聯華電子 (UMC) 2005 Q2 法說會逐字稿

Hello.

你好。

My name is Shawn and I will be facilitating the conference call today.

我叫肖恩，我將主持今天的電話會議。

I would like to welcome everyone to UMC's second-quarter 2005 earnings conference call.

我歡迎大家參加聯華電子 2005 年第二季財報電話會議。

All lines have been placed on mute to prevent background noise.

所有線路均已靜音，以防止背景噪音。

After the presentation there will be a question-and-answer period.

演講結束後將有問答環節。

Please follow the instructions given at that time if you would like to ask a question.

如果您想提問，請按照當時給出的說明進行操作。

The conference call is also being broadcast live over the Internet.

電話會議也透過網路進行現場直播。

A replay of the call will be available at www.UMC.com under the Investor Relations/Investor Events section.

電話會議的重播可在 www.UMC.com 的投資者關係/投資者活動部分查看。

This will be available until Tuesday, September 27, 2005.

該服務有效期至 2005 年 9 月 27 日星期二。

A telephone replay of the call will be available from 10:00 AM on July 27, 2005 until midnight on July 28, 2005 Eastern daylight time.

電話重播將於東部夏令時間 2005 年 7 月 27 日上午 10:00 至 2005 年 7 月 28 日午夜期間提供。

To access the replay please call 888-286-8010 or 617-801-6888 if you are calling from outside the U.S.

若要觀看重播，請致電 888-286-8010 或 617-801-6888（如果您從美國境外致電）。

The access code will be 82545812.

訪問代碼為 82545812。

I would now like to introduce Mr. Chitung Liu, Finance Director of UMC.

現在我想介紹一下聯華電子財務長劉啟東先生。

Mr. Liu, you may begin.

劉先生，您可以開始了。

Thank you.

謝謝。

Hello, everyone.

大家好。

Thank you for joining us today.

感謝您今天加入我們。

I am Chitung and I am the Finance Director here at UMC.

我是 Chitung，是 UMC 的財務總監。

Before we start our second-quarter 2005 conference call I need to take a few seconds to go over our Safe Harbor policy.

在我們開始 2005 年第二季電話會議之前，我需要花幾秒鐘回顧我們的安全港政策。

Certain statements made during the course of our discussion today may constitute forward-looking statements that are based on management's current expectations and beliefs 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。公司控制。

For these risks please refer to UMC's filings with the securities authorities in the U.S. and the ROC.

對於這些風險，請參閱聯華電子向美國和中華民國證券監管機構提交的文件。

Joining me today is the CEO of UMC, Dr. Jackson Hu, and CFO, Mr. Stan Hung.

今天與我一起出席的是聯華電子執行長 Jackson Hu 博士和財務長 Stan Hung 先生。

Now I would like to turn the call over to Jackson.

現在我想把電話轉給傑克森。

Thank you, Chitung.

謝謝你，吉東。

I would like to welcome everyone to our second-quarter conference call.

我歡迎大家參加我們的第二季電話會議。

We appreciate your participation on this call and your interest in UMC.

我們感謝您參與本次電話會議以及您對 UMC 的興趣。

As usual I will start with a quick overview of the past quarter.

像往常一樣，我將首先快速回顧過去的季度。

Before we move into the Q&A session, which we always like to devote the most amount of time to, I will give you a few of my thoughts on how we are performing in relation to our strategy and then conclude by providing some insight on where we think we are heading in the third quarter.

在我們進入問答環節（我們總是喜歡在問答環節上投入最多時間）之前，我將向您提供一些我對我們在戰略方面的表現的想法，然後通過提供一些關於我們在哪些方面的見解作為結論。我認為我們將在第三季度取得進展。

First of all I am pleased to inform you that Q2 was indeed the end of inventory correction and Q3 will be the beginning of another growth period.

首先我很高興地通知大家，第二季確實是庫存調整的結束，第三季將是另一個成長期的開始。

At the end of Q2 we have noticed that the demand of wireless and wireline communications have both increased.

在第二季末，我們注意到無線和有線通訊的需求均增加。

According to our customers, demand for cell phones will be much higher in the second half than the first half.

根據我們的客戶反映，下半年手機的需求量將遠高於上半年。

ADSL and FPTA products also have healthy demand recovery.

ADSL和FPTA產品也有健康的需求復甦。

In the computer category, chipset demand has been strong.

在電腦領域，晶片組需求一直強勁。

Finally in the consumer sector, LCD drivers DVD and MP3 products all have strong demand.

最後在消費領域，液晶驅動DVD和MP3產品都有強勁的需求。

Overall thinking our Q2 performance has exceeded our original guidance slightly.

總體而言，我們第二季的表現略微超出了我們最初的指導。

We will give you the details later.

我們稍後會向您提供詳細資訊。

In Q2, we have successfully merged UMCi, our Singapore subsidiary.

第二季度，我們成功合併了新加坡子公司UMCi。

It will be named Fab 12i from now on.

從現在起它將被命名為 Fab 12i。

This consolidation allows us to further enhance our ability to serve our customers.

此次合併使我們能夠進一步增強為客戶服務的能力。

From a product and technology trend point of view, we have noticed some important developments.

從產品和技術趨勢的角度來看，我們注意到一些重要的發展。

That is 90 nanometer allowed more and more SoC product to become reality.

也就是說90奈米讓越來越多的SoC產品成為現實。

For example, at least two companies have announced that they will have single chip GSM products that integrate the baseband and RF transceiver.

例如，至少有兩家公司宣布將推出整合基頻收發器的單晶片GSM產品。

This is a development that the design community has been long awaiting for many years actually.

這其實是設計界多年來期待已久的發展。

Due to small size, low-power, and cost-effectiveness offered by 90 nanometer, it will further extend to sell through market especially the low-end market.

由於90奈米尺寸小、功耗低、性價比高，將進一步延伸銷售市場尤其是低端市場。

As another example, we have also seen wireless LAN 802.11 A/B/G and Bluetooth product that integrates the baseband and RF.

再例如，我們也看到了無線LAN 802.11 A/B/G以及整合基頻和射頻的藍牙產品。

Two years ago UMC started to transform itself from a traditional foundry that focused on process development and manufacturing only into a foundry that offers SoC solutions to customers.

兩年前，聯華電子開始從專注於製程開發和製造的傳統代工廠轉型為為客戶提供SoC解決方案的代工廠。

This transformation has accomplished its initial goals and we've started to benefit from it.

這一轉變已經實現了最初的目標，我們已經開始從中受益。

Today we have multiple 90 nanometer customers and a product that are at a different stage of the product lifecycle including designs, prototype verification, and prototype manufacturing.

如今，我們擁有多個 90 奈米客戶和處於產品生命週期不同階段（包括設計、原型驗證和原型製造）的產品。

Besides those that have been in production.

除了那些已經投入生產的。

We expect to see the revenue impact once these products are ready for production ramp.

一旦這些產品準備好投入生產，我們預計就會看到收入影響。

It is also worthwhile to mention that we have successfully delivered working 65 nanometer product samples to our customer and we are working on 45 nanometer technology development.

另外值得一提的是，我們已經成功向客戶交付了 65 奈米產品樣品，我們正在致力於 45 奈米技術開發。

Now let me get started with the summary of our Q2 results.

現在讓我開始總結第二季的結果。

After a challenging first quarter, the second quarter proved to be quite tough as well.

在經歷了充滿挑戰的第一節之後，第二節也變得相當艱難。

But we are convinced that we are emerging from the bottom of the cycle.

但我們堅信，我們正在走出週期的底部。

In the second quarter, revenue declined 4.2% sequentially to NT19.44 billion or US$650 (ph) million.

第二季營收季減 4.2%，至 194.4 億新台幣，即 6.50 億美元。

The drop was mainly due to a 9% sequential decrease in our blended average selling price.

下降的主要原因是我們的混合平均售價季減了 9%。

While this was primarily a result of a fairly large increase in shipments of lightning technology nodes, it is also a reflection of softer demand towards the leading-edge as customers continue the clean up of their inventories.

雖然這主要是由於閃電技術節點的出貨量大幅增加，但這也反映出隨著客戶繼續清理庫存，對領先技術的需求疲軟。

Net income decreased to NT$299 million or US$9 million.

淨利潤減少至新台幣 2.99 億元或 900 萬美元。

Expenses related to the UMCi merger and our typically high fixed costs were the main reasons for the decline.

與 UMCi 合併相關的費用和我們通常較高的固定成本是下降的主要原因。

EPS was NT$0.02 and EPADS was US$0.003.

EPS為新台幣0.02元，EPADS為0.003美元。

Two particular bright spots for the quarter which also happened to factor into our reasons for believing that we are entering an upturn are that wafer shipments increased 12% to 630,000 8-inch equivalent wafers and the percentage of revenue from 90 nanometer technology increased to 9% from 7%.

本季度的兩個特別亮點也恰好成為我們相信我們正在進入好轉的原因之一：晶圓出貨量增長12％，達到63 萬片8 英寸等效晶圓，90 奈米技術的收入百分比增長到9 ％ 7%起。

Heading into the third quarter, our business is heating up.

進入第三季度，我們的業務正在升溫。

We are anticipating a pickup in revenue as we expect a mid-teen percentage increase in wafer shipments and a low single digit improvement in ASP.

我們預計收入將回升，因為我們預計晶圓出貨量將出現百分之十左右的成長，而平均售價將出現低個位數的成長。

Also we might still see a small operating loss in the third quarter since our fixed costs remain quite high.

此外，由於我們的固定成本仍然很高，因此第三季我們可能仍會出現小幅營運虧損。

We do believe that we have touched the bottom.

我們確實相信我們已經觸底。

We plan to push hard at the leading-edge by continually increasing the use and performance of our 90 nanometer node and we are also placing a great amount of effort into diversifying and broadening our customer base to both the PC and consumer markets.

我們計劃透過不斷提高 90 奈米節點的使用和性能來努力保持領先地位，我們還投入大量精力使我們的客戶群多樣化並擴大到 PC 和消費市場。

Now onto our Q3 guidance.

現在進入我們的第三季指引。

Quarter-over-quarter comparison, wafer shipments to increase by mid-teen percentage points; wafer ASP in U.S. dollars to increase by low single digits percentage points.

與上一季相比，晶圓出貨量增加了 10 個百分點左右；以美元計的晶圓平均售價將成長低個位數百分點。

Capacity utilization rates approximately 75%.

產能利用率約75%。

Profitability operating profit margins to be 0% to -3%.

獲利能力營運利潤率為0%至-3%。

Percentage of 0.18 micron and below revenues to reach 60% (ph), while 90 nanometer is expected to be approximately 15%.

0.18微米及以下的營收比例將達到60%（ph），而90奈米預計約為15%。

From application point of view the communications segment is expected to be the strongest, followed by the consumer and the computer segments. 2005 CapEx budget now is as -- will be around US$1 billion dollars U.S.

從應用的角度來看，通訊領域預計將是最強的，其次是消費者和電腦領域。 2005 年資本支出預算目前約 10 億美元

So finally I needed to mention that within the visibility that we have, Q4 should be a better quarter then Q3.

所以最後我需要提到的是，在我們現有的可見度範圍內，第四季應該比第三季更好。

So that concludes my comments.

我的評論到此結束。

Thank you again for attending today's teleconference and we certainly appreciate your continued interest in and support of UMC.

再次感謝您參加今天的電話會議，我們非常感謝您對聯華電子的持續關注和支持。

We will now take your questions.

我們現在將回答您的問題。

Thank you.

謝謝。

(OPERATOR INSTRUCTIONS) Mehdi Hosseini, FBR.

（操作員說明）Mehdi Hosseini，FBR。

I have two questions.

我有兩個問題。

First regarding your commentary regarding the Q4 being better then Q3, are you implying that wafer shipments will be better or that wafer shipments growth rate?

首先，關於您對第四季優於第三季的評論，您是在暗示晶圓出貨量會更好還是晶圓出貨量成長率會更好？

And a follow-up question has to do with the wafer starts so far in Q3, if you could please elaborate on how the trend looks like so far in the month of July?

後續問題與第三季迄今為止的晶圓開工有關，您能否詳細說明一下 7 月迄今為止的趨勢如何？

Thank you.

謝謝。

Yes.

是的。

I was referring to the demand, that we have the visibility that the Q4 demand will be stronger than Q3 and without getting into the nitty-gritty details, that wafer starts is increasing on a weekly basis.

我指的是需求，我們可以看到第四季度的需求將強於第三季度，並且無需深入了解細節，晶圓開工量每週都在增加。

Sure, and maybe just a follow-up question.

當然，也許只是一個後續問題。

Your utilization rates improved 35% Q3 and based on improving demand in Q4 it probably will go higher.

第三季的利用率提高了 35%，根據第四季度需求的改善，利用率可能會更高。

What is going to be the trigger point to accelerate capacity addition?

加速產能擴張的觸發點是什麼？

Actually we have just finished the capacity expansion plan recently that will cover up until the middle of next year and so that is why pretty much they decided that the spending for the rest of the year totally basically the CapEx in cash basis will be around US$1 billion.

實際上，我們最近剛完成了產能擴張計劃，該計劃將涵蓋到明年年中，因此他們幾乎決定今年剩餘時間的支出基本上以現金為基礎的資本支出將在 1 美元左右十億。

Great, thank you.

太好了謝謝。

Shailesh Jaitly, Nomura Securities.

Shailesh Jaitly，野村證券。

Firstly one clarification.

首先澄清一點。

UMCi, what are the process geometries being made at UMCi?

UMCi，UMCi 的製程幾何形狀是怎樣的？

0.13 micron, 90 nanometer, and the smaller geometries.

0.13 微米、90 奈米以及更小的幾何形狀。

Okay and what is a possible reason as to why UMCi's utilizations are significantly lower than the profit average?

好的，UMCi 的利用率明顯低於利潤平均值的可能原因是什麼？

Because we extended capacity significantly last year and then customers 90 nanometer products take longer especially due to the inventory correction -- it caused us some delay.

因為我們去年大幅擴大了產能，然後客戶的 90 奈米產品需要更長的時間，特別是由於庫存調整——這給我們帶來了一些延遲。

Okay.

好的。

Particularly your 0.13 micron decline, what you have seen in the current quarter that is about 33% decline.

特別是 0.13 微米的下降，本季下降了約 33%。

What are the product segments where you are seeing the declines and what are the chances of this reversing in the next quarter?

您看到哪些產品領域下降？下個季度這種情況扭轉的可能性有多大？

The 0.13 micron percentage decline was contributed by two reasons.

0.13 微米百分比下降有兩個原因。

One is inventory correction for cell phone products.

一是手機產品的庫存調整。

Another one was contributed by the competitiveness of some customers and especially in the cell phone industries that you probably already know who is not doing well and therefore their suppliers got affected.

另一個原因是一些客戶的競爭力，特別是在手機行業，你可能已經知道誰做得不好，因此他們的供應商受到了影響。

So it was largely related to the wireless communication segments?

那麼這很大程度上與無線通訊領域有關嗎？

I would say so because in the consumer segments, DVD and MP3 actually we start to see increasing demand.

我之所以這麼說，是因為在消費領域，DVD 和 MP3 其實我們開始看到需求不斷成長。

Finally, if you could just share with us the capacity what you have located to the LCD driver in the current quarter -- that is the previous quarter in terms of wafers per month if it is possible?

最後，您能否與我們分享本季 LCD 驅動器的產能——如果可能的話，即上一季每月晶圓數量？

Can you repeat your question again?

你能再重複一次你的問題嗎？

The LCD driver allocation on --?

LCD驅動配置對--？

Yes, capacity, what goes towards the LCD driver in Q2?

是的，產能，第二季 LCD 驅動器的走向如何？

It is between 15 to 20%

介於 15% 到 20% 之間

And what proportion of revenue does LCD driver account for right now?

目前LCD驅動器佔營收比例是多少？

Low teens.

低青少年。

Low teens, thank you.

青少年時期，謝謝。

Robert Maire, Needham Company.

羅伯特‧梅爾，李約瑟公司。

Yes.

是的。

You mentioned in your comments that there were issues of high-end inventory which made you have substantially more orders for low-end trailing edge product.

您在評論中提到，高端庫存存在問題，這使得您對低端後緣產品的訂單大幅增加。

Is that high-end inventory gone now?

高端庫存現在沒了嗎？

Was that gone in the quarter or do you expect that higher end inventory to continue into the current quarter?

這種情況在本季消失了嗎？還是您預期高端庫存會持續到本季？

As far as we understand, the inventory correction has ended and therefore some of the high-end products demand will resume.

據了解，庫存調整已經結束，部分高階產品需求將會恢復。

Of course except those ones that failed in the industry and it will take them longer to recover, probably longer than a few quarters.

當然，除了那些在行業中失敗的企業之外，它們需要更長的時間才能恢復，可能需要幾個季度以上的時間。

Okay and of the decline in ASP, about what amount or what percentage would you say was due to this sort of product mix issue versus competitive pricing issues?

好的，關於平均售價的下降，您認為這種產品組合問題與競爭性定價問題造成的下降量或百分比是多少？

In other words was most of the ASP issue related to product mix or was most of the ASP pricing due to a highly competitive market for these products?

換句話說，大部分 ASP 問題與產品組合有關，還是大部分 ASP 定價是因為這些產品的市場競爭激烈所致？

I think the majority is due to product mix.

我認為大部分是由於產品組合造成的。

Okay, great.

好的，太好了。

Thank you.

謝謝。

Pranab Sarmah, Daiwa Securities.

Pranab Sarmah，大和證券。

I have a couple of follow-up questions from today's evening conference.

我有幾個關於今天晚間會議的後續問題。

Number one is you have stressed on the SoC development and could you elaborate a little bit how many percentage of your second quarter '05 revenue at 90 nanometer was at SoC and how that segment is going to increase over the next two or three quarters?

第一，您強調 SoC 開發，您能否詳細說明一下 05 年第二季 90 奈米收入中有多少百分比來自 SoC，以及該細分市場在未來兩到三個季度將如何成長？

The percentage in the current quarter is very, very small and therefore we expect good growth over the next few quarters.

當前季度的百分比非常非常小，因此我們預計未來幾季將出現良好成長。

And could you explain or make us understand what is the profitability difference between SoC, 90 nanometer versus normal 90 nanometer wafer? (multiple speakers)

您能否解釋或讓我們了解 SoC、90 奈米與普通 90 奈米晶圓之間的獲利能力差異是什麼？ （多個發言者）

Yes, over there it does not necessarily have a direct correlation.

是的，那邊不一定有直接的相關性。

SoC usually stands for or implies a higher level of integration and also implies for a higher degree of difficulty.

SoC通常代表或暗示更高的整合度，也暗示更高的難度。

And because of the higher degree of integration the die size tends to be large and it tends to use more wafers.

由於整合度更高，晶片尺寸往往會變大，並且往往會使用更多的晶圓。

SoC usually refers to logic plus mix mode or logic plus RF integration versus the purely 90 nanometer logic.

SoC 通常指邏輯加混合模式或邏輯加 RF 集成，而不是純 90 奈米邏輯。

That is mainly the difference.

主要就是這個差別。

And as far as the process technology is concerned, capable event companies can utilize our regular logic process and implement the mix mode and RF.

而就流程技術而言，有能力的活動公司可以利用我們常規的邏輯流程，實現混合模式和RF。

So from a cost structure standpoint, it is pretty much the same.

因此，從成本結構的角度來看，兩者幾乎相同。

It all depends on the die size.

這一切都取決於晶片尺寸。

I hope I am clear.

我希望我說清楚了。

That is clear very much.

這非常清楚。

You mentioned about you have seen the bottom of the current cycle and see the recovery will continue.

您提到您已經看到當前週期的底部，並看到復甦將繼續。

When do you think this cycle is going to peak in your opinion?

您認為這個週期什麼時候會達到高峰？

That is a tough question.

這是一個很難回答的問題。

According to the market analysts such as ITI report, they expect that 2006, '07, and '08 are all strong growth years.

根據ITI等市場分析師的報告，他們預計2006年、'07年和'08年都是強勁成長年。

The last one is on your graphics strategy.

最後一項是關於你的圖形策略。

Where your graphic products are at this point and how do you think that you will be able to get more customers on that area?

您的圖形產品目前處於什麼位置？您認為如何在該領域獲得更多客戶？

The strategy is to offer competitive product technology and good manufacturing yield so that they can become competitive and I think we are on the way along those directions.

我們的策略是提供有競爭力的產品技術和良好的製造產量，以便它們具有競爭力，我認為我們正在沿著這些方向前進。

Could we expect any contribution from the graphics on the advanced technology node in -- this year, 2005?

我們能否期待 2005 年先進技術節點上的圖形能做出任何貢獻？

This year may be minimal, but definitely next year.

今年可能是最小的，但肯定是明年。

Thank you very much.

非常感謝。

Mark FitzGerald, Banc of America.

馬克·菲茨杰拉德，美國銀行。

I was curious if you could give us given your capital spending what has been finalized here, how you are thinking about bringing on capacity over the next couple of quarters and into 2006 if you have that visibility?

我很好奇您能否向我們介紹一下您的資本支出情況，以及您是否考慮在接下來的幾個季度以及 2006 年提高產能（如果您有這樣的了解）？

As I mentioned earlier I believe we have recently finished our capacity expansion plan and based on customers forecasts and also customers product readiness.

正如我之前提到的，我相信我們最近已經根據客戶的預測和客戶的產品準備完成了產能擴張計劃。

And we decide how much additional capacity that we should use.

我們決定應該使用多少額外容量。

And as a matter of fact we do that exercise on a monthly basis but we do not necessarily shake our (ph) additional plan on a monthly basis.

事實上，我們每月都會進行這項練習，但我們不一定每月都會動搖我們的（ph）額外計劃。

And can you give us any visibility on what your 2006 spending plans might be at this point?

您能否向我們透露一下您 2006 年目前的支出計畫？

We do not have that figure at this moment.

目前我們沒有這個數字。

Hopefully close to the end of the year that is another time that we may trigger the next level of decisions.

希望在接近年底的時候我們可以觸發下一個層次的決策。

Okay and just on the UMCi here as you've rolled this into your own estimates here, has that had any impact on your ASPs?

好的，就 UMCi 而言，您已將其納入您自己的估計中，這對您的 ASP 有任何影響嗎？

On the ASP, no.

在 ASP 上，沒有。

What do you mean?

你是什​​麼意思？

For each given technology node, the 0.13 or 90 nanometer should have some of our ASP as our 12-inch fab in Tainan.

對於每個給定的技術節點，0.13 或 90 奈米應該有我們的一些 ASP 作為我們在台南的 12 吋晶圓廠。

Okay, but the UMCi in Singapore was that included in ASP calculations in prior quarters?

好的，但是新加坡的 UMCi 是否已包含在前幾季的 ASP 計算中？

Oh yes.

哦是的。

Thank you.

謝謝。

Bhavin Shah, JP Morgan.

巴文·沙阿，摩根大通。

Can I ask a question on the share count, because the treasury stock is a pretty large position?

我可以問一個關於股票數量的問題嗎，因為庫存股的部位相當大？

Can I assume that your shares outstanding is basically in that capital stock, minus treasury stock?

我可以假設您的流通股基本上是股本減去庫存股嗎？

And what do you also plan to do with the treasury stock because it has a pretty large position?

由於庫存股的部位相當大，您還打算如何處理它？

The share number we reported in our quarterly report did take out the treasury stock already.

我們在季度報告中報告的股票數量確實已經扣除了庫存股。

It did not count the treasury stocks.

它沒有計算庫存股。

Right.

正確的。

So then the treasury stock is about -- almost 20% of the capital stock.

那麼庫存股大約佔股本的 20%。

That's a pretty large position.

這是一個相當大的位置。

Any thoughts on what you plan to do with that?

你有什麼想法嗎？

The reason treasury stock buyback we plan to use for reissuings through a euro convertible.

我們計劃將庫存股回購用於透過歐元可兌換債券重新發行的原因。

That is about 500 million shares.

也就是大約5億股。

Right.

正確的。

The reason I asked the question -- sorry to be -- but if I go back to first quarter, your statement, if I subtract the treasury stock from capital stock, I end up with about 150 billion shares I guess.

我問這個問題的原因——抱歉——但如果我回到第一季度，你的陳述，如果我從股本中減去庫存股，我猜我最終會得到大約 1500 億股。

But you have used -- I'm sorry, 15 billion shares -- but you have used 16.6 so I am trying to figure out where the difference is coming from.

但你已經使用了——對不起，150 億股——但你已經使用了 16.6，所以我試著找出差異來自哪裡。

We can provide you with more a detailed calculation after the call if you like.

如果您願意，我們可以在致電後為您提供更詳細的計算。

Okay, thanks.

好的謝謝。

Fayad Abbasi, Prudential Equity Group.

Fayad Abbasi，保德信股票集團。

Good evening.

晚安.

I wanted to ask a couple of questions.

我想問幾個問題。

One was on the 90 nanometer.

其中之一是 90 奈米。

You're looking for about 15% in Q3 and yet we're still only seeing like a very small overall improvement in ASP.

您預計第三季將成長約 15%，但我們仍然只看到 ASP 的整體改善非常小。

So I was just wondering, at what point do you expect UMC to start contributing positively to your blended average ASPs?

所以我只是想知道，您預計 UMC 在什麼時候開始為您的混合平均 ASP 做出積極貢獻？

The second question is in terms of sort of the end markets that you are targeting to help fill up UMCi, what sort of products or end markets are you focused on?

第二個問題是，您的目標是幫助填補 UMCi 的終端市場類型，您關注的是哪種產品或終端市場？

Okay, to answer your first question I think we expect to have a significant contribution of 90 nanometer to the ASP probably in Q1 of 2006.

好的，回答你的第一個問題，我認為我們預計 90 奈米技術可能會在 2006 年第一季對 ASP 做出重大貢獻。

And UMCi, actually the 12i I should say from on, actually covers all kinds of applications.

而UMCi，實際上我應該說的12i，實際上涵蓋了所有類型的應用程式。

So it is not a specific one for any application.

因此它不是針對任何應用程式的特定應用程式。

Are there particular applications that you are most focused on though over the next four or six quarters that you expect to come on board that would help get those utilization ups?

在接下來的四到六個季度中，是否有您最關注的特定應用程序，您預計這些應用程式的加入將有助於提高利用率？

It pretty much covers all of them.

它幾乎涵蓋了所有這些。

Across the board?

全面嗎？

The Fab 12i for your information has become one of the more attractive for many customers as they consider this a very neutral plate.

僅供參考的 Fab 12i 已成為對許多客戶更具吸引力的板材之一，因為他們認為這是一種非常中性的板材。

It has no natural disaster and that is one thing we noticed that more and more customers would like to go there or may have their products manufactured there.

它沒有自然災害，這是我們注意到的一件事，越來越多的客戶願意去那裡或可能在那裡生產他們的產品。

Okay, great.

好的，太好了。

Thanks.

謝謝。

Shailesh Jaitly, Nomura Securities.

Shailesh Jaitly，野村證券。

And they have disconnected.

他們已經斷線了。

Your next question comes from the line of Chong How Ong with S.G.

你的下一個問題來自 Chong How Ong 和 S.G.

Asset Management.

資產管理。

Good evening.

晚安.

I have just got two questions here.

我剛才有兩個問題。

There's about 600 million CapEx that you will spend in the second half but your capacity doesn't change in 3Q and 4Q.

下半年你將花費大約6億的資本支出，但你的產能在第三季和第四季沒有變化。

When will it achieve the capacity?

什麼時候能達到產能？

Will it be in 2Q '06?

會在 06 年第二季嗎？

It will show between Q1 and Q2 of '06.

它將在 06 年第一季和第二季之間顯示。

Q1 and Q2 '06, right.

06 年第一季和第二季度，對。

The other thing I need to check with you is the ECB.

我需要向您核實的另一件事是歐洲央行。

What is the proposal of ECB since you have got 2 billion in cash?

既然你有20億現金，歐洲央行有什麼建議？

So far the share prices have done very well in stock buyback but if you do the ECB well, you have 2 billion cash.

到目前為止，股價在股票回購方面表現得很好，但如果歐洲央行做得好，你就有20億現金。

I don't know how that can affect the sentiment on your share price.

我不知道這會如何影響您的股價情緒。

I think they did the ECB because it is so far out -- (indiscernible) only a certain percent of all UMCi outstanding shares.

我認為他們選擇歐洲央行是因為它還很遙遠——（難以辨認）只佔所有 UMCi 流通股的一定比例。

So we want to return to enlarge now our APR (indiscernible).

所以我們現在想返回放大我們的年利率（音訊不清晰）。

So we use this trigger stock reissue to enlarge our APR liquidity in that pool.

因此，我們利用此觸發股票重新發行來擴大該池中的年利率流動性。

Right, so you're doing the ECB instead of selling your treasuries by AD pool (ph)?

是的，所以您正在做歐洲央行而不是透過AD池（ph）出售您的國債？

Yes.

是的。

And the logic being if your process is to enlarge the AD pool?

邏輯是，如果您的流程是擴大 AD 池？

The treasury stock we bought back, the original purpose was issue for employee as options and as you may understand that whenever an employee receives the option and the options is in the money, they will quickly exercise those options.

我們回購的庫存股，最初的目的是作為期權發行給員工，你可能會理解，每當員工收到期權並且期權是實值的時，他們就會很快行使這些期權。

And we are potentially providing more selling pressure in the local markets and as our CFO just mentioned, the UMCi program is only 7% of the total share outstanding.

我們可能會在當地市場提供更大的銷售壓力，正如我們的財務長剛才提到的，UMCi 計劃僅佔已發行股份總數的 7%。

We have decided if we reissue the treasury stocks through their convertible bond, eventually when they get converted, we only allow the bondholder to convert into ADS.

我們決定是否透過可轉換債券重新發行庫存股，最終轉換時，我們只允許債券持有人轉換為ADS。

So the selling pressure will be moving from local market to the ADS market and in a more gradual manner over the period of next 2.5 years.

因此，在未來 2.5 年內，拋售壓力將從本地市場轉移至 ADS 市場，並以更漸進的方式轉移。

So we do feel it really helps to stabilize the liquidity point of view for the local market and at the same time enlarge our ADR pools.

因此，我們確實認為這確實有助於穩定當地市場的流動性，同時擴大我們的 ADR 池。

Right, okay.

對了，好吧。

So it is just a gradual release of ADR into shares to enlarge the pool?

那麼這只是逐步釋放ADR入股以擴大資金池？

Right.

正確的。

At the end of the convertible bond lifecycle, if the bondholder did not convert, by laws we would definitely have to cancel those treasury stocks.

在可轉換債券生命週期結束時，如果債券持有人沒有轉換，根據法律我們肯定必須取消這些庫存股。

Right, okay.

對了，好吧。

Thank you.

謝謝。

Thanks a lot.

多謝。

(OPERATOR INSTRUCTIONS) Dan Heyler, Merrill Lynch.

（操作員說明） Dan Heyler，美林證券。

Thanks.

謝謝。

Based on your capital spending estimates on a cash basis, roughly 300 million over the next -- per quarter, 600 million in the second half.

根據您對現金基礎上的資本支出估計，接下來每季約 3 億，下半年為 6 億。

I have noticed that your actual capacity is not going up too much.

我注意到你的實際容量並沒有增加太多。

Is that because what you're spending there is for technology upgrades or what is going on there?

這是因為你在那裡花的錢是用於技術升級還是那裡正在發生什麼？

That is actually for extending the capacity for higher end technologies such as 90 nanometer and 65 nanometer and for Q1 and Q2 2006 needs.

這實際上是為了擴展90奈米和65奈米等更高端技術的產能以及2006年第一季和第二季的需求。

Also, the payments may not necessarily be in line with the equipment delivery schedule.

此外，付款不一定符合設備交付時間表。

Okay.

好的。

I was wondering as you upgrade fabs and add more levels of metallization I wonder if your throughputs are also going down a bit which is pretty normal when you upgrade to advanced technologies, if that was part of the dynamic there?

我想知道當你升級晶圓廠並增加更多金屬化水平時，我想知道你的吞吐量是否也會下降一點，當你升級到先進技術時，這是很正常的，如果這是動態的一部分？

That should be part of the consideration as well.

這也應該是考慮的一部分。

Okay, so would the 600 million or so be weighted towards more the latter half of the fourth quarter and if so, then what would the capacity growth be in the first quarter?

好吧，那麼這 6 億左右是否會更多地分配到第四季度後半段，如果是這樣，那麼第一季的產能成長會是多少？

We don't have that numbers of the top of our heads.

我們腦子裡沒有這個數字。

We hope we can provide you that information next time but the payment will be probably close to Q4.

我們希望下次能夠為您提供該信息，但付款可能會在第四季度左右完成。

Okay.

好的。

And is most of that 600 million going to Fab 12i or expansion of 12?

這 6 億美元中的大部分將用於 Fab 12i 或 Fab 12 的擴建？

Both. 12i probably more.

兩個都。 12i 可能更多。

12i probably more.

12i 可能更多。

Okay, thank you.

好的謝謝。

Mark FitzGerald, Banc of America.

馬克·菲茨杰拉德，美國銀行。

I'm just curious -- did you guide gross margins to flat to down 3% for the next quarter?

我只是好奇——你們是否將下個季度的毛利率控制在持平甚至下降 3% 的水平？

Is that what I heard?

這是我聽到的嗎？

Pricing profit margin.

定價利潤率。

Operating profits?

營業利潤？

Operating profit margins likely to be 0% or -3%

營業利益率可能為 0% 或 -3%

Okay and would we expect the expenses to be flattish into the fourth quarter as well?

好吧，我們預期第四季的支出也會持平嗎？

Operating expenses, yes.

營運費用，是的。

Thank you.

謝謝。

Michael McConnell, Pacific Crest Securities.

麥可麥康奈爾，太平洋頂峰證券公司。

Thank you.

謝謝。

I don't know if this was already asked.

我不知道這是否已經被問過。

I got on the call late, so I apologize.

我接電話晚了，所以我道歉。

What is the utilization right now at UMCi?

UMCi 目前的使用率如何？

Below average.

低於平均值。

Significantly below average or could you give a little --?

明顯低於平均水平，或者你能給出一點——？

Less than 50%

低於50%

So this will be a drag for how long do you think on the operating profit margins?

那麼您認為這會對營業利潤率造成多久的拖累？

When do you expect to get that above average timeframe in terms of a quarter maybe?

您預計什麼時候能夠達到高於季度平均的時間範圍？

Probably one quarter, at most, two.

大概四分之一，最多兩個。

Okay so, earliest by Q4 then, latest by Q1 or -- ?

好的，那麼，最早到第四季度，最遲到第一季度，或－－？

Yes.

是的。

Okay, thank you.

好的謝謝。

I'm showing no further questions at this time -- I apologize.

我現在不會再提出任何問題——我很抱歉。

I do have more questions.

我還有更多問題。

Bhavin Shah, JP Morgan.

巴文·沙阿，摩根大通。

Could you comment on price and wireless pricing?

您能評論一下價格和無線定價嗎？

Are you seeing on your new contracts -- what are you seeing on pricing on different nodes?

您在新合約上看到了什麼——您在不同節點上的定價上看到了什麼？

On different nodes -- on the legacy (ph) nodes, it is pretty much has stabilized.

在不同的節點上－在舊的（ph）節點上，它幾乎已經穩定下來。

As a matter-of-fact on the high end there is not much room for negotiation either.

事實上，高端也沒有太大的談判空間。

So at this moment I would say it is pretty stable and our ASP will increase mainly due to product mix improvement.

所以目前我想說它非常穩定，我們的平均售價將主要因為產品組合的改進而增加。

Right.

正確的。

There is always some lag effect between price change and also on the ASP because some of the prices that have been negotiated are still negotiable for subsequent quarters.

價格變化與平均售價之間總是存在一定的滯後效應，因為一些已經協商好的價格在後續季度仍然可以協商。

So the effect of this sort of stable pricing that you are beginning to see, when do you first benefit from that?

那麼，您開始看到這種穩定定價的效果，您什麼時候首先從中受益？

Is it in third quarter itself or do you think it is Q4 or Q1?

是第三季本身還是您認為是第四季或第一季？

I think it is starting from Q3, we will see the benefits on a quarterly to quarterly basis.

我認為從第三季開始，我們將每季看到收益。

Okay, thank you.

好的謝謝。

Ivan Goh, Dresdner Kleinwort Wasserstein.

Ivan Goh，德累佳華。

I have two questions.

我有兩個問題。

Firstly can you give an idea of how I should model depreciation going into 2006?

首先，您能否介紹一下我應該如何對 2006 年的折舊進行建模？

It largely depends on how much money we're going to spend from this point onward.

這很大程度上取決於從現在開始我們要花多少錢。

With our firm CapEx number for '06, it is a bit difficult to comment.

鑑於我們確定的 06 年資本支出數字，很難發表評論。

But for the third quarter and fourth quarter each month we are talking about approximately NT$$4 billion of depreciation expenses and without no more CapEx spending patterns, the number should stay flat for first half of 2006.

但對於每個月的第三季和第四季度，我們討論的折舊費用約為新台幣 40 億元，如果沒有更多的資本支出支出模式，這個數字在 2006 年上半年應該會保持不變。

Okay and one question also on tax.

好的，還有一個關於稅的問題。

Can you perhaps give an idea of how the tax situation would go in the second half of this year?

能否介紹一下今年下半年的稅務狀況？

We do not expect to pay any tax given the tax credit we have on hand.

鑑於我們現有的稅收抵免，我們預計不會繳納任何稅款。

There might be upcoming tax scheme change coming from the Taiwan Government, but there is no detail at the current stage.

台灣政府可能即將改變稅收計劃，但現階段還沒有細節。

Okay and I have a last question and that regards 90 nanometer utilization.

好的，我還有最後一個問題，與 90 奈米的利用率有關。

Can you perhaps give an idea of what is your utilization at your 90 nanometer capacity in the Q3 and Q4?

能否介紹一下 Q3 和 Q4 中 90 奈米產能的利用率是多少？

You mean the utilization of the available 90 nanometer capacity?

您是指可用的 90 奈米容量的利用率嗎？

Yes, specifically yes.

是的，特別是。

It is pretty much fully utilized.

它幾乎被充分利用。

I am trying to reconcile that with also the statement that UMCi's utilization is less than 50%.

我試圖將這一點與 UMCi 的利用率低於 50% 的說法相一致。

How should I make the two things work together?

我應該如何讓這兩件事一起工作？

90 nanometer production first starts in 12A, in the Tainan fab so 12i at this moment is not equipped to do much of the 90 nanometer yet.

90 奈米生產首先在台南工廠的 12A 開始，因此 12i 目前還沒有能力完成 90 奈米的大部分工作。

I see.

我懂了。

So all the installations at UMCi right now is 0.13?

那麼現在 UMCi 的所有安裝都是 0.13 嗎？

Yes, most of them.

是的，大多數。

Right.

正確的。

Thank you for explaining that.

謝謝你的解釋。

Shailesh Jaitly, Nomura securities.

Shailesh Jaitly，野村證券。

I apologize in advance in case you have already answered.

如果您已經回答，我提前表示歉意。

I lost the connection for some time.

我有一段時間失去了聯繫。

The consumer segment has seen quite a good growth in Q2, so firstly if you could explain what were the key drivers driving this number up in Q2?

消費領域在第二​​季度出現了相當好的成長，因此首先您能否解釋一下推動第二季度這一數位成長的關鍵驅動因素是什麼？

LCD demand continues to be very, very strong and we also see strong demand for DVD and digital stereo camera and MP3 products.

LCD 的需求仍然非常非常強勁，我們也看到對 DVD、數位立體相機和 MP3 產品的強勁需求。

And which of these applications do you see the momentum continuing in 3Q?

您認為哪些應用程式在第三季將持續保持強勁勢頭？

In probably DVD, MP3, and LCD (indiscernible) display.

可能在 DVD、MP3 和 LCD（聽不清楚）顯示器中。

I'm talking about the consumer sector.

我說的是消費領域。

Okay.

好的。

Finally if you could break down the communication part of your revenue between wireless and wireline for Q2?

最後，您是否可以細分第二季無線和有線收入中的通訊部分？

Yes, ratio is about 2-to-3.

是的，比例大約是2比3。

Two-thirds for wireless -- I'm sorry -- and one-third from wireline.

抱歉，三分之二用於無線，三分之一來自有線。

Okay.

好的。

And how are you seeing the momentum between the two of these going forward?

您如何看待兩者之間的發展動能？

Going forward I think wireless will still be very strong if not stronger than the current ratio.

展望未來，我認為無線即使不比目前的比率更強，仍然會非常強大。

And wireline?

還有有線？

Wireline -- demand is recovering, but I don't know whether it will be as strong as the cellphone.

有線——需求正在復蘇，但我不知道它是否會像手機一樣強勁。

Okay, thank you.

好的謝謝。

Mike McConnell, Pacific Crest Securities.

麥克麥康奈爾，太平洋頂峰證券公司。

Just a quick follow-up.

只是快速跟進。

Chitung, what should we model for nonoperating income for Q3?

Chitung，我們應該為第三季的營業外收入建立什麼樣的模式？

The Q3 nonop income is around NT$2 billion.

第三季非營業收入約新台幣20億元。

And share count?

還有份額數？

Share count is on page three of our quarterly report.

股票數量位於我們季度報告的第三頁。

It is roughly 15 billion also.

也大約是150億。

I mean modeling for Q3, don't you do the dividend?

我的意思是第三季的建模，你不分紅嗎？

We do not have that number but the dividend ratio is 10%.

我們沒有這個數字，但股息率為 10%。

Thank you.

謝謝。

I am showing no further questions at this time.

我目前沒有提出任何進一步的問題。

I would like to turn it back for any closing remarks.

我想將其轉回以供結束語。

Thank you very much.

非常感謝。

With no further questions we will conclude the call today.

沒有其他問題，我們將結束今天的通話。

Thank you for joining us.

感謝您加入我們。

If you have any additional questions please do not hesitate to contact us directly.

如果您有任何其他問題，請隨時直接與我們聯絡。

A link to the replay of this call will be available until the end of September on the Investor Relations section on the UMC website.

本次電話會議重播的連結將於 9 月底前在聯華電子網站的投資者關係部分提供。

A Taiwan version of the replay can be found by dialing 888-286-8010 or for international calls, please use the number 617-801-6888.

撥打 888-286-8010 即可觀看台灣版重播，國際電話請撥打 617-801-6888。

Thank you again and good day.

再次感謝您，祝您有美好的一天。

Ladies and gentlemen, this concludes today's presentation.

女士們、先生們，今天的演講到此結束。

You may now disconnect all lines.

現在您可以斷開所有線路。

Have a great day.

祝你有美好的一天。