聯華電子 (UMC) 2014 Q4 法說會逐字稿

Welcome, everyone, to UMC's 2014 fourth-quarter earnings conference call. (Operator Instructions). For your information, this conference call is now being broadcasted live over the Internet. Webcast replay will be available within an hour after the conference has finished. Please visit our website, www.umc.com, under the Investor Relations/Investor Events section.

歡迎大家參加聯華電子 2014 年第四季財報電話會議。（操作員說明）。供您參考，本次電話會議現透過網路進行現場直播。會議結束後一小時內將提供網路廣播重播。請造訪我們的網站 www.umc.com，位於投資者關係/投資者活動部分。

And now I would like to introduce Mr. Bowen Huang, Head of Investor Relations at UMC. Mr. Huang, you may begin.

現在我想介紹一下聯華電子投資者關係主管黃博文先生。黃先生，您可以開始了。

Thank you, and welcome to UMC's conference call for the fourth quarter of 2014. I am joined by Mr. Po Wen Yen, the CEO of UMC, and Mr. Chitung Liu, the CFO of UMC.

謝謝您，歡迎參加聯華電子 2014 年第四季的電話會議。與我一同出席的還有聯電執行長鮑文彥先生和聯華電子財務長劉啟東先生。

In a moment, we will hear our CFO present the fourth-quarter financial results, followed by our CEO's key message to address UMC's focus and first-quarter guidance. Once our CEO and CFO complete their remarks, there will be a Q&A session. UMC's quarterly financial reports are available at our website, www.umc.com, under the Investors/Financials section.

稍後，我們將聽到我們的財務長介紹第四季度的財務業績，然後是我們的執行長的關鍵訊息，以解決聯華電子的重點和第一季度的指導。一旦我們的執行長和財務長完成發言，就會有問答環節。UMC 的季度財務報告可在我們的網站 www.umc.com 的「投資者/財務」部分取得。

During this conference, we may make forward-looking statements based on management's current expectations and beliefs. These forward-looking statements are subject to a number of risks and uncertainties that could cause actual results to differ materially, including the risks that may be beyond the Company's control. For these risks, please refer to UMC's filings with the SEC in the US and the ROC securities authority.

在這次會議期間，我們可能會根據管理層目前的期望和信念做出前瞻性陳述。這些前瞻性陳述受到許多風險和不確定因素的影響，可能導致實際結果出現重大差異，包括可能超出公司控制範圍的風險。對於這些風險，請參閱聯華電子向美國 SEC 和中華民國證券監管機構提交的文件。

I would now like to introduce UMC's CFO, Mr. Chitung Liu, to discuss UMC's fourth-quarter 2014 business results.

現在我想介紹聯華電子的財務長劉啟東先生，來討論聯華電子2014年第四季的表現。

Thank you, Bowen. I would now like to go through the 4Q 2014 investor conference presentation material, which can be downloaded from our website.

謝謝你，鮑文。我現在想瀏覽一下 2014 年第四季度投資者會議演示材料，該材料可以從我們的網站下載。

Starting on page 3, in fourth quarter of 2014 consolidated revenue was TWD37.24b, with gross margin at 27.4% and operating margin at 12.2%. The net income attributable to the stockholders of parent was TWD4.56b, and earnings per ordinary share was TWD0.36.

從第3頁開始，2014年第四季合併收入為新台幣37.24b，毛利率為27.4%，營業利益率為12.2%。歸屬於母公司股東的淨利為新台幣4.56b，每股普通股收益為新台幣0.36。

And on page 4 -- page 3, you can see our operating revenue delivered good solid growth compared to both the last quarter and same quarter of last year. And the utilization rate in the fourth quarter of 2014 was around 93%, and our total wafer shipment is about 1.431m 8-inch equivalent wafers.

在第 4 頁至第 3 頁上，您可以看到我們的營業收入與上一季和去年同期相比實現了良好的穩健成長。2014年第四季的使用率約為93%，我們的晶圓總出貨量約為143.1萬片8吋等效晶圓。

On page 4 is our comprehensive income statement. Revenue grew 5.7% on back of a one-time license fee income from Fujitsu. As a result, our gross margin also reached 27.4% to about TWD10.18b. And the net income in Q4 was TWD4.46b, translating to about TWD0.36 EPS.

第 4 頁是我們的綜合損益表。由於富士通的一次性授權費收入，收入成長了 5.7%。因此，我們的毛利率也達到了 27.4%，約為 TWD10.18b。第4季淨利為TWD4.46b，折合每股收益約為TWD0.36。

For the full-year result, our revenue reached TWD140b, representing a 13.1% year-over-year growth. Gross profit was TWD31.8b and the operating income was around TWD10b, and EPS for the full year at TWD0.97 per share.

全年業績方面，我們的營收達到新台幣140b，年增13.1%。毛利為TWD31.8b，營業收入為TWD10b左右，全年EPS為TWD0.97/股。

Our balance sheet is on page 6. Our cash position still around TWD45b. The total asset is still more than $10b. Our stockholder equity is around TWD225b.

我們的資產負債表在第 6 頁。我們的現金狀況仍約為 TWD45b。總資產仍超過$10b。我們的股東權益約為新台幣225b。

On page 7 is the breakdown between our foundry business and new business for Q4 of 2014. For foundry business, the net income is around TWD4.6b and for the new business the loss was around TWD541m, and the net result is about TWD4.46b, as I mentioned earlier. In terms of foundry ASP in Q4 last year, it was flattish compared to the previous quarter.

第 7 頁是 2014 年第四季我們的代工業務和新業務的明細。代工業務的淨利潤約為 TWD4.6b，新業務的虧損約為 TWD5.41 億，最終結果約為 TWD4.46b，正如我前面提到的。就去年第四季的代工平均售價而言，與上一季相比持平。

And for market breakdown, Asia represents 42% of our total revenue and Europe is around 8% and North America is 45%. And for the full year, the change is quite minimal; Asia is around 44% compared to 43% last year and Europe down to 6% from 8% in 2013. IDM represents roughly 10% of our total revenue and fabless is the remaining 90%. For the full year, it's about the same picture, 91% in fabless.

從市場區隔來看，亞洲占我們總營收的 42%，歐洲約佔 8%，北美佔 45%。就全年而言，變化非常小；亞洲約為 44%，而去年為 43%，歐洲則從 2013 年的 8% 降至 6%。IDM 約占我們總營收的 10%，無晶圓廠佔剩餘的 90%。全年情況大致相同，91% 是無晶圓廠。

For segment breakdown, we have almost an identical breakdown for Q3 and Q4, with communication representing the largest slice, around 54%. For the full year, it's the same message; around 51% coming from communication and 29% coming from consumer segment.

對於細分市場細分，我們對第三季和第四季的細分幾乎相同，其中通訊佔最大份額，約為 54%。對於全年來說，都是同樣的訊息；約 51% 來自通訊領域，29% 來自消費者領域。

Again, we are happy to see our 28-nanometer now has grown to 7% of our total revenue in Q4 last year, compared to 3% in third Q 2014. And the 40-nanometer also grew to 28%, compared to 27% in the previous quarter. For the full year 28-nanometer represents about 3% of the full-year revenue, and 40-nanometer is 21% and 65 is another 28%.

我們再次很高興看到我們的 28 奈米技術現在已成長到去年第四季總收入的 7%，而 2014 年第三季為 3%。而40奈米也成長至28%，而上一季為27%。就全年而言，28奈米約佔全年營收的3%，40奈米佔21%，65奈米佔另外28%。

And for 4Q 2014, our total quarterly wafer capacity was around 1.577m 8-inch equivalent. 12i in Singapore, we had some technology upgrade from 65-nanometer to 40-nanometer. So that caused a temporary drop in terms of available capacity and we will see the capacity number to be restored over the next quarter or two.

2014 年第四季度，我們的季度晶圓總產能約為 157.7 萬片 8 吋當量。在新加坡的12i中，我們進行了一些技術升級，從65奈米到40奈米。因此，這導致可用容量暫時下降，我們將看到容量數量將在未來一兩個季度恢復。

And for Q1 2015, we expect the 12a, our Tainan most advanced facility, continue to add new capacity, and yet we also factor in some of the shorter working days due to Chinese New Year holidays in Q1 of 2015. So the number is 1.58m.

對於 2015 年第一季度，我們預計我們台南最先進的工廠 12a 將繼續增加新產能，但我們也考慮到 2015 年第一季度因農曆新年假期而導致的一些工作日縮短的情況。所以這個數字是1.58m。

For CapEx, our CEO will give a more detailed guideline later on, but it's estimated about $1.8b for 2015 compared to $1.4b in 2014.

對於資本支出，我們的執行長稍後將給出更詳細的指導方針，但預計 2015 年資本支出約為 1.8 億美元，而 2014 年為 1.4 億美元。

So that's the summary of UMC result for Q4 2014, as well as full year 2014. More details are available in the report which has been posted on our website.

這是聯華電子 2014 年第四季以及 2014 年全年業績的總結。更多詳細資訊請參閱我們網站上發布的報告。

I will turn the call now to Mr. Yen, CEO of UMC.

我現在將電話轉給聯華電子執行長顏先生。

Okay. Thank you, Chitung. Hello, everyone. I'd like to update everyone, UMC's fourth-quarter operating results.

好的。謝謝你，吉東。大家好。我想向大家通報聯電第四季的經營業績。

In the fourth quarter, foundry revenue grew 3.7% sequentially to TWD34.74b. This figure includes a one-time 40-nanometer licensing fee from Fujitsu, lifting gross and operating margins to 30.2% and 14.6%, respectively. The overall capacity utilization rate remains at 93%, bringing shipments 1.43m 8-inch equivalent wafers.

第四季代工營收季增 3.7% 至 TWD34.74b。這一數字包括富士通一次性 40 奈米許可費，使毛利率和營業利潤率分別提高至 30.2% 和 14.6%。整體產能利用率維持在93%，帶來143萬片8吋等效晶圓出貨量。

Our 28-nanometer technologies represented 7% of our foundry revenue in fourth quarter 2014. The shipments from our 28-nanometer gate-last, High-K Metal Gate process exceeded that of 28-nanometer poly-SiON wafers.

2014 年第四季度，我們的 28 奈米技術佔代工收入的 7%。我們的 28 奈米後閘極高 K 金屬閘極製程的出貨量超過了 28 奈米多晶矽晶圓。

Excluding the Fujitsu 40-nanometer licensing fee, UMC's 2014 foundry operating profit grew 74% from the previous year. This rise in profitability was mainly driven by double-digit percentage growth in wafer shipments and partly due to the rapid production ramp of 28-nanometer, which accounted for 3% of total 2014 revenue.

剔除富士通40奈米授權費，聯華電子2014年代工營業利潤較前一年成長74%。獲利能力的成長主要是由晶圓出貨量兩位數百分比成長所推動的，部分原因是 28 奈米產量的快速成長，佔 2014 年總收入的 3%。

Our collaborative technology efforts with our partners will enable UMC to deliver additional manufacturing solutions to fulfill new product specs, strengthening our position in the IC supply chain to take advantage of the continued momentum in market demand.

我們與合作夥伴的技術合作將使聯華電子能夠提供額外的製造解決方案來滿足新產品規格，從而鞏固我們在 IC 供應鏈中的地位，以充分利用市場需求的持續成長勢頭。

The Taiwan government authorities recently approved UMC's application to invest in a 12-inch joint venture fab in Xiamen, China. This investment will create opportunities for UMC to benefit from China's enormous chip requirements by bringing us closer to the Chinese semiconductor supply chain. The cooperation highlights UMC's differentiated approach of global expansion, proven through Singapore's Fab12i and Suzhou China Fab8N successfully achieving economy of scale while mitigating customers' risks via geographic diversification.

台灣當局最近批准了聯華電子在中國廈門投資一座12吋合資晶圓廠的申請。這項投資將拉近我們與中國半導體供應鏈的距離，為聯華電子創造從中國巨大的晶片需求中受益的機會。此次合作凸顯了聯華電子差異化的全球擴張策略，新加坡的 Fab12i 和中國蘇州的 Fab8N 成功地實現了規模經濟，同時透過地理多元化降低了客戶的風險。

While we expand our production sites worldwide, we are also focusing on continuous organic growth by deploying additional capacity at our Tainan site. As such, we will budget 2015 CapEx for approximately $1.8b.

在我們擴大全球生產基地的同時，我們也致力於透過在台南工廠部署額外產能來實現持續的有機成長。因此，我們將 2015 年資本支出預算約為 1.8b 美元。

Our 2015 CapEx illustrates our strong commitment to meet customers' requirements and gain additional market share through efficient execution and strategic alliances. UMC's global expansion efforts, driven by manufacturing excellence, will strengthen customer services with increased operating scale to enhance corporate financial earnings and deliver long-term returns to our shareholders.

我們 2015 年的資本支出反映了我們對滿足客戶需求並透過高效執行和策略聯盟獲得額外市場份額的堅定承諾。在卓越製造的推動下，聯華電子的全球擴張努力將透過擴大經營規模來加強客戶服務，從而提高企業財務收益並為股東帶來長期回報。

Now, allow me some time to summarize the recent highlights in Chinese. (Spoken in Chinese).

現在，請容許我用中文總結一下最近的亮點。（用中文說）。

I have finished my remarks and now let me go over the first-quarter 2015 guidance.

我的發言已經結束，現在讓我回顧 2015 年第一季的指導。

The foundry segment wafer shipments to show an decrease of 2% to 3%. The foundry segment ASP in US dollars will increase by approximately 3%. The UMC foundry segment gross profit margin will be in mid-20 percentage range. The capacity utilization rate for foundry segment will be approximately 90%. 2015 CapEx for foundry segment will be $1.8b.

代工領域晶圓出貨量呈現2%至3%的下降。代工業務以美元計算的平均售價將成長約3%。聯華電子代工部門的毛利率將在 20% 左右。代工板塊產能利用率約90%。2015 年代工領域的資本支出將為 $1.8b。

The guidance for new business segment's revenue to be approximately TWD2b, and the net loss attributable to UMC parent company to be approximately TWD170m.

新業務部門營收指引約為新台幣2b，歸屬於聯華電子母公司的淨虧損約為新台幣1.7億元。

That concludes my comments. We are now ready for questions. Operator, please open the lines up. Thanks.

我的評論到此結束。我們現在準備好提問了。接線員，請打開線路。謝謝。

(Operator Instructions). Randy Abrams, Credit Suisse.

（操作員說明）。蘭迪·艾布拉姆斯，瑞士信貸。

Okay. Thank you. A good result and outlook. The first question, on the first-quarter guidance, if you could go into what's driving the strength for shipments to grow 2% to 3% normally, in a low season, and also particularly accounting for TSMC also guiding pretty well for first quarter.

好的。謝謝。良好的結果和前景。第一個問題，關於第一季的指導，您是否可以探討是什麼因素推動出貨量在淡季正常增長 2% 至 3%，特別是考慮到台積電第一季度的指導也相當不錯。

Yes, our first quarter 2015, by application, communication segment will be the strongest one, and the computer follow the second and the consumer will be kind of slow. And in the communication segment, the Wi-Fi, baseband and ISP, small driver interface, display driver interface is going up, and the microcontroller units is going down.

是的，我們 2015 年第一季度，從應用來看，通訊領域將是最強的，電腦緊隨其後，消費者將有點緩慢。在通訊領域，Wi-Fi、基頻和ISP、小型驅動器介面、顯示器驅動器介面正在上升，而微控制器單元正在下降。

Okay. And if I could follow up on your 28-nanometer is now seeing a stronger ramp up, and we're seeing the other foundries like TSMC adding capacity. How are you viewing the landscape for 28, just from pricing and margins? And do you still see to reach the 12-inch average in the second half? Just how profitable pricing looks for 28, as you ramp up.

好的。如果我能跟進一下，你們的 28 奈米現在看到了更強勁的成長，我們看到台積電等其他代工廠也在增加產能。僅從定價和利潤率來看，您如何看待 28 的前景？您是否仍希望在下半年達到 12 英吋的平均值？隨著您的擴張，28 的定價看起來會多麼有利可圖。

Yes. Our 28-nanometer profitability has improved due to a higher product yield with an enhanced scale. And on the other side, we foresee the 12-inch overall loading will also improve. So the 12-inch corporate average profitability will rise, which are pulling slightly ahead of our 28-nanometers contribution. So, therefore, our 28-nanometer will still have a small margin dilutive effect in 2015.

是的。由於產品良率提高和規模擴大，我們的 28 奈米獲利能力有所改善。另一方面，我們預計12英寸的整體負載也會有所改善。因此，12 吋企業平均獲利能力將會上升，略高於我們 28 奈米的貢獻。所以，因此，我們的28奈米在2015年仍然會有小幅度的利潤攤薄效應。

Okay. And with 12-inch utilization rising, could you give color on 40 and 65, like the more mature nodes, what you're seeing -- if you're still seeing growth from 40 and 65 as you also ramp up 28?

好的。隨著12 英寸利用率的上升，您能否對40 和65 上的顏色進行說明，就像您所看到的更成熟的節點一樣- 如果您在增加28 英寸的同時仍然看到40 和65 的成長？

Yes. We're expecting our 12-inch mature node between 65-, 90-nanometer loading will be improved in the second half 2015. So that will help to improve our overall revenue.

是的。我們預計 65 奈米、90 奈米負載之間的 12 吋成熟節點將在 2015 年下半年得到改進。這將有助於提高我們的整體收入。

Okay. And the last question, I wanted to ask on the CapEx, the $1.8b. Could you go through how much 28-nanometer capacity you now plan, and then also an update on the 8-inch expansion? Thank you.

好的。最後一個問題，我想問關於資本支出的問題，即 1.8b 美元。您能否介紹一下您現在計劃的 28 奈米產能，以及 8 吋擴展的最新情況？謝謝。

Yes. Our 28-nanometer capacity expansion plan is by the second quarter 2015 we will reach 20.5K per month. And we have additional capacity expansion plan at Phase 5, our Tainan fab, in the end of 2015 or around early of 2016.

是的。我們的28奈米產能擴張計畫是到2015年第二季我們將達到每月20.5K。我們也計劃在 2015 年底或 2016 年初左右對台南工廠第五期進行產能擴張。

Okay. And for 8-inch?

好的。那麼8吋的呢？

That will be additional 9,000 wafer per month.

這將意味著每月額外生產 9,000 片晶圓。

Okay. So 9,000, so it would go to 29,500 if you do the second phase?

好的。那麼9,000，那麼如果進行第二階段的話會達到29,500？

Yes.

是的。

Okay. And then your plan for 8-inch capacity?

好的。那麼你對8吋容量的計畫是什麼呢？

Yes. Our current expansion for 8-inch is only available at our Chinese site in Suzhou HeJian, and they are expanding from -- previously I recall it was around 45,000 wafer per month, and gradually to over 50,000. I think they ultimately will go up to 61,000 per month, and that will happen early this year.

是的。我們目前的 8 吋產能擴張僅在我們位於蘇州河間的中國工廠進行，他們的產能正在從之前每月 45,000 片晶圓左右，逐漸擴大到超過 50,000 片。我認為他們最終將達到每月 61,000 人，這將在今年年初實現。

Okay. Thanks a lot. Good result.

好的。多謝。好結果。

Thank you.

謝謝。

Bill Lu, Morgan Stanley.

比爾‧盧，摩根士丹利。

Yes. Hi. Good result and good ramp on 28-nanometers. Congratulations. Just a couple of more questions on 28. I wasn't quite clear on Randy's question. If you look at the $1.8b in CapEx this year, does that get you to the 20.5K per month or does that include the additional 9,000 by the end of the year?

是的。你好。在 28 奈米上取得了良好的結果和良好的斜坡。恭喜。28號還有幾個問題。我對蘭迪的問題不太清楚。如果您看看今年 1.8b 美元的資本支出，這是否能讓您達到每月 20,500 美元，還是包括到年底額外的 9,000 美元？

Bill, this is cash based CapEx, and you also need to factor in the $1.4b we spent in 2014. So we already have about 12K to 15K in production almost right now. So the additional 8K to reach 20.5K, most of the spending is done in 2014. And the $1.8b, also a big portion will go for this 9K expansion at the end of 2015 and early 2016.

Bill，這是基於現金的資本支出，您還需要考慮我們 2014 年花費的 1.4b 美元。所以我們現在幾乎已經有大約 12K 到 15K 正在生產。所以額外的8K達到20.5K，大部分的支出是在2014年完成。1.8b 美元的很大一部分將用於 2015 年底和 2016 年初的 9K 擴展。

Got it. Okay. That's very clear. So you're doubling your capacity at 28; should I read that as you're now feeling more confident that you have more customers coming in at 28 or are the existing customers ramping? Can you help me with that?

知道了。好的。這非常清楚。所以你的容量在 28 歲時就增加了一倍；我是否應該閱讀這篇文章，因為您現在對 28 歲時有更多客戶進來感到更有信心，或者現有客戶是否正在增加？你能幫我嗎？

Yes. After we're entering the 28-nanometer production in February 2014, for both -- we actually demonstrated a pretty good year-over-year rate on both poly-SiON and High-K Metal Gate technologies. So based on our customer engagement, we are gaining more traction on 28-nanometer business. So we are pretty confident on our 28-nanometer business growth going forward.

是的。在我們於 2014 年 2 月進入 28 奈米生產之後，我們實際上在多晶矽和高 K 金屬閘極技術上都展示了相當不錯的同比增長率。因此，根據我們的客戶參與度，我們在 28 奈米業務上獲得了更多的關注。因此，我們對未來 28 奈米業務的成長充滿信心。

So can you help me with how many customers you have now, how many you will need to get to by the end of the year to have the capacity full?

那麼，您能幫我了解一下您現在有多少客戶嗎？到年底您需要達到多少客戶才能達到滿載？

On 28-nanometer, we have over 20 customers engaged and more than 60 28-nanometer tape-outs.

在28奈米方面，我們有超過20家客戶參與，並且有超過60個28奈米流片。

Okay. What would be -- what is going to be the percentage of revenues from 28 in the first quarter?

好的。第一季 28 的收入百分比是多少？

It will be high single digits in the first quarter 2015.

2015 年第一季該數字將達到高個位數。

Okay. Great. Sorry, just two other quick ones. One is is there going to be an impact to dividend, given the higher CapEx? And two is how do we model depreciation? Thank you.

好的。偉大的。抱歉，只有另外兩個快速的。一是考慮到資本支出較高，股利是否會受到影響？第二個問題是我們如何建模折舊？謝謝。

The amount of depreciation will grow around 15% to 20% year over year, so a higher growth rate compared to the last few years. And we certainly hope we won't impact our dividend payout, but that won't be discussed until the Board meeting later of this quarter.

折舊金額將年增15%至20%左右，因此與過去幾年相比成長率更高。我們當然希望不會影響我們的股息支付，但這要等到本季稍後的董事會會議上才會討論。

Great. Thank you very much. That's it from me.

偉大的。非常感謝。這就是我說的。

Gokul Hariharan, JPMorgan.

戈庫爾·哈里哈蘭，摩根大通。

Hi. A great result and thanks for taking my question. First of all, could you give us an update in terms of your China plant? When should we expect some 40-nanometer capacity being built in Xiamen?

你好。一個很好的結果，感謝您提出我的問題。首先，您能為我們介紹一下您在中國工廠的最新情況嗎？廈門什麼時候可以建成40奈米產能？

And secondly, also, beyond 28, when will you start ramping up some 40-nanometer capacity in Taiwan? And is that contingent for you to have 28-nanometer in China? That would be my third question. Thanks.

其次，除了 28 奈米之外，你們什麼時候開始提高台灣的 40 奈米產能？你們有條件在中國擁有 28 奈米嗎？這是我的第三個問題。謝謝。

Well, the 40-nanometer and also 55-nanometer capacity planned for Xiamen project is really aiming to penetrate into the domestic market in China. That's not really tied into our 40-nanometer plan. Our CEO will give you update on our 40-nanometer development later.

那麼廈門專案規劃的40奈米和55奈米產能確實是為了進軍中國國內市場。這與我們的 40 奈米計劃並沒有真正的聯繫。我們的執行長稍後將向您介紹我們 40 奈米開發的最新情況。

For the Xiamen project, we received the official approval from the Taiwan government and we also inject the first $100m yesterday from HeJian for this new project. And the plan is really to see early production by the end of 2015 and expanding to maybe 20,000 wafer per month, covering both 40-nanometer and 55-nanometer by the end of 2017. So about three years away to reach 20,000.

對於廈門項目，我們獲得了台灣政府的正式批准，昨天我們也從和健集團為這個新項目注資了第一筆1億美元。該計劃實際上是在 2015 年底之前實現早期生產，並在 2017 年底之前擴大到每月 20,000 片晶圓，涵蓋 40 奈米和 55 奈米。大約需要三年才能達到 20,000 人。

Okay. I will need to update you our 40-nanometer technology. Our 14 FinFET technology development is on track, and now we are expecting the process will be ready for customers' tape-out in the second quarter this year.

好的。我需要向您介紹我們的 40 奈米技術的最新情況。我們的 14 FinFET 技術開發已步入正軌，目前我們預計該工藝將在今年第二季為客戶流片做好準備。

Okay. So when we talk about the Xiamen facility, is that compatible with the eventual conversion to 28, as you are building the capacity? And is that something you have planned, that once you have some 40-nanometer ramping up you could start moving to 28-nanometer in Xiamen pretty much concurrently, or is that completely subject to government approval?

好的。那麼，當我們談論廈門工廠時，這是否與你們正在建設產能時最終轉換為 28 個工廠相容？您是否已經計劃好，一旦您的 40 奈米製程有所提升，您就可以幾乎同時在廈門開始轉向 28 奈米，還是完全需要政府批准？

Of course, it's completely subject to Taiwan government's approval. However, as I mentioned earlier, this 20,000 40/55-nanometer capacity is really aiming at specific domestic Chinese market for the specific products. And that's really the goal, to penetrate into the local supply chain, if you will. So I think at this point, as I mentioned, it takes three years to reach 20,000 wafer capacity, so it's still a long way to go.

當然，這完全需要台灣政府的批准。不過，正如我之前提到的，這2萬片40/55奈米產能其實是針對中國國內特定市場的特定產品。如果你願意的話，這才是真正的目標，那就是滲透到當地的供應鏈。所以我認為在這一點上，正如我所提到的，達到2萬片晶圓產能需要三年的時間，所以還有很長的路要走。

Okay. Got it. Thanks very much.

好的。知道了。非常感謝。

Thank you.

謝謝。

Daniel Heyler, Bank of America Merrill Lynch.

丹尼爾·海勒，美銀美林。

Thanks very much. Chitung, could you tell us what the gross profit margin was excluding the Fujitsu license fee that came in from Fujitsu in the fourth quarter, please?

非常感謝。Chitung，您能告訴我們第四季度排除富士通許可費後的毛利率是多少嗎？

Q4 was 26.8%.

第四季為 26.8%。

Okay. Great. Okay. And then is there any more of that coming through this year, or is that done?

好的。偉大的。好的。那麼今年還會有更多這樣的事情發生嗎？還是已經完成了嗎？

That was one-off. But of course our Xiamen plant, for example, 40/55 will also be licensing technology from UMC. So we will get also licensing fee income from our Xiamen project, but we don't know when that's going to happen.

那是一次性的。當然我們廈門工廠，例如40/55，也會是聯華電子的授權技術。因此，我們也將從廈門專案中獲得許可費收入，但我們不知道什麼時候會發生。

Okay. That will happen, I presume, when the revenue starts coming in?

好的。我想，當收入開始進來時，這種情況會發生嗎？

We don't know yet.

我們還不知道。

Okay. And then you had mentioned that you've got 20 customers. Dr. Yen had mentioned 20 customers on 28-nanometer and 60 tape-outs. I wanted to reconcile that with the high single-digit percentage of sales. It seems like you've got a lot of small customers. Or maybe you could explain how many customers are actually in production, because it seems like a small contribution to revenue for how many customers you have.

好的。然後您提到您有 20 位客戶。Yen 博士提到了 20 個 28 奈米和 60 個流片客戶。我想將其與高個位數的銷售額百分比相協調。看來你們有很多小客戶。或者，也許您可以解釋實際上有多少客戶在生產中，因為對於您擁有的客戶數量而言，這似乎對收入的貢獻很小。

Yes, it's very diversified. In terms of the scale, it's very diversified products we have engaged. And normally it would take at least several quarters after the product tape-out to enter into --

是的，它非常多樣化。從規模來看，我們從事的產品非常多元化。通常情況下，產品流片後至少需要幾個季度才能進入——

Okay. That makes sense.

好的。這就說得通了。

Yes.

是的。

Okay. Yet you've had, I think, maybe one important partner. How many partners are you in production with now at this point, in volume?

好的。但我認為，你也許有一位重要的合作夥伴。目前，您有多少合作夥伴正在大量生產？

It's more than five.

已經五個多了。

Okay. Excellent. And I wanted to maybe get a little bit more color on the 65 and 40 challenges there, as you talked about last quarter. I was wondering maybe if you could elaborate on some of the dynamics there. Why isn't utilization at that node higher and what's it going to take to get those fabs filled up?

好的。出色的。正如您在上個季度談到的那樣，我希望對 65 和 40 的挑戰有更多的了解。我想知道您是否可以詳細說明那裡的一些動態。為什麼該節點的利用率沒有更高？如何才能填滿這些晶圓廠？

Yes. We have engaged some new application nodes for this app, for the 55 embedded high voltage for LCD driver and the 90-nanometer embedded flash with some customers. And that is the main area we expect to grow our mature nodes, 12-inch mature nodes utilization rate.

是的。我們已經為這個應用程式接觸了一些新的應用節點，例如55嵌入式高壓LCD驅動器和90奈米嵌入式快閃記憶體與一些客戶。這是我們預期成熟節點成長的主要領域，12吋成熟節點利用率。

Okay. Could you give a sense of timing there, because you said -- I think you said earlier that you didn't think you could maybe achieve a higher utilization there until second half of this year? I'm wondering why it's taking that long, because I guess it seems as though that your competitors' fabs are pretty full on the mature nodes. So to take share in those nodes, do you need to be maybe more aggressive in pricing or you need broader technology?

好的。你能否給出一個時間安排，因為你說過——我想你之前說過，你認為直到今年下半年才能實現更高的利用率？我想知道為什麼要花那麼長時間，因為我猜你的競爭對手的晶圓廠似乎在成熟的節點上已經滿了。因此，要在這些節點中佔據份額，您是否需要在定價方面更加激進，或者需要更廣泛的技術？

I'm just wondering why you're not taking more share there, because typically those nodes are more price sensitive and you would be able to take share back if you're aggressive on pricing. So I'm wondering why you're not able to attack those markets with more aggressive pricing or something to get the utilization up on the 40 and 65.

我只是想知道為什麼你不在那裡獲得更多份額，因為通常這些節點對價格更加敏感，如果你在定價上積極，你將能夠收回份額。所以我想知道為什麼你們不能以更激進的定價或其他方式來提高 40 和 65 的利用率來攻擊這些市場。

Actually, it's not a pricing issue. It's we're affected by the last year, the second half last year, because some applications did not take off as we expected. But this year we will be more -- we are more confident of gradually improve the loading on the 65/90 starting in the Q2, going down to the end of this year.

其實，這不是價格問題。就是我們受到去年、去年下半年的影響，因為有些應用程式沒有像我們預期的那樣起飛。但今年我們會更有信心，從第二季開始一直到今年年底，逐步提高 65/90 的負載。

Okay. And are you anticipating -- what's your view of the small panel display driver market which is moving increasingly to those nodes, because there is, I guess, Power -- Powerchip is coming in with their 12-inch fab on those products, and I guess TSMC has quite a bit there in those nodes. Maybe explain for us what you're anticipating in the mobile and the display IC market for the share?

好的。您是否期待 - 您對小型面板顯示驅動器市場有何看法，該市場越來越多地轉向這些節點，因為我猜，Power - Powerchip 將在這些產品上推出其 12 英寸晶圓廠，我我猜台積電在這些節點上有相當多的資源。請為我們解釋一下您對行動和顯示 IC 市場份額的期望是什麼？

Yes, we are anticipating that especially the small panel display drivers the demand is very strong, and also some applications they are migrating to the higher end technologies. So we are pretty optimistic on that.

是的，我們預計，特別是小面板顯示器的需求將非常強勁，而且一些應用程式正在遷移到更高端的技術。所以我們對此非常樂觀。

Okay. Great. And then, Chitung, could you give us a -- I know you've given us some of the details on individual fab basis, because I know you've got different issues on fabs; you're bringing off some capacity and bringing it back on. So what's the full-year capacity growth? Do you have that number in front of you?

好的。偉大的。然後，Chitung，你能給我們一個－我知道你已經給了我們一些關於個別晶圓廠的細節，因為我知道你在晶圓廠上有不同的問題；您正在釋放一些容量並將其恢復。那麼全年產能成長是多少？你面前有這個號碼嗎？

Yes. The full-year overall capacity growth is around 5% year over year.

是的。全年整體產能年增5%左右。

Okay. Thank you, gentlemen. Congratulations on the results.

好的。謝謝你們，先生們。祝賀結果。

Thank you.

謝謝。

Steven Pelayo, HSBC.

史蒂文‧佩拉約，匯豐銀行。

Yes. If I could just quickly follow up on Dan's before my question, the capacity growth of 5% year on year; I'm curious, how does that break out? What is 300-millimeter versus 200-millimeter capacity growth?

是的。如果我能快速跟進 Dan 提出的問題之前的情況，產能年增 5%；我很好奇，這是怎麼爆發的？300 毫米與 200 毫米的產能成長如何？

The 300-millimeter growth will be accounting for 7% growth and the 8-inch will account for 3% growth.

300毫米的增長將佔7%，8英寸的增長將佔3%。

3% year over year.

較去年同期成長3%。

Year over year.

一年又一年。

Okay. You just talked -- first of all, I guess I just want to make sure from an accounting perspective, the Fujitsu license was $50m. We exclude that from the topline, the gross profit line, that comes out to a foundry gross margin of 27% excluding licenses. Do I understand that correctly?

好的。你剛才談到了——首先，我想我只是想從會計角度確定富士通的許可價值為 5000 萬美元。我們將其從總收入（毛利線）中排除，得出的代工毛利率為 27%（不包括許可證）。我的理解正確嗎？

If you're using the consolidated numbers basis, you also have to take out the new business revenue as well.

如果您使用合併數位基礎，您還必須扣除新業務收入。

Sure. Yes, yes. I was taking that as well. Okay. I just wanted to make sure I got that correct. Now, your guidance for next quarter is for a mid-20s gross margin for the foundry only business. I guess I'm trying to understand. You just said 27% excluding the license. Are we guiding the gross margins down quarter on quarter, despite higher ASPs? Can you give a little bit more specific on your guidance for the first-quarter foundry only gross margin?

當然。是的是的。我也這麼認為。好的。我只是想確保我的理解是正確的。現在，您對下個季度的指導是僅代工業務的毛利率為 20 多歲。我想我正在努力理解。你剛才說的是 27%，不包括許可證。儘管平均售價較高，我們是否仍指導毛利率逐季下降？您能否更具體地說明第一季僅代工毛利率的指引？

The guidance is mid-20, so it's a range. At this point, we cannot really say up or high -- up or down, but it's mid-20. But to answer your question, yes, we do have higher depreciation expenses for the year 2015. And as I mentioned, we are looking for around 15% to 20% increase in depreciation for the whole year, and for quarter one alone around 5% increase sequentially.

指導價是 20 左右，所以這是一個範圍。在這一點上，我們不能真正說是上漲還是高點——上漲還是下跌，但現在是 20 左右。但要回答你的問題，是的，我們 2015 年的折舊費用確實較高。正如我所提到的，我們預計全年折舊將增加 15% 至 20% 左右，僅第一季就將較上季增加 5% 左右。

5%, quarter on quarter. Okay. Can you comment a little bit -- I think you talked about having 12K to 15K in production of 28-nanometer, going to get it to over 20K by midyear. Is this -- pretty much is that 12K to 15K fully loaded today, or what's your utilization rate at 28-nanometer?

5%，季增。好的。您能評論一下嗎？我想您談到了 28 奈米生產規模為 12K 到 15K，到年中將達到 20K 以上。這是——今天幾乎是 12K 到 15K 滿載，還是 28 奈米的利用率是多少？

It's around -- we're currently around 70%.

目前大約是 70% 左右。

Current 70%. Okay. Thank you very much.

目前70%。好的。非常感謝。

Thank you.

謝謝。

Donald Lu, Goldman Sachs.

唐納德·盧，高盛。

Hi. Yes. My first question, just to follow up Steve's question, did you say your 28-nanometer capacity utilization is 70% -- 75%?

你好。是的。我的第一個問題，只是為了跟進史蒂夫的問題，你是否說你的28奈米產能利用率是70% - 75%？

Yes.

是的。

75%, okay. Great. Thank you. Yes, just following up on that, if you do a quick math that based on your 28-nanometer revenue, your capacity is at 12K to 15K, according to Chitung, and 75% utilization rate, then we get to a ASP it's not very high.

75%，好吧。偉大的。謝謝。是的，接下來，如果你快速計算一下，根據 Chitung 的說法，根據你的 28 奈米收入，你的容量為 12K 到 15K，利用率為 75%，那麼我們得到的 ASP 並不是很大的。

Yes. As our Chairman -- I mean our CEO mentioned, currently it's still some dilutive to our overall earnings, if you compare to 12-inch average, and this is largely due to the early ramp of the production.

是的。正如我們的董事長——我的意思是我們的執行長所提到的，如果與 12 英寸的平均水平相比，目前它仍然會稀釋我們的整體收益，這主要是由於產量的早期增長。

So that's a function of yield, so you expect that to improve?

那麼這是產量的函數，所以您預計會有所改善嗎？

Yes, correct.

是，對的。

I see. My next question is on the Q1 guidance. The wafer shipment is up 2% to 3%. Capacity is up a little bit. But then you said utilization is going to decline. How come -- it seems like it wouldn't get to -- utilization cannot decline if you increase your wafer shipment in Q1.

我懂了。我的下一個問題是關於第一季的指導。晶圓出貨量成長2%至3%。容量有點上升了。但你又說利用率將會下降。為什麼——看起來不會——如果你在第一季增加晶圓出貨量，利用率就不會下降。

Yes. If you go to the first page of our handout, you will find out that last quarter our shipment was actually declined sequentially with the same utilization rate. So there was some kind of pre-build of wafers, or wafer in the pipeline in Q4.

是的。如果您查看我們講義的第一頁，您會發現上季度我們的出貨量實際上以相同的使用率連續下降。因此，第四季有某種晶圓的預製或正在醞釀中的晶圓。

I see.

我懂了。

So it's a little bit larger than the normal volume in Q4 which will be shipped in Q1 this year.

所以比第四季的正常數量要大一些，今年第一季就會出貨。

Okay. So that's a little dilutive to your margin as well?

好的。那麼這也會稀釋你的利潤嗎？

Not necessarily, but it will distort the capacity utilization rate figures, for sure.

不一定，但它肯定會扭曲產能利用率數據。

Okay. Got it. And also, what's the guidance for OpEx this year?

好的。知道了。另外，今年營運支出的指導是什麼？

OpEx this year, we'll see percentage of revenue to come down a little bit, but the absolute dollar amount may stay flat.

今年的營運支出，我們將看到收入百分比略有下降，但絕對金額可能保持不變。

Flat only, the total OpEx --

總營運支出持平——

Yes, will be flattish for the full year, because there's a beneficial factor that our IBM license fee has completed by the end of 2014.

是的，全年將持平，因為有一個有利因素是我們的 IBM 授權費已在 2014 年底完成。

Okay. Got it. And will that be pretty linear throughout the year, like Q1, Q2, Q3, Q4?

好的。知道了。全年的情況會像第一季、第二季、第三季、第四季一樣呈線性嗎？

It really depends on the R&D projects. So it's hard to say yet. So the full-year number, as I mentioned, is going to be somewhat flattish compared to last year.

這實際上取決於研發項目。所以現在還很難說。因此，正如我所提到的，全年數字與去年相比將有些持平。

Okay. Got it. Thank you very much. Great result.

好的。知道了。非常感謝。很好的結果。

Thank you.

謝謝。

Andrew Lu, Barclays Capital.

安德魯·盧，巴克萊資本。

Yes. Dr. Yen and Chitung, a couple of questions. Do you have this year revenue gross target, something? A range will be useful too.

是的。顏博士和吉東，有幾個問題。你有今年的總收入目標嗎？範圍也很有用。

We cannot comment on that.

我們無法對此發表評論。

Okay.

好的。

But we -- sorry.

但我們——抱歉。

Any specific reason --?

有什麼具體原因嗎——？

But we do have some -- sorry? We do have some outlook and --

但我們確實有一些——抱歉？我們確實有一些展望——

Are we looking for double-digit growth, as TSMC guided industry growth about 12%?

我們是否正在尋求兩位數的成長，因為台積電指導產業成長約 12%？

The foundry outlook is -- according to our information, it's around 10% to 15% range growth. And for UMC, we are optimistic of the growth of 2015, but we don't comment on the effective numbers.

根據我們的訊息，代工廠的前景是 10% 到 15% 左右的成長。對於聯華電子，我們對2015年的成長持樂觀態度，但我們不對有效數字發表評論。

Thank you. The internal CapEx of $1.8b, I did not know anyone asked, which you answered earlier, is what's the breakdown of the CapEx? Is that 100% 28, or there's some CapEx going to the 14 FinFET as well?

謝謝。內部資本支出為 1.8b 美元，我不知道有人問過，您之前回答過，資本支出的細目是什麼？是 100% 28 還是有一些資本支出也流向 14 FinFET？

I can only comment that the most -- majority part, around 90%, is on 12-inch capacity expansion.

我只能評論說，大部分，大約90%，是在12吋產能擴張上。

90% on 12-inch capacity. Thank you. Do you see the competition from SMIC on 28, 40 and High-K Metal Gate, because their schedule is quite aggressive as well, but [NNC] are likely to have 10K to 15K, so it's just one year behind you?

12 吋容量為 90%。謝謝。您是否看到中芯國際在28、40和High-K Metal Gate方面的競爭，因為他們的日程安排也相當激進，但[NNC]可能有10K到15K，所以只落後您一年？

Sorry, we don't comment on our competitors. However, we are still pretty confident of our technology readiness and (inaudible) excellence both parties found in High-K Metal Gate versions. So based on our customer engagement, the demand is still pretty strong on that.

抱歉，我們不會評論我們的競爭對手。然而，我們仍然對雙方在 High-K Metal Gate 版本中發現的技術準備和（聽不清楚）卓越性充滿信心。因此，根據我們的客戶參與度，對此的需求仍然相當強勁。

Thank you. And the capacity you have on 28, you earlier mentioned it's still diluting for this year gross margin from 28-nanometer. What kind of monthly output to get the corporate average margin?

謝謝。至於 28 奈米的產能，您之前提到過，今年的毛利率仍然會受到 28 奈米的稀釋。每月什麼樣的產量才能獲得企業平均利潤率？

I don't quite understand. The monthly output is --

我不太明白。每月產量為——

Yes --

是的 -

(Multiple speakers).

（多個發言者）。

Okay. There are some -- actually, there are some other factors will affect our 28-nanometer dilutive effect. As I mentioned just earlier, the overall capacity utilization rate on 12-inch, that will have some contribution. And we foresee our overall mature node, 12-inch mature node utilization will be improved in the second half this year, so that will lift our 12-inch corporate average profitability. So that will still keep a small margin dilutive effect for our 28-nanometer profitability. So it will affect also by the utilize rate of 12-inch mature nodes.

好的。實際上，還有一些其他因素會影響我們28奈米的稀釋效應。正如我剛才提到的，對12吋整體產能利用率來說，會有一定的貢獻。我們預計我們的整體成熟節點，12英寸成熟節點利用率將在今年下半年得到改善，從而將提升我們12英寸企業的平均盈利能力。因此，這仍會對我們的 28 奈米獲利能力產生較小的利潤稀釋效應。所以也會受到12吋成熟節點利用率的影響。

Yes. Do we have a revenue target for percentage of 28 by the end of this year?

是的。今年年底我們的營收目標是否達到 28%？

Yes. By the end of this year, we are targeting around 15% to 20% of total revenue from 28-nanometer.

是的。到今年年底，我們的目標是 28 奈米佔總收入的 15% 至 20% 左右。

15% to 20%, okay. The last one I have is the solar business. I recall there is some news indicating you sell some of your solar business to other firm. So is that already factored into the first quarter's guidance?

15％到20％，好吧。我的最後一項是太陽能業務。我記得有一些消息表明您將部分太陽能業務出售給其他公司。那麼這是否已計入第一季的指導中？

It's already factored into our new business guidance in Q1, but the actual merger date is July 1.

它已經納入我們第一季的新業務指導中，但實際合併日期是 7 月 1 日。

So after July 1, can we assume that revenue and losses will be down, because the ownership on this new solar business actually is equity -- is a book holding, right, is less than 20%?

那麼，7 月 1 日之後，我們是否可以假設收入和虧損將會下降，因為這項新太陽能業務的所有權實際上是股權——是賬面控股，對吧，不到 20%？

Yes.

是的。

Okay. Thank you.

好的。謝謝。

Thanks.

謝謝。

Thank you.

謝謝。

Szeho Ng, BNP.

吳思豪，BNP。

Hi, gentlemen. I just want to ask one question on the new business. So should we assume all the new business contribution, topline and also the costs, will be gone after second -- after July this year? This is what you mean?

嗨，先生們。我只想問一個關於新業務的問題。那麼，我們是否應該假設所有新業務貢獻、營收以及成本都將在今年 7 月之後消失？這就是你的意思？

Normally, the Topcell, the silicon based solar business we had, was merged to Motech, and will be effective on July 1. There was some accounting treatment starting to become effective this year already, January 1, which is we still book some of the topline and bottom line losses, but it's good in some fiscal depreciation. So it's a little bit complicated. We can walk you through offline.

通常情況下，我們擁有的矽基太陽能業務 Topcell 被合併到 Motech，並將於 7 月 1 日生效。今年 1 月 1 日，一些會計處理已經開始生效，我們仍然預訂了一些頂線和底線損失，但在某些財政貶值中這是好的。所以有點複雜。我們可以引導您離線完成。

Okay. All right. But any rough indication about the revenue level once we take off the Topcell part?

好的。好的。但是，一旦我們去掉 Topcell 部分，收入水平有什麼粗略的跡象嗎？

Majority today is actually Topcell, so it's going to be quite minimal after July 1.

今天的大多數實際上是 Topcell，所以 7 月 1 日之後它的數量將會非常少。

But the operating loss will be probably staying around (multiple speakers)?

但營運損失可能會持續存在（多個發言者）？

Significantly reduced. Yes, significantly reduced.

明顯減少。是的，顯著減少。

Similar to the Q1 guidance you mentioned, right?

類似於您提到的第一季指導，對嗎？

Well, it depends on the market condition at that time, but at least there will be no loss contributed by Topcell.

嗯，這要看當時的市場狀況，但至少不會有Topcell貢獻的損失。

Okay. All right. Okay. Second question, what's the exchange rate you use for Q4?

好的。好的。好的。第二個問題，您第四季使用的匯率是多少？

TWD30.89.

新台幣 30.89。

TWD30.89. Okay. All right. Okay, thank you very much. Very solid.

新台幣 30.89。好的。好的。好的，非常感謝。非常紮實。

Thank you.

謝謝。

Michael Gold, Thomson Reuters.

麥可‧戈爾德，湯森路透。

Hi. Thank you for taking my question. I guess the first thing I'd like to ask about is the China plant one more time. I'm just curious if you might be able to talk about how much of your capital expenditure growth will be in that plant or just in China in general, if you could talk about that. Thanks.

你好。感謝您回答我的問題。我想我想再次詢問的第一件事是中國工廠。我只是好奇你是否能談談你的資本支出增長有多少將來自該工廠或整個中國，如果你能談談的話。謝謝。

Our CapEx of $1.8b did not include any of the Chinese spending. Currently, the Chinese spending is treated as an independent project. It's not in the Group CapEx yet.

我們 1.8 億美元的資本支出不包括任何中國支出。目前，中國的支出被視為一個獨立項目。它尚未包含在集團資本支出中。

Okay. Do you have any -- can you mention any capital expenditure plan for that this year?

好的。今年您有什麼資本支出計畫嗎？

It takes about 18 months for the construction. It will only cost minimum amount of money for building the shell, so this year the number will be quite small.

建設工期約18個月。建造外殼只需要最低限度的資金，所以今年的數量會很少。

Quite small. Okay. And then do you have any just overall goal for percent of your overall capacity to come from your China operations?

相當小。好的。那麼，對於中國業務佔總產能的百分比，您是否有任何公正的總體目標？

Well, the design capacity for the China or the Xiamen project is 50,000 wafers per month, but the more foreseeable plan is to reach 20,000 per month first by the end of 2017.

那麼中國或廈門專案的設計產能是每月5萬片晶圓，但更可預見的計畫是在2017年底先達到每月2萬片。

Okay. All right. Thank you.

好的。好的。謝謝。

Thanks.

謝謝。

Thanks.

謝謝。

[Tony], Nomura.

[托尼]，野村。

(Spoken in Chinese). My first question is that the foundry gross margin was 27% in 4Q. May I ask how many percentage from the help of foreign exchange?

（用中文說）。我的第一個問題是，第四季代工毛利率為27%。請問外匯援助的百分比是多少？

. I think we are in the same position as the other companies. Basically, we experienced about 1.5% to 2% NT dollar depreciation Q4 alone, and every 1 percentage point of NT dollar depreciation will contribute about 0.4 to 0.5 percentage point enhancement in our gross margin, so probably you can do the maths.

。我認為我們和其他公司的處境是一樣的。基本上，光是第四季度我們就經歷了約1.5%至2%的新台幣貶值，新台幣每貶值1個百分點，就會為我們的毛利率帶來約0.4至0.5個百分點的提升，所以你可以算一下。

Thank you. And in terms of the gross margin in foundry business last Q4, can we say that the 28-nanometer has already reached a positive operating margin in last 4Q?

謝謝。而從第四季代工業務的毛利率來看，我們是否可以說28奈米在第四季已經達到了正的營業利潤率？

Well, we only guided that currently it's about 3 percentage shy from our average 12-inch gross margin. And again, each quarter is very different, as you have mentioned. Our 12-inch foreseeable loading is improving in the second half of this year. So we don't really comment on that but, again, it's a small dilutive effect to our overall 12-inch operation.

嗯，我們只是預測目前它比我們 12 英寸的平均毛利率低約 3 個百分點。正如您所提到的，每個季度都有很大不同。我們的12吋可預見負載在今年下半年正在改善。所以我們並沒有真正對此發表評論，但是，這對我們整體 12 英寸業務的稀釋影響很小。

I see. So you say that it's a 3% impact to gross margin?

我懂了。所以你說這對毛利率有3%的影響？

No, it's a few percentage point dilutive effect compared to our overall 12-inch operation.

不，與我們整體 12 吋業務相比，這只是幾個百分點的稀釋效應。

Okay. I see. So in terms of the capacity, could you remind me that the 8-inch fab capacity will grow 7% year over year and the 12-inch will grow 3% year over year?

好的。我懂了。那麼在產能方面，您能否提醒我一下，8吋晶圓廠產能將年增7%，12吋產能將較去年同期成長3%？

The opposite.

相反。

Opposite.

對面的。

12-inch grows 7% and 8-inch grows 3% year over year.

12吋年增7%，8吋年增3%。

I see. So what is the High-K Metal Gate and poly-SiON capacity allocation, if you want to reach 20.5K per month in the first half and 30K wafer per month in the end of this year.

我懂了。那如果要上半年達到每月20.5K片，今年底達到每月30K片，那麼High-K Metal Gate和poly-SiON的產能配置是多少呢？

Yes. In the 2Q 2015, our High-K Metal Gate will take up 12.5K.

是的。2015年第二季度，我們的High-K Metal Gate將佔12.5K。

Pardon?

赦免？

12.5K among the 20.5K per month capacity. So High-K Metal Gate will be major part.

每月 20.5K 容量中的 12.5K。所以高K金屬閘極將是主要部分。

Okay. 12.5K, right?

好的。12.5K，對吧？

Yes. So the poly-SiON will be 8K.

是的。所以多晶矽將是8K。

I see.

我懂了。

In the Q2.

在第二季。

I see. So how about the end of the year?

我懂了。那麼年底又如何呢？

It will be kind of proportional. It is kind of proportional, down to the 30K.

這將是成比例的。它有點成比例，低至 30K。

I see.

我懂了。

Majority part will be still the High-K Metal Gate version.

大部分仍為 High-K Metal Gate 版本。

In terms of the new business, so for Q1 guidance, Topcell's still included in the consolidated financial statement, right, so the profitability loss is also included Topcell?

就新業務而言，那麼對於第一季指導，Topcell仍然包含在合併財務報表中，對吧，所以獲利能力損失也包含在Topcell中？

As I mentioned, majority of the topline and bottom line is included all the way until July 1. However, due to some accounting treatment which is quite complicated, the fixed costs or the depreciation of the Topcell is excluded from the consolidation starting from January 1. Again, we can walk you through the details if you -- offline.

正如我所提到的，大部分營收和利潤一直包含在7 月1 日之前。但是，由於一些相當複雜的會計處理，固定成本或Topcell 的折舊從1 月1 日開始不包括在合併範圍內。再次強調，如果您處於離線狀態，我們可以引導您了解詳細資訊。

Okay. My last question is what is the FX guidance in Q1?

好的。我的最後一個問題是第一季的外匯指引是什麼？

We don't take a FX forecast, but we just follow the Bloomberg numbers.

我們不進行外匯預測，但我們只是專注於彭博社的數據。

Okay. I see. Thank you. (Spoken in Chinese).

好的。我懂了。謝謝。（用中文說）。

Thank you.

謝謝。

Roland Shu, Citigroup.

羅蘭舒，花旗集團。

Thanks to take my questions. Actually, most of my questions have been asked and answered. One more question is for all new business are we going to invest more in the new business, such as gallium arsenide or other items? Do we have any plan on that?

感謝您回答我的問題。事實上，我的大部分問題已經被問到並得到解答。還有一個問題是，對於所有新業務，我們是否要在新業務上投入更多資金，例如砷化鎵或其他專案？我們對此有什麼計劃嗎？

Well, first of all, we don't have any mass expansion plan for solar related. However, we recently did some corporate restructure for gallium arsenide business. Not only we see the growth potential there, but also they will play a big role in transitioning our 6-inch wafer fab from CMOS base to eventually gallium arsenide base for the longer term. It helps us to phase out the 6-inch wafer plant in the longer term. That will be the key focus in terms of new business for the near future.

嗯，首先，我們沒有任何與太陽能相關的大規模擴張計劃。不過，我們最近對砷化鎵業務進行了一些公司重組。我們不僅看到了那裡的成長潛力，而且從長遠來看，它們將在我們的 6 吋晶圓廠從 CMOS 基地過渡到最終砷化鎵基地的過程中發揮重要作用。從長遠來看，它有助於我們逐步淘汰6吋晶圓廠。這將是近期新業務的重點。

So how much you are going to spend to turn this 6-inch fab to the gallium arsenide fab?

那你要花多少錢把這個6吋晶圓廠改造成砷化鎵晶圓廠呢？

Well, it's all existing facility with a minimum upgrade, so it's not going to be much. And most of the CapEx will be supplied by the internally generated cash.

好吧，這都是現有設施，只有最低限度的升級，所以不會太多。大部分資本支出將由內部產生的現金提供。

Okay. So the investment of CapEx actually is not included into this $1.8b CapEx plan this year?

好的。那麼今年的 1.8b 美元資本支出計畫中實際上沒有包含資本支出投資嗎？

No, that $1.8b is only for UMC foundries.

不，這 1.8b 美元僅適用於 UMC 代工廠。

Okay. So it does not include this. And then what's your plan for the dividend this year?

好的。所以不包括這個。那麼今年的股息分配計畫是什麼？

I mentioned it's up to our Board meeting sometime in March or April. However, we will try to have a very stable, predictable dividend policy as we can.

我提到這取決於我們三月或四月某個時候的董事會。然而，我們將盡力製定非常穩定、可預測的股利政策。

Okay. Thanks. And last question is on your -- given this $1.8b CapEx spending and also given the continued investment in the Xiamen, and also with this potentially dividend payout, so are we considering to raise money this year? And if we do, by what kind of method? Thank you.

好的。謝謝。最後一個問題是關於您的——鑑於這 1.8 億美元的資本支出以及對廈門的持續投資，以及潛在的股息支付，那麼我們今年是否考慮籌集資金？如果我們這樣做，用什麼方法？謝謝。

Well, each year we've been raising money from different instruments, so I think this year we will continue to do so, but mostly it will come from debt market.

嗯，每年我們都會透過不同的工具籌集資金，所以我認為今年我們將繼續這樣做，但主要來自債務市場。

Okay. Thank you.

好的。謝謝。

Thanks.

謝謝。

Rick Hsu, Daiwa Capital Markets.

Rick Hsu，大和資本市場。

Yes. Hi. Good evening and good result. Congratulations. Just a couple of questions here. I think I probably missed the number. Have you guys talked about your 28-nanometer capacity build by the end of this year? I know it's around 20.5 mid this year. What about by the end of this year?

是的。你好。晚上好，結果很好。恭喜。這裡只有幾個問題。我想我可能錯過了這個號碼。你們有談過今年年底前的 28 奈米產能建設嗎？我知道今年是20.5左右。到今年底呢？

There will be addition of 9,000 wafer capacity sometime end of this year or early next year from our second phase, P -- Phase 5 facility.

在今年年底或明年初的某個時候，我們的第二期 P——第五期工廠將增加 9,000 片晶圓產能。

Okay. So I can fairly assume probably around 30K by the end of this year, right?

好的。所以我可以合理地假設到今年年底可能會達到 30K 左右，對嗎？

Or early next year, yes.

或者明年初，是的。

Early next. Okay. Good. The second question is I would like you guys to give me a bit more color about your gross margin trend throughout the whole year, because it seems to me that -- you talk about 10% to 15% year-on-year increase in the overall foundry business -- foundry market. And I'm not so sure how much you guys will grow in terms of UMC foundry development this year, but you also mentioned about your depreciation is going to grow by 15% to 20% year on year. That is much higher than last year.

接下來早一點。好的。好的。第二個問題是，我希望你們能夠給我更多關於你們全年毛利率趨勢的信息，因為在我看來——你們談到毛利率同比增長 10% 到 15%。整體代工業務——代工市場。我不太確定今年聯電代工發展方面你們會成長多少，但你們也提到你們的折舊將年增15%到20%。這比去年高得多。

So I'm wondering, it looks to me like your depreciation cost this year is going to rise much faster than your total revenue growth. So how will that impact your overall margin trend throughout the whole year?

所以我想知道，在我看來，你們今年的折舊成本的成長速度將遠遠快於總收入的成長速度。那麼這將如何影響您全年的整體利潤率趨勢？

Well, that's certainly a big challenge we face for 2015. But, again, if we cannot cover the topline, we can certainly not cover the bottom line. But we do see new business -- I mean the incremental revenue growth coming from our leading edge revenue. Hopefully, it will improve throughout the yield curve improvement. And we also have a plan for our mature 12-inch node utilization rate to go higher in the second half, which has been addressed, for our overall profitability. So, all together, there are positive and negative factors for 2015, but we will try our best.

嗯，這無疑是我們 2015 年面臨的巨大挑戰。但是，如果我們不能覆蓋頂線，當然也不能覆蓋底線。但我們確實看到了新業務——我的意思是來自我們領先優勢收入的增量收入成長。希望它會隨著殖利率曲線的改善而改善。而且我們還有計劃下半年我們成熟的12英寸節點利用率會更高，這已經得到解決，以提高我們整體的盈利能力。所以，總的來說，2015年有正面的因素，也有負面的因素，但我們會盡力而為。

Okay. Got you. Thank you. Okay. Yes, last question I have. Thank you so much.

好的。明白你了。謝謝。好的。是的，我還有最後一個問題。太感謝了。

Thank you.

謝謝。

(Inaudible), CIMB.

（聽不清楚），聯昌國際銀行。

Hi, Chitung. Thanks for taking my question. My question is on the new business. Can you tell us what's the number attributed to the Topcell in 2014 in terms of the loss?

嗨，吉東。感謝您提出我的問題。我的問題是關於新業務的。您能告訴我們2014年Topcell的虧損是多少嗎？

For example, for Q4 it was about TWD500m also losses, and less than half come from Topcell. So a little bit less than half come from Topcell.

例如，第四季也有約 5 億新台幣的損失，其中不到一半來自 Topcell。因此，不到一半來自 Topcell。

So for the new business as a whole, should we assume the last year the loss from Topcell is about 50%?

那麼對於整個新業務來說，我們是否應該假設Topcell去年的虧損約為50%？

Well, I only have the Q4 number, but that may be the ballpark figures.

好吧，我只有第四季的數字，但這可能是大概的數字。

Okay. So at --

好的。所以在——

For Q1, Topcell actually was profitable. I think Q1 or Q2 last year. So I cannot remember exactly, but Q4 that was the case I mentioned.

第一季度，Topcell 實際上實現了盈利。我認為去年第一季或第二季。所以我記不太清楚了，但我提到的第四季就是這種情況。

Thanks a lot. So you mentioned that you're not going to invest in a solar business any more, but will you further divest other solar operation? When I look at the balance sheet, I think there are still about three to four investments in solar related business. Will that be the direction you're going to continue to divest in the solar business?

多謝。您提到您不會再投資太陽能業務，但您會進一步剝離其他太陽能業務嗎？當我查看資產負債表時，我認為太陽能相關業務仍有大約三到四項投資。這會是您繼續剝離太陽能業務的方向嗎？

I did not say we will not invest in solar business. I said we will not expand the solar capacity, but we will continue to invest for the sake of efficiency and profitability, competitiveness enhancement. So we will continue to invest, but not for capacity alone.

我並沒有說我們不會投資太陽能業務。我說我們不會擴大太陽能產能，但我們會繼續投資，以提高效率和獲利能力，增強競爭力。因此，我們將繼續投資，但不僅僅是為了產能。

And as for divestment plan, we don't really have any concrete plan. But, again, anything can benefit our competitiveness or efficiency of our solar plant, we will do it.

至於撤資計劃，我們還沒有任何具體的計劃。但是，再次強調，任何可以有利於我們的競爭力或太陽能發電廠效率的事情，我們都會去做。

Okay. Thanks a lot for the clarification. That's all the questions I have. Thanks a lot.

好的。非常感謝您的澄清。這就是我的所有問題。多謝。

Thank you.

謝謝。

Thank you for all your questions. That concludes today's Q&A session. I will turn things over to UMC Head of Investor Relations for closing remarks.

感謝您提出的所有問題。今天的問答環節到此結束。我將把事情交給聯華電子投資人關係主管做總結發言。

Thank you, everyone, for joining us. We appreciate your questions today. If you have any additional follow-up questions, please feel free to contact UMC at IR at umc.com. Have a good day. Bye, bye.

謝謝大家加入我們。我們感謝您今天提出的問題。如果您有任何其他後續問題，請隨時透過 umc.com 聯絡 UMC IR。祝你有美好的一天。再見。

Ladies and gentlemen, that concludes our conference for fourth quarter 2014. Thank you for your participation in UMC's conference. There will be a webcast replay within an hour. Please visit www.umc.com under the Investor Relations, Investor Events section. You may now disconnect. Goodbye.

女士們、先生們，我們 2014 年第四季的會議到此結束。感謝您參加聯華電子的會議。一小時內將進行網路廣播重播。請造訪 www.umc.com 的「投資者關係」、「投資者活動」部分。您現在可以斷開連線。再見。