聯華電子 (UMC) 2016 Q1 法說會逐字稿

Welcome, everyone, to UMC's 2016 first-quarter earnings conference call.

歡迎大家參加聯華電子 2016 年第一季度財報電話會議。

(Operator Instructions).

（操作員說明）。

For your information, this conference call is now being broadcast live over the Internet, and webcast replay will be available within an hour after the conference is finished, and please visit our website, www.umc.com, under the investor relations, investors events section.

供您參考，本次電話會議正在互聯網上進行直播，會議結束後一小時內將提供網絡重播，請訪問我們的網站www.umc.com，在投資者關係、投資者活動下部分。

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

現在，我想介紹聯電投資者關係主管黃博文先生。

And, Mr. Huang, you may begin.

黃先生，您可以開始了。

Thank you, and welcome to UMC's conference call for the first quarter of 2016.

謝謝大家，歡迎來到聯華電子 2016 年第一季度的電話會議。

I am joined by Mr. Po Wen Yen, the CEO of UMC, and Mr. Chitung Liu, the CFO of UMC.

聯電CEO Po Wen Yen 先生和UMC CFO 劉智東先生加入了我的行列。

In a moment, we will hear our CFO present the first quarter's financial results, followed by our CEO's key message to address UMC's forecast and second-quarter guidance.

稍後，我們將聽到我們的首席財務官介紹第一季度的財務業績，然後是我們的首席執行官關於聯華電子的預測和第二季度指導的關鍵信息。

Once our CEO and CFO completed their remarks, there will be a Q&A session.

一旦我們的首席執行官和首席財務官完成他們的發言，就會有一個問答環節。

UMC's quarterly financial reports are available at our website, www.umc.com, under the investors financial sections.

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.

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。

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.

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。

For these risks, please refer to UMC's filing with the SEC in the US and ROC's securities authorities.

有關這些風險，請參閱聯電向美國 SEC 和中華民國證券當局提交的文件。

I would like to now introduce UMC's CFO, Mr. Chitung Liu, to discuss UMC's first-quarter 2016 business results.

現在我想介紹聯電首席財務官劉奇東先生，談談聯電2016年第一季度的業績。

Okay, thank you, Bowen.

好的，謝謝你，鮑文。

I would like to go through the first-quarter 2016 investor conference's presentation material, which can be downloaded from our website.

我想看一下2016年第一季度投資者大會的演示材料，可以從我們的網站下載。

Starting on page 3, the first quarter of 2016 consolidated revenue was TWD34.4b with gross margin around 14.6%.

從第 3 頁開始，2016 年第一季度綜合收入為 TWD34.4b，毛利率約為 14.6%。

The net income attributable to the stockholders of the parent was TWD0.21b, and the earnings per ordinary shares were TWD0.02.

歸屬於母公司股東的淨利潤為TWD0.21b，每股普通股收益為TWD0.02。

So, loading in first quarter was 82%, slightly declined from 83% in the previous quarter, but down nearly 11 percentage points from the same quarter of 2015.

因此，第一季度的裝載率為 82%，比上一季度的 83% 略有下降，但比 2015 年同期下降了近 11 個百分點。

So on page 4, revenue grew by 1.6% quarter over quarter, but because of the disruption in operation, mainly due to the earthquake on February 6, our gross profit dropped to TWD5b, or 14.6%, in Q1 2016.

因此，在第 4 頁，收入環比增長 1.6%，但由於運營中斷，主要是由於 2 月 6 日的地震，我們的毛利潤在 2016 年第一季度下降至新台幣 5b 或 14.6%。

And the net income attributable to stockholders of the parent was around TWD210m, or 0.6%, and EPS is TWD0.02, or $0.003 per ADS.

歸屬於母公司股東的淨利潤約為 2.1 億新台幣，或 0.6%，每股收益為 0.02 新台幣，或每股 ADS 0.003 美元。

For a year-over-year comparison, due to the lower loading as well as the lower ASP, our revenue dropped 8.6% year over year, and also the earnings in gross profit dropped 44% to TWD5b, and for the EPS comparison, in the first quarter of 2015, it was TWD0.32, and in first quarter of 2015, it's TWD0.02.

與去年同期相比，由於裝載量較低以及平均售價較低，我們的收入同比下降 8.6%，毛利潤也下降 44% 至新台幣 5b，而對於每股收益比較，在2015年第一季度為TWD0.32，2015年第一季度為TWD0.02。

For our balance sheet in the first quarter, our cash has increased to TWD59.5b, and our total assets has also increased to TWD344b.

對於我們第一季度的資產負債表，我們的現金已增加到 TWD59.5b，我們的總資產也增加到 TWD344b。

For the operating segment breakdown, for wafer fabrication or our foundry business, our gross margin in the first quarter was 15%, and our operating margin for the first quarter for foundry segment was 1.5%.

對於運營部門細分，對於晶圓製造或我們的代工業務，我們第一季度的毛利率為 15%，我們第一季度的代工部門的營業利潤率為 1.5%。

And new business, although the revenue has come down to insignificant numbers, still caused some TWD200m-plus loss for our overall consolidated performance.

而新業務，雖然收入已經降到微不足道的地步，但還是給我們的整體綜合業績造成了2億多新台幣的虧損。

ASP in the first quarter declined by roughly 2%.

第一季度的平均售價下降了大約 2%。

In terms of revenue breakdown, Japan, together with Europe, has showed the weakest performance in the first quarter, and at the same time, Asian has -- revenue has bounced to 45% from 37% in the previous quarter.

在收入細分方面，日本和歐洲在第一季度的表現最差，與此同時，亞洲的收入也從上一季度的 37% 反彈至 45%。

IDM, for the similar reason, has come down to about 9%, compared to 15% in the previous quarter.

出於類似的原因，IDM 已降至約 9%，而上一季度為 15%。

We see the communication still remained the largest share of our revenue contribution.

我們認為通信仍然是我們收入貢獻的最大份額。

However, the percentage has come down to 48%, from 52% in the previous quarter, and computer has made up the large share, from 11% to 15%.

然而，這一比例已經從上一季度的 52% 下降到 48%，而計算機佔據了很大的份額，從 11% 下降到 15%。

Because of the earthquake disruption, our high-end specialty 20-nanometer production was impacted to a large degree in the first quarter, and as a result, the revenue contribution has come down -- come to lower than what we expected number of around 8% in first quarter, which is also a decline from the 11% in the fourth quarter of last year.

由於地震中斷，我們的高端特種 20 納米生產在第一季度受到很大影響，因此收入貢獻下降 - 低於我們預期的 8 左右第一季度的 %，這也比去年第四季度的 11% 有所下降。

Our 40 nanometer, because of the production site, is rather more diversified, as well as very high loading, has reached a very high number of 29% of our total revenue.

我們的40納米，由於生產場地的原因，比較多樣化，而且負載非常高，已經達到了我們總收入的29%的非常高的數字。

Capacity in the second quarter is expected to grow about 2%, mainly coming from our 12-inch wafer fab in Tainan, 12A.

預計第二季度產能將增長約 2%，主要來自我們位於台南的 12 英寸晶圓廠，12A。

And for the full year CapEx budget, so far, it still remains unchanged, around TWD2.2b, with majority for our 12-inch capacity expansion.

而對於全年的資本支出預算，到目前為止，它仍然保持不變，約為 TWD2.2b，其中大部分用於我們的 12 英寸產能擴張。

And now, I would like to turn the call to our CEO, Mr. Yen.

現在，我想將電話轉給我們的首席執行官 Yen 先生。

Thank you, Chitung.

謝謝你，赤東。

Hello, everyone.

大家好。

I would like to update to everyone UMC's first quarter operating results.

我想向大家更新聯電第一季度的經營業績。

In the first quarter of 2016, our foundry revenue grew 2.1% sequentially to TWD34.31b.

2016 年第一季度，我們的代工收入環比增長 2.1% 至 TWD34.31b。

Foundry operating margin was 0.5%.

代工營業利潤率為0.5%。

Overall capacity utilization was 82%, bringing wafer shipments to 1.43m 8-inch equivalent wafers.

整體產能利用率為 82%，晶圓出貨量達到 143 萬片 8 英寸等效晶圓。

Towards the end of 2015, we saw signs that the inventory cycle was hitting bottom.

接近 2015 年底，我們看到庫存週期觸底的跡象。

Since then, the inventory correction has completed its course, with normal seasonal patterns resuming for first half 2016.

從那時起，庫存調整已經完成，2016 年上半年恢復正常的季節性模式。

On February 6, just as Chinese New Year was beginning, southern Taiwan experienced a severe earthquake that impacted UMC's 300-millimeter Fab 12A, in Tainan Science Park.

2 月 6 日，正值農曆新年伊始，台灣南部發生強烈地震，影響台南科學園的聯電 300 毫米 Fab 12A。

However, due to UMC's stringent safety protocols, efficient execution of our earthquake recovery SOP and dedicated personnel, we returned to normal production in just a few working days to sustain 1Q 2016 revenues within our original guidance.

然而，由於聯華電子嚴格的安全協議、我們地震恢復 SOP 的高效執行和專職人員，我們在短短幾個工作日內恢復了正常生產，將 2016 年第一季度的收入維持在我們最初的指導範圍內。

In compliance with our ISO 22301 certification, UMC's business continuity practices ensure accountability on prosperity damage -- property damage, as well as the safety and health of our employees.

根據我們的 ISO 22301 認證，UMC 的業務連續性實踐確保了對繁榮損失——財產損失以及我們員工的安全和健康的責任。

We will continue to ensure a state of readiness by implementing disaster protocols that introduce business continuity elements within our foundry operations.

我們將繼續通過實施災難協議來確保准備狀態，這些協議在我們的鑄造業務中引入業務連續性元素。

UMC has recently announced an agreement with ARM to develop multiple physical IP platforms to accelerate customers' implementation of ARM Artisan IP on our 55-nanometer ultra-low-power and 40-nanometer and 28-nanometer technologies for mobile embedded and IoT chip designs.

UMC 最近宣布與 ARM 達成協議，開發多個物理 IP 平台，以加速客戶在我們的 55 納米超低功耗和 40 納米和 28 納米技術上實施 ARM Artisan IP，用於移動嵌入式和物聯網芯片設計。

The partnership will further strengthen UMC's IP portfolio to deliver optimized design support solutions across a broad range of applications.

該合作夥伴關係將進一步加強聯華電子的 IP 組合，為廣泛的應用提供優化的設計支持解決方案。

Looking into 2Q 2016, new product launches in wireless devices will serve as a positive catalyst, leading to stronger end-market demand.

展望 2016 年第二季度，無線設備新產品的推出將成為積極的催化劑，導致終端市場需求強勁。

As a result, we foresee a significant increase in 28-nanometer shipments for the second quarter.

因此，我們預計第二季度 28 納米的出貨量將大幅增加。

We also expect to receive many new 28-nanometer tapeouts during 2016 that include mobile and consumer applications, which will further diversify our 28-nanometer product pipeline and contribute to 28-nanometer revenue growth.

我們還預計 2016 年將收到許多新的 28 納米流片，包括移動和消費應用，這將進一步豐富我們的 28 納米產品線並促進 28 納米收入增長。

While we continue to work towards business growth and market share expansion, the Board of Directors recently proposed to distribute a TWD0.55 per share cash dividend to achieve a balance between shareholders' interests and Company expansion.

在我們繼續努力實現業務增長和市場份額擴張的同時，董事會最近提議派發每股 0.55 新台幣的現金股息，以實現股東利益和公司擴張之間的平衡。

We continue to believe that our efforts in advanced and specialty processes will serve as a long-term catalyst to bring new prosperity and profitability for UMC employees, customers and shareholders.

我們仍然相信，我們在先進和專業工藝方面的努力將成為長期催化劑，為聯電員工、客戶和股東帶來新的繁榮和盈利能力。

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 finished my remarks, and now let me go over the second-quarter 2016 guidance.

我結束了我的發言，現在讓我回顧一下 2016 年第二季度的指導。

Our wafer shipment in the second quarter to show an increase of approximately 5%.

我們的晶圓出貨量在第二季度呈現約 5% 的增長。

The ASP in NT dollars to increase by 1% to 2% UMC gross profit margin will be in the low 20-percentage range.

以新台幣計算的平均售價將增加 1% 至 2% 聯電毛利率將在 20% 的低位範圍內。

Capacity utilization rate will be in the high 80-percentage range.

產能利用率將在80%的高位區間。

Foundry CapEx for 2016 remained as $2.2b.

2016 年的鑄造資本支出保持在 $2.2b。

That concludes my comments.

我的評論到此結束。

We are now ready for questions.

我們現在準備好提問了。

Operator, please open the lines up.

接線員，請打開線路。

Thanks.

謝謝。

(Operator Instructions).

（操作員說明）。

Randy Abrams, Credit Suisse.

蘭迪艾布拉姆斯，瑞士信貸。

Okay, yes, thank you.

好的，是的，謝謝。

I wanted to ask for this quarter -- or first quarter, since there were some pretty big mix changes, if you could talk a bit more about that.

我想問一下這個季度——或者第一季度，因為有一些相當大的組合變化，如果你能多談談的話。

And in that context, geography, Europe and Japan and IDMs have a sharp decline, and end markets look like a shift, PC ramping and communications coming back.

在這種情況下，地理、歐洲和日本以及 IDM 急劇下降，終端市場看起來像一個轉變，PC 增長和通信正在回歸。

So if you could give a little more on what happened on the product mix, and then for second quarter, if you expect normalization, what areas you expect to rebound in second quarter.

因此，如果您可以就產品組合發生的情況提供更多信息，然後對於第二季度，如果您預計正常化，您預計第二季度會在哪些領域反彈。

I'll start.

我會開始的。

As our CFO, Chitung, just explained, the first quarter, by application, the communication segment is the weakest one, and so that's why we declined in the revenue share from 52% to 49% this quarter -- the first quarter.

正如我們的首席財務官 Chitung 剛剛解釋的那樣，第一季度，按應用程序，通信部門是最弱的，這就是為什麼我們在本季度（第一季度）的收入份額從 52% 下降到 49% 的原因。

And computer is a little bit better, and consumer is flat in the first quarter.

而電腦稍微好一點，第一季度消費者持平。

And for the second quarter, we expect our competition will bounce back, to become a strongest one.

而對於第二季度，我們預計我們的競爭將會反彈，成為最強大的競爭者。

Okay, can you elaborate that Europe and Japan and IDMs, it looked like a pretty sharp falloff, if that's a one-quarter correction or product change or anything that may be more meaningful there?

好的，您能否詳細說明歐洲和日本以及 IDM，如果這是四分之一的修正或產品變化或任何可能更有意義的事情，它看起來像一個非常急劇的下降？

Yes, the -- yes.

是的——是的。

The first quarter, the demand from communication, especially from Japan and Europe, is in the bottom and is quite weak.

一季度，通信需求，尤其是日本和歐洲的需求處於底部，相當疲軟。

However, we do see it getting better for the coming quarters.

但是，我們確實看到未來幾個季度它會變得更好。

Okay, and then for the second question, wanted to ask on the 28, if you could go back to you original target was a good rebound to 15% to 20% of sales and getting pretty full with the 20,000 capacity, if you could give an update.

好的，然後對於第二個問題，想在 28 日問，如果你能回到原來的目標，那就是一個很好的反彈到 15% 到 20% 的銷售額，並且在 20,000 容量的情況下變得相當滿，如果你能給更新。

And then following on that, with these new tapeouts for second half, where you'll expand from 29,000 to 30,000, if you'll have that capacity available and you expect also to grow further in second half into that capacity.

然後在此之後，隨著下半年的這些新流片，您將從 29,000 擴展到 30,000，如果您有可用的容量，並且您希望在下半年進一步增長到該容量。

Yes, looking beyond the February 6 earthquake impact, our 28-nanometer ramp is still on track, so our 28-nanometer production is approaching to world-class [dividending].

是的，除了 2 月 6 日的地震影響之外，我們的 28 納米坡道仍在按計劃進行，因此我們的 28 納米產量正在接近世界級 [紅利]。

The yields of the these products for both 28 poly/SiON and 28 High-k/metal gate versions are at 90 percentage range.

這些產品的 28 多晶矽/SiON 和 28 高 k/金屬柵極版本的產量都在 90% 範圍內。

Furthermore, we believe we are delivering the highest performance and lowest power consumption of 28-nanometer technology in the world.

此外，我們相信我們正在提供世界上最高性能和最低功耗的 28 納米技術。

So we expect [ready] growth customers (technical difficulty) throughout this year.

因此，我們預計今年全年[準備好]增長客戶（技術難度）。

Okay.

好的。

Our capacity expansion will support our 28-nanometer revenue contribution to be getting higher quarter by quarter over quarter.

我們的產能擴張將支持我們的 28 納米收入貢獻逐季提高。

So we expect to -- that this quarter, second quarter, will reach 15 to 18 percentage range, and 3Q will be close to 20 or even better to 20 percentage revenue share.

所以我們預計——本季度，第二季度，將達到 15% 到 18% 的範圍，第三季度將接近 20% 甚至更好，達到 20% 的收入份額。

Okay, and final question, I wanted to ask on two expansions.

好的，最後一個問題，我想問兩個擴展。

One, if you could give an update on the China pilot line, when that capacity would start to ramp.

第一，如果您能提供有關中國試點線的最新信息，那麼該產能何時開始增加。

And there were some press stories on potential venture in memory, moving it to NAND flash.

還有一些關於內存潛在風險的新聞報導，將其轉移到 NAND 閃存。

If you could provide color, if that's a strategic interest or area you're pursuing.

如果你可以提供顏色，如果這是你追求的戰略利益或領域。

For our Xiamen fab, it's ongoing, and it's actually pretty well, and we do expect the equipment moving to happen right now, and the wafer pilot line, as you mentioned, should be in the third quarter, with volume production in the fourth quarter.

對於我們廈門的晶圓廠來說，它正在進行中，實際上非常好，我們確實預計設備現在就會開始移動，正如你所說的，晶圓中試線應該在第三季度，第四季度量產.

Volume-wise should be around our original projection, which is around 6,000 at the end of 2015.

數量方面應該在我們最初的預測附近，在 2015 年底約為 6,000。

So Xiamen fab is on track.

所以廈門工廠走上了正軌。

And as for the newspaper report, first of all, we have already declined at UMC, relocating to any memory fab production in China, so we don't have any plans for now, at least, to -- of getting to memory fab (technical difficulty).

至於報紙的報導，首先，我們已經拒絕在聯電，搬遷到中國的任何內存工廠生產，所以我們目前沒有任何計劃，至少，到 - 進入內存工廠（技術難度）。

However, having said that, we've been approached by various parties in China to [build] semiconductor-related projects, including memory, as well.

然而，話雖如此，中國各方已與我們接洽，以[建立]與半導體相關的項目，包括內存等。

So whenever there is a concrete plan, we will certainly disclose and make it (technical difficulty).

所以只要有具體的方案，我們一定會公開並做出來（技術難度）。

Okay, and to clarify that, you would consider logic, but not likely to look at the memory as an option.

好的，為了澄清這一點，您會考慮邏輯，但不太可能將內存視為一種選擇。

Well, first of all, Xiamen is a pure foundry, so it's totally separate.

嗯，首先廈門是純代工廠，所以是完全獨立的。

Other than Xiamen project, we've been approached by third parties, which include memory suppliers, as well.

除了廈門項目，我們還接觸過第三方，包括內存供應商。

For the time being, UMC has no plans to get into memory production (technical difficulty).

聯電暫時沒有進軍內存生產的打算（技術難度）。

And if there's any other plan, we will disclose accordingly when it's (technical difficulty).

如果有其他計劃，我們會在（技術難度）時進行相應披露。

Okay.

好的。

Thank you, Chitung.

謝謝你，赤東。

Bill Liu, UBS.

比爾·劉，瑞銀。

Yes, hi.

是的，你好。

It's good to see that 28 is finally ramping, so congratulations but a couple of questions on that.

很高興看到 28 終於開始了，所以恭喜你，但有幾個問題。

If demand on 28 remains healthy into the second half of the year, is there a scenario where you expect capacity beyond (technical difficulty) or that's basically the maximum?

如果 28 的需求在下半年保持健康，是否存在您預計產能超過（技術難度）或基本上是最大值的情況？

Yes, we expect to complete the 30,000 expansion plan by the end of this year, and of course, we -- based on our customer engagement, it is possible for UMC to build additional 10,000 to 20,000 wafer per month capacity in the coming years.

是的，我們預計在今年年底前完成 30,000 片的擴建計劃，當然，根據我們的客戶參與度，聯華電子有可能在未來幾年內每月增加 10,000 至 20,000 片晶圓的產能。

In the coming years, but probably not this year.

未來幾年，但今年可能不會。

Is that what you mean?

你是這個意思嗎？

It's normally the capacity deployment will take one year.

容量部署通常需要一年時間。

I see.

我懂了。

Okay.

好的。

Secondly, can you comment on the profitability of 28 nanometers?

其次，能否評價一下28納米的盈利能力？

What is the breakeven utilization and where can profitability get to, say, by the end of the year?

盈虧平衡利用率是多少？比如，到今年年底，盈利能力如何？

Yes, the -- we expect our 28-nanometer profitability will gradually increase quarter over quarter, and we will try [demand loading] by expanding our 28-nanometer capacity plus those yield-enhancement activities, so that will continue to help UMC improve our 28-nanometer profitability.

是的，我們預計我們的 28 納米盈利能力將逐季逐漸增加，我們將通過擴大 28 納米產能以及那些提高產量的活動來嘗試 [需求負載]，這樣將繼續幫助聯電改善我們的28 納米的盈利能力。

So in the 4Q 2016, we expect our 28-nanometer profitability will be much closer to 12-inch corporate average.

因此，在 2016 年第四季度，我們預計 28 納米的盈利能力將更接近 12 英寸的企業平均水平。

Okay, but your 12-inch corporate average is a little bit lower than your 8-inch corporate average, right?

好的，但是您的 12 英寸企業平均水平比 8 英寸企業平均水平低一點，對吧？

Yes, a few percentage points lower.

是的，低了幾個百分點。

Got it, got it.

明白了，明白了。

That brings me to my next question, which is if you look at second-quarter guidance, if 28 grows from, say, 8% of sales to 18%, and your overall shipment is up 5%, that implies that the rest of the businesses are down, right?

這讓我想到了我的下一個問題，如果你看一下第二季度的指導，如果 28 從銷售額的 8% 增長到 18%，並且你的整體出貨量增長 5%，這意味著其餘的企業倒閉了，對吧？

So is it fair to assume that maybe 8-inch is staying in a little bit weaker for right now, and what's your outlook for the rest of the year?

那麼假設 8 英寸現在可能會保持弱一點是否公平，你對今年剩餘時間的展望是什麼？

Yes, our 8-inch -- yes, in the second quarter is relatively weaker than the previous quarters.

是的，我們的 8 英寸——是的，第二季度的表現比前幾個季度要弱。

I'm just wondering if you can give me some insights as to what your 8-inch customers might be telling you, because I guess form my vantage point, driver IC, some of it's moving to 12-inch, and I think the overall demand doesn't look that great this year anyways.

我只是想知道您能否就您的 8 英寸客戶可能會告訴您的內容給我一些見解，因為我想從我的角度來看，驅動 IC，其中一些正在轉向 12 英寸，我認為整體無論如何，今年的需求看起來並不那麼好。

Is there a -- do you think 8-inch can pick up in the second half of the year, and if so, can you tell me why?

有沒有——你覺得8寸能在下半年回升嗎，如果有，能告訴我為什麼嗎？

Yes.

是的。

I would say that the demand in the first quarter and the second quarter is a little bit weaker for the whole industry, including 8-inch business.

我會說一季度和二季度的需求對於整個行業來說都比較弱，包括8英寸的業務。

But, however, UMC's 8-inch foundry business, it has been quite steady.

不過，聯電的8英寸代工業務，卻一直相當穩健。

And so the -- our 2Q, second quarter 8-inch loading will be in the mid 80% range.

所以——我們的第二季度，第二季度的 8 英寸負載將在 80% 的中間範圍內。

And we believe through our -- all those efforts to improve the loading rate, within the second half of this year the 8-inch loading will be improved.

我們相信，通過我們所有這些提高裝載率的努力，在今年下半年內，8 英寸的裝載率將會得到改善。

I guess if I could ask it a different way, if 8-inch loading is to go up in the second half of the year, what kind of applications do you think will drive that?

我想如果我換個方式問的話，如果下半年8英寸的負載要上去，你認為什麼樣的應用會推動它？

There are several, including the driver and some, yes, specialty technology in the smart car and --

有幾個，包括司機和一些，是的，智能汽車中的專業技術，還有——

Okay, great.

好，太棒了。

Thank you very much.

非常感謝。

Thank you.

謝謝你。

Szeho Ng, BNP.

Szeho Ng，法國巴黎銀行。

Hi, good evening, gentlemen.

嗨，晚上好，先生們。

Could you quantify the earthquake impact in Q1, at a cost of goods sold level?

您能否以商品銷售成本水平量化第一季度的地震影響？

Yes.

是的。

Yes, we -- as you all might have expected, UMC worked very closely with our customers to minimize the impact of the earthquake, February 6, in Tainan.

是的，我們——正如大家所預料的那樣，聯電與我們的客戶密切合作，以盡量減少 2 月 6 日台南地震的影響。

So first of all, we had no reported (inaudible) issue or personnel injuries.

因此，首先，我們沒有報告（聽不清）問題或人員受傷。

So, yes.

所以，是的。

So of course, our Tainan fab suffered a damage from earthquake, that including our process wafers, (inaudible) and facilities.

因此，當然，我們的台南工廠遭受了地震的破壞，包括我們的工藝晶圓、（聽不清）和設施。

However we received an interim settlement related to the earthquake in the first quarter.

然而，我們在第一季度收到了與地震有關的臨時和解。

And we expect to receive the remaining settlements in 2016, this year.

我們預計將在今年 2016 年收到剩餘的和解。

So if we include the remaining settlements into the first-quarter 2016 results, the pro forma gross margin still in line with our original guidance.

因此，如果我們將剩餘的結算納入 2016 年第一季度的業績，預計毛利率仍符合我們最初的指導。

All right.

好的。

And some customers requested to receive early April shipment in late March.

一些客戶要求在 3 月下旬收到 4 月初的貨物。

So, as a result, our first-quarter revenue is in line with our original ASP and shipment guidance.

因此，我們第一季度的收入與我們最初的 ASP 和出貨量指導一致。

So Szeho, just to add on that, so revenue-wise, probably because of the early shipment from April to late March, very minimal impact on the revenue side.

所以 Szeho，只是補充一點，所以收入方面，可能是因為從 4 月到 3 月下旬提前發貨，對收入方面的影響非常小。

From gross margin, as our CEO has mentioned, we received roughly 2% of gross margin for the early interim settlement from insurance company.

正如我們的首席執行官所提到的，從毛利率來看，我們從保險公司獲得了大約 2% 的早期中期結算毛利率。

And we expect to receive another maybe roughly 3% throughout the rest of the year.

我們預計在今年剩下的時間裡還會再收到大約 3% 的收益。

So if you add back the 3 percentage point to our gross margin, in the first quarter it would go back to around 18% in foundry gross margin.

因此，如果您將 3 個百分點的毛利率加回我們的毛利率，則在第一季度，代工毛利率將回到 18% 左右。

Okay, got you.

好的，明白了。

All right.

好的。

And, yes.

是的。

And then what's the FX you are using for the Q2 guidance and also for the Q1 historical number.

然後，您用於 Q2 指導以及 Q1 歷史數據的 FX 是什麼。

Q1 it was average around NTD33.3.

Q1 平均約為 NTD33.3。

For the time being we're using NTD32.7 for quarter two.

目前我們在第二季度使用 NTD32.7。

Okay, all right.

好吧，好吧。

Okay, thank you very much.

好的，非常感謝。

Steven Pelayo, HSBC.

匯豐銀行的史蒂文·佩拉約。

Yes, you were talking about your cash balance going up quarter on quarter, but that was actually not a function of -- I guess operating cash flow was down and CapEx was up.

是的，你說的是你的現金餘額環比上升，但這實際上不是一個函數——我猜經營現金流下降了，資本支出上升了。

So could you talk a little bit about the increase in the cash, the sources for that?

那麼，您能否談談現金的增加及其來源？

Did you [commit] a deposit from the joint venture, or was this settlement, insurance payments, just help me understand that.

你[承諾]從合資企業中支付了一筆押金，還是這筆和解，保險金，只是幫助我理解這一點。

And then maybe if you could talk just a little bit about free cash flow growth for 2016.

然後也許你能談談 2016 年的自由現金流增長。

Yes.

是的。

The cash increase from cash flow statement is mainly coming from the capital injection from our partner in our Xiamen fab which, as a result, increased our liabilities, because we do have buyback options on those investments.

現金流量表的現金增加主要來自我們廈門工廠的合作夥伴注資，這增加了我們的負債，因為我們確實有這些投資的回購選擇權。

So the liability increased and as well as the share -- cash positions also increased.

因此，負債增加了，股份也增加了——現金頭寸也增加了。

So it's a virtual cash coming from our investors for the Xiamen JV.

所以這是我們投資者為廈門合資企業提供的虛擬現金。

Okay.

好的。

Do you expect any more injections throughout 2016?

您預計整個 2016 年會有更多的注射嗎？

And what do you think about free cash flow goals for this year in 2016?

您如何看待 2016 年今年的自由現金流目標？

I think this part is more accounting issues.

我認為這部分是更多的會計問題。

And we do expect this part will continue in second quarter.

我們確實預計這部分將在第二季度繼續。

But UMC will start to inject our own capital into Xiamen fab next year.

但聯電明年將開始向廈門晶圓廠注入自有資金。

So we probably will see that in the second quarter only.

所以我們可能只會在第二季度看到這一點。

And for the cash flow forecast, this year, as I mentioned, we have about $2.2b forecast as our CapEx for the whole Group, including Xiamen JV.

至於現金流預測，正如我所提到的，今年我們對包括廈門合資企業在內的整個集團的資本支出的預測約為 2.2 美元。

And for our depreciation alone we expect to see about 20% increase or around NTD50b plus.

僅就我們的折舊而言，我們預計會增加約 20% 或約新台幣 50 元以上。

So for the time being we are about to have equilibrium.

所以目前我們即將達到平衡。

If you add our free cash from depreciation plus earnings, versus our dividend and UMC part of the CapEx, it's about equal.

如果您將我們的折舊和收益中的自由現金與我們的股息和資本支出中的 UMC 部分相加，它大致相等。

And that's the current plan.

這就是目前的計劃。

Okay.

好的。

That's all.

就這樣。

I wanted to verify that, did you think we could net those out and be flat on the cash flow.

我想驗證一下，您是否認為我們可以將這些扣除並保持現金流不變。

Thank you.

謝謝你。

Thanks.

謝謝。

Sebastian Hou, CLSA.

塞巴斯蒂安侯，里昂證券。

Thank you for taking my questions.

謝謝你接受我的問題。

The first one is regarding 28 nanometer.

第一個是關於 28 納米的。

Earlier in CEO prepared remark you mentioned about you expect to receive more tapeout throughout this year.

早些時候在 CEO 準備的評論中，您提到您希望在今年全年收到更多的流片。

So I just wonder when your revenue -- you start to -- more products, more products and customers are in mass production in 28 nanometers.

所以我只是想知道你的收入——你什麼時候開始——更多的產品、更多的產品和客戶在 28 納米大規模生產。

And utilization rates go up.

並且利用率上升。

And you mentioned about your yield rate right now for both high-K and poly SiON as 90% yield rates.

你提到了你現在對於高 K 和多晶矽的良率都是 90% 的良率。

So I just wonder how do you see the stability of the yield rate of the 28?

所以我只是想知道您如何看待28的良率穩定性？

So maybe for one or two products it could be at 90%, but I just wonder, if there is a 15, or 20, or more than 20 products in production, can your yield rate still sustain that 90%, that high yield level?

所以也許對於一兩個產品，它可能是 90%，但我只是想知道，如果有 15 個、20 個或 20 多個產品在生產中，你的良率還能維持那個 90%，那個高良率水平?

Thank you.

謝謝你。

Thank you for your question.

謝謝你的問題。

Of course the -- what I mentioned just now is for our lead products.

當然，我剛才提到的是我們的主要產品。

And for the new tapeout, it will take a while for the yield learning starting from say 15% gap to the 90%.

對於新的流片，從 15% 的差距到 90% 的良率學習需要一段時間。

And it will take a couple of months to get there, our target DD.

我們的目標 DD 需要幾個月的時間才能到達那裡。

So it's -- so not -- I'm not saying that all our products of 28 nanometer is at 90%.

所以它 - 所以不是 - 我並不是說我們所有的 28 納米產品都達到了 90%。

Okay.

好的。

So -- okay, thank you.

所以——好的，謝謝。

So, well, then to follow on that is that because, right now, maybe you have fewer products in production so far, and maybe there have some products that have a higher yield.

所以，好吧，接下來是因為，現在，到目前為止，你生產的產品可能較少，也許有些產品的產量更高。

But when you have more tapeouts, and maybe more new products which just have a lower -- would that lower the -- the question I want to ask is would that lower your blended yield rate on the 28 nanometer, so that would have a negative impact on your overall margin.

但是當你有更多的流片，也許還有更多的新產品，它們只是更低——這會降低——我想問的問題是，這會降低你在 28 納米上的混合良率，所以會產生負面影響對您的整體利潤率的影響。

I don't see that because the -- for those lead products the yield learning experience will be incremental to -- for the upcoming products.

我不認為這是因為——對於那些領先產品，產量學習經驗將逐漸增加——對於即將推出的產品。

So it will shorten the yield learning rate for the future tapeouts.

因此，它將縮短未來流片的良率學習率。

So we see the DD it's getting improved (multiple speakers).

因此，我們看到 DD 得到了改進（多個揚聲器）。

Okay.

好的。

Thank you.

謝謝你。

My second question is on the -- because earlier I -- I'm not sure, I just want to double check the numbers.

我的第二個問題是關於 - 因為我之前 - 我不確定，我只是想仔細檢查一下數字。

You mentioned about the 8-inch wafer utilization rate in second quarter will be mid 80%.

您提到第二季度8英寸晶圓的利用率將在80%左右。

And okay, so how about the 12-inch in second quarter?

好吧，那麼第二季度的 12 英寸怎麼樣？

12-inch the average is at 90 percentage point.

12英寸的平均值是90個百分點。

90%.

90%。

Yes.

是的。

Okay.

好的。

And the last question is on the industry outlook.

最後一個問題是關於行業前景的。

I recall that in the January conference call, CEO gave the guidance or the outlook for the overall industry.

我記得在 1 月份的電話會議中，CEO 給出了對整個行業的指導或展望。

So can you -- do you have any update numbers on the semi or foundry and UMC growth in this year?

那麼你能 - 你有任何關於今年半導體或代工和聯華電子增長的最新數據嗎？

Yes.

是的。

We don't have that for this year.

今年我們沒有這個。

We still keep our guidance on the first quarter I guess, yes.

我猜我們仍然保持對第一季度的指導，是的。

So semi is still 2%, foundry is 4%?

所以semi還是2%，Foundry是4%？

Yes.

是的。

Our number is the semi will be 1% to 2% growth and foundry will be 4% to 5% growth.

我們的數字是半導體將增長 1% 到 2%，代工將增長 4% 到 5%。

Okay.

好的。

Thank you, that's all from me.

謝謝，這都是我的。

Roland Shu, Citigroup.

花旗集團的羅蘭舒。

Hi, good evening.

嗨，晚上好。

Thanks for taking my question.

感謝您提出我的問題。

First question is I just try to clarify the exchange rate you used in first quarter.

第一個問題是我只是想澄清你在第一季度使用的匯率。

So, Chitung, you said it was NTD33.13 or --

所以，Chitung，你說是 NTD33.13 或者——

NTD33.3.

新台幣33.3。

NTD33.3, but I just see from your presentation material on page 4, page 5, actually you used NTD32.22.

NTD33.3，但我只是從你第4頁第5頁的演示材料中看到，實際上你使用的是NTD32.22。

Yes that's the year-end -- quarter-end conversion rate.

是的，這就是年終——季末的轉化率。

So the NTD33.3 is the weighted average number we calculate the revenue, profit, etc.

所以 NTD33.3 是我們計算收入、利潤等的加權平均數。

So quarter end, in terms of converting NT dollars to US dollars, we're using the quarter-end exchange rate.

所以季末，把新台幣換成美元，我們用的是季末匯率。

Okay.

好的。

So the NTD32.7 exchange rate we use for second quarter, that is also for the average, right?

所以我們第二季度使用的新台幣32.7匯率，也是平均的，對吧？

Weighted average, yes, --

加權平均，是的，——

Okay, yes.

好的，是的。

-- forecast for now.

——現在預測。

And just a look at your guidance for second quarter for the blended ASP, you said it will increase by 1% to 2% NT-dollar based.

看看你對第二季度混合平均售價的指導，你說它將以新台幣為基礎增加 1% 到 2%。

So for this one, (inaudible) for the exchange rate, that will probably appreciate about 3% to 4% and with this 1% to 2% ASP increase.

因此，對於這個（聽不清）匯率，可能會升值 3% 到 4%，而 ASP 會增加 1% 到 2%。

So the total I think the US-dollar based is probably, the ASP is increased about 5% to 6%.

所以我認為以美元計算的總價格大概是，ASP 增加了大約 5% 到 6%。

So, however, if you look at your 28 nanometer, I think revenue is going to up 8%, to more than 15%, probably 18%.

所以，然而，如果你看看你的 28 納米，我認為收入將增長 8%，超過 15%，可能是 18%。

So for that one (spoken in Chinese) was this -- is this blended ASP increase mainly because of the product mix change on the 28 nanometer, or you have other like-to-like price erosion which help to decrease a little bit for the blended ASP increase from 28 nanometer, right.

所以對於那個（用中文說）是這樣的——這種混合的 ASP 增加主要是因為 28 納米的產品組合變化，還是你有其他類似的價格侵蝕，這有助於減少一點混合 ASP 從 28 納米增加，對。

It's mostly coming from 28 nanometer product mix increase.

它主要來自 28 納米產品組合的增加。

But if you divide NTD32.7 by NTD33.3, it's actually 2%.

但如果用NTD32.7除以NTD33.3，其實是2%。

So it's not 3% or 4%.

所以不是3%或4%。

So it's 2%; add 1% to 2%, should be 3% to 4% US dollars.

所以是2%；加1%到2%，應該是3%到4%美元。

Yes, but I think that for 28 nanometer actually it increased much more than this, yes.

是的，但我認為對於 28 納米，實際上它的增長遠不止於此，是的。

So I think is there any like-to-like price erosion to average down the overall blended ASP increase?

所以我認為是否有任何類似的價格侵蝕來平均降低整體混合平均售價的增長？

How about the pricing pressure for other node?

其他節點的定價壓力如何？

Not so much.

沒那麼多。

As you can tell our 28 is nearly over 90% loadings in quarter, two so not much pricing pressures for the second quarter.

正如您所知道的，我們的 28 個在本季度幾乎超過 90% 的負載，因此第二季度的兩個定價壓力並不大。

Our 8-inch is in the catching-up mode.

我們的 8 英寸處於追趕模式。

And we also expect to see pretty high loading in the second half of this year.

我們還希望在今年下半年看到相當高的負載。

So, for the time being, we don't see much pricing pressures for any major node.

因此，就目前而言，我們沒有看到任何主要節點的定價壓力很大。

Okay, thank you.

好的謝謝你。

And second question is on your -- according to your 2015 20-F, customers in Taiwan and China revenue contribution decreased by a total about 5 percentage point.

第二個問題是關於你的——根據你的 2015 年 20-F，台灣和中國大陸的客戶收入貢獻總共下降了約 5 個百分點。

So was it due to foundry competition in China, or there was other reasons for the change?

那麼是因為中國代工競爭，還是有其他原因造成的變化？

Yes, how do you think about 2016 on the customer contribution from Taiwan and China, will it continue decreasing or will it be increased this year?

是的，您如何看待2016年來自台灣和中國大陸的客戶貢獻，今年會繼續減少還是會增加？

Thank you.

謝謝你。

China, for the time being, only accounts for about 8% of our total revenue.

中國暫時只占我們總收入的8%左右。

Yes, but for Taiwan -- yes, it's at 31%, 32% --

是的，但是對於台灣——是的，是 31%、32%——

The decline will be mainly coming from Taiwan.

下降主要來自台灣。

China is still growing.

中國仍在增長。

Okay.

好的。

So this is the case in this year, right?

所以今年的情況就是這樣，對吧？

So you said for Taiwan customer will be continue declining and China will be increased?

所以你說台灣客戶會繼續下降，中國會增加？

We are sure that China will grow but we are not so sure that Taiwan will decline.

我們確信中國會增長，但我們不確定台灣會衰落。

And for longer time span, it's also become integrating for Taiwan and China.

而在更長的時間跨度裡，它也成為台灣和中國的整合。

So it will be difficult to differentiate this, but we will certainly sure our revenue for China will continue to grow, especially after the Xiamen fab starts production.

因此很難區分這一點，但我們肯定會確保我們在中國的收入將繼續增長，尤其是在廈門工廠開始生產之後。

Okay.

好的。

So how about the competition?

那麼比賽情況如何？

Do you see any competition or strong competition from China or from Taiwan?

您是否看到來自中國大陸或台灣的任何競爭或激烈競爭？

Yes.

是的。

It depends on the technology by technology, application by application.

它取決於技術接技術，應用接應用。

So, yes, in the ballpark competition is everywhere.

所以，是的，在球場上的競爭無處不在。

It's all the time and --

一直都是——

Okay, understood.

好的，明白了。

Yes.

是的。

Also you said on your 20-F, your top 10 customers last year total account for 57.3% of the total revenue.

您還在 20 樓表示，去年您的前 10 名客戶總計佔總收入的 57.3%。

So is there any customer or any customers with more than 10% revenue contribution last year?

那麼去年是否有任何客戶或任何客戶的收入貢獻超過 10%？

Yes.

是的。

There are one to two customers more than 10% revenue contribution of UMC total.

有一到兩個客戶對聯電總收入的貢獻超過 10%。

And how about this year, are you going to add more customers on your -- to have more than 10% revenue contribution to this year?

那麼今年，您是否會在您的網站上增加更多的客戶——為今年帶來超過 10% 的收入貢獻？

It's still about the same, still about the same.

還是一樣的，還是一樣的。

One to two customer, from the same customer or it will be changed?

一到兩個客戶，來自同一個客戶還是會改變？

So far we see the same customers, yes.

到目前為止，我們看到相同的客戶，是的。

Okay, understood.

好的，明白了。

Okay, thank you.

好的謝謝你。

That's all my questions.

這就是我所有的問題。

Thank you.

謝謝你。

Thank you.

謝謝你。

Rick Hsu, Daiwa Securities.

Rick Hsu，大和證券。

Yes, hi.

是的，你好。

Good afternoon.

下午好。

Okay, my first question, I think I probably missed the number here, Chitung, could you give me again your first quarter foundry gross margin.

好的，我的第一個問題，我想我可能錯過了這裡的數字，Chitung，你能再給我一次你的第一季度代工毛利率。

Gross margin foundry is 15%.

代工毛利率為 15%。

And OP margin, operating margin was 0.5%.

而OP利潤率、營業利潤率為0.5%。

So 15% versus 0.5%.

所以 15% 對 0.5%。

Okay 15%, so that's for gross margin and OPM is about 0.5%, right?

好的 15%，這是毛利率，OPM 大約是 0.5%，對吧？

Yes.

是的。

Okay.

好的。

Thank you so much.

太感謝了。

And my second question is regarding your 8-inch business.

我的第二個問題是關於您的 8 英寸業務。

Do you see any risk of market-share loss to your counterparts in China, especially for display driver?

您是否認為中國同行有任何市場份額損失的風險，尤其是顯示驅動器？

And would that be a structural issue, or is it just the seasonal?

這會是一個結構性問題，還是只是季節性問題？

Yes.

是的。

Our 8-inch business has a very wide, diversified base.

我們的 8 英寸業務擁有非常廣泛、多元化的基礎。

So I would say this is short-term, the market dynamics.

所以我會說這是短期的市場動態。

My feeling is not a structural losing the market share.

我的感覺不是結構性失去市場份額。

So we are still doing our efforts to improve our market -- our loading 8-inch, through our specialty technology offering or our -- strengthen our customer engagement in this 8-inch business.

因此，我們仍在努力改善我們的市場——通過我們的專業技術產品或我們的加載 8 英寸——加強我們的客戶在這個 8 英寸業務中的參與。

Okay, thank you.

好的謝謝你。

Maybe one addition to this question is, I mention you talk about your development and business ramp up from the automobile and automotive business, right, industrial applications especially for the smart automobile.

也許這個問題的一個補充是，我提到你談論你從汽車和汽車業務，對，工業應用，特別是智能汽車的發展和業務增長。

Can you give us more update about that?

你能給我們更多的更新嗎？

Would be that one of the main contributor to your 8-inch specialty technology that helped offset any business weakness on display drivers?

這會是幫助抵消顯示驅動器業務弱點的 8 英寸專業技術的主要貢獻者之一嗎？

Yes, that's pretty correct to our efforts.

是的，這對我們的努力非常正確。

And --

和 -

It's still a small part to UMC's revenue share.

這仍然是聯電收入份額的一小部分。

But this, the automotive segments, the growth rate and potential growth is the largest one in our forecast.

但這其中，汽車細分市場的增長率和潛在增長是我們預測中最大的一個。

Any ballpark number in terms of revenue contribution from auto this year, or maybe year-on-year growth, just a ballpark number.

就今年汽車的收入貢獻而言，任何大致數字，或者可能是同比增長，都只是一個大致數字。

We don't have the number on hand right now.

我們手頭現在沒有這個號碼。

Okay, thank you so much.

好的，非常感謝。

Just one last question.

最後一個問題。

Can you update us a little bit about your next-generation development?

您能向我們介紹一下您的下一代開發嗎？

I think you said 14 nanometer, right?

我想你說的是 14 納米，對吧？

Yes.

是的。

Our 14 FinFET technology development is still on track.

我們的 14 FinFET 技術開發仍在正常進行中。

And we expect to begin the customer tapeout later in this year.

我們預計將在今年晚些時候開始客戶流片。

And we're still targeting to enter the 14 FinFET production in the second half next year.

並且我們仍然計劃在明年下半年進入 14 FinFET 生產。

Okay, so mass production in second half next year.

好的，明年下半年量產。

Yes.

是的。

Right.

正確的。

Can you just elaborate -- sorry, elaborate more color about the applications in terms of this tapeout?

您能否詳細說明一下——抱歉，請根據此流片詳細說明有關應用程序的更多顏色？

Yes.

是的。

The first application will be on the communication and consumer.

第一個應用程序將放在通信和消費者上。

Alright.

好吧。

Thank you so much.

太感謝了。

Thank you.

謝謝你。

Steven Pelayo, HSBC.

匯豐銀行的史蒂文·佩拉約。

Great.

偉大的。

A few quick follow ups here, accounting ones.

這裡有一些快速跟進，會計。

Will 40 nanometer increase in dollars for you in the second quarter as well, or is it a shift over to 28?

40 納米是否會在第二季度為您增加美元，還是會轉移到 28 納米？

Yes, we are expecting overall revenue to grow 5%, 6%.

是的，我們預計總收入將增長 5%、6%。

And 40 nanometer as percentage of revenue will at least be flat.

40 納米佔收入的百分比至少會持平。

So, yes.

所以，是的。

So it will grow in line as well.

所以它也會同步增長。

A quick couple of accounting ones here, tax rate thoughts for second quarter and the rest of the year?

這裡有幾個會計問題，第二季度和今年剩餘時間的稅率想法？

Tax rate?

稅率？

Yes.

是的。

It's -- I can only give you the full year.

這是——我只能給你一整年。

It should be between 10% to 15%.

它應該在 10% 到 15% 之間。

But quarter over quarter it's a bit difficult to predict as in the second quarter, when we pay out more than 50% of our earnings, the remaining unpaid earnings will be levied about 10%, so-called the retained earnings tax.

但是季度環比有點難以預測，因為在第二季度，當我們支付超過 50% 的收益時，剩餘的未支付收益將被徵收 10% 左右，即所謂的留存收益稅。

So that will happen in quarter two.

所以這將在第二季度發生。

But we're expecting our tax rate, effective tax rate in-between 10% to 15%.

但我們預計我們的稅率，有效稅率在 10% 到 15% 之間。

Alright.

好吧。

And two more quick ones here.

這裡還有兩個快速的。

I guess with the China operations and the non-controlling interest line, I assume, as that fab ramps towards the end of the year, I guess there's probably loss sharing that goes on.

我想隨著中國業務和非控股權益線，我認為，隨著晶圓廠接近年底的增長，我想可能會出現虧損分攤。

So how will that impact the P&L as we exit the year?

那麼，當我們退出這一年時，這將如何影響損益表呢？

Again, we own 30% for now, but we do have controlling over this JV.

同樣，我們目前擁有 30% 的股份，但我們確實控制了這家合資企業。

So we will consolidate 100% on the -- for the time being it's on the operating expenses side.

因此，我們將 100% 整合——暫時是在運營費用方面。

When we start production, all the costs will be allocated to its appropriate item.

當我們開始生產時，所有成本都將分配給相應的項目。

And the remaining 70% will be given back to the other shareholders, regardless it's loss or profit at the bottom line.

剩下的70%將返還給其他股東，無論是虧損還是盈利。

So that's what I mean.

這就是我的意思。

I'm assuming when you start a fab, you usually start it at losses.

我假設當你開始一個晶圓廠時，你通常是在虧損的情況下開始的。

You are sharing essentially 70% of those losses with the partner, so that would be an add-back to your P&L.

您與合作夥伴分擔了 70% 的損失，因此這將增加您的損益表。

Yes (multiple speakers).

是（多位發言者）。

Can you quantify at all how --

你能量化一下如何——

That's already the case for the second quarter, although it's a minor numbers.

第二季度的情況已經如此，儘管這是一個次要數字。

(Multiple speakers).

（多個揚聲器）。

How much of an impact do you think it could be this year?

您認為今年會產生多大影響？

How much would be the impact?

會有多大影響？

I cannot give you a forecast for Xiamen JV as it's a wide range.

我不能給你一個廈門合資企業的預測，因為它的範圍很廣。

But, of course, since you assume -- it's reasonable to assume it will be a loss-making entity.

但是，當然，既然你假設 - 假設它將是一個虧損實體是合理的。

Okay.

好的。

And you gave full-year depreciation guidance.

你給出了全年折舊指導。

On a quarter-on-quarter basis, does it step up significantly with 28 nanometer, going to the high-teens percentage of revenue as well?

在季度環比的基礎上，它是否會隨著 28 納米顯著提高，也達到收入的十幾歲百分比？

For the full year it's 20% year over year.

全年同比增長20%。

And this quarter, Q1, over the previous quarter, was around 6.6%.

與上一季度相比，本季度第一季度約為 6.6%。

And quarter two over quarter one is around 5%; 4% or 5%.

第二季度比第一季度高出 5% 左右； 4% 或 5%。

4% to 5%.

4% 到 5%。

And then my last question; I'm sorry, so many.

然後是我的最後一個問題；對不起，這麼多。

In your 20-F you did actually reveal the largest customer and it was up 23% year on year, so a very big growth considering the overall Company I think was up what 3% or so?

在您的 20-F 中，您確實透露了最大的客戶，並且同比增長了 23%，所以考慮到整個公司，我認為增長了 3% 左右，這是一個非常大的增長？

So I'm just curious, is this market share gains that are going on, is there M&A activity with that customer that is opening up opportunities for you?

所以我很好奇，這種市場份額的增長是否正在持續，是否有與該客戶的併購活動為您打開了機會？

Or do you expect that kind of momentum to sustain?

還是您預計這種勢頭會持續下去？

When you think about your largest customer, do you think it will grow in line this year in 2016, or continue to outperform like it did in 2015?

當您考慮您的最大客戶時，您認為它會在 2016 年與今年保持一致，還是會像 2015 年一樣繼續表現出色？

I cannot predict single customers.

我無法預測單個客戶。

But we will try to maintain a diversified client base.

但我們將努力維持多元化的客戶群。

But the top few customers, of course, will remain very important to our overall revenue contribution.

但當然，前幾名客戶對我們的整體收入貢獻仍然非常重要。

As our CEO just pointed out, we do expect to see one to two customers continue to contribute more than 10% of our revenue base.

正如我們的首席執行官剛剛指出的那樣，我們確實希望看到一到兩個客戶繼續貢獻超過 10% 的收入基礎。

And they are exactly the same customers as in 2015.

他們與 2015 年的客戶完全相同。

Okay, thank you very much.

好的，非常感謝。

Thank you.

謝謝你。

Thank you for all your questions.

謝謝你的所有問題。

That concludes today's Q&A session.

今天的問答環節到此結束。

And now I will turn things over to UMC Head of Investor Relations for closing remarks.

現在，我將把事情交給 UMC 投資者關係負責人來結束髮言。

Thank you everyone for joining us today.

感謝大家今天加入我們。

We appreciate your questions.

我們感謝您的提問。

As always, if you have any additional follow-up questions, please feel free to contact UMC at ir@umc.com.

與往常一樣，如果您有任何其他後續問題，請隨時通過 ir@umc.com 聯繫 UMC。

Have a good day.

祝你有美好的一天。

Thank you.

謝謝你。

And ladies and gentlemen, that concludes our conference for first quarter 2016.

女士們，先生們，我們 2016 年第一季度的會議到此結束。

And thank you for your participation in UMC's conference.

並感謝您參加聯電的會議。

There will be a webcast replay within an hour.

將在一小時內進行網絡直播重播。

Please visit www.umc.com under the Investor Relations, Investor Events section.

請訪問 www.umc.com 的投資者關係、投資者活動部分。

You may now disconnect.

您現在可以斷開連接。

Good bye.

再見。