聯華電子 (UMC) 2004 Q4 法說會逐字稿

Good day, ladies and gentlemen, and welcome to the United Microelectronics Corporation fourth quarter 2004 earnings conference call. My name is Rachel and I will be your coordinator for today. At this time, all participants are in a listen-only mode. We will be facilitating a question-and-answer session towards the end of today's conference. (OPERATOR INSTRUCTIONS). As a reminder this conference is being recorded for replay purposes. I would now like to turn the presentation over to your host for today's conference, Mr. Chitung Liu, Finance Director. Please proceed sir.

美好的一天，女士們、先生們，歡迎參加聯華電子公司2004年第四季財報電話會議。我叫雷切爾，我將擔任你們今天的協調員。此時，所有參與者都處於只聽模式。我們將在今天會議結束時安排問答環節。 （操作員說明）。謹此提醒，本次會議正在錄製以供重播之用。現在我想把演講交給今天會議的主持人，財務長劉啟東先生。請先生繼續。

Thank you. Welcome everyone for attending our fourth quarter earnings conference call. We are hosting this conference call from Taipei. Here to help report our results are Mr. Jackson Hu, CEO, and Mr. Stan Hung, CFO. Before beginning this presentation, I would like to remind everyone of our Safe Harbor policy. That is certain statements made during the course of the discussion today may constitute forward-looking statements which are based on management's current expectations and beliefs. 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. For this risk please refer to UMC's filings with the SEC in the U.S. and the ROC securities authorities. Now I would like to turn the call to today's speakers Dr. Jackson Hu, CEO of UMC.

謝謝。歡迎大家參加我們的第四季財報電話會議。我們在台北主持這次電話會議。執行長 Jackson Hu 先生和財務長 Stan Hung 先生在此幫助報告我們的業績。在開始本演講之前，我想提醒大家我們的安全港政策。也就是說，今天討論過程中所做的某些陳述可能構成基於管理階層當前期望和信念的前瞻性陳述。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。對於此風險，請參閱聯華電子向美國 SEC 和中華民國證券監管機構提交的文件。現在我想請今天的演講者，聯華電子執行長胡博士 (Jackson Hu) 博士發言。

Thank you Chitung. First of all, I would like to say Happy New Year to everyone who is attending this conference. This applies to both the Western calendar and the Chinese lunar calendar. I wish everyone a prosperous and healthy 2005. As always, I'm going to start with a brief summary of our operating results for the first quarter of 2004, and for the whole year. I believe you all have seen our press release by now, so I will try to keep my remarks short. Following this summary, I will review the outlook and the guidelines for the first quarter of 2005. We will then leave the rest of the time for questions and answers.

謝謝吉東。首先，我向參加本次會議的各位表示新年快樂。這適用於西曆和中國農曆。祝大家2005年事業興旺、身體健康。與往常一樣，我將首先簡要總結 2004 年第一季和全年的經營業績。相信大家已經看到了我們的新聞稿，所以我的發言盡量簡短。在此總結之後，我將回顧 2005 年第一季的前景和指導方針。然後我們將剩下的時間留給提問和回答。

Now for the summary. For year 2004, UMC has executed well and fully grabbed the market opportunities presented to us in the first three-quarters. Also revenue and the wafer shipments have reached historical highs. Revenue reached NT$117.3 billion which is a 32.8 percent increase over 2003. Please notice that I am not reporting the revenue in U.S. dollars. The New Taiwan Dollar has appreciated significantly over the year. In U.S. dollars, then the growth rate over 2003 would be artificially inflated. Wafer shipments for 2004 was totaling 2.8 million wafers, a 28.3 percent increase over 2003.

現在進行總結。2004年，聯華電子表現出色，充分抓住了前三季的市場機會。收入和晶圓出貨量也達到了歷史新高。營收達新台幣1,173億元，較2003年成長32.8%。請注意，我沒有以美元報告收入。新台幣一年來大幅升值。如果以美元計算，2003 年的成長率將被人為誇大。2004年晶圓出貨量總計280萬片，較2003年成長28.3%。

During 2004, in new process technology development, such as 90nm and 65nm, IP core development (indiscernible) support, manufacturing yield-enhancement, patent portfolio establishment, etc., we have made good progress. Due to the strong position of our advanced process technology such as 90nm and 65nm, we have invested aggressively on 12-inch capacity. Our year end capacity of 12A and UMCi have exceeded the planned 20-K and 10-K respectively. Total CapEx actual spending for 2004 was $2.56 billion versus the previously planned 2.18 billion. Basically in the last year, UMC's fundamental competitiveness has improved and we are seeing the initial positive results of our strategy as a pure play foundry focusing on providing solutions for today's SOC design.

2004年，在90nm、65nm等新製程技術開發、IP核開發（聽不清楚）支援、製造良率提升、專利組合建立等方面，我們都取得了良好的進展。由於我們在90奈米和65奈米等先進製程技術方面的優勢，我們在12吋產能上積極投資。我們的12A和UMCi年底產能分別超過了計畫的20-K和10-K。2004 年實際資本支出總額為 25.6 億美元，而先前計畫為 21.8 億美元。基本上在去年，聯華電子的基本競爭力有所提高，我們作為一家專注於為當今的 SOC 設計提供解決方案的純晶圓代工廠戰略已初見成效。

Now let's turn to the fourth quarter results. Due to across the board inventory correction on the customer sites, revenue, gross margin, shipping, quantity, etc. for 4Q 2004 dropped. However, the operating results were in line with our early forecast. We shipped 657,000 8-inch equivalent wafers which was a 17 percent decrease over the third quarter. Quarter-over-quarter revenue decreased by 18.4 percent to NT$28.2 billion. Note this was a 19 percent increase over the equivalent period in 2003. Quarter-over-quarter operating income decreased by 37.5 -- 67.5 percent to NT$2.5 billion. Net income decreased 87.8 percent to NT$1.3 billion. The blended average selling price pretty much remained flat.

現在讓我們來看看第四季的業績。由於客戶現場庫存全面調整，2004年第四季的營收、毛利率、出貨量、數量等均出現下降。然而，經營績效符合我們早期的預測。我們出貨了 657,000 片 8 吋等效晶圓，比第三季下降了 17%。營收季減18.4%至新台幣282億元。請注意，這比 2003 年同期成長了 19%。營業收入較上季減少37.5%至67.5%至新台幣25億元。淨利減少87.8%至新台幣13億元。混合平均售價幾乎不變。

The challenges seen in the fourth quarter were primarily driven by the weakening in the semiconductor market. This had a significant impact on the decrease in UMC's capacity utilization rate, and as a result the revenues. However, our results also reflect increasing operating expenses. This was because we acquired some IP and we significantly increased our R&D expenditure for 90nm and 65nm technology development at Fab 12A. We believe that the timing for this was right and the investments will help position us well for the second half of 2005 and into 2006.

第四季面臨的挑戰主要是由半導體市場疲軟造成的。這對聯電產能利用率的下降以及收入產生了重大影響。然而，我們的業績也反映出營運費用的增加。這是因為我們獲得了一些IP，並大幅增加了Fab 12A的90nm和65nm技術開發的研發支出。我們相信，這樣做的時機是正確的，這些投資將有助於我們在 2005 年下半年和 2006 年保持良好的地位。

Most significantly in the fourth quarter, the percentage of total revenue from 90nm technology jumped from 2 percent to 8 percent. It was well ahead of our guidance of an increase to 5 percent. It demonstrates our commitment and the successful ramp up to the most leading-edge technologies.

最顯著的是第四季度，90nm 技術佔總收入的百分比從 2% 躍升至 8%。這遠遠超出了我們 5% 的成長預期。它體現了我們的承諾以及對最前沿技術的成功提升。

Now let me turn to the guidance for the first quarter of 2005. Year 2004 was again demonstrated by the dynamic nature of our business. The demand sharply dropped in Q4 as we discussed due to inventory correction. Fortunately, the inventory level was not very high. Over the last three-months, we have noticed that OEM inventory has depleted as well and even though inventory levels for different applications and the customers vary.

現在讓我談談 2005 年第一季的指引。2004 年我們的業務再次展現出活力。正如我們所討論的，由於庫存調整，第四季度的需求急劇下降。幸運的是，庫存水準並不是很高。在過去三個月中，我們注意到 OEM 庫存也已耗盡，儘管不同應用程式和客戶的庫存水準有所不同。

We started to see demand increase in March and, therefore, we are cautiously optimistic that Q1 revenue could be the bottom. The capacity investments we made in 2004 may cause near-term pressure on operating results, however, we strongly believe that as soon as market demand picks up these capacities will allow us to satisfy the market demand quickly.

我們從三月開始看到需求增加，因此，我們對第一季營收可能觸底持謹慎樂觀態度。我們2004年進行的產能投資可能會對經營業績造成短期壓力，但我們堅信，一旦市場需求回升，這些產能將使我們能夠迅速滿足市場需求。

Quarter-over-quarter, itemized the targets. Wafer ASPs, a decrease of approximately 10 percent in U.S. dollar terms is expected. We clearly feel the price pressure as the mature technology nodes such as 0.35 micron and the 0.25 micron. Wafer shipments expected a decrease of 17 percent.

每季逐項列出目標。以美元計算，晶圓平均售價預計將下降約 10%。隨著0.35微米、0.25微米等成熟技術節點，我們明顯感受到價格壓力。晶圓出貨量預計將下降 17%。

Capacity utilization rates, approximately 60 percent and profitability approaching operating breakeven point. Percentage of 0.18 micron and below revenues stay unchanged quarter-over-quarter with revenue from 90nm expected to reach approximately 10 percent. 2005 CapEx expected to be within the range of U.S. 1 billion to U.S. $1.5 billion. So that pretty much wraps up my outlook guidelines. We thank you for your continued support and appreciate your attendance to the meeting again. Now we can take your questions.

產能利用率約 60%，獲利能力接近營運損益平衡點。0.18微米及以下的收入比例上季不變，90奈米的收入預計將達到10%左右。 2005 年資本支出預計在 10 億美元至 15 億美元之間。這幾乎概括了我的展望指南。我們感謝您一直以來的支持，並感謝您再次出席會議。現在我們可以回答您的問題。

Thank you. (OPERATOR INSTRUCTIONS). Robert Maire of Needham & Company.

謝謝。 （操作員說明）。李約瑟公司的羅伯特‧梅爾。

Congratulations on the good results. Two questions. One, if you could give us a breakdown of where you saw our strength from customers, what product applications, consumer versus PC communications and such, and your prognosis or your projections for that going forward into the first quarter? Second question on CapEx, you said between 1 and 1.5 billion. Does that include UMCi because you had broken it out in your press releases, CapEx last year being 1.53 billion and 0.91 billion for UMCi?

恭喜取得好成績。兩個問題。第一，您能否向我們詳細說明您從客戶那裡看到的優勢、哪些產品應用、消費者與 PC 通訊等，以及您對第一季的預測或預測？關於資本支出的第二個問題，您說在 1 到 15 億之間。這是否包括 UMCi，因為您在新聞稿中已經透露過，去年 UMCi 的資本支出為 15.3 億美元，UMCi 為 9.1 億美元？

To answer your first question, you probably have noticed in our earlier press release, that we have sales breakdown by applications. So in 2004, Q4 we are seeing 49 percent in communications, 24 percent in computer and 23 percent in consumer. That profile will pretty much stay the same moving forward in Q1. That is our best estimate at this time. To be more specific, we do see strong demand in display panel related IC. And for broadband we still see weakness. To answer your questions, yes, the new spending number has included the expending for UMCi.

為了回答您的第一個問題，您可能已經在我們先前的新聞稿中註意到，我們按應用程式進行了銷售細分。因此，在 2004 年第四季度，我們看到通訊領域佔 49%，電腦領域佔 24%，消費者領域佔 23%。在第一季度，這一情況將基本保持不變。這是我們目前最好的估計。更具體地說，我們確實看到顯示面板相關IC的強勁需求。對於寬頻，我們仍然看到弱點。回答你的問題，是的，新的支出數字已經包括了 UMCi 的支出。

Okay, great. Thank you very much.

好的，太好了。非常感謝。

Michael McConnell of Pacific Crest Securities.

Pacific Crest 證券公司的 Michael McConnell。

Thank you. Could you kind of give us an indication where for 2005 you feel your capacity will be going?

謝謝。您能否告訴我們 2005 年您認為您的產能將走向何方？

You mean overall?

你是說整體？

Yes. Off of the 3.16?

是的。3.16下架了？

Okay. If we included the $1.5 billion, we expect the total probably a 25 percent increase at the end of 2005 versus the end of 2004.

好的。如果將這 15 億美元納入，我們預計 2005 年底的總額可能會比 2004 年底增加 25%。

Looking at --.

看著 - 。

Year-over-year.

一年又一年。

Right, year-over-year. Could you also talk about what went on with the net nonoperating income line? I think you had guided that line to primarily flat in Q4 and definitely that did not come through. Was that just something to do with some shares sales that got pushed out, or just a little explanation there would be helpful.

沒錯，年復一年。您能否也談談營業外淨收入線的情況？我認為你在第四季度引導這條線基本上持平，但肯定沒有實現。這是否只是與一些被推出的股票銷售有關，或者只是做一點解釋會有幫助。

Are you referring to the Q4 operating expense?

您指的是第四季的營運費用嗎？

The net nonoperating income, correct.

非營業淨收入，正確。

Net nonoperating income. Okay. So please restate your question again.

營業外收入淨額。好的。所以請再次重申你的問題。

Just curious, your previous guidance I believe if I heard it correctly on the last conference call, was that it was going to be flat and it looked like we actually saw a decline in that line item. I was just curious what was going on?

只是好奇，我相信如果我在上次電話會議上聽到正確的話，您之前的指導是，它將持平，而且看起來我們實際上看到了該訂單項目的下降。我只是好奇發生了什麼事？

The downturn which hit the semiconductor, overall, also has negative impact on UMCi as well. So the loss coming from UMCi is also greater than expected. Actually, if you recall in the last Q3 conference call, we did mention we tried to recognize the $3.5 billion loss associated with UMCi acquisition at one time in the single quarter. But it turned out that we will have to amortize over 5 year period. So we didn't actually give a flat guidance for the nonoperating item.

總體而言，半導體產業的低迷也對 UMCi 產生了負面影響。因此UMCi的損失也比預期大。事實上，如果您還記得在上一次第三季電話會議中，我們確實提到我們試圖在一個季度內一次性確認與 UMCi 收購相關的 35 億美元損失。但事實證明，我們將不得不在5年內攤銷。因此，我們實際上並沒有對非營運項目給予統一的指導。

Okay. Just looking at Q1, where do you think that line item will go?

好的。看看 Q1，您認為該訂單項目會去哪裡？

It will be around breakeven for the nonoperating item as a whole.

整個非經營項目將達到損益平衡點。

Okay, thank you.

好的謝謝。

Dan Heyler of Merrill Lynch.

美林證券的丹·海勒。

I just had a few follow-ups for you guys. On the tax credit in previous downturns, you could exercise some pretty hefty tax credits to kind of help through the difficult times. Do you expect to do that, given your 300 mm spending and credits that you have accrued there, or should we assume that it's 0 as it has been last year?

我剛剛為你們進行了一些後續行動。在先前經濟低迷時期的稅收抵免方面，您可以行使一些相當大的稅收抵免，以幫助度過困難時期。考慮到您在 300 毫米的支出和累積的積分，您是否希望這樣做，還是我們應該假設它像去年一樣為 0？

You should expect 0.

你應該期望 0。

Why is that number not going up given the amount of the advanced spending that you have been taking? My understanding is you can offset your taxes based on higher CapEx? How come that number isn't going up now?

考慮到您已經預支的支出金額，為什麼這個數字沒有增加？我的理解是，您可以根據更高的資本支出來抵消稅金嗎？怎麼現在這個數字沒有上升？

We need to depend on the forward-looking position. We base it on a very conservative estimate of the tax credit.

我們需要依靠前瞻性的立場。我們基於對稅收抵免的非常保守的估計。

How much do you have accrued that is still on the books that is accrued and usable?

您已經應計了多少仍在應計且可用的帳面上？

Actually highly discretionary. We have some used credit per se for as much as a couple billion of NT dollars. But as our CFO just mentioned the run rate is actually associated with the revenue and also the profit line. So we cannot be too aggressive, otherwise we will have to return the tax credit in the future.

實際上是高度自由裁量的。我們本身就有一些使用過的信貸，金額高達數十億新台幣。但正如我們的財務長剛才提到的，運行率實際上與收入和利潤線有關。所以我們不能太激進，否則以後就得把稅收抵免退回來。

Got you. Okay. From your investment disposals, that is also a vehicle that is available to you. You have been the pretty steady about it. But again in previous downturns those numbers tend to go up. Would you be willing to use that to also kind of help through this correction?

明白你了。好的。從您的投資處置來看，這也是您可以使用的工具。你對此一直相當穩定。但在之前的經濟低迷時期，這些數字往往會上升。您願意用它來幫助糾正嗎？

We understand the value of the stock should be the main business but in order to further strengthen or streamline our balance sheet, to dispose of non-core assets is always our strategy. We may speed up or slowdown depends on the market condition.

我們明白股票的價值應該是主營業務，但為了進一步加強或精簡我們的資產負債表，處置非核心資產始終是我們的策略。我們可能會加快或放緩取決於市場狀況。

Okay, great. So you remain flexible there? From the standpoint, I guess as you are looking your -- you talked about some pricing pressure being a little more severe on 0.35 and 0.25. Where do you see the pricing on the 1.8 and 1.3 nodes going over the next 6 months or so? Do you anticipate pricing there starting to get a little more severe than it has been so far?

好的，太好了。所以你在那裡保持靈活性？從角度來看，我想當您正在尋找您的東西時，您談到了 0.35 和 0.25 的一些定價壓力稍微嚴重一些。您認為未來 6 個月左右 1.8 和 1.3 節點的定價如何？您預計那裡的定價會開始變得比迄今為止更加嚴格嗎？

Yes, we started to see some price pressure for 0.18 and 0.15 micron technology as well. Whether the pressure will become higher we need to watch, again, depending on the demand. If the demand starts to come back then the situation may ease up.

是的，我們也開始看到 0.18 和 0.15 微米技術面臨一些價格壓力。壓力是否會變得更大，我們需要再次觀察，這取決於需求。如果需求開始回升，那麼情況可能會有所緩解。

Right. You're offsetting some of that with 90nm. Do you have -- (indiscernible) 8 percent of revenues. I know you don't have a whole lot of visibility but do you think that can hit say 15 percent by midyear in terms of revenue and mix? Or is it hard to say at this point?

正確的。你用 90nm 抵消了其中的某些東西。你有－（聽不清楚）8% 的收入嗎？我知道您沒有太多的知名度，但您認為到年中收入和組合方面可以達到 15% 嗎？還是現在還很難說？

It is hard to say at this point. I think I mentioned this afternoon in Taipei's meeting that we do have customers' products in the early phase of ramp up. It depends how smoothly that goes. We don't control everything.

目前還很難說。我想我今天下午在台北的會議上提到過，我們確實有客戶的產品處於初期階段。這取決於進展的順利程度。我們無法控制一切。

Right. Design wins that you've gotten prototyping, can you give us a rough number in terms of parts that are in the fabs and being worked on? Is it in the high 50 to 100 or under 50?

正確的。設計取得了勝利，您已經完成了原型設計，您能否給我們晶圓廠中正在加工的零件的粗略數字？是在 50 到 100 之間還是在 50 以下？

I think around maybe -- it's under 50, yes.

我想大概是——是的，不到 50 歲。

Great, thank you.

太好了謝謝。

Timothy Arcuri of Smith Barney.

史密斯·巴尼 (Smith Barney) 的蒂莫西·阿庫裡 (Timothy Arcuri)。

A actually I had two questions. Number one, can you give us kind of an idea of how linear your spending at both core UMC and at UMCi will be through 2005, i.e., is it front half loaded, is it back half loaded?

A 其實我有兩個問題。第一，您能否向我們介紹一下您在核心 UMC 和 UMCi 的支出到 2005 年的線性程度如何，即是前半負載還是後半負載？

The spending, I wouldn't say it was linear, a lot of the new spending was definitely depending on the market demand as you can understand, right? So it's hard to predict the linearity at this point.

我不會說支出是線性的，很多新支出肯定取決於市場需求，正如你所理解的，對吧？所以此時很難預測線性度。

Okay, okay. I guess this is a second question. I assume that 90nm, your employing some kind of Low-k dielectric. Is that right?

好吧好吧。我想這是第二個問題。我假設 90nm，您使用某種低 k 電介質。是對的嗎？

Yes.

是的。

What kind of success have you had with that technology? Have you had any yield ramp issues on that process thus far?

您使用該技術取得了哪些成功？到目前為止，您在過程中遇到任何產量提升問題嗎？

I think we have around 14 products being ramped up in production.

我認為我們大約有 14 種產品正在投入生產。

But would you say that relative to prior processes, are yields coming up at a similar level? Are they coming up faster? Are they coming up slower?

但您是否會說，相對於先前的工藝，產量是否會達到相似的水平？他們來得更快嗎？他們來得慢嗎？

Seeing a similar level.

看到類似的水平。

So you are generally not seeing any problems with that process right now?

那麼您現在通常沒有發現該過程有任何問題嗎？

No. We are still improving the process as we speak.

不。截至目前，我們仍在改善流程。

Okay, thanks.

好的謝謝。

Bhavin Shah of J.P. Morgan.

摩根大通 (J.P. Morgan) 的巴文‧沙阿 (Bhavin Shah)。

I have a couple of questions. I believe -- well let me just start, UMCi investment loss -- will that be booked at a nonoperating level in the first quarter '05?

我有一些問題。我相信——好吧，讓我開始吧，UMCi 投資損失——會在 05 年第一季按非營運水平記入嗎？

Yes.

是的。

In order to have a nonoperating breakeven, I presume you have some additional disposal gains?

為了實現非經營性損益平衡，我想您還有一些額外的處置收益？

Yes.

是的。

All right.

好的。

You need to speak a little bit louder.

你需要說話大聲一點。

Impacted of Article 35, you have (indiscernible) could you just update us on the goodwill amount for different entities and if or when you may have to take impairment charge?

受第 35 條的影響，您（音訊不清晰）能否向我們更新不同實體的商譽金額以及您是否或何時可能需要承擔減損費用？

I think we are according to test, book value processes fair value. Since we already test, but right now because already commercial (indiscernible) for this company and also right now beginning to turn positive (indiscernible) lot of money. So we will put it to a very careful test. Right now based on our content test it's not any impact in the number 35 in this case.

我認為我們是根據測試，帳面價值處理公允價值。因為我們已經進行了測試，但現在因為這家公司已經商業化（難以辨認），而且現在也開始轉向積極（難以辨認）大量資金。所以我們將對它進行非常仔細的測試。目前，根據我們的內容測試，在本例中，數字 35 沒有任何影響。

Okay. Now you will consolidate UMCi in second quarter. So does that mean in order to have an operating breakeven in second quarter you need to have significantly higher utilization in the second quarter, let's say maybe at least 5 to 6 percent higher because the cost of goods sold will go up by maybe 1.5 billion plus in second quarter because of UMCi being consolidated?

好的。現在您將在第二季整合 UMCi。那麼，這是否意味著，為了在第二季度實現營運盈虧平衡，您需要在第二季度大幅提高利用率，比如說至少提高 5% 到 6%，因為銷售商品的成本可能會增加 15 億美元以上第二季是因為UMCi 被整合？

Yes, you are correct.

是的，你是對的。

When we talk about drop in first quarter are you referring to volume drop or operating profit drop? Can you elaborate? I think you mentioned that business would drop in first quarter at the local conference.

當我們談論第一季的下降時，您指的是銷量下降還是營業利潤下降？能詳細說明一下嗎？我想你在當地會議上提到第一季業務會下降。

That is pretty much shown in the guideline from the wafer shipment ASP standpoint. It has already (indiscernible) close to there.

從晶圓出貨平均售價的角度來看，這一點在指南中得到了充分體現。它已經（難以辨認）接近那裡了。

So from wafer shipment standpoint, you feel that the (indiscernible) business has dropped in first quarter?

那麼從晶圓出貨量的角度來看，您是否覺得第一季（難以辨別的）業務有所下降？

Yes, we mentioned about a 17 percent decrease in wafer shipment and 10 percent decrease in the ASP.

是的，我們提到晶圓出貨量下降了 17%，平均售價下降了 10%。

Okay, thank you.

好的謝謝。

Matt Gable of Calypso (ph) Capital.

Calypso (ph) Capital 的 Matt Gable。

Thank you. I was wondering if there is any guidance for Q1 gross margin and 0.18 as a percent of revenue? Then I have a follow-up.

謝謝。我想知道第一季毛利率和 0.18 佔收入的百分比是否有任何指導？然後我有一個後續行動。

As usual we do not provide guideline for the margin and bottom-line at this point. For breakeven point, is what we just disclosed. What was your second question?

像往常一樣，我們目前不提供利潤和底線的指導。對於損益平衡點，我們剛剛揭露了這一點。你的第二個問題是什麼？

What do you think 0.18 will be as a percent of revenue in Q1? What will be the incremental change?

您認為 0.18 佔第一季營收的百分比是多少？增量變化會是什麼？

0.18 micron is below revenue. It is the (indiscernible) quarter-to-quarter unchanged.

0.18 微米低於收入。這是（難以辨別的）季度與季度之間的變化。

Okay. Follow-up question. What is happening with wafer starts loading right now? Is it downtrending still? Has it stabilized, is it starting to inflect upwards?

好的。後續問題。晶圓現在開始裝載發生了什麼事？還在下降趨勢嗎？它已經穩定下來了嗎？是否開始向上彎曲？

We see if it goes down in January and February as a slow month due to annual maintenance and as I mentioned earlier, we start to see the demand to increase in March.

讓我們看看一月和二月是否會因為年度維護而下降，這是一個緩慢的月份，正如我之前提到的，我們開始看到三月的需求增加。

Okay. Lastly, any input on what you think 2005 wafer demand will be or semi demand in total, globally, will be?

好的。最後，您對 2005 年全球晶圓需求或半成品需求總量有何看法？

Global for the whole world? For the whole semiconductor industry?

面向全世界的全球性？對於整個半導體產業？

Sure.

當然。

It is hard for us to predict, but based on the market research that we watched there are all kinds of predictions ranging from flat to negative 5 percent.

我們很難預測，但根據我們觀察到的市場研究，有各種各樣的預測，從持平到負 5%。

Okay. Good enough. I appreciate it.

好的。夠好了。我很感激。

Sunil Gupta of Morgan Stanley.

摩根士丹利的蘇尼爾古普塔。

Thank you. I had a couple of follow-up questions to some of the things you said earlier, particularly on capacity. When you said your capacity would increase by 25 percent year-on-year, is that the year end capacity or is it for the full year capacity?

謝謝。對於您之前所說的一些事情，我有幾個後續問題，特別是關於容量的問題。你們說的產能年增25%，是年末產能還是全年產能？

Full year.

全年。

So this is full year versus 2005 versus full year 2004, not end of '05 versus end of '04.

因此，這是全年與 2005 年與 2004 年全年的比較，而不是 05 年末與 04 年末的比較。

That is correct.

那是對的。

My second question is in terms of your nonwafer revenue in Q4, how much was your nonwafer revenue?

我的第二個問題是，就您第四季的非晶圓收入而言，您的非晶圓收入是多少？

The general guideline is always around 5 percent. It's no different for 4Q. It might be up or down by 1 percent. I don't have the exact number with me, but it should be around 5 percent.

一般指導方針始終在 5% 左右。4Q 也不例外。它可能會上升或下降 1%。我沒有具體數字，但應該在 5% 左右。

Okay. And you mentioned your capacity utilization in Q1 is likely to be 60 percent. I think in your earlier call this afternoon you mentioned about 7 percent of the capacity may not be available in Q1 because of maintenance and fewer number of days. So this 60 percent utilization, is it based on your installed capacity or available capacity?

好的。您提到第一季的產能利用率可能為 60%。我想您在今天下午早些時候的電話中提到，由於維護和天數減少，第一季大約 7% 的產能可能無法使用。那麼這個60%的利用率，是基於你的裝置容量還是可用容量？

Available.

可用的。

60 percent of what’s available?

60% 的內容可用嗎？

Yes.

是的。

Okay. My final question is, what percent of revenue comes from (indiscernible) drivers?

好的。我的最後一個問題是，收入的百分之多少來自（難以辨認的）司機？

We don't have that number on top of our head. Probably, wild guess, is between 10 to 15 percent.

我們腦子裡沒有這個數字。大膽猜測，可能在 10% 到 15% 之間。

Okay. All right. Thank you.

好的。好的。謝謝。

Pranab Sarmah of Daiwa Securities.

大和證券的普拉納布·薩爾瑪 (Pranab Sarmah)。

Good afternoon. This is Pranab from Daiwa. I have a couple questions. The first one is basically on your fourth quarter operating performance. If I see your earlier guidance you have virtually guided that operating margins will be down about 10 percentage point from third quarter, but it looks like it was down about 15 percentage points from the third quarter, whereas your ASP and shipment guidances were on line. Could you just explain why 5 percent deviations came from quarter – the perameters?

午安.我是來自大和的普拉納布。我有幾個問題。第一個基本上是關於第四季的經營業績。如果我看到你們之前的指導，你們實際上已經指導營業利潤率將比第三季度下降約10 個百分點，但看起來比第三季度下降了約15 個百分點，而你們的平均售價和出貨量指導是在線的。您能否解釋一下為什麼 5% 的偏差來自季度（參數）？

Mostly because of the higher-than-expected operating expenses, mostly in the 65nm and some 90nm R&D. Since the wafer loading is lower, the R&D department has become more aggressive in running test wafers. The second part is more related to the onetime IP acquisition of the sales and marketing expenses. And if you go back to the guidance, it's actually -- on the gross margin level, it is about 10 percent, 10 percentage points down. So that is no difference there. The only difference is the higher-than-expected operating expenses.

主要是因為營運費用高於預期，主要是65奈米和部分90奈米研發。由於晶圓負載較低，研發部門在運行測試晶圓方面變得更加積極。第二部分則更多涉及一次性智慧財產權收購的銷售和行銷費用。如果你回到指導，實際上，毛利率水準下降了大約 10%、10 個百分點。所以這沒有區別。唯一的區別是營運費用高於預期。

Given your G&A expenses has gone up, any particular reason on that?

鑑於您的一般管理費用增加，有什麼特殊原因嗎？

Mostly related to the performance bonus we paid in Q4 of last year, as well increasing headcount. So in related to that, for the Q1 operating expenses which were back to a normal level similar to that in the quarter 3 of 2004.

主要與我們去年第四季支付的績效獎金以及增加的員工人數有關。與此相關的是，第一季的營運費用回到了與 2004 年第三季類似的正常水準。

Could you let us know your strategy to fill up your 0.18 and 0.25-micron capacity? Second part is your performance at UMCi seems to be not very good at this point and what are the strategies you are taking to fill up the capacity at UMCi as well?

您能否告訴我們您填補 0.18 和 0.25 微米產能的策略？第二部分是您在 UMCi 的表現目前似乎不太好，您正在採取什麼策略來填補 UMCi 的容量？

We see pressure 0.18 -- 0.25 micron and 0.18 micron process technology, so by lowering the price, hopefully that can stimulate the demand. You asked about a strategy.

我們看到0.18-0.25微米和0.18微米製程技術面臨壓力，因此透過降低價格，希望能夠刺激需求。你問的是策略。

But would you lower the price to your competition level, the competitor in China, whatever the prices they are offering? Are you in the position to operate similar type of prices or you will try to, if you can let us know the pricing strategy?

但是，無論他們提供什麼價格，您是否會將價格降低到您的競爭對手（中國的競爭對手）的水平？如果您能讓我們知道定價策略，您是否能夠操作類似類型的價格？或者您會嘗試這樣做嗎？

It is actually depending on the applications. So our product portfolio or custom portfolio may not be exactly the same as our competitor.

這實際上取決於應用程式。因此，我們的產品組合或客製化組合可能與我們的競爭對手不完全相同。

How about the UMCi because that is advanced process technology?

UMCi 怎麼樣，因為它是先進的製程技術？

UMCi advanced process technology, because we expanded aggressively last year, so the utilization rate may not be as great as we expected. But also mentioned, this is an investment and it will be needed for advanced process technology for 0.13, 90nm or even 65nm moving forward. So as the demand picks up then we will be able to utilize those capacities and that is our strategy.

UMCi先進的製程技術，因為我們去年積極擴張，所以利用率可能沒有我們預期的那麼高。但也要提到，這是一項投資，未來 0.13、90nm 甚至 65nm 的先進製程技術都需要它。因此，隨著需求的增加，我們將能夠利用這些能力，這就是我們的策略。

Now when you expand that capacity in 2005 would you put more capacity at 12A or UMCi (indiscernible)?

現在，當您在 2005 年擴大容量時，您會增加 12A 容量還是 UMCi 容量（聽不清楚）？

We will look at both of them together to see -- to achieve the maximum efficiency and the benefits. Also as an issue of product mix at each fab?

我們將把它們放在一起看看——以實現最大的效率和收益。也是每個晶圓廠的產品組合問題嗎？

Your guidance of R&D expenses in 2005? Should it increase?

2005年研發費用指導情形如何？應該增加嗎？

In terms of amount, it probably stays the same as 2004.

從金額來看，可能與2004年持平。

And any thought on cash dividend?

關於現金股利有什麼想法嗎？

We are not going to comment on this issue until our upcoming Board meeting in June.

在六月召開的董事會會議之前，我們不會對此問題發表評論。

Thank you very much.

非常感謝。

Shailesh Jaitly of Nomura Securities.

野村證券的 Shailesh Jaitly。

Firstly, on the capacity you mentioned it will be about 25 percent increase for the CapEx of about 1.5 billion. What would be a capacity increase at the lower end for 1 billion?

首先，就你提到的產能而言，大約15億美元的資本支出將增加25%左右。10 億的低端容量增加是多少？

At the lower end? Are you referring to mature process technology?

在低端？您指的是成熟的工藝技術嗎？

You mentioned that if you were to spend about 1.5 billion your year end capacity could be reaching something like – it will amount about 25 percent year-on-year increase. Is that right or did I miss something there?

您提到，如果您花費約 15 億，您的年終產能可能會達到這樣的水平：年增約 25%。這是對的還是我錯過了什麼？

Yes, overall.

是的，總體而言。

Your CapEx guidance is 1 to 1.5 billion, so I was wondering if you were to spend 1 billion instead of 1.5, what would be the capacity increase?

你們的資本支出指引是 1 到 15 億，所以我想知道如果你們花費 10 億而不是 1.5，容量會增加多少？

The total amount of capacity increase?

新增容量總量是多少？

Yes.

是的。

We were asked that question and a good -- because the different equipment cost differently, right? A good way of estimating is use $3.6 billion for 40,000 wafers in advanced 12-inch fab, as a reference and you can divide that up and come up with an estimated capacity number.

我們被問到這個問題，而且很好——因為不同的設備成本不同，對嗎？一個好的估算方法是使用先進 12 吋晶圓廠 40,000 片晶圓的 36 億美元作為參考，您可以將其除以得出估算的產能數字。

What would be the capacity say by maybe that is end of second quarter, installed capacity?

第二季末的裝置容量是多少？

Quarter 2, we may have another 3 to 5 percent more capacity compared to Q1 and that is pretty much it, based upon the current order we have placed out.

第二季度，與第一季相比，我們的產能可能會再增加 3% 到 5%，根據我們目前發出的訂單，基本上就是這樣了。

So the total available capacity would increase by about 12 percent?

那麼總可用容量會增加約 12% 嗎？

3 to 5 percent in Q2, yes.

第二季成長 3% 到 5%，是的。

3 to 5 plus 7 percent which will come back because of the maintenance going away, right?

3 到 5 加上 7%，由於維護工作取消，這會回來，對嗎？

Right. The capacity table did not take out the maintenance capacity. That is on the installed base.

正確的。容量表中沒有取出維修容量。這是在已安裝的基礎上。

Okay. You mentioned revenue bottom in first quarter, would it be correct to assume that your utilization -- you're factoring that utilization will bottom sometime in the second quarter?

好的。您提到第一季的收入觸底，假設您的利用率是否正確 - 您考慮到利用率將在第二季的某個時候觸底？

We hope it would be higher.

我們希望它會更高。

You expect your utilization also will bottom out in the first quarter (indiscernible)?

您預計您的使用率也會在第一季觸底（音訊不清）？

We hope that is the case.

我們希望情況確實如此。

Okay. Finally, the capacity at UMCi, what would be the fully installed capacity say by the end of 2005 there?

好的。最後，UMCi 的容量，到 2005 年底，那裡的全部裝置容量是多少？

It would be around 15,000 by end of Q2, and that is a current plan. It really depends on how we see the second half to determine the year end capacity.

到第二季末，數量將達到 15,000 左右，這是目前的計劃。這實際上取決於我們如何看待下半年來確定年終產能。

Again, as I mentioned earlier that we have to look at the combined capacity at the 12A and UMCi together depending on customer demand due to a product mix issue there.

再次，正如我之前提到的，由於產品組合問題，我們必須根據客戶需求一起考慮 12A 和 UMCi 的綜合容量。

Based in your equipment ordering pattern, is it possible that you'll maintain at 15K itself in the second half? Do you have that flexibility?

按照你們的設備訂購模式，下半年有可能維持在15K嗎？你有這樣的彈性嗎？

Yes, we do have the flexibility.

是的，我們確實有彈性。

Within the communication segment, if you could provide the breakdown between wireless and wireline and also as to how you see the outlook going forward in the second quarter?

在通訊領域，您是否可以提供無線和有線之間的細分，以及您如何看待第二季的前景？

Typically we have a mix of about one-third from wireline and two-thirds from wireless.

通常，我們大約有三分之一來自有線，三分之二來自無線。

Okay. How are the two sectors panning out for you?

好的。這兩個行業對您來說進展如何？

Looks quite reasonable.

看起來很有道理。

Are you seeing more growth in one sector as compared to the others?

與其他行業相比，您是否認為某個行業的成長速度更快？

Right now, the wireline is a little slower.

現在，有線速度有點慢。

Okay. Just one final clarification. You earlier mentioned some number about LCD driver as a percentage of total. If you could repeat that; I missed that.

好的。最後澄清一點。您之前提到過有關 LCD 驅動器的一些數字佔總數的百分比。如果你能重複一遍的話；我錯過了。

We guess it would be around 10 to 15 percent, and that is the number that we have in our mind at this point.

我們猜測大約是 10% 到 15%，這就是我們目前想到的數字。

Okay. Finally, what are the ASP pressures you're seeing just in that segment, that is 0.25, 0.35 micron which is going for the display products?

好的。最後，您在該細分市場（即用於顯示產品的 0.25、0.35 微米）中看到的平均售價壓力為何？

It's high and it contributes a lot to the 10 percent wafer price drop for this quarter.

它很高，對本季度晶圓價格下降 10% 做出了很大貢獻。

Would it be in excess of 20 percent?

會不會超過20%？

I would not comment on that because it may be different from different customers.

我不會對此發表評論，因為不同的客戶可能會有所不同。

Okay, thank you.

好的謝謝。

Ivan Goh of DRKW.

DRKW 的 Ivan Goh。

Good evening. A couple of questions. Firstly on the ASP decline in the first quarter, it seems as if your product mix is fairly stable sequentially. Is the 10 percent ASP decline in the first quarter all attributable to just pricing declines in each and every individual node?

晚安.有幾個問題。首先，第一季平均售價下降，看來你們的產品組合較上季相當穩定。第一季 ASP 下降 10% 是否全部歸因於每個單獨節點的定價下降？

Mainly from pricing a decrease.

主要來自定價下降。

You did mention that is focusing mainly on the 0.18 to 2.25 micron area?

您確實提到主要關注 0.18 至 2.25 微米區域？

Actually we see more pressure on 0.35 micron and 0.25 micron which is typically the case. You start to see more pressure at lower end.

實際上，我們在 0.35 微米和 0.25 微米上看到了更大的壓力，這是典型的情況。你開始在低端看到更大的壓力。

Okay. I want to ask a bit about the CapEx, some questions on CapEx. Firstly, what is the CapEx we can expect in Q1 and Q2 of this year?

好的。我想問一些關於資本支出的問題，一些關於資本支出的問題。首先，我們預計今年第一季和第二季的資本支出是多少？

We mentioned earlier, I think there is 3.5 percent of the increase from Q4 to Q1 and there's 3.5 percent from Q2 to Q1.

我們之前提到，我認為從第四季到第一季成長了 3.5%，從第二季到第一季成長了 3.5%。

What is the dollar amount I should put in my spreadsheet for CapEx in Q1 and Q2?

我應該在電子表格中輸入第一季和第二季資本支出的金額是多少？

The payment schedule may not be totally 100 percent aligned with capacity or equipment install schedule. So for example, we did some advanced payment in Q4 of last year. Most of the equipment delivery is going to be happening Q1 and Q2 for 2005 so far for the equipment we have ordered, but the payment will have to wait until we have certified those equipment.

付款時間表可能不完全與產能或設備安裝時間表 100% 一致。例如，我們在去年第四季進行了一些預付款。到目前為止，我們訂購的設備的大部分設備交付將在 2005 年第一季和第二季進行，但付款必須等到我們對這些設備進行認證之後。

Okay. You mentioned earlier that you are seeing some signs of recovery in March; demand is picking up. Can you perhaps talk a bit about that increase that you're seeing in March. In which particular segment are you seeing increases, whether it be communications, consumer, PC area? Perhaps maybe you could also talk about whether that increase is in 90nm, 130 nm, 0.25 micron, or any kind of -- some kind of details would be most helpful.

好的。您之前提到，您在三月看到了一些復甦的跡象；需求正在回升。您能否談談您在三月看到的成長情況？您認為哪個特定領域出現成長，是通訊、消費還是個人電腦領域？也許您也可以討論這種增加是在 90 奈米、130 奈米、0.25 微米還是任何類型——某種細節會最有幫助。

In terms of technology nodes, we see the pickup at the two ends of the technology spectrum. At the low end for 0.35 micron, 0.25 micron and at the high end of the technology nodes, such as 90nm. In terms of application, the profile is pretty much the same as Q4 of 2004.

就技術節點而言，我們看到技術光譜的兩端都有所提升。低端為0.35微米、0.25微米，高階為90奈米等技術節點。在應用方面，概況與 2004 年第四季幾乎相同。

Okay. So the pickup is across all applications, in other words?

好的。換句話說，那麼拾音器適用於所有應用程式？

I would not say so. As I mentioned, the wireline is a little slower, and IC's for display panel is strong.

我不會這麼說。正如我所提到的，有線傳輸速度稍慢，而顯示面板的 IC 功能強大。

Okay, that's very helpful. One question on the capacity of Fab 12A. You mentioned earlier that UMCi would probably be about 15,000 wafers per month by the second quarter. What will it be for Fab 12A?

好的，這非常有幫助。關於Fab 12A產能的一個問題。您之前提到，到第二季度，UMCi 的月產量可能約為 15,000 片晶圓。Fab 12A 會怎麼樣？

12A will probably be at 25,000 or -- yes, around 25,000.

12A 可能會是 25,000 或——是的，大約 25,000。

Okay. I have a last question. I have two more questions. Firstly on UMCi, what is the kind of estimated losses you would book for UMCi in the first quarter?

好的。我還有最後一個問題。我還有兩個問題。首先，關於UMCi，您預計UMCi第一季的虧損是多少？

In the first quarter?

第一季？

Very high demand, Q4 last year.

去年第四季的需求非常高。

Last question is regarding your FX. You booked quite a substantial ForEx item in your non-operating item -- non-operating line item in Q4. I just want to find out if there has been any substantial change in the way that you hedge your currencies in the fourth quarter? Or is there any intention to change the way you hedge your currencies going forward?

最後一個問題是關於您的外匯。您在第四季的非經營項目（非經營行項目）中預訂了相當多的外匯項目。我只是想知道第四季你們對沖貨幣的方式有沒有什麼實質的改變？還是打算改變您未來對沖貨幣的方式？

I think because in the last year of Q4, NT$ appreciated very sharply because we have a lot of U.S. exposure (indiscernible). I think next year I think the other (indiscernible) maybe is quite stable compared to last year, fourth quarter.

我認為是因為在第四季的最後一年，新台幣升值非常快，因為我​​們有很多美國曝險（難以辨別）。我認為明年我認為其他（難以辨別）與去年第四季相比可能相當穩定。

In other words there will be no change in the way you hedge your currencies?

換句話說，您對沖貨幣的方式不會改變？

Yes.

是的。

I want to thank you very much for your time.

我非常感謝您抽出時間。

Ashis Kumar of Credit Suisse First Boston.

瑞士信貸第一波士頓公司的阿希斯‧庫馬爾 (Ashis Kumar)。

Thank you. Would it be fair to say that particularly when utilization rates sort of trend down as it has for the industry, that is the time when customers obviously come and ask for price discount. So the quarter when utilization rates starts to pickup, a lot of discounted wafers start to go in. Would it then be fair to conclude that second quarter might see increasing wafer shipments, but on a like-to-like basis on bottom line basis that is, we'll see ASP decline quarter-over-quarter compared to 1Q?

謝謝。公平地說，特別是當利用率像該行業一樣呈下降趨勢時，客戶顯然會來要求價格折扣。因此，當利用率開始回升的季度，大量打折的晶圓開始進入。那麼，是否可以得出這樣的結論：第二季度晶圓出貨量可能會增加，但在淨利潤基礎上進行比較，也就是說，與第一季相比，我們會看到平均售價逐季下降？

Well since we have a mix of low end mature technology as well as high-end advanced process technology. It depends on which size ramps up more quickly, so the overall effect could be different. It is hard for me to give you a straight answer, honestly.

因為我們擁有低端成熟技術和高端先進製程技術的結合。這取決於哪個尺寸增加得更快，因此整體效果可能會有所不同。老實說，我很難給你一個直接的答案。

Yes, but however if I were to just look at each (indiscernible) you said that mix could change. But on an each-and-or basis the second quarter wafers would perhaps be at a lower price than the 1Q wafer?

是的，但是如果我只看每一個（難以辨認），你說混合可能會改變。但如果綜合考慮，第二季晶圓的價格可能會低於第一季晶圓的價格？

Look at it this way. For example, for each selected node we choose to lower the price and it may stimulate the overall demand. Then that effect could be much higher revenue and also it improves the cost structure as well.

這麼看吧。例如，對於每個選定的節點，我們選擇降低價格，這可能會刺激整體需求。那麼這種效應可能會帶來更高的收入，同時也改善了成本結構。

Sure. In terms of – you know, in replying to one of the earlier questions, you said that clearly you hope that the utilization rate picks up in second quarter. But when you said that you assumed first quarter utilization rate to be 60 percent or 53 percent, that is on full capacity or available capacity?

當然。就您所知，在回答之前的問題時，您明確表示希望第二季度利用率上升。但是，當您說假設第一季利用率為 60% 或 53% 時，這是指滿載還是可用產能？

60 percent on the available capacity.

可用容量的 60%。

And even when you said you expect utilization rate to improve you meant you think it could be higher than 60 percent?

即使您說預計利用率會提高，您的意思是您認為利用率可能會高於 60%？

Well, we certainly hope so.

嗯，我們當然希望如此。

This is on top of the capacity addition of over 3 to 4 percent?

這是在產能增加超過 3% 到 4% 的基礎上？

We hope so, yes.

我們希望如此，是的。

How is it the utilization rate at the 12-inch fabs compared to the Company average?

12吋晶圓廠的利用率與公司平均相比如何？

At 12A is above average and 12-I is below average.

12A 高於平均水平，12-I 低於平均水平。

12A is above average you say?

你說12A高於平均？

Yes.

是的。

And UMCi would be?

那麼UMCi 會是什麼呢？

It's below average.

它低於平均水平。

Okay, thank you very much.

好的，非常感謝。

Donald Lu of Goldman Sachs.

高盛的唐納德·盧。

Just want to ask your comment for the recent settlement between TSMC and SMIC on their cross-license agreement. Do you think that will have any long-term or near-term impact to your business?

只是想詢問您對台積電和中芯國際最近就交叉許可協議達成的和解有何評論。您認為這會對您的業務產生長期或短期影響嗎？

We cannot comment on other company's lawsuits, and we have always been a believer of fair competition and we always protect our own intellectual property fiercely.

我們無法對其他公司的訴訟發表評論，我們一直是公平競爭的信徒，我們始終強烈保護自己的智慧財產權。

Okay. In that case I will ask another question. In terms of depreciation, what is the trend on the quarterly basis in '05? Will that increase gradually or will that be flat?

好的。在這種情況下我會問另一個問題。就折舊而言，05年按季度計算的趨勢如何？會逐漸增加還是持平？

After UMCi becomes fully consolidated in Q2, it will be a higher increase. After that, it slowly increases in Q3 and Q4.

當UMCi在第二季完全整合後，將會有更高的成長。之後，在第三季和第四季緩慢增加。

Okay, great. Thank you.

好的，太好了。謝謝。

Mark FitzGerald of Bank of America.

美國銀行的馬克·菲茨杰拉德。

Thank you. I'm curious if there is any plans to shut down capacity in 2005?

謝謝。我想知道2005年有沒有打算關閉產能？

We don't have that plan at all.

我們根本沒有這個計劃。

Okay. Second question is, on your CapEx budget here, what are you looking for in terms of road markers if you were to adjust this? Is this based on customers moving to 90nm or is it based on your own utilization rates' recovery?

好的。第二個問題是，就您的資本支出預算而言，如果您要對此進行調整，您在路標方面會尋找什麼？這是基於客戶轉向90nm還是基於您自己的利用率恢復？

It is pretty much based on the customers' demand on that advanced process technology.

這很大程度上是基於客戶對先進製程技術的需求。

Is there any risk that some of the customers won't move ahead as aggressively as they are planning at this point? Is that your concern?

是否存在某些客戶不會像他們目前計劃的那樣積極推進的風險？這是你關心的問題嗎？

There is always concern there and that is why the new CapEx, 1 billion to 1.5 billion, will be made based on the customers' demand.

人們總是擔心這一點，這就是為什麼新的資本支出（10 億至 15 億）將根據客戶的需求進行。

Okay. Thank you.

好的。謝謝。

Bhavin Shah of J.P. Morgan.

摩根大通 (J.P. Morgan) 的巴文‧沙阿 (Bhavin Shah)。

Just a follow-up. You mentioned R&D will be flat year-on-year. What about SG&A please?

只是後續行動。您提到研發將與去年同期持平。請問SG&A 怎麼樣？

Probably also flat. Flat means in terms of dollar amount.

大概也是平的。扁平意味著以美元金額計算。

Understood. Thank you.

明白了。謝謝。

Gavin Duffy of A.G. Edwards.

A.G.愛德華茲的加文·達菲。

I just had a couple of quick questions. First of all, it looks like -- am I correct in this? ASPs actually increased in Q4 over Q3?

我只是有幾個簡單的問題。首先，看起來──我的說法正確嗎？第四季的平均售價實際上比第三季增加？

Q4 over Q3, the ASP was essentially flat in dollar terms.

與第三季相比，第四季的平均售價以美元計算基本持平。

Okay. Second question I had, everyone knows there is an inventory issue across the board here. Do you think that when you're looking at your customers that the majority will be cleared by the end of Q1 or do you think it will probably take into some of Q2, as well?

好的。我的第二個問題，每個人都知道這裡有全面的庫存問題。您是否認為，當您審視您的客戶時，大多數客戶將在第一季末完成清算，還是您認為第二季的部分客戶也可能會完成清算？

It just depends. As I reported earlier, the inventory level for different applications and for each individual customer varies. It is hard to just use one sentence to describe every application's inventory level.

這只是取決於。正如我之前所報導的，不同應用程式和每個客戶的庫存水準各不相同。很難用一句話來描述每個應用程式的庫存水準。

That is a good point. Can you do any generalities. Obviously there is probably more inventory in wireline than wireless. Would it also be fair to say there was more inventory in some of the consumer electronics applications?

這是一個好點。你能做一些概括嗎？顯然，有線的庫存可能比無線的還要多。可以公平地說，某些消費性電子應用領域的庫存更多嗎？

Yes, I think wireline has more inventory. Consumer products, it depends which product that you're talking about and also depending on the customer. Sometimes even for one type of product, the different customer has better -- has different inventory level.

是的，我認為有線有更多的庫存。消費品，這取決於您談論的是哪種產品，也取決於客戶。有時，即使對於一種類型的產品，不同的客戶也有更好的——有不同的庫存水平。

Sure. Okay. Earlier when you were talking about the equipment purchases this year, what is a typical time frame from when you actually receive the equipment initially until certification? Is that usually like a 3, 4 month type of a process?

當然。好的。早些時候，當您談論今年的設備採購時，從您最初實際收到設備到獲得認證的典型時間範圍是多長？這通常是一個為期 3、4 個月的過程嗎？

That is a reasonable estimate.

這是一個合理的估計。

Okay, thank you very much.

好的，非常感謝。

Pranab Sarmah of Daiwa Securities.

大和證券的普拉納布·薩爾瑪 (Pranab Sarmah)。

A quick follow-up. What percentage of your capacity will be able to handle 90nm by middle of the year and 130nm by middle of the year?

快速跟進。到今年年中，你們的產能將能夠處理 90 奈米和 130 奈米的產能比例是多少？

I think overall speaking, the capacity that can handle 0.13 micron and 90nm and the smaller geometries, is around one-third of our overall capacity by year end.

我認為總體而言，到年底，能夠處理0.13微米和90奈米以及更小幾何尺寸的產能大約占我們總產能的三分之一。

By year end of 2005?

到2005年底？

2005, right.

2005年，對。

What is available now with you currently in the first quarter?

第一季您目前可以提供什麼？

About 22 percent.

大約22%。

22 percent. All this capacity can be used for 90nm as well?

22%。這些容量也可以用於90nm嗎？

That is not the case actually. For 90nm — 90nm requires some special equipment.

實際情況並非如此。對於 90nm——90nm 需要一些特殊的設備。

Assume that 50 percent should be on 90nm?

假設 50% 應該在 90nm 上？

Slightly less than 50 percent for 90nm.

90nm 略低於 50%。

What is your view on the foundry industry in 2005? Do you see a growth in the foundry industry in 2005? And if so, do you think you will be able to maintain your marketshare?

您對2005年的鑄造業有何看法？您認為2005年鑄造業有成長嗎？如果是這樣，您認為您能夠保持市場份額嗎？

Regarding the overall market, it's a billion dollar question. First of all, people ask how much is the growth for the entire semiconductor industry this year, right. Nobody knows for sure what will be the number. But we believe the core foundries -- definitely foundry will grow faster and our marketshare will definitely continue to increase.

就整個市場而言，這是一個價值十億美元的問題。首先大家問今年整個半導體產業的成長是多少，對吧。沒有人確切知道具體數字是多少。但我們相信核心代工廠——肯定代工廠會成長得更快，我們的市佔率肯定會繼續增加。

Okay, thank you very much.

好的，非常感謝。

Michael McConnell of Pacific Crest Securities.

Pacific Crest 證券公司的 Michael McConnell。

Just a quick follow-up. I just wanted to make sure I got my notes down right here. Capacity you're expecting, you've already given that for Q1. It's going to be up about 3 to 4 percent. You said in Q2 it should be up another 3 to 4 percent. And then Q3, did you give any indication there what the ramp is going to be there?

只是快速跟進。我只是想確保我的筆記就在這裡。您所期望的容量，您已經給出了第一季的容量。它將上漲約 3% 至 4%。你說第二季應該會再成長 3% 到 4%。Q3，你有沒有給任何指示，坡道將會在那裡？

No, we didn't. We said that further expansion will depend on the market demand.

不，我們沒有。我們說進一步擴張將取決於市場需求。

So we're pretty much locked for Q1 and Q2, and then the back half of the year is going to depend on your forecast.

因此，我們幾乎鎖定了第一季和第二季度，然後下半年將取決於您的預測。

That's correct.

這是正確的。

Looking at March, the month of March, you had commented that demand at least has picked up from various customers. So your cycle times right now are still roughly 6 to 8 weeks? And that is, again, the fab cycle times, not Q times?

看看三月份，您曾評論說，至少各個客戶的需求有所回升。那麼您現在的周期時間仍然大約是 6 到 8 週？這又是晶圓廠週期時間，而不是 Q 時間？

For your information, usually when the utilization of a fab decreases, the cycle time also decreases, cycle times improves. It is not proper to quotes 5 or 6 weeks depending -- because different products have different number of mask steps. But right now the cycle time is better and that is across all the fabs.

供您參考，通常當晶圓廠的利用率下降時，週期時間也會減少，週期時間會縮短。根據情況引用 5 或 6 週是不合適的，因為不同的產品有不同數量的面膜步驟。但現在所有晶圓廠的週期時間都更好了。

I guess the question I'm trying to get to though for the month of March, from what to see in the forecast, how much of that is already locked in versus how much can be cancelled or pushed out from your customers?

我想我想在 3 月回答這個問題，從預測中看到的內容來看，其中有多少已經鎖定，有多少可以從客戶那裡取消或推出？

I think a significant portion of that order has been locked in.

我認為該訂單的很大一部分已經被鎖定。

Thank you.

謝謝。

But not 100 percent yet.

但還沒達到 100%。

Fayad Abbasi at Prudential.

保誠集團的法耶德‧阿巴西 (Fayad Abbasi)。

I had a couple of questions. One, I don't know if you gave a depreciation amortization guidance for the year, but if you could provide that. Also, as you had mentioned just under 50 designs that you are doing at 90nm, could you perhaps give a split on how those are allocated to Fab 12A versus UMCi? I just want to get a sense of, as we ramp up your 90nm capacity over the first half of this year, where is the production predominately going to becoming from? Will there be 12A or UMCi?

我有幾個問題。第一，我不知道您是否給出了當年的折舊攤銷指導，但您是否可以提供。另外，正如您所提到的，您正在 90nm 上進行的設計不到 50 種，您能否將這些設計分別分配給 Fab 12A 和 UMCi？我只是想了解一下，當我們在今年上半年提高你們的 90 奈米產能時，生產主要來自哪裡？會有 12A 或 UMCi 嗎？

As you can notice, 12A has more capacity than 12I, therefore the number of products that will be picked out at 12A definitely will be higher than that in 12I.

可以看到，12A的容量比12I大，因此12A的產品挑選數量肯定會比12I的產品多。

Could you give like an approximate split?

你能給出一個大概的分割嗎？

Yes. It's about 2 to 1, right?

是的。大約是2比1吧？

Okay. Also D&A guidance for the year?

好的。還有今年的 D&A 指導嗎？

It's flat.

它是平的。

Okay, thanks.

好的謝謝。

Operator, we are ready to take the last question.

接線員，我們準備好回答最後一個問題了。

Timothy Arcuri of Smith Barney.

史密斯·巴尼 (Smith Barney) 的蒂莫西·阿庫裡 (Timothy Arcuri)。

Thanks. You're talking about ramping capacity in 2005 by about 25 percent year-over-year and you're talking about taking capacity up 2 to 4 percent in both Q1 and Q2. I guess my question is, what is the threshold of pain sitting at 60 percent utilization here today. What is the threshold of pain for you to spend at the low end of the budget versus at the high-end of the budget? So in other words, is it literally -- does it come down to capacity utilization that if it improves in the back half of '05 you'll spend at the high-end or what is your decision-tree there?

謝謝。您談論的是 2005 年產能年增約 25%，您談論的是第一季和第二季的產能成長 2% 至 4%。我想我的問題是，今天使用率達到 60% 時，疼痛閾值是多少。與預算高端相比，您在預算低端支出的痛苦閾值是多少？換句話說，這是否真的取決於容量利用率，如果它在 05 年下半年有所改善，您將在高端進行支出，或者您的決策樹是什麼？

The decision-tree actually is fairly easy. The new budget for the 1 billion to 1.5 billion is very flexible for us. We review the demand situation on a monthly basis and make our equipment offer decisions, order decisions.

決策樹其實相當簡單。新的10億到15億的預算對我們來說非常靈活。我們每月審查需求情況並做出我們的設備報價決策、訂單決策。

I guess maybe to ask a different way, how much -- this is probably tough to answer, but how much of the spending is technology-related versus capacity-related?

我想也許可以用不同的方式問，多少錢——這可能很難回答，但有多少支出是與技術相關的，而不是與容量相關的？

It is customer readiness related. Customer design new products and when they are ready to go into production, we have to look at that status. And of course we look at the process readiness for production as well and since we already have customer products in production that gives us a good reference information.

這是與客戶準備情況相關的。客戶設計新產品，當它們準備投入生產時，我們必須查看其狀態。當然，我們也會考慮生產的流程準備情況，因為我們已經有正在生產的客戶產品，這為我們提供了很好的參考資訊。

So you could say that it is all kind of technology-related and it is kind of things that you have to do to support your customers versus going out and just slightly adding capacity?

所以你可以說這一切都與技術有關，是你必須做的事情來支持你的客戶，而不是走出去，只是稍微增加容量？

That is correct and fair to say. But when you say it’s technology-related is not only UMC technology-related, it is also related to customers readiness.

這是正確且公平的說法。但當你說與技術相關時，不僅與聯華電子技術相關，還與客戶準備程度相關。

Sure. Thanks.

當然。謝謝。

Thank you sir. Ladies and gentlemen, this does conclude the question-and-answer portion of your call today. I would like to turn it back to the management team for any closing remarks.

謝謝你，先生。女士們、先生們，今天電話的問答部分到此結束。我想將其轉回管理團隊以供結束語。

We thank everyone to come to this conference, and again Happy New Year, Happy Chinese New Year to you. See you next time.

感謝大家蒞臨本次會議，再次祝大家新年快樂，新春快樂。下次見。

Ladies and gentlemen, thank you your participation in today's conference. This does conclude your presentation and you may now disconnect. Have a wonderful day.

女士們、先生們，感謝你們參加今天的會議。您的演示就此結束，您現在可以斷開連接。祝你有美好的一天。