聯華電子 (UMC) 2006 Q1 法說會逐字稿

Good morning, ladies and gentlemen, this is Amanda, I'll be the mediator for this conference call.

早安，女士們先生們，我是阿曼達，我將擔任本次電話會議的調解人。

I would like to welcome you to the UMC First Quarter 2006 earnings conference call. [OPERATOR INSTRUCTIONS] A replay of the call will be available at www.umc.com under the Investor Relations Investor Events section until Tuesday, July 25, 2006.

歡迎您參加 UMC 2006 年第一季財報電話會議。 [操作員說明] 電話會議的重播將於 2006 年 7 月 25 日星期二之前在 www.umc.com 的投資者關係投資者活動部分提供。

A telephone replay of the call will be available from 10 p.m. on April 26 until midnight on April 28, 2006, Eastern Standard Time.

晚上 10 點起可進行電話重播。 2006 年 4 月 26 日至 2006 年 4 月 28 日午夜（東部標準時間）。

To access the replay, please call 888-286-8010 or 617-801-6888.

如需觀看重播，請致電 888-286-8010 或 617-801-6888。

If you are calling from outside the US, the access code will be 26259920.

如果您從美國境外撥打電話，存取代碼將為 26259920。

I would like to introduce Mr. Chitung Liu, Chief Financial Officer of UMC.

我想介紹一下聯電財務長劉啟東先生。

Mr. Liu, you may begin.

劉先生，您可以開始了。

Thank you Amanda, and good morning, Ladies and Gentlemen.

謝謝阿曼達，早安，女士們先生們。

This is Chitung.We appreciate your participation in our earnings call for the first quarter of 2006.

我是 Chitung。感謝您參加我們 2006 年第一季的收益電話會議。

The way we will handle this call is as follows.

我們處理這個呼叫的方式如下。

I will start by giving an overview of our financial highlights of the previous quarter.

我將首先概述我們上一季的財務亮點。

Mr. Jackson Hu, Chairman and CEO, will follow and fill you in with a broad overview of market conditions as we see them today.

董事長兼執行長胡錦濤先生將跟隨您向您介紹我們今天所看到的市場狀況的廣泛概述。

After that, he will provide guidance for the upcoming quarter, and then we will open for questions.

之後，他將為下一季提供指導，然後我們將開放提問。

Please note that this call's results are being broadcast from our website.

請注意，本次電話會議的結果正在我們的網站上播出。

I want to remind all listeners of UMC's safe harbor policy.

我想提醒所有聽眾聯華電子的安全港政策。

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.

我們今天討論過程中所做的某些陳述可能構成基於管理層當前期望和信念的前瞻性陳述。

And 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.

並受到許多風險和不確定因素的影響，這些風險和不確定因素可能導致實際結果出現重大差異，包括可能超出公司控制範圍的風險。

For these risks, please refer to UMC's filing with the Security Authority in the US and the ROC.

對於這些風險，請參閱聯華電子向美國和中華民國安全機構提交的文件。

Okay.

好的。

Now, is our financial results for the first quarter of 2006.

現在是我們 2006 年第一季的財務表現。

The first quarter was [INAUDIBLE] slow quarter, but our results were largely in line with our expectations.

第一季是[聽不清楚]緩慢的季度，但我們的結果基本上符合我們的預期。

Revenue decreased 11.2% quarter over quarter to NT$24.38 billion from NT$27.47 billion in Q4 2005.

營收較上一季下降 11.2%，從 2005 年第四季的新台幣 274.7 億元降至 243.8 億元。

And increased 20.2% year over year from $20.29 billion in Q1 2005.

與 2005 年第一季的 202.9 億美元相比，年增 20.2%。

Gross margin was NT$3.26 billion or 13.3% of our revenue.

毛利率為新台幣32.6億元，佔營收的13.3%。

Compared to NT$4.97 billion or 18.1% of Q4 2005 revenue.

相比之下，2005 年第四季營收為新台幣 49.7 億元，佔 18.1%。

Operating profit for the quarter was NT$85 million or 0.3% of revenue.

本季營業利潤為新台幣 8,500 萬元，佔營收的 0.3%。

Compared to NT$928 million or 3.4% of Q4 2005 revenue.

相比之下，2005 年第四季營收為新台幣 9.28 億元，佔營收的 3.4%。

Lower wafer shipments, due to a seasonal order adjustment by several customers, was the primary reason for the decrease in profit and gross and operating margins during the first quarter of 2006.

由於部分客戶的季節性訂單調整，晶圓出貨量下降是 2006 年第一季利潤、毛利率和營業利潤率下降的主要原因。

Non-operating income was NT$14.09 billion.

營業外收入新台幣140.9億元。

And net income was NT$12.29 billion in Q1 2006.

2006年第一季淨利為新台幣122.9億元。

Both were significantly higher than those of Q4 2005, which is mainly due to the investment disposal gain of Hsun Chieh Investment Corp. in January of 2006.

兩者皆顯著高於2005年第四季，這主要是由於2006年1月迅捷投資公司的投資處置收益所致。

Earnings per ordinary shares, EPS, for the quarter were NT$0.67.

該季度每股普通股盈餘（EPS）為新台幣0.67元。

Earnings per ADS were US$0.103.

每份 ADS 收益為 0.103 美元。

This compares with 4Q 2005 earnings per ordinary shares of NT$0.16 and earnings per ADS of US$0.025.

相比之下，2005 年第四季每股普通股收益為新台幣 0.16 元，每股美國存託股收益為 0.025 美元。

The percentage of revenue from 90 nanometer and 0.13 nanometer business decreased to 33% quarter over quarter from 38% in Q4 2005, mainly due to soft demands from some of our customers for communication chips.

90奈米和0.13奈米業務的營收比例較上季從2005年第四季的38%下降至33%，主要是由於部分客戶對通訊晶片的需求疲軟。

The percentage of revenue from 0.18 micron and below was 66% in Q1 '06.

06 年第一季 0.18 微米及以下的收入比例為 66%。

The blended ASP decreased by 2% during Q1 '06 due to lower demand for leading edge process technologies.

由於對前沿製程技術的需求下降，2006 年第一季的混合平均售價下降了 2%。

And now I would like to turn the call over to our Chairman and CEO, Dr. Jackson Hu, who will share his view on the broader market conditions.

現在我想將電話轉給我們的董事長兼執行長胡傑克遜博士，他將分享他對更廣泛的市場狀況的看法。

After that, we will have time for Q&A.

之後，我們將有時間進行問答。

Thank you, Chitung, and thanks to everyone for joining us today.

謝謝你，Chitung，也謝謝大家今天加入我們。

Before I jump into our guidance and Q&A, I would like to spend a few minutes updating you on the market conditions that we see for Q2 and the second half of the year.

在開始我們的指導和問答之前，我想花幾分鐘向您介紹我們第二季和下半年的市場狀況。

For Q2, as a whole, we believe that demand will be in line with the seasonal norms, computer sector demand will be relatively weak due to seasonal inventory adjustments.

對於第二季整體而言，我們認為需求將符合季節性常態，電腦產業由於季節性庫存調整，需求將相對疲軟。

At the same time, we have seen handset demand start to accelerate, which is about one to two months earlier than typical seasonal trends.

同時，我們看到手機需求開始加速，這比典型的季節性趨勢早了一到兩個月。

Our understanding is that the demand for entry level handsets in developing markets such as India, Africa, Indonesia, South America, and China, will see very high growth this year.

我們的理解是，印度、非洲、印尼、南美和中國等發展中市場對入門級手機的需求今年將出現非常高的成長。

Therefore, handset related components should be in strong demand.

因此，手機相關零件的需求應該會很強勁。

In particular, our production of 90 nanometer and 0.13 micron wafers for existing customers as well as for new customers that have been recently entered while in production will increase significantly.

特別是，我們為現有客戶以及最近進入生產的新客戶生產的90奈米和0.13微米晶圓的產量將大幅增加。

In addition, it is worthwhile to note that we will start volume production for a graphic chip customer during the quarter.

此外，值得注意的是，我們將在本季開始為圖形晶片客戶進行量產。

Therefore, our visibility looking beyond to the third quarter is very good.

因此，我們對第三季的展望非常好。

And we are expecting double digit revenue growth and a large improvement in profitability starting from Q3.

我們預計從第三季開始，營收將實現兩位數成長，獲利能力將大幅提高。

We are also seeing strong demand for 65 nanometer technology and we are progressing smoothly in the rollout of this process.

我們也看到對 65 奈米技術的強勁需求，並且我們在該製程的推出方面進展順利。

UMC led all foundries with the delivery of its first 65 nanometer customer product back into June 2005.

UMC 領先所有代工廠，並於 2005 年 6 月交付了第一批 65 奈米客戶產品。

Today, two customers have started the small volume production for their 65 nanometer product.

今天，兩家客戶已開始其 65 奈米產品的小批量生產。

Furthermore, we are engaging with 8 customers and we expect 11 product takeouts before the end of this summer.

此外，我們正在與 8 家客戶合作，預計在今年夏季結束之前將有 11 家產品訂購。

So looking forward to the second quarter, here are our general expectations.

因此，展望第二季度，這是我們的整體預期。

First of all, wafer shipment will increase by 5 to 6% point.

首先，晶圓出貨量將成長5~6%。

Wafer ASP in US dollar will increase by 2.2% points.

以美元計算的晶圓平均售價將上漲 2.2%。

By the way, for both set of numbers, we are not including the possible variations or fluctuations of exchange rate.

順便說一句，對於這兩組數字，我們不包括匯率可能的變化或波動。

Capacity utilization rate will be approximately to 80%.

產能利用率約80%。

The gross profit margins will be in the high teen percentage points.

毛利率將達到十幾個百分點。

The percentage of revenue from 0.18 micron and below technologies will be two-thirds of the revenue for 90 nanometers is expected to be in the middle teens percentage.

0.18微米及以下技術的收入百分比將佔90奈米收入的三分之二，預計將在十幾歲左右。

The communication segment is expected to be the strongest followed by consumer and then computer segment.

通訊領域預計將最為強勁，其次是消費者領域，然後是電腦領域。

And our 2006 CapEx budget remains unchanged at a US $1 billion.

我們 2006 年的資本支出預算維持在 10 億美元不變。

We are encouraged by this strong market demand in the second half of 2006.

2006 年下半年強勁的市場需求令我們深受鼓舞。

UMC has competitive technology, world leading manufacturing efficiency, and plenty of 12-inch capacity.

聯電擁有具競爭力的技術、世界領先的製造效率以及充足的12吋產能。

Therefore, we should be able to grasp this upcoming opportunity.

因此，我們應該能夠抓住這個即將到來的機會。

And we believe you'll see success at a 65 nanometer, will lead the Company to continued growth in the coming years.

我們相信您將看到 65 奈米技術的成功，並將帶領公司在未來幾年持續成長。

So this concludes our prepared remarks for today.

我們今天準備好的演講到此結束。

And we would be happy to take your question now.

我們現在很樂意回答您的問題。

Operators, we are ready for questions.

接線員，我們準備好回答問題了。

[Operator Instructions] Your first question comes from the line of Andrew Biggs of Susquehanna International.

[操作員說明] 您的第一個問題來自薩斯奎哈納國際機場的安德魯·比格斯。

Please, proceed sir.

請先生繼續。

Hi.

你好。

A couple quick questions for you.

有幾個簡單的問題想問你。

Can you talk about your 90 nanometer opportunities in the second half of 2006?

能談談2006年下半年90奈米的機會嗎？

And then also address your 65 nanometer ramp plans?

然後還要解決您的 65 奈米斜坡計劃？

Okay.

好的。

For everyone's information, we are engaging with 8 high-volume customers for 90 nanometer.

僅供大家參考，我們正在與 8 個 90 奈米大批量客戶合作。

As a matter of fact, I will have been working with them for more than a year.

事實上，我已經和他們一起工作了一年多了。

And more and more of them were -- will be into production phase.

其中越來越多的產品將進入生產階段。

So we're expecting a second half close to Q4, we will have 8 customers into production.

因此，我們預計下半年將接近第四季度，我們將有 8 家客戶投入生產。

And for 65 nanometer, as I said, the production, more volume production has already started, and we have more customers engaged right now.

對於 65 奈米，正如我所說，更多的批量生產已經開始，我們現在有更多的客戶參與其中。

And so, you know, that makes UMC in very competitive position as the customers become ready.

因此，您知道，隨著客戶做好準備，這使得聯華電子處於非常有競爭力的地位。

So next year, we expect a good ramp of 65 nanometer, as well.

因此，明年，我們預計 65 奈米也會有良好的成長。

And then the followup to that question, let's say these 8 high volume, or potential high volume customers, do what you think they can do this year, and you grew maybe 20% or so, what would that represent as a percentage of total revs?

然後是這個問題的後續，假設這 8 個高銷售量或潛在的高銷售客戶，做你認為他們今年能做的事情，你的收入可能會成長 20% 左右，這佔總轉速的百分比是多少？

Do you have a target for Q4 that you think you can achieve for 90 nanometers as a percentage of total revs by the end of the year?

您是否有第四季度的目標，您認為您可以在年底前實現 90 奈米佔總轉速的百分比？

Yeah, our goal is to combine both 90 nanometer and .13 micron.

是的，我們的目標是結合 90 奈米和 0.13 微米。

The revenue contribution would be close to 50%

收入貢獻將接近50%

How about just for 90 nanometer?

只用90奈米怎麼樣？

My -- my current estimating is about half, half of that, or 25%

我的——我目前的估計大約是一半，一半，或 25%

Okay, great.

好的，太好了。

And one last question.

最後一個問題。

During the last conference call you expected depreciation to decline roughly 7% year over year in 2006, is that still valid?

在上次電話會議中，您預計 2006 年貶值將年減約 7%，這仍然有效嗎？

Yes, that's still valid.

是的，這仍然有效。

In fact, we also reported the depreciation in Q1.

事實上，我們在第一季也報告了貶值。

That's about 3 or 4% decrease from Q4 last year.

與去年第四季相比下降了約 3% 或 4%。

We're pretty much in line with our 7% forecast.

我們與 7% 的預測基本一致。

Okay.

好的。

Great.

偉大的。

Thank you very much.

非常感謝。

Your next question comes from the line of Robert Maire of Needham & Co. Please proceed, sir.

您的下一個問題來自 Needham & Co 的 Robert Maire。請繼續，先生。

Yes.

是的。

You had indicated that graphic chip activity seemed to be warming up.

您曾表示圖形晶片活動似乎正在升溫。

Is that primarily PC-related?

這主要與 PC 相關嗎？

Video-game system related?

視頻遊戲系統相關？

Maybe you could give us a little more color on that process technology and where you expect that to go?

也許您可以給我們更多關於該工藝技術的資訊以及您期望它的發展方向嗎？

Yes, it's primarily in PC graphics, for now.

是的，目前主要是在 PC 圖形領域。

And based on customers' feedback, we have very competitive process technology, and the customer have already validated.

並且根據客戶的回饋，我們擁有非常有競爭力的製程技術，並且已經得到客戶的驗證。

And it is ready to ramp.

並且它已準備好斜坡。

And how do you expect to see that ramping?

您預計會如何看到這種成長？

Is that a Q2, Q3 ramp?

這是 Q2、Q3 斜坡嗎？

Or when do you expect to see that ramp?

或者您預計什麼時候看到那個坡道？

It will start in Q2, and it will continue into Q3-Q4.

將從第二季開始，並將持續到第三季至第四季。

More products are being taped about, so there will be more volume down the road.

更多的產品正在錄製，因此未來的銷量將會更大。

And this is more than one customer, I would imagine.

我想，這不僅僅是一位客戶。

That's correct.

這是正確的。

Okay.

好的。

And you also mentioned that entry-level mobile phones are picking up.

您也提到入門級手機正在回溫。

Is that also a Q2-Q3 phenomenon and similarly multiple customers?

這是否也是第二季至第三季的現像以及類似的多位客戶？

Yes, we start to see the pickup in June.

是的，我們從六月開始看到回升。

And become very, very strong in Q2 and Q4 from multiple customers.

在第二季度和第四季度，來自多個客戶的支援變得非常非常強大。

Okay, and you're making those statements based on what customers are forecasting their requirements will be?

好的，您是根據客戶預測他們的需求來做出這些陳述的嗎？

That is correct.

那是對的。

Normally we would not talk about the forecast beyond the next quarter, but this time, the customers' forecast is so strong, we feel we probably should let the analysts know.

通常我們不會談論下一季之後的預測，但這一次，客戶的預測如此強烈，我們覺得我們可能應該讓分析師知道。

Okay.

好的。

And most of that will be running at what, would you say 90 nanometers primarily.

其中大部分將主要運行在 90 奈米上。

90 nanometer and .13 micron.

90 奈米和 0.13 微米。

Thank you.

謝謝。

Your next question comes from the line of Mark Fitzgerald of Banc of America.

你的下一個問題來自美國銀行的馬克·菲茨傑拉德。

Should we expect expense in the June quarter to snap back to the level we had in December.

我們是否應該預期 6 月季度的支出會回升至 12 月的水平？

Probably not that high.

可能沒那麼高。

It will be more closer to Q1 this year or Q3 of last year.

更接近今年第一季或去年第三季。

Somewhere in between.

中間某個地方。

Okay.

好的。

And then when you look at expenses into the second half of the year, when you start getting double digit growth, will expenses trend higher here?

然後，當您查看下半年的支出時，當您開始實現兩位數成長時，這裡的支出會呈上升趨勢嗎？

Will they undergrow revenues?

他們的收入會減少嗎？

Can you give us some guidance on expense the second half?

您能給我們一些下半年費用的指導嗎？

It should undergrow revenue gross.

它應該低於總收入的成長。

And percentage of revenue will decline a little bit.

而且收入的比例會略為下降。

It should go out a little bit.

它應該會熄滅一點。

Again, every year in Q4 we'll always have higher bonus expenses.

同樣，每年第四季我們都會有更高的獎金支出。

Okay.

好的。

Thank you.

謝謝。

Your next question comes from the line of Bobby Shaw of J.P. Morgan.

你的下一個問題來自摩根大通的鮑比·肖（Bobby Shaw）。

Please, proceed.

請繼續。

Thank you.

謝謝。

Gross margin and high teens, nearly high teens, if I may ask?

我可以問一下，毛利率是高十幾歲，接近高十幾歲嗎？

Can you say that again, please?

你能再說一次嗎？

Yes.

是的。

Just a -- a little bit more clarity on gross margin guidance.

只是毛利率指引更加清晰一些。

You mentioned high teens.

你提到了青少年。

Pretty close to 20%?

接近20%？

Is that --

就是它 -

Well high teens means high teens, which is in between 17 and 19%.

高青少年意味著高青少年，介於 17% 和 19% 之間。

Okay.

好的。

That's very --

這非常——

In my definition.

在我的定義中。

I'm not sure.

我不知道。

No, that's very helpful.

不，這非常有幫助。

And do you -- just one more clarification question, sorry about that.

你呢——還有一個澄清問題，對此感到抱歉。

But can you repeat the number of sales outstanding, if you have that information ready, at the end of the quarter and also [inaudible - highly accented language] please.

但是，如果您已準備好該訊息，您能否重複一下季度末的未完成銷售數量以及[聽不清楚 - 口音很重的語言]。

We will provide that to you after the call by e-mail, which, again, will be in our quarter report.

我們將在電話會議後透過電子郵件向您提供該訊息，這將再次出現在我們的季度報告中。

I think that's rate of average -- just looking for the quarter end.

我認為這是平均水平——僅考慮季度末。

Okay.

好的。

That's fine.

沒關係。

Okay.

好的。

Thank you.

謝謝。

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

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

Please proceed, sir.

請繼續，先生。

Thank you.

謝謝。

Curious on with the outlook for the second half of the year.

對下半年的前景感到好奇。

One, today, what is the utilization rate at UMCI, and where do you expect to be at the end of the year with the type of visibility you have?

第一，今天 UMCI 的利用率是多少？以您所擁有的可見度，您預計到年底會達到什麼水平？

Currently below the average.

目前低於平均值。

And there's a possibility that it will be fully loaded near the end of the year.

而且有可能在年底時滿載。

And what are you cycle times right now?

您現在的騎乘時間是多少？

Our cycle times for all of the technology is about 1.43 days, per day per layer.

我們所有技術的周期時間約為 1.43 天（每層樓每天）。

Okay.

好的。

And then I guess with the cycle times at that level, I guess, how do we have so much confidence in the second half of the year.

然後我想，按照這個水平的周期時間，我想，我們如何對今年下半年有這麼大的信心。

Do you have more visibility than you normally do?

你比平常有更多的知名度嗎？

That is the message we're trying to convey.

這就是我們想要傳達的訊息。

Okay.

好的。

And then maybe looking at the in-market guidance, obviously broad strokes by in-market, if we could kind of dig a little more into that.

然後也許會看看市場內的指導，顯然是市場內的大體框架，如果我們能更深入地研究一下的話。

What, specifically, what products are you seeing the strength with and communications and consumer?

具體來說，您認為哪些產品在通訊和消費者方面具有優勢？

And then, on the other side, where you seeing the weakness in the PC market from a product standpoint.

另一方面，從產品的角度來看，你會看到個人電腦市場的弱點。

Are you talking about the second half of the year?

你說的是下半年嗎？

No, just the second quarter.

不，只是第二季。

Yes.

是的。

Second quarter, the PC is the weakest, and you probably have heard in Intel's forecast, and the consumer is the second.

第二季度，PC是最弱的，你可能在英特爾的預測中聽說過，而消費者是第二季度。

And I mentioned earlier, starting from June, that we see the pickup of cell phone demand.

我之前提到，從六月開始，我們看到手機需求回升。

I was just hoping to get more granularity in terms of PCs, is it more chip sets or graphics or the communication side.

我只是希望在 PC 方面獲得更多的粒度，是更多的晶片組、圖形還是通訊方面。

Okay.

好的。

PC chip set, optical storage products are the two that we saw.

PC晶片組、光儲存產品是我們看到的兩個。

Okay.

好的。

And the communications based consumer -- where are you seeing the strength.

而基於通訊的消費者——你在哪裡看到了優勢。

It's basically the hand set.

基本上都是手辦。

Thank you very much.

非常感謝。

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

您的下一個問題來自 FBR 的 Mehdi Hosseini。

Please, proceed.

請繼續。

Thank you.

謝謝。

Thanks for taking my call.

感謝您接聽我的電話。

A couple of questions.

有幾個問題。

If you could help me understand why 130 nanometer mix of revenues went down almost twice as fast as the overall revenues.

如果您能幫助我理解為什麼 130 奈米組合的收入下降速度幾乎是整體收入的兩倍。

And regarding 65 nanometer capacity ramp, you're talking about having several customers.

關於 65 奈米產能提升，您正在談論擁有多個客戶。

If you could elaborate on what kind of capacity these customers are requiring from you, going into 2007, and whether the capital intensity would increase or decline, going from 90 nanometer to 65.

您能否詳細說明進入 2007 年這些客戶對您的需求類型，以及資本密集度是否會增加或下降（從 90 奈米到 65 奈米）。

And what I mean by capital intensity, the required CAPEX for every incremental 1K per month.

我所說的資本密集度是指每月每增加 1K 所需的資本支出。

Okay.

好的。

Can you repeat your first question?

你能重複一下你的第一個問題嗎？

The first question had to do with the 130 nanometer mix of revenues.

第一個問題與 130 奈米的收入組合有關。

It declined as significantly, twice as fast as top line revenues.

它的下降幅度同樣顯著，下降速度是總收入的兩倍。

Yes.

是的。

Basically due to the seasonal adjustment for the cell phone.

主要是因為手機的季節調整。

Okay.

好的。

And regarding capacity expansion for 65 nanometer --

關於65奈米產能擴張—

Yes.

是的。

We probably would expect it to have a couple of percentage over capacity near the end of this year.

我們可能預計到今年年底，其產能將超出幾個百分點。

And for future expansion, it will be mainly for 65 because it can be backward used for 90 nanometer or even .13.

而未來的擴展，主要是針對65，因為它可以向後用於90奈米甚至0.13。

Sure, but as you talk to your customers, and I'm just looking for a qualitative answer, What kind of a capacity ramp are they projecting for next year because over the next several months you need to start planning for '07, and if the capital intensity would go up compared to 90 nanometer.

當然可以，但是當您與客戶交談時，我只是在尋找定性答案，他們預計明年的產能增長會是怎樣的，因為在接下來的幾個月裡，您需要開始為 07 年進行規劃，如果與90奈米相比，資本密集度將會上升。

Okay.

好的。

This year, I think all of the early competitors, early customers will focus in taping the prototype.

今年，我認為所有早期的競爭對手、早期的客戶都會專注於原型的流片。

Yes.

是的。

And become high-volume production ready.

並做好大批量生產的準備。

And starting from next year, 2007, they will ramp.

從明年，也就是 2007 年開始，它們將會逐漸增加。

And high-volume customers, now, are talking about volume cross-over in mid of 2008.

現在，大批量客戶正在談論 2008 年中期的批量交叉。

Okay.

好的。

Hopefully that will give you a big picture.

希望這能讓您有一個大局觀。

Yes, sure.

是的，當然。

And then how -- capital intensity from 90 nanometer to 65?

那麼資本密集度如何從 90 奈米提高到 65 奈米？

There's no particular equipment significantly more expensive for 65 than 90, although we will require more 193 [inaudible - highly accented language] in terms of the production process.

65 沒有什麼特別的設備比 90 貴得多，儘管我們在生產過程中需要更多的 193 [聽不清楚 - 口音很重的語言]。

But overall, all of the infrastructure, the facility, and the clean room has been built.

但總體而言，所有基礎設施、設施和無塵室都已建成。

And equipment wise, we do consider the capital efficiency is actually better for the remaining space in our post 12A and 12i Fabs.

在設備方面，我們確實認為 12A 和 12i 晶圓廠剩餘空間的資本效率實際上更好。

So given that some pricing leverage you have, should I expect an improvement on gross margin or would the material cost go up?

因此，考慮到您擁有一定的定價槓桿，我是否應該預期毛利率會有所改善，或者材料成本會上升嗎？

Yes.

是的。

High-end continue to ramp.

高端持續升溫。

It is reasonable to assume that the gross margin will increase.

毛利率將會增加的假設是合理的。

And provided that the Fab can be fully loaded all of the time.

且前提是Fab可以一直滿載。

Right.

正確的。

Thank you.

謝謝。

Your next question comes from the line of Timothy Arcuri of Citigroup.

你的下一個問題來自花旗集團的蒂莫西·阿庫裡。

Please proceed, sir.

請繼續，先生。

Hi, several things.

你好，有幾件事。

I guess, judging from your bullish commentary into the back half of the year, it sounds like you've seen no change the last couple of weeks from the inventory build we're seeing happening at a number of your different customers.

我想，從您對今年下半年的樂觀評論來看，過去幾週您看到的許多不同客戶的庫存建設似乎沒有任何變化。

So I'm wondering, in the past, how has an inventory build in your customers been manifested in your forecast.

所以我想知道，在過去，你的客戶的庫存建立是如何在你的預測中反映出來的。

Do they just call you one day and they just change their forecast?

他們是否有一天會打電話，然後就改變了預測？

Or is there some kind of leading indicator before they actually change the forecast?

或者在他們實際改變預測之前是否存在某種領先指標？

As you know, there's always a certain lead time from production point of view.

如您所知，從生產角度來看總是有一定的交貨時間。

Usually they will give us a notice two months earlier.

通常他們會提前兩個月給我們通知。

Okay.

好的。

And so judging from your commentary, you've seen nothing of the sort from, you know, a broad range of your customers?

因此，從您的評論來看，您在廣泛的客戶中沒有看到任何此類情況？

We didn't see anything alarming from the broad range of customers.

我們沒有看到廣大客戶有任何令人擔憂的情況。

Maybe one or two specific customers, due to their specific condition.

由於具體情況，可能是一兩個特定客戶。

Okay.

好的。

So as you look out to the end of the year in terms of your capacity utilization, you know, if you look historically at inventory trends, it would suggest that the utilization is going to peak either in June or September.

因此，當您展望年底的產能利用率時，您知道，如果您查看歷史庫存趨勢，您會發現利用率將在 6 月或 9 月達到高峰。

But it sounds like that's not your view, is that right?

但聽起來這不是你的觀點，對嗎？

No, the utilization actually will continue to grow from this point onward to the end of the year.

不，從現在到年底，利用率實際上將繼續增長。

That's how we perceive it today.

這就是我們今天的看法。

Okay.

好的。

Thanks a lot.

多謝。

Your next question comes from the line of Brian [Lahn] of [Dalwah Institute Research].

您的下一個問題來自 [Dalwah Institute Research] 的 Brian [Lahn]。

Please proceed.

請繼續。

Yeah.

是的。

What percentage of revenue is in non-wafer business last quarter?

上季非晶圓業務佔營收的比例是多少？

Number is about 3-5%.

數量約為3-5%。

I think last quarter should be no different.

我認為上個季度應該沒有什麼不同。

We don't have the exact numbers, but it should be within this range. 3-5%.

我們沒有確切的數字，但應該在這個範圍內。 3-5%。

Okay.

好的。

One of the biggest customer has a very high inventory level last quarter.

最大的客戶之一上季度的庫存水準非常高。

So when do they expect all of the momentum from that customer to resume to normal level?

那麼他們預期該客戶的所有動力何時會恢復到正常水準呢？

Well, it's very difficult to answer your question.

嗯，很難回答你的問題。

And --

和 -

We don't know which customer you're referring to.

我們不知道您指的是哪位客戶。

Even if we know, we are not allowed to talk about specific customers.

即使我們知道，我們也不能談論特定的客戶。

The best way is to check with that customer.

最好的方法是與該客戶核實。

Okay.

好的。

Thanks.

謝謝。

Your next question comes from the line of Shailesh Jaitly of Nomura Singapore.

您的下一個問題來自野村證券新加坡公司的 Shailesh Jaitly。

Please proceed.

請繼續。

Hi.

你好。

Thanks for taking my question.

感謝您提出我的問題。

Just looking at the utilizations broadly across all of your Fabs, would it be fair to assume that most of your 8-inch capacity is operating at close to full utilizations?

只要看看您所有晶圓廠的總體利用率，是否可以公平地假設您的大部分 8 英寸產能都在接近完全利用率的情況下運行？

That is a reasonable assumption.

這是一個合理的假設。

That's a big 90%.

這是一個很大的90%。

High 90%.

高90%。

So mainly the culprit for, now, you having below industry average utilizations now is probably just UMCI.

因此，現在利用率低於業界平均值的罪魁禍首可能就是 UMCI。

So the moment you fix that, the things are going to get back to track?

那麼一旦你解決了這個問題，事情就會回到正軌嗎？

Yeah for 12-inch right now, the loadings is still below average, and your statement is correct.

是的，目前 12 英寸的負載仍然低於平均水平，您的說法是正確的。

Once the demand for both 12-inch Fabs increase, which will happen in the second half of the year, then the loading, overall loading, will improve significantly.

一旦這兩個12吋晶圓廠的需求增加，這將發生在今年下半年，那麼負載，整體負載，將顯著改善。

Okay.

好的。

You mentioned about these 8 high-volume customers at 90 nanometer mode, of these, how many are already in the production phase?

您提到這8家90奈米模式的大批量客戶，其中有多少家已經進入生產階段？

High volume production phase?

大批量生產階段？

I would say 2 -- 3 of them, and they will gradually increase to 8 by Q4.

我想說的是 2 - 3 個，到第四季它們將逐漸增加到 8 個。

Okay.

好的。

And could you also give some further color on the proportion of your revenue mix, which is going to be 65 nanometer by full Q end.

您能否進一步說明您的收入組合的比例，到全 Q 端時，收入組合將達到 65 奈米。

In Q4, the percentage will still be small.

第四季度，這一比例仍然很小。

Probably close -- approximately 1%.

可能很接近——大約1%。

Okay.

好的。

So you're really counting on 65 nanometer to be in big volume production only in '07.

因此，您確實指望 65 奈米技術在 07 年才能實現大批量生產。

You -- I mentioned earlier it will ramp in 2007.

你——我之前提到過它會在 2007 年加速。

Yes, it will start to ramp.

是的，它將開始加速。

And high volume crossover will happen in 2008, mid of 2008.

大量交叉將在 2008 年、2008 年中期發生。

Okay.

好的。

Thank you.

謝謝。

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

你的下一個問題來自高盛的唐納德·盧。

Please proceed.

請繼續。

Hi.

你好。

Just want to followup.

只是想跟進。

At the investor meeting in the afternoon you commented that the third quarter revenue growth would be a double digit.

在下午的投資者會議上，您表示第三季營收成長將是兩位數。

Can you be more specific?

你可以說得更詳細點嗎？

Is that going to be high teens, or low teens, mid teens?

那會是高青少年，還是低青少年，中青少年？

Donald, please wait for one more quarter, we really cannot give out that number right now.

唐納德，請再等一個季度，我們現在確實不能給出這個數字。

All right?

好的？

It will be pretty good.

會很不錯的。

Okay.

好的。

Yes.

是的。

I think at the meeting, Chitung told us to do some homework on the potential ASP improvement.

我想在會議上，Chitung 告訴我們要對潛在的 ASP 改進做一些功課。

If you hit your goal of reaching 50% revenue from 90 nanometer and 130 nanometer, and it did some exercise, it seems like the ASP potentially can improve around 14%.

如果您實現了 90 奈米和 130 奈米帶來 50% 收入的目標，並且做了一些練習，那麼 ASP 似乎可能會提高 14% 左右。

Is that something reasonable?

這樣有道理嗎？

Yes.

是的。

We will look into your calculation after the call and get back to you.

我們將在通話後調查您的計算並回覆您。

All right.

好的。

Thanks.

謝謝。

Your next question comes from the line of Bobby Shaw of J.P. Morgan.

你的下一個問題來自摩根大通的鮑比·肖（Bobby Shaw）。

Please, proceed.

請繼續。

Yes.

是的。

In the afternoon, you talked about use of cash, dividends being one of them.

下午，您談到了現金的使用，股息就是其中之一。

Are you considering vertical expansion looking at types of businesses?

您是否正在考慮針對業務類型進行垂直擴張？

You mean getting into assembly and task and other sector of the same conductor business?

您的意思是進入組裝和任務以及同一導體業務的其他部門？

What do you mean?

你是什​​麼意思？

I guess something like that.

我想是這樣的。

Yes, that's one of the possibilities.

是的，這是可能性之一。

No, we have no plan.

不，我們沒有計劃。

We stay as a pure [inaudible - highly accented language] foundry.

我們仍然是一家純粹的[聽不清楚-重口音]鑄造廠。

Okay.

好的。

In that respect, do you expect dividend payout ratio to increase this coming here?

在這方面，您預期股息支付率會增加嗎？

The cash portion, yes.

現金部分，是的。

As a matter of fact, this year our cash portion is 80% of our dividend payout.

事實上，今年我們的現金部分佔股利支付的80%。

And how about the payout ratio?

支付比率又如何呢？

The payout ratio, because we also include some earnings from the previous year, is actually over 100% compared to our EPA.

因為我們還包括了上一年的一些收益，所以與我們的 EPA 相比，派息率實際上超過了 100%。

Does that answer your question?

這是否回答你的問題？

Yes, I guess -- this year is sort of an abnormal given last year's operative.

是的，我想——與去年的特務相比，今年有點不正常。

But going forward, what sort of payout ratio are you looking at --

但展望未來，你會考慮什麼樣的支付率——

Going forward the corporate chapter stated that no less than 20% of our dividend have to be paid in the form of cash.

展望未來，公司章規定，不少於 20% 的股利必須以現金支付。

And we answer a similar question this afternoon that we are currently holding more than NT$95 billion cash on hand.

今天下午我們也回答了類似的問題，我們目前持有的現金超過新台幣950億元。

We said we will try every possibility to restructure our structure including share buy back as well as cash dividend payouts.

我們表示，我們將嘗試一切可能重組我們的結構，包括股票回購和現金股利支付。

And again, recently, we have just bought back $1 billion shares, which is in the process of cancellation, and that will reduce our share outstanding by as much as 5.1%.

最近，我們剛剛回購了 10 億美元的股票，該股票正在取消，這將使我們的流通股減少多達 5.1%。

And going forward, those cash will be a good source for either share buy back, further share buy back, or the rate the cash dividend portion.

展望未來，這些現金將成為股票回購、進一步股票回購或現金股利部分利率的良好來源。

But if you talk about the numbers, right now, in the corporate chapter, is minimum 20%.

但如果你談論數字，現在在公司章節中，至少 20%。

Thank you.

謝謝。

Your next question is a followup question from Mark Fitzgerald of Banc of America.

您的下一個問題是美國銀行馬克·菲茨杰拉德提出的後續問題。

Please proceed.

請繼續。

Thank you.

謝謝。

If you look over the last 12 months while the mixed moved toward 90 nanometer, and 130 ASPs didn't really move.

如果你回顧過去 12 個月，當混合技術發展到 90 奈米時，130 個 ASP 並沒有真正改變。

Is that because ASPs in the leading edge was a problem with, or was it the trailing edge that kept ASPs low here?

這是因為前沿的 ASP 有問題，還是後緣導致 ASP 保持在較低水準？

I think many because of the percentage of 90 nanometer at advance node was too small.

我認為很多是因為先進節點90奈米的比例太小了。

Yes.

是的。

And of course, the mature nodes have price pressure.

當然，成熟節點也有價格壓力。

And so as we, as the mix picks up here in the second half, is this ASP issue going to be put behind us?

因此，隨著下半年情況的好轉，ASP 問題會被拋在腦後嗎？

Do you expect a meaningful improvement?

您期望有有意義的改進嗎？

Yeah, we should expect ASP to continue to improve.

是的，我們應該期待 ASP 繼續改進。

Okay.

好的。

Thank you.

謝謝。

Your final question comes from the line of Michael McConnell of Pacific Crest Securities.

你的最後一個問題來自 Pacific Crest Securities 的 Michael McConnell。

Hi, Chitung, could you give us some guidance, please, on the net nonoperating income line for Q2, please?

您好，Chitung，您能給我們一些關於第二季非營業淨收入線的指導嗎？

For Q2, we don't have any major items planned at this stage.

對於第二季度，我們現階段沒有規劃任何重大項目。

But quarter to date, we have sold about 4 million shares of media tech, which brings in about NT$1.5 billion in profit so far.

但截至目前，我們已經出售了約 400 萬股傳媒科技股票，迄今帶來了約 15 億新台幣的利潤。

It really depends on how we're going to divest our investments for the rest of the quarter, will determine the nonoperating parts.

這實際上取決於我們將如何在本季度剩餘時間內剝離投資，從而確定非營運部分。

So far, we don't have the timetable for that.

到目前為止，我們還沒有這方面的時間表。

Okay.

好的。

That's helpful, thank you.

這很有幫助，謝謝。

Your next question comes from the line of [Kaoa Motawara] of Orbis.

您的下一個問題來自 Orbis 的 [Kaoa Motawara]。

Please, proceed.

請繼續。

Yes.

是的。

Hi.

你好。

My question is, you know, it seems that there's reasonable number of shortage of lower and noding on below on 130 nanometers because [inaudible - highly accented language] or things like that.

我的問題是，你知道，似乎在 130 納米上存在合理數量的下限和下限的短缺，因為[聽不清楚 - 口音很重的語言]或類似的事情。

And nobody's adding capacity over there.

那裡沒有人增加容量。

And you yourself mention that your Fabs are fully utilized.

您自己也提到您的工廠已充分利用。

So do you see ASPs gradually increasing in that or at least not declining as much in the next couple of quarters?

那麼，您是否認為平均售價在接下來的幾季會逐漸增加，或至少不會下降那麼多？

Not declining, is definitely the right statement for now.

不拒絕，目前來說絕對是正確的說法。

All right.

好的。

And I certainly hope that we would be in a position to raise the price if the demand exceeds the supply too much to buy a lot.

我當然希望，如果需求超過供應太多而無法大量購買，我們能夠提高價格。

All right.

好的。

Thank you.

謝謝。

There are no more questions at this time, I would like to now turn this call back over to management.

目前沒有更多問題，我現在想將此電話轉回給管理層。

Please, proceed.

請繼續。

Okay.

好的。

That, I think, concludes our call today.

我認為我們今天的電話會議到此結束。

Thank you, everyone, for joining us.

謝謝大家加入我們。

If you have any questions, please do not hesitate to call us or e-mail.

如果您有任何疑問，請隨時致電我們或發送電子郵件。

If you do not have our contact information, please visit the IR section on our website.

如果您沒有我們的聯絡資訊，請訪問我們網站上的 IR 部分。

Www.UMC.com, back to you operator.

Www.UMC.com，回傳給您的電信業者。

You're welcome, sir.

不客氣，先生。

That concludes our call.

我們的通話到此結束。

A link to the replay for this call will be available until the end of Tuesday, July 25, 2006, on the Investor Relations section of UMC's website.

本次電話會議的重播連結將於 2006 年 7 月 25 日星期二結束前在 UMC 網站的投資者關係部分提供。

A dial-in version of the replay can be heard at 888-286-8010, if you are in the U.S., or at 617-801-688 for international calls.

如果您在美國，可以撥打 888-286-8010 收聽撥入版本的重播；如果撥打國際電話，請撥打 617-801-688。

The dial-in replay will be available midnight on April 28, 2006.

撥入重播將於 2006 年 4 月 28 日午夜提供。

The access code will be 26259920.

訪問代碼為 26259920。

If you have any additional questions, please feel free to contact UMC directly.

如果您有任何其他問題，請隨時直接聯絡 UMC。

Thank you, and have a good day.

謝謝你，有美好的一天。