產品（特別是智慧型手機與智慧手錶）之上市時程仍按計畫進行。令人鼓舞的是，這些高階消費性電子產品並未受到記憶體供應吃緊的影響。我們近期安裝的 FPD 量產寫入機（mass writer）正進入生產。預期此設備將使我們在 G8.6 AMOLED 的機會最大化；該領域具較高 ASP 的光罩層數，並預期在本曆年稍晚更廣泛被採用。在此更高解析度升級週期到來之前，我們預期韓國 FPD 市場將持續維持強勁。回到 IC，雖然我們觀察到一些訂單復甦跡象，但對於某些設計釋出時點的短期能見度仍然有限。就中長期而言，如我在開場準備稿中所強調，結構性需求趨勢仍然正向。

We are excited about the benefits our expansion projects are expected to provide with initial US revenue anticipated late in fiscal 2026 and initial revenue from our Korea expansion by the end of fiscal 2027. Both expansion projects are expected to open additional leading-edge opportunities.

我們對擴建計畫預期帶來的效益感到振奮：美國廠的初期營收預計在 2026 會計年度稍晚開始，而韓國擴建的初期營收預計在 2027 會計年度末之前開始。兩項擴建計畫預期都將開啟更多先進製程的機會。

I will now turn the call over to Eric to review our second quarter results and provide third quarter guidance.

接下來我把電話交給 Eric，請他回顧我們第二季的結果並提供第三季指引。

Thank you, George. Good morning, everyone. Second quarter revenue came in at $210 million, roughly flat year-over-year and down sequentially following the strong performance in fiscal Q1 leading up to the Chinese New Year holiday. I.C. revenue of $148 million represented 70% of total revenue. High-end represented 38% of IC, while mainstream IC revenue was $91 million.

謝謝你，George。各位早安。第二季營收為 2.10 億美元，與去年同期大致持平，並在會計年度第一季（Q1）農曆新年前的強勁表現之後，較前一季下滑。IC 營收為 1.48 億美元，占總營收 70%。其中高階產品占 IC 的 38%，而主流 IC 營收為 9,100 萬美元。

Design releases and associated revenue, particularly from our foundry customers, were shaped by several factors during the period. First, the semiconductor industry is currently experiencing higher-than-normal fab utilization rates. As a result, fabs have been unable to accommodate additional design releases from some of their customers because of this limited capacity.

本期設計釋出及其相關營收（特別是來自晶圓代工客戶）受到數項因素影響。首先，半導體產業目前正經歷高於正常水準的晶圓廠稼動率。因此，由於產能受限，晶圓廠無法容納部分客戶提出的額外設計釋出。

Additionally, many chip OEMs have prioritized revenue and profitability from existing products, which has led them to continue wafer production on current designs while delaying new releases. Second, the recent surge in memory prices and related supply constraints have contributed to delays in the launch of several new consumer electronic products as OEMs have worked to secure memory supply and manage rising product costs.

此外，許多晶片 OEM 已將重點放在既有產品的營收與獲利能力，因而在延後新產品釋出的同時，持續以現有設計進行晶圓生產。第二，近期記憶體價格飆升及相關供應限制，導致多款新消費性電子產品的上市延後；OEM 一方面努力確保記憶體供應，另一方面也在管理上升的產品成本。

The final factor contributing to delays for design releases is geopolitical developments, including the US Iran conflict, which has increased macroeconomic uncertainty. Looking ahead, we expect our capital investments in the US and Korea to begin generating revenue at the end of fiscal 2026 and 2027, respectively.

導致設計釋出延遲的最後一項因素是地緣政治發展，包括美伊衝突，這已增加總體經濟不確定性。展望未來，我們預期我們在美國與韓國的資本投資將分別於2026與2027會計年度末開始帶來營收。

As the new capacity goes into full production, we expect our revenue mix in fiscal 2027 and 2028 to shift in two ways. by node towards high end IC and geographically towards the US and Korea. These investments are consistent with our long-term strategy to further diversify our revenue mix by geography and technology node.

隨著新增產能進入全面量產，我們預期在2027與2028會計年度，我們的營收組合將以兩種方式轉變：在製程節點方面轉向高階IC，並在地理分布方面轉向美國與韓國。這些投資與我們的長期策略一致，旨在按地理與技術節點進一步分散我們的營收組合。

Turning to FPD. Fiscal Q2 revenue of $62 million increased 13% year-over-year and represented one of the strongest quarters in the history of our display business. Demand remains strong in the China market as activity shifted towards the high-end category. In Korea, we saw a reacceleration of business activity as customers prepare for regularly scheduled consumer electronic launches this fall.

接著談FPD。第二會計季營收為6,200萬美元，年增13%，並創下我們顯示業務史上最強勁的季度之一。隨著活動轉向高階類別，中國市場需求仍然強勁。在韓國，隨著客戶為今年秋季例行的消費性電子產品發表做準備，我們看到業務活動再度加速。

We foresee accelerated display market growth over the next several years following the increasing trend of G8.6 AMOLED applications. Display market growth is concentrated in China and Korea, which are competitive strongholds for Photronics. Gross margin of 31% reflects the combination of operational leverage inherent in our financial model driven by our significant fixed cost infrastructure as well as product mix. Operating margin was 20%.

我們預期未來幾年顯示市場成長將加速，因G8.6 AMOLED應用的趨勢日益增加。顯示市場成長主要集中在中國與韓國，這些是Photronics的競爭優勢據點。31%的毛利率反映了我們財務模型中由重大固定成本基礎設施所帶來的營運槓桿效益，以及產品組合的共同影響。營業利益率為20%。

Diluted GAAP EPS attributable to Photronics shareholders was $0.54 per share. Excluding foreign exchange impacts, non-GAAP diluted EPS was $0.42 per share. The strong performance of our display operations contributed to our earnings during the quarter. Operating cash flow of $47 million equates to a healthy 22% of revenue. CapEx was $46 million, reflecting investments in Korean expansion to support 8-nanometer production, the installation of new equipment in Allen, Texas, end-of-life tool upgrades and facility optimization initiatives.

歸屬於Photronics股東的稀釋後GAAP每股盈餘為每股0.54美元。排除匯率影響後，非GAAP稀釋後每股盈餘為每股0.42美元。我們顯示業務的強勁表現推動了本季的獲利。營運現金流為4,700萬美元，相當於營收的22%，表現健康。資本支出為4,600萬美元，反映了韓國擴產以支援8奈米生產、在德州艾倫（Allen）安裝新設備、汰役工具升級，以及廠務優化計畫等投資。

As we have previously discussed, we have entered a period of elevated capital investments to drive future organic growth. Our initiatives in the US and Korea as endorsed by our customers will further strengthen our ability to capitalize on growth trends, including surging AI applications, increased captive outsourcing high-end node migrations, geographic diversification and regionalization.

如同我們先前所討論的，我們已進入資本投資提高的期間，以推動未來的內生成長。在客戶支持下，我們在美國與韓國的計畫將進一步強化我們掌握成長趨勢的能力，包括AI應用激增、更多自有產能外包與高階節點遷移、地理多元化與區域化。

We maintain our fiscal 2026 CapEx guidance of $330 million with elevated CapEx focused on strategic investments in the US and Korea along with peak end-of-life tool upgrades. Given the favorable long-term secular growth outlook of the photomask market, we continue to evaluate additional investment opportunities to further support our strategic priorities and long-term growth objectives. We will provide additional details as appropriate if and when we decide to move forward with these potential projects. Total cash and short-term investments remained flat at $638 million, including $477 million held within our joint ventures in which we hold a 50.01% ownership interest. Our capital allocation strategy remains focused on three priorities.

我們維持2026會計年度資本支出指引為3.30億美元，較高的資本支出將聚焦於美國與韓國的策略性投資，以及汰役工具升級的高峰期。鑑於光罩市場長期結構性成長前景看好，我們持續評估額外投資機會，以進一步支持我們的策略重點與長期成長目標。若我們決定推進這些潛在專案，我們將在適當時機提供更多細節。現金與短期投資總額維持在6.38億美元不變，其中包含我們持股50.01%的合資企業內持有的4.77億美元。我們的資本配置策略仍聚焦於三項優先事項。

Reinvestment in the business to support organic growth, pursuing strategic opportunities and returning capital to shareholders. We will continue to evaluate the most effective use of our cash and remain disciplined and opportunistic in our capital allocation decisions prioritizing investments that offer the highest expected returns.

再投資於業務以支持內生成長、追求策略性機會，以及回饋資本給股東。我們將持續評估現金的最有效用途，並在資本配置決策上保持紀律且把握機會，優先投資於預期報酬最高的項目。

With respect to internal reinvestment, we will continue to emphasize projects that support future revenue growth and enhance long-term shareholder value. Before providing guidance, I'd like to remind you that demand for our products is inherently variable. Visibility remains limited with a typical backlog of only one to three weeks. Additionally, high-end mass sets carry significantly higher ASPs, meaning even a small number of orders can materially impact revenue and earnings. Demand is also influenced by IC and display design activity and to a lesser extent, by wafer and panel capacity dynamics.

就內部再投資而言，我們將持續強調可支持未來營收成長並提升長期股東價值的專案。在提供指引之前，我想提醒各位，我們產品的需求本質上具有波動性。能見度仍然有限，典型在手訂單通常僅有一到三週。此外，高階量產光罩組（mass sets）的平均售價（ASP）顯著較高，意味著即使少量訂單也可能對營收與獲利造成重大影響。需求亦受IC與顯示器設計活動影響，並在較小程度上受晶圓與面板產能動態影響。

Given current market conditions and the influence of elevated AI demand on fab utilization and therefore, design starts, we expect fiscal Q3 revenue to be in the range of $207 million to $215 million. Based on those revenue expectations and our operating model, we estimate fiscal Q3 operating margin between 18% and 20% and non-GAAP diluted EPS between $0.39 and $0.45 per share.

考量目前市場狀況，以及AI需求攀升對晶圓廠稼動率、進而對設計啟動（design starts）的影響，我們預期第三會計季營收將落在2.07億至2.15億美元之間。基於上述營收預期與我們的營運模型，我們估計第三會計季營業利益率介於18%至20%，非GAAP稀釋後每股盈餘介於每股0.39至0.45美元。

I will now turn the call over to the operator for your questions.

接下來我把電話交給接線員，開始問答。

(Operator Instructions)

(接線員指示)

Maxwell Michaelis, Lake Street Capital Markets.

Lake Street Capital Markets 的 Maxwell Michaelis。

Hey, guys. Thanks for taking my questions. First one from me. In terms of visibility, when did things really start to get clouded in the quarter, just given the guidance for Q2 came in a little bit below that. So really when to visibility become cloud in the quarter?

嗨，各位。謝謝讓我提問。我第一個問題。就能見度而言，考量第二季指引結果略低於原先水準，本季到底是從什麼時候開始變得比較不明朗？所以本季能見度究竟是何時開始變得不明朗？

Max, this is Eric. Thanks for the question. So it really started becoming cloudy when the conflict with Iran and the US started during the quarter. Then after that, we started seeing fab utilization was also affecting us. Go ahead, please.

Max，我是Eric。謝謝你的問題。本季當美國與伊朗的衝突開始時，情況就真的開始變得不明朗。之後，我們也開始看到晶圓廠稼動率同樣對我們造成影響。請繼續。

Max, I'd like to comment more on this. Typically, we have a very strong booking before the Chinese New Year. And after Chinese New Year, there will be a temporary slowdown. But this year, the slowdown after Chinese New Year is much longer than we anticipated. Of course, the headwinds, as George and Eric reported highlight, maybe the factors causing this longer slowdown in the tape out after Chinese New Year. So we do see the slowdown right after Chinese New Year, which is in end of February.

Max，我想再補充一下。通常我們在農曆新年前會有非常強勁的接單。而農曆新年後會出現短暫放緩。但今年農曆新年後的放緩時間比我們預期長得多。當然，正如George與Eric所提到的逆風因素，可能就是造成農曆新年後tape-out放緩時間拉長的原因。因此我們確實在農曆新年後立刻看到放緩，而那大約是在2月底。

End of February, Okay. And then I guess my second question and a follow-up to that would be when you're talking to your customers, I mean, have they given you any sort of rough timeline of when they expect to bring in these new designs? Or is it they still have no idea either.

2月底，了解。那我的第二個問題、也是延伸追問：你們在與客戶溝通時，他們有沒有給出任何大致的時間表，說他們預期何時會導入這些新設計？還是他們也同樣沒有頭緒？

Our customers actually are still optimistic about the midterm outlook. However, in the near term, the visibility remains kind of limited. So we see a lot of delays in tape-outs in Q2. However, at the beginning of Q3, we did see some recovery of those delays. A lot of tape-outs have happened since beginning of May. However, going forward, we remain very cautious. But at this moment, customer still optimistic about the midterm outlook.

我們的客戶其實對中期展望仍然樂觀。不過在短期內，能見度仍相當有限。因此我們在第二季看到許多tape-out延遲。然而在第三季初，我們確實看到部分延遲有所回補。自5月初以來，已發生了不少tape-out。但展望未來，我們仍然非常謹慎。不過就目前而言，客戶對中期展望仍然樂觀。

Okay, I'll take the rest of my offline. Thank you.

好的，其餘我會私下再問。謝謝。

Gowshi Sriharan, Singular Research.

Singular Research 的 Gowshi Sriharan。

Good morning, gentlemen. Can you guys hear me?

各位先生早安。你們聽得到我嗎？

Yes, we can.

是的，我們可以。

Okay, thank you. I just wanted to get these customers that are deferring designs. Are they -- were they already in the pipeline? Or is this more about new designs that are starting to slow down? And do those recovery times differ?

好的，謝謝。我只是想了解一下這些延後設計的客戶。他們——他們原本已經在管線裡了嗎？還是這更多是關於新設計開始放緩？而且這些復甦時間是否有所不同？

Yes, actually, whenever customer make a new design, they tape out the data to the foundry fab, then the foundry fab give the order to the mask house they select. This time, the new design slowdown actually happened at the end of the foundry customer namely the design house. So the design house actually has a slower new tape out and new design release. So it's not in a pipeline. It's at the very beginning of the new design release.

是的，實際上，每當客戶做一個新設計時，他們會把資料 tape-out 到晶圓代工廠，接著晶圓代工廠會把訂單下給他們所選的光罩廠。這一次，新設計放緩其實發生在晶圓代工客戶的末端，也就是設計公司。所以設計公司在新的 tape-out 與新設計釋出方面確實變慢了。因此這不在管線中。而是在新設計釋出的最一開始階段。

Eric, on the margin compression side are there any specific levers you guys can pull if the demand kind of stays soft for another couple of quarters. Are there any variable cost reductions available or is it fundamentally a cost business that these utilization to recover?

Eric，在毛利率被壓縮這一塊，如果需求在接下來幾季仍偏弱，你們是否有任何特定的槓桿可以拉動？是否有任何可變成本可以降低，還是這本質上就是一個成本型業務，只能等稼動率回升？

Yes, very little levers we can pull. I mean it's really the product mix that will be available to the market gives us is what we'll have. Most of our cost is fixed or a big portion of it anyway is very fixed. So we don't have much levers to pull there.

是的，我們能拉動的槓桿非常少。我的意思是，基本上就是市場能提供給我們的產品組合是什麼，我們就會是什麼。我們的大部分成本是固定的，或至少很大一部分是非常固定的。所以在那方面我們沒有太多槓桿可以拉動。

Got you. And on the Allen side -- so if we the Allen qualifies so if Allen begins delivering qualifications masks as planned and the demand kind of stays of till early 2027, does bringing the new Allen capacity online to a weak demand environment kind of adds depreciation costs making margins even more compressor? Is there the Allen cost structure kind of light enough at the qualification state that is a meaningfully impact P&L until commercial production begins?

了解。另外在 Allen 方面——如果 Allen 如期完成認證並開始交付認證用光罩，而需求一直偏弱到 2027 年初，把新的 Allen 產能在需求疲弱的環境下上線，是否會因折舊成本增加而讓毛利率被壓縮得更嚴重？還是說 Allen 在認證階段的成本結構夠輕，直到開始商業量產前，對損益表不會有顯著影響？

Yes, so the Allen expansion already started -- we started qualifications already in Q3. So everything is moving according to our timeline. We expect revenue generation to occur later in the year, and we do not expect that the current economic environment will depress the returns that we're expecting on our island expansion in the current year or in the next at the moment.

是的，Allen 擴建已經開始——我們在第三季就已經開始做認證。所以一切都依照我們的時程在推進。我們預期今年稍晚會開始產生營收；而就目前來看，我們不預期當前的經濟環境會在今年或明年壓低我們對此次廠區擴建所預期的報酬。

I'd like to add some comments to your question. Our area expansion is not only capacity expansion. We are upgrading our technology. So the qualification basically is for the technology, which Allen cannot do at this moment. So once we qualify the customer, I think we will increase our market share in technology node, which Allen cannot produce right now.

我想對你的問題補充一些說明。我們的廠區擴建不只是產能擴充。我們也在升級技術。所以這個認證基本上是針對技術，而 Allen 目前還做不到。因此一旦我們完成客戶認證，我認為我們會在技術節點上提高市占率，因為 Allen 現在還無法生產那些。

Also another purpose of the Allen expansion is we are planning to transfer some lower end of the high-end order -- sorry the high end of the mainstream from our Boise site to Allen. So we can spare more capacity in our Boise side to take higher ASP orders. So this is a win for Boise site and also a win for the Allen site.

另外，Allen 擴建的另一個目的，是我們計畫把一些較低階的高階訂單——抱歉，是把主流產品中的較高階部分——從 Boise 廠轉到 Allen。如此一來，我們就能在 Boise 端釋出更多產能來承接 ASP 更高的訂單。所以這對 Boise 廠是雙贏，對 Allen 廠也是雙贏。

And in terms of the memory supply constraints and OEM cost pressure headwinds I curious as to see whether you're seeing this evenly across your geography, for example, are your US customers, Korean customers are behaving differently to your Chinese and Taiwan foundry customer in terms of deferring thesis? Or is it the passive based across all regions?

關於記憶體供應吃緊以及 OEM 成本壓力帶來的逆風，我想了解你們是否在各地區看到的情況一致；例如，美國客戶、韓國客戶，相較於中國與台灣的晶圓代工客戶，在延後這些事項上是否有不同的行為？還是說這是各區域普遍存在的？

Yes, the memory shortage and especially also the price surge has a huge negative impact on the consumer product, especially the low-end consumer product. So those are mainly in Asia. So I think this impact happened in Taiwan and also in China.

是的，記憶體短缺，尤其是價格飆升，對消費性產品有很大的負面影響，特別是低階消費性產品。而這些主要在亞洲。所以我認為這個影響發生在台灣，也發生在中國。

Thank you for the call. I'll jump back in the queue.

謝謝這通電話。我會回到隊列後面。

Christian Schwab, Craig-Hallum.

Christian Schwab，Craig-Hallum。

Yeah, great. Thanks. I understand the delays that you're seeing in design starts and thanks for all that clarity. But as we increase our capacity capabilities on lower geometry node chips, on kind of a medium-term basis. Can you give us an idea of either yearly revenue target or a market share goal?

好的，很棒。謝謝。我理解你們在設計啟動方面看到的延遲，也謝謝你們提供這麼清楚的說明。但當我們在較小幾何節點晶片的產能能力提升後，以中期來看，你們能否給我們一個概念，例如年度營收目標或市占率目標？

And then my second question along those lines is on the advanced node side is 7 or 8 nanometers is the best that we're going to be able to make? Or do we have aspirations to get down below that?

然後我第二個相關問題是，在先進節點方面，7 或 8 奈米是否就是我們能做到的最好水準？還是我們有志向再往下做到更小？

Thanks, Christian. This is Eric here. So starting with your last question first. In terms of our aspirations to go 8-nanometer, 7-nanometer, we're going to continue going down node I mean, we have to do that because that's the -- that's our industry. We have to continue investing and we see a lot of opportunity there. So definitely, we plan to go below those ranges. Now with respect to the revenue that we expect to get out of our Allen facility with our recent investments, I'm not going to get into detail of revenue by site from that perspective.

謝謝你，Christian。我是 Eric。我先從你最後一個問題回答。就我們往 8 奈米、7 奈米發展的企圖而言，我們會持續往更小的節點推進；我的意思是，我們必須這麼做，因為那就是——那就是我們這個產業。我們必須持續投資，而且我們看到那裡有很多機會。所以我們確實計畫做到比那些範圍更小。至於我們近期投資後，預期 Allen 廠能帶來的營收，我不會從廠區角度去細談各據點的營收細節。

But that should give us an opportunity to expand our market share in the US and we expect the US to be at least in '27, to be heading us in the -- from a revenue expansion perspective or percentage of increase should be larger in the US than anywhere else.

但這應該會讓我們有機會在美國擴大市占率；而我們預期至少到 2027 年，美國在營收擴張的角度——也就是成長幅度或增幅百分比——會比其他任何地區都更大。

We're working with customers to that end. Frank, maybe you'd like to elaborate.

我們正與客戶朝這個方向合作。Frank，也許你想補充說明。

Yes, George, yes, I think our investment not necessarily for the capacity only because we are seeing a lot of ongoing onshore semiconductor manufacturing in the States. And Photronics we are actually the very -- we have a very unique and strong position in the country because we have the Boise site, where we have the very advanced photomask technology. And also, we have the Allen site, where we can make mainstream photomask.

是的，George，是的，我認為我們的投資不一定只是為了產能，因為我們看到美國正在進行大量的半導體製造回流（onshore）。而 Photronics 在美國其實有非常——我們在這個國家有非常獨特且強勢的地位，因為我們有 Boise 廠，具備非常先進的光罩技術。同時我們也有 Allen 廠，可以製作主流光罩。

So the capacity expansion and the technology upgrade by our CapEx is to serve our company's goal we'd like to be the main photomask supplier in the United States.

因此，我們透過資本支出進行的產能擴充與技術升級，是為了達成公司的目標：我們希望成為美國主要的光罩供應商。

Great. Thank you for that clarity. No other questions.

很好。謝謝你這麼清楚的說明。沒有其他問題了。

And I would now like to turn the conference back to Ted for closing remarks.

現在我想把會議交回給 Ted 做結語。

Thank you, Tanya, and thanks, everyone, for joining on the call today. We really appreciate your interest in Photronics. Look forward to connecting with everybody throughout the quarter. Have a great day.

謝謝你，Tanya，也謝謝各位今天參與這通電話會議。我們非常感謝各位對 Photronics 的關注。期待在本季期間與各位保持聯繫。祝各位有美好的一天。

And this concludes today's program. Thank you for participating. You may now disconnect.

今天的節目到此結束。感謝各位參與。您現在可以斷線。