聯華電子 (UMC) 2015 Q3 法說會逐字稿

Welcome everyone to UMC's 2015 third quarter earnings conference call. (Operator Instructions). After the presentation there will be a question and answer session. (Operator Instructions). For your information this conference call is now being broadcast live over the Internet. A webcast replay will be available within an hour after the conference has finished. Please visit our website www.umc.com under the Investor Relations Investors' Event section.

歡迎大家參加聯電2015年第三季度財報電話會議。 （操作員說明）。演講結束後將進行問答環節。 （操作員說明）。為了您的信息，這次電話會議現在正在互聯網上進行現場直播。會議結束後一小時內將提供網絡直播重播。請訪問我們的網站 www.umc.com 的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，我想介紹聯電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, everyone, to UMC's third quarter 2015 earnings conference call. Joining me today are Mr. Po Wen Yen, the CEO of UMC, and Mr. Chitung Liu, the CFO of UMC.

謝謝大家，歡迎大家參加聯華電子 2015 年第三季度財報電話會議。今天和我一起的還有聯電CEO樸文彥先生和聯電CFO劉智東先生。

In a moment we will hear our CFO present third quarter financial results followed by the key message from our CEO addressing UMC's focus and the fourth quarter guidance. After their remarks we will proceed to a Q&A session. UMC's quarterly financial reports are available at our website www.umc.com under the Investors Financial section.

稍後，我們將聽到我們的首席財務官介紹第三季度財務業績，然後是我們的首席執行官關於聯華電子的重點和第四季度指導的關鍵信息。在他們的發言之後，我們將進行問答環節。 UMC 的季度財務報告可在我們的網站 www.umc.com 的“投資者財務”部分下獲得。

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 filing with the SEC in the US and the ROC security authorities.

在本次會議期間，我們可能會根據管理層當前的預期和信念做出前瞻性陳述。這些前瞻性陳述受到許多可能導致實際結果出現重大差異的風險和不確定性的影響，包括可能超出公司控制範圍的風險。對於這些風險，請參閱聯電向美國 SEC 和中華民國安全機構提交的文件。

I would now like to introduce UMC's CFO, Mr. Chitung Liu, to discuss UMC's third quarter 2015 business results.

我現在想介紹聯電的首席財務官劉奇東先生，討論聯電2015年第三季度的業績。

Thank you, Bowen. I would like to go through the third quarter 2015 investor conference presentation material which has been -- can be downloaded from our website.

謝謝你，鮑文。我想瀏覽一下 2015 年第三季度投資者會議的演示材料——可以從我們的網站下載。

Starting on page 3 of the third quarter 2015, consolidated revenue was TWD35.32b with gross margin at 19.6% and operating margin at 2.8%.

從 2015 年第三季度的第 3 頁開始，綜合收入為 TWD35.32b，毛利率為 19.6%，營業利潤率為 2.8%。

The net income attributable to the stockholders of the parent was TWD1.71b and the earnings per ordinary share were TWD0.14. And capacity utilization rate has dropped by around 5 percentage points to 89% in the third quarter.

歸屬於母公司股東的淨利潤為TWD1.71b，每股普通股收益為TWD0.14。第三季度產能利用率下降約5個百分點至89%。

Now please turn to page 4 which is the statement of income. Revenue of 35.3% (sic - see slide 4 "TWD35.32b") in the third quarter was down 7% compared to the second quarter of 2015.

現在請轉到第 4 頁，即收入報表。第三季度收入為 35.3%（見幻燈片 4“TWD35.32b”），與 2015 年第二季度相比下降了 7%。

Gross profit reached 19.6% of total revenue or TWD6.9b, and net income is TWD1.3b, or 3.7% of the total revenue. And the EPS, as I mentioned earlier, is TWD0.14 per Taiwan ordinary share.

毛利達到總收入的19.6%或TWD6.9b，淨收入為TWD1.3b，或總收入的3.7%。正如我之前提到的，每股收益為台灣普通股 TWD0.14。

On page 5 here is the cumulative first three quarters' financial statement. Revenue shows an 8% year-over-year growth for the period of January through September, reached TWD110.9b in revenue.

第 5 頁是前三個季度的累計財務報表。 1 月至 9 月期間收入同比增長 8%，收入達到 TWD110.9b。

Gross margin is 22.3%, and also gross profit improved 14.4% year-over-year to TWD24.7b.

毛利率為 22.3%，毛利潤同比增長 14.4% 至 TWD24.7b。

And net income reached TWD9.76b, a growth of 39% year over year. As a result, the EPS is TWD0.82 and EPS per ADS is TWD0.125.

淨收入達到TWD9.76b，同比增長39%。因此，每股收益為 TWD0.82，每股 ADS 的每股收益為 TWD0.125。

On page 6 is our abbreviated balance sheet. Cash and cash equivalents is TWD52.1b and the total assets is TWD329b, with the stockholders' equity around TWD223b.

第 6 頁是我們的簡要資產負債表。現金及現金等價物為TWD52.1b，總資產為TWD329b，股東權益為TWD223b左右。

On page 7 is a breakdown by segment. The majority of our revenue was coming from our wafer fabrication department, or segment. Revenue is a small difference compared to our consolidated number. TWD35.07b is the segment revenue under foundry and, as a result, you can tell the new businesses has a very minor impact on our overall consolidated numbers.

第 7 頁是按細分市場劃分的。我們的大部分收入來自我們的晶圓製造部門或部門。與我們的合併數字相比，收入差異很小。 TWD35.07b 是代工部門的收入，因此，您可以看出新業務對我們的整體合併數字的影響非常小。

On page 8 we are looking at a single digit decline in ASP in the previous quarter, the third quarter of 2015.

在第 8 頁，我們看到 2015 年第三季度上一季度的 ASP 出現了個位數的下降。

On page 9, our sales breakdown among different regions are relatively similar to the previous quarter. North America is about 45% and Asia is 41%. We see steady growth coming out of our Japan and Europe regions.

在第 9 頁，我們在不同地區的銷售明細與上一季度比較相似。北美約為 45%，亞洲為 41%。我們看到日本和歐洲地區的穩定增長。

And for IDM, it still represents about 12% of our total revenue in the third quarter of 2015.

而對於 IDM 來說，它仍然占我們 2015 年第三季度總收入的 12% 左右。

On page 11, communication remains unchanged, accounting for 55% of our total revenue, and consumer is another 27%.

在第 11 頁，通信保持不變，占我們總收入的 55%，消費者佔 27%。

And 28-nanometer and below represents about 10% of our total revenue, a similar percentage to second quarter of 2015. And 40-nanometer continued to show a relative strength with 25% of our total revenue in the third quarter.

28 納米及以下材料約占我們總收入的 10%，與 2015 年第二季度的百分比相似。40 納米繼續顯示出相對優勢，在第三季度占我們總收入的 25%。

On page 13 is our capacity breakdown by fab and there's about 1.6% increase in the third quarter, mainly coming from our 8-inch wafer fab in China again.

第 13 頁是我們按晶圓廠劃分的產能分佈，第三季度增長約 1.6%，主要來自我們在中國的 8 英寸晶圓廠。

Our capital expenditure plan for 2015 for foundry segment remains unchanged, around $1.8b.

我們 2015 年鑄造部門的資本支出計劃保持不變，約為 $1.8b。

The above is the summary of UMC's results for third quarter of 2015. More details are available in the report which has been posted on our website.

以上是聯華電子 2015 年第三季度業績摘要。更多詳情請參閱我們網站上發布的報告。

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

我現在將把電話轉給 UMC 首席執行官 Yen 先生。

Thank you, Chitung. Hello, everyone. I would like to update everyone on UMC's third quarter operating results.

謝謝你，赤東。大家好。我想向大家介紹聯電第三季度的經營業績。

In the third quarter of 2015 our foundry segment posted revenue of TWD35.08b, with gross margin at 20.3%.

2015 年第三季度，我們的代工部門公佈收入為 TWD35.08b，毛利率為 20.3%。

Wafer shipment totaled 1.47m 8-inch equivalent wafers, leading to an overall capacity utilization rate of 89%.

晶圓出貨量總計 147 萬片 8 英寸等效晶圓，整體產能利用率為 89%。

Our 40-nanometer revenue contribution grew to 25% of total sales, driven by demand strength in the communication and consumer segments.

在通信和消費領域需求強勁的推動下，我們 40 納米的收入貢獻增長到總銷售額的 25%。

Our 8-inch utilization maintained above 95%, reflecting stable demand for logic and specialty applications.

我們的 8 英寸利用率保持在 95% 以上，反映了對邏輯和專業應用的穩定需求。

To better take advantage of the opportunities within mature nodes, UMC will leverage the advancements made in proven technologies to help customers compete in the IoT market. We recently announced volume production for touch controller ICs based on UMC's 0.11-micron embedded flash process that uses the most aggressive aluminum metal design rules to strengthen customers' product and market competitiveness through lower die cost.

為了更好地利用成熟節點內的機會，聯華電子將利用成熟技術的進步來幫助客戶在物聯網市場中競爭。我們最近宣布量產基於聯華電子 0.11 微米嵌入式閃存工藝的觸控控制器 IC，該工藝採用最激進的鋁金屬設計規則，通過降低芯片成本來增強客戶的產品和市場競爭力。

In terms of corporate sustainability, in the third quarter 2015 UMC was selected as a DJSI, Dow Jones Sustainability Index, global component for the eighth consecutive year.

在企業可持續發展方面，聯華電子於 2015 年第三季度連續第八年入選道瓊斯可持續發展指數全球成份股。

Although the continuing IC inventory adjustment will dampen fourth quarter wafer shipments, UMC continues on the path towards long-term growth. While Moore's Law continues, 28-nanometer remains a strong and long-lasting node with many applications migrating to this geometry. Throughout 2015 UMC engineers have worked tirelessly to bring several new 28-nanometer product tape-outs into volume production.

儘管持續的 IC 庫存調整將抑制第四季度的晶圓出貨量，但聯華電子繼續走上長期增長的道路。雖然摩爾定律仍在繼續，但 28 納米仍然是一個強大且持久的節點，許多應用程序正在遷移到這種幾何形狀。整個 2015 年，UMC 工程師孜孜不倦地工作，將幾個新的 28 納米產品流片投入量產。

At the same time we have also received multiple customer enquiries requesting optimized, cost-effective solutions derived from our fundamental 28-nanometer High-K Metal Gate process. UMC is working to bring a timely conversion of new 28-nanometer requirements into production which will strengthen our business.

同時，我們還收到了多個客戶諮詢，要求從我們的基本 28 納米高 K 金屬柵極工藝中獲得優化、具有成本效益的解決方案。 UMC 正在努力將新的 28 納米要求及時轉化為生產，這將加強我們的業務。

In addition, UMC is also levering mature node technology development to deliver specialty technology platforms addressing customers' requirements, applications, further diversifying our product mix.

此外，聯華電子還利用成熟的節點技術開發，提供滿足客戶需求和應用的專業技術平台，進一步豐富我們的產品組合。

Going forward UMC will continue to drive process innovations across leading edge and legacy technologies, as well as proactively expanding worldwide manufacturing services to support our growth in the IC industry.

展望未來，聯華電子將繼續推動領先和傳統技術的工藝創新，並積極擴展全球製造服務，以支持我們在 IC 行業的發展。

Now please allow me some time to summarize the recent highlights in Chinese.

現在請允許我用中文總結一下最近的亮點。

(Spoken in Chinese).

（用中文講）。

I have finished my remarks and now let me go over the fourth quarter 2015 guidance. The fourth quarter wafer shipments will show a decrease of less than 5%. The ASP in US dollars to decrease by approximately 1%. The UMC gross margin will be in the high teens percentage range. Our capacity utilization rate for the foundry segment will be in the low 80% range.

我已經完成了我的發言，現在讓我回顧一下 2015 年第四季度的指導。第四季度晶圓出貨量將下降不到 5%。以美元計的 ASP 下降約 1%。聯華電子的毛利率將在十幾歲的百分比範圍內。我們在鑄造領域的產能利用率將在 80% 的較低範圍內。

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, yes. thank you. My first question, I wanted to ask if you can give an update on the 28-nanometer? If you expect that to rebound and grow as a percent of sales in the fourth quarter, or it takes us getting through the inventory correction? And if you could look out into 2016, how you expect that to ramp as a percent of sales and within that, the mix of High-K Metal Gate versus Poly/SiON?

好的，是的。謝謝你。我的第一個問題，我想問您是否可以提供有關 28 納米的更新？如果您預計第四季度將反彈並佔銷售額的百分比增長，還是需要我們通過庫存調整？如果您可以展望 2016 年，您如何期望其占銷售額的百分比以及在此期間，高 K 金屬柵極與 Poly/SiON 的混合？

Yes. On the 28-nanometer we remain positive based on our customer engagement and we probably need more time to see if our sales rebound in the coming quarters. However, our 28-nanometer, we believe will reach bottom in the end of this year or early next year.

是的。在 28 納米方面，基於我們的客戶參與度，我們保持積極態度，我們可能需要更多時間來看看我們的銷售是否會在未來幾個季度反彈。但是，我們的 28 納米，我們相信會在今年年底或明年初觸底。

Okay. So if it starts to grow after, beginning next year, it sounds like again.

好的。因此，如果它在之後開始增長，從明年開始，聽起來又像。

And maybe the follow-up more broadly, with third and fourth quarter slowing down, could you give an update on your view of inventory getting back to normal and setting up even potential for first quarter to be seasonal or better. In the past few years, seasonal seemed like it was flat or even up in first quarter. If you think given the correction we could have that type of scenario?

也許隨著第三季度和第四季度放緩的更廣泛的後續行動，您能否就您對庫存恢復正常的看法提供更新，並為第一季度甚至可能成為季節性或更好的情況提供信息。在過去的幾年裡，季節性似乎在第一季度持平甚至上升。如果您認為經過更正，我們可能會遇到這種情況？

If our customer demand focus have been restabilized and the customer inventory shall move closer to reasonable levels in a few months and, as I mentioned just now, our foundry revenue we believe will reach the bottom, even in the end of this year or the beginning of 2016. So --

如果我們的客戶需求重心重新穩定，客戶庫存將在幾個月內接近合理水平，正如我剛才提到的，我們相信我們的代工收入將觸底，甚至在今年年底或年初2016 年。所以——

Okay.

好的。

Yes.

是的。

Oh, go ahead. Okay. If I could ask then, your CapEx and capacity outlook, this year it's $1.8b to add some 28. Could you give a view on there was some capacity you had pushed out to reach 29,000 to 30,000 on 28. Could you give an update if that capacity plan is moving ahead and if we should think a similar level? I think in the past it was similar to operating cash flow for CapEx at around $1.8b reasonable baseline again for next year.

哦，繼續。好的。如果我當時可以問，您的資本支出和產能前景，今年增加一些 28 是 $1.8b。您能否就您在 28 日推出的一些產能達到 29,000 到 30,000 給出一個看法。如果您能提供最新信息該容量計劃正在向前推進，我們是否應該考慮類似的水平？我認為在過去它類似於資本支出的運營現金流，明年再次以 1.8b 美元左右的合理基準。

Our 28-nanometer capacity will reach the 30K by the second half of 2016. So the, yes, the CapEx for -- we are still working on our CapEx for 2016.

我們的 28 納米產能將在 2016 年下半年達到 30K。所以，是的，資本支出——我們仍在研究 2016 年的資本支出。

Okay. So it's still being set. I guess for Chitung, will depreciation, it moved up this year. On baseline plan does that start to slowdown now after the increase this year, so it could help gross margin a bit?

好的。所以還在設置中。我猜對於吉東來說，會貶值，今年它上升了。在基線計劃上，在今年增加之後現在開始放緩，所以它可以幫助毛利率一點嗎？

Well, unfortunately our depreciation policy is five plus one. So it's going to last for a couple of years. This year, 2015, our depreciation expenses, this is likely to grow by 15% to 20% and that's likely to be the range for next year as well.

好吧，不幸的是，我們的折舊政策是五加一。所以它會持續一兩年。今年，2015 年，我們的折舊費用可能會增長 15% 到 20%，這也可能是明年的範圍。

The range meaning similar depreciation or --?

該範圍意味著類似的折舊或--？

Meaning the growth rate, growth rate.

意思是增長率，增長率。

So another 15% to 20%, okay. All right. Thanks a lot for the updates.

所以再增加 15% 到 20%，好吧。好的。非常感謝您的更新。

Thanks.

謝謝。

Thanks.

謝謝。

Bill Lu, Morgan Stanley.

比爾·盧，摩根士丹利。

Yes hi. Thank you for taking my questions. Your 8-inch wafer demand remains very high. Can you talk about what is driving that, the outlook for 8-inch demand going into next year and whether you can add some capacity too if demand is good?

是的，你好。謝謝你接受我的問題。您的 8 英寸晶圓需求仍然很高。您能否談談是什麼推動了這一趨勢，明年 8 英寸需求的前景以及如果需求良好，您是否也可以增加一些產能？

Yes our 8-inch, yes mostly still maintain pretty high utilization rates and the driving is coming from really across the board. Communication and consumer and, yes, mostly on the high-voltage drivers and our power management and some RF applications.

是的，我們的 8 英寸，是的，大多數情況下仍然保持著相當高的利用率，並且驅動力來自於全面。通信和消費，是的，主要是關於高壓驅動器和我們的電源管理以及一些射頻應用。

Thank you. What is the outlook for 8-inch next year?

謝謝你。明年8寸前景如何？

We don't guide for the moment for the next year.

我們暫時不指導明年。

Okay and the last part of that question was if demand does stay robust for 8-inch foundry in 2016, do you have the ability to add some capacity?

好的，這個問題的最後一部分是，如果 2016 年 8 英寸代工的需求確實保持強勁，你有能力增加一些產能嗎？

I think we've been pushing our day capacity to almost maximum level this year in 2015 and we are continuing to do upgrades as well as increase the variety of technology. So I think for the time being that's likely to be our key focus for 2015 and also 2016.

我認為我們已經在 2015 年將我們的日產能推到了幾乎最高水平，並且我們將繼續進行升級並增加技術的種類。所以我認為目前這可能是我們 2015 年和 2016 年的重點。

Okay, got it. Changing topics. On 28-nanometers, Mr. Yen made the comment and also it's in the press release that UMC is working to bring a timely conversion of new 28-nanometer requirements into production. Can you explain that to me? What are these new 28-nanometer requirements? Are the requirements changing now versus a couple of quarters ago? What's going on there?

好，知道了。改變話題。關於 28 納米，Yen 先生髮表了評論，並且在新聞稿中，聯電正在努力將新的 28 納米要求及時轉換為生產。你能給我解釋一下嗎？這些新的 28 納米要求是什麼？與幾個季度前相比，現在的要求是否發生了變化？那裡發生了什麼事？

Yes, we continue to evolve our 28-nanometer process platform. So it's also a help to provide the better performance, lower cost solutions to meet the customers' requirements. So those are, will continue to evolve.

是的，我們繼續發展我們的 28 納米工藝平台。因此，提供性能更好、成本更低的解決方案也有助於滿足客戶的需求。因此，這些將繼續發展。

Okay. If I look at your 28, it's staying at this level, roughly 10% of sales. Do you think there's a concept that there is a window of opportunity because if I look at TSMC they're now in year four of production and they have reduced their costs quite significantly, right? So, I don't know exactly, but my guess is that their ASP is quite a bit lower than what it's been three, four years ago. If you don't get this ramped up, do you think the opportunity is lost forever?

好的。如果我看看你的 28 歲，它就保持在這個水平，大約佔銷售額的 10%。你是否認為有一個機會之窗的概念，因為如果我看看台積電，他們現在已經進入第四年生產並且他們已經大大降低了成本，對嗎？所以，我不太清楚，但我猜他們的 ASP 比三、四年前要低很多。如果你不讓這個增加，你認為機會永遠失去了嗎？

Yes, I agree with that. And so we are actually impacted by the market dynamics and as far as our customer and also UMC and -- however based on our customer engagement, we still continue being positive to gain the 28-nanometer market share. So our internal target to achieve over 15% to 20% revenue share on 28 will be by the second quarter 2016.

是的，我同意這一點。因此，我們實際上受到市場動態的影響，就我們的客戶和聯華電子而言——然而，基於我們的客戶參與度，我們仍然積極爭取 28 納米市場份額。因此，我們在 28 日實現超過 15% 到 20% 的收入份額的內部目標將在 2016 年第二季度實現。

That's very helpful. Thank you.

這很有幫助。謝謝你。

And based on our customer engagement we are also gradually increase our capacity. So when we reach the 28-nanometer economies of scale capacity, then we believe that by the second half of next year we believe that profitability will get improved.

基於我們的客戶參與度，我們也在逐步增加我們的產能。所以當我們達到28納米的規模經濟產能，那麼我們相信到明年下半年我們相信盈利能力會得到提升。

Thank you. Let me ask one last question and then I'll hand it off. 40-nanometer was quite good in the third quarter. Can you talk a little bit more about that, what drove that?

謝謝你。讓我問最後一個問題，然後我會交給它。 40 納米在第三季度相當不錯。你能多談一點嗎，是什麼驅動了它？

Yes. It was pretty much grown by the communication segment, especially the Wi-Fi and the ISP, image signal processor, and some mid-low end application processor and some baseband applications.

是的。它幾乎是由通信領域發展而來的，尤其是 Wi-Fi 和 ISP、圖像信號處理器以及一些中低端應用處理器和一些基帶應用。

Great. Understood. Thank you very much.

偉大的。明白了。非常感謝。

Thank you.

謝謝你。

Szeho Ng, BNP.

Szeho Ng，法國巴黎銀行。

Hi. Good evening. I just want to know the FX assumption for Q3.

你好。晚上好。我只想知道第三季度的外匯假設。

The FX was 32.1 --

外彙為 32.1 --

Okay, all right. I see. Also, in Q3 I notice there is a very odd operating expense number. Could you explain a little bit what it is?

好吧，好吧。我懂了。此外，在第三季度，我注意到有一個非常奇怪的運營費用數字。你能解釋一下它是什麼嗎？

Please say that again, please.

請再說一遍，拜託。

Yes. There is a very odd operating expense number, TWD804m. I just want to know what it is about.

是的。有一個非常奇怪的運營費用數字，TWD804m。我只是想知道它是關於什麼的。

We had an impairment loss from the dollar subsidiary NexPower. They have actually an impairment loss in the third quarter and we took about TWD800m hit in the same quarter.

我們從美元子公司 NexPower 獲得了減值損失。他們實際上在第三季度有減值損失，我們在同一季度遭受了大約 8 億新台幣的損失。

Okay. And should we expect more to come in the next couple of quarters, or is it pretty much that?

好的。我們是否應該期待在接下來的幾個季度中會出現更多，還是差不多這樣？

Yes. Same position and of course from an accounting policy point of view, we have to take whatever we believe the future is going to be. So hopefully the execution is going to be on track and we are still monitoring the subsidiary very closely.

是的。同樣的立場，當然從會計政策的角度來看，我們必須採取我們認為未來的任何方式。因此，希望執行能夠走上正軌，我們仍在密切監視子公司。

Okay. All right. And what is still left on the balance sheet right now for that operation?

好的。好的。現在資產負債表上還剩下什麼用於該操作？

The tax asset for NexPower is about TWD2.8b.

NexPower 的稅收資產約為 TWD2.8b。

Okay I see. All right. Got you. And a final question. Could you comment a little bit about the pricing environment for, especially for the 40-nano and 28-nano?

好的，我明白了。好的。得到你。最後一個問題。您能否評論一下定價環境，尤其是 40 納米和 28 納米的定價環境？

Sorry, it was?

對不起，是嗎？

Pricing.

價錢。

Pricing environment, it's very clear and every time. So the pricing is, yes. Anyway, we will bring all our efforts to improve our product portfolio for those niche and specialty customers to improve our pricing structure for the 40 and 28-nanometer.

定價環境，每次都很清楚。所以定價是，是的。無論如何，我們將竭盡全力為那些利基和專業客戶改進我們的產品組合，以改善我們的 40 和 28 納米定價結構。

Okay. All right. For the 40-nano, is it all right for you to comment a bit? That part of the operation, the margin I mean, is already above the corporate average?

好的。好的。對於40納米，您可以評論一下嗎？那部分業務，我的意思是利潤率，已經高於公司平均水平？

Yes.

是的。

Okay. All right. That's great. Thank you very much.

好的。好的。那太棒了。非常感謝。

Thank you.

謝謝你。

Michael Chou, Deutsche Bank.

德意志銀行的邁克爾·週。

Hi. Thank you for taking my question. Two questions. The first one is could you give some color regarding your portion for Poly-SiON and High-K Metal Gate in 28-nanometer for next year?

你好。謝謝你接受我的問題。兩個問題。第一個問題是您能否就明年 28 納米的 Poly-SiON 和 High-K Metal Gate 的部分提供一些顏色？

The second question is what is the outlook in terms of segment in Q4? Thank you.

第二個問題是第四季度細分市場前景如何？謝謝你。

Your first question is with respect to the portion of the Poly/SiON and High-K Metal Gate and, yes, for this quarter our High-K Metal Gate version was much higher than Poly/SiON in terms of revenue. And for the coming quarters we believe that the High-K Metal Gate version will still dominate our 28-nanometer revenue contribution.

您的第一個問題是關於 Poly/SiON 和 High-K Metal Gate 的部分，是的，在本季度，我們的 High-K Metal Gate 版本在收入方面遠高於 Poly/SiON。在接下來的幾個季度，我們相信 High-K Metal Gate 版本仍將主導我們 28 納米的收入貢獻。

Okay. Can we say that it could be more than 60% of total 28-nanometer from High-K in the future, I mean for next year?

好的。我們可以說它在未來可能會超過 High-K 總 28 納米的 60%，我的意思是明年？

Yes, based on our current product engagement.

是的，基於我們當前的產品參與度。

Okay. Given your previous experience in 28-nanometer, is it possible we'll see some disappointment for your 28-nanometer ramp-up phase next year, or are you quite confident that you can definitely ramp-up your 28-nanometer smoothly next year versus this year?

好的。鑑於您之前在 28 納米方面的經驗，我們是否可能會對您明年的 28 納米提升階段感到失望，或者您是否有信心明年可以順利提升您的 28 納米？今年？

We feel that, we are confident that the 28-nanometer engagement and also the loading will continue to improve quarter over quarter for the 2016.

我們認為，我們有信心 28 納米的接合以及負載將在 2016 年繼續季度環比改善。

Okay. Is it possible you can give some color for 28-nanometer sales portion by end of next year, or do you think it is too early to highlight that at this moment?

好的。您是否有可能在明年年底之前為 28 納米的銷售部分提供一些顏色，或者您認為現在強調這一點還為時過早？

Based on our engagement with customers and the customers' request, we see this 28 will be a long-lasting and a strong node. So it will be our growth driver for the coming years.

根據我們與客戶的接觸和客戶的要求，我們認為這 28 將是一個持久而強大的節點。因此，它將成為我們未來幾年的增長動力。

Okay. Okay. Thank you. And the second question, the outlook by segment in Q4?

好的。好的。謝謝你。第二個問題，第四季度的細分前景？

Our Q4, yes, across the board it will decrease a little bit, however the consumer segment is flat and communication will drop a little. Computer will be the weakest one.

我們的第四季度，是的，它會全面下降一點，但是消費者細分市場持平，溝通會下降一點。電腦將是最弱的。

What is driving the consumer segment?

是什麼推動了消費者細分市場？

It's the DTV and set-top box.

它是數字電視和機頂盒。

Thank you. I have no questions. Thank you so much.

謝謝你。我沒有問題。太感謝了。

Thank you.

謝謝你。

Gokul Hariharan, JPMorgan.

Gokul Hariharan，摩根大通。

Yes, hi. Thanks for taking my questions. My first question is on utilizations. Could you give some color on Q3 and Q4 by 12-inch and 8-inch and the split in utilizations?

是的，你好。感謝您提出我的問題。我的第一個問題是關於利用率的。您能否對 12 英寸和 8 英寸的 Q3 和 Q4 以及利用率的劃分給出一些顏色？

For utilizations, yes, our Q4 for the 8-inch is at the high 80 percentage range and for the 12-inch it's high 70 percentage range.

對於利用率，是的，我們的 8 英寸 Q4 處於 80% 的高位範圍內，而 12 英寸的 Q4 處於 70% 的高位範圍內。

And in Q3 overall it was 89%. Should I assume that 8-inch was pretty much all full?

在第三季度總體上是 89%。我是否應該假設 8 英寸幾乎全滿了？

On 8-inch we just gave the number, around 95.

在 8 英寸上，我們只是給出了數字，大約 95。

Okay. Just a second question. Could you give some granularity into how you expect the Q4 to shape up? Do you expect revenue starting to drop off in October itself, or you expect that to happen towards the end of the quarter? Just some granularity in terms of what you are seeing, as well as what have you been seeing from the order trends from the customers also, maybe in the last one or two months?

好的。只是第二個問題。您能否詳細說明您對第四季度的預期如何形成？您是否預計收入會在 10 月份開始下降，還是預計會在本季度末發生？就您所看到的內容以及您從客戶的訂單趨勢（可能是在過去一兩個月內）中看到的內容而言，只是一些粒度？

Yes. There is no particular pattern in the Q4 price month over month.

是的。第四季度價格月環比沒有特別的模式。

And what is the second question?

第二個問題是什麼？

Yes. Just I think you did mention that you're seeing some stabilization in the order patterns from customers. Is that something that has been happening for the last couple of months, or is it something that is very recent? And any expectations that you have, or any forecast that you have in terms of how that is likely to shape up over the next -- over this quarter?

是的。只是我認為您確實提到您看到客戶的訂單模式有所穩定。這是過去幾個月發生的事情，還是最近才發生的事情？你有什麼期望，或者你對下一個季度可能會如何形成的任何預測？

It's kind of a mixed bag. We do see a pattern over the months, but we do see some indication of the rush order recently. Yes.

這是一個混合包。幾個月來我們確實看到了一種模式，但我們確實看到了最近緊急訂單的一些跡象。是的。

And on 28 specifically, are you seeing any improvement in order rates, or 28 is still relatively weak, because I think TSMC also commented that 28 is still probably the weakest node for them as well?

特別是在 28 號，您是否看到訂單率有任何改善，或者 28 號仍然相對較弱，因為我認為台積電也評論說 28 號仍然可能是他們最弱的節點？

We -- I just explained the -- our 28-nanometer utilization will be improved gradually. And we are targeting to come back to the first half of 2015, the utilization rate in the Q2 next year.

我們——我剛剛解釋了——我們的 28 納米利用率將逐漸提高。我們的目標是回到 2015 年上半年，即明年第二季度的利用率。

Okay. Thank you.

好的。謝謝你。

So high 80 percentage range.

如此高的80％範圍。

Okay. Thank you.

好的。謝謝你。

Eric Chen, UBS.

埃里克·陳，瑞銀。

Hello. Probably just the two quick questions. The first on the capacity expansion. Chitung, would you mind I probably lost earlier, and in terms of capacity expansion, the growth and for next year and for this year, and also between the 12-inch and the 8-inch.

你好。可能只是兩個簡單的問題。一是在產能擴張上。吉東，你介意我之前可能輸了，在產能擴張方面，增長和明年和今年，還有12英寸和8英寸之間。

Yes. This year we are talking about overall about 5% capacity growth for UMC as a whole. And for 12-inch it's around 12%. And we don't have the capacity breakdown for next year yet, but we do have at least 9,000 8-inch wafer capacity lined up ready to be installed sometime after mid of 2016. At the same time, our Xiamen fab is also under construction. And by the end of 2015 there will be also some initial production. So in terms of exact numbers, we will disclose our next quarter.

是的。今年我們談論的是UMC整體產能增長約5%。而對於 12 英寸，它約為 12%。而且我們還沒有明年的產能明細，但我們確實有至少 9,000 片 8 英寸晶圓產能在 2016 年年中之後的某個時間準備安裝。同時，我們的廈門工廠也在建設中.到 2015 年底，還將有一些初步生產。因此，就確切數字而言，我們將在下個季度披露。

Okay. And for the Xiamen fab, the capacity, the schedule, I remember you mentioned earlier is 6,000, right, by end of next year.

好的。而廈門的fab，產能，時間，我記得你剛才說的是6000，對，到明年年底。

Yes. By the end of next year between 3,000 to 6,000 wafers. So, end of 2015 we will start to see initial production.

是的。到明年年底將生產 3,000 至 6,000 片晶圓。因此，2015 年底，我們將開始看到初步生產。

Okay. And sorry, 3,000 to 6,000, right, by end of next year for Xiamen?

好的。對不起，3000 到 6000 對，廈門明年年底？

Yes. 3,000 to 6,000 by the end of 2016.

是的。到 2016 年底達到 3,000 至 6,000 人。

Okay. So like indicator on the capacity expansion in terms of growth rate next year, should we have the growth rate we have this year, right?

好的。那麼像明年產能擴張的增長率指標，我們應該有今年的增長率，對嗎？

Well again, we don't have the numbers. So this year we also had a lot of capacity in 28. Initially, we're starting from low teens and now we have 20.5, so also around 10K 28 installed in 2015. And Hejian in China also adds a lot of 8-inch wafer capacity.

再說一次，我們沒有數字。所以今年我們在 28 方面也有很多產能。最初，我們是從十幾歲開始，現在我們有 20.5，所以 2015 年安裝了大約 10K 28。中國河間也增加了很多 8 英寸晶圓容量。

Okay. So for the 8-inch capacity expansion, how many percent year-on-year growth for this year?

好的。那麼對於8英寸產能擴張，今年同比增長百分之幾呢？

You will probably have to do the math. So 5% overall for the Company. 12% -- 7% for the 12-inch, so maybe less than the average of 5. 3% also.

你可能不得不做數學。因此，公司整體為 5%。 12% - 12 英寸為 7%，因此可能低於 5. 3% 的平均值。

Okay.

好的。

But we have a big gate of 8-inch, so 3% is quite big.

但是我們有一個 8 英寸的大門，所以 3% 是相當大的。

Okay. The utilization rate for the 8-inch, I mean for the whole year always pretty high. So what's my sense for -- to -- we know the 28-nanometer process capacity is quite critical. But to some extent the 8-inch is quite a profitable business for UMC, right? How come other capacity expansion for the 8-inch relatively slow this year and how about next year, how should we look at?

好的。 8寸的利用率，我的意思是全年都挺高的。所以我的感覺是什麼——我們知道 28 納米的工藝能力非常關鍵。但從某種意義上說，8英寸對於聯電來說是一筆相當有利可圖的業務，對吧？為什麼今年8寸其他產能擴張比較慢，明年怎麼樣，應該怎麼看？

Well 8-inch has better profitability largely due to the depreciation. It has been fully depreciated. If you buy brand-new equipment to do 8-inch, it may not be as competitive as 12-inch. And besides, all the new leading-edge technology on 12-inch is still evolving and we still have a lot of customer that we can penetrate. So that's why we still spend most of our CapEx on 12-inch instead of 8-inch.

Well 8 英寸的盈利能力更好，主要是由於折舊。它已完全折舊。如果你買全新的設備做8寸，可能不如12寸有競爭力。此外，12 英寸的所有新的前沿技術仍在不斷發展，我們仍然有很多客戶可以滲透。這就是為什麼我們仍然將大部分資本支出用於 12 英寸而不是 8 英寸的原因。

I see. Very clear. And one very quick question. In terms of the ISP for the manufacturing UMC by using the 40-nanometer process, that's the sensor, right?

我懂了。非常清楚。還有一個非常快速的問題。使用40納米工藝製造UMC的ISP，那是傳感器，對嗎？

This depending on the communication, connectivity, baseband and some [amenable end appreciation] processor.

這取決於通信、連接性、基帶和一些 [amenable end learning] 處理器。

Okay. So what does ISP mean? I'm sorry, I don't get it.

好的。那麼ISP是什麼意思呢？對不起，我不明白。

Image signal processor.

圖像信號處理器。

And down supposedly, right? So that's the -- okay then. Okay, that's signal process. And the main application product is--?

據說下來，對吧？所以這就是 - 好吧。好的，這就是信號過程。而主要的應用產品是——？

For handsets.

對於手機。

Handsets. I see. Okay. Very clear. Thank you very much.

手機。我懂了。好的。非常清楚。非常感謝。

Thank you.

謝謝你。

Roland Shu, Citigroup.

花旗集團的羅蘭舒。

Hi. Thanks for taking my question. First question is for last quarter you expect in 4Q 28-nanometer contribution to be close to 3Q level. So does this still hold, or you have been change your view on that?

你好。感謝您提出我的問題。第一個問題是上個季度，您預計第四季度 28 納米的貢獻將接近第三季度的水平。那麼這仍然成立，還是您已經改變了對此的看法？

Yes. We still hold.

是的。我們仍然堅持。

So we can expect 4Q 28-nanometer revenue to be close to 3Q level, right?

所以我們可以預計第四季度 28 納米的收入將接近第三季度的水平，對吧？

Yes.

是的。

Okay. And also for 28-nanometer, you expect by second quarter next year it will be 15% to 20% of the total revenue. So after that, in second half next year, will 28-nanometer contribution still maintain the same level, or it will be further increased?

好的。而且對於 28 納米，您預計到明年第二季度它將佔總收入的 15% 到 20%。那麼在此之後，明年下半年，28納米的貢獻是保持不變，還是會進一步提升？

Our internal target is that it will be gradually increase quarter over quarter.

我們的內部目標是逐季逐步增加。

In dollar amount point of view or in the percentage point of view?

是從金額的角度還是百分比的角度？

In revenue share percent -- revenue share.

收入份額百分比——收入份額。

Revenue share. So is the percentage point of view, right?

收入份額。百分比的觀點也是如此，對嗎？

Yes.

是的。

So can we expect by end of next year, the 28-nanometer will be -- remaining contribution will be above 20%?

那麼我們能否預計到明年年底，28 納米將——剩餘貢獻將超過 20%？

For the full year, we don't guide that. Yes.

對於全年，我們不指導。是的。

Okay. But by the end of next year, since you are gradually increase from 15% to 20% in second quarter next year, so can we assume by end of next year it will be more than 20% of total?

好的。但是到明年年底，由於明年第二季度從15%逐漸增加到20%，所以我們可以假設到明年年底會超過20%嗎？

That is our target.

那是我們的目標。

Okay. Thanks. And also for 28-nanometer, actually, if you look at this year, the overall 28-nanometer revenue growth grows much more than the overall revenue growth. And that means on your -- except for 28-nanometer, the other nodes, the overall revenue actually has been declined. So is this a normal case going forward for next year since it looks we also will have very strong growth from 28-nanometer. But for the other nodes, are we going to see the overall revenue to decline or the other revenue will be continuing to grow, same as the 28-nanometer?

好的。謝謝。實際上，對於 28 納米來說，如果你看一下今年，整體 28 納米的收入增長遠高於整體收入增長。這意味著在你的 - 除了 28 納米，其他節點，整體收入實際上已經下降。那麼這是否是明年的正常情況，因為看起來我們也將從 28 納米獲得非常強勁的增長。但是對於其他節點，我們會看到整體收入下降還是其他收入將繼續增長，就像 28 納米一樣？

Yes. For this year, actually our 40-nanometer revenue, we have pretty steady and strong growth. Yes. So yes.

是的。今年，實際上我們 40 納米的收入，我們有相當穩定和強勁的增長。是的。所以是的。

Yes. I know that. But for the other non-28-nanometer, actually the overall revenue has been declined this year. Will that be the same next year?

是的。我知道。但對於其他非 28 納米來說，實際上今年整體收入有所下降。明年會一樣嗎？

Yes. Some node is -- some node will be relatively weak than 40. And we believe the -- we are actually -- we identify a number of applications, such as migrating from 8-inch to 12-inch. So we are expecting in the second half of 2016 our 12-inch mature node utilization rate will be improved.

是的。一些節點是——一些節點將相對弱於 40。我們相信——我們實際上是——我們確定了許多應用程序，例如從 8 英寸遷移到 12 英寸。所以我們預計2016年下半年我們的12英寸成熟節點利用率會有所提升。

Okay. So that means that for next year actually the growth for 40-nanometer or even 65-nanometer will be much better than this year?

好的。那麼這是否意味著明年實際上 40 納米甚至 65 納米的增長將比今年好得多？

40 is already strong. Like I see now, the mature node for 12-inch mainly 65 and 80. The CEO mentioned that by second half of next year we stabilize the position, will be able to lift the overall capacity utilization rate for those relatively more mature 12-inch nodes.

40已經很強大了。像我現在看到的，12寸的成熟節點主要是65和80。CEO提到，到明年下半年我們穩住位置，就可以提升相對成熟的12寸的整體產能利用率節點。

Okay. Okay. Understood. Thanks. Last question to ask is for the progress for your advanced packaging technology. So where are you now? And how are you going to differentiate your packaging technology versus TSMC's information? Thanks.

好的。好的。明白了。謝謝。最後要問的問題是你們先進封裝技術的進展。那麼你現在在哪裡？您將如何區分您的封裝技術與台積電的信息？謝謝。

Yes. We're still working. We still focus on promotion, which is working with our customer. And that is online to have the TSI -- you know TSV technology. And we are also collaborating with some research institutes on providing a diverse, more diverse to enhance the technology in the future. They will be active to enhance the technology. It's by adapting silicon interposer technology.

是的。我們還在工作。我們仍然專注於與客戶合作的推廣。那就是在線擁有 TSI——你知道 TSV 技術。我們還與一些研究機構合作，提供多樣化、更加多樣化的技術來增強未來的技術。他們將積極提陞技術。這是通過採用矽中介層技術。

So are we going to see any revenue contribution for these two (inaudible) or TSV technology this year?

那麼今年我們是否會看到這兩種（聽不清）或 TSV 技術的收入貢獻？

We already have some contribution from this technology.

我們已經從這項技術中獲得了一些貢獻。

Yes. We had a press release last quarter regarding AMD adapting the packaging. So it's already accounted in our revenue contribution.

是的。上個季度，我們發布了一份關於 AMD 調整包裝的新聞稿。所以它已經計入了我們的收入貢獻。

Okay. Yes. So how about the growth next year? Are these going to be significant? Say contribute about 2%, 3% or 5% of total revenue next year?

好的。是的。那麼明年的增長情況如何？這些會很重要嗎？假設明年貢獻總收入的 2%、3% 或 5% 左右？

We don't have the number right now. But it's growing with our customer for this growth.

我們現在沒有號碼。但它正在與我們的客戶一起成長，以實現這種增長。

Okay. Understood. So -- and on this, how about the probability or margins for this 2.5G or TSV packaging? Is this above corporate average or below corporate average?

好的。明白了。那麼——在這個問題上，這種 2.5G 或 TSV 封裝的概率或利潤如何？這是高於企業平均水平還是低於企業平均水平？

I think that the -- this is -- belongs to a special detailed knowledge. Normally it's adapted existing tool technology. So normally it will be -- that will enjoy a better profitability than other technologies.

我認為——這是——屬於一種特殊的詳細知識。通常它適應現有的工具技術。所以通常情況下，它將比其他技術享有更好的盈利能力。

Understood. Thank you. So going forward for this packaging technology actually will be classified as the specialty technology. So we can see the growth from your specialty technology because of these high-end advanced packaging technology. Am I right?

明白了。謝謝你。所以未來這種封裝技術實際上將被歸類為專業技術。因此，由於這些高端先進的封裝技術，我們可以看到您的專業技術的增長。我對嗎？

That's correct.

這是正確的。

Okay. Thank you.

好的。謝謝你。

Thank you.

謝謝你。

Eric Lin, CIMB.

埃里克林，聯昌國際。

Hi, Chitung. Could you give us some idea about the currency impact? If you strip off the currency fluctuation, what would be the margin outlook? What would be the margin for third quarter, gross margin-wise?

你好，奇東。你能給我們一些關於貨幣影響的想法嗎？如果剔除貨幣波動，保證金前景如何？毛利率方面，第三季度的利潤率是多少？

Well, the ForEx helped about 3.9% revenue in the third quarter. Every 1% increase in currency will help our gross margin by roughly 0.5 percentage points.

好吧，外彙在第三季度幫助了大約 3.9% 的收入。貨幣每增加 1%，我們的毛利率就會提高大約 0.5 個百分點。

Got it. Got it. Thank you. Then my second question is on the inventory level. Third-quarter inventory was up 3 days. And Po Wen mentioned that we are expecting the inventory level to come to a reasonable level in the coming one or two quarters. So what would be the reasonable level in terms of days?

知道了。知道了。謝謝你。然後我的第二個問題是關於庫存水平。第三季度庫存增加了 3 天。而寶文提到，我們預計庫存水平將在未來一兩個季度達到合理水平。那麼就天數而言，合理的水平是多少？

That would be our ballpark figures, but maybe one or two days less in the coming one and two quarters.

這將是我們的大致數字，但在接下來的一兩個季度中可能會少一兩天。

So that would be like 50 days. Would that be reasonable?

所以這將是50天。那會合理嗎？

Yes.

是的。

Okay. Thank you. Last quarter management mentioned about the progress of 40-nano. Would you update us about the progress right now? Are we still expecting the same ramp-up stage and the equipment moving schedule?

好的。謝謝你。上個季度管理層提到了 40-nano 的進展。你能告訴我們現在的進展嗎？我們是否仍然期待相同的加速階段和設備移動時間表？

Yes. We are based on our current involvement roadmap. We are still on track on cost to engaging with customer. So we are expecting the customers tape-out by the end of this year.

是的。我們基於我們當前的參與路線圖。我們仍在跟踪與客戶互動的成本。因此，我們預計客戶將在今年年底前完成流片。

So I will assume that CapEx should be spent maybe earlier next year.

所以我會假設資本支出應該在明年早些時候花費。

No. This is the early vehicle tape-out, and it's not a product tape-out.

不，這是早期的車輛流片，而不是產品流片。

I see.

我懂了。

So we are expecting the revenue contribution will likely happen on the middle 2017.

因此，我們預計收入貢獻可能會在 2017 年中期發生。

Okay. So in that case I think we have to spend some money on the equipment maybe second half next year or early next year, right?

好的。所以在那種情況下，我認為我們必須在明年下半年或明年初在設備上花一些錢，對吧？

We already have some R&D capacity there.

我們在那裡已經有了一些研發能力。

So will that ramp up, the -- will the CapEx for the 40-nanometer be an extreme factor for our next year's cash flow?

那麼，40納米的資本支出是否會增加，這是否會成為我們明年現金流的一個極端因素？

For the time being it probably won't. So, as our CEO mentioned, revenue is not expected until second half of 2017 or mid-2017. So it's unlikely to have significant amount of CapEx on 2014 in next year.

暫時應該不會吧。因此，正如我們的 CEO 所說，收入預計要到 2017 年下半年或 2017 年年中才能實現。因此，明年 2014 年的資本支出不太可能出現大量。

I see. My last question is would it be reasonable for us to assume the 28-nanometer revenue will be holding at about 10% for Q4 and for 40-nanometer will be still at 25%?

我懂了。我的最後一個問題是，我們是否可以假設第四季度 28 納米的收入將保持在 10% 左右，而 40 納米的收入仍將保持在 25% 左右？

Yes. It's about the correct numbers.

是的。這是關於正確的數字。

I see. So it will be pretty much similar with third quarter, right?

我懂了。所以它與第三季度非常相似，對吧？

Yes.

是的。

Thank you so much. That's all from me. Thank you.

太感謝了。這都是我的。謝謝你。

Steven Pelayo, HSBC.

匯豐銀行的史蒂文·佩拉約。

Yes, Chitung, some clarification first of all. I think you were saying depreciation's going to grow 15% to 20% this year. I think with only one quarter left in the quarter that -- in the year, that would imply a very significant increase in the fourth quarter. You know, double digits just to even get 15% year on year and probably much more to get 20% year on year. So is 15% to 20% still the right number or what are you thinking about for fourth-quarter depreciation?

是的，Chitung，首先澄清一下。我想你是說今年的折舊率會增長 15% 到 20%。我認為本季度只剩下一個季度 - 在一年中，這意味著第四季度的增長非常顯著。你知道，兩位數的年增長率甚至達到 15%，而年增長率可能更高，達到 20%。那麼 15% 到 20% 仍然是正確的數字嗎？或者您對第四季度的折舊有什麼看法？

15% to 20% is still the right number. Third quarter alone increased 7.3% quarter over quarter. And yes, Q4 will still some similar or higher quarter-over-quarter growth rate.

15% 到 20% 仍然是正確的數字。僅第三季度就環比增長 7.3%。是的，第四季度的環比增長率仍將相似或更高。

Okay. So then how do you issue gross margin guidance that's similar quarter on quarter if utilization rates are falling, revenues are falling and depreciation is going up? So what are the things that are helping gross margins?

好的。那麼，如果利用率下降、收入下降且折舊率上升，那麼您如何發布與季度相似的毛利率指導呢？那麼有哪些因素有助於提高毛利率呢？

Currency helped a little bit. And also we have higher utility costs in the third quarter. And most importantly, we think we have made some progress in terms of yield. We used to suffer some heavy debt to customers in terms of yield issue. But Q4 will have some meaningful improvement.

貨幣有所幫助。而且我們在第三季度的公用事業成本也更高。最重要的是，我們認為我們在產量方面取得了一些進展。在收益問題方面，我們曾經欠客戶一些沉重的債務。但第四季度會有一些有意義的改善。

Okay. Interesting. I think you said that you expected 28-nanometer utilization rates to gradually improve and targeting to come back to the high 80s range by the second quarter. What is the current utilization rate of 28-nanometer?

好的。有趣的。我想你說過你預計 28 納米的利用率會逐漸提高，併計劃在第二季度回到 80 年代的高位。目前28納米的利用率是多少？

It's about 50%.

大約是 50%。

Okay. And are you utilizing any of that 28-nanometer capacity to maybe address some of your 40-nanometer demand?

好的。您是否正在利用任何 28 納米容量來滿足您的 40 納米需求？

There is some transparent [costs]. But the best case certainly we would like to use all our 28-nanometer capacity for 28-nanometer products. So many [swap over] to 28. Yes.

有一些透明的[成本]。但最好的情況當然是我們希望將我們所有的 28 納米容量用於 28 納米產品。這麼多 [交換] 到 28。是的。

Maybe I should ask the question the other way. 40-nanometer has been so strong for you. Are you tight on capacity of 40-nanometer utilization rate?

也許我應該換個方式問這個問題。 40 納米對你來說太強大了。您對 40 納米產能利用率感到緊張嗎？

Yes. For the recent quarters, yes.

是的。最近幾個季度，是的。

Okay. And last question for me is you had pushed out your 28-nanometer ramp to reach I think 30,000 wafers now sometime mid next year. I guess you wouldn't go from 20,000 to 30,000 if you didn't feel like you have that full. Does that seem like a reasonable expectation for us right now that we can assume you're generating 20,000 wafers a month of 28-nanometer revenue by mid-next year?

好的。對我來說最後一個問題是你已經推出了你的 28 納米斜坡，我認為現在在明年年中的某個時候達到 30,000 片晶圓。我想如果你覺得你沒有那麼飽的話，你不會從 20,000 到 30,000。現在這對我們來說似乎是一個合理的期望，我們可以假設到明年年中，您每月將產生 20,000 片 28 納米晶圓的收入？

I think, Steve, that's a fair analysis. And we do expect to see, as our CEO mentioned, the 28-nanometer utilization ratio rebound for the first-half level of this year first, then gradually go up quarter over quarter. I think that's under all the assumption I believe we have for our customer engagement.

我認為，史蒂夫，這是一個公平的分析。正如我們的首席執行官所說，我們確實希望看到今年上半年的 28 納米利用率首先反彈，然後逐季逐步上升。我認為這是我相信我們對客戶參與所做的所有假設。

Okay. That's fair enough. I guess lastly I just want to mention I noticed you guys did buy back some stock. I think it was about TWD11 stock price. That's not that far different from today. Do you have any more plans to continue to acquire shares?

好的。這很公平。我想最後我只想提一下，我注意到你們確實回購了一些股票。我認為這是關於 TWD11 的股價。這與今天並沒有太大的不同。您是否還有繼續收購股票的計劃？

We do have the resources if we feel there's opportunity or there's a necessity in the market. So always we are open to that.

如果我們覺得有機會或市場有必要，我們確實有資源。所以我們總是對此持開放態度。

Okay. Fair enough. Thank you very much.

好的。很公平。非常感謝。

[Carlos], Jefferies.

[卡洛斯]，傑富瑞。

Good evening, Bowen and the Chairman. Regarding China SMIC and Hua Hong Grace is seeing a very strong order flow for 8-inch from the 2Q to 4Q, which is nearly fully utilized from the SMIC's 8-inch capacity from the second quarter to the fourth quarter, especially in the pigment IC fingerprint and MEMS segment. And partial of the older flow are currently waiting for the capacity in the SMIC's new Shenzhen fab. So does that pose any market share lose risk on the UMC's 8-inch business over the 2016, or are there any other -- the strong product to secure UMC's market share over the next year?

晚上好，鮑文和主席。關於中國中芯國際和華虹宏力，2Q至4Q的8英寸訂單流非常強勁，中芯國際第二季度至第四季度的8英寸產能幾乎全部使用，尤其是顏料IC指紋和MEMS部分。而部分老流水目前正在中芯國際深圳新廠等待產能。那麼這是否會對聯電的 8 英寸業務在 2016 年造成任何市場份額損失的風險，或者是否有任何其他強大的產品來確保聯電明年的市場份額？

So, yes, we don't comment on our competitors. And for the 8-inch, the demand, we're still working very closely with our customers to engage more the coming demand for 2016.

所以，是的，我們不對我們的競爭對手發表評論。對於 8 英寸的需求，我們仍在與客戶密切合作，以更多地參與 2016 年即將到來的需求。

Okay. Okay. Thank you.

好的。好的。謝謝你。

Thank you.

謝謝你。

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

謝謝你，先生，謝謝你的所有問題。今天的問答環節到此結束。我將把事情交給 UMC 投資者關係負責人來結束髮言。

I would like to thank everyone for being on the call today. We appreciate your questions. If you have any additional follow-up questions, please feel free to contact UMC at ir@umc.com. Operator, please wrap up the call.

我要感謝大家今天參加電話會議。我們感謝您的提問。如果您有任何其他後續問題，請隨時通過 ir@umc.com 聯繫 UMC。接線員，請結束通話。

Thank you, Bowen. And ladies and gentlemen, that concludes our conference for third quarter 2015. And 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. And you may now disconnect. Goodbye.

謝謝你，鮑文。女士們，先生們，我們 2015 年第三季度的會議到此結束。感謝您參加聯電的會議。將在一小時內進行網絡直播重播。請訪問 www.umc.com 的投資者關係/投資者活動部分。您現在可以斷開連接。再見。