台積電 ADR (TSM) 2003 Q2 法說會逐字稿

Welcome to Taiwan Semiconductor Manufacturing Company Second Quarter 2003 Results Webcast Conference Call.

歡迎參加台積電 2003 年第二季度業績網絡廣播電話會議。

Today's event is hosted by Mr. Harvey Chang, Senior Vice President and Chief Financial Officer and Dr. Rick Tsai, President and Chief Operating Officer.

今天的活動由高級副總裁兼首席財務官 Harvey Chang 先生和總裁兼首席運營官 Rick Tsai 博士主持。

This conference call is being webcast live via the TSMC website at www.tsmc.com and only in audio mode.

本次電話會議通過台積電網站 www.tsmc.com 進行網絡直播，且僅以音頻模式進行。

Your dial-in lines also are in listen-only mode.

您的撥入線路也處於僅監聽模式。

At the conclusion of the management presentation, we will be opening the floor for questions.

在管理層演講結束時，我們將開始提問。

At that time, further instructions will be provided as to the procedure to follow if you will like to ask any questions.

屆時，如果您想提出任何問題，我們將提供有關應遵循的程序的進一步說明。

Please be advised for those participants who do not yet have a copy of the press release.

請尚未獲得新聞稿副本的與會者註意。

You may download it from TSMC's website at www.tsmc.com.

您可以從台積電的網站 www.tsmc.com 下載它。

Please also download the summary slides in relation to today's quarterly review presentation.

另請下載與今天的季度回顧演示相關的摘要幻燈片。

Once again the URL is www.tsmc.com.

URL 再次為 www.tsmc.com。

I would now like to turn the conference over to Dr. Elizabeth Sun, Head of Investor Relations for TSMC for the cautionary statement before the main presentation by Mr. Chang and Dr. Shih.

我現在想請台積電投資者關係主管伊麗莎白·孫博士在張先生和施博士進行主要演講之前發表警告性聲明。

Please go ahead.

請繼續。

Good morning and good evening to all participants this is Elizabeth Sun Head of Investor Relations for TSMC.

所有參與者早上好，晚上好，我是台積電投資者關係主管 Elizabeth Sun。

Before we begin, I would like to state that management's comments about TSMC's current expectations during -- made during this conference call are forward-looking statements subject to significant risk and uncertainties and that actual results may differ materially from those contained in the forward-looking statements.

在我們開始之前，我想聲明，管理層在本次電話會議期間對台積電當前預期的評論屬於前瞻性陳述，存在重大風險和不確定性，實際結果可能與前瞻性陳述中包含的結果存在重大差異。聲明。

Information up to those factors that could cause actual results to differ materially from TSMC's forward-looking statements may be found in TSMC's annual report on Form 20-F filed with the United States Securities and Exchange Commission on June 23, 2003, and such other documents that the company may file with our submit to the SEC from time to time, and now I would like to the conference call over to Mr. Harvey Chang, our Senior Vice President and Chief Financial Officer.

有關可能導致實際結果與台積電前瞻性陳述產生重大差異的因素的信息，可以在台積電於 2003 年 6 月 23 日向美國證券交易委員會提交的 20-F 表格年度報告以及此類其他文件中找到。公司可能會不時向美國證券交易委員會提交文件，現在我想將電話會議交給我們的高級副總裁兼首席財務官 Harvey Chang 先生。

Welcome to our second quarter conference call.

歡迎參加我們的第二季度電話會議。

Let me begin this conference call by giving you the highlight of our 2003 second quarter operating results.

在本次電話會議開始時，我首先向大家重點介紹 2003 年第二季度的經營業績。

Our second quarter, total revenue amounted to $49.9b NT and net income after tax is roughly $11.7b NT.

我們第二季度的總收入為新台幣 49.9 億元，稅後淨利潤約為新台幣 117 億元。

Earnings per share is 58 cents NT.

每股收益為新台幣58美分。

At the end of second quarter, [inaudible] $69.6b NT cash.

第二季度末，[聽不清]新台幣現金為 69.6 億美元。

Our total long-term debt remained unchanged at about 35b.

我們的長期債務總額保持在 35b 左右不變。

During the second quarter total wafer shift is 887,000 wafers versus 694,000 in the first quarter.

第二季度晶圓轉移總量為 887,000 片，而第一季度為 694,000 片。

On the utilization several [inaudible] indicated to us that if we only disclose our overall utilization, as we had in the past, it is difficult for them to figure out -- to model that our gross margin.

關於利用率，一些[聽不清]向我們表示，如果我們像過去那樣只披露我們的整體利用率，他們就很難弄清楚——對我們的毛利率進行建模。

So we tried to make.

所以我們嘗試著製作。

So starting from second quarter that we will also disclose the utilization rate of the fab that directly own and operated by TSMC, which are the most [relevant] numbers to gross margin.

所以從第二季度開始，我們也會披露台積電直接擁有和運營的晶圓廠的利用率，這是與毛利率最相關的數字。

Also, When we calculate the overall utilization we are no longer taking the [inaudible] capacity to consideration because that could be another distorting factor.

此外，當我們計算總體利用率時，我們不再考慮[聽不清]容量，因為這可能是另一個扭曲因素。

And after all these adjustments now our overall utilization for the second quarter that is on the TSMC fab plus [inaudible] plus [wafer tax] and [SSMC] but not including [inaudible].

經過所有這些調整，現在我們第二季度的總體利用率是台積電晶圓廠加上[聽不清]加上[晶圓稅]和[SSMC]，但不包括[聽不清]。

That will be 88% and as to fab directly owned and operated by TSMC.

這將是 88%，其中晶圓廠由台積電直接擁有和運營。

Utilization values are higher at 90%.

利用率高達 90%。

Let's go to the second page.

讓我們轉到第二頁。

If we do a year-over-year comparison, compared to second quarter last year, our revenue grew roughly 13% primarily because [workers] shipment grew 15% versus last year and utilization compared to last year were 85.2% [fairly close] and the gross margin eventually closed at 37%.

如果我們進行同比比較，與去年第二季度相比，我們的收入增長了大約 13%，主要是因為 [workers] 發貨量比去年增長了 15%，利用率與去年相比為 85.2% [相當接近]，並且毛利率最終收於37%。

Operating expense also those at the level of roughly 10%.

運營費用也維持在10%左右的水平。

As to non-operating expense.

至於營業外支出。

This year second quarter non-op is roughly $1.3b higher and I will talk about it a little bit later why there is an increase of $1.3b.

今年第二季度非運營費用大約上漲了 1.3b 美元，稍後我將討論為什麼會增加 1.3b 美元。

As to profit before tax is $12.5b and profit before tax margin is actually, roughly the same as last year that is 25% and the tax expense there is a significant difference in income tax primarily because the tax on source [inaudible].

至於稅前利潤為 12.5b 美元，稅前利潤率實際上與去年大致相同，即 25%，而且所得稅費用存在顯著差異，主要是因為來源稅 [聽不清]。

They had a such a interpretation down from weekend or prior to tax credit, that is only in this year.

他們從周末或稅收抵免之前就有了這樣的解釋，那隻是在今年。

Actually, we also had a fairly deep [inaudible] for the first quarter release because of this change in laws interpretation we and [inaudible] more useable type of credits than the last year.

實際上，由於法律解釋的這種變化，我們在第一季度的發布中也有相當深入的[聽不清]，我們和[聽不清]比去年更可用的積分類型。

As a result our tax expense for this quarter is $0.8b with the last year of $1.6b.

因此，本季度我們的稅費為 0.8b 美元，去年為 1.6b 美元。

So less significant reduction in our tax expense as a result our net profit after tax margin is about 2% higher than the last year.

因此，我們的稅費減少幅度較小，因此我們的稅後淨利潤比去年高出約 2%。

On a sequential comparison basis if we compare the second quarter result with the first quarter this year was improved roughly 27%, primarily because of [inaudible] in your wafer shipment from the 694,000 wafers to 887,000 wafers.

在連續比較的基礎上，如果我們將今年第二季度的結果與第一季度的結果進行比較，則提高了大約 27%，這主要是因為[聽不清]你們的晶圓出貨量從 694,000 片晶圓增加到 887,000 片晶圓。

The wafer shipment grew about 28%.

晶圓出貨量增長約28%。

Also, because [inaudible] to see the more advanced technology on our continue to grow where products are at [.018] or more advanced levels.

此外，因為[聽不清]我們的產品處於[.018]或更先進的水平，因此我們不斷發展更先進的技術。

Total revenue now really account for 62% of our total revenue.

現在總收入確實占我們總收入的62%。

The resolved ASP also went up by roughly 4% compared to financial [pacers], although the increase of wafer shipment that caused the revenue to grow, but those the non-wafer related revenue such as [Mac], [CP] testing their revenue growth rate is much lower than the 28% we see in the wafer shipment.

與金融[pacers]相比，已解決的ASP也上漲了約4％，雖然晶圓出貨量的增加導致收入增長，但那些非晶圓相關收入如[Mac]，[CP]測試了他們的收入增長率遠低於我們在晶圓出貨量中看到的28%。

That's another factor that is the sales recurrent provision in second quarter this year is much higher than the first quarter this year due to a one final reversal on the sales return may be in the first quarter.

另一個因素是，今年第二季度的銷售經常性撥備遠高於今年第一季度，因為銷售回報的最終逆轉可能會在第一季度發生。

And these two factors may fully accounted for the difference between the growth rate of the net sales then of wafer sales.

而這兩個因素可能充分解釋了當時晶圓銷售淨銷售額增長率的差異。

On the utilization, that utilization for this quarter is overall [inaudible] is 88% compared to last quarter of 69%, as this is a significant growth and gross margin also grew from 26% last -- first quarter to 37% in the second quarter.

在利用率方面，本季度的總體利用率[聽不清]為 88%，而上一季度為 69%，這是一個顯著的增長，毛利率也從上一季度的 26% 增長到第二季度的 37%四分之一。

On the non-operating expense as mentioned that we see a significant increase, primarily size down some of the facilities and equipment, then our cash to our Fab-7, which is of the older aiding [fab] we have, and we write-down $1.2m on the asset value.

關於非運營費用，如上所述，我們看到顯著增加，主要是縮小了一些設施和設備的規模，然後我們將現金投入到我們的 Fab-7，這是我們擁有的較舊的援助 [fab]，我們寫道：資產價值下降 120 萬美元。

As a result, our non-operating expense is about 1.08b higher than the first quarter.

因此，我們的營業外支出比第一季度高出約 1.08b。

On the investment income and losses, we -- during the second quarter we realized some of the equities that were originally invested by [Neustar] which is our venture capital for managers.

關於投資收益和損失，我們在第二季度變現了一些最初由 [Neustar] 投資的股票，這是我們為經理人提供的風險資本。

As a result, we have a significant special gain in this quarter which is roughly 1.5b and then offset by some of the operating losses incurred by Wafertech and SSMC that’s resolved from the [what's been] our loss [of positive] $0.8b compared to last quarter this is a much better result of the net income before tax is $12.5b which is 201% gross in the last quarter therefore after-tax also significant growth of 169%.

因此，我們在本季度獲得了顯著的特殊收益，約為 1.5b，然後被 Wafertech 和 SSMC 產生的一些運營虧損所抵消，這些虧損是由我們的 [正] 虧損 0.8b 與去年同期相比解決的。上季度的結果要好得多，稅前淨收入為 12.5b 美元，佔上季度毛利率的 201%，因此稅後也顯著增長了 169%。

The next slide will give you a picture of our balance sheet and some of the key financial ratios.

下一張幻燈片將為您展示我們的資產負債表和一些關鍵財務比率。

So there is no significant change on the balance sheet, end of the second quarter we feel that -- quite a lot of cash.

因此，資產負債表上沒有重大變化，第二季度末我們感覺——有相當多的現金。

Our financial structure remains quite healthy.

我們的財務結構仍然相當健康。

We are -- we virtually compare to operate as to a Japanese company.

我們實際上將其比作一家日本公司的運營。

Our receivable and [inventory], they are paying at a very healthy level and look at the ratio that ROEs improved from last quarter 5.8% to 15.7%, [ROA] had a significant improvement.

我們的應收賬款和[庫存]，他們支付的水平非常健康，看看ROE的比率從上季度的5.8%提高到15.7%，[ROA]有了顯著的改善。

And on the cash flow, which is the next slide that you will see that we continue to generate strong cash flows from operations.

在現金流方面，您將在下一張幻燈片中看到我們繼續從運營中產生強勁的現金流。

During the second quarter, net cash flow from operations is $23b including $11.7 from net profit, and $15.5 from depreciation and amortization.

第二季度，運營淨現金流為 23b 美元，其中淨利潤 11.7 美元，折舊和攤銷 15.5 美元。

And for expenditure during the quarter $7.2b, and also during the quarter we regained $13b preferred share, also [saved] roughly $0.5b [inaudible].

本季度的支出為 7.2b 美元，並且在本季度我們重新獲得了 13b 美元的優先股，還[節省]了大約 0.5b 美元[聽不清]。

Finally, we released our June revenue number about two weeks ago.

最後，我們大約兩週前發布了 6 月份的收入數據。

After that, there were some analysts speculating that we end-up with very high inventory end of June.

此後，有一些分析師猜測我們最終在六月底的庫存非常高。

So, the fifth slide is explaining that because that estimate is wrong, we actually -- our inventory has very good growth.

因此，第五張幻燈片解釋說，由於該估計是錯誤的，所以我們實際上 - 我們的庫存有非常好的增長。

In terms of days inventory we have already shown that the days inventory is about 38 days versus 37 in the first quarter.

就庫存天數而言，我們已經表明庫存天數約為 38 天，而第一季度為 37 天。

As far as the absolute dollar value is concerned the total inventory at the end of second quarter is roughly $11.3b versus the $10.1 last quarter.

就絕對美元價值而言，第二季度末的總庫存約為 11.3b 美元，而上季度為 10.1 美元。

I think I should take the opportunity to reiterate that.

我想我應該藉此機會重申一下這一點。

Lets turn to the [business] side, a quick look at our revenue breakdown by technology and you will see the most noticeable is [inaudible] the 0.13 micron product now during the second quarter are really accounting for 17%.This is the 11% of this quarter.

讓我們轉向[業務]方面，快速瀏覽一下我們按技術劃分的收入細分，您會發現最引人注目的是[聽不清]第二季度的0.13微米產品實際上佔了17％。這是11％本季度的。

And then total of 0.18 and the more advanced technology 0.18, 0.15 and 0.13, altogether they now account for 62% of total revenue that is 53% in the first quarter.

然後總計為0.18，以及更先進的技術0.18、0.15和0.13，它們現在總共佔總收入的62%，第一季度為53%。

If you look at the breakdown by application from computer, communication and consumers, the second quarter actually we see a similar growth from 13-16%.

如果你看一下計算機、通信和消費者應用程序的細分，你會發現第二季度實際上我們看到了類似的增長，從 13% 到 16%。

Computer rose from 41-43%, Communication [inaudible] 38 down to 34%.

計算機從 41-43% 上升，通信 [聽不清] 38 下降到 34%。

A geographical breakdown actually, they stay pretty much the same as the first quarter this year.

實際上，按地域劃分，它們與今年第一季度幾乎保持不變。

North America was 76%, second quarter to 77%.

北美地區為76%，第二季度為77%。

Second quarter;

第二季度;

Europe 4%, and Asia Pacific 12%, and Japan 7%.

歐洲 4%，亞太地區 12%，日本 7%。

Breakdown by customer type;

按客戶類型細分；

Fabless versus IDM, it goes in computer as long as consumer seems to be favoring more the Fabless customers.

Fabless 與 IDM 相比，只要消費者似乎更青睞 Fabless 客戶，它就會進入計算機領域。

So, the second quarter for Fabless customer actually revenue generated for them accounted for 73%, which was 68% in the first quarter.

因此，第二季度Fabless客戶實際為他們產生的收入占到了73%，而第一季度為68%。

IDM; 26%, was at 32%.

集成設備管理； 26%，之前為 32%。

The next chart actually saw [inaudible] ASP trend but because [we built] on adjustments on the utilization.

下一張圖表實際上看到了[聽不清] ASP 趨勢，但因為[我們]建立在對利用率的調整之上。

So, actually this is a new chart which we [inaudible].

所以，實際上這是我們[聽不清]的新圖表。

It is the new definition to figure out the fabulous fab [inaudible] utilization the past six quarters and put it on the chart for your reference.

這是一個新的定義，可以計算出過去六個季度的驚人晶圓廠[聽不清]利用率，並將其放在圖表上供您參考。

And ASP [inaudible].

和 ASP [聽不清]。

We will see the in-store capacity by fabs.

我們將看到晶圓廠的店內產能。

You will see that our actual capacity during last quarter, that’s the second quarter this year is about 590,000 wafers. [Capacity] right now, we have [inaudible] this quarter it is 1,012,000 wafers.

你會看到我們上個季度，也就是今年第二季度的實際產能約為59萬片晶圓。 [產能] 目前，我們本季度的[聽不清] 為 1,012,000 片晶圓。

The last chart is actually a recap of the major events during second quarter and the first -- early part of July.

最後一張圖表實際上是對第二季度和第一季度（七月初）主要事件的回顧。

And I will leave that to your reference.

我將把它留給你參考。

Finally, I think we come to our guidance for the third quarter.

最後，我認為我們得出了第三季度的指導。

As we look into the third quarter, we basically feel that the third quarter will be a pretty good quarter.

當我們展望第三季度時，我們基本上認為第三季度將是一個非常好的季度。

Although it is [inaudible] already means that we see a very strong quarter in the second quarter.

儘管[聽不清]已經意味著我們在第二季度看到了非常強勁的季度。

Third quarter, we actually [inaudible] high-single digit percentage point on a sequential basis that is -- it can be anywhere between 5-9%.

第三季度，我們實際上[聽不清]按順序計算的高個位數百分點——它可能在 5-9% 之間。

Our ASP;

我們的ASP；

I think ASP will stay firm, and the potential may be for marginal improvement.

我認為平均售價將保持穩定，並且有可能略有改善。

Revenue from advanced-process technology should account for approximately 2/3 of total revenue, an improvement of approx. 62% over 2Q03. for [inaudible] performances, they showed account worth of [inaudible] this quarter, also those full board utilization rate including wafer tax and [inaudible] that is managed well [inaudible] on TSM's [inaudible] was entirely [90%]. [inaudible] utilization was slightly higher than overall.

先進工藝技術的收入應佔總收入的約2/3，提高了約2/3。比 2003 年第二季度增長 62%。對於[聽不清]的表現，他們顯示了本季度[聽不清]的賬戶價值，而且包括晶圓稅在內的全部董事會利用率和[聽不清]在TSM的[聽不清]上管理良好[聽不清]完全是[90%]。 [聽不清]利用率略高於總體利用率。

We managed an improve in cellular and communications [inaudible] we expect softness on the cellular side.

我們在蜂窩和通信方面取得了進展[聽不清]，我們預計蜂窩方面會出現軟化。

Capital expenditure we have indicated number of [inaudible] just to expect that we are in the range of 1-1.5b.

我們已經指出了 [聽不清] 的資本支出數量，只是希望我們在 1-1.5b 的範圍內。

Now I have seen that we already entering the first quarter.

現在我看到我們已經進入第一季度了。

Right now this is the estimate is that we should be near to the mid point. [inaudible] so we should be close to 1.25.

現在估計我們應該接近中點。 [聽不清] 所以我們應該接近 1.25。

That's my presentation today and since we will open it up for questions. [inaudible] if you have anything to have.

這就是我今天的演講，我們將開放提問。 [聽不清]如果你有什麼東西的話。

No, I think we should proceed.

不，我想我們應該繼續。

Thank you.

謝謝。

At this time, we will open the floor for questions.

現在，我們將開始提問。

If you will like to ask a question, please press the "*" then "1" on your touchtone phone now.

如果您想提問，請立即按按鍵式電話上的“*”，然後按“1”。

Questions will be taken in the order in which they are received.

問題將按照收到的順序進行處理。

If at anytime you will like to remove your question from the questioning queue, please press "*" then "2."

如果您隨時想從提問隊列中刪除您的問題，請按“*”，然後按“2”。

Please limit your questions to one at a time to allow all participants an opportunity to ask questions of the management members.

請將您的問題限制為一次一個，以便所有參與者都有機會向管理人員提問。

One moment please for the first question.

請稍等一下第一個問題。

And our first question comes from Shekhar Pramanick with Prudential.

我們的第一個問題來自保誠集團的 Shekhar Pramanick。

Please go ahead with your question.

請繼續你的問題。

Yes Hi.

是的嗨。

Good evening.

晚上好。

Two sets of questions, Rick, first question for Rick.

兩組問題，瑞克，第一個問題是瑞克的。

Could you give us a little color how the wafer stocks have been trending in last couple of weeks and what you expect forward.

您能否告訴我們過去幾周晶圓庫存的趨勢以及您對未來的預期。

The second question, do you expect first two movements in Fab 12 Phase II than Fab 14?

第二個問題，您預計Fab 12二期的前兩次動作是否會比Fab 14好？

Wafer fab movement is pretty steady -- I mean as we guided in our guidance that we should -- we are running at about over 90% of utilization, so that is steady.

晶圓廠的運轉相當穩定——我的意思是，正如我們在指導中所指導的那樣——我們的利用率約為 90% 以上，所以這是穩定的。

Fab 12, Phase II versus Fab 14 -- I mean we are still working on the RF capacity trend for next year, but if -- I would expect we will feel of course Fab 12 phase I up to certain level now we have Fab 14.

Fab 12 第二階段與 Fab 14 的比較——我的意思是我們仍在研究明年的射頻產能趨勢，但是如果——我希望我們會感覺 Fab 12 第一階段達到一定水平，現在我們有 Fab 14 。

Since the Fab 14 just about everything is ready including the [inaudible] and the facility, but the timing of the startup yet to be decided.

自 Fab 14 以來，一切都已準備就緒，包括[聽不清]和設施，但啟動時間尚未確定。

My last question, you know, the third quarter looks like computer is -- percentage of going of a mix is somewhat going down and consumer and communication is getting stronger.

我的最後一個問題，你知道，第三季度看起來計算機的混合比例有所下降，而消費者和溝通正在變得更強。

Do you think that somewhat change into the Q4 based on kind of expectation you have at this point?

您認為基於您目前的期望，第四季度會發生一些變化嗎？

No the Q4 number is not that clear yet Its not that clear yet.

不，第四季度的數字還不是那麼清楚。它還不是那麼清楚。

We -- [inaudible], you know, is roughly 2-3 months, but we don't expect this pattern to be very attractive though.

我們——[聽不清]，你知道，大約是 2-3 個月，但我們預計這種模式不會非常有吸引力。

It’s actually for some quarter computed number all over a little down, but I wouldn't call that a major down, its flattish, probably another way of describing that.

實際上，某些季度的計算數字略有下降，但我不會稱其為重大下降，它很平坦，可能是另一種描述方式。

Right.

正確的。

Thank you.

謝謝。

I think the question is eventually obvious that probably during the fourth quarter the consumer segment will continue to grow.

我認為問題最終很明顯，第四季度消費者細分市場可能會繼續增長。

But there is -- it’s a hard way to predict that the growth rate computer versus communication.

但是，很難預測計算機與通信的增長率。

Thank you.

謝謝。

Thank you.

謝謝。

Our next question comes from Mark Fitzgerald with Bank of America Securities.

我們的下一個問題來自美國銀行證券公司的馬克·菲茨杰拉德。

Please go on with your question.

請繼續你的問題。

Can you give us some sense what's going on in the trailing-edge technologies and from a pricing point of view and particularly from a competitive point of view for the Chinese foundry showing up in that segment?

您能否從定價的角度，特別是從中國代工廠在該領域的競爭角度，向我們介紹一下前沿技術的發展情況？

Can you define trailing technology a little better [inaudible] geometry--?

您能否更好地定義尾隨技術[聽不清]幾何形狀--？

Less than 0.18 micron or greater than 0.18 micron.

小於 0.18 微米或大於 0.18 微米。

Greater than 0.18.

大於0.18。

Okay, as Chenming said in the in the [optimum] basis, of course, our utilizations for our 0.25 remains lower than we like.

好吧，正如陳明在[最佳]基礎上所說，當然，我們 0.25 的利用率仍然低於我們希望的水平。

However, [Dave], in second quarter, it is still receptacle I think above 80% for both technology [nodes].

然而，[Dave]，在第二季度，我認為這兩種技術 [節點] 仍然是 80% 以上的容器。

Pricing, of course, we continue to keep pricing pressure for all technologies and we are seeing some competition from different foundries.

當然，定價方面，我們繼續對所有技術保持定價壓力，並且我們看到來自不同代工廠的一些競爭。

But I think we are still able to -- we feel technology is, as I said earlier, above and beyond 80%.

但我認為我們仍然能夠——正如我之前所說，我們認為技術已經超過 80%。

Do you see SMIC in chasing Taiwanese design houses that might be customers for you?

您是否認為中芯國際正在追逐可能成為您客戶的台灣設計公司？

I think it is [chasing] many different customers be they in Taiwan or in the U.S. or elsewhere.

我認為它正在[追逐]許多不同的客戶，無論他們是在台灣、美國還是其他地方。

Thank you.

謝謝。

Yeah

是的

Thank you.

謝謝。

Our next question comes from Timothy Arcuri with Deutsche Bank.

我們的下一個問題來自德意志銀行的蒂莫西·阿庫裡。

Please go ahead with your question.

請繼續你的問題。

Hi guys.

嗨，大家好。

Actually I have two questions.

其實我有兩個問題。

First of all, to make your full year CAPEX guidance, you have to have CAPEX up about 68% if you look at the second half versus the first half.

首先，要製定全年資本支出指導，如果比較下半年與上半年的情況，則資本支出必須增長約 68%。

Could you give us an idea of how much of that is already committed with your suppliers?

您能否告訴我們您的供應商已經承諾了多少？

[inaudible].

[聽不清]。

I would say that most of them already committed.

我想說他們中的大多數人已經承諾了。

So you would say that most of that has already been ordered, and there is just a small amount -- there is a small amount left over to order?

那麼你會說大部分已經訂購了，只有少量——還有少量需要訂購？

Well no.

好吧，不。

The way we define capital expenditure, you need to be very careful about this.

我們定義資本支出的方式，你需要非常小心。

We are talking about actual payments.

我們正在談論實際付款。

Actually, there is a time lag there.

事實上，這裡面有一個時間差。

So don’t get so excited about it because these are [inaudible] the lower number of [CH] in the first half are actually the slower activities that we experienced a second half lag here.

因此，不要對此感到如此興奮，因為這些[聽不清]上半場的[CH]數量較少，實際上是我們在這裡經歷了下半場滯後的較慢的活動。

And the higher number you see eventually are the activities of first half this year.

最終你看到的數字更高的是今年上半年的活動。

Sure.

當然。

Okay.

好的。

Well, can you then give us an idea of what your commitments or what your order patterns might look like in the second half of the year versus in the first half of the year?

那麼，您能否告訴我們您的承諾或您的訂單模式在下半年與上半年可能會是什麼樣子？

Go ahead.

前進。

Actually, I don't have the number with me.

事實上，我身上沒有這個號碼。

And I am -- I just worry that the actual -- I think several portion will be [inaudible] to sort of reconcile how we present it because this can be easily confusing people, and I rather not talk about it.

我 - 我只是擔心實際情況 - 我認為有幾個部分將[聽不清]以某種方式協調我們如何呈現它，因為這很容易使人們感到困惑，而且我寧願不談論它。

Okay.

好的。

And maybe if I can put one more question in.

也許我可以再問一個問題。

You know, you've indicated that you've been trying to hold off for kind of 90% utilization before your order for more capacity.

您知道，您已表示在訂購更多容量之前，您一直試圖推遲 90% 的利用率。

What do the equipment lead times look like right now?

現在設備的交貨時間是怎樣的？

And how long can you continue to hold off given that you're going to be at or above 90% in Q3?

鑑於您將在第三季度達到或超過 90%，您還能繼續推遲多久？

Are you are talking about--

你是在說——

And you are talking 90nm?

你說的是90nm？

No, no.

不，不。

I am just kind of talking about all over--

我只是在談論一切——

Okay, I am sorry.

好吧，對不起。

Okay Rick, please carry on.

好的，瑞克，請繼續。

I think equipment lead time depending on of course the equipment.

我認為設備交貨時間當然取決於設備。

The longest one may go up to seven, about eight months, the shorter one of course three months or so.

最長的可能長達七、八個月左右，短的當然是三個月左右。

So we are managing that very carefully.

所以我們正在非常謹慎地管理這一點。

We can work it very closely with our [inaudible].

我們可以與我們的[聽不清] 密切合作。

And we have been able to get their cooperation to control the lead time to the level that we can manage our capacity build up to a reasonable flexibility.

我們已經能夠得到他們的合作，將交貨時間控制在我們可以管理我們的產能建設到合理靈活性的水平。

Okay thanks.

好的謝謝。

Thank you, our next question comes from Parnab Sharma with Daiwa Institute of Research.

謝謝，我們的下一個問題來自大和研究所的 Parnab Sharma。

Please go ahead with your question.

請繼續你的問題。

Gentlemen congratulation for good second quarter results.

先生們祝賀第二季度取得良好業績。

I have one question about your Fab 7, it appears like the capacity on the Fab 7 is coming down, could you please elaborate a little bit like why you are reducing the capacity there?

我有一個關於你們 Fab 7 的問題，Fab 7 的產能似乎正在下降，您能否詳細說明一下為什麼要減少那裡的產能？

Well said, something is well as Harvey said earlier all the eight-inch facility and -- we although, and although with older technology -- though we are -- so we try to upgrade other Fabs or increase our incremental capacity in other Fabs.

說得好，正如哈維早些時候所說，所有八英寸設施都很好，而且儘管我們採用了較舊的技術，但我們確實如此，因此我們嘗試升級其他晶圓廠或增加其他晶圓廠的增量產能。

So, in some cases, we have to move some equipment around.

所以，在某些情況下，我們必須移動一些設備。

So, are you disposing some equipment from Fab 7 now?

那麼，你們現在正在處理 Fab 7 的一些設備嗎？

Well, we have continuous look at the situation and we move the equipment, we didn't move the equipment from Fab 7 to other Fabs.

嗯，我們一直在觀察情況，我們轉移了設備，我們沒有將設備從 Fab 7 轉移到其他 Fab。

We are [inaudible]

我們[聽不清]

Probably we will be sending it to--

我們可能會將其發送至——

Upgrading it.

升級它。

Our retrofitting in those equipment is -- given the examples that we actually continue to increase our 0.18 technology capacity, with minimal capital expenditure and when we felt we will be able to do that, we are actually upgrading and [inaudible] that should effect 7 because we are tearing them apart and only those tools are and try to make better utilization of the data.

我們對這些設備的改造是 - 考慮到我們實際上以最小的資本支出繼續增加我們 0.18 技術能力的例子，當我們認為我們能夠做到這一點時，我們實際上正在升級並且[聽不清]這應該會影響 7因為我們正在將它們分開，只有這些工具才能更好地利用數據。

Okay.

好的。

Second question is on the mask and other product revenue side.

第二個問題是關於口罩和其他產品收入方面。

Would you elaborate like how many percentage of your revenue came from the mask on last quarter and whether your margins on -- gross margins on this product is comparable to your group level margin or to lower or higher than the group level margins?

您能否詳細說明一下，上個季度您的收入有多少百分比來自面膜，以及該產品的毛利率是否與您的集團水平利潤率相當，或者低於或高於集團水平利潤率？

Well they are -- well basically at along the 10% plus/minus 2% level each quarter.

嗯，基本上是每個季度 10% 正負 2% 的水平。

So they -- which is a very -- a little bit from quarter-to-quarter, but they are always in their range.

所以他們——每個季度都有一點點——但他們總是在他們的範圍內。

The margins from mask -- if I remember correctly they are pretty good, they are actually higher -- significantly higher than our wafers.

掩模的利潤——如果我沒記錯的話，它們相當不錯，實際上更高——明顯高於我們的晶圓。

On a [inaudible] they are probably bit lower.

在 [聽不清] 上，它們可能會低一些。

And today, I think, your chairman has mentioned about like your Low-K technology is leading ahead of IBM and could you give us some idea like whether you got some of the roadmaps of your customer, which probably was given to the IBM over the last 6 months has come back to you?

今天，我想，你們的主席提到你們的 Low-K 技術領先於 IBM，您能否給我們一些想法，比如你們是否獲得了客戶的一些路線圖，這些路線圖可能是在你還記得過去6個月嗎？

Any type of -- those type of ideas or probably maybe your Low-K prototype activities -- how it is stepping out?

任何類型的——那些類型的想法或者可能是你的低K原型活動——它是如何走出去的？

Our Low-K, we do have customers using our 0.13 micron Low-K process.

我們的 Low-K，我們確實有客戶使用我們的 0.13 微米 Low-K 工藝。

The volume is still small.

體積還是很小的。

We continue to refine that technology and for the customers who need the equipment or power saving.

我們不斷完善該技術，並為需要設備或節能的客戶提供服務。

And we expect to role more wafers at a quite a higher volume later on, you know, 3 to 6 months later.

我們預計稍後將在 3 到 6 個月後以更高的產量生產更多的晶圓。

Three to six months later.

三到六個月後。

Yes.

是的。

We do believe we will be one of the -- actually I don’t know of other companies who is providing 0.13 micron with Low-K in production.

我們確實相信我們將成為其中之一——實際上我不知道還有其他公司在生產中提供 0.13 微米低 K 材料。

We tend to…

我們傾向於……

Regarding our news release our [inaudible] has being close to our both visible examples in terms of using our Low-K technology.

關於我們的新聞稿，我們的[聽不清]在使用我們的低介電常數技術方面與我們的兩個可見示例非常接近。

Yes.

是的。

Thank you very much.

非常感謝。

Thank you.

謝謝。

Our next question comes from William Dong with UBS.

我們的下一個問題來自瑞銀集團的 William Dong。

Please go ahead with your question.

請繼續你的問題。

With two questions.

有兩個問題。

Actually the first question I have is want to get a sense of what is your plan in terms of migrations and do we plan to go from 0.13 to 0.11, is there a plan for offering upon 0.11, that’s the first question.

實際上我的第一個問題是想了解一下你們在遷移方面的計劃是什麼，我們是否計劃從 0.13 升級到 0.11，是否有計劃提供 0.11，這是第一個問題。

We'll all get that [inaudible].

我們都會明白的[聽不清]。

Please contact them, sorry, we have [inaudible] in the afternoon.

請聯繫他們，抱歉，我們下午有[聽不清]。

That couldn't click the answer; that was kind of confused and I want to make sure I got the answer right.

那無法點擊答案；這有點令人困惑，我想確保我得到了正確的答案。

We are in the process of developing a 0.11 technology as a shrink version of 0.13, mainly for cost and we will -- that will be in production rather soon.

我們正在開發 0.11 技術，作為 0.13 的縮小版，主要是出於成本考慮，我們很快就會投入生產。

Okay, alright, great and the second question I have is for Vanguard, I wanted just to get a, make some clarification with one way of looking at it by excluding it from our calculation are we trying to look at it more from the way of Vanguard is somewhat of an independent company unless has an affiliate?

好的，好吧，太好了，我的第二個問題是針對先鋒集團的，我只是想通過一種看待它的方式做出一些澄清，將其排除在我們的計算之外，我們是否試圖更多地從以下方式看待它：先鋒集團在某種程度上是一家獨立公司，除非有附屬公司？

I think the reason why we try to exclude it is because Vanguard has laid the full-term capacity the way they look to us.

我認為我們之所以試圖排除它，是因為先鋒集團已經按照他們對我們的看法確定了全額產能。

But we actually don't have an agreement or a contract that's going to either -- this is not sort of a pure commitment that is [inaudible] nor we have the obligation to use their facility.

但我們實際上沒有達成任何協議或合同——這不是一種[聽不清]的純粹承諾，我們也沒有義務使用他們的設施。

So actually volume put the Vanguard capacity into our [inaudible] and then actually, I think a lot of times this is actually distorted.

因此，實際上，音量將先鋒隊的能力納入我們的[聽不清]，然後實際上，我認為很多時候這實際上是扭曲的。

That's why I think that if we [inaudible] or try to look at the utilization and try to derive that what the close module be.

這就是為什麼我認為如果我們[聽不清]或嘗試查看利用率並嘗試得出關閉模塊是什麼。

Of course the Vanguard include a formula we are only competing further.

當然，先鋒隊包括一個我們只是進一步競爭的公式。

Okay got it.

好，知道了。

Thank you.

謝謝。

Thank you.

謝謝。

Our next question comes from Bavin Shah with J.P. Morgan.

我們的下一個問題來自摩根大通的 Bavin Shah。

Please go ahead with your question.

請繼續你的問題。

Yes, one--

是的，一個——

Are you calling from airplane. [inaudible].

您是從飛機上打電話嗎？ [聽不清]。

No, no, no I am in Taipei.

不不不，我在台北。

When you say computer is flattish you mean as a percentage of revenues in third quarter or flattish in absolute terms?

當您說計算機持平時，您是指佔第三季度收入的百分比還是絕對值持平？

In other words.

換句話說。

In absolute terms.

從絕對意義上來說。

As a percentage and it will be down?

作為百分比，它會下降嗎？

Yes.

是的。

Okay.

好的。

Alright and by excluding Vanguard from third quarter onwards does it mean that you will not be booking any revenues at the top line level from Vanguard in the third quarter?

好吧，從第三季度開始排除先鋒集團是否意味著您將不會在第三季度從先鋒集團獲得任何收入？

We continue to put the revenues, but what we tried to indicate here is that because those revenues from Vanguard are on commission basis only.

我們繼續列出收入，但我們在這裡試圖表明的是，因為先鋒集團的這些收入僅以佣金為基礎。

So, they have very little impact on the gross margin.

因此，它們對毛利率的影響很小。

Right.

正確的。

So, in your guidance for the third quarter, the revenues from Vanguard are included?

那麼，你們第三季度的指導中是否包括了先鋒集團的收入？

Yes.

是的。

Okay, thank you.

好的謝謝。

We don’t know how to include it because our financial statement has to be included.

我們不知道如何包含它，因為我們的財務報表必須包含在內。

Right, okay, thanks.

對了，好的，謝謝。

Thank you.

謝謝。

Our next question comes from Ashish Kumar with CSFB.

我們的下一個問題來自 CSFB 的 Ashish Kumar。

Please go ahead with your question.

請繼續你的問題。

Thank you.

謝謝。

First of all congratulations on very good results.

首先祝賀取得了非常好的成績。

Sir, already -- excuse me -- already the Fabs are running at very high capacity utilization, and your CAPEX still is sort of tracking to the mid point, and also I believe in the afternoon Mr. Morris Chang suggested that, he expects, you know, semi growth in '03 to be 7% a bit lower than his earlier estimate.

先生，對不起，晶圓廠已經以非常高的產能利用率運行，你們的資本支出仍然在跟踪中點，而且我相信下午張忠謀先生建議，他預計，你知道，03 年的半增長率為 7%，比他之前的估計要低一些。

And he guided to 2004, of 11%, much lower than what Wall Street is expecting, should this -- sort of suggest that, you know, you are not perhaps seeing as much optimism as number of industry observers expect or are expecting from the market?

他預計 2004 年的增長率為 11%，遠低於華爾街的預期，這是否意味著，你知道，你可能沒有看到像許多行業觀察家所期望的那樣樂觀。市場？

We are not suggesting anything.

我們並不是在建議任何事情。

We just tell you what we see that from our market research.

我們只是告訴您我們從市場研究中看到的情況。

And if you want to, the [inaudible], that has been great now.

如果你願意的話，[聽不清]，現在已經很棒了。

The [inaudible] are new [inaudible], the market, much higher than any of these industry observers has brought in the market.

[聽不清]是新的[聽不清]市場，遠高於任何這些行業觀察家所帶來的市場。

And that just all we are saying.

這就是我們所說的。

And by the all 7% is not downward adjustment.

而且7%並不是向下調整。

I think Morris really indicated it 2-3 months ago.

我認為莫里斯在兩三個月前就已經表明了這一點。

Yes.

是的。

We feel that we are a [inaudible].

我們覺得我們是[聽不清]。

Sure.

當然。

Thank you very much.

非常感謝。

Thank you.

謝謝。

Our next question comes from Ivan Goh (ph.) with Jestner (ph.).

我們的下一個問題來自 Ivan Goh（博士）和 Jestner（博士）。

Please go ahead with your question.

請繼續你的問題。

Hi.

你好。

Good evening gentlemen.

先生們晚上好。

I just got a couple of questions.

我只是有幾個問題。

Firstly, I know that in this year, you're still expending your eight-inch capacity.

首先，我知道今年你們還在消耗八英寸的產能。

I just wanted to find out in the next year, would you have any more space to put in any eight-inch -- additional eight-inch capacity?

我只是想知道明年，你們還有更多的空間來放置任何八英寸的——額外的八英寸的容量嗎？

This year for eight-inch capacity, we had increased mostly by, as Harvey said earlier, either retrograding some of the tools to up to with some upgrade or we kind of a -- we did purchase some tools last year, which we kind of did not use until this year.

今年，對於 8 英寸產能，我們的增長主要是，正如哈維早些時候所說，要么將一些工具回退到一些升級，要么我們去年確實購買了一些工具，我們認為直到今年才使用。

So next year -- but the -- I think our fabs are getting -- eight-inch fabs are getting pretty full, I think [most of them].

所以明年——但是——我認為我們的晶圓廠正在變得——八英寸晶圓廠將變得相當滿，我認為[其中大多數]。

But you know in principle, our chairman said in the afternoon, our strategy is to increase our capacity with the 300mm capacity rather than eight-inch.

但原則上你知道，我們董事長下午說，我們的策略是增加300毫米的產能，而不是8英寸的產能。

But will that be the same kind of upgrade effort next year like you did this year?

但明年的升級工作會像今年一樣嗎？

Well, for 300mm?

嗯，300mm？

No, 200mm.

不，200毫米。

200?

200？

Yes, 200.

是的，200。

Your know that’s -- we'll have to depend on the business conditions.

您知道，我們必須取決於業務條件。

If the business condition we're in -- if we can get really a [inaudible] return, we will do that [on a] upgrade basis.

如果我們所處的業務狀況——如果我們能夠真正獲得[聽不清]回報，我們將[在]升級的基礎上做到這一點。

Right.

正確的。

This afternoon the chairman also made some pretty long-range forecast for 90nm saying that, you know, it would probably be about 2006 before we get revenues coming up also and 90nm crossing 10% of your total revenues.

今天下午，董事長還對 90nm 做出了一些相當長期的預測，他說，你知道，可能要到 2006 年左右，我們的收入才會上升，並且 90nm 會超過你們總收入的 10%。

I just wanted to get an update on a more near-term outlook.

我只是想了解近期前景的最新情況。

You know, how is 90nm running for you in the next one, two, or three quarters?

你知道，在接下來的一個、兩個或三個季度內，90nm 的運行情況如何？

I think the -- I need to clarify this.

我認為——我需要澄清這一點。

I think what [inaudible] did is try to teach whoever asked that question how to actually apply [inaudible].

我認為 [聽不清] 所做的是嘗試教提出這個問題的人如何實際應用 [聽不清]。

I don’t think he is actually forecasting; that was the situation.

我認為他實際上並不是在預測；而是在預測。情況就是如此。

I don't think we can really forecast what happens in 2006.

我認為我們無法真正預測 2006 年會發生什麼。

And Rick, maybe you'll want to add something about it.

瑞克，也許你想補充一些相關內容。

Oh yes.

哦是的。

I mean on a short term we put 90nm, I mean the development work is moving quite well.

我的意思是，從短期來看，我們採用了 90nm，我的意思是開發工作進展順利。

We are doing our qualification work with our technology, and also as Morris said in the afternoon, as we move into the more and more advanced technology, the number of users is getting lower than before.

我們正在用我們的技術進行資格認證工作，而且正如莫里斯下午所說，隨著我們進入越來越先進的技術，用戶數量比以前越來越少。

I guess that’s also one of reason that, you know, he said that [inaudible] is getting stressed out compared to a few years ago.

我想這也是他說[聽不清]與幾年前相比壓力越來越大的原因之一。

Okay.

好的。

And my last question, Thomas is; you said that wireless comm is stronger than wireline comm into the third quarter.

我的最後一個問題，托馬斯是；您說無線通信在第三季度強於有線通信。

I just wanted to find out within the wireless comm segment, is it more of wireless LAN or wireless mobile, you know, that is stronger into the third quarter.

我只是想知道在無線通信領域，是無線局域網還是無線移動，你知道，到第三季度會更強勁。

That includes wireless mobile.

其中包括無線移動設備。

Above wireless LAN?

無線局域網之上？

Wireless LAN actually is not as strong as wireless mobile.

無線局域網實際上不如無線移動那麼強大。

I think if mobile is mobile phone as well base stations, and blue tooth devices, these are the actually stronger ones in the wireless.

我認為，如果移動設備是手機，那麼還有基站、藍牙設備，這些實際上是無線領域中更強的設備。

Would wireless LAN be increasing on a quarter-on-quarter basis?

無線 LAN 會環比增長嗎？

Right now, we still [see them in our increasing trend].

目前，我們仍然[看到它們呈增長趨勢]。

Okay Thank you so much.

好的，非常感謝。

They had pretty good goals during the second quarter.

他們在第二節取得了相當不錯的進球。

Thank you.

謝謝。

Thank you.

謝謝。

Our next question comes from Daniel Haler (ph.) with Merrill Lynch.

我們的下一個問題來自美林證券的 Daniel Haler（博士）。

Please go ahead with your question.

請繼續你的問題。

Hi, a quick follow up on capacity.

您好，快速跟進容量。

How much 0.13 eight-inch will you be adding in terms of -- I assume you are still doing some upgrades or is the upgrades pretty much finished?

您將增加多少 0.13 八英寸——我假設您仍在進行一些升級，或者升級已經基本完成？

Could you comment -- clarify that?

您能否發表評論——澄清一下？

Kind of marginally, I think, we are going to go up to maybe about 34,000-35,000 per month by the end of the year.

我認為，到今年年底，我們的月產量可能會略微增加到 34,000-35,000 左右。

And that’s just eight-inch?

那隻是八英寸？

Yeah.

是的。

So what is it now?

那麼現在是什麼情況呢？

I think, now it roughly 28-30 range.

我想，現在大概是28-30個範圍。

Okay, and as you upgrade those facilities, what is the net capacity loss given the 0.13 has more process steps, imagine throughput goes down a bit.

好的，當您升級這些設施時，考慮到 0.13 有更多的處理步驟，想像一下吞吐量會下降一點，淨容量損失是多少。

So, how much would you then loose from whatever you are upgrading at -- I am assuming you are upgrading from 0.18?

那麼，無論您升級到什麼版本，您會損失多少——我假設您是從 0.18 升級？

Actually, you know, then the total capacity did not go down.

事實上，你知道，那麼總容量並沒有下降。

I mean you got -- as you probably know all our 0.13 micron eight-inch capacity realizing the [inaudible].

我的意思是，您可能知道我們所有的 0.13 微米八英寸產能都實現了[聽不清]。

The total capacity actually is not going down.

總容量實際上並沒有下降。

We registered by the way move number of the audio questions about that, certainly we did move some tools and through that test we surely have those revised [inaudible] 0.13, but without reducing the 0.18, 0.15 capacity.

我們通過移動音頻問題的數量來註冊，當然我們確實移動了一些工具，通過該測試我們肯定已經修改了[聽不清]0.13，但沒有減少 0.18、0.15 的容量。

Actually you just crammed more tools under the same strap.

實際上，您只是在同一條帶子下塞滿了更多工具。

Okay.

好的。

I am ready for every -- whatever it takes.

我已經準備好應對一切——無論需要什麼。

Right.

正確的。

Okay.

好的。

So then in terms of modeling, kind of, 0.13 capacity, how much then comes from 300 mm on top of that 34K number you talked about?

那麼就造型而言，0.13 容量，那麼在您談到的 34K 數字之上，300 毫米的容量是多少？

Well we -- the current plan is to move up to about 14,000 -- oh no I am sorry 10,000 for 0.13 -- 10,012 [inch] region by the end of the year.

嗯，我們目前的計劃是到今年年底將 0.13 - 10,012 [英寸] 區域的數量增加到約 14,000 - 哦不，抱歉，增加到 10,000。

How much of your 300 mm right now is on 0.13;

現在你的 300 毫米中有多少是 0.13；

I thought you were doing some different technologies there?

我以為你在那裡做了一些不同的技術？

No.

不。

We are both putting 0.13 and 0.15; 0.13 capacity, we [acknowledged], probably about 7K.

我們分別輸入 0.13 和 0.15； 0.13 容量，我們[承認]，大概是 7K 左右。

Okay.

好的。

And so basically all of that 10K by yearend is pretty much 0.13 then or will there be some 0.15 still on that 300 mm?

所以基本上到年底所有 10K 幾乎都是 0.13，或者 300 毫米上還會有一些 0.15 嗎？

For the 10K, I just mentioned, all are 0.13.

對於10K，我剛才提到，都是0.13。

We do have some extra 0.15 capacity.

我們確實有一些額外的 0.15 容量。

Then that total 300 mm wafers then is 14K by yearend then?

那麼到年底，300mm 晶圓總數將達到 14K？

Yeah, roughly.

是的，大約。

Okay.

好的。

Great, thanks.

十分感謝。

It's very clear.

非常清楚。

Thanks.

謝謝。

Thank you.

謝謝。

Our next question comes from Michael McConnell with Pacific Crest Securities.

我們的下一個問題來自 Pacific Crest Securities 的 Michael McConnell。

Please go ahead with your question.

請繼續你的問題。

Yeah, just a quick question on your pricing, looking at the back half of the year, it appeared from an outsider's view that you are on relative driver's seat with respect to your running pretty highly utilized that leading edge, at least to 0.13 micron; and your major US competitor last week currently is having some yield difficulties, could you talk a little bit about the possibility for a price increase in the back half of the year and just the possibility of that, and what kind of you look for when you, kind of, gaze the possibilities of price hiking in general?

是的，只是一個關於你們定價的簡單問題，從今年下半年來看，從局外人的角度來看，你們在運行方面處於相對主導地位，對前沿的利用率相當高，至少達到 0.13 微米；上週你的主要美國競爭對手目前正面臨一些產量困難，你能否談談下半年價格上漲的可能性以及這種可能性，以及當你總體而言，關注價格上漲的可能性嗎？

I think on the [inaudible] it's really high, basically we don’t see the possibility of an increasing wafer price throughout the year. [Currently] it is price upwards just and I think it is [inaudible].

我認為[聽不清]它確實很高，基本上我們看不到晶圓價格全年上漲的可能性。 [目前]價格只是上漲，我認為[聽不清]。

For our specific customers the price is on [inaudible] and the volume improved since there -- we might be able to reaffirm our other improvements on ASPs.

對於我們的特定客戶，價格為 [聽不清]，並且數量自那時以來有所改善 - 我們也許能夠重申我們對 ASP 的其他改進。

Okay, so the marginal improvement that you alluded to with regards to ASPs is for the third quarter; that would just be your revenue -- that 0.13 micron increasing higher than anticipation or just may be filling out to be…?

好的，您提到的 ASP 方面的邊際改善是針對第三季度的；這就是您的收入 - 0.13 微米的增長高於預期，或者可能只是填充......？

Greg, it is primarily going higher -- this is primarily a [color] mix factor.

格雷格，它主要是走高——這主要是一個[顏色]混合因素。

Okay, okay great and you were great, kind of, breaking out the communications end market which products were kind of, you know, tracking up and tracking flat At least, could you kind of go into PCs -- just you know where are your graphic customers going and also looking in consumer what products look to be moved up in the third quarter and down?

好吧，好吧，太棒了，你很棒，有點突破了通信終端市場，這些產品有點，你知道，跟踪和跟踪平坦至少，你能進入個人電腦嗎 - 只要你知道你的產品在哪裡圖形客戶正在尋找消費者，哪些產品看起來會在第三季度上漲或下跌？

Well that is something I guess for not being able to attend your conferences.

嗯，我猜這是因為無法參加你們的會議。

So that means I can also do a [speech] on the next conference as well.

這意味著我也可以在下一次會議上發表[演講]。

On the PCs, let me take a look enough.

在PC上，讓我看夠了。

PC for second quarter, I think a stronger growth segment are hard disk drive, graphics and chipsets, and currently seeing that we're seeing softening and that both of the areas [its kind of] [inaudible] that’s was noticeable.

第二季度的個人電腦，我認為更強勁的增長部分是硬盤驅動器、顯卡和芯片組，目前我們看到我們看到軟化，並且這兩個領域[其類型][聽不清]都很明顯。

I am sorry, what was softening?

抱歉，軟化是什麼？

The [inaudible].

[聽不清]。

[inaudible].

[聽不清]。

And then on the consumer, we continue to see gain to be very strong.

然後在消費者方面，我們繼續看到增長非常強勁。

Also, set-top box and digital camera, they also looked pretty good.

還有機頂盒和數碼相機，看起來也不錯。

Okay, great, thank you very much.

好的，太好了，非常感謝。

Thank you.

謝謝。

Our next question comes from Emory Hamiz (ph.) with Neuberger Berman .

我們的下一個問題來自 Emory Hamiz（博士）和 Neuberger Berman。

Please go ahead with your question.

請繼續你的問題。

I had a question about your lead times, could you comment whether you see them extending, is this the leading edge at this point?

我有一個關於你們的交貨時間的問題，您能否評論一下你們是否認為它們會延長，這是目前的領先優勢嗎？

I think the 0.13-micron, our lead times probably are between 12-14 weeks for the 0.13-micron.

我認為 0.13 微米，我們的 0.13 微米交貨時間可能在 12-14 週之間。

And did that make any change in you visibility and how far does your visibility extend out in the third quarter and maybe even to fourth quarter given the extension in your lead times?

這是否會對您的可見度產生任何變化？考慮到交貨時間的延長，您的可見度在第三季度甚至第四季度會延伸多遠？

Our visibility even with visibility of our--.

我們的知名度甚至與我們的知名度一樣。

Demand for wafer orders.

晶圓訂單需求。

Well usual visibility is spread between 2-3 months.

通常的能見度分佈在 2-3 個月之間。

Usually it doesn’t change much over the year if, I mean if [new demands are away].

通常情況下，一年中不會發生太大變化，如果，我的意思是如果[新需求消失]。

Okay.

好的。

Thank you.

謝謝。

Thank you.

謝謝。

Our next question comes from Perry Mennin with Deutsche Bank.

我們的下一個問題來自德意志銀行的 Perry Mennin。

Please go ahead with your question.

請繼續你的問題。

Yes.

是的。

Thank you.

謝謝。

Just could you give me some more ideas exactly in terms of modeling for Vanguard how to book the revenues?

您能給我一些關於 Vanguard 建模如何登記收入的更多想法嗎？

What if I -- I mean is there going to be a change in the way you book the revenues?

如果我——我的意思是，你們登記收入的方式會發生變化嗎？

No, no.

不，不。

No.

不。

So I keep the capacity that's basically the right way to possibly go ahead going forward.

所以我保留了能力，這基本上是繼續前進的正確方式。

Can you repeat your last sentence please?

你能重複一下你的最後一句話嗎？

Do I keep the capacity on an continue as if -- I mean what you gave was for reference in terms of what is under your management but in terms of a revenue it would seem as if the capacity is continuing to be there, would that be correct?

我是否會繼續保持產能——我的意思是，您提供的信息僅供您管理的參考，但就收入而言，產能似乎繼續存在，是嗎？正確的？

Yeah.

是的。

Okay.

好的。

At least for the time being, yeah.

至少暫時是的。

Okay and just one more question sir that is the -- you said that point -- 300mm is now mainstream and so your price reference that you gave to the customer on a [di] based basis if I were to look, would it be same as an 8 inch for 0.13, and for 300mm at 0.13?

好的，還有一個問題，先生，那就是——你說的這一點——300mm 現在是主流，所以你給客戶的價格參考是基於 [di] 的，如果我要看看，它會是一樣的嗎？ 8 英寸為 0.13，300 毫米為 0.13？

Oh, yeah.

哦耶。

Okay.

好的。

Yeah, thank you.

是的，謝謝。

Thank you.

謝謝。

Our next question comes from Johnny Chen with Credit Suisse First Boston; please go ahead with your question.

我們的下一個問題來自瑞士信貸第一波士頓的 Johnny Chen；請繼續你的問題。

Congratulations on a great quarter, just like to understand a little bit more about your strategy in the area of design service.

祝賀您度過了一個出色的季度，只是想更多地了解您在設計服務領域的策略。

Recently [inaudible] TSMC [campaign] of developing and licensing IC designs for customers.

最近[聽不清]台積電[活動]為客戶開發和許可IC設計。

Is that true or what is [inaudible]?

這是真的還是[聽不清]？

You words are bit a broken.

你這話有點破了。

You said though -- you said for the TS -- is your question about whether TSMC wants to use our own design service or--.

不過，您說，您對 TS 的問題是台積電是否想使用我們自己的設計服務，或者……。

Yes.

是的。

There is -- [recently] you talked that TSMC may enter the main [pointer] business with [Xiaoping] and licensing IC designs for customers.

[最近]您談到台積電可能會通過[小平]進入主要[指針]業務，並為客戶授權IC設計。

Is that true or will TSMC continue to do so?

這是真的還是台積電會繼續這樣做？

Design service [inaudible] like [inaudible] unit?

設計服務 [聽不清] 像 [聽不清] 單位？

You know -- I assume primarily we too use what we call DCA Partners in our growth.

你知道——我認為我們在發展過程中也主要利用我們所謂的 DCA 合作夥伴。

But the [inaudible] of course was major one, which we also have invested, but we are also looking with several others both in Taiwan and the U.S.

但[聽不清]當然是主要項目，我們也進行了投資，但我們也在與台灣和美國的其他幾個項目一起尋找。

We do have some capability internally, but that is limited.

我們內部確實有一些能力，但那是有限的。

So, we cannot provide [inaudible] implementation [inaudible] internally, but very selectively.

因此，我們無法在內部提供[聽不清]實施[聽不清]，而是非常有選擇性的。

Thank you.

謝謝。

Thank you.

謝謝。

Our next question comes from Shalesh Gently (ph.) with Nomura.

我們的下一個問題來自野村證券的 Shalesh Gently（博士）。

Please go ahead with your question.

請繼續你的問題。

Hi, congratulations.

你好，恭喜你。

I wanted to just explore a bit on the [dibase] pricing.

我想稍微探討一下 [dibase] 的定價。

How has the proportion of the 0.13 micron [dibase] pricing change from previous quarter to this quarter, and majority of your [dibase] pricing customers are they or 300 mm now?

從上一季度到本季度，0.13 微米 [dibase] 定價的比例有何變化，您的大多數 [dibase] 定價客戶現在都是 300 毫米？

I don’t really have that statistics. [inaudible] do you?

我真的沒有這個統計數據。 [聽不清]你呢？

No I don’t think we really look at it on that basis.

不，我認為我們並沒有真正以此為基礎來看待它。

Okay thanks.

好的謝謝。

Thank you.

謝謝。

Once again ladies and gentlemen if you do have a question please press "1" then -- I am sorry please press "*" then "1" on your touchtone telephone now.

女士們，先生們，如果您有疑問，請再次按“1”——很抱歉，請現在按按鍵式電話上的“*”，然後按“1”。

One moment please, for the next question.

請稍等一下，回答下一個問題。

And our next question is from [Daniel Haler].

我們的下一個問題來自[丹尼爾·哈勒]。

Please go ahead with your follow up question.

請繼續提出您的後續問題。

Sorry just one more then I will go away.

再抱歉一次，然後我就走了。

On terms of the masks ready for 0.13, I was just wondering what kind of applications do you expect to see on 0.13, 300 mm products, and then second part of the question, I guess, is what's the flow in terms of designs, new designs, and your mask activity that you are seeing move to the 300 mm node, given that, you know, obvious remarks, plans up to go there?

就準備用於 0.13 的掩模而言，我只是想知道您期望在 0.13、300 毫米產品上看到什麼樣的應用，然後問題的第二部分，我想是設計、新方面的流程是什麼設計，以及您看到的面罩活動轉移到 300 毫米節點，考慮到，您知道，明顯的評論，計劃去那裡？

The application wise, I really don't care.

至於應用程序，我真的不在乎。

We don't see major difference between eight-inch and 300 mm.

我們看不出 8 英寸和 300 毫米之間有什麼重大區別。

Of course, other than some very, very small volume products, that basically we have -- we obviously, especially obvious for high volume products, make them all sense to move to 300 mm, but because of the [inaudible] cost.

當然，除了一些非常非常小體積的產品之外，我們基本上擁有 - 顯然，對於大批量產品尤其明顯，我們使它們都有意義轉向 300 毫米，但因為 [聽不清] 成本。

I guess, I was trying to get sense of your going from 28K-34k for just, you know, for just, you know, its a pretty small increase, when would you start to see some of your high volume products, graphics moved to NML.

我想，我試圖了解您從 28K 到 34k 的情況，只是，您知道，只是，您知道，這是一個相當小的增長，您什麼時候開始看到一些大批量產品，圖形轉移到國家ML。

Well they are already there.

好吧，他們已經在那裡了。

Computer communication major products are already in 300 mm as in some of the consumer also.

計算機通信主要產品的尺寸已經達到 300 毫米，一些消費類產品也是如此。

Okay, but you said you had 7K on 7.15 thus a lot of it 0.15 but that because you said you had 7K currently 0.15.

好的，但你說你在 7.15 上有 7K，因此很多是 0.15，但那是因為你說你目前有 7K 0.15。

No, no 7k 0.13

不，不 7k 0.13

Oh 7k is 0.13.

噢，7k是0.13。

Oh yeah, I think it is 7.5 it is roughly 4K.

哦，是的，我認為是 7.5，大約是 4K。

So on that 7k you have all those products you just mentioned already on the 7k, you have graphics and you have wire line all on 0.13 300 mm?

那麼，在 7k 上，您擁有剛剛在 7k 上提到的所有產品，您有圖形，並且您的電線都在 0.13 300 毫米上？

Well mostly our graphics and the wire list and some consumer.

主要是我們的圖形和電線列表以及一些消費者。

Okay great and then so in terms and then second part of the question is when -- what's the inflow of new designs to the [inaudible] seeing a slow and steady migration over companies giving a tight capacity volume to take a greater risk on making of expenditures or it's pretty much of an, kind of, in place and people just waiting for demand.

好的，太好了，然後問題的第二部分是，什麼時候新設計的流入量是多少[聽不清]看到公司緩慢而穩定的遷移，產能緊張，從而在製造上承擔更大的風險支出或者說已經到位，人們只是在等待需求。

I feel it's flowing steadily.

我感覺它在穩定地流動。

We have took and because of the customers are walking with us in the expectation of your capacity [inaudible] in 300 mm.

我們已經接受了，因為客戶與我們一起行走，期望您的容量 [聽不清] 300 毫米。

Well, all our customers understand our capacity strategy very clearly, you know, that's appealing the worker only pretty much only increase in 300 mm.

嗯，我們所有的客戶都非常清楚我們的產能策略，你知道，這對工人的吸引力幾乎只增加了 300 毫米。

Okay.

好的。

Thanks.

謝謝。

Thank you.

謝謝。

Our next question comes from Bavin Shah.

我們的下一個問題來自巴文·沙阿。

Please go ahead with your follow-up question.

請繼續提出您的後續問題。

Yes, sorry.

是的，抱歉。

Because everybody is going to think about the implications for computer and market, so I am asking this question.

因為每個人都會考慮對計算機和市場的影響，所以我問這個問題。

From a volumes -- in terms of volume, will computer-related volume be flat, or up or down?

從成交量來看——從成交量來看，計算機相關的成交量會持平、上升還是下降？

I believe the previous comments have been revenue related.

我相信之前的評論與收入有關。

I am not sure that I have [to add to] the precise number, but I believe the trend is some quarters are declining.

我不確定是否需要添加確切的數字，但我相信趨勢是某些季度正在下降。

Thank you.

謝謝。

I would say a flattish to decline.

我想說的是平淡的拒絕。

Okay.

好的。

Thank you.

謝謝。

Thank you.

謝謝。

Our next question comes from Perry Mennin.

我們的下一個問題來自佩里·門寧。

Please go ahead with your follow-up question.

請繼續提出您的後續問題。

Yes, it’s a bit of -- I just wanted to take a classification.

是的，有點——我只是想進行分類。

With PC segment coming down in terms of volumes and consumer and communications increasing, I would think that consumer and even some of the communication wafers have less layers put on them.

隨著個人電腦領域銷量的下降以及消費者和通信領域的增加，我認為消費者甚至某些通信晶圓上的層數會減少。

So is that part of the reason why -- and that helps you process more wafers, is that part of the reason why you are having a high utilization than -- what I am asking is, is there a change in the masters from [that all], that is leading to increase utilization?

這就是為什麼——這可以幫助你處理更多的晶圓，這就是為什麼你的利用率比——我要問的是，大師是否發生了變化？ all]，這會導致利用率提高嗎？

I think -- I would think that's maybe a second order you expect, if there is any.

我想——我想這可能是你所期望的第二個命令，如果有的話。

Okay.

好的。

Yeah.

是的。

By the way, I just want to clarify the computer volume, you know, is still flat to declining.

順便說一句，我只是想澄清一下，計算機體積仍然持平甚至下降。

I don't want -- I don't think we want to give the people an impression that we are seeing a major decline.

我不想——我認為我們不想給人們留下我們正在看到經濟大幅下滑的印象。

That will not be the case.

事實並非如此。

Thank you.

謝謝。

Thank you.

謝謝。

Our next question comes from Michael Mcconnell.

我們的下一個問題來自邁克爾·麥康奈爾。

Please go ahead with your follow up question.

請繼續提出您的後續問題。

Hi.

你好。

I think you just almost answered it.

我想你幾乎已經回答了。

But on the PC side, you have two very large customers that are in the midst of a very significant product ramp right now.

但在 PC 方面，您有兩個非常大的客戶，目前正處於非常重要的產品增長階段。

And you would imagine after that ramp that things would tick down probably in the back half of the year as our product is shipped out.

你可以想像，在這個增長之後，隨著我們的產品發貨，情況可能會在今年下半年下降。

Is that what's partially going on especially on the graphic side at least?

這是部分發生的事情，尤其是在圖形方面嗎？

Yes.

是的。

Actually I think your [inaudible] are pretty correct.

事實上我認為你的[聽不清]是非常正確的。

I just want to say again the absolute volume still up there.

我只想再說一遍，絕對音量仍然存在。

Okay.

好的。

Thank you.

謝謝。

Thank you.

謝謝。

Our next question comes from Parnab Sharma.

我們的下一個問題來自帕納布·夏爾馬。

Please go ahead with your follow-up question.

請繼續提出您的後續問題。

I have a follow-up with the mask business.

我對口罩業務有跟進。

For 90nm level mask, do you have any technology partner at this point, and where you are developing those materials and all those stuff related to that?

對於 90 納米級掩模，目前您有任何技術合作夥伴嗎？您在哪裡開發這些材料以及所有與之相關的東西？

Actually, we do our own mask technology development in house.

實際上，我們在內部進行自己的掩模技術開發。

Obviously, we work with many key material suppliers and the tool suppliers, but basically we develop our own technology.

顯然，我們與許多關鍵材料供應商和工具供應商合作，但基本上我們開發自己的技術。

We do have a very advanced and very -- advanced technology and efficient manufacturing.

我們確實擁有非常先進、非常先進的技術和高效的製造。

We have all the [PSM] [inaudible] capability in house.

我們內部擁有所有 [PSM] [聽不清] 功能。

And would you give us some update on multi-wafer projects.

您能給我們一些有關多晶圓項目的最新情況嗎？

How it's going on, on 0.13 and 90nm level?

0.13 和 90nm 級別進展如何？

And how many customers you might have signed in there?

您可能已經在那裡登錄了多少客戶？

I don’t have the number of customers but they are very popular.

我沒有多少顧客，但他們很受歡迎。

But you can imagine why.

但你可以想像為什麼。

But they are very popular and we are getting very high demand for -- especially for 0.13 and to a lesser degree 90nm because of its early stage in the development.

但它們非常受歡迎，而且我們對 0.13 納米和較小程度的 90 納米的需求非常高，因為它還處於開發的早期階段。

But -- I am sorry, not in the development but the -- but still in its development stage.

但是--我很抱歉，不是在開發中，而是--但仍處於開發階段。

Even if--

即使 -

It's doing very well, quite well.

它做得非常好，非常好。

Thank you very much.

非常感謝。

Thank you, Mr. Chang, there are no more questions at this time.

謝謝張先生，目前沒有其他問題了。

Please continue.

請繼續。

Okay I think that we really had a good the 65 minutes of call and I want to thank everyone participating in this call.

好的，我認為我們確實度過了 65 分鐘的通話，我要感謝參與本次通話的所有人。

And we'll see you next time on our next release.

我們下次在下一個版本中再見。

Have a good morning and good evening.

祝你早安和晚安。

Thank you, sir.

謝謝你，先生。

Before we conclude TSMC's second quarter 2003 earnings webcast conference call today, please be advised that the replay of the conference call will only be accessible through TSMC's website at www.tsmc.com.

在我們今天結束台積電 2003 年第二季度收益網絡廣播電話會議之前，請注意，電話會議的重播只能通過台積電的網站 www.tsmc.com 觀看。

Thank you all.

謝謝你們。