聯華電子 (UMC) 2003 Q4 法說會逐字稿

Good day, everyone, and welcome to the UMC fourth-quarter 2003 earnings results conference call.

大家好，歡迎參加聯華電子 2003 年第四季財報電話會議。

This call is being recorded.

此通話正在錄音。

Please be aware that each of your lines is in a listen-only mode.

請注意，您的每條線路均處於僅監聽模式。

At the conclusion of the presentation, there will be time for a question-and-answer session.

演講結束後，將有時間進行問答環節。

At that time, instructions will be given about the procedure to follow if you would like to ask a question.

屆時，如果您想提出問題，將給予有關應遵循的程序的說明。

For your information, this conference call is now being broadcast live over the Internet.

供您參考，本次電話會議現透過網路進行現場直播。

A replay of the call will be available at www.UMC.com under the Investor Relations Investor Events section through Thursday, February 5, 2004.

電話會議的重播將於 2004 年 2 月 5 日星期四在 www.UMC.com 的投資者關係投資者活動部分提供。

Also, a telephone replay of the call will be available from 11 AM New York time on Wednesday, February 4, 2004 until midnight on Thursday, February 5, 2004.

此外，從紐約時間 2004 年 2 月 4 日星期三上午 11 點到 2004 年 2 月 5 日星期四午夜期間，均可收聽該電話會議的電話重播。

The access the replay, please call 888-203-1112 or 719-457-0820 if you are calling from outside the U.S.

如需觀看重播，請致電 888-203-1112 或 719-457-0820（如果您從美國境外致電）。

The access code will be 305389 anytime during this period.

在此期間的任何時間，訪問代碼均為 305389。

I would now like to turn the conference over to Mr. Chitung Liu of UMC.

現在我想把會議交給聯華電子的 Chitung Liu 先生。

Please go ahead, sir.

請繼續，先生。

Welcome and thank you very much for attending our fourth-quarter earnings conference call.

歡迎並非常感謝您參加我們的第四季財報電話會議。

We are hosting this conference call from Taipei and here to help report our results are Dr. Jackson Hu, CEO and Mr. Steve Hung, CFO.

我們在台北主持這次電話會議，執行長 Jackson Hu 博士和財務長 Steve Hung 先生在這裡幫助報告我們的結果。

Before beginning this presentation, I would like to remind everyone of our Safe Harbor policy -- that is, certain statements made during the course of our discussion today may constitute forward-looking statements, which are based on management's current expectations and beliefs.

在開始本演講之前，我想提醒大家注意我們的安全港政策——也就是說，我們今天討論過程中所做的某些陳述可能構成前瞻性陳述，這些陳述基於管理層當前的期望和信念。

They are subject to a number of risks and uncertainties that could cause actual results to differ materially, including risks that may be beyond the Company's control.

它們面臨許多風險和不確定因素，可能導致實際結果出現重大差異，包括可能超出公司控制範圍的風險。

For these risks, please refer to UMC's filings with the SEC in the U.S and the SFC (ph) in ROC.

對於這些風險，請參閱 UMC 向美國 SEC 和中華民國證監會 (ph) 提交的文件。

I would like to now turn the call to today's speaker, Dr. Jackson Hu, CEO of UMC.

現在我想請今天的演講者，聯華電子執行長 Jackson Hu 博士發言。

Thank you, Chitung.

謝謝你，吉東。

Hello, everyone.

大家好。

Thank you for joining us today.

感謝您今天加入我們。

As always, we appreciate your interest in UMC.

一如既往，我們感謝您對聯華電子的興趣。

I'm going to start with a brief summary of our operating results for the fourth quarter of 2003.

我首先簡要概述 2003 年第四季的經營業績。

I assume that you all have read our press release by now, so I'm going to keep my remarks short.

我想你們現在已經閱讀了我們的新聞稿，所以我的發言將保持簡短。

Following this summary, I will provide the outlook and the guidance for the first quarter of 2004.

在此總結之後，我將提供 2004 年第一季的展望和指導。

After that, we will leave the rest of the time for your questions.

接下來，我們將剩下的時間留給大家提問。

Overall speaking, we had a very good quarter for the fourth quarter of 2003.

整體而言，2003 年第四季我們的業績非常好。

Quarter-over-quarter revenue increased by 10.1 percent to NT$23.7 billion, or US$698 million.

營收季增 10.1%，達到 237 億元新台幣，即 6.98 億美元。

We are using an exchange rate of 33.97 here for the calculations.

我們在這裡使用 33.97 的匯率進行計算。

Quarter-over-quarter operating income increased by 60.8 percent to NT$4.16 billion, or US$123 million.

營業收入較上一季成長 60.8%，達到新台幣 41.6 億元（約 1.23 億美元）。

Quarter-over-quarter net income increased by -- (technical difficulty) -- to 6.72 billion, or NT$196.72 billion, or US$198 million.

淨收入季增（技術難度）至67.2億元，即新台幣1,967.2億元，即1.98億美元。

Quarter-over-quarter shipment of 8 inch equipment wafers increased by 17.9 percent from 546,000 wafers to 644,000 wafers.

8吋設備晶圓出貨量較上季成長17.9%，從54.6萬片增至64.4萬片。

The blended average selling price was flat compared to the previous quarter.

混合平均售價與上一季持平。

As you can see, we had a very strong quarter and the demand continues to increase.

正如您所看到的，我們的季度表現非常強勁，需求持續成長。

In about October, we see a strong demand across the board from all customers and all applications.

大約在十月，我們看到所有客戶和所有應用程式的全面強勁需求。

Particularly, the communications sector, such as mobile phones, is very strong.

尤其是手機等通訊領域，表現非常強勁。

The sales contribution from .13 micron technology jumped nearly 50 percent -- 5-0 -- sequentially and representing 12 percent of our total revenue this quarter.

0.13 微米技術的銷售額貢獻比上一季成長了近 50%（5-0），佔本季總營收的 12%。

During the fourth quarter, we continued to invest in world-class Intellectual Property and state-of-the-art 300 nm (ph) manufacturing facility.

第四季度，我們繼續投資於世界一流的智慧財產權和最先進的 300 nm (ph) 製造設施。

IP is mostly (indiscernible) for our fabless customers.

IP 主要（難以辨別）是針對我們的無晶圓廠客戶。

This year, we have engaged with industry top IP vendors (indiscernible) fundamental IPs such as the Standard (indiscernible) Library I/O and memory compiler; we have also invested a significant (indiscernible) in analog IP and highly complexity functional IP.

今年，我們與業界頂級IP供應商（無法辨認）合作，提供基礎IP，例如標準（無法辨認）庫I/O和記憶體編譯器；我們還在模擬 IP 和高度複雜的功能 IP 上投入了大量（難以辨別）。

Our efforts in IP will help address customers' availability, time-to-market and cost objectives for today's SoC designs.

我們在 IP 方面的努力將有助於滿足客戶當今 SoC 設計的可用性、上市時間和成本目標。

Complete, accurate and user-friendly IP and (indiscernible) support will offer additional value to our advanced-process technology.

完整、準確和用戶友好的 IP 和（難以辨別的）支援將為我們的先進工藝技術提供額外的價值。

Our move to larger wafers size is going well, and we are planning to triple our current 300 nm manufacturing capacity to 30,012 inch wafers per month by the end of 2004.

我們向更大晶圓尺寸的轉變進展順利，我們計劃在 2004 年底將我們目前的 300 nm 製造能力增加兩倍，達到每月 30,012 英寸晶圓。

We are increasing our CapEx budget to approximately US$2.12 billion on a group basis with most of this going towards expanding our 300 nm manufacturing facility.

我們正在將集團資本支出預算增加至約 21.2 億美元，其中大部分用於擴大我們的 300 奈米製造設施。

Now, let me turn to the guidance for the first quarter of 2004.

現在，讓我談談 2004 年第一季的指導。

We are expecting total wafer shipments to be similar to the last quarter of 2003.

我們預計晶圓總出貨量將與 2003 年最後一個季度相似。

This is factored in the schedule annual maintenance and the fewer working days in February.

這是考慮到年度維護計劃和二月份較少的工作日的因素。

The average selling price for ASP of the wafers is expected to increase by low single digit percentage points in U.S. dollar terms.

以美元計算，晶圓平均售價預計將上漲低個位數百分點。

Capacity utilization is expected to be about 100 percent.

產能利用率預計約 100%。

Again, please note that this includes the factor of annual fab maintenance.

再次請注意，這包括每年晶圓廠維護的因素。

Gross margin in the first quarter is expected to be higher than the fourth quarter of 2003 due to the expected increase in ASP.

由於平均售價的預期成長，預計第一季的毛利率將高於 2003 年第四季。

The percentage of revenue from .18 micron and below technology is expected to be in the 50 percent range.

0.18 微米及以下技術的收入百分比預計將在 50% 範圍內。

Revenue from .13 micron technology is expected to exceed 10 percent of total revenue.

0.13 微米技術的收入預計將超過總收入的 10%。

Finally, we are not expecting any material change in the proportion of sales to major applications.

最後，我們預期主要應用的銷售比例不會有任何重大變化。

So, I think this concludes my presentation.

我想我的演講到此結束。

Thank you.

謝謝。

Operator, we will now take questions.

接線員，我們現在開始提問。

Thank you.

謝謝。

The question-and-answer session will be conducted electronically. (OPERATOR INSTRUCTIONS).

問答環節將以電子方式進行。 （操作員說明）。

Matt Gable (ph) of Calypso Capital.

Calypso Capital 的馬特蓋博（博士）。

Hi, nice quarter.

嗨，美好的季度。

I just had three quick questions.

我只有三個簡單的問題。

What do you think a range would be for Q1, 2004 CapEx?

您認為 2004 年第一季資本支出的範圍是多少？

Also, do you expect revenue from .13 as a percent of revenue to decrease sequentially?

另外，您預期 0.13 的收入佔收入的百分比會持續下降嗎？

Finally, how are wafer starts tracking right now?

最後，晶圓現在開始追蹤情況如何？

Are they still on an uptrend?

他們仍然處於上升趨勢嗎？

Are they flattish?

它們是扁平的嗎？

Are they slowing?

他們在放慢速度嗎？

Thank you very much.

非常感謝。

Okay, your first question was regarding the Q1 CapEx spending?

好的，您的第一季度是關於第一季資本支出支出？

Do we have the breakout?

我們有突破嗎？

Basically, we have issued the bulk of the 2.13 billion in terms of purchasing orders.

21.3億的採購訂單基本上我們已經下達了大部分。

However, in terms of cash payments, which is the basis for 2.12, it really depends on different vendors.

然而，就現金支付而言，這是2.12的基礎，這確實取決於不同的供應商。

We do believe the majority of the newly ordered equipment should start to arrive by mid of '04.

我們確實相信大多數新訂購的設備應該會在 04 年中期開始到達。

That's where most of the cash will start to flow out of UMC to the various vendors.

這就是大部分現金將開始從聯華電子流向各個供應商的地方。

Okay, so it sounds like it is loaded starting from the second quarter onward?

好吧，聽起來好像是從第二季開始加載的？

Yes, I think that's pretty much the case.

是的，我認為情況差不多如此。

Regarding 0.13 micron revenue contribution, in terms of percentage, I think it will continue to grow maybe, you know, at a slow growth rate.

關於0.13微米的收入貢獻，就百分比而言，我認為它會繼續成長，也許，你知道，以緩慢的速度成長。

Wafer starts will continue to grow as we expand our capacity.

隨著我們產能的擴大，晶圓開工量將持續成長。

Okay, thank you.

好的謝謝。

Pernaub Sarma (ph) of Dyla (ph) Institutional.

Dyla (ph) 機構的 Pernaub Sarma (ph)。

Good afternoon, gentlemen.

下午好，先生們。

Congratulations on a good set of results.

祝賀取得了一系列良好的成果。

I have questions regarding your wafer average selling prices, which probably you have guided -- the last quarter was roughly a stable ASP, but if I do some calculations, it looks like their ASP has come down, even in the U.S. dollar terms.

我對你們的晶圓平均售價有疑問，這可能是你們指導的——上個季度的平均售價大致穩定，但如果我做一些計算，看起來他們的平均售價已經下降，即使以美元計算也是如此。

Do you have any wafer which is like a non-revenue wafer out of your shipment?

您的出貨中是否有類似非收入晶圓的晶圓？

No, the ASP in the fourth quarter was (indiscernible), as we mentioned in both our news release as well as the presentation.

不，正如我們在新聞稿和簡報中提到的那樣，第四季度的平均售價是（難以辨認）。

But (indiscernible) explain the discrepancy between the 10 percent revenue growth versus 17 percent wafer shipment growth.

但（聽不清楚）解釋了 10% 的營收成長與 17% 的晶圓出貨量成長之間的差異。

The main reason was the combination of stronger NT dollars and reduction in the other sales segments, as well as some year-end adjustments in terms of sales returns.

主要原因是新台幣走強和其他銷售部門的減少，以及銷售回報的年末調整。

So, ASP was flat in Q4.

因此，第四季的平均售價持平。

The reason for sales growth to be less than that of wafer shipment growth was the reason I just highlighted.

銷售成長低於晶圓出貨量成長的原因就是我剛才強調的原因。

Okay, I got it.

好的，我明白了。

Could you give us some color on the nonoperating income for the first quarter '04, how it looks like and maybe the R&D expenses in 2004?

您能為我們介紹一下 04 年第一季的營業外收入嗎？2004 年的狀況以及研發費用如何？

The nonoperating income in Q1, I think it's almost the same.

第一季的營業外收入，我認為幾乎是一樣的。

It's almost (indiscernible).

差不多了（聽不清楚）。

It's almost zero.

幾乎為零。

Okay.

好的。

R&D expenses for 2004?

2004年研發費用是多少？

It's expected to be around 9 percent.

預計為 9% 左右。

Nine percent of revenue.

收入的百分之九。

The last question, if may I ask you?

最後一個問題，我可以問你嗎？

Your UMC (indiscernible) will start probably productions from the second quarter onwards?

你們的聯華電子（音頻不清）大概會從第二季開始生產吧？

Wafer shipment?

晶圓運輸？

Yes, that's probably the case, although we will have a small amount delivered in Q1.

是的，情況可能就是這樣，儘管我們將在第一季交付少量產品。

In that (indiscernible) of that particular fab will start coming to your balance sheet from the second quarter it says, or maybe from the third quarter?

那個（難以辨認的）特定晶圓廠將從第二季開始進入您的資產負債表，或者可能從第三季開始？

It will start in Q1.

它將在第一季開始。

Despite that lag, you expect the Q1 gross margin will improve over Q4, right?

儘管存在滯後，您預計第一季的毛利率將比第四季度有所改善，對吧？

Yes, I think we just made that statement.

是的，我想我們剛剛發表了這樣的聲明。

Yes.

是的。

Just to explain to you that, in terms of accounting treatment, we will only consolidate all the subsidiaries on an annual basis, so UMCi's profit and loss quarterly report will be booked under equity measures (ph) investment income or loss, so that will have no impact on our UMC Taiwan gross margin and operating margins.

只要向您解釋一下，在會計處理方面，我們只會按年度合併所有子公司，因此UMCi的損益季度報告將記入權益計量（ph）投資收益或損失，這樣就會有對我們台灣聯華電子的毛利率和營業利益率沒有影響。

Okay, that's clear.

好的，很清楚了。

Thank you very much.

非常感謝。

Moving onto Michael McConnell of Pacific Crest Securities.

接下來是 Pacific Crest 證券公司的 Michael McConnell。

Thank you.

謝謝。

Just a point of clarification -- did you just say net nonoperating income will be flat in Q1 with Q4 levels?

需要澄清一點—您剛才是否說第一季的淨非營業收入將與第四季的水平持平？

No, it's a zero.

不，這是一個零。

Zero?

零？

Yes.

是的。

Looking at your gross margins for Q1, it looks like those are going to be going up.

看看第一季的毛利率，看起來這些毛利率將會上升。

Do you have enough confidence right now with what you see in the orderbook to believe that that gross margin line could continue to go up for the remainder of 2004?

現在您對訂單簿中看到的情況是否有足夠的信心相信毛利率線在 2004 年剩餘時間內會繼續上升？

Yes.

是的。

Of course, we don't have such a long visibility yet, but Q1 looks good, quite reasonable.

當然，我們還沒有這麼長的能見度，但 Q1 看起來不錯，相當合理。

Looking at the end markets, it looks like, again, it's going to be relatively unchanged in Q1 with communications again being the leadership segments.

看看終端市場，第一季的情況似乎將再次保持相對不變，通訊再次成為領先領域。

Could you talk about, in communications, where you're seeing strength by product?

您能談談在通訊領域您所看到的產品優勢嗎？

Also, how NPCs, by product, where the strength is coming from?

還有，NPC們的實力又是從哪裡來的呢？

Thank you.

謝謝。

We see the growth in communications mainly from the wireless side, or cell phone-related.

我們看到通訊的成長主要來自無線方面，或與手機相關。

As you probably have heard, there is a major move from (indiscernible) play and high-end cell phones are adding cameras.

正如您可能已經聽說的那樣，（難以辨認的）遊戲和高階手機正在增加相機。

So all the related IC components will have a strong demand this year.

所以今年所有相關的IC元件都會有強勁的需求。

Regarding PC (ph), we also see strong demand.

關於PC（ph），我們也看到強勁的需求。

Actually, starting from October, the demand increase was across the board.

事實上，從10月開始，需求全面成長。

Is the Graphic segment still showing strength?

圖形領域是否仍表現強勁？

Yes.

是的。

My last question would be on the currency -- obviously quite an effect in Q4.

我的最後一個問題是關於貨幣——顯然對第四季度產生了相當大的影響。

Are you expecting any similar type of effect in Q1, or should that relatively stabilize?

您是否預計第一季會出現類似的影響，或者應該相對穩定？

I know you're not an economist, but I guess what is kind of your best guess with currencies for Q1?

我知道您不是經濟學家，但我想您對第一季貨幣的最佳猜測是什麼？

The best we can do is to run sensitivity analysis internally.

我們能做的最好的事情就是在內部進行敏感度分析。

Let's share the result with you.

讓我們與您分享結果。

So, every $1 movement in NT dollars is going to have about 5 percent also impact on our gross margin.

因此，新台幣每變動 1 美元，也會對我們的毛利率產生約 5% 的影響。

It's not 5 percentage points; it's 5 percent impact on our gross margin.

這不是5個百分點；而是5個百分點。這對我們的毛利率有 5% 的影響。

Thank you very much.

非常感謝。

Banc of America Securities, Mark FitzGerald.

美國銀行證券公司，馬克‧菲茨傑拉德。

Thank you.

謝謝。

Can you give us some sense on the 0.13 micron?

能為我們介紹一下 0.13 微米嗎？

The 10 percent revenues I assume it was not wafers?

我認為這 10% 的收入不是晶圓？

How many customers are loading that this point?

此時有多少客戶正在載入？

Second question -- can you give us where you are in terms of the timeline for 90 nm?

第二個問題—您能告訴我們 90 奈米的時間表嗎？

The .13 micron customers will come from the cell phone baseband, FPGA and also, over the year, from high-end consumer products.

0.13微米客戶將來自手機基頻、FPGA，並且在一年內也將來自高階消費產品。

We started to see (indiscernible) and even DVD.

我們開始看（聽不清楚）甚至DVD。

So, regarding 90 nm, we will have a Xilinx to start to go introduction mode in Q1.

因此，對於 90 nm，我們將在第一季開始採用 Xilinx 的引入模式。

Just one follow-on question -- can you give us a sense where you are in adopting a low-K (ph) technology?

只是一個後續問題 - 您能否讓我們了解一下您在採用低 K (ph) 技術方面的進展？

Our 90 nm will support both low-k (ph) and FSG (ph).

我們的 90 nm 將支援低 k (ph) 和 FSG (ph)。

Is the low-k (ph) a Black Diamond solution?

低 k (ph) 是 Black Diamond 解決方案嗎？

Unfortunately, we don't have that person here to answer the question.

不幸的是，我們這裡沒有那個人來回答這個問題。

Do you know the answer?

你知道答案嗎？

Modified (indiscernible).

已修改（聽不清楚）。

Donald Lu of Goldman Sachs.

高盛的唐納德·盧。

I have a couple of questions.

我有一些問題。

First is, I looked at your third-quarter statement.

首先，我看了你們的第三季報表。

In the income statement, the exchange rate was 33.76.

損益表中的匯率為33.76。

I believe, in this quarter, the fourth quarter, the exchange rate was actually 33.9.

我相信，在這個季度，第四季度，匯率實際上是33.9。

So maybe you can give me working through how do we look at this currency impact on the 4Q results?

那麼也許您可以告訴我我們如何看待貨幣對第四季業績的影響？

Secondly, can you give us a color, like what percentage of capacity would be for .13 and below in the end of '03 and also in the end of '04?

其次，您能否給我們一個顏色，例如 03 年底和 04 年底 0.13 及以下的產能百分比是多少？

Thanks.

謝謝。

In terms of currency, the revenue conversion from the U.S. dollar base to NT dollar base is for the whole quarter, so it's on a weighted average basis.

就貨幣而言，從美元基數到新台幣基數的收入換算是針對整個季度的，因此是加權平均的。

As for the (indiscernible), the number we use (indiscernible) is for quarter end, so that doesn't really have to be exactly the same figure.

至於（音訊不清晰），我們使用的（音訊不清晰）數字是季度末的數字，因此實際上不必是完全相同的數字。

That's also why we attribute the discrepancy between wafer shipment and the revenue growth to the stronger NT dollars, because that's the case for throughout the whole quarter.

這也是為什麼我們將晶圓出貨量與營收成長之間的差異歸因於新台幣走強，因為整個季度都是如此。

Regarding 0.13 micron capacity, in 2003, the percentage is about 10 percent.

2003年0.13微米產能的比例約為10%。

We expect it will grow to 15 percent for 2004.

我們預計 2004 年這一數字將增長到 15%。

If we consider the 90 nm, the total percentage will be 16 percent -- oh, 21 percent, sorry.

如果我們考慮 90 nm，總百分比將是 16%——哦，抱歉，是 21%。

Can I just reconfirm that?

我可以再確認一下嗎？

So, in 2003, in the whole year, 0.13 was 10 percent of total capacity?

那麼，2003年全年，0.13是總容量的10%嗎？

In 2004, 21 percent would be for .13 and the 90 nm?

2004 年，21% 將用於 0.13 和 90 nm？

Yes.

是的。

For 2003, I am reading a little bit off.

2003年，我讀的書有點少。

For 2003, total (indiscernible) was 9 percent and for 2004, it will be 21 percent.

2003 年，總數（音訊不清晰）為 9%，2004 年為 21%。

Both figure for capacity at the year-end.

兩者均指的是年底的產能。

Is that the yearend capacity, the fourth-quarter capacity, or is that the yearly capacity -- (Multiple Speakers) -- 21 percent in '04?

這是年末產能、第四季產能，還是年度產能——（多位發言者）——04 年的 21%？

Year-end.

年底。

So that's in the fourth quarter?

所以說是第四季？

Yes.

是的。

Shekhar Pramanick of Prudential.

保誠集團的謝卡爾‧普拉馬尼克 (Shekhar Pramanick)。

Good evening.

晚安.

Two sets of questions, one is on the pricing side.

兩組問題，一組是定價上的問題。

What are you seeing on the pricing side on this process technology (indiscernible)?

您對這種工藝技術的定價有何看法（聽不清楚）？

Second, you have a very large CapEx.

其次，你有非常大的資本支出。

Do you need to access capital markets to fund it?

您需要進入資本市場為其提供資金嗎？

Thanks.

謝謝。

Regarding the pricing, as you know, it's all demand/supply, so when we are in a supply shortage situation, we will be able to gradually raise the wafer price.

關於定價，大家知道，這都是需求/供應的問題，所以當我們處於供應短缺的情況時，我們將能夠逐步提高晶圓價格。

As we stated earlier, the effect will start to be seen in this quarter.

正如我們之前所說，效果將在本季開始顯現。

Regarding CapEx expansion, we don't plan to raise any funding for our own (indiscernible).

關於資本支出擴張，我們不打算為自己籌集任何資金（音訊不清楚）。

We have plenty of cash.

我們有充足的現金。

If I may ask, on the pricing side, the do you feel that pricing on individual nodes (ph) is going up by 4, 5 percent across the board, or are you seeing pricing improvement only at the leading edge?

如果我問，在定價方面，您是否認為單一節點 (ph) 的定價全面上漲 4%、5%，或者您是否只看到前沿的定價改善？

That is a hard question to answer because, for each technology, it is different, but we are able to, across the board, raise the price.

這是一個很難回答的問題，因為每種技術都是不同的，但我們能夠全面提高價格。

Thank you.

謝謝。

Ashis Kumar of CS First Boston.

CS First 波士頓的 Ashis Kumar。

Thank you.

謝謝。

Congratulations on a very strong set of numbers.

恭喜您獲得了一組非常強勁的數字。

My first question is, what is your outlook for the semiconductor industry in 04?

我的第一個問題是，您對04年半導體產業的展望如何？

What type of growth do you see the industry doing in '04?

您認為該產業在 04 年會出現怎樣的成長？

Okay, according to the information that we collected and the semiconductor industry had 18 percent growth in 2003, and now for 2004, depending on which analyst you talk with and which crystal ball you look into -- so someone are talking (sic) about 25 percent for the whole semiconductor industry.

好的，根據我們收集的信息，半導體行業在2003 年增長了18%，而現在到2004 年，這取決於您與哪位分析師交談以及您研究的是哪個水晶球- 所以有人正在談論（原文如此）大約25佔整個半導體產業的百分比。

For the foundry, people expected higher growth, maybe around 30 percent.

對於代工廠來說，人們預計會有更高的成長，可能在 30% 左右。

Sure.

當然。

Will UMC (inaudible) definitely meet or beat the foundry number of 30 percent that -- (Multiple Speakers)?

UMC（聽不清楚）一定會達到或超過 30% 的代工廠數量——（多個揚聲器）嗎？

We certainly hope so!

我們當然希望如此！

Is their rapid capacity expansion planned (indiscernible) for 12 inch?

他們是否有針對12吋的快速產能擴張計畫（聽不清楚）？

Will you triple capacity?

你會把容量增加三倍嗎？

Will you build-up capacity that you and your (indiscernible) in Taiwan don't have or doesn't plan to have.

你會建立你和你在台灣的（音頻不清晰）沒有或不打算擁有的能力嗎？

Could you give us some color on how many customers are sort of sampling with us on 12 inch, how many product lines, sort of how you plan to fill up a lot of 12 inch capacity that you are bringing online?

您能否告訴我們有多少客戶正在向我們提供 12 英寸樣品，有多少條產品線，以及您計劃如何填補您在線提供的大量 12 英寸產能？

Our capacity expansion definitely has been based on inventory we received from customers and their forecasts.

我們的產能擴張肯定是基於我們從客戶收到的庫存及其預測。

I think we mentioned it before, the communications sector is especially strong and the FPGAs and even the consumer products.

我想我們之前提到過，通訊領域尤其強大，FPGA 甚至消費產品也是如此。

So the demand (indiscernible) is across the board and every customer is extremely optimistic.

所以需求（聽不清楚）是全面性的，每個客戶都非常樂觀。

Furthermore, we have seen the efficiency of our 12 inch over 80 inch; that's another reason that we decided to expand it aggressively.

此外，我們還看到了我們12英寸比80英寸的效率；這是我們決定積極擴張的另一個原因。

Ashis Kumar;

阿希斯·庫馬爾；

So, approximately how many customers are currently working with us on 12 inch?

那麼，目前大約有多少客戶與我們合作使用 12 吋？

On the 12 inch, we have quite a few customers because we're getting information (indiscernible).

在 12 吋上，我們有相當多的客戶，因為我們正在獲取資訊（音訊不清楚）。

Our 12 inch, at this point, also offer alumina, so we have .18, .15, .13 micron customers all producing products there.

目前，我們的 12 吋也提供氧化鋁，因此我們有 0.18、0.15、0.13 微米的客戶都在那裡生產產品。

I'm sorry.

對不起。

I should have reworded.

我應該重新措詞。

How many customers are on 12 in and over?

有多少顧客使用 12 吋及以上？

I sort of presume that your capacity expansion will only be copper.

我認為你們的產能擴張只會是銅。

Probably around 15 plus.

大概15歲以上吧。

(indiscernible) we think would sort of help us here.

（音訊不清晰）我們認為這會對我們有所幫助。

You know, with the UMCi, any color on how do we model that as it's a 12 inch that (indiscernible) to them.

你知道，對於 UMCi，我們如何建模任何顏色，因為它對他們來說是 12 英寸（難以辨別）。

How do we model that at an non-operating level?

我們如何在非營運層面對其進行建模？

Any help on that?

有什麼幫助嗎？

It's going to be a minimum capacity of 3,000 (indiscernible) further in Q1, so that's really small.

第一季的最低容量將達到 3,000（難以辨認），所以這個容量確實很小。

Jackson mentioned earlier during the conference call, we should start to see revenue contributions, mainly from second quarter.

傑克森早些時候在電話會議中提到，我們應該開始看到收入貢獻，主要來自第二季。

From UMC point of view, we will consolidate the UMC revenue into ours and also will provide the detailed breakdown between UMC and UMCi revenue on a continuing basis.

從UMC的角度來看，我們將把UMC的收入合併到我們的收入中，並將持續提供UMC和UMCi收入之間的詳細分類。

From second quarter, do you think that it will be because it's a start-up, so (indiscernible) just the law of economics, it will have meaningful losses from being at least in the first few quarters when meaningful capacity comes up?

從第二季度開始，您是否認為因為它是一家新創企業，所以（難以辨別）只是經濟規律，至少在前幾個季度當有意義的產能出現時，它會產生有意義的損失？

For the first quarter, we actually can give you a rough guidance regarding UMCi loss, which for the whole of UMCi is going to be about 200 million for the first quarter investment loss of UMCi.

對於第一季度，我們實際上可以給你一個關於UMCi損失的粗略指導，對於整個UMCi來說，第一季UMCi的投資損失約為2億美元。

How would that -- (multiple speakers).

那會怎樣──（多位發言者）。

I'm sorry.

對不起。

Let me correct the number.

讓我更正一下數字。

It should be NT$800 million for the first quarter.

第一季應該是新台幣8億元。

Should we hold (indiscernible) -- I mean, just approximating (indiscernible), how does that look (indiscernible)?

我們是否應該保持（音頻不清晰）——我的意思是，只是近似（音頻不清晰），那看起來怎麼樣（音頻不清晰）？

For the fourth quarter?

第四季？

No, for the second quarter.

不，是第二季。

I think 800 you said is for the first quarter, right?

我想你說的800是第一季的吧？

That is correct.

那是對的。

It should be similar but it really depends on the orders they can receive, so it would be too far off.

應該是類似的，但這實際上取決於他們能收到的訂單，所以相差太遠了。

Let's answer your question during the next quarter's conference call.

讓我們在下一季的電話會議上回答您的問題。

(indiscernible) 75 percent of this would be attributed (indiscernible) accounting practice?

（音訊不清晰）其中 75% 歸因於（音訊不清晰）會計實務？

The 800 million is already adjusted according to the 75 percent holding.

這8億已經依照75%的持股比例調整了。

Thank you so much.

太感謝了。

Dan Heyler of Merrill Lynch.

美林證券的丹·海勒。

Just a couple of quick follow-ups -- could you kind of talk about where you think the breakeven point for UMCi is?

只是幾個快速跟進——您能談談您認為 UMCi 的盈虧平衡點在哪裡嗎？

At what point do you think that starts to be accretive to earnings?

您認為什麼時候開始增加收入？

I think when the capacity -- when the volume reaches to about the 10,000 wafers, then we will reach breakeven.

我認為當產能達到大約 10,000 片晶圓時，我們就會達到損益平衡。

That's in what, the third quarter or fourth quarter of this year?

那是今年的第三季還是第四季？

Fourth quarter.

第四季。

Then customers at UMCi, in terms of compatibility, are those -- they are pretty much at 100 percent compatibility with your Taiwan-based operations, or will you have most of companies fully using UMCi without using moving products back and forth?

那麼 UMCi 的客戶，就相容性而言，他們與您在台灣的業務幾乎 100% 相容，或者您​​會讓大多數公司完全使用 UMCi，而不需要來回行動產品嗎？

You used the right word; the equipment will be pretty much compatible to our 12-A (ph) fab in Tainon (ph).

你用了正確的字；該設備將與我們位於 Tainon (ph) 的 12-A (ph) 工廠非常相容。

Depending on the volume of customers' products -- you know, when they loaded products at both fabs or at one fab -- it depends.

取決於客戶產品的數量——你知道，當他們在兩個工廠或一個工廠裝載產品時——這取決於。

Great.

偉大的。

Then of your percentage of your 12 inch right now shipments (sic) I believe, what percentage of that right now is non-copper, aluminum?

那麼，我認為，目前 12 吋出貨量（原文如此）中非銅、鋁的百分比是多少？

Right now, from the 12 inch fabs, the aluminum and copper is about half and half.

目前，12吋晶圓廠的鋁和銅大約各佔一半。

Is demand for 12 inch aluminum fairly strong at this point?

目前對 12 吋鋁材的需求是否相當強勁？

At this point, it is still strong.

到了這一步，依然強勢。

What kind of economics do you get, say, using 12 inch on, say, aluminum .15 versus 8 inch?

例如，使用 12 吋的鋁 0.15 與 8 吋相比，您會得到什麼樣的經濟效益？

It's hard to quantify but I think, in a nutshell, it's better than 80 inch.

很難量化，但我認為，簡而言之，它比 80 英寸更好。

Finally, maybe for Chitung or Stan, looking at kind of the non-op line, it looks like the -- as you said, non-operating being 0, you intend to offset some of the expenses in UMCi using probably some share sales.

最後，也許對於 Chitung 或 Stan 來說，看看非營運線的類型，就像您所說的，非營運性為 0，您打算使用可能的一些股票銷售來抵消 UMCi 的一些費用。

Is that fair to assume?

這樣假設公平嗎？

I think that we mostly found out that we (indiscernible) equity accounting (indiscernible) income.

我認為我們主要發現我們（難以辨別）權益會計（難以辨別）收入。

Most of the (indiscernible) equity accounting (inaudible) investment income.

大部分（聽不清楚）權益會計（聽不清楚）投資收入。

Okay.

好的。

Could you give us some guidance on kind of '04?

您能給我們一些關於 '04 的指導嗎？

I know it's tough, but you had a fairly large contribution from your investment line in the fourth quarter.

我知道這很困難，但第四季度您的投資線做出了相當大的貢獻。

Any rough guidelines you can give us for '04, or best case -- some of the -- for the quarters?

您能為我們提供 04 年的任何粗略指導方針，或本季度的最佳情況（其中一些）嗎？

I think right now I cannot give you the very clear guidance -- (multiple speakers) -- for the full year.

我想現在我無法給你們全年非常明確的指導（多位發言者）。

But I guess, do you kind of have a stated policy that you want to divest from those subsidiaries?

但我想，您是否有明確的政策希望從這些子公司中剝離？

Does that kind of continue?

這樣的情況還會持續下去嗎？

Can we assume what you've done in '03 may continue in '04?

我們可以假設您在 03 年所做的事情可能會在 04 年繼續嗎？

We will (indiscernible) continue to divest (inaudible) other non-core holdings.

我們將（聽不清楚）繼續剝離（聽不清楚）其他非核心持股。

Yes, that policy continues.

是的，該政策仍在繼續。

(indiscernible) on the market condition.

（音訊不清晰）市場狀況。

Ben Lynch of Deutsche Bank.

德意志銀行的本·林奇。

I'm sorry if you said this -- (indiscernible) told us last week how much they expect their capacity to grow in '04.

如果你這麼說的話我很抱歉——（聽不清楚）上週告訴我們他們預計 04 年的產能將會成長多少。

Have you made any comments on that, please?

請問您對此有何評論？

Can you -- (multiple speakers)?

你能－（多個發言者）嗎？

(Multiple Speakers) -- said she expects their 8 inch equivalent wafer capacity to grow 15 percent in calendar 04.

（多位發言者）--她預計 04 年 8 吋等效晶圓產能將成長 15%。

I was just wondering whether you guys were (inaudible) -- (multiple speakers)?

我只是想知道你們是否（聽不清楚）──（多個發言者）？

We are expecting an annual increase of about 16 percent 8 inch equivalent.

我們預計 8 吋同等產品的年增率約為 16%。

Is there any sort of quarters (sic) when we're going to see more of this come?

當我們看到更多這樣的事情發生時，是否會有任何類型的季度（原文如此）？

When do you think the strongest sequential quarters will be?

您認為最強勁的連續季度是什麼時候？

Q3, Q4?

Q3、Q4？

Yes, I think that's correct, in the later half of the year.

是的，我認為這是正確的，在下半年。

Also, you have read the press release; it's on Page Seven.

另外，您已經閱讀了新聞稿；它在第七頁。

Page Seven has a lot of the capacity details that can answer your questions.

第七頁有很多容量詳細資訊可以回答您的問題。

Have you broken out the 2.1 billion CapEx?

21億資本支出突破了嗎？

Yes.

是的。

Again, it's in there.

再說一次，它就在那裡。

Okay, sorry about that.

好吧，對此感到抱歉。

One last question then.

那麼最後一個問題。

What impact, if any, have you Chinese foundries been having on the competitive environment recently?

你們中國的代工廠最近對競爭環境產生了什麼影響（如果有的話）？

We haven't felt much.

我們沒有太多感覺。

Yes, we haven't felt much of an impact from them.

是的，我們並沒有感受到他們太大的影響。

For one thing, no one there claims they have UMC-compatible technology.

一方面，沒有人聲稱他們擁有 UMC 相容技術。

Right.

正確的。

Okay, thank you.

好的謝謝。

(OPERATOR INSTRUCTIONS).

（操作員說明）。

Bhavin Shah of JP Morgan.

摩根大通的巴文·沙阿。

Yes, just a couple of questions.

是的，只有幾個問題。

You mentioned R&D expense 9 percent of revenue.

您提到研發費用佔收入的 9%。

Did I hear that correctly?

我沒聽錯嗎？

Based on what (inaudible) revenues?0

基於什麼（聽不清楚）收入？0

Based on this year's revenue.

根據今年的收入。

Based on 2004 revenue?

基於2004年的收入？

Yes.

是的。

So, what is that revenue (inaudible)?

那麼，收入是多少（聽不清楚）？

Because depending on what assumptions you make revenues, obviously that suggests a pretty strong increase in R&D so I was hoping -- maybe you could -- if you don't feel comfortable answering that revenue question, maybe you can tell us what the R&D expense is for the year?

因為根據你的收入假設，顯然這表明研發支出相當強勁，所以我希望——也許你可以——如果你不願意回答這個收入問題，也許你可以告訴我們研發費用是多少是今年的嗎？

Again, we don't review this information and what we can say is that we are -- roughly, we're going to spend about NT$550 million 600 million per month.

再說一次，我們不會審查這些信息，我們可以說的是，我們大約每月將花費約 5.5 億新台幣 6 億。

Okay, that helps.

好的，這有幫助。

Just a clarification on utilization -- you mentioned that 100 accounting for maintenance -- so you've given the specific capacity number for the past quarter.

只是對利用率的澄清 - 您提到 100 佔維護 - 因此您給出了上個季度的具體容量數字。

So, the 100 percent utilization is 100 percent off of that capacity number?

那麼，100% 利用率是指容量數字的 100% 嗎？

Which page are you referring to?

您指的是哪一頁？

Let me see.

讓我看看。

You can think of it this way -- we have maintenance and in the meantime, we are increasing our production efficiency and capacity.

您可以這樣想—我們進行維護，同時我們正在提高生產效率和產能。

So if we don't have maintenance, then it's going to increase significantly.

因此，如果我們不進行維護，那麼它將會顯著增加。

Right now, it's flat in terms of wafer shipments.

目前，晶圓出貨量持平。

Okay, fair enough.

好吧，很公平。

Also, I'll go back to the conversion question.

另外，我將回到轉換問題。

You explained that, as you get the revenues, you book them at whatever currency rate is at that point in time -- but the figures in the report having shown the quarter-end run-rate.

您解釋說，當您獲得收入時，您可以按當時的任何貨幣匯率進行預訂 - 但報告中的數字顯示了季度末的運行率。

So does that mean that the actual revenues are different from the revenues in the report?

那麼，這是否意味著實際收入與報告中的收入不同？

No.

不。

On flat ASP, in U.S. dollar terms, it actually shows a little bit decline if we compare it to NT dollars throughout the quarters.

就平均售價持平而言，以美元計算，如果我們將其與整個季度的新台幣進行比較，實際上顯示出一點下降。

All right, okay.

好吧，好吧。

Thank you.

謝謝。

Shai Lesh (ph) of Nomura Securities.

Shai Lesh 的野村證券（博士）。

Can you help me understand what you said about efficiency of 12 inch being better than that of 8 in., which is one of the key reasons that you (inaudible) accelerating (indiscernible) expansion?

你能幫我理解你所說的12吋的效率比8吋的更好，這是你（聽不清楚）加速（聽不清楚）擴張的關鍵原因之一嗎？

Can you help quantify as to what kind of cost savings are you seeing on 12 inch as compared to 8 inch?

您能幫忙量化一下您認為 12 吋與 8 吋相比可以節省多少成本嗎？

Just to give you some idea about the efficiency advantage of 12 inch over 8 inch, in terms of area, 12 inch has 2.25 X of the area of an 8 inch wafer, but because of the better yield and less edge (ph) effect, on the average, you can get about 2.3 X to 2.7 X number of dais, depending on the dai (ph) size.

只是為了讓您了解 12 吋相對於 8 吋的效率優勢，就面積而言，12 吋的面積是 8 吋晶圓面積的 2.25 倍，但由於良率更高且邊緣 (ph) 效應更小，平均而言，您可以獲得大約2.3 倍到2.7 倍的dai 數量，具體取決於dai (ph) 大小。

The advantage is actually towards larger dais (ph), so in other words, for larger dais, you can have a higher number of dai ratios.

優點實際上是針對更大的 dai (ph)，因此換句話說，對於更大的 dai，您可以擁有更高數量的 dai 比率。

So in other words, your (indiscernible) advantage is to the extent of 30 percent -- what I'm asking is, at what stage or cycle are you enjoying the 30 percent cost advantage?

換句話說，你的（難以辨別的）優勢達到了30%——我想問的是，你在哪個階段或週期享受到30%的成本優勢？

We have seen crossover.

我們已經看到了交叉。

Does that mean that margins -- (technical difficulty) -- 12 inch as compared to 8 inch?

這是否意味著邊距——（技術難度）——12 英寸與 8 英寸相比？

Once you have seen the efficiency, the margin is definitely better.

一旦你看到了效率，利潤肯定會更好。

Could you help quantify as to what is the differential in terms of margins between the two?

您能幫忙量化一下兩者之間的利潤率差異有多大嗎？

No, I cannot comment on that.

不，我不能對此發表評論。

We have a technology and product mix, so it's extremely difficult to quantify it.

我們擁有技術和產品組合，因此很難對其進行量化。

Finally, given the kind of capacity plans you have on 12 inch, are you passing some of the costs -- (technical difficulty) -- your customers to help them migrate to 12 inch?

最後，考慮到您在 12 吋上製定的容量計劃，您是否會轉嫁一些成本（技術難度）以幫助您的客戶遷移到 12 吋？

Yes.

是的。

To encourage some of the customers, yes we do.

為了鼓勵一些客戶，我們是這樣做的。

What kind of discounts are talking about here?

這裡所說的折扣是什麼樣的？

We cannot talk about that.

我們不能談論這個。

Again, by customer and by technology, it depends.

同樣，這取決於客戶和技術。

Finally, for UMCi, what is the capacity you are likely to have in the second quarter?

最後，對於UMCi，你們第二季可能擁有的產能是多少？

Again, this is included on Page Seven of the press release. (indiscernible) second quarter, we have talked about we're looking at 15,000 wafers, 8 inch equivalent. (technical difficulty).

同樣，這包含在新聞稿的第七頁中。 （音頻不清晰）第二季度，我們談到我們正在研究 15,000 個晶圓，相當於 8 英寸。 （技術難度）。

What proportion of that would be using 90 nm?

其中使用 90 nm 的比例是多少？

Again, we don't have that number.

再說一遍，我們沒有這個號碼。

I mean, it is depending on customer products.

我的意思是，這取決於客戶的產品。

Okay, thank you.

好的謝謝。

Mark FitzGerald of Banc of America.

美國銀行的馬克·菲茨杰拉德。

This is actually Moralio Burri (ph) for Mark FitzGerald with a quick follow-up.

這實際上是馬克·菲茨杰拉德 (Mark FitzGerald) 的莫拉里奧·布里 (Moralio Burri) 的快速跟進。

It seems like most of your capacity expansion is back-end loaded for the second half of the year.

看起來你們的產能擴張大部分都是在今年下半年進行的。

Are you guys worried at all about leadtimes from your equipment vendors?

你們是否擔心設備供應商的交貨時間？

Or to put it another way, how many of these orders have you already placed that you are confident of delivery on?

或者換句話說，您已經下了多少訂單並且有信心交付？

We have already placed orders for all the equipment right after our announcements last year around July/August time frame.

去年 7 月/8 月左右我們發佈公告後，我們就已經下了所有設備的訂單。

So, you would say that about 80 percent of the orders for this capacity expansion are already with the vendors, or is it almost 100 percent?

那麼，您認為此次擴產的訂單中大約 80% 已經來自供應商，還是幾乎 100%？

One hundred percent.

百分之百。

Mithan Vanbani (ph) of JP Morgan.

摩根大通的 Mithan Vanbani（博士）。

A few questions -- on CapEx, did I hear that orders, at least last year (indiscernible) form orders earlier year?

有幾個問題 - 關於資本支出，我是否聽說過訂單，至少去年（聽不清楚）形成了早年的訂單？

Yes, most of our orders have been made last year.

是的，我們的訂單大多是去年下的。

(indiscernible) capacity, you said you will be looking to grow both your aluminum as well as FSG (ph) capacity, even in 90 nm. could you tell us, at this point in time, when a capacity goes to (indiscernible) by the end of 2004, what will the mix look like in terms of geometry, dielectric and coppers and aluminum?

（音訊不清晰）容量，您說過您將尋求增加鋁和 FSG (ph) 容量，即使在 90 nm 中也是如此。您能否告訴我們，到 2004 年底，當產能達到（難以辨別）時，在幾何形狀、電介質以及銅和鋁方面的混合會是什麼樣子？

That (indiscernible) fairly complex questions, and those would depend on customers' products (indiscernible).

這個（音訊不清晰）相當複雜的問題，而這些問題取決於客戶的產品（音訊不清晰）。

(indiscernible) capacity, 12 inch will be only -- (multiple speakers) -- so there won't be any incremental aluminum-based 12 inch (indiscernible) capacity, but 90 nm and .13 is really driven by customers' demands.

（音訊不清晰）容量，12 吋將只是——（多個揚聲器）——因此不會有任何增量鋁基12 吋（音訊不清晰）容量，但90 nm 和0.13 確實是由客戶需求驅動的。

The answer is -- and the reasoning is very simple because you can get the maximum benefit (indiscernible) we produce copper products.

答案是－而且推理很簡單，因為你可以從我們生產的銅產品中獲得最大的利益（難以辨別）。

The capacity expansion looks pretty impressive.

產能擴張看起來相當令人印象深刻。

You've been talking about this for awhile now.

你們已經談論這個問題有一段時間了。

After the last six months review with your customers, does your present expansion look conservative or aggressive on (indiscernible)?

經過過去六個月與客戶的審查後，您目前的擴張看起來是保守還是激進（難以辨別）？

Actually, the forecast looks very, very strong. (LAUGHTER).

事實上，這個預測看起來非常非常強勁。 （笑聲）。

We may not have enough; we may need to consider further expansion if the demand remains to be strong.

我們可能還不夠；如果需求仍然強勁，我們可能需要考慮進一步擴張。

So, as of now, you would expect to remain around (indiscernible) utilization for the next few quarters?

那麼，到目前為止，您預計未來幾季的使用率將保持在（難以辨別的）水平嗎？

We certainly hope so.

我們當然希望如此。

Just on the capacity, by fourth quarter, it could be what -- 900,00 for the quarter?

僅就容量而言，到第四季度，該季度可能會達到 90 萬個？

Because on the description (indiscernible) Q1 and Q2 in the release?

因為關於發布中的描述（難以辨認）Q1和Q2？

The whole company, including UMCi, the total capacity in 4Q this year is around 840,000 wafers, 80 inch equivalent (ph).

包括UMCi在內的整個公司今年第4季的總產能約為84萬片晶圓，80吋當量（ph）。

Going back on the R&D question, you mentioned 9 percent (indiscernible) figures for the monthly spend.

回到研發問題，您提到了每月支出的 9%（難以辨認）數字。

I am not able to correlate the two figures.

我無法將這兩個數字關聯起來。

You said 550 to 600 million per month, and that's 9 percent of 76 million, which is less than your last year's sales?

你說每月550到6億，那是7600萬的9%，比你去年的銷售額還少？

So maybe the number --.

所以也許這個數字是——。

Well, 1 percent (indiscernible) could lead to a big variance, so we cannot give you a full-year revenue.

嗯，1%（難以辨別）可能會導致很大的差異，因此我們無法為您提供全年收入。

Of course not.

當然不是。

It could be 8 to 9 percent, and it could be (indiscernible) to 50, plus or minus.

它可能是 8% 到 9%，也可能是（難以辨別）到 50%，正負。

I guess the key message here we want to send now is there will be a significant jump or reduction in terms of our R&D expensing.

我想我們現在要傳達的關鍵訊息是我們的研發費用將會大幅增加或減少。

So there is a won't be or there will be?

那麼是不會有還是將會有呢？

There won't be.

不會有的。

Cody Acree of Legg Mason.

美盛集團 (Legg Mason) 的科迪·阿克里 (Cody Acree)。

Thanks.

謝謝。

With about a 15 percent expected increase in 8 inch equivalents that seem to be second half loaded with maybe a 25 percent increase in semi growth through the year with heavy utilizations now, how are you handling those incremental customers?

預計 8 吋同等產品將成長約 15%，下半年半導體產品的成長可能會達到 25%，而且現在利用率很高，您如何處理這些增量客戶？

Obviously, there must be somebody who's not quite getting fully taken care out of 100 percent of demand.

顯然，肯定有人沒有完全滿足 100% 的需求。

How do you make that determination where those orders get filled?

您如何確定這些訂單的執行位置？

I think we make allocation based on several criteria -- strategic relationship, ASP/gross margin; we also look at the profile of technology/applications.

我認為我們根據幾個標準進行分配——戰略關係、平均售價/毛利率；我們也關注技術/應用的概況。

Talking about ASP increases in the low single digits this quarter, what's happening with ASPs for those incremental orders?

談到本季平均售價以較低的個位數成長，這些增量訂單的平均售價發生了什麼？

When somebody is coming in and saying, "I've got to raise above forecast", what's happening with those individual ASPs versus those that have been contractually committed to for the last several quarters?

當有人進來並說“我必須提高高於預期”時，這些單獨的平均售價與過去幾個季度合約承諾的平均售價相比，發生了什麼？

As you can understand, in the current demand/supply situation, when customers ask for capacity upside, usually they are willing to pay for more.

如您所知，在當前的需求/供應情況下，當客戶要求提高容量時，通常他們願意支付更多費用。

How does that compare to your blended beverage ASP expected increase?

與您的混合飲料平均售價預期成長相比如何？

Is it significantly more for that incremental order?

對於增量訂單來說，它是否明顯更多？

We cannot answer that.

我們無法回答這個問題。

The only thing we can see is that, starting from this quarter, we will gradually see the effect of the price increase.

我們唯一能看到的是，從本季開始，我們將逐漸看到漲價的效果。

Ivan Goh of DRKW.

DRKW 的 Ivan Goh。

Just a couple of questions.

只是幾個問題。

You wrote off some long-term investments during the quarter.

您在本季沖銷了一些長期投資。

Can you just give us an idea of how much more investments that you can profitably write off in 2004?

您能否告訴我們 2004 年您還可以註銷多少投資並從中獲利？

I think that, in 2003, most of the (indiscernible) write off, so in 2004, (indiscernible) the amount is minimum, it is very immaterial.

我認為，2003年，大部分（聽不清楚）註銷了，所以2004年，（聽不清楚）金額是最小的，這是非常無關緊要的。

Okay.

好的。

Can you perhaps give us an idea of how we should model your tax rate in 2004?

您能否告訴我們應該如何對 2004 年的稅率進行建模？

We actually answered that question during the afternoon session(indiscernible), so we still have a lot of tax credits on-hand.

我們實際上在下午的會議上回答了這個問題（聽不清楚），所以我們手邊還有很多稅收抵免。

As long as the current market condition continues, which means UMC will continue to generate enough profit in order to materialize those tax credits, at least for the first quarter, we don't need to book any tax expenses.

只要當前的市場狀況持續下去，這意味著聯華電子將繼續產生足夠的利潤以實現這些稅收抵免，至少在第一季度，我們不需要記入任何稅收費用。

Right.

正確的。

I guess my next question is, I know you can't see right through to the end of the year, but given that we're now in sort of like a back to 100 percent utilization and ASP is rising in the first quarter and you earlier mentioned that you do hope to see full utilization of your capacity for the rest of the year, have you can any idea where ASP could hit by the end of the year?

我想我的下一個問題是，我知道您無法預見到今年年底，但考慮到我們現在的利用率已回到 100%，而且第一季的 ASP 正在上升，而且您前面提到，您確實希望在今年剩餘時間內看到產能得到充分利用，您是否知道ASP 到年底會達到什麼水準？

I mean, what kind of year-on-year growth we might expect in ASP for 2004 versus 2003?

我的意思是，與 2003 年相比，我們預計 2004 年的平均售價會出現什麼樣的年成長率？

Again, that is a very difficult question to answer, as every customers' product is different, so the technology and the product mix are fairly complicated.

同樣，這是一個非常難以回答的問題，因為每個客戶的產品都不同，因此技術和產品組合相當複雜。

Would you expect to go back to your historical high?

您希望回到歷史高點嗎？

Which was? (multiple speakers).

哪一個是？ （多個發言者）。

Do you expect to go back to your ASP that you had, that you enjoyed in 2000 or something like that?

您是否希望回到 2000 年時使用的 ASP 或類似的版本？

It's hard to compare.

很難比較。

Mike O'Brien of SoundView Tech Group.

SoundView 技術集團的 Mike O'Brien。

Good evening.

晚安.

Maybe following up again on the R&D expenses, it seems to be a little bit confusing.

或許再跟進研發費用，似乎有點讓人摸不著頭緒。

It seems like you were saying earlier that we were going to have a meaningful increase but then you said there won't be a meaningful increase in R&D for 2004.

您之前似乎說過，我們將會有有意義的成長，但後來又說 2004 年的研發支出不會有有意義的成長。

Is that correct?

那是對的嗎？

There won't be an increase in R&D expenses but in terms of percentage of revenue, there won't be a meaningful increase.

研發費用不會增加，但就佔收入的百分比而言，不會有有意義的增加。

That's what he was referring to in terms of percentage of revenue.

這就是他所說的收入百分比。

How about other operating expenses?

其他營運費用怎麼樣？

Should we assume that that will be a similar percentage of revenue for SG&A expenses?

我們是否應該假設 SG&A 費用佔收入的比例相似？

Percentage of revenue-wise, will stay similar to that of last year.

收入百分比將與去年相似。

Ashis Kumar (ph) of CS First Boston has a follow-up.

CS First Boston 的 Ashis Kumar（博士）有後續行動。

Thank you.

謝謝。

Sorry to go back to the R&D expense.

抱歉，回到研發費用。

Chitung, from what I could understand, you said there will be an increase but not as a percent of revenue.

Chitung，據我所知，您說會有增加，但不是佔收入的百分比。

You also said that R&D should be about 9 percent.

您還說研發應該佔9%左右。

So 9 perhaps is incorrect? (indiscernible) lower than 9 percent?

那麼 9 也許是不正確的？ （音訊不清晰）低於 9%？

It will be a little bit less than 9.

會比9少一點點。

It depends (indiscernible) is in terms of percentage of revenue for '03.

這取決於（難以辨別）是 03 年收入的百分比。

But if you look at '03, it was actually less than 7 percent, so there's a big gap between 7 and 9.

但如果你看一下03年，實際上還不到7%，所以7和9之間有很大的差距。

I'm just trying to model, so asking question.

我只是想建模，所以問問題。

I guess we'll have to correctly say it's between 7 and 9.

我想我們必須正確地說它在 7 到 9 之間。

Wait until we provide additional information in the next two quarters.

等到我們在接下來的兩個季度提供更多資訊。

Let me ask just one more question.

讓我再問一個問題。

You had suggested gross margin should be improved sequentially.

您曾建議毛利率應依序提高。

Would you sort of comment -- make a similar comment on operating margin trend, 1Q '04 over 4Q '03?

您能否對 04 年第 1 季與 03 年第 4 季的營業利潤率趨勢做出類似的評論？

To answer is yes.

答案是肯定的。

It will also gradually improve.

也會逐漸改善。

Timothy Arkuri (ph) of Deutsche Bank also has a follow-up.

德意志銀行的 Timothy Arkuri（博士）也有後續行動。

This is actually Dan Barrenbaum (ph) for Tim.

這實際上是蒂姆的丹·巴倫鮑姆（Dan Barrenbaum）。

I wanted to follow-up again on the CapEx and orders question -- something that is a little confusing to me.

我想再次跟進資本支出和訂單問題——這對我來說有點令人困惑。

Maybe you could help clarify.

也許你可以幫忙澄清一下。

You're saying that everything ordered already for the cap spend for this year.

你是說今年的支出上限已經訂購了所有東西。

Does that mean that you are not going to order anything more towards the end of the year?

這是否意味著您在年底前不會再訂購任何東西？

Do you have any kind of visibility on what sort of equipment orders you might place towards the end of '04?

您是否了解 04 年底您可能會下什麼樣的設備訂單？

As I mentioned earlier, if the demand continues to increase, then we will consider further expansion.

正如我之前提到的，如果需求持續增加，那麼我們會考慮進一步擴張。

Do you have just sort of a rough timeline on when you would maybe make that decision?

您是否有一個粗略的時間表來說明您何時會做出這個決定？

I realize you don't have a crystal ball but --.

我知道你沒有水晶球，但是——。

We are reviewing it every month.

我們每個月都會對其進行審查。

Mithan Vanbani with JP Morgan also has a follow-up.

摩根大通的 Mithan Vanbani 也有後續行動。

Yes, how is (indiscernible) wafer supply, raw wafer supply? (indiscernible) citing that it is becoming quite tight.

是的，（聽不清楚）晶圓供應、原始晶圓供應情況如何？ （音頻不清晰）指出它變得非常緊張。

We haven't heard any concern there.

我們沒有聽到任何擔憂。

So your supply for 2004 is already tightened? (multiple speakers).

那麼你們2004年的供應已經緊張了？ （多個發言者）。

Again, I said that we haven't heard any concerns in that area.

我再說一遍，我們沒有聽到這方面的任何擔憂。

Okay.

好的。

On your constant (indiscernible), you said that the (indiscernible) have already happened.

在你的常數（音訊不清晰）中，你說（音訊不清晰）已經發生了。

Did that happen in Q4?

這發生在第四季嗎？

Because the volume in Q4 was quite low -- 7 to 8,000 wafers per month.

因為第四季的產量相當低——每月 7 到 8,000 片晶圓。

It happened last year.

事情發生在去年。

All right.

好的。

Thank you.

謝謝。

Michael McConnell of Pacific Crest Securities also has a follow-up.

Pacific Crest Securities 的 Michael McConnell 也有後續行動。

I just wanted to follow-up on the pricing question earlier, or relative to ASPs and ask it just a little different way.

我只是想跟進之前的定價問題，或者相對於 ASP 的問題，並以稍微不同的方式提出這個問題。

Looking at your gross margins that you did in '99, it looks like you were roughly around 42 percent, so you did about 28 percent in Q4, so we have still got quite a bit of leverage here, at least on the gross margin line.

看看你們 99 年的毛利率，看起來大約在 42％ 左右，所以第四季度的毛利率約為 28％，所以我們在這裡仍然有相當大的槓桿，至少在毛利率線上。

Is there anything that would lead us to believe that you couldn't possibly get to your peaks in terms of the gross margin line that you saw in '99, not even considering 2000?

是否有任何因素會讓我們相信，即使不考慮 2000 年，您也不可能達到 99 年毛利率的峰值？

Honestly, right now, the visibility is not long enough and we certainly would like to return to a 42 percent margin but again, it will take more time to be sure, or to see better.

老實說，目前的可見度還不夠長，我們當然希望回到 42% 的利潤率，但同樣，需要更多的時間來確定或看得更好。

Right.

正確的。

It's just with the increased competition just in the foundry industry in general, would it be fair to just assume that some of the peaks you saw, even in 2000, would be hard to reach, or could we look at --?

只是隨著鑄造行業整體競爭的加劇，是否可以公平地假設您所看到的一些峰值（即使在 2000 年）也很難達到，或者我們可以看看——？

I know your visibility is limited, but just looking at the industry as a whole, it would just assume -- I mean, we are obviously getting some pricing competition coming out of China and some of the other smaller, more upstart foundries.

我知道你的知名度是有限的，但只要看看整個行業，它就會假設——我的意思是，我們顯然正在從中國和其他一些更小、更新貴的代工廠那裡獲得一些價格競爭。

So would that have an impact, do you think, going forward, on your gross margin line, or do you think, with 300 mm and the fact that you're just really starting your technology ramp to .13 micron in the leading-edge, we could still be seeing quite a bit of leverage on the gross margin side?

那麼，您認為這會對您的毛利率線產生影響嗎？或者您認為，對於 300 毫米，而且您剛剛真正開始將技術提升到領先的 0.13 微米，我們仍然可以看到毛利率方面有相當多的槓桿？

I think the fabs in China are producing still most of the -- what we call the Legacy process technology, or the larger geometries.

我認為中國的晶圓廠仍在生產大部分——我們所說的傳統製程技術，或更大的幾何形狀。

As I mentioned earlier, we are not feeling pressure from them.

正如我之前提到的，我們沒有感受到來自他們的壓力。

Okay, thank you.

好的謝謝。

Pernaub Sarma of Dyla (ph) Institutional also has a follow-up.

Dyla (ph) 機構的 Pernaub Sarma 也有後續行動。

Thank you.

謝謝。

Could you please comment a little bit on your customer concentration, like how it was on the fourth quarter last year?

您能否評論一下您的客戶集中度，例如去年第四季的情況？

A second question is basically on the cash dividend.

第二個問題主要是關於現金股利。

Are you or do you think that you will give a cash dividend this fiscal year?

您是否或您認為本財政年度會發放現金股利？

On the customer applications, I think also we have -- (multiple speakers) -- published that data.

關於客戶應用程序，我認為我們也（多個發言者）發布了該數據。

For top 10 customers, they accounted for 54.8 percent of revenue, and the top 15 customers accounted for 65 (ph) percent of the revenue.

前10名客戶佔收入的54.8%，前15名客戶佔收入的65%。

On an annual basis, no single customer is more than 10 percent of our revenue.

每年，沒有一個客戶占我們收入的 10% 以上。

Since you have a lot of cash now, do you think that you will continue your cash dividend?

既然你現在現金很多，你認為你還會繼續現金分紅嗎？

We cannot comment on that.

我們無法對此發表評論。

Okay, thank you.

好的謝謝。

My question has been answered.

我的問題已經得到解答。

Donald Lu (ph) of Goldman Sachs.

高盛的唐納德·盧（博士）。

Earlier, you mentioned that UMCi's breakeven would be (indiscernible) wafers per month.

早些時候，您提到 UMCi 的收支平衡將是每月（難以辨認的）晶圓。

I assume that is at the end this year.

我想那是在今年年底。

Should I assume that is your breakeven for 300 mm by the end this year?

我是否應該假設這是您今年年底 300 毫米的損益平衡點？

If that's true, what is your current 300 mm breakeven wafer numbers?

如果這是真的，您目前的 300 毫米損益平衡晶圓數量是多少？

We are talking about the general breakeven point structure for 12 inch fabs, and the breakeven point can be reached when the wafer-out reaches (indiscernible) 12 inch wafers per month.

我們討論的是12吋晶圓廠的一般損益平衡點結構，當每月晶圓產量達到（無法辨別）12吋晶圓時，就可以達到損益平衡點。

So, assuming that your yield should improve -- (multiple speakers) -- 300 mm, so if 10-K (ph) is at the end of this year, should we as you current breakeven is at a higher number of wafers?

因此，假設您的良率應該提高 - （多個揚聲器） - 300 mm，那麼如果今年年底達到 10-K (ph)，我們是否應該像您目前那樣採用更多數量的晶圓來實現盈虧平衡？

No.

不。

Again, we have a wide range of products and product/technology mix.

同樣，我們擁有廣泛的產品和產品/技術組合。

Gentlemen, our final question will come from Shai Lesh (ph) of Nomura Securities.

先生們，我們的最後一個問題將來自野村證券的 Shai Lesh（博士）。

I just wanted to clarify something on UMCi accounting.

我只是想澄清一些關於 UMCi 會計的事情。

Am I right to assume that, on the quarterly numbers, there will be no impact on gross margins?

我的假設是否正確：就季度數據而言，毛利率不會受到影響？

At the end of the year, when you (indiscernible), there will be (indiscernible) decline in gross margins?

到年底的時候，你（聽不清楚），毛利率會不會（聽不清楚）下降？

For the Taiwan accounting, will do annual consolidated (indiscernible) report, which will consolidate the UMCi performance into the annual report.

對於台灣會計，將做年度合併（聽不清楚）報告，將UMCi的業績合併到年報中。

On a quality basis, we don't have to do consolidation.

在品質的基礎上，我們不需要進行整合。

However, the profit and loss comes in under the equity method under investment income or loss, but since we are going to base it on our (indiscernible) agreement, the revenue generated from UMCi will be recognized in the UMC revenue in Taiwan.

然而，損益是按權益法計入投資損益，但由於我們將根據我們的（無法辨別的）協議，因此UMCi產生的收入將在台灣的UMC收入中確認。

(technical difficulty) -- for '04 from UMCi?

（技術難度）—UMCi '04 的？

Can you repeat your question again?

你能再重複一次你的問題嗎？

What was the estimated appreciation (ph) for UMC for '04?

04 年 UMC 的預計升值 (ph) 是多少？

We so far can only give you the possible equity method basis investment loss for Q1.

到目前為止，我們只能為您提供第一季可能的權益法基礎投資損失。

It's about 800 million.

大約是8億。

Other than that, it really depends on ramp-up schedule for UMCi.

除此之外，這實際上取決於 UMCi 的啟動時間表。

We don't have those figures yet.

我們還沒有這些數字。

Okay, thank you.

好的謝謝。

There are no further questions.

沒有其他問題了。

Mr. Liu, we will turn the conference back over to you for any additional or closing remarks.

劉先生，我們將把會議轉回給您進行補充或結束演講。

Thank you.

謝謝。

Thank you, everybody, for your interest in UMC.

感謝大家對聯華電子的關注。

Please feel free to contact us directly if you have any additional questions.

如果您有任何其他問題，請隨時直接與我們聯絡。

Good day, everyone.

今天是個好日子。

That concludes our call.

我們的通話到此結束。

That does conclude today's conference.

今天的會議到此結束。

We do thank you for your participation.

我們非常感謝您的參與。