聯華電子 (UMC) 2005 Q1 法說會逐字稿

I would like to welcome everyone to UMC's first quarter 2005 earnings conference call. [OPERATOR INSTRUCTIONS] I would like to introduce Mr. Chitung Liou Finance Director of UMC.

我謹歡迎大家參加聯華電子 2005 年第一季財報電話會議。 [操作員說明] 我想介紹一下UMC 財務長Chitung Liou 先生。

Mr. Liu, you may begin your presentation.

劉先生，您可以開始您的演講了。

Good day, everyone.

今天是個好日子。

I would like to welcome every one of you to join UMC's first quarter 2005 conference call.

我歡迎大家參加聯華電子 2005 年第一季的電話會議。

I am Chitung Liu, Director of Finance at UMC and with me here are our CEO, Mr. Jackson Hu and CFO Mr. Stan Hung.

我是聯華電子財務總監劉啟東，與我在一起的有我們的執行長胡志明先生和財務長洪志剛先生。

Before we begin, please bear with me a minute while I read our Safe Harbor policy.

在我們開始之前，請耐心等待我閱讀我們的安全港政策。

Certain statements made during the course of our discussion today may constitute forward-looking statements that are based on management's current expectation and belief and are subject to a number of risks and uncertainties that could cause actual results to differ materially, including risks that may be beyond company's control.

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預期和信念，並受到許多風險和不確定性的影響，這些風險和不確定性可能導致實際結果出現重大差異，包括可能超出預期的風險和不確定性。公司的控制。

For this reason, please refer to UMC's filing with the security authorities in the U.S. and the ROC.

因此，請參閱聯華電子向美國和中華民國安全機構提交的文件。

It is my pleasure to turn over the presentation to Mr. Jackson Hu.

我很高興將演講交給胡志明先生。

Thank you Chitung.

謝謝吉東。

I would like to extend my greetings to everyone and thank you for joining us today.

我謹向大家致上問候，並感謝你們今天加入我們。

I will start by bringing you -- by giving you a brief overview of the quarter and highlight a few significant financial and business developments.

首先，我將向大家簡要概述本季度，並重點介紹一些重要的財務和業務發展。

Then I will talk briefly about our guidance and outlook for the second quarter and then we will finish up with a question and answer session.

然後我將簡要地談談我們對第二季度的指導和展望，然後我們將以問答環節結束。

Let me start with a summary of our operating results.

讓我先總結一下我們的經營績效。

By all measures, the first quarter was a challenging quarter for UMC.

從所有方面來看，第一季對聯華電子來說都是充滿挑戰的季度。

But a number of factors are coming together that lead us to believe that we have hit a charge in the cycle.

但許多因素綜合在一起，讓我們相信我們已經進入了週期的衝鋒階段。

We shipped 564,000 8-inch equivalent wafers, quarter over quarter revenue decreased 28.1% to NT$20.28 billion.

8吋等效晶圓出貨量為56.4萬片，營收季減28.1%至新台幣202.8億元。

Quarter over quarter operating income decreased by 89% to NT$302 million.

營業收入較上季下降 89%，至新台幣 3.02 億元。

Net income actually increased 14% to NT$1.52 billion mainly due to a fairly large increase in (INAUDIBLE-highly accented language) operating income that was driven by a net gain on the disposal of the investments.

淨利潤實際上增長了 14%，達到新台幣 15.2 億元，主要是由於處置投資的淨收益推動了營業收入（聽不清楚——重音）的大幅增長。

The blended average selling price decreased 12% which primarily was a result of a difficult sales mix.

混合平均售價下降了 12%，主要是由於銷售組合困難所致。

The challenging thing in the first quarter were mainly driven by the continued weakness in semiconductor market as our customers continue to adjust their inventory levels.

第一季的挑戰主要是由於我們的客戶不斷調整庫存水平，導致半導體市場持續疲軟。

This had a significant effect on most of the drop in revenues and our operating profitability.

這對收入和營業利潤的大部分下降產生了重大影響。

Since our expense are so highly driven by the fixed cost of operating capital intensive facts.

由於我們的開支很大程度上是由營運資本密集型事實的固定成本所驅動的。

In summary, while it was a difficult quarter, we are fully expecting it and we have made adjustments to our business in light of the challenging environment.

總而言之，雖然這是一個困難的季度，但我們對此充滿期待，並根據充滿挑戰的環境對我們的業務進行了調整。

Looking forward to the second quarter, we are expecting a mild recovery in shipment to volumes.

展望第二季度，我們預計出貨量將溫和復甦。

Though our current difficult sales mix will cause our ASP to continue to fall in the high single digits.

儘管我們目前困難的銷售組合將導致我們的平均售價繼續下降到高個位數。

We believe the net result will be that our revenue will decline in the mid single digits.

我們相信最終結果將是我們的收入將下降個位數。

Most significantly and as I have already mentioned, we think that the industry has hit a bottom, and I believe we will start to see a slow uptrend.

最重要的是，正如我已經提到的，我們認為該行業已經觸底，我相信我們將開始看到緩慢的上升趨勢。

Since the quarter ended, UMC has had some significant design wins at the leading edge, more than a dozen customers have selected UMC to fabricate 90nm technology.

自本季結束以來，聯華電子在領先優勢方面取得了一些重大設計勝利，已有十幾家客戶選擇聯電來製造 90 奈米技術。

This new business is not only affirmation of the positive advances we have made with leading edge technology, but it will also help our volume and pricing in the coming quarters as the projects start to come on line and I will elaborate more later.

這項新業務不僅是對我們在領先技術方面取得的積極進展的肯定，而且隨著專案開始上線，它也將有助於我們在未來幾個季度的銷售和定價，我將在稍後詳細闡述。

Now let us turn to guidance for the second quarter of 2005.

現在讓我們轉向 2005 年第二季的指引。

Quarter over quarter comparison, wafer shipments to increase by low single digits percentage points.

與上一季相比，晶圓出貨量成長了較低的個位數百分點。

Wafer ASP in U.S. dollars to decline by high single digit percentage points.

以美元計的晶圓平均售價將下降高個位數百分點。

Capacity utilization rate approximately 60%.

產能利用率約60%。

By the way, this has factored in the additional 12 inch capacity that has recently opened it up.

順便說一句，這已經考慮到了最近開放的額外 12 英寸產能。

Profitability approaching gross profits breaking even.

獲利能力接近毛利損益平衡。

Percentage of 8 micron and below revenues, temporary contraction due to stronger demand for mature technology, although sales from 90nm is expected to exceed 10%.

儘管90奈米的銷售額預計將超過10％，但8微米及以下的收入百分比由於對成熟技術的需求強勁而暫時收縮。

The consumer segment is expected to be the strongest, while the computer segment is expected to show a seasonal slow down.

消費領域預計將最為強勁，而電腦領域預計將出現季節性放緩。

And since the previous quarterly report Telemus Dublin (ph) did some investigation regarding UMC's relationship with Harijan Sap (ph) in China.

自從上一季報告發布以來，Telemus Dublin (ph) 對 UMC 與中國 Harijan Sap (ph) 的關係進行了一些調查。

I think we are obligated to give you a status summary report.

我認為我們有義務向您提供一份狀況總結報告。

UMC has stated multiple times that we have not invested in Harijan.

聯電已多次聲明我們沒有投資Harijan。

As a matter of fact, the Ministry of Economic Affairs has done a thorough search in year 2002.

事實上，經濟部早在2002年就已進行徹底的調查。

Secondly, UMC has not transferred orders to Harijan.

其次，聯華電子尚未將訂單轉移給Harijan。

That was one of the complaints from some media.

這是一些媒體的抱怨之一。

And as everybody in this industry know, we cannot influence customers efficient with selecting facts.

正如這個行業的每個人都知道的那樣，我們無法透過選擇事實來有效地影響客戶。

As a matter of fact, to transfer products to another fab require customers qualification or even customer's customers qualification.

事實上，要將產品轉移到另一家晶圓廠，需要客戶資質，甚至是客戶的客戶資格。

So, therefore, it's purely customers decision.

因此，這純粹是客戶的決定。

Third one was regarding acquisitions that UMC transferred patents to Harijan, and that accusation is simply false.

第三個是關於聯電將專利轉讓給 Harijan 的收購，這項指控完全是錯誤的。

As everyone in this industry know, that patents are invented for innovation, for innovative idea.

業內人士都知道，專利是為了創新、創新理念而發明的。

It does not mean that the patent ideas are really or actually used in real products and that was the case in Harijan.

這並不意味著專利創意確實或實際用於實際產品中，Harijan 就是這種情況。

The ongoing investigation has had no significant impact on UMC's operations.

正在進行的調查對聯華電子的運作沒有重大影響。

I think this is the most important part.

我認為這是最重要的部分。

And also, Harijan has agreed to give us a 15% share of the ownership provided the government allow us to take it.

此外，Harijan 也同意給我們 15% 的所有權，前提是政府允許我們接受。

So we are in the process of discussing with government awaiting for their approval.

因此，我們正在與政府討論，等待他們的批准。

So the above summary pretty much is stated where we are and company's position.

所以上面的總結基本上說明了我們的處境和公司的定位。

Last year was a strong year for the whole semiconductor industry and definitely for UMC.

去年對於整個半導體產業來說是強勁的一年，對於聯華電子來說更是如此。

So when this event was strong, UMC performed quite well, our momentum was very, very strong.

所以當這個活動很強勁的時候，聯電表現得相當好，我們的勢頭非常非常強勁。

And this inventory correction apparently had an impact, more impact to us than our leading competitor.

這次庫存調整顯然產生了影響，對我們的影響比我們的主要競爭對手更大。

And the main reason was that we were behind for the 0.13 micron generation.

主要原因是我們在0.13微米世代上落後了。

This situation slowed our growth in the past and is still impacting our performance during this inventory correction period.

這種情況過去減緩了我們的成長，並且在庫存調整期間仍在影響我們的業績。

And fortunately, the good news is that we caught up for 90nm.

幸運的是，好消息是我們趕上了 90nm。

Today we have many new design wins in 90nm and 0.13 micron across all major applications.

今天，我們在所有主要應用中贏得了許多 90 奈米和 0.13 微米的新設計。

Most of the customers will have the working samples this year and with production ramped starting in 2006.

大多數客戶今年都會收到工作樣品，並從 2006 年開始量產。

We are also leading in 65 and 18nm development according to our customers and customers have produced working prototypes for 65nms and we are making good progress on 45nm development.

根據客戶的說法，我們在 65 奈米和 18 奈米開發方面也處於領先地位，客戶已經生產了 65 奈米的工作原型，並且我們在 45 奈米開發方面也取得了良好進展。

More on UMC 90nm program status.

有關聯華電子 90 奈米計劃狀態的更多資訊。

More than a dozen customers engaged with over 50 product take-outs including -- RF products.

十多家客戶參與了 50 多種產品外送活動，其中包括射頻產品。

And over 31,000 8 inch equivalent wafers were shipped in 2004, 9 -- line U is larger than 95%, which is usually a indication of maturing manufacturing status.

2004 年，8 吋等效晶圓出貨量超過 31,000 片，9 - 線 U 大於 95%，這通常表示製造狀況已趨於成熟。

We also have one 8 inch fab and two 12 inch fabs that can offer 90nm low care manufacturing capability.

我們還擁有一座 8 吋晶圓廠和兩座 12 吋晶圓廠，可提供 90 奈米低維護製造能力。

So I think that will be my status report and would like to thank you again for your continued interest in UMC.

因此，我認為這將是我的現狀報告，並再次感謝您對聯華電子的持續關注。

And express my appreciation for your attendance at our meeting today.

並對您出席我們今天的會議表示感謝。

So we will now open the lines for questions.

現在我們開始提問。

[OPERATOR INSTRUCTIONS] Our first question comes from the line of Robert Maire of Needham & Company.

[操作員說明] 我們的第一個問題來自 Needham & Company 的 Robert Maire。

Yes.

是的。

Could you provide a little bit more clarification as to demand or expected demand in the June quarter from what market segments -- I think you said PCs going through normal seasonal weakness.

您能否就六月季度來自哪些細分市場的需求或預期需求提供更多說明？我想您說的是個人電腦正在經歷正常的季節性疲軟。

Where else would you see strengths or weakness.

你還能在哪裡看到優點或缺點。

And in terms of inventories, is it your expectation that any remaining inventory would be gone by the end of the second quarter?

就庫存而言，您預計剩餘庫存會在第二季末消失嗎？

Okay.

好的。

Yes.

是的。

In terms of the strengths of the different market segments, we felt that -- first off, let me talk about the inventory.

就不同細分市場的優勢而言，我們覺得——首先我來說說庫存。

I think the inventory is in pretty good situation.

我認為庫存狀況非常好。

It's pretty healthy across the board.

總體而言，它非常健康。

And, for example, we noticed that broadband customers start to order again.

例如，我們注意到寬頻客戶再次開始訂購。

It includes ADSL and FPGA customers.

其中包括ADSL和FPGA客戶。

And the well less, inventory I think is also in good shape.

我認為庫存也狀況良好。

Out of the demand in first two quarters or first half of this year is flat as our customers informing us.

正如我們的客戶告訴我們的那樣，今年前兩個季度或上半年的需求持平。

Our customers expected that the demand would significantly increase in the third and the fourth quarter.

我們的客戶預計第三季和第四季的需求將顯著增加。

Then computer sector as you pointed out has -- it's a seasonal weakness and consumer product also has very healthy inventory, especially display panel-related IC demand.

然後，正如您所指出的，電腦產業存在季節性疲軟，消費性產品也有非常健康的庫存，特別是與顯示面板相關的 IC 需求。

And the demand over there is very, very strong.

那裡的需求非常非常強烈。

So that's probably a good summary of the current status.

這可能是對當前狀態的一個很好的總結。

Okay.

好的。

And a quick follow on question.

並快速跟進問題。

Your CapEx is still in the range of 1 to 1.5 billion for the year.

今年您的資本支出仍然在 1 至 15 億美元之間。

Will that be spent linearly through the year or is that front end loaded, back end loaded, and I would assume that that's perhaps aimed at leading edge 90nm and beyond.

這會在一年中線性花費，還是前端加載、後端加載，我認為這可能是針對前沿 90 奈米及以上。

Yes.

是的。

I tell you it will probably be back end loaded in the second half and, yes, your assumption was correct.

我告訴你，它可能會在下半場被後端加載，是的，你的假設是正確的。

It will be spent in the in advanced to 12 inch equivalent.

它將用於先進的 12 英寸同等產品。

Okay.

好的。

Thank you very much.

非常感謝。

Thank you.

謝謝。

Our next question comes from the line of Michael McConnell of Pacific Crest Securities.

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

Thank you.

謝謝。

Your competitor yesterday had spoken of a more gradual increase in utilizations in the back half of the year.

你的競爭對手昨天談到了今年下半年利用率的逐步增加。

While I know you don't have a crystal ball, kind of what's your outlook in terms of the back of the year with your utilization rates?

雖然我知道您沒有水晶球，但您對今年下半年的利用率有何展望？

Should we look for more of a sharper increase just given the fact that you've probably seen more a correction in terms of your own utilization rate or should we expect more of a gradual kind of increase as we work our way through the year?

考慮到您可能已經看到自己的利用率出現更多調整，我們是否應該尋求更多更急劇的增長，或者我們是否應該在全年工作中期待更多漸進式增長？

If what our customer told us is true, then we will see a mild increase in Q3 and maybe a sharper increase in Q4.

如果我們的客戶告訴我們的是真的，那麼我們將看到第三季的溫和成長，第四季可能會出現更急劇的成長。

And then what should we be looking at for your capacity in terms of wafers for 2005 right now?

那我們現在應該要關注你們 2005 年晶圓產能是多少呢？

In terms of overall capacity?

就整體能力而言？

Correct.

正確的。

I think -- it's in the table.

我想——它在桌子上。

It's approximately 20% increase from last year. 22%.

比去年增加了約20%。 22%。

And last question was your competitor had also talked about some delays in terms of some customers shifting to 90nm due to design complexities.

最後一個問題是，你們的競爭對手也談到了由於設計複雜性而導致一些客戶轉向 90 奈米的延遲。

Have you seen any evidence of that, as well, with your customer base?

您是否也從您的客戶群中看到了這方面的證據？

Our status is this.

我們的狀態是這樣的。

We have so far some 50 product tables, but one-third of them are in production and the rest of them are in the pipeline at different stages.

到目前為止，我們有大約 50 個產品表，但其中三分之一正在生產中，其餘的則處於不同階段的管道中。

Thank you very much.

非常感謝。

Yes.

是的。

Thank you.

謝謝。

Our next question comes from the line of Michael Fitzgerald of Banc of America.

我們的下一個問題來自美國銀行的邁克爾·菲茨杰拉德。

I'm sorry.

對不起。

Mark Fitzgerald.

馬克·菲茨杰拉德。

Thank you.

謝謝。

I was wondering if you could give us an explanation for the mix shift where the 0.18 is going to contract in the June quarter, what's the product mix that's happening here?

我想知道您能否給我們解釋一下 0.18 將在 6 月季度收縮的混合變化，這裡發生的產品組合是怎樣的？

I think the customers, I think 0.25 micron, 0.35 microns, are in the stage of migrating and as a matter of fact, I think for every node that we are seeing that.

我認為客戶，我認為 0.25 微米、0.35 微米，正處於遷移階段，事實上，我認為對於我們所看到的每個節點。

Many customers are migrating from 0.18 micron 0.15 micron into 0.13.

許多客戶正在從 0.18 微米遷移到 0.15 微米到 0.13。

Some from 0.25 into 0 .18 and definitely some even transition from 0.15 directly into 90nms.

有些從 0.25 過渡到 0 .18，有些甚至從 0.15 直接過渡到 90nm。

You know that we didn't have many 0.13 micron customers so the transition from 0.13 and 90 is there.

您知道，我們沒有很多 0.13 微米客戶，因此從 0.13 微米到 90 微米的過渡就在那裡。

So I think that is just the observation that 0.18 micron will contract in the near term but I think over time, the migration from larger geometries such as 25 -- 0.25-micron, will happen.

因此，我認為這只是 0.18 微米將在短期內收縮的觀察結果，但我認為隨著時間的推移，從更大的幾何形狀（例如 25 - 0.25 微米）的遷移將會發生。

It's just a complex mix situation across many applications.

這只是許多應用程式的複雜混合情況。

Okay.

好的。

And if I could do a follow-on, if you look at your ASPs and your comments that in the second quarter 90 would go to greater than 10% and given the contraction of 0.18, I would think the ASPs would be higher for the advanced technology nodes and that would actually help your plan so I can't quite understand the ASP trends relative to the mix shift that's going on .

如果我可以做一個後續，如果你看看你的 ASP 和你的評論，在第二季度 90 將超過 10%，並且考慮到 0.18 的收縮，我認為先進的 ASP 會更高技術節點，這實際上會對您的計劃有所幫助，因此我不太了解相對於正在發生的混合轉變的ASP 趨勢。

Yes.

是的。

The reason for the decrease in ASP was mainly because of the increase in 0.35 micron and 0.25 micron processes for display driver.

ASP下降的原因主要是由於顯示驅動器的0.35微米和0.25微米製程的增加。

And we have strong pressure there for the display driver IC.

我們在顯示驅動IC方面面臨巨大的壓力。

And that was the main reason.

這是主要原因。

Okay.

好的。

Thank you.

謝謝。

Our next question comes from the line of Ashis Kumar with Tideman.

我們的下一個問題來自 Ashis Kumar 和 Tideman 的對話。

Thank you my first question is -- I apologize in advance.

謝謝你，我的第一個問題是──我提前道歉。

But it seems to me that looking at your second quarter revenue, you seem to be losing out and not only to TSMC but even to Charter and some of the customers in the graphic space that you pursued pretty aggressively have actually opted for so called weaker players and I'm asking you a blunt question, but -- a falling utilization rate with revenue decline much worse, you perhaps maybe the only one with a sequential revenue decline, things aren't -- things aren't good at all.

但在我看來，看看你們第二季度的收入，你們似乎不僅輸給了台積電，甚至輸給了 Charter，以及你們在圖形領域積極追求的一些客戶實際上選擇了所謂的較弱玩家我問你一個直率的問題，但是——利用率下降，收入下降更糟，你可能是唯一一個收入連續下降的人，情況並非如此——情況一點也不好。

What will you do to remedy it? .

你會採取什麼措施來補救？ 。

It wasn't the fact that we had a 0.13 micron graphics customer.

事實並非如此，我們有 0.13 微米圖形客戶。

But I don't agree with you that the situation is bad, that we are losing out.

但我不同意你的觀點，即情況很糟糕，我們正在失敗。

If you were here from the beginning, that I have -- of this meeting, I have point out very clearly that 0.13 micron delay was a reason for our current -- current situation.

如果您從一開始就在這裡，那麼我在這次會議上就已經非常明確地指出，0.13 微米的延遲是造成我們目前狀況的一個原因。

But we have caught up in in 90nm and when customers start to ship 90nm product then the situation will significantly improve.

但我們已經趕上了90奈米，當客戶開始出貨90奈米產品時，情況將會顯著改善。

So is it like a quarter, one quarter issue you think it's 0as simple as you failed at 0.13 you're having to access at 90 and things will be fine so maybe if I speak with you three months from now, things will be so much different.

那麼，這就像四分之一、四分之一的問題嗎？你認為這很簡單，就像你在0.13 失敗一樣簡單，你必須在90 級訪問，事情就會好起來，所以也許如果我從現在開始三個月後與你交談，事情就會變得如此之多不同的。

I mentioned that we have quite a few number of 90nm products in production and we have many designs in the pipeline and many of them will have prototypes before the end of this year and start to ramp in early 2006.

我提到我們有相當多的 90 奈米產品正在生產，我們有許多設計正在醞釀中，其中許多將在今年年底之前產生原型，並在 2006 年初開始量產。

So early '06 is when perhaps when we'll be back in charge and where we belong in the industry?

那麼 06 年初，也許我們什麼時候才能重新掌權，以及我們在產業中的地位？

And even before that.

甚至在那之前。

Our customers who have been in 90nm production will have, I believe, a significant increase in demand in third and fourth quarter.

我相信，我們已經進行 90 奈米生產的客戶在第三季和第四季的需求將顯著增加。

And my follow-up question is, if you look at the capacity built by you and your competitors, is it natural, is it sort of logical to expect that pricing, blended ASP -- like to like, I should say perhaps pricing will continue to decline in second half?

我的後續問題是，如果你看看你和你的競爭對手建立的能力，期望定價、混合 ASP 是否自然、是否合乎邏輯——喜歡喜歡，我應該說也許定價會繼續下去下半年會下滑嗎？

No.

不。

As a matter of fact, we expect both the shipment and pricing to increase in Q3.

事實上，我們預計第三季的出貨量和價格都會增加。

And also in Q4.

第四季也是如此。

So despite only 60% integration you do expect pricing power to come back?

那麼，儘管只有 60% 的整合，您確實預期定價能力會恢復嗎？

Yes.

是的。

After Q2.

Q2之後。

So, in other words, you're expecting very strong pickup in third quarter, is it?

那麼，換句話說，您預計第三季的經濟成長將非常強勁，是嗎？

We expect a pickup in third quarter and 60% is a blended average utilization.

我們預計第三季將有所回升，混合平均利用率將達到 60%。

So during the quarter when you exit the quarter at a much higher utilization rate?

那麼，當您以更高的利用率退出該季度時，會發生什麼情況？

I don't understand your question.

我不明白你的問題。

So I was trying to say -- I was just thinking that how is it that at only 60% utilization for the quarter you will go into third quarter with higher pricing.

所以我想說——我只是在想，在本季度只有 60% 的利用率的情況下，你會以更高的價格進入第三季。

Perhaps one way could be that you started your utilization, you end the quarter with much higher utilization and pricing power gradually starts to come back.

也許一種方法是您開始使用，在本季度末您的利用率要高得多，並且定價能力逐漸開始恢復。

In the third quarter price increases on a blended basis, so we are foreseeing the new orders in the high end such as 90nm and 0.13 to come in as a result of blended, they will increase.

第三季價格是混合上漲的，所以我們預計90nm、0.13等高階的新訂單混合後會增加。

Okay.

好的。

Thank you.

謝謝。

Our next question comes from the line of Mehdi Hosseini of FBR.

我們的下一個問題來自 FBR 的 Mehdi Hosseini。

Yes.

是的。

I have two questions, going back to your earlier comment regarding your communication customers.

我有兩個問題，回到您之前關於通訊客戶的評論。

I believe one of the -- one of your top customers had pulled in capacity and they're doing more in-house manufacturing.

我相信你們的一位頂級客戶已經提高了產能，並且他們正在進行更多的內部製造。

So does your commentary that communication is slowly coming back, does that reflect the fact that that particular customer would need to -- at some point would need to increase outsourcing mix?

那麼，您關於溝通正在慢慢恢復的評論是否反映了特定客戶需求—在某些時候需要增加外包組合的事實？

And I have a follow-up question.

我還有一個後續問題。

And I don't know which one that you are referring to, and what I'm telling you is a general trend that multiple customer told us that they expect the demand will come back in Q3 and in Q4, that including both the wire line customers and the wireless customers.

我不知道你指的是哪一個，我告訴你的是一個總體趨勢，多個客戶告訴我們，他們預計需求將在第三季和第四季回升，包括有線電視客戶和無線客戶。

And then in regarding your CapEx, with only 8% of the total CapEx that's been in Q1, what would the utilization rate would need to reach for you to be comfortable enough to spend entire CapEx, in other words if utilization rate at the trailing edge were to remain at depressed level, would you still spend the entire CapEx?

然後就您的資本支出而言，第一季的資本支出僅佔總資本支出的 8%，那麼利用率需要達到多少才能讓您放心地花費整個資本支出，換句話說，如果利用率處於後緣如果保持在低迷水平，您還會花費全部資本支出嗎？

I think the CapEx spending is a little bit for the future demand.

我認為資本支出是為了未來的需求而進行的。

It's not for immediate quarter, for immediate next quarter or even two quarters due to the long lead time for some of the equipment.

由於某些設備的交貨時間較長，因此不是立即季度、下一季甚至兩個季度。

So the case has to be analyzed based on the demand.

所以要根據需求具體分析。

Sure.

當然。

By the way, UMC spent about 110 million in the first quarter but that includes UMCi.

順便說一下，UMC 第一季的支出約為 1.1 億美元，其中包括 UMCi。

That's another 90 million.

那是另外9000萬。

So almost 200 million has been spent or 20% if you use the 1 billion as the budget benchmark.

所以已經花掉了將近2億，如果以10億作為預算基準的話，就花掉了20%。

I just if I may, one more.

如果可以的話，我就再來一張。

Can you help us understand the difference in the utilization rate between the trailing edge and the leading edge 130nm and below.

您能幫我們了解一下130nm及以下後沿和前沿利用率的差異嗎？

That is a very complex breakout.

這是一個非常複雜的突破。

But is difference more than 10 points?

但差距超過10分嗎？

0.35 right now is in good demand, so pretty highly utilized.

0.35 現在需求量很大，所以利用率很高。

And the Companywide capacity utilization rate is around 50%.

全公司產能利用率約50%。

So that would be high.

所以那會很高。

Our leading edge is actually running at below 50%.

我們的領先優勢實際上低於 50%。

Thank you.

謝謝。

Thank you.

謝謝。

Our next question comes from the line of Shailesh Jaitly of Nomura Securities.

我們的下一個問題來自野村證券的 Shailesh Jaitly。

Hi.

你好。

My first question relates to the significant drop which IBM customers have seen.

我的第一個問題與 IBM 客戶所看到的大幅下降有關。

Is that largely or is that mainly skewed by the decline in the wireless segment?

這在很大程度上還是主要是由無線領域的衰退造成的？

Well, it was part of the reason.

嗯，這是部分原因。

Was that the biggest reason?

這是最大的原因嗎？

Well, I mean other applications also have impact.

嗯，我的意思是其他應用程式也會產生影響。

And what gives you confidence that this is coming back and more importantly, is this -- is this a segment where you are losing market share or is it industrywide the customers have cut the buildout is in-house.

是什麼讓你相信這種情況正在捲土重來，更重要的是，這是一個你正在失去市場份額的細分市場，還是整個行業的客戶已經削減了內部擴張。

IBM's definitely enduring correction period will adjust their own loading first.

IBM肯定會在持久調整期先調整自己的負載。

And for a while, that's communication.

有一段時間，這就是溝通。

I think that overall demand in the first two quarters we were told is flat and the demand will increase in the third and the fourth quarter .

我認為我們被告知前兩季的整體需求持平，第三季和第四季的需求將會增加。

Okay.

好的。

How big was the display driver business in first quarter and how does it compare with that in fourth quarter?

第一季顯示驅動業務規模有多大？與第四季相比如何？

It's 15% in the first quarter and 10% in Q4 2004.

2004 年第一季為 15%，第四季為 10%。

If you could help quantify, what are the kind of ASP declines you have seen in this segment in first quarter and what are your expectations going forward?

如果您能幫忙量化一下，您在第一季看到該細分市場的平均售價下降了多少，您對未來的預期是什麼？

Yes.

是的。

The overall decline was 12% for Q1, and we don't comment on any individual technology, no.

第一季整體下降了 12%，我們不對任何單獨的技術發表評論，不。

That will cause some issues for customers.

這會給客戶帶來一些問題。

Okay.

好的。

If you can just provide some broad range.

如果你能提供一些廣泛的範圍。

Is it in the range of, say, 20, 25%.

是在 20%、25% 的範圍內嗎？

Sorry.

對不起。

I can't comment on it.

我無法對此發表評論。

Okay.

好的。

Fair.

公平的。

Consumer segment, you mentioned is going to be the strongest as you go forward.

您提到，隨著您的發展，消費者細分市場將是最強大的。

If you could help get a grasp as to where you are seeing the strength and if you can rank the applications where you are seeing the strength in consumer segment?

您是否可以幫助了解您在哪些方面看到了優勢，以及是否可以對您在消費領域中看到優勢的應用程式進行排名？

For example, DVD, LCD and MP3.

例如，DVD、LCD 和 MP3。

Finally, on your wire line, I missed that point but did you mention that you have seen the orders coming back on the FBGA?

最後，在您的線路上，我錯過了這一點，但您是否提到您已經看到 FBGA 上返回的訂單？

What I said is that we start to see the order come back for broadband, that includes FBGA.

我所說的是，我們開始看到寬頻訂單回升，其中包括 FBGA。

Okay.

好的。

Thank you.

謝謝。

Thank you.

謝謝。

Our next question comes from the line of Fayad Abbasi of Prudential Equity Group.

我們的下一個問題來自 Prudential Equity Group 的 Fayad Abbasi。

Hi.

你好。

Just on the gross margins, I just wanted to make sure I understood the outlook for Q2 and then as we move forward into the second half.

就毛利率而言，我只是想確保我了解第二季以及下半年的前景。

You're seeing a pretty substantial decline in the gross margins as we go into Q2.

當我們進入第二季時，您會看到毛利率大幅下降。

I was just -- wanted to get a sense what's really the key factors driving this?

我只是想了解推動這一趨勢的真正關鍵因素是什麼？

Because from a utilization perspective, we should be relatively flat quarter over quarter.

因為從利用率的角度來看，我們的季度環比應該相對持平。

So is it really just a matter of the pricing and then as we get to the second half of the year, how can we expect that to kind of rebound?

那麼，這真的只是定價問題嗎？到了下半年，我們怎麼能指望價格會反彈呢？

Pricing is definitely one of the factor we are expecting some high single digit decline in price.

定價絕對是我們預期價格會出現高個位數下降的因素之一。

But the bigger reason essentially that on April 1, we merged the whole UMCi operation into UMC.

但更大的原因本質上是在 4 月 1 日，我們將整個 UMCi 業務合併到 UMC 中。

So the whole cost structure actually now is included, the whole physical from UMCi.

所以現在實際上包括了整個成本結構，來自 UMCi 的整個物理成本。

That would be a bigger factor.

這將是一個更大的因素。

So is the utilizations, then from UMCi expected to be well below the corporate average?

那麼，UMCi 的利用率預計會遠低於企業平均嗎？

Their economy of scale right now is not up to the level of the UMC average yet.

他們目前的規模經濟尚未達到聯華電子的平均值。

So it's currently coupled with the one I mentioned -- they are running at below average capacity utilization rate.

因此，它目前與我提到的相結合——它們的運行容量利用率低於平均水平。

So the whole performance of UMCi is actually driving the UMC performance down.

因此，UMCi 的整體性能實際上正在降低 UMC 的性能。

And is that -- I guess you had commented from a prior question that the leading edge probably running at lower utilization given the higher utilization of 0.35.

我想您在先前的問題中評論過，鑑於 0.35 的較高利用率，前沿可能以較低的利用率運行。

So I would surmise then also on Fab 12A that we're running below corporate average.

因此，我推測 Fab 12A 的運作情況也低於公司平均值。

Yes.

是的。

Okay.

好的。

Thank you.

謝謝。

Thank you.

謝謝。

Our next question comes from the line of Bhavin Shah with J.P. Morgan.

我們的下一個問題來自 Bhavin Shah 與摩根大通的對話。

Yes.

是的。

I just wanted to clarify, historically you have reported utilization I believe on the first ship basis?

我只是想澄清一下，歷史上您曾報告過我相信是基於首艘船的利用率嗎？

Is that correct?

那是對的嗎？

I mean I get this quarter there is a difference between what I can calculate in terms of wafer shipments versus reported utilization.

我的意思是，本季我所計算的晶圓出貨量與報告的使用率之間存在差異。

Is that a change there?

那裡有變化嗎？

No.

不。

It's always -- our wafer are divided by available capacity.

我們的晶圓總是除以可用產能。

I see.

我懂了。

Okay.

好的。

Earlier you mentioned 15% in first quarter, 5% fourth quarter, 5 for display driver business is that revenues or volume?

之前您提到第一季15%，第四季5%，5%的顯示驅動業務是營收還是銷售？

Revenue.

收入。

Volume will be higher.

音量會更高。

Okay.

好的。

And 90nm.

還有90奈米。

Could you comment on which products are driving that 10% revenues in second quarter and also what are the other products that could be increasing that contribution from 90nm in coming quarters.

您能否評論一下哪些產品在第二季度推動了這 10% 的收入，以及哪些其他產品可能會在未來幾季增加 90 奈米的貢獻。

At this point, that I would say that the -- the 90nm new designs covered very broad applications.

在這一點上，我想說的是，90 奈米新設計涵蓋了非常廣泛的應用。

So it's pretty much every sector communications, computer, and the consumer.

所以它幾乎涉及通訊、電腦和消費者的每個領域。

Right.

正確的。

But is there any one product that sort of represents -- typically at the early stage of new technology, it tends to have one or two product that really have a high percentage shares.

但有沒有一種產品能夠代表這種情況——通常在新技術的早期階段，它往往有一兩種產品確實擁有很高的份額。

Is there any such product?

有這樣的產品嗎？

Yes.

是的。

Again, from applications standpoint, I think computer and communication probably have higher percentage than consumer.

同樣，從應用程式的角度來看，我認為電腦和通訊的比例可能高於消費者。

That's usually the trend from technology adoption point of view.

從技術採用的角度來看，這通常是趨勢。

Okay.

好的。

And UMC Japan, can you comment on that?

日本聯電，您能對此發表評論嗎？

Any plans to -- I mean what is the plan for UMC Japan?

有計劃嗎——我的意思是聯華電子日本公司的計劃是什麼？

What do you mean by plan?

你說的計劃是什麼意思？

Well, I guess what I'm driving at, is that obviously UMC Japan is not operating probably not optimally at this point and is obviously reporting losses.

好吧，我想我的意思是，顯然聯華電子日本公司目前的營運狀況可能不是最佳，而且顯然正在報告虧損。

So I was wondering if -- what you -- what do you see for in the future for UMC Japan?

所以我想知道您對聯華電子日本公司的未來有何看法？

Any plans to do anything there or --?

有計劃在那裡做些什麼嗎？或者——？

Again, I think it depends a lot on the -- on the economic cycle and the good thing is that I think in Japan, we see that customers are moving upwards into 0.15 microns technology and that will provide more opportunities for UMC Japan.

再說一遍，我認為這在很大程度上取決於經濟週期，好的一點是，我認為在日本，我們看到客戶正在轉向 0.15 微米技術，這將為日本聯電提供更多機會。

Okay.

好的。

Thank you.

謝謝。

Thank you.

謝謝。

Our next question comes from the line of Pranab Sarmah of Daiwa Securities.

我們的下一個問題來自大和證券的 Pranab Sarmah。

Good afternoon.

午安.

I have a couple of follow-up questions.

我有幾個後續問題。

One is basically on your operating expenses for second quarter '05, how we should model out that part.

其中一個基本上是關於 05 年第二季的營運費用，我們應該如何模型化該部分。

The second quarter we incurred a 200 million addition from UMCi for month.

第二季度，我們從 UMCi 獲得了 2 億美元的月度增量。

600 million more.

還有6億。

So NT$600 million more are in the second quarter due to the merger of -- acquisition of UMCi.

因此，由於合併收購聯華電子，第二季的營收增加了 6 億新台幣。

Okay.

好的。

Then the next one is on second quarter, do you think that communication will be relatively stable after the first quarter or that part will be also down in second quarter.

那麼下一個是第二季度，您認為第一季之後溝通會相對穩定還是第二季度也會下降。

Actually, it's near the end of Q2 that we start to see the pickup sign.

事實上，在第二季末，我們開始看到回升的跡象。

Okay.

好的。

And on -- for the first quarter, your cost of goods sold, excluding depreciation has come down quite significantly any particular reason behind that compared to, say, fourth quarter.

接下來，第一季的銷售成本（不包括折舊）與第四季相比顯著下降，背後有任何特殊原因。

Sorry.

對不起。

Please say that again, please.

請再說一次。

Cost of goods sold, excluding depreciation has come down quite sharply on the first quarter '05 compared to fourth quarter.

與第四季相比，05 年第一季的銷售成本（不包括折舊）大幅下降。

Yes.

是的。

We actually said in the conference call last quarter there was some year end adjustments kind of based on one event.

事實上，我們在上個季度的電話會議上說過，根據一個事件進行了一些年終調整。

That was the reason.

這就是原因。

Q1 should be the benchmark for the rest of the year except for the addition from UMCi.

除了 UMCi 的增加外，第一季應該是今年剩餘時間的基準。

And whatever I have seen your 90nm probably even if it goes to that 10% of your revenue in second quarter, total and absolute number it will be lower than the fourth quarter '04 in dollar counts.

無論我看到什麼，你的 90nm 可能即使它佔你第二季收入的 10%，總數和絕對數字也將低於 04 年第四季的美元計數。

And probably you may have a more number of products at 90nm in second quarter '05.

05 年第二季度，您可能會推出更多 90 奈米產品。

That means for on a per product basis your revenue could be lower.

這意味著就每個產品而言，您的收入可能會更低。

Does it mean that your profitability will also come down because you have certain (INAUDIBLE) up in cost as well.

這是否意味著您的獲利能力也會下降，因為您的成本也有一定的（聽不清楚）上升。

You mean for 90nm product.

你指的是90nm產品。

For 90nm, yes.

對於 90nm，是的。

I don't think that's the case.

我認為情況並非如此。

I think ASP there is holding well.

我認為 ASP 保持得很好。

But you have probably more product but each product is contributing probably lower number of revenues or smaller number of revenues .

但是您可能擁有更多的產品，但每種產品貢獻的收入可能較少或較少。

I think over there, because in Q1 and in Q1, I think the demand for 90nm reduced somewhat and then we expected them to pick up again near the end of Q2.

我認為在那裡，因為在第一季和第一季度，我認為對 90nm 的需求有所減少，然後我們預計它們會在第二季末再次回升。

Thank you.

謝謝。

And my last question is on the total capacity guidance for the 90nm.

我的最後一個問題是關於 90 奈米的總產能指導。

By year end, how do you think that your capacity will be at 90nm?

到年底，你們認為你們90nm的產能會如何？

Well, it will be nicer than in quarter two, kind of flattish in Q3, Q4.

嗯，會比第二季更好，第三季、第四季有點平淡。

But overall year-over-year increase is going to be 22%.

但整體年增幅將為22%。

At 90nm?

90奈米？

90nm by year end, very year end, is going to be -- including 0.13 is going to be almost 30%.

到年底，就在年底，90nm 將會達到——包括 0.13，將接近 30%。

But 90nm alone is 12% by year end.

但到年底，光是 90nm 就佔 12%。

Okay.

好的。

Thank you very much.

非常感謝。

Thank you.

謝謝。

Our next question comes from the line of Matt Gable with Calypso Capital.

我們的下一個問題來自 Matt Gable 與 Calypso Capital 的對話。

A question, you said that the 2005 CapEx was back end loaded.

一個問題，您說 2005 年的資本支出是後端加載的。

I'm just wondering when those orders get placed, that's the first question.

我只是想知道這些訂單何時下達，這是第一個問題。

Second question is did you mention anything about your outlook for 2005 global semi demand, percent year-on-year percent increase, decrease?

第二個問題是，您是否提到對 2005 年全球半導體需求的展望，較去年同期成長百分比、下降百分比？

For the equivalent we are watching the market demand on a monthly basis and usually what we worry is the -- either long lead time items, such as the scanners, right?

對於同樣的情況，我們每個月都會觀察市場需求，通常我們擔心的是——要么交貨時間長的物品，例如掃描儀，對嗎？

So the order can be placed, in the immediate -- immediate year time frame, and again, depending on the overall demand.

因此，可以在最近的一年時間範圍內再次下訂單，具體取決於整體需求。

What was your second question?

你的第二個問題是什麼？

Your outlook for 2005 global semi demand.

您對 2005 年全球半導體需求的展望。

Global semi demand.

全球半成品需求。

Your guess is as good as mine.

你的猜測和我的一樣好。

I think probably we felt that this year it will have a lower single digit net in growth.

我想我們可能認為今年的淨成長將低於個位數。

Okay.

好的。

Thank you very much.

非常感謝。

Thank you.

謝謝。

Our next question comes from the line of Donald Lu of Goldman Sachs.

我們的下一個問題來自高盛的唐納德盧。

Yes.

是的。

I have a question on the end market.

我有一個關於終端市場的問題。

What do you think your -- for this year, what your end market as a percentage of your revenue will form?

您認為今年您的終端市場佔您收入的百分比會是多少？

Will that be similar to last year? .

會和去年類似嗎？ 。

You mean on a yearly basis?

你的意思是按年計算？

Right.

正確的。

Right.

正確的。

Like, say, last year, your, let's say, wireless handset was let's say 30% of revenue, and how much -- is that going to be the same this year or will that be different.

比如說，去年，你的無線手機佔收入的 30%，是多少──今年會是一樣還是會有所不同。

Well, probably the consumer side may increase and communicate.

那麼，可能消費方可能會增加溝通。

Computer side may stay, communication may slightly reduce.

電腦端可能會停留，通訊可能會稍微減少。

That's just a gut feel.

這只是一種直覺。

Okay.

好的。

So computer would be flat.

所以電腦應該是平的。

Communication will -- consumer will go up and communication will come down a little bit.

溝通會－消費者會增加，而溝通會略為下降。

Slightly.

輕微地。

Yes.

是的。

Okay.

好的。

And in the consumer communication part, is that handset versus networking.

在消費者通訊部分，是手機與網路的比較。

Yes.

是的。

We usually include a broad line -- broadband, and the wireless.

我們通常包括寬泛的範圍——寬頻和無線。

Yes.

是的。

And I mean do you see handset to be the -- the key area for -- I mean it's a percentage of handset exposure will increase or flattish this year?

我的意思是，您是否認為手機是關鍵領域——我的意思是，今年手機曝光率的百分比會增加還是持平？

Any color on that?

那上面有什麼顏色嗎？

The handset right now is -- first half is flat.

目前這款手機的上半年表現平平。

So the overall, probably is lower than last year.

所以整體來說，可能會低於去年。

Okay.

好的。

Great.

偉大的。

Thanks.

謝謝。

Thank you.

謝謝。

Your next question comes from the line of Mehdi Hosseini of FBR.

您的下一個問題來自 FBR 的 Mehdi Hosseini。

Two follow-up questions.

兩個後續問題。

Is your -- the CapEx spending for UMCi, is that included in your cash flow statement?

您的 UMCi 資本支出是否包含在您的現金流量表中？

Not for the first quarter.

不是第一季。

Only after April 1, after the integration it will show in our financial statement.

只有在4月1日之後，整合之後才會反映在我們的財務報表中。

Understood.

明白了。

And in the driver IC, who would you characterize as your main competitors?

在驅動IC方面，您認為誰是您的主要競爭對手？

Actually, in this area, we are very, very strong, probably leading player.

事實上，在這個領域，我們是非常非常強的，可能是領先者。

But as -- as the DRAM manufacturers have -- will see excess capacity at 200 millimeter would you expect them to try to get in the driver IC business as a way to fill their vat?

但是，正如 DRAM 製造商所看到的那樣，200 毫米產能過剩，您是否會期望他們嘗試進入驅動 IC 業務，以填補利潤？

I think the equivalent used by the UM stats is quite different than logical stats required for driver IC you have to -- to revamp to make that happen.

我認為 UM 統計數據使用的等效數據與驅動器 IC 所需的邏輯統計數據有很大不同，您必須進行改造才能實現這一點。

Thank you.

謝謝。

Thank you.

謝謝。

Our next question comes from the line of Ivan Goh of Dresdner Kleinwort Wasserstein.

我們的下一個問題來自 Dresdner Kleinwort Wasserstein 的 Ivan Goh。

Hi.

你好。

Good evening.

晚安.

I have one question that relates to 90nm.

我有一個與 90nm 相關的問題。

You are very, very bullish for 90nm in the second half and into next year.

您非常非常看好下半年和明年的 90 奈米技術。

I was just wondering can you perhaps explain or give an idea of what what is the revenue base in the first quarter, i.e., how many customers or how many products are contributing to your 90nm revenues in the first quarter?

我只是想知道您能否解釋或介紹第一季度的收入基礎是什麼，即第一季有多少客戶或多少產品為您的 90 奈米收入做出了貢獻？

And how would that product or customer base or product base expand into the second half and then what do you think it will be like in the first half of 2006?

該產品或客戶群或產品群將如何擴展到下半年，那麼您認為 2006 年上半年會是什麼樣子？

As I mentioned earlier, about one-third of our 50 product take-outs are in production and then our forecast for percentage of revenue for Q2 for 90nm is 10%.

正如我之前提到的，我們 50 種外送產品中約有三分之一已投入生產，因此我們預測 90 奈米第二季的收入百分比為 10%。

And I believe it will continue to grow in Q3 and in Q4 and it will be -- it's difficult to give you an exact number at the end of the year right now and further into 2006.

我相信它將在第三季和第四季繼續成長，而且很難在今年年底以及 2006 年進一步提供確切的數字。

Can I just ask -- I mean given that it seems like most of your 90nm now is being used up by communications products.

我可以問一下嗎——我的意思是考慮到現在你們的大部分 90 奈米技術都被通訊產品用完了。

And can you just maybe talk about when graphics or perhaps other consumer products may come into the mix in 90nm?

您能否談談圖形或其他消費性產品何時可能加入 90 奈米製程？

Again, as I mentioned earlier, many customers will have their samples working before the end of this year and production ramp is expected in early 2006.

正如我之前提到的，許多客戶將在今年年底前讓他們的樣品投入使用，預計在 2006 年初開始量產。

Okay.

好的。

And you made a comment earlier that 90nm today is running at below company's average utilization rate.

您之前曾評論說，目前 90 奈米的運行速度低於該公司的平均利用率。

Would you expect as you exit 2004 that 90nm will continue to lag behind or advance leading edge capacity utilization will continue to be below company's average or you think that it will swing around to be above company's average?

您是否預計 2004 年結束時 90 奈米將繼續落後或領先，產能利用率將繼續低於公司平均水平，或者您認為它將高於公司平均水平？

We didn't say 90 is below average -- we said the events mainly --?

我們並沒有說 90 低於平均水平——我們主要說的是事件——？

That's correct.

這是正確的。

It was my mistake.

這是我的錯。

So I changed it to advanced technology.

所以我把它改成了先進技術。

Do you want to reiterate your question again?

您想再次重申您的問題嗎？

My question is you said that leading edge capacity utilization is running below your corporate average right now.

我的問題是，您說領先的產能利用率目前低於公司平均。

Do you think that as you exit 2004, that the situation will change?

您認為2004年結束後，情況會改變嗎？

Well, as a matter of fact, I -- I expect that when 90nm production ramp starts, the percentage would increase sharply.

嗯，事實上，我預計當 90 奈米量產開始時，這個百分比會急劇增加。

Okay.

好的。

By the end of this year it would increase to above the company's average.

到今年年底，這一數字將增至公司平均以上。

Yes.

是的。

It's possible.

這是可能的。

Okay.

好的。

Thank you very much.

非常感謝。

Thank you.

謝謝。

Our next question comes as a follow-up from the line of Michael McConnell of Pacific Crest Securities.

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

Thank you.

謝謝。

Just a few housekeeping items here.

這裡只有一些家事用品。

The net nonoperating income line for Q2, should we kind of keep that at roughly a billion NT?

Q2的營業外淨收入線，應該維持在10億新台幣左右嗎？

Is that kind of the outlook for Q2?

第二季的前景也是這樣嗎？

It's probably going to be a little bit more than that.

可能會比這個多一點。

Our goal is try to have a break even at the net income level and we will try to dispose some of our -- noncore holdings in Q2.

我們的目標是努力在淨利潤水準上實現收支平衡，我們將嘗試在第二季度處置我們的一些非核心資產。

Okay.

好的。

So break even from a net profit standpoint.

所以從淨利的角度來看，是收支平衡的。

We will try to.

我們會盡力。

Okay.

好的。

And then the Mask and Turnkey business for Q1, what percentage of that of your revenue.

然後是第一季的掩模和交鑰匙業務，佔您收入的百分比是多少。

Mask usually comes in at 4 to 5%.

面膜的含量通常為 4% 至 5%。

Matched with others so the others -- nonfoundry revenue is about 4 to 5%.

與其他公司相匹配，其他非代工收入約為 4% 至 5%。

That's always been the case, so --?

情況一直如此，所以──？

Right.

正確的。

And then my last question is just more curiosity.

我的最後一個問題只是更多的好奇心。

You had said that you have certain consumer products which are going to be using 90nm.

您曾說過您的某些消費產品將使用 90 奈米。

My understanding has always been that consumer in general has been more lagging edge.

我的理解一直是消費者整體上更加落後。

What type of consumer products utilize the leading edge.

哪種類型的消費品利用了領先優勢。

It's not proper to name them right now.

現在給他們取名字並不合適。

Then you can probably guess who the customers are.

那你大概就能猜到顧客是誰了。

But I can probably say this.

但我大概可以這麼說。

The customer application that has some very high gate count has the potential to embrace 90nm so that we have a better die cost.

具有非常高閘數的客戶應用有可能採用 90nm，這樣我們就有更好的晶片成本。

Okay.

好的。

Thank you very much.

非常感謝。

Thank you.

謝謝。

Our next question comes as a follow-up from the line of Fayad Abbasi of Prudential Equity Group.

我們的下一個問題是保德信股票集團 (Prudential Equity Group) 法亞德·阿巴西 (Fayad Abbasi) 的後續提問。

Hi.

你好。

Yes.

是的。

I wanted to maybe understand a little bit more on the development we're going on for 65nm.

我可能想更多地了解我們正在進行的 65 奈米開發。

If you could give us like an update on when you're expecting to begin risk production for that and also if -- if we were to look out into the second half and as -- if it turns out that some of these orders for 90nm don't come in for you and so we have a lot of depressed revenues for a little bit longer, what -- how would that affect the timing of your ramp up of 65?

如果您能為我們提供有關您預計何時開始風險生產的最新信息，以及如果我們要展望下半年，如果事實證明其中一些訂單是 90 納米不來找你，所以我們的收入在一段時間內都處於低迷狀態，這會如何影響你提升65 的時間？

The 90nm node, we have many customers that have working product and have been in production.

90nm節點，我們有許多客戶已經有工作產品並且已經投入生產。

So it's just a matter of marketed demand.

所以這只是市場需求的問題。

And for 65nm the status is, I believe, that we are leading and that's the input from our customer.

我相信，對於 65 奈米，我們處於領先地位，這是我們客戶的意見。

And our customer right now estimate probably to have preproduction early next year.

我們的客戶現在估計可能會在明年初進行預生產。

If the market uptake for 90 is a little bit softer, would you still expect to have the -- the early production in the first half of the next year or is there a risk that gets pushed out.

如果 90 的市場需求稍微疲軟，您是否仍希望在明年上半年進行早期生產，或者是否有被淘汰的風險。

No.

不。

That's just to -- from technology maturity standpoint, I think that can still happen.

只是從技術成熟度的角度來看，我認為這種情況仍然可能發生。

Okay.

好的。

It's a matter of mix, how much 90 and how much 65.

這是一個混合的問題，多少90，多少65。

Right.

正確的。

Okay.

好的。

And do you have an estimate on like what the R&D expense would be for 65.

您是否估算過 65 的研發費用是多少？

Overall, I don't have the figure on top of my head.

總的來說，我腦子裡沒有這個數字。

Also, you have to calculate over -- over time, over the past several years.

此外，你還必須計算過去幾年的時間。

I don't have that figure.

我沒有那個圖

Okay.

好的。

Thank you.

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。

Thank you, sir.

謝謝你，先生。

Our final question today comes from the line of Shailesh Jaitly of Nomura Securities.

我們今天的最後一個問題來自野村證券的 Shailesh Jaitly。

Hi.

你好。

I just wanted to just understand a bit more on the displays.

我只是想更多地了解顯示器上的內容。

Are you expecting this proportion to increase further in second quarter.

您預計第二季這一比例會進一步增加嗎？

It is possible.

有可能的。

Okay.

好的。

Looking at first quarter, if you look at the whole PC segment that has been stable at 24% the five year displays jumping almost 50% in terms of percentage points, where have you seen the sharpest decline?

看看第一季度，如果你看看整個 PC 領域一直穩定在 24%，五年來顯示器成長了近 50%，那麼你在哪裡看到了最嚴重的下降？

The display business is not only in the computer segment.

顯示業務不僅存在於電腦領域。

Actually, for the TV -- purpose actually categorized in the consumer segment.

實際上，對於電視來說，其用途實際上屬於消費領域。

So would you say that the displays which are going into consumers based on the substantial part or is that part of mainly then proportion PC segment.

那麼，您認為進入消費者市場的顯示器是基於大部分還是主要比例的 PC 細分市場的一部分。

It actually varies quarter by quarter.

實際上每季都有所不同。

So in quarter 2, we do see a stronger pickup in the consumer purpose in terms of LCD drivers business.

因此，在第二季度，我們確實看到 LCD 驅動器業務方面的消費目的出現強勁回升。

No, just repeating the question, from fourth quarter to first quarter, you have seen a massive jump on the display business.

不，只是重複這個問題，從第四季度到第一季度，你看到了顯示器業務的巨大跳躍。

I'm asking is the jump, the bigger jump proportion, is it coming from the PC segment or is it coming from the consumer segment for your first quarter?

我問的是，第一季的跳躍，較大的跳躍比例，是來自個人電腦領域還是來自消費領域？

I think it's both.

我認為兩者都是。

Is there any particular subsegment in the PC which have seen a big decline in the current quarter?

個人電腦中是否有任何特定細分市場在本季大幅下滑？

Could be graphics because it is -- you know, we see --?

可能是圖形，因為它是──你知道，我們看到──？

So there's more seasonality, you expect the business to come back as you go --?

因此，季節性因素較多，您預期業務會隨著您的離開而恢復—？

We hope.

我們希望。

Okay.

好的。

Lastly, the LCD driver, because this is revenue terms, in volume terms, would it be about say -- would it account for about 30% of their shipments?

最後是 LCD 驅動器，因為這是收入方面，從銷售方面來說，它會佔其出貨量的 30% 左右嗎？

We didn't discuss that.

我們沒有討論這個。

Otherwise, we are releasing the pricing.

否則，我們將發布定價。

So we are not discussing that.

所以我們不討論這個。

But you are right.

但你是對的。

The volume will be higher than the revenue of 15%.

成交量將比收入高出15%。

Okay.

好的。

Thank you.

謝謝。

Thank you, sir.

謝謝你，先生。

At this time, I'd like to turn it back to our management team for any closing remarks.

現在，我想將其轉回給我們的管理團隊，讓他們發表結束語。

Thank you.

謝謝。

We would like reiterate our thanks for your interest in supporting UMC and your participation in this meeting.

我們再次感謝您對聯華電子的支持以及您參加本次會議。

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

如果您還有其他問題，請隨時直接與我們聯絡。

As I mentioned at the start of this call the will be available on replay at our IR website through June 28, 2005.

正如我在本次電話會議開始時提到的，我們的 IR 網站將在 2005 年 6 月 28 日之前提供重播。

Thank thank you very much.

非常感謝。

Ladies and gentlemen, thank you for your participation in today's conference.

女士們、先生們，感謝你們參加今天的會議。

This does conclude your presentation and you may now disconnect.

您的演示就此結束，您現在可以斷開連接。

Have a wonderful day.

祝你有美好的一天。