台積電 ADR (TSM) 2004 Q1 法說會逐字稿

Welcome to the Taiwan Semiconductor manufacturing Company's First Quarter of 2004 results Webcast conference call. Today's event is chaired by Miss Dr. Lora Ho, Vice President and CFO, and Dr. Rick Tsai, President and COO. This conference call is being Webcast live via the TSMC website at www.tsmc.com and only in audio mode. The dial-in lines are also in listen-only mode. At the conclusion of the management presentation we'll be opening the floor for questions. At that time further instructions will be provided as to the procedure to follow if you would like to ask any questions. Please be advised for those participants who do not yet have a copy of the press release, you may download it from TSMC's website at www.tsmc.com. Please also download the summary slides in relation to today's quarterly review presentation. Once again the URL is www.tsmc.com. I would now like to turn the conference over to Dr. Elizabeth Sun TSMC head of investor relations for the cautionary statements before the main presentation by Miss Ho and Dr. Tsai. Please go ahead.

歡迎來到台積電 2004 年第一季度業績網絡直播電話會議。今天的活動由副總裁兼首席財務官 Lora Ho 博士小姐和總裁兼首席運營官 Rick Tsai 博士主持。本次電話會議通過台積電網站 www.tsmc.com 以音頻方式進行網絡直播。撥入線路也處於只聽模式。在管理層介紹結束時，我們將開始提問。屆時，如果您想提出任何問題，將提供有關應遵循的程序的進一步說明。請注意那些還沒有新聞稿副本的與會者，您可以從 TSMC 的網站 www.tsmc.com 下載它。另請下載與今天的季度審查演示文稿相關的摘要幻燈片。 URL 還是 www.tsmc.com。我現在想把會議轉交給 Elizabeth Sun 台積電投資者關係負責人，在何小姐和蔡博士的主要演講之前發表警示性聲明。請繼續。

Good morning and good evening to all participants. This is Elizabeth Sun, head of Investor Relations for TSMC. Before we begin I would like to state that management's comments about TSMC's current expectations made during this conference call are forward-looking statement subject to significant risks and uncertainties, and that actual results may differ materially from those contained in the forward-looking statements. Information as 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, TSMC's registration statement on Form F-3 filed with the SEC on October 21, 2003, and such other documents that TSMC may file with or submit to the SEC from time to time. Except as required by law, we undertake no obligation to update any forward-looking statement whether as a result of new information, future events or otherwise. And now I would like to turn the conference call over to Miss Dr. Lora Ho, our Vice President and Chief Financial Officer.

各位與會者早上好，晚上好。我是台積電投資者關係主管 Elizabeth Sun。在我們開始之前，我想聲明，管理層在本次電話會議上對台積電當前預期的評論是前瞻性陳述，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內容存在重大差異。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，請參見台積電於 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、台積電關於2003 年 10 月 21 日向美國證券交易委員會提交的 F-3 表格，以及台積電可能不時向美國證券交易委員會提交或提交的其他此類文件。除非法律要求，否則我們不承擔更新任何前瞻性陳述的義務，無論是由於新信息、未來事件或其他原因。現在我想將電話會議轉交給我們的副總裁兼首席財務官 Lora Ho 博士。

Welcome to TSMC's first quarter conference call. We are pleased to be sharing some very positive results here with you. Overall, TSMC's first quarter marked the beginning of a year where we believe TSMC will once again deliver record-breaking financial performance. We have prepared some slides for you to look at as you listen to the call. These slides are available on TSMC's website. During the call I will refer to these slides by their individual numbers.

歡迎來到台積電第一季度電話會議。我們很高興在這裡與您分享一些非常積極的成果。總的來說，台積電的第一季度標誌著一年的開始，我們相信台積電將再次創造破紀錄的財務業績。我們準備了一些幻燈片供您在收聽電話會議時查看。這些幻燈片可在 TSMC 的網站上找到。在通話期間，我將通過它們各自的編號來引用這些幻燈片。

To start with, let's take a look at some highlights of our first quarter 2004 operating results. These figures are shown on slide #4. As announced of April 8th, our first quarter total revenue amounted to NT$57.5b which is on a similar level to that of Q4 2003. Net income after tax totaled NT$18.8b, the highest since Q4 of the year 2000. Earnings per share reached NT$0.93, an increase of 17% sequentially. TSMC ended the first quarter NT$126.3b in cash and short-term investments. Our total interest bearing debt that remains unchanged at NT$35b.

首先，讓我們看一下我們 2004 年第一季度經營業績的一些亮點。這些數字顯示在幻燈片 #4 上。截至 4 月 8 日，我們第一季度的總收入為新台幣 57.5 元，與 2003 年第四季度的水平相近。稅後淨收入為新台幣 18.8 元，為 2000 年第四季度以來的最高水平。每股收益達到新台幣 0.93 元，環比增長 17%。台積電在第一季度末的現金和短期投資為 126.3b 新台幣。我們的總計息債務保持在 NT$35b 不變。

During the fist quarter we shipped a total of 1,172,000 8" equivalent wafers. Our overall utilization rate, which included TSMC Fabs, wafer Fabs and SSMC was roughly 105% in the first quarter. As a result I am glad to announce that our ROE for the quarter has reached 22.2% exceeding our long-term target of 20%.

在第一季度，我們總共出貨了 1,172,000 片 8" 等效晶圓。第一季度，包括台積電晶圓廠、晶圓廠和 SSMC 在內的我們的整體利用率約為 105%。因此，我很高興地宣布，我們的 ROE 為本季度已達到 22.2%，超過了我們 20% 的長期目標。

Now let's go to slide #5. Compared with Q4 2003, revenue of NT$57.5b was the combined result of a 4% increase in wafer shipments, a 3% decrease in ASP and a 1.5% weaker US dollar exchange rate during the quarter. Overall utilization rate increased from 101% in Q4 2003 to 105% for the first quarter of 2004. As a result, gross margin improved from 39.3% to 39.5%. Operating expenses as a percentage of total net sales was 9% for the quarter, down from 11% in the previous quarter. This is due to a one-of R&D expense for 65 nanometers in Q4 2003.

現在讓我們轉到幻燈片#5。與 2003 年第四季度相比，本季度晶圓出貨量增長 4%、平均售價下降 3% 以及美元匯率走軟 1.5% 的綜合結果為新台幣 57.5b 元。整體利用率從 2003 年第四季度的 101% 增加到 2004 年第一季度的 105%。因此，毛利率從 39.3% 提高到 39.5%。本季度營業費用占淨銷售額的百分比為 9%，低於上一季度的 11%。這是由於 2003 年第四季度的 65 納米研發費用之一。

Next non-operating items improved to an expense of NT$.2b to an income of NT$.1b. Investment income on the other hand decreased from NT$1.1b in the 4th quarter to NT$.8b in this quarter. The reasons were, firstly, TSMC did not realize any capital gains from the disposal of equity investments as it had in the previous quarter. Secondly, operating results from SSMC wafer Fabs and [inaudible] continue to show [less] improvement. Income tax for the quarter was a credit of NT$.4b as opposed to an expense of NT$1.6b in the previous quarter. Net income for the quarter thus became NT$18.8b. Net margin also reached a record high since the year 2000 of 33% as opposed to the 28% achieved in Q4 2003 demonstrating yet another quarter of TSMC's outstanding performance.

接下來的非經營項目從 NT$.2b 的費用提高到 NT$.1b 的收入。另一方面，投資收益從第 4 季度的 NT$1.1b 下降到本季度的 NT$.8b。原因在於，第一，台積電沒有像上一季度那樣，從出售股權投資中獲得任何資本收益。其次，SSMC 晶圓廠和 [聽不清] 的經營業績繼續顯示 [較少] 改善。本季度的所得稅抵免額為 NT$.4b，而上一季度為 NT$1.6b 的支出。該季度的淨收入因此變為 NT$18.8b。淨利潤率也達到了 2000 年以來的 33% 的歷史新高，而 2003 年第四季度的淨利潤率為 28%，這表明台積電又一個季度的出色表現。

Slide #6 demonstrates the tax effect of TSMC for Q4 2003 and Q1 2004. With Fab sales ramping up and improved utilization of Fabs 6 and 8, we expect the tax exemption rate to increase in 2004. As a result, provisional tax rate for this year should fall around 13% versus 18% in 2003. In addition to lower tax rates, higher capital investment also brought our tax credit up from NT$1.6b in Q4 2003 to NT$2.7b in Q1 2004. The overall tax effect for Q1 2004 was a credit of NT$350m compared to an expense of NT$1.57b for Q4 2003.

幻燈片 #6 展示了 TSMC 對 2003 年第四季度和 2004 年第一季度的稅收影響。隨著 Fab 銷售額的增加以及 Fabs 6 和 8 利用率的提高，我們預計 2004 年的免稅稅率將提高。因此，暫定稅率為與 2003 年的 18% 相比，今年應該下降 13% 左右。除了較低的稅率，較高的資本投資也使我們的稅收抵免從 2003 年第四季度的新台幣 1.6b 美元增加到 2004 年第一季度的新台幣 2.7b 美元。2004 年第一季度的總體稅收影響與 2003 年第 4 季度的 1.57b 新台幣費用相比，有 3.5 億新台幣的貸項。

Now let's turn to slide #7. On a year-over-year basis our revenue increased by 46% primarily due to 69% wafer shipment increase, partially weighted down by ASPs decline of 5%. Gross profit was NT$22.7b, a 119% increase over Q1 last year. Meanwhile gross margin improved from 26.4% to 39.5%. Total operating expenses, although increased 24% from the same quarter last year, took up only 9% of total sales, down from 11% a year ago. Similarly, non-operating items improved from expenses totaling NT$.5b to an income of NT$.1b mainly due to lower interest rates after TSMC repaid NT$9b corporate bonds, and gained from the disposal of certain fixed assets.

現在讓我們轉到幻燈片#7。與去年同期相比，我們的收入增長了 46%，這主要是由於晶圓出貨量增長了 69%，部分原因是平均售價下降了 5%。毛利潤為 NT$22.7b，比去年第一季度增長 119%。同時，毛利率從 26.4% 提高至 39.5%。總運營費用雖然比去年同期增長了 24%，但僅佔總銷售額的 9%，低於一年前的 11%。同樣，非經營項目從總計 NT$.5b 的支出改善到 NT$.1b 的收入，這主要是由於台積電償還 NT$9b 的公司債券後利率較低，並從某些固定資產的處置中獲得收益。

TSMC had a net investment income of NT$.8b versus a net investment loss of NT$1.5b a year ago. This is mainly due to significantly improved operating results from wafer fabs, [inaudible] and SSMC. Pre-tax income and net income were NT$18.4b and NT$18.8b respectively representing a year-over-year increase of 341% and 99% respectively. EPS was NT$0.93, more than four times the EPS achieved for the same period last year. As a result, our net margins have improved by 11.1% in Q1 2003, to 32.7% in Q1 2004.

台積電的淨投資收益為 NT$.8b，而一年前的淨投資虧損為 NT$1.5b。這主要是由於晶圓廠、[聽不清] 和 SSMC 的經營業績顯著改善。稅前收入和淨收入分別為 NT$18.4b 和 NT$18.8b，同比分別增長 341% 和 99%。每股收益為新台幣 0.93 元，是去年同期每股收益的四倍多。因此，我們的淨利潤率在 2003 年第一季度提高了 11.1%，到 2004 年第一季度達到了 32.7%。

Slide #8 will provide you with a few selected items from TSMC's balance sheet, and some key financial ratios. TSMC continues to maintain a very solid balance sheet as we entered the quarter with cash and short-term investments of NT$126.3b, with represented less than 30% of our total assets. Our accounts receivable and inventories were maintained at a very healthy level. Accounts receivable turnover was 42 days compared to 40 days in the previous quarter while total accounts receivable increased to NT$27.2b reflecting higher March sales activity. Currently, our liabilities at the end of the quarter was NT$38.1b which is NT$7.6b higher than the end of 2003. This was mainly due to higher accounts payable to equipment vendors with our increased capital expenditure. As a result our current ratio went from 5.2 times in Q4 2003 to 4.6 times in this quarter. As for inventory, TSMC ended the quarter with NT$11b in inventory, very similar to that of the previous quarter. Inventory turnover days were 37 days for the quarter, roughly the same as the 36 days for the last quarter. TSMC has remained virtually debt free and our total cash and cash equivalents far exceeded our total liabilities.

幻燈片 #8 將為您提供台積電資產負債表中的一些精選項目，以及一些關鍵的財務比率。進入本季度時，台積電繼續保持非常穩健的資產負債表，現金和短期投資為 126.3b 新台幣，占我們總資產的不到 30%。我們的應收賬款和存貨保持在非常健康的水平。應收賬款周轉天數為 42 天，而上一季度為 40 天，而應收賬款總額增加至新台幣 27.2b 美元，反映出 3 月份銷售活動增加。目前，本季度末我們的負債為 NT$38.1b，比 2003 年底高出 NT$7.6b。這主要是由於我們的資本支出增加導致應付設備供應商的賬款增加。因此，我們的流動比率從 2003 年第四季度的 5.2 倍上升到本季度的 4.6 倍。至於庫存，台積電本季度末的庫存為新台幣 11b 元，與上一季度非常相似。本季度庫存周轉天數為 37 天，與上一季度的 36 天大致持平。台積電幾乎沒有負債，我們的現金和現金等價物總額遠遠超過我們的總負債。

Slide #9 summarizes TSMC's cash flow for the quarter. As you can see, TSMC continued to generate some cash flow from operations despite higher capital expenditures, depreciation expense for the quarter reduced by NT$.3b to NT$15.1b. This is due to some of our [aged] [inaudible] coming off depreciation, and this effect out-weighted the increased depreciation from our new facilities.

幻燈片 #9 總結了台積電本季度的現金流。如您所見，儘管資本支出增加，但台積電繼續從運營中產生一些現金流，本季度的折舊費用減少新台幣 .3 元至新台幣 15.1 元。這是由於我們的一些[老化][聽不清]折舊，這種影響超過了我們新設施增加的折舊。

During the first quarter, cash flow generated form operation activities totaled NT$32.7b and the cash used in investment activities increased from NT$15.9b to NT$23.9b during the quarter. This includes capital expenditure during the quarter that totaled NT$16.4b and cash used in short-term and long-term investments totaling NT$7.5b mainly in government bonds and money market funds.

第一季度，經營活動產生的現金流量總計新台幣 32.7b 元，本季度投資活動使用的現金從新台幣 15.9b 元增加到新台幣 23.9b 元。這包括本季度總計 16.4b 新台幣的資本支出以及用於短期和長期投資的現金總計 7.5b 新台幣，主要用於政府債券和貨幣市場基金。

Now let us look at some business analysis. Slide #10 provides a quick look at our revenue breakdown by technology. .15 micron and .18 micron has now become rather a mature process for TSMC. Starting from Q1 2004, we redefined the various technologies. .13 micron, .11 micron and 90 nanometers. With 90 nanometer products we expect this to be commercialized before the end of 2004. The top portion of the box represents the revenue percentage from our advanced technologies now defined as .13 microns and below accounted for around 20% of our total wafer sales for this quarter, up from 18% in the fourth quarter last year.

現在讓我們看一些業務分析。幻燈片 #10 快速瀏覽了我們按技術劃分的收入細分。 .15微米和.18微米現在已經成為台積電比較成熟的工藝。從 2004 年第一季度開始，我們重新定義了各種技術。 .13 微米、.11 微米和 90 納米。對於 90 納米產品，我們預計該產品將在 2004 年底前實現商業化。方框的頂部代表我們現在定義為 0.13 微米及以下的先進技術的收入百分比，占我們今年晶圓總銷售額的 20% 左右季度，高於去年第四季度的 18%。

Slide #11 provides a view by application. For the fourth quarter we saw robust growth in the communication sector during the quarter, mainly from mobile phones and wireless LANS. As the market continues it's growing momentum, as a result, revenue from communication segments further increased to 45% of our total sales, a 3% increment from the last quarter. On the other hand revenue from computers accounted for 32% of our total sales, slightly down from 35% in the previous quarter. This is due to seasonal declines. Revenue from consumer segments maintained at 17% of our total sales. Slide #12 shows the geographical breakdown of our revenues. Revenue from North America, Asia Pacific, Europe and Japan now accounts for 74%, 13%, 7% and 6% of our total revenue for the first quarter respectively. The overall trend was still in line with the previous quarter. However, a trend towards Asian territory was also visible.

幻燈片 #11 按應用程序提供視圖。對於第四季度，我們看到本季度通信行業的強勁增長，主要來自移動電話和無線局域網。隨著市場繼續保持增長勢頭，通信部門的收入進一步增加到我們總銷售額的 45%，比上一季度增加了 3%。另一方面，來自電腦的收入占我們總銷售額的 32%，略低於上一季度的 35%。這是由於季節性下降。來自消費者細分市場的收入占我們總銷售額的比例保持在 17%。幻燈片 #12 顯示了我們收入的地理分佈。來自北美、亞太、歐洲和日本的收入現在分別占我們第一季度總收入的 74%、13%、7% 和 6%。總體趨勢仍與上一季度一致。但是，也可以看到向亞洲領土發展的趨勢。

Slide #13 provides the revenue breakdown by customer kinds. In the first quarter, revenues generated from Fabless customers account for 59% of total sales, 2% down from Q4 last year, while IBM customers accounted for 30% of our total sales, 1% higher than that of 3rd quarter levels, in line with our normal patterns. Now let's move onto to slide #14. This slide shows our Fab utilization and ASP trend. TSMC's ASP declined by 3.2% from the previous quarter as we continue to honor our prior commitments. However, the slope of decline has been paced out. Our ASPs have actually started to go up since February, and will continue to improve in Q2. Overall utilization improved significantly to 105% from 101% which again demonstrated TSMC's superior manufacturing efficiency. Let's turn to slide #15. This slide summarizes our Installed Capacity by Fab. Our total capacity during the first quarter was 1,070,000 8" equivalent wafers, 3000 pieces higher than our quarter three guidance. Currently we expect our capacity for the second quarter 2004 to be 1,125,000 8" equivalent wafers. This is 5% higher than the first quarter. While the trend of shifting over to advanced technology continues, our capacity for the whole year 2004 is expected to be about 4.8m 8" equivalent wafers, representing 19% year over year growth, while 12" wafer capacity will increase by around 130%.

幻燈片 #13 提供了按客戶類型劃分的收入明細。第一季度，來自 Fabless 客戶的收入佔總銷售額的 59%，比去年第四季度下降 2 個百分點，而 IBM 客戶占我們總銷售額的 30%，比第三季度水平高 1 個百分點，符合與我們的正常模式。現在讓我們轉到第 14 張幻燈片。這張幻燈片顯示了我們的 Fab 利用率和 ASP 趨勢。由於我們繼續履行先前的承諾，台積電的平均售價較上一季度下降 3.2%。然而，下降的斜率已經放緩。我們的 ASP 實際上從 2 月開始上升，並將在第二季度繼續改善。整體利用率從101%大幅提升至105%，再次證明台積電卓越的製造效率。讓我們轉到幻燈片#15。這張幻燈片總結了我們 Fab 的裝機容量。我們第一季度的總產能為 1,070,000 個 8" 等效晶圓，比我們第三季度的指導高出 3000 片。目前我們預計 2004 年第二季度的產能為 1,125,000 個 8" 等效晶圓。這比第一季度高出 5%。雖然轉向先進技術的趨勢仍在繼續，但我們預計 2004 年全年的產能約為 480 萬片 8" 等效晶圓，同比增長 19%，而 12" 晶圓產能將增長約 130%。

The last slide, #16, provides a recap of the major events during the first quarter. I will leave that for your own reference. Finally, let's quickly go over our guidance for Q2 2004. Coming off a very strong Q1, our second quarter 2004 guidance is as follows. Wafer shipments to increase by close to 10% sequentially. ASP to improve by a low single-digit percentage point sequentially. Overall utilization rate may exceed 105%. Gross profit margins will jump a few points. Revenue from advanced technologies defined as .13 micron and below will exceed 25% of wafer sales. Demand to increase strongly in the consumer segment, modestly for communication segment, while declining modestly in the computer segment. This ends my presentation today. Thank you very much. Operator, please open the floor for questions.

最後一張幻燈片 #16 回顧了第一季度的主要事件。我會把它留給你自己參考。最後，讓我們快速回顧一下我們對 2004 年第二季度的指導。由於第一季度非常強勁，我們對 2004 年第二季度的指導如下。晶圓出貨量環比增長近 10%。平均售價環比提高個位數百分點。整體利用率可能超過105%。毛利率將躍升幾個百分點。來自定義為 0.13 微米及以下的先進技術的收入將超過晶圓銷售額的 25%。消費領域的需求強勁增長，通信領域的需求溫和增長，而計算機領域的需求則溫和下降。我今天的演講到此結束。非常感謝。接線員，請打開地板提問。

If you would like to ask a question, please press the star then the one on your touch button phone now. Questions will be taken in the order in which they are received. If at any time you would like to remove yourself from the questioning queue, please press the star then the two. Please limit your questions to one at a time to allow all participants an opportunity to ask questions of the management members. One moment please for our first question. Our first question comes from Ali Irani [ph] please go ahead with your question.

如果您想提問，請現在按星號，然後按您觸摸按鍵電話上的那個。問題將按照收到的順序進行。如果您想在任何時候將自己從提問隊列中移除，請按星號，然後按兩個。請將您的問題一次限制為一個，以便所有參與者都有機會向管理人員提問。請稍等一下我們的第一個問題。我們的第一個問題來自 Ali Irani [ph]，請繼續你的問題。

Yes, good morning, and congratulations on the strong results and the guidance. Looking at your capacity utilization and your capacity adds, it seems that clearly your bottlenecked in the Fabs, and I'm just wondering what the impact of the technology migrations is and the increase of [metalization] is on reducing your overall wafers out, and whether those trends will accelerate though the balance of the year, thank you.

是的，早上好，祝賀你取得了很好的成績和指導。看看你們的產能利用率和你們的產能增加，很明顯你們在晶圓廠中遇到了瓶頸，我只是想知道技術遷移的影響是什麼，[金屬化] 的增加對減少你們的整體晶圓有什麼影響，並且這些趨勢是否會在今年餘下時間加速，謝謝。

Well, we buy equipment-before we talk about this capacity build up, you know we buy equipment based on the number of metal [layers], for instance. I'll give you an example, for .13 micron we buy equipment for [inaudible] metals so that we have some, we do have [inaudible]. Did I answer your question?

好吧，我們購買設備——在我們談論這種能力建設之前，你知道我們根據金屬 [層數] 的數量購買設備，例如。我給你舉個例子，對於 0.13 微米，我們為 [聽不清] 金屬購買設備，所以我們有一些，我們確實有 [聽不清]。我回答你的問題了嗎？

Thank you. Our next question comes from Michael McConnell with Pacific Crest Securities please go ahead with your question.

謝謝。我們的下一個問題來自 Pacific Crest Securities 的 Michael McConnell，請繼續你的問題。

Thank you. I was curious to see on the pricing improvement in Q2, do you feel, considering you're already very highly weighted normally to PCs, which seem to be decreasing, is the pricing improvement coming more from better mix in terms of .13 micron sales, or is it from some of these contracts that you were honoring now, you'll be able to renegotiate them. Could you please provide some color there please?

謝謝。我很好奇看到第二季度的定價改善，你覺得，考慮到你已經非常重視 PC，這似乎正在下降，定價改善更多地來自 0.13 微米銷售方面的更好組合，或者是您現在正在履行的其中一些合同，您將能夠重新談判它們。你能提供一些顏色嗎？

Actually the improving ASP is coming from both the program mix improvement and also the high technology price increase, and as we explained earlier, the program mix improvement is going to be 5%, below, .13 micron will account for 25%. Other than that we also see for each technology, ASP goes up.

實際上，ASP 的提高既來自程序組合的改進，也來自高科技價格的上漲，正如我們之前解釋的那樣，程序組合的改進將達到 5%，低於 .13 微米將佔 25%。除此之外，我們還看到每種技術的 ASP 都在上升。

Okay, so you're actively raising prices to your customers right now?

好的，所以您現在正在積極地向客戶提價？

Well, we wouldn't put that such a [black and white], basically, the chairman actually said in the afternoon, we [inaudible] really raise prices. If we do [inaudible] very infrequent, it was a very selective set of customers. I think we do have some, in some cases we do have some increase in the ASP, within a certain technology group, but I think the increase mostly still comes from the mix.

好吧，我們不會把這樣的 [黑白]，基本上，主席實際上在下午說，我們 [聽不清] 真的提高了價格。如果我們 [聽不清] 非常不頻繁，那是一群非常挑剔的客戶。我認為我們確實有一些，在某些情況下我們確實在某個技術組內的 ASP 有所增加，但我認為增加主要仍然來自組合。

Okay. And Lora, could you help us. I know tax rates are always difficult to forecast, but there's obviously a lot of fluctuation in that, but could you give us any, you know, your best guess at least for Q2 on the tax rates for the deferred tax credit?

好的。勞拉，你能幫幫我們嗎？我知道稅率總是很難預測，但顯然有很大的波動，但你能給我們任何，你知道的，你至少對第二季度遞延稅收抵免的稅率的最佳猜測嗎？

Okay, actually we calculate tax on a yearly basis rather than on quarterly basis. The tax regulations are quite complex in Taiwan. But putting it simple, this year we have seen very high utilization and higher portion of revenue which is so-called tax exempt revenue coming from the new fab. So the percentage of tax exemption is higher than last year. Therefore the tax rate will be lower than last year. So we have, using 13% as our calculation to estimate our tax. The number was 18% last year.

好的，實際上我們是按年而不是按季度計算稅收的。台灣的稅法相當複雜。但簡單來說，今年我們看到了非常高的利用率和更高比例的收入，即來自新晶圓廠的所謂免稅收入。所以免稅比例比去年高。因此，稅率將低於去年。所以我們使用 13% 作為計算來估算我們的稅收。去年這個數字是 18%。

Okay, thank you very much.

好的，非常感謝。

Thank you. Our next question comes from Mark Fitzgerald [ph] with Bank of America, please go ahead with our question.

謝謝。我們的下一個問題來自美國銀行的 Mark Fitzgerald [ph]，請繼續我們的問題。

I'm interested to know if given the mix shift that you're planning for the leading edge technologies to 25%, why are we not getting a bigger profit in ASPs at this point, given that mix shift? It's a pretty dramatic jump.

我很想知道，如果考慮到您計劃將領先技術的混合轉變為 25%，那麼考慮到這種混合轉變，為什麼我們此時不能在 ASP 中獲得更大的利潤？這是一個非常戲劇性的跳躍。

The advanced technology accounts for 25% and that actually is a component of the ASP increase. As we guided, the ASP will increase by only low single-digits. And advanced technology we will see some mild increase for certain technologies. That's the [inaudible] and is another quantum jump increase.

先進技術佔 25%，這實際上是 ASP 增長的一個組成部分。正如我們所指導的那樣，ASP 將僅以低個位數增長。在先進技術方面，我們將看到某些技術的溫和增長。那是 [聽不清] 並且是另一個量子跳躍增加。

Okay, maybe I can ask it another way. Is there still pricing pressure in the trailing edge technologies at this point? Would you expect declines in trailing edge technologies?

好吧，也許我可以換個方式問。此時尾端技術是否仍然存在定價壓力？您認為後緣技術會下降嗎？

I would characterize it as very little right now. However, in some cases as also we said during the opening remarks that we did have some contractual agreements signed last year, so that will of course be implemented as we move on during the year. But basically from [inaudible] the pricing pressure from the [inaudible].

我現在認為它很少。然而，在某些情況下，正如我們在開場白中所說，我們去年確實簽署了一些合同協議，因此隨著我們在這一年的進展，這些協議當然會得到實施。但基本上來自 [聽不清] 來自 [聽不清] 的定價壓力。

Okay, and can I just ask one big macro question-is any of the news that's come out of China about trying to slow their growth rates in China change any of your own plans in terms of investment strategies in China at all?

好吧，我能問一個大的宏觀問題嗎？來自中國的任何關於試圖放慢他們在中國的增長率的消息是否會改變您在中國的投資策略方面的任何計劃？

We have not changed our plan in China.

我們沒有改變在中國的計劃。

[inaudible].

[聽不清]。

Thank you.

謝謝。

Thank you our next question comes from Perna Perusama [ph] with the Diawa Institute of Research [ph] please go ahead with your question.

謝謝，我們的下一個問題來自 Perna Perusama [ph] 和 Diawa 研究所 [ph]，請繼續你的問題。

Thank you. I have a first question the R&D expenses. How should I model for this year on the R&D expense for your company?

謝謝。我的第一個問題是研發費用。我應該如何為貴公司今年的研發費用建模？

I think for a long time our R&D expense has been about 5% of our total revenue.

我認為很長一段時間以來，我們的研發費用一直佔總收入的 5% 左右。

And could you please elaborate a little bit on the equipment delivery schedule, I think someone said the delivery schedule [inaudible]. Are you seeing any problem on that side?

能否請您詳細說明一下設備交付時間表，我想有人說了交付時間表 [聽不清]。你看到那邊有什麼問題嗎？

Yes, it's difficult to hear your question, but I assume your question is on the equipment [inaudible] at [DMI].

是的，很難聽到你的問題，但我想你的問題是關於 [DMI] 的設備 [聽不清]。

[inaudible] the equipment delivery has been postponed because of the key components [inaudible].

[聽不清] 由於關鍵部件 [聽不清]，設備交付已被推遲。

All right. I think we, we did hear in some cases, some of the key components have been delayed. However, [inaudible] we have seen little impact from such a delay. We did see sometimes a week, 10 day type of delay for our key tools, but those were short enough to not impact our ramp-up schedule.

好的。我想我們，我們確實聽說在某些情況下，一些關鍵組件被推遲了。但是，[聽不清] 我們認為這種延遲的影響很小。我們確實有時會看到我們的關鍵工具有一周或 10 天的延遲，但這些延遲足夠短，不會影響我們的升級計劃。

Hello?

你好？

Pardon me sir, did you have any further questions?

對不起，先生，您還有其他問題嗎？

Hello?

你好？

Yes, could you give us the fab schedule and by what time you think that the Fab 14 will be at break even point?

是的，你能告訴我們晶圓廠的時間表嗎？你認為 Fab 14 什麼時候會達到盈虧平衡點？

Fab 14. Well, I think the, you know, Fab 14 will start production some time in late 3rd quarter, early 4th quarter time, but it will, I mean, this question has a lot to do with both demand and, but I think right now it's difficult to give you a specific number. But we believe the, we should be able to break even if we can run something like 6,000-7,000 wafers per month output.

Fab 14。好吧，我認為 Fab 14 將在第三季度末、第四季度初的某個時間開始生產，但我的意思是，這個問題與需求有很大關係，但我想想現在很難給你一個具體的數字。但我們相信，即使我們可以每月產出 6,000-7,000 片晶圓，我們也應該能夠實現收支平衡。

Thank you. Our next question comes from Dan Hiler [ph] with Merrill Lynch, please go ahead with your question.

謝謝。我們的下一個問題來自美林證券的 Dan Hiler [ph]，請繼續你的問題。

Hi, good evening. I have a follow-up from today when you talked about your computer segment being soft. Could you explain why it's soft? Do you think it's basically end markets, or is it product shift, or is it competition, what's causing that decline?

嗨，晚上好。從今天開始，當你談到你的計算機部分是軟的時，我有一個後續行動。你能解釋一下為什麼它是軟的嗎？你認為它基本上是終端市場，還是產品轉移，或者是競爭，是什麼導致了這種下降？

Well, Dan, we mentioned the computer, for the second quarter revenues are clearly-

好吧，丹，我們提到了電腦，因為第二季度的收入顯然是——

Down a little bit.

低一點。

Yes, they have a modest decline. And I think, and a lot of which comes from the seasonality factor. And we're going to see-we are seeing the pickup in the late 2nd quarter. So I'm not too, really, I don't see too much of a, really a [inaudible].

是的，他們有適度的下降。我認為，其中很多來自季節性因素。我們將看到 - 我們將在第二季度末看到回升。所以我不太，真的，我沒有看到太多，真的 [聽不清]。

Right so following a normal seasonal pattern of a strong 4th quarter in those [graphics] and chip sets. Are there any areas that are new in computer that you are seeing new products, including displays and other items?

因此，在那些 [圖形] 和芯片組中，遵循第 4 季度強勁的正常季節性模式。您看到的新產品（包括顯示器和其他物品）在計算機中是否有任何新領域？

Meaning [in the last weeks].

意思是[在過去幾週]。

Are you seeing any new growth opportunities within computer given that that's the slower growth segment? Are you seeing any new opportunities for growth?

鑑於計算機是增長較慢的部分，您是否在計算機領域看到任何新的增長機會？您是否看到任何新的增長機會？

Well, I think certainly anything that's related to [inaudible] for higher growth, and the, you know, [the chips for] regular PC component. So, you'll see the controller [inaudible], and that sort of thing.

好吧，我認為肯定與 [聽不清] 相關的任何東西都可以實現更高的增長，而且，你知道，[用於] 常規 PC 組件的芯片。所以，您會看到控制器 [聽不清] 之類的東西。

Right. So given that there is strong demand for mainstream technologies in addition to your leading edge, how are you addressing the mainstream tightness? Is it through productivity or potentially could you see greater equipment additions there? And if so, how much-what percentage increase are you talking about for 8", would it be 5% or 10%?

正確的。因此，鑑於除了您的領先優勢之外，對主流技術的需求也很強勁，您將如何解決主流技術的緊缺問題？是通過生產力還是您可能會在那裡看到更多的設備？如果是這樣，您所說的 8" 增加多少百分比？是 5% 還是 10%？

Actually, for about the last 6 months or so, we have continuously put in incremental investment for tools, we try to get mostly [new tools], of course, as much as possible, to add incremental capacity for our [pure] technology. The percentage I would, I think [inaudible] we talking about maybe 5% or better, 5% and up. But we [inaudible] though the productivity improvement also.

實際上，在過去大約 6 個月左右的時間裡，我們一直在不斷地對工具進行增量投資，我們試圖獲得大部分 [新工具]，當然，盡可能多地為我們的 [純] 技術增加增量能力。我想 [聽不清] 我們談論的百分比可能是 5% 或更高，5% 或更高。但我們 [聽不清] 雖然生產力也有所提高。

Any potential that Fab 7, which you're planning to move to China, maybe gets delayed somewhat, based on immediate customer needs?

根據客戶的即時需求，您計劃搬到中國的 Fab 7 是否有可能會有所延遲？

Well, we are going to move some equipment for Fab 7 to [inaudible], that's what we call the [inaudible] in China for sure, but I [inaudible], as we stated earlier we are going to have some wafer output by the end of the year. However we are going to also continue the Fab 7 operation at a somewhat lower capacity compared to [inaudible] here, but so we are not going to impact our customer's shipment as you just mentioned.

好吧，我們將把 Fab 7 的一些設備轉移到 [聽不清]，這就是我們在中國所說的 [聽不清]，但是我 [聽不清]，正如我們之前所說的那樣，我們將有一些晶圓輸出年底。然而，與這裡的 [聽不清] 相比，我們還將以較低的產能繼續 Fab 7 的運營，但我們不會像您剛才提到的那樣影響我們客戶的出貨量。

Rick, I didn't hear you, did you say you were going to keep it where year-end capacity was last year? I didn't catch that.

里克，我沒聽到你說你要保持去年年底的產能嗎？我沒聽清楚。

Well, we'll have it somewhat lower, so that would be compared to that over the last year.

好吧，我們會稍微降低一些，以便與去年相比。

Got it, thank you.

收到了。謝謝。

Thank you, our next question comes from Johnny Chen [ph] with Deutsche Security Agent Limited [ph], please go ahead with your question.

謝謝，我們的下一個問題來自 Johnny Chen [ph] 和 Deutsche Security Agent Limited [ph]，請繼續你的問題。

Hi Rick. Just two questions, the first is obviously you're seeing a very tight capacity, high utilization in your Fabs more mature technologies. Are you thinking about possibly working with some other IDMs or you know, the [inaudible] IDMs or possibly working with them on the mature technologies together with buying new equipment. That's the first question.

嗨瑞克。只有兩個問題，第一個顯然是你看到你的晶圓廠的產能非常緊張，利用率很高，更成熟的技術。您是否正在考慮與其他一些 IDM 或您知道的 [聽不清] IDM 合作，或者可能與他們在成熟技術上合作併購買新設備。這是第一個問題。

We have, of course, first of all, we are looking at our own wafer Fabs to see whether we can add more capacity, obviously. But I'd say we can [control ourselves], we do not rule out anything, but I don't think we have anything really to report here.

當然，首先，我們正在研究我們自己的晶圓廠，看看我們是否可以增加更多產能。但我想說我們可以[控制自己]，我們不排除任何可能性，但我認為我們在這裡沒有什麼可以真正報告的。

Okay, the second question in the [inaudible] meeting in Tapei this afternoon, the Chairman obviously was kind of optimistic about 2005. And TSMC will be looking to have more capacity coming in. I wondering what kind of catalyst or driver are you seeing for 2005 at this moment?

好的，今天下午在台北舉行的 [聽不清] 會議上的第二個問題，主席顯然對 2005 年持樂觀態度。台積電將尋求更多的產能。我想知道你看到什麼樣的催化劑或驅動力2005年此時此刻？

Well, we believe actually, the main driver is the overall robust economy. We do not see any specific segment slowing down, if anything we-I believe our long-term modeling research people still view normal to maybe above normal growth for major segments. Overall robust economy.

好吧，我們實際上認為，主要驅動力是整體強勁的經濟。我們沒有看到任何特定細分市場放緩，如果有的話，我們 - 我相信我們的長期建模研究人員仍然認為主要細分市場的增長正常甚至高於正常水平。整體經濟強勁。

Is there any specific applications or is it more IDM outsourcing, or is it a combination of all those factors?

是否有任何特定的應用程序或更多的 IDM 外包，還是所有這些因素的組合？

I would say, certain application definitely will grow faster than the other such as the more mature technologies, such as the [camar] chips or CIS chips, drivers, those kind of things for the-and for leading technology we believe [inaudible] the baseline chip will continue to grow and with higher computing power which will need probably more silicon. In general-and of course consumer application will continue to grow. First of all in home electronics will increase. I think as [inaudible] will continue as the price continues to go lower [inaudible] that really is [inaudible]. We have many customers working in that area.

我會說，某些應用肯定會比其他應用增長得更快，例如更成熟的技術，例如 [camar] 芯片或 CIS 芯片、驅動程序，以及我們認為 [聽不清] 領先技術的那些東西基線芯片將繼續增長，並具有更高的計算能力，這可能需要更多的矽。總的來說——當然消費者應用程序將繼續增長。首先是家用電子產品將增加。我認為隨著價格繼續走低 [聽不清] [聽不清] [聽不清]，這確實是 [聽不清]。我們有很多客戶在那個領域工作。

Okay, thanks.

好的謝謝。

Thank you. Our next question comes from Rea Lee [ph] with ABN Emerald Asia Limited [ph], please go ahead with your question.

謝謝。我們的下一個問題來自 Rea Lee [ph] 和 ABN Emerald Asia Limited [ph]，請繼續你的問題。

Hi Rick, I would just like to ask a question and follow up the, Elizabeth's comment regarding the gross margin. Can you give more color there where you say the gross margin will jump a few points, does that mean from 39.5% in your first quarter to around 43-44% in the second quarter. You don't need to give me a detailed number, just a range, is that a correct indication?

嗨里克，我只想問一個問題並跟進伊麗莎白關於毛利率的評論。你能在你說毛利率會上升幾個點的地方給出更多的顏色嗎，這是否意味著從第一季度的 39.5% 到第二季度的 43-44% 左右。你不需要給我一個詳細的數字，只是一個範圍，這是正確的指示嗎？

When we say jump a few points, we're talking about something 3-5% range.

當我們說跳躍幾個點時，我們指的是 3-5% 的範圍。

Sequential?

順序？

Yes.

是的。

Versus the 39.5% in the first quarter.

與第一季度的 39.5% 相比。

Yes, first quarter was 39.5%.

是的，第一季度是 39.5%。

Okay, thank you very much, appreciate that.

好的，非常感謝，感激不盡。

Thank you. Our next question comes from Sunil Gupta [ph] with Morgan Stanley. Please go ahead with your question.

謝謝。我們的下一個問題來自摩根士丹利的 Sunil Gupta [ph]。請繼續你的問題。

Hi, I have two questions. First, could you talk about in Q1, what percent of the revenue came from non-wafer [inaudible].

嗨，我有兩個問題。首先，您能談談第一季度的收入中有多少百分比來自非晶圓 [聽不清]。

Non-wafer full revenue is something less than 10%, in the 7-8% range.

非晶圓的總收入不到 10%，在 7-8% 的範圍內。

Okay. And could you also talk about in Q1, how many wafers you sold which were produced by third party fabs such as Vanguard or any others?

好的。您能否在第一季度談談您銷售了多少由第三方晶圓廠（例如 Vanguard 或其他晶圓廠）生產的晶圓？

Okay, wafer-I wont' talk about a quantity-the revenue produced by our affiliate fabs was roughly, slightly higher than 10%.

好吧，晶圓——我不會說數量——我們附屬晶圓廠的收入大約略高於 10%。

Okay, and my last part of my question is, what kind of lead times are you seeing on your leading edge technologies and also the cycle times?

好的，我問題的最後一部分是，您在前沿技術和周期時間上看到什麼樣的交貨時間？

I think we're seeing roughly here 8 - 10 weeks.

我認為我們大約會在這裡看到 8 到 10 週。

Thank you.

謝謝。

Thank you. Our next question comes from Ivan Go [ph] with Vesna, Kleinwort and Wasserstein [ph] please go ahead with your question.

謝謝。我們的下一個問題來自 Ivan Go [ph] 與 Vesna、Kleinwort 和 Wasserstein [ph]，請繼續你的問題。

Hi, good evening. A couple of questions. First of all, I notice that you've increased the forecast for full-year capacity from 4.6 million to 4.8 million. I would just like to find out where the additional capacity will be added, which fabs will be added.

嗨，晚上好。幾個問題。首先，我注意到您將全年產能預測從 460 萬增加到 480 萬。我只想知道將在哪裡增加額外產能，將增加哪些晶圓廠。

They're all 8". They're 8" capacity. Across the board, we are increasing [inaudible] [every fab].

它們都是 8"。它們都是 8" 容量。總體而言，我們正在增加 [聽不清] [每個晶圓廠]。

Okay, second question is, given that you're going to start Fab 14 in late Q3 or early Q4, can you perhaps talk a bit about when you think that Fab 12b may start, and if you are going to build another Fab shell soon?

好的，第二個問題是，鑑於您將在第三季度末或第四季度初啟動 Fab 14，您能否談談您認為 Fab 12b 何時啟動，以及您是否打算很快建造另一個 Fab 外殼？

I think for Fab 12 the second week of October. We'd like to have start wafer output in the first quarter, '05 first quarter next year. The sooner the better. We actually, the second phase of Fab 14, we already have the shell pretty much built, although we have not done any of the facility work yet.

我認為 Fab 12 是在 10 月的第二週。我們希望在明年第一季度，即 05 年第一季度開始生產晶圓。越早越好。事實上，Fab 14 的第二階段，我們已經基本建成外殼，儘管我們還沒有完成任何設施工作。

Okay, so, beyond Fab Pro phase 2, and Fab 14, you are not building another shell.

好的，所以，除了 Fab Pro 第 2 階段和 Fab 14 之外，您不會再構建另一個外殼。

No, not now.

不，不是現在。

And the third question is, I see that you spent about close to NT$500m in CAPEX in the first quarter. Can you perhaps give an idea of how the CAPEX, the remaining CAPEX will the spread the rest of this year from Q2 to Q4?

第三個問題是，我看到您在第一季度的資本支出中花費了近新台幣 5 億元。你能不能說說資本支出，剩餘的資本支出將如何在今年餘下的時間裡從第二季度擴散到第四季度？

Okay, first half year is slightly more than half. It's front end loaded, first half year we have higher CAPEX than second half.

好的，上半年略多於一半。它是前端負載，上半年我們的資本支出高於下半年。

Okay, and my last question is regards to the interest income and interest expense. Can you perhaps break down net interest income into the income and expense? Separate it out?

好的，我的最後一個問題是關於利息收入和利息支出。您能否將淨利息收入分解為收入和支出？把它分開？

Oh, we don't really know these different numbers, you see we have very little debt. So the interest expense is quite small.

哦，我們真的不知道這些不同的數字，你看我們的債務很少。所以利息支出很小。

All right, thank you so much.

好的，非常感謝。

Thank you. Ladies and gentlemen if there are any additional questions please press the star followed by the one on your touchtone phone at this time. As a reminder if you are using speaker equipment you will need to lift the handset before pressing the numbers. Our next question comes from Matt Gable [ph] with Koritel Capital [ph], please go ahead with your question.

謝謝。女士們，先生們，如果還有任何其他問題，請此時按您按鍵式電話上的星號，然後再按那個。提醒一下，如果您使用揚聲器設備，您需要在按下數字之前拿起聽筒。我們的下一個問題來自 Matt Gable [ph] 和 Koritel Capital [ph]，請繼續你的問題。

Hi. I might have missed a few of these answers. Is there any official guidance for 2004 CAPEX, or is the official guidance the same as the prior guidance? The second question, can you describe the strength or lack thereof of your wireless business in Q2 sequentially, and finally just generally, what are you seeing in terms of wafer start trends right now? Are they still on an increasing trend? Are they flat? Slowing down? Thank you.

你好。我可能錯過了其中一些答案。 2004年資本支出是否有任何官方指導，或者官方指導是否與之前的指導相同？第二個問題，您能否按順序描述您的無線業務在第二季度的優勢或不足，最後一般來說，您目前在晶圓啟動趨勢方面看到了什麼？它們是否仍處於上升趨勢？它們是平的嗎？慢下來？謝謝。

The CAPEX forecast for this year, we have guided last quarter is NT$2b for the whole year. And we have not changed our guidance at this moment but I think the trend is, maybe it's more likely to be higher than that NT$2b but we have not decided to change the guidance at this moment. Your second question is regarding--?

今年的 CAPEX 預測，我們上個季度的指導是全年新台幣 2b 美元。我們目前還沒有改變我們的指導，但我認為趨勢是，也許它更有可能高於 2b 新台幣，但我們目前還沒有決定改變指導。你的第二個問題是關於——？

Wireless strength in Q2-sequentially what are you seeing? Is it continuing?

Q2 中的無線強度 - 您看到了什麼？它在繼續嗎？

Yes. I think the, actually, yes, the [inaudible] has continued to be strong, to show good growth. We actually are also seeing a good growth on the part of the Bluetooth contingent. Your third question is about wafer starts?

是的。我認為，實際上，是的，[聽不清] 繼續保持強勁，以顯示良好的增長。我們實際上也看到了藍牙隊伍的良好增長。您的第三個問題是關於晶圓啟動？

Yes, just the general trend, are they still on a general uptrend? Are they flattening out now, or?

是的，只是總體趨勢，它們是否仍處於總體上升趨勢？他們現在變平了嗎？

Okay. They continue to go up.

好的。他們繼續上升。

Okay, one more on the wireless strength. Are you still seeing the same percentage increases in orders, or has the rate of growth slowed? Is the rate of growth still the same?

好的，關於無線強度的更多信息。您是否仍看到相同百分比的訂單增長，或者增長率是否放緩？增長率還是一樣嗎？

I'd say the rate of growth is stronger in the second quarter than in our first quarter.

我想說第二季度的增長率比第一季度要強。

Okay, thank you very much, nice quarter.

好的，非常感謝，不錯的季度。

Thank you.

謝謝。

Thank you, our next question comes from Ali Irani with CIBC World Markets, please go ahead with your question.

謝謝，我們的下一個問題來自 CIBC World Markets 的 Ali Irani，請繼續你的問題。

Yes, again, to your comments about the trend being to the upside on CAPEX, are there equipment bottlenecks at this point to prevent you from growing capacity stronger than the 19% year-over-year that you have guided, and what would it take if customer demand comes in stronger, into the seasonal second half build for TSM to strategically put in place more capacity?

是的，再一次，對於你關於資本支出上升趨勢的評論，目前是否存在設備瓶頸來阻止你的產能增長超過你所指導的 19%，這需要什麼如果客戶需求更強勁，進入下半年的季節性建設，TSM 是否會戰略性地增加產能？

It's really NT$2b CAPEX has pretty much taken care of the demand for 2004. A big chunk of the NT$2b actually is to support 2005.

這真的是 NT$2b CAPEX 幾乎已經滿足了 2004 年的需求。NT$2b 的很大一部分實際上是為了支持 2005 年。

But you still seem to be operating north of 100%, and there are reports of your customers needing to go to other suppliers for capacity, even here through the second quarter. I'm just wondering if at this point, if its a bottlenecked delivery for example of Lithography Systems that prevents you from strategically adding more capacity in the short term.

但是你似乎仍然在 100% 以上的運營，而且有報導稱你的客戶需要去其他供應商尋求產能，即使是在第二季度也是如此。我只是想知道在這一點上，例如光刻系統的交付瓶頸是否會阻止您在短期內戰略性地增加更多容量。

Really, I thought Lora was correct in stating, actually, we are getting the equipment that we need to ramp our capacity. We are somewhat limited by the, in the first half of the year, probably [inaudible]. The second phase of Fab 12 is, or Fab 14, will start production late 3rd quarter and phase 2 of Fab 12 will start production in the first quarter next year. So that's probably where the [limiting factor] is. But not [inaudible]. And in the meantime, of course, we are adding, as I said earlier, incremental equipment, bottleneck equipment relating to Fabs to add more capacity, and we're getting more output [inaudible] capacity.

真的，我認為 Lora 的說法是正確的，實際上，我們正在獲得提高產能所需的設備。在今年上半年，我們可能會受到一些限制 [聽不清]。 Fab 12 的第二階段或 Fab 14 將於第三季度末開始生產，Fab 12 的第二階段將於明年第一季度開始生產。所以這可能就是[限制因素]所在的地方。但不是 [聽不清]。當然，與此同時，正如我之前所說，我們正在添加增量設備，與晶圓廠相關的瓶頸設備以增加更多產能，並且我們正在獲得更多的輸出[聽不清]產能。

How much more capacity could you see added in your 8" Fabs to bring them to nominal capacity?

您能看到在您的 8" 晶圓廠中增加多少產能才能使它們達到標稱產能？

What do you mean by nominal capacity?

標稱容量是什麼意思？

Well, in terms of expansion, obviously availability of 300mm and 200mm equipment is different at this time. How much more room do you have to increase 200mm capacity available by year end?

那麼，在擴展方面，顯然此時 300mm 和 200mm 設備的可用性是不同的。到年底，您還有多少空間可以增加 200 毫米的可用容量？

Well, we're pretty much-we have ordered the equipment to fill the available space.

好吧，我們差不多了——我們已經訂購了設備來填補可用空間。

Thank you.

謝謝。

Thank you, our next question is a follow-up from Mark Fitzgerald [ph], please go ahead with your follow-up.

謝謝，我們的下一個問題是 Mark Fitzgerald [ph] 的跟進，請繼續跟進。

Just a quick question. Can you give us some guidance on share count for the next quarter and just longer term, can you give us some idea of how annual bonuses impact your share count in terms of the timing, what quarter it hits?

只是一個簡單的問題。你能給我們一些關於下個季度和更長期的股票數量的指導嗎，你能告訴我們年度獎金如何影響你的股票數量的時間，它會影響哪個季度嗎？

Okay, sorry. You're asking about the share increase through the compensation?

哦抱歉。你問的是通過薪酬增加股份？

Yes.

是的。

So even employee bonus. Okay. I think we have, the board has approved to make a proposal to a shareholder meeting to issue 14% plus dividends. So I think that the shares are going to increase 14%, well from employee bonuses, which is roughly, maybe, roughly 6%.

所以即使是員工獎金。好的。我想我們已經，董事會已批准向股東大會提出一項提議，以發行 14% 以上的股息。所以我認為股價將上漲 14%，主要來自員工獎金，大概是 6%。

6% increase in the share count for the June quarter?

6 月季度的股票數量增加 6%？

No, I don't think that's what we mean.

不，我不認為那是我們的意思。

Thank you Mr. Fitzgerald, did you have any additional questions?

謝謝菲茨杰拉德先生，您還有其他問題嗎？

Actually I didn't get an answer there.

實際上我在那裡沒有得到答案。

Well Mark if you recall not too long ago when our board approved the proposal for the stock dividends and including bonus, I think at that time we had a fairly detailed press release where we actually showed the number of shares that will be coming out from stock dividends as well as from employee bonus shares. If you can go back to that press release you will have the exact numbers. Otherwise I can send you an email and give you the details later on.

好吧，馬克，如果你還記得不久前我們的董事會批准了股票股息和包括紅利的提案，我想當時我們有一份相當詳細的新聞稿，其中我們實際顯示了將從股票中提取的股票數量股息以及員工紅股。如果你能回到那份新聞稿，你就會得到確切的數字。否則我可以給你發一封電子郵件，稍後再給你詳細信息。

Okay, but is there any specific guidance that we should use for our share count for the June quarter at this point that you can give us?

好的，但是此時您可以給我們任何具體的指導，我們應該使用我們的 6 月季度的股票數量嗎？

Well, depending on the possibilities. So we have, we don't have any numbers at the moment.

好吧，取決於可能性。所以我們有，我們目前沒有任何數字。

Okay, thank you.

好的謝謝。

Thank you, our next question comes from Asish Kumar [ph] with Credit Suisse First Boston Corporation. Please go ahead with your question.

謝謝，我們的下一個問題來自瑞士信貸第一波士頓公司的 Asish Kumar [ph]。請繼續你的問題。

Thank you. My first question is that you have provided full year capacity at about 4.8 million. If you could tell us what is the annualized capacity at which you exit '04?

謝謝。我的第一個問題是你們提供了大約 480 萬的全年產能。如果您能告訴我們您在 04 年退出時的年產能是多少？

Are you asking-using our 4th quarter capacity times 4 is approximately 5.3 million pieces.

你問的是——用我們第 4 季度的產能乘以 4 大約是 530 萬件。

Okay. And ma'am, I think earlier Rick explained but I couldn't hear clearly, what is the type of capacity you're looking to shift to China and which quarter do we do that? I just couldn't hear him clearly that time.

好的。女士，我想里克早些時候解釋過，但我聽不清楚，你希望轉移到中國的產能類型是什麼，我們在哪個季度這樣做？那一次我只是聽不清楚他的聲音。

Oh, we're going to ship, the basically .25, ah, .35 micron capacity from Taiwan to China out in, probably this quarter. I think the government approved that this afternoon. So we going to start shifting this quarter.

哦，我們可能會在本季度從台灣向中國運送基本上 0.25，啊，0.35 微米的產能。我想政府今天下午批准了。所以我們將在本季度開始轉變。

And how much capacity would the China Fab have perhaps by the end of this year?

到今年年底，中國工廠可能會有多少產能？

It will be a few thousand.

這將是幾千。

Yes, very small capacity.

是的，容量很小。

Because [inaudible] just starting off.

因為 [聽不清] 才剛剛開始。

Sure, sure. And would it be fair to say that, you know clearly we have had, the ASP trend is improving. And Q2 will have some sequential growth. Would this growth accelerate into the 3rd quarter? That is, we'll see a stronger growth moving into Q3?

一定一定。可以公平地說，您清楚地知道我們已經擁有，ASP 趨勢正在改善。第二季度將有一些連續增長。這種增長會加速到第三季度嗎？也就是說，我們將看到更強勁的增長進入第三季度？

We believe the outlook for the ASPs remains favorable, however, I think it's somewhat early to give you a forecast right now. We'll talk about that at next [inaudible].

我們相信 ASP 的前景仍然看好，但是，我認為現在給你一個預測還為時過早。我們將在接下來 [聽不清] 討論這個問題。

Sure. Sure. And my final question is, I think for '04 and in the Taiwan conference the company guided to depreciation being flat over '03. I was wondering if you could tell us in '04 which quarter does depreciation bottom? I guess some point in time with increased CAPEX it will start to pick up again. So will it bottom in the second quarter? Or the third quarter?

當然。當然。我的最後一個問題是，我認為在 04 年和台灣會議上，公司指導折舊與 03 年持平。我想知道您能否在 04 年告訴我們折舊在哪個季度觸底？我想隨著 CAPEX 的增加，它會在某個時間點再次開始回升。那麼它會在二季度觸底嗎？還是第三季？

Okay, if you see the CAPEX it's coming from the first half, it's quite even. It's slightly front loaded the first half. Actually our [aged] depreciation is coming off quite evenly, through the whole year. So, if you are trying to differentiate which quarter you would see the depreciation goes up, it's not quite obvious. You don't see a very big impact on depreciation because of the new CAPEX. When we have new CAPEX and [aged] coming off depreciation quite [inaudible].

好吧，如果你看到 CAPEX 是從上半年開始的，它是相當均勻的。上半場稍微提前了。實際上，我們的 [年長] 折舊在全年都相當均勻地減少。因此，如果您試圖區分哪個季度您會看到折舊率上升，這並不是很明顯。由於新的資本支出，您看不到對折舊有很大影響。當我們有新的資本支出和 [年邁的] 相當 [聽不清] 的折舊。

Thank you very much.

非常感謝。

Thank you, our next question comes from Bihavan Shaw [ph] from JP Morgan Securities, please go ahead with your question.

謝謝，我們的下一個問題來自摩根大通證券的 Bihavan Shaw [ph]，請繼續你的問題。

Yes, thank you. I want to go back to some comment that you have made in the afternoon about expecting more than 40% volume growth in 2004. My question is, based on your analysis, out of 40%, how much is pure market growth, or [fair market]? How much is increased IDM outsourcing, and how much your customers simply building too much inventories because they're not getting enough capacity?

是的，謝謝。我想回到你下午發表的關於預計 2004 年銷量增長超過 40% 的一些評論。我的問題是，根據你的分析，在 40% 中，有多少是純市場增長，或者 [公平市場]？ IDM 外包增加了多少，您的客戶有多少因為沒有獲得足夠的產能而簡單地建立了過多的庫存？

Well, we have, I don't think we can really answer your question accurately. We probably can go back and do some analysis, from the IDM point of view, but as to how much is going into inventory, I don't have that, it's a very difficult question to answer. We ask our customers [inaudible]. I think, [I feel], I mean, so inventory level is increasing somewhat, but mostly because of the level was in general very low during the past couple of quarters. So low that in some cases they were causing a line shutdown for our customers. That's why they are now putting into inventory, some inventory. But as far as I know, every customer is still very cautious because nobody really has forgotten about the last three years. But that's kind of qualitative answer to your question but I think it's very difficult to give you a quantitative one.

好吧，我們有，我認為我們不能真正準確地回答你的問題。我們可能可以回去做一些分析，從 IDM 的角度來看，但至於有多少庫存，我沒有，這是一個很難回答的問題。我們詢問我們的客戶 [聽不清]。我認為，[我覺得]，我的意思是，庫存水平有所增加，但主要是因為在過去幾個季度中，庫存水平總體上非常低。如此之低，以至於在某些情況下它們會導致我們的客戶停產。這就是為什麼他們現在要投入庫存，一些庫存。但據我所知，每個客戶仍然非常謹慎，因為沒有人真正忘記過去三年。但這是對你的問題的一種定性回答，但我認為很難給你一個定量的答案。

Thanks for that. The second question is, could you comment on, in which quarter do you think you'll exceed 1% of your revenues in 90 nanometers and also 1% of revenues in .11 micron.

感謝那。第二個問題是，您能否評論一下，您認為在哪個季度您將超過 90 納米收入的 1%，以及 0.11 微米收入的 1%。

Um, for 90 nanometer 1%. What's 1% [inaudible] (laugh)

嗯，對於 90 納米 1%。什麼是 1% [聽不清]（笑）

Make it 2%.

設為 2%。

(Laugh). Um, yeah. I think 4th quarter timeframe we'll probably, I mean [maybe] go to a [half] roughly 1% for 90 nanometers. But for .11 I think probably easily the second quarter. And the third quarter will be quite a bit higher.

（笑）。嗯，是的。我認為我們可能會在第 4 季度的時間框架內，我的意思是 [也許] 將達到 [一半] 大約 90 納米的 1%。但是對於 .11，我認為第二季度可能很容易。第三季度會高很多。

Bihavan Shaw. I see. And, just one last question from me, I'm not sure if you can answer this, but assuming that the CAPEX is NT$$2b, and without obviously knowing what your CAPEX will be next year, based on the NT$2b CAPEX this year, and based on all the historical depreciation [inaudible] what would be the 2005 depreciation? In other words, if you assume that, and yeah, without putting in the CAPEX for 2005.

比哈萬肖。我懂了。而且，我的最後一個問題，我不確定你是否能回答這個問題，但假設 CAPEX 是 NT$2b，並且根據 NT$2b 的 CAPEX 顯然不知道你明年的 CAPEX 是多少今年，根據所有歷史折舊 [聽不清] 2005 年的折舊是多少？換句話說，如果你假設，是的，沒有投入 2005 年的資本支出。

The 2005 we don't know any CAPEX. I think that depreciation will increase slightly, because we also have a lot of aged equipment coming off depreciation in 2005.

2005 年我們不知道任何資本支出。我認為折舊會略有增加，因為我們也有很多舊設備在 2005 年就開始折舊了。

So it will increase slightly or decrease slightly.

所以它會略有增加或略有減少。

Increase slightly.

略有增加。

Okay, thank you.

好的謝謝。

Thank you. Our next question comes from Donald Liu [ph] with Goldman Saks Asia LLC [ph], please go ahead with your question.

謝謝。我們的下一個問題來自 Goldman Saks Asia LLC [ph] 的 Donald Liu [ph]，請繼續你的問題。

Thank you. I have a couple of questions. One is, can you give us, in terms of absolute incremental capacity increase by the 4th quarter versus the 4th quarter of last year? And secondly, for the Fab 12b equipment part, was that included in your original NT$2b CAPEX or was that going to be an extra amount.

謝謝。我有一些問題。一是，你能告訴我們第四季度與去年第四季度相比的絕對增量產能增長嗎？其次，對於 Fab 12b 設備部分，它是否包含在您最初的 NT$2b 資本支出中，或者這將是一個額外的金額。

The answer for your first question is 24%. And your second question is asking about the 7b?

第一個問題的答案是 24%。你的第二個問題是關於 7b 的？

No, I'm asking about the Fab 12b. The new 12" Fab you're going to be moving in equipment in October and November timeframe. I'm just trying to figure out whether the CAPEX for that part of the equipment was included in your original NT$2b CAPEX forecast?

不，我問的是 Fab 12b。您將在 10 月和 11 月的時間框架內搬入新的 12" Fab 設備。我只是想弄清楚該部分設備的 CAPEX 是否包含在您最初的 NT$2b CAPEX 預測中？

I'd say, Donald, the NT$2b including for 12, including many 12a, but not 12b. Initial [product] facility is included in this year.

我會說，唐納德，新台幣 2b 包括 12，包括許多 12a，但不包括 12b。今年包括初始[產品]設施。

Okay, great, thank you Lora.

好的，太好了，謝謝 Lora。

Thank you. Our next question comes from Boris Pedersen [ph] with Capital International Incorporated, please go ahead with your question.

謝謝。我們的下一個問題來自 Capital International Incorporated 的 Boris Pedersen [ph]，請繼續你的問題。

We cannot hear Boris.

我們聽不到鮑里斯的聲音。

One moment ma'am. Mr. Pedersen?

等一下，女士。佩德森先生？

Yes, I'm speaking.

是的，我在說話。

Please go ahead with your question.

請繼續你的問題。

Thanks so much. Sorry to go on about the depreciation question. Depreciation in the first quarter was down I guess quite substantially from Q4, and the question would be, is it down again in Q2, or did we see the low end of the depreciation?

非常感謝。抱歉繼續討論折舊問題。我猜第一季度的折舊率比第四季度大幅下降，問題是，第二季度是否再次下降，或者我們是否看到了折舊的低端？

I think it's probably at the same level with our CAPEX coming on line. Even-it will not a big degree.

我認為這可能與我們上線的資本支出處於同一水平。即使-它不會有很大的程度。

Okay, so pretty much the same.

好吧，幾乎一樣。

Yes.

是的。

And the margin guidance on gross profits was for 300-500 basis points up in the 2nd quarter.

第二季度毛利潤的利潤率指導為 300-500 個基點。

A few points jump.

跳躍了幾個點。

A two point jump. Got it.

兩點跳躍。知道了。

A few points.

幾點。

A few points, okay. And lastly, you explained on the tax that the tax has been lowered from Q4 to Q1 from about 19% to 13%, but the end effect because of the credits was that there was a tax benefit, and that's a tax benefit.

幾點，好吧。最後，你解釋說稅收從第四季度到第一季度從大約 19% 降低到 13%，但由於信貸的最終效果是有稅收優惠，這是稅收優惠。

Right.

正確的。

And if we use 13% for the full-year tax rate, should we expect the tax credit for the full year to exceed that tax rate?

如果我們使用 13% 作為全年稅率，我們是否應該期望全年的稅收抵免超過該稅率？

That's possible.

這是可能的。

Okay, thanks so much.

好的，非常感謝。

Thank you. Our next question is a follow-up from Mr. Dan Hiler, please go ahead with your follow-up.

謝謝。我們的下一個問題是 Dan Hiler 先生的跟進，請繼續您的跟進。

Thanks, yes. I was wondering if you guys could talk more about more on the wireless space in the IDM business? You said, you commented that the IDM business had picked up, which was normal, is there seasonality in the IDM business? And why was that normal. Or are we seeing something else here that, in terms of drivers here? How should we think about that in the 2nd half. Given that capacity is pretty tight, I'm just wondering if you're seeing IDM starting to finally expand in capacity, or are they increasing output?

謝謝，是的。我想知道你們是否可以多談談 IDM 業務中的無線空間？你說，你說IDM業務有回暖，這是正常的，IDM業務有季節性嗎？為什麼那是正常的。或者我們在這裡看到其他東西，就這裡的司機而言？我們應該如何在下半場考慮這一點。鑑於產能非常緊張，我只是想知道您是否看到 IDM 最終開始擴大產能，或者他們是否在增加產量？

Dan, I'm not sure if we understand your question on the wireless relationship with IDM. Are you asking for, if the orders from IDM is increasing?

Dan，我不確定我們是否理解您關於與 IDM 的無線關係的問題。你問的是，IDM 的訂單是否在增加？

Yes, there are two questions there, yes. First an update on wireless, and to what extent can we continue to see that growth since that obviously is IDM driven. The second part of the question is can we expect to see IDM increasing continually in the 2nd half in general terms?

是的，那裡有兩個問題，是的。首先是無線方面的更新，我們可以在多大程度上繼續看到這種增長，因為這顯然是由 IDM 驅動的。問題的第二部分是我們是否可以預期 IDM 在下半年總體上持續增長？

Wireless, we believe will continue to grow during the whole year. We do not think it's all driven by IDM. We have multiple customers [inaudible] point of view. But from IDM output point of view, my feeling is the, in a good year, everyone is looking at increasing CAPEX, or at least contemplating increasing CAPEX. I think a couple of the announcements from the Japanese companies are probably a good example. However, I do not believe they would not have an impact really on 2004.

我們相信無線業務將在全年繼續增長。我們不認為這都是由 IDM 驅動的。我們有多個客戶 [聽不清] 的觀點。但從 IDM 輸出的角度來看，我的感覺是，在好的年份，每個人都在考慮增加 CAPEX，或者至少在考慮增加 CAPEX。我認為日本公司的一些公告可能就是一個很好的例子。但是，我認為它們不會真正對 2004 年產生影響。

Yeah, just wondering because the nature of the outsourcing seems to be much more leading edge than last upturn, and last upturn you had a major pop in outsourcing before the peak, which was opportunistic outsourcing. And what I'm wondering is right now, given that it is leading edge, is there as much as an incentive for IDM to have capacity as in the past? Or since they can get what they need on the leading edge, that there's less incentive for them to build at this point.

是的，只是想知道，因為外包的性質似乎比上一次好轉更具領先優勢，而上一次好轉你在高峰前外包出現了一個主要的流行，這是機會主義外包。我現在想知道的是，鑑於它處於領先地位，IDM 是否像過去一樣有動力擁有容量？或者因為他們可以在前沿獲得他們需要的東西，所以他們在這一點上建立的動力較少。

I'm not-you're talking about-since outsourcing now occurs more with IDM?

我不是——你說的是——因為現在外包更多地發生在 IDM 上？

How does the fact that the nature of the outsourcing is now more leading edge? Does that change the typical pattern of IDM adding a lot of capacity in an upturn? Will they outsource more at the peak this time or less at the peak? Or will it be the same?

事實上，外包的性質現在如何更具領先優勢？這是否會改變 IDM 在經濟好轉時增加大量產能的典型模式？這次他們會在高峰期外包更多還是在高峰期外包更少？還是會一樣？

I think the jury is still out, but my feeling is, they will, the fact as you said, the fact that now they're outsourcing more with the leading edge technologies, we'll, I mean, we'll continue this outsourcing trend more than before. That would be my view.

我認為陪審團還沒有定論，但我的感覺是，他們會的，正如你所說的事實，事實是現在他們更多地使用前沿技術外包，我們將，我的意思是，我們將繼續這種外包趨勢比以前多了。那是我的觀點。

Thank you.

謝謝。

Thank you. Our next question comes from Michael McConnell at Pacific Crest Securities. Please go ahead with your question.

謝謝。我們的下一個問題來自 Pacific Crest Securities 的 Michael McConnell。請繼續你的問題。

Rick, just a cycle kind of question here for you. Looking at the equipment constraints right now, with deliveries, just with you and your competitor, and in the foundry industry overall, and your customers inability to build inventory as quick as they'd like to, although they're tying to right now, do you think that this cycle could be more of a gradual cycle in terms of growth, and relatively looking out, than it would be longer, as well? What's kind of your look, your view in terms of what the dynamics are playing out with right now with your ability to build capacity versus your customer's ability to increase their inventories?

里克，這裡只是一個循環問題。看看現在的設備限制，交貨，只有你和你的競爭對手，以及整個鑄造行業，你的客戶無法盡快建立庫存，儘管他們現在正在追趕，您是否認為這個週期在增長方面更像是一個漸進的周期，並且相對看得更遠，而不是更長？您的外觀如何，您對當前的動態變化有何看法，即您的產能建設能力與客戶增加庫存的能力之間的關係？

We believe, we're still early in the cycle, the Chairman was confident that, I think he said [early summer]. We do believe, the cycle really, I felt, in my view it started a couple of quarter or, you know [close to two] quarters ago, [inaudible] quarters ago, I think the impact coming up is not going to be that bad. Especially 300 million of capacity, you know, [inaudible] ramp up, it's not as, it's not going to be, at least, well I shouldn't say easy, it's not going to be as straight-forward as the [inaudible] capacity. I think you're going to see some difficulty in ramping up of the new 300 million facility, especially by companies with no prior experience. So, that's just one aspect of course, of the, from a supply point of view. But I also believe that the demand picture remains also fairly bright. Quite bright.

我們相信，我們仍處於週期的早期，主席很有信心，我想他說過 [初夏]。我們確實相信，這個週期真的，我覺得，在我看來，它開始於幾個季度，或者，你知道 [接近兩個] 季度前，[聽不清] 幾個季度前，我認為即將到來的影響不會是那個壞的。特別是 3 億的容量，你知道，[聽不清] 增加，它不會，至少不會，我不應該說容易，它不會像 [聽不清] 那樣直截了當容量。我認為你會看到增加新的 3 億設施的一些困難，特別是對於沒有經驗的公司。所以，從供應的角度來看，這當然只是一個方面。但我也相信需求前景仍然相當光明。相當明亮。

So right now there's no concerns with your customers, their inventory levels currently, and/or any type of double ordering? I imagine you're monitoring it. But right now there's no concerns at this point?

所以現在您的客戶、他們當前的庫存水平和/或任何類型的重複訂購都沒有問題嗎？我想你正在監視它。但是現在就沒有顧慮了嗎？

Yeah, I would say right now. You're right, there is no concerns. No, some customers I think are probably putting in orders earlier. For sure, because they're concerned that the capacities here are getting really very tight, and they want to make sure that [inaudible] can be started whenever there is an opportunity.

是的，我現在就說。你是對的，沒有顧慮。不，我認為有些客戶可能會提前下訂單。可以肯定的是，因為他們擔心這裡的能力變得非常緊張，他們希望確保只要有機會就可以啟動[聽不清]。

Okay, thank you very much.

好的，非常感謝。

Thank you. Miss Ho, there are no further questions at this time. Please continue.

謝謝。何小姐，現在沒有其他問題了。請繼續。

So if there is no questions, then thank you very much for this conference. Then we'll end this session. Goodbye everybody.

所以如果沒有問題，那麼非常感謝你們參加這次會議。然後我們將結束本次會議。大家再見。

Thank you. Before we conclude TSMC's quarter one 2004 webcast conference call today, please be advised that the replay of this conference call will only be accessible through TSMC's website at www.tsmc.com. Thank you all.

謝謝。在我們今天結束 TSMC 2004 年第一季度網絡廣播電話會議之前，請注意，只能通過 TSMC 的網站 www.tsmc.com 收聽該電話會議的重播。謝謝你們。