聯華電子 (UMC) 2016 Q3 法說會逐字稿

Welcome everyone to UMC's 2016 third quarter earnings conference call. (Operator Instructions). Now I would like to introduce Mr. Bowen Huang, Head of Investor Relations at UMC. Mr. Huang you may begin.

歡迎大家參加聯華電子 2016 年第三季財報電話會議。 （操作員說明）。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 third quarter of 2016. I am joined by Mr. Po Wen Yen, the CEO of UMC, and Mr. Chitung Liu, the CFO of UMC.

感謝並歡迎參加聯電 2016 年第三季電話會議。聯電執行長鮑文彥先生和聯電首席財務長劉啟東先生也出席了會議。

In a moment, we will hear our CFO present the third quarter financial results, followed by our CEO's key message to address UMC's focus and fourth quarter guidance. After that there will be a question and answer session.

稍後，我們將聽到我們的財務長介紹第三季度的財務業績，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四季度的指導。之後將進行問答環節。

UMC's quarterly financial reports are available at our website www.umc.com under the investor's financial section. 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 risk that may be beyond the Company's control.

UMC 的季度財務報告可在我們的網站 www.umc.com 的投資者財務部分查閱。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性的影響，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。

For this risk, please refer to UMC's filing with SEC in the US, and ROC Securities authorities. I would now like to introduce UMC's CFO Mr. Chitung Liu to discuss UMC's third quarter 2016 business results.

此風險，請參閱聯華電子向美國 SEC 和中華民國證券當局提交的文件。現在我想介紹聯電財務長劉啟東先生來討論聯華電子2016年第三季的業績。

Thank you, Bowen. I would like to go through the third quarter 2016 investor conference presentation material which can be downloaded from our website.

謝謝你，鮑文。我想瀏覽一下 2016 年第三季投資者會議的簡報資料，這些資料可以從我們的網站下載。

Starting on page 3, the third quarter of 2016, consolidated revenue was NTD38.16 billion with gross margin at 21%.

從第3頁開始，2016年第三季度，合併營收為新台幣381.6億元，毛利率為21%。

The net income attributable to the stockholder of the parent was NTD2.98 billion. Earnings per ordinary shares were NTD0.24. For the utilization rate this quarter and last quarter as well as the same quarter of last year was all around 89%.

歸屬母公司股東淨利為新台幣29.8億元。每股普通股獲利為新台幣0.24元。本季、上季以及去年同季的使用率均在89%左右。

So on page 4 is the comparison against the previous quarter. Revenue growth at 3.2% to NTD38.16 billion. Gross profit margin was 21.8% or NTD8.3 billion. With higher start-up costs from our Xiamen JV investments, our OpEx has grown 8.8% to NTD6.3 billion with an impairment loss from one of our solar subsidiaries NexPower which accounts for around NTD4.5 billion -- NTD450 million impairment loss in the third quarter.

第四頁是與上一季的比較。營收成長3.2%至新台幣381.6億元。毛利率為21.8%，即新台幣83億元。由於廈門合資企業投資的啟動成本較高，我們的營運支出成長了8.8%，達到新台幣63 億元，其中我們的一家太陽能子公司NexPower 的減損損失約為新台幣45 億元，即4.5 億元新台幣的減損損失。第三季。

The net result for operating income was NTD1.48 billion or 3.9%, percentage point, and net income attributable to stockholder of the parent was NTD2.975 billion with an EPS of NTD0.24.

營業收入淨額為新台幣14.8億元，成長3.9%，歸屬母公司股東淨利為新台幣29.75億元，每股收益為新台幣0.24元。

For page 5 is a comparison for the first nine months against the previous year. Revenue was basically flat with 1.3% decline year over year. Gross profit because of higher depreciation costs, gross margin dropped to 19.7% to NTD21.6 billion. Operating expenses as we explained earlier for the third quarter, the start-up costs of our Xiamen JV has caused the operating expense to grow 16% year over year to NTD17.2 billion. So the net income for 2016's first three quarters was NTD3.4 billion with EPS of NTD0.47.

第 5 頁是前九個月與前一年的比較。收入基本持平，較去年同期下降1.3%。毛利因折舊成本上升，毛利率下降至19.7%至新台幣216億元。營運費用正如我們之前在第三季所解釋的那樣，廈門合資企業的啟動成本導致營運費用年增 16％，達到新台幣 172 億元。因此2016年前三季淨利為新台幣34億元，每股收益為新台幣0.47元。

On page 6, is our simplified balance sheet and cash remained around NTD55.2 billion with our total stockholder equity around NTD218 billion or NTD219 billion.

第6頁是我們簡化的資產負債表，現金仍維持在新台幣552億元左右，股東權益總額約新台幣2,180億元或2,190億元。

For operating segment report, new business has become insignificant or less than 2% of our total revenue. The majority of the financial result was contributed by our wafer fabrication department and segment revenue was NTD38 billion for third quarter of 2016.

就經營分部報告而言，新業務已變得微不足道或低於我們總收入的2%。大部分財務業績由我們的晶圓製造部門貢獻，2016年第三季部門營收為新台幣380億元。

Blended ASP in the previous quarter grew by around 1% against the previous quarter. In terms of our revenue breakdown, in the third quarter Japan and Europe still remain at the lower level around 6% in combined, with North America accounts for the biggest contribution of 52%.

上一季的混合平均售價較上一季成長約 1%。從我們的營收細分來看，第三季日本和歐洲合計仍維持在 6% 左右的較低水平，其中北美貢獻最大，達到 52%。

IDM remained unchanged at 7% quarter over quarter and in terms of our segment breakdown it's also quite similar compared to the second quarter of 2016. We continue to see 28-nanometer our most leading-edge revenue base continuing to grow. And in the third quarter, it reached 21% of the total revenue.

IDM 環比保持在 7% 不變，就我們的細分市場細分而言，與 2016 年第二季度相比也非常相似。我們繼續看到我們最領先的 28 奈米收入基礎繼續增長。而第三季度，就達到了總收入的21%。

The total revenue below 40 nanometers inclusive is around 48%. Capacity mostly coming from -- the incremental new capacity mostly coming from Xiamen in Q4. By year-end, we expect the Xiamen JV will reach 6000 wafer capacity by year-end of 2016. We also continue to see some increase of 40-nanometer capacity in our Singapore Fab 12i.

40奈米以下的總營收佔比約為48%。產能主要來自於－第四季新增產能主要來自廈門。到年底，我們預計廈門合資企業的晶圓產能將在 2016 年底達到 6000 片。我們也持續看到新加坡 Fab 12i 的 40 奈米產能增加。

So far, the CapEx number remains unchanged around $2.2 billion. Although the actual number may differ by year-end. We will report that accordingly in our next conference call.

到目前為止，資本支出數字保持在 22 億美元左右不變。儘管實際數字到年底可能會有所不同。我們將在下次電話會議中相應地報告這一點。

And that's pretty much the wrap up for our third quarter performance and I would like to now turn the call over to Mr. Yen, CEO of UMC.

這幾乎是我們第三季業績的總結，我現在想將電話轉給聯華電子執行長顏先生。

Thank you Chitung and hello everyone. I would like to update everyone on UMC's third quarter operating results. In the third quarter of 2016 UMC's Foundry revenue increased 3.2% sequentially to NTD38.05 billion.

謝謝Chitung，大家好。我想向大家介紹聯華電子第三季經營業績的最新情況。 2016年第三季聯電代工營收季增3.2%至新台幣380.5億元。

Foundry operating margin was 5.5% as the wafers shipments grew to 1.57 million 8-inch equivalent wafers. With quarterly capacity utilization remaining at 89%.

隨著晶圓出貨量成長至 157 萬片 8 吋等效晶圓，代工營運利潤率為 5.5%。季度產能利用率維持在 89%。

During the quarter, our 28-nanometer business exceeded 20% of quarterly revenue for the first time, mainly driven by strong chip demand within the communications segment. Our new high in 28-nanometer contribution reflects customers' robust wafer demand and our 12-inch flagship Fab 12A in Tainan, Taiwan. Which has demonstrated mature technology status with consistent yields to reach economy of scale.

本季度，我們的 28 奈米業務首次超過季度營收的 20%，主要受到通訊領域晶片需求強勁的推動。我們在 28 奈米貢獻的新高反映了客戶強勁的晶圓需求以及我們位於台灣台南的 12 吋旗艦 Fab 12A。已展現出成熟的技術狀態和穩定的產量，以達到規模經濟。

To further expand our 28-nanometer market share into new applications, UMC has announced the availability of Faraday's 12.5G SerDes PHY on 28HPCU platform. The introduction of this IP highlights our ongoing efforts to introduce new features on UMC's 28-nonmeter process. Including a wide range of high-speed transfer interface IP, for optical networking and other telecommunication applications.

為了進一步擴大我們在新應用領域的 28 奈米市場份額，聯華電子宣佈在 28HPCU 平台上推出智原 12.5G SerDes PHY。該 IP 的推出突顯了我們在 UMC 28 奈米製程上引入新功能的持續努力。包括廣泛的高速傳輸介面IP，用於光網路和其他電信應用。

UMC has introduced Faraday's PowerSlash fundamental IP cells which cells which can be incorporated into our 55-nanometer ULP, ultra-low power, technology to create an optimized lower power operating environment for wireless applications. Such as those used in applications for internet of things.

UMC 推出了 Faraday 的 PowerSlash 基本 IP 單元，該單元可以合併到我們的 55 奈米 ULP 超低功耗技術中，為無線應用創建最佳化的低功耗操作環境。例如物聯網應用中使用的那些。

Turning our attention to the fourth quarter, we anticipate a flat outlook. We expect our Fab 12X in Xiamen, China, to enter production for 40 and 55-nanometer products to address the strong demand in China's chip market. The potential of Fab 12X signifies an important milestone as we enter China's high-growth IC supply chain to realize new market opportunities.

將我們的注意力轉向第四季度，我們預計前景將持平。我們預計位於中國廈門的 Fab 12X 將投入生產 40 奈米和 55 奈米產品，以滿足中國晶片市場的強勁需求。 Fab 12X 的潛力標誌著我們進入中國高成長的 IC 供應鏈以實現新的市場機會的一個重要里程碑。

Fab 12X's location in China, Xiamen, serves as an ideal manufacturing location for customers seeking to diversify their 12-inch manufacturing needs. We look forward to a successfully ramping production of our 12-inch Xiamen fab which will strengthen UMC's global presence in the semiconductor industry.

Fab 12X 位於中國廈門，是尋求多樣化 12 吋製造需求的客戶的理想製造地點。我們期待廈門 12 吋晶圓廠成功提高產量，這將加強聯華電子在半導體產業的全球影響力。

Fab 12X will continue to follow UMC's core values and protocols in sustainable semiconductor manufacturing, which have been implemented throughout UMC's global Fabs. Through our green manufacturing, we hope to set positive industry examples through concrete actions in order to combat global warming, enhance resource conservation, and save energy.

Fab 12X 將繼續遵循 UMC 在永續半導體製造方面的核心價值和協議，這些價值和協議已在 UMC 的全球晶圓廠中實施。我們希望透過綠色製造，以實際行動為因應全球暖化、加強資源節約、節約能源樹立產業典範。

UMC's selection as a Dow Jones Sustainability Index Global Component for the ninth consecutive year highlights UMC's active participation in environment protection, and community service, and sustainable manufacturing practices. Which reflects our commitment to attain high corporate social responsibility goals.

聯華電子連續第九年入選道瓊永續指數全球成分股，突顯聯華電子積極參與環境保護、社區服務以及永續製造實踐。這反映了我們對實現高企業社會責任目標的承諾。

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

現在請容許我用中文總結一下最近的亮點。

(Spoken in Chinese).

（用中文說）。

I have finished my remarks. And now let me go over the fourth quarter 2016 guidance.

我的發言已經講完了。現在讓我回顧一下 2016 年第四季的指導。

Our wafer shipments will show an increase of approximately 5%. The ASP in NT to decrease by approximately 5%. The UMC gross profit margin will be in low-20% range. The capacity utilization rate will be approximately 90%. Our foundry CapEx for 2016 remains as $2.2 billion.

我們的晶圓出貨量將成長約5%。北領地的平均售價將下降約 5%。聯華電子的毛利率將在20%以下的範圍內。產能利用率約90%。 2016 年我們的代工廠資本支出仍為 22 億美元。

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，請接通線路，謝謝。

Thank you Mr. Yen. (Operator Instructions). Randy Abrams, Credit Suisse.

謝謝顏先生。 （操作員說明）。蘭迪·艾布拉姆斯，瑞士信貸。

Okay, yes, thank you. I wanted to ask the first question about the guidance for the 5% growth in shipments. It looks a bit better than seasonality from most of the recent years. If you could talk about the applications in technology nodes say across 12 and 8 inch that are showing the growth? And then if any areas are still seeing a seasonal decline into fourth quarter?

好的，是的，謝謝。我想問第一個問題，關於出貨量成長 5% 的指導。從最近幾年的大多數情況來看，它看起來比季節性要好一些。您能否談談 12 吋和 8 吋技術節點中顯示出成長的應用？那麼，進入第四季是否有任何地區仍出現季節性下降？

For our fourth quarter, by application, the consumer will be flat and the communication will dip slightly and our computer will grow a few percentage points.

對於我們的第四季度，按應用程式劃分，消費者將持平，通訊將略有下降，而我們的電腦將成長幾個百分點。

Okay, could you talk on 8 inch? Because 8 inch a few months ago was slowing down. If you've seen the 8 inch start to rebound enough on the applications on the 8 inch specifically or is it still the 12 inch and 28 nanometer that's driving the growth?

好的，你能談談 8 英寸嗎？因為8吋在幾個月前就已經放緩了。如果您已經看到 8 英寸在 8 英寸應用上開始反彈，或者仍然是 12 英寸和 28 奈米在推動增長？

Yes, indeed our 8 inch in the past quarter is weakening. However, we do catch up in fourth quarter and it's the most -- our (inaudible) Fab is now fully loaded in the fourth quarter.

是的，確實我們上個季度的8吋正在走弱。然而，我們確實在第四季度迎頭趕上，而且是最多的——我們的（聽不清楚）晶圓廠現在在第四季度已滿負荷。

Okay, I guess...

好吧，我猜...

Yes?

是的？

Okay, if I can follow on that then, so the 8 inch is fully loaded now so the ASPs which were guided down 5% in NT dollar, could you talk about how much is currency in that for third quarter versus fourth quarter, versus product mix? If it's a shift now that 8 inch is picking up more than 12 inch, is that a factor also in the ASP change?

好的，如果我可以繼續說下去，那麼8 英寸現在已經滿載了，所以ASP 指導價下降了新台幣5%，你能談談第三季度與第四季度相比，與產品相比，貨幣是多少嗎？混合？如果現在 8 英寸的尺寸超過 12 英寸，這是一個轉變，那麼這也是 ASP 變化的因素嗎？

Yes, it is. Our fourth quarter ASP decline is mainly due to our surge in 8-inch business with some lower ASP. And yes that impacts our gross margin.

是的。我們第四季的平均售價下降主要是由於我們的 8 吋業務激增，但平均售價有所下降。是的，這會影響我們的毛利率。

How much factor is currency from like the --?

貨幣是由多少因素組成的－？

(Multiple speakers) fractional.

（多個發言者）分數。

Okay, in 8 inch, could you clarify, is that mostly the driver I see or is there other applications that have come in to improve the 8-inch outlook?

好的，在 8 英寸中，您能否澄清一下，這主要是我看到的驅動程序，還是有其他應用程式來改善 8 英寸的外觀？

Yes, there are some driver IC business in the large panel driver.

是的，在大面板驅動方面也有一些驅動IC業務。

My last question, just on the Xiamen, and it's tied I think to production, will start on 40 and 55. Could you give a sense also on the 40 nanometer -- what milestone you need to see on 40 nanometer to move to 28 in Xiamen? And then maybe give a status update on that 40-nanometer progress on reaching that milestone?

我的最後一個問題是關於廈門的，我認為這與生產有關，將從40 和55 開始。您能否也談談40 奈米——您需要在40 奈米上看到什麼里程碑才能轉向28 奈米？廈門？然後也許可以提供有關 40 奈米達到這一里程碑的進展的最新狀態？

Yes our 40-nanometer schedule is well on track and in terms of our [SM] yield and our (inaudible) validation, so we expect to receive the 40-nanometer customers (inaudible) by this quarter. We anticipate a wafer start in the early next year 2017.

是的，我們的 40 奈米計畫在我們的 [SM] 良率和（聽不清楚）驗證方面進展順利，因此我們預計在本季之前收到 40 奈米客戶（聽不清楚）。我們預計晶圓將於 2017 年初開始生產。

For Xiamen, doing 28, if you'd start -- or I guess you get to revenue, is that the milestone to apply for 28 nanometer in Xiamen?

對於廈門來說，做28，如果你開始——或者我猜你獲得收入，這是在廈門申請28奈米的里程碑嗎？

There's no exact rule on that. As long as we deliver 40 revenue, we will be able to apply for approvals from the regulators in Taiwan and we think it shouldn't be an obstacle.

對此沒有確切的規則。只要我們達到40的收入，我們就可以向台灣監管機構申請批准，我們認為這應該不是障礙。

All right, thanks a lot for the updates.

好的，非常感謝您的更新。

Steven Pelayo, HSBC.

史蒂文‧佩拉約，匯豐銀行。

Yes, just a couple of housekeeping questions. I am curious your guidance for gross margins are in the low 20%s, that's about what you reported. But I guess with 200 millimeter stronger and fully loaded that might be positive for gross margins but rising depreciation might be negative and currency might be negative. So do you expect gross margins to directionally increase in the fourth quarter?

是的，只是幾個內務問題。我很好奇你們對毛利率的指導是在 20% 左右，這與你們報告的情況差不多。但我猜想，如果強度增加 200 毫米並且滿載，這可能對毛利率有利，但不斷上升的折舊可能是負面的，貨幣可能是負面的。那麼您預計第四季毛利率會定向成長嗎？

The gross margin rate is likely to stay flattish, however, you are correct. The key component of the formula actually moving towards the negative side. Along with our rising costs of Xiamen fabs.

毛利率可能會保持平穩，但你是對的。該公式的關鍵組成部分實際上正在走向負面。隨著我們廈門晶圓廠成本的不斷上漲。

So the main reason we are able to predict low 20% gross margin is mainly we are recognizing the insurance claim from the February earthquake earlier this year. So that's about over NTD1 billion in contribution.

因此，我們能夠預測 20% 的低毛利率的主要原因是我們認識到了今年早些時候 2 月地震的保險索賠。這麼算來，貢獻額大約超過新台幣10億元。

So I'm sorry, what is the gross margin guidance excluding this insurance benefit?

抱歉，不包括此保險福利的毛利率指引是多少？

Including.

包括。

What would it be excluding?

它會排除什麼？

It would be high teens.

這將是高中生。

High teens okay. Then the depreciation impacts, I guess I'm trying -- the last couple of quarters you've had pretty high CapEx numbers. In fact, taking your -- on your cash flow statement you already reported in the first nine months $2.2 billion. So I guess I'm a little unclear about fourth quarter CapEx number on the cash flow statement and what about fourth quarter depreciation?

高中生還好。然後是折舊影響，我想我正在嘗試——過去幾季你的資本支出數字相當高。事實上，在你的現金流量表上，你已經在前九個月報告了 22 億美元。所以我想我有點不清楚現金流量表上第四季的資本支出數字以及第四季的折舊情況？

As I mentioned earlier, the number is likely to exceed our $2.2 billion forecast. The first three quarter is close to $2.2 billion already. But the Q4 CapEx will be slowing down a little bit for both Taiwan as well as Xiamen. As for the depreciation, forecast still unchanged, we are looking for a little bit over 15% year-over-year growth and sequential it's kind of linear.

正如我之前提到的，這個數字很可能超過我們 22 億美元的預測。前三季已接近 22 億美元。但台灣和廈門的第四季資本支出都將略有放緩。至於貶值，預測仍然不變，我們預計同比增長略高於 15%，並且是線性的。

Okay, linear. The last housekeeping question from me is I guess you have Xiamen impacts to the OpEx line in the third quarter. Did those increase in the fourth quarter, what's the OpEx outlook for the fourth quarter?

好的，線性的。我問的最後一個管理問題是，我猜廈門對第三季的營運支出有影響。第四季的營運支出是否有增加？第四季的營運支出前景如何？

For first quarter from November 1, Xiamen will be starting official volume production. So every line item, cost item, will go to the appropriate line. So COGS will go to COGS and OpEx will go to OpEx. So in Q4, the operating expenses coming from Xiamen actually will decline by about NTD100 million and the cost of goods sold will increase.

11月1日起第一季度，廈門將開始正式量產。因此，每個行項目、成本項目都會轉到相應的行。因此，COGS 將歸於 COGS，而 OpEx 將歸於 OpEx。所以第四季來自廈門的營業費用其實會下降約1億元新台幣，而銷售成本會增加。

Okay, but overall OpEx on (multiple speakers) a kind of flattish revenue should be down then quarter on quarter.

好的，但（多個發言者）收入持平的整體營運支出應該會逐季下降。

The total loss coming from Xiamen will be slightly increased compared to third quarter.

來自廈門的總虧損較第三季略有增加。

But that gets put up into the cost of goods sold now, no longer an OpEx if I understand correctly, is that right?

但如果我理解正確的話，這會計入現在銷售的商品成本中，不再是營運支出，對嗎？

The majority, but the Xiamen fab also has its own operating expenses.

大多數，但廈門晶圓廠也有自己的營運費用。

Sure, okay, thanks for helping me sort that out.

當然可以，謝謝你幫我解決這個問題。

Thanks.

謝謝。

Gokul Hariharan, JPMorgan.

戈庫爾·哈里哈蘭，摩根大通。

Yes, hi, thanks for taking my question. My first question is on the commentary on different end products. So you talk about communication being down a little bit and compute being up quite a bit. Could we have some color about where the growth is coming in compute, given that compute is only 10% to 12% of the revenue base? If that's going to drive most of the shipment growth, should we expect a meaningful increase there?

是的，嗨，感謝您提出我的問題。我的第一個問題是關於不同最終產品的評論。所以你說通信有點下降，但計算卻上升了很多。鑑於計算僅佔收入基礎的 10% 到 12%，我們能否對計算的成長方向有一些了解？如果這將推動大部分出貨量成長，我們是否應該預期出貨量會出現有意義的成長？

The second is on the communications side. Typically, Q4 we do see some inventory correction. Are we seeing any of that in Q4 or we are still seeing no big correction from the communication side customers?

第二個是在通信方面。通常情況下，第四季度我們確實會看到一些庫存調整。我們在第四季度是否看到了這種情況，或者我們仍然沒有看到通信方面客戶的重大調整？

For our -- in Q4 our computer segment, the LCD as I just mentioned, the LCD drive, is increased. And the tablets is down. And for the communication segment the baseband -- no the AP baseband and small-panel driver interface devices is going up and the Wi-Fi audio codec is going down.

對於我們的電腦領域來說，在第四季度，我剛才提到的 LCD，即 LCD 驅動器，有所增加。平板電腦也下降了。對於通訊部分，基頻－沒有 AP 基頻和小面板驅動器介面設備正在上升，而 Wi-Fi 音訊編解碼器正在下降。

It's too early to guide in the first quarter 2017. However, we expect a normal seasonal adjustment in the first quarter 2017.

現在對 2017 年第一季進行指導還為時過早。不過，我們預計 2017 年第一季會出現正常的季節性調整。

Okay, and in the Xiamen fab, could we talk a little bit about -- now you're guiding for about 6000 to 9000 of capacity, probably going up to 20,000 next year. Could you talk about the kind of customer base that is coming in on 40 and 55 nanometer in the Xiamen fab?

好的，在廈門晶圓廠，我們可以談談 - 現在你們指導產能約為 6000 到 9000 個，明年可能會增加到 20,000 個。能談談廈門晶圓廠40奈米和55奈米的客戶群類型嗎？

Is it similar customers or the same customers in Xiamen as well compared to Taiwan? Or are they a completely new set of customers? And any color in terms of the verticals with communication heavy or consumer heavy?

廈門和台灣的客戶是相似的還是同樣的客戶？還是他們是一群全新的客戶？在通訊重或消費者重的垂直領域有什麼顏色？

Yes we are leveraging our Xiamen fab with our most competitive 40-nanometer technology to capture the fast-growing China market. And as we just mentioned, the initial production in Xiamen fab will be mainly in communication and consumer segment.

是的，我們正在利用廈門工廠的最具競爭力的 40 奈米技術來佔領快速成長的中國市場。正如我們剛才提到的，廈門工廠初期的生產將主要集中在通訊和消費領域。

So we -- the first wave of our communication will focus on the AP and baseband and our Wi-Fi audio codec. And there some second wave [comers] will be [set-top box], RF and IP [cat] is coming on the way.

因此，我們的第一波通訊將重點放在 AP 和基頻以及我們的 Wi-Fi 音訊編解碼器。第二波浪潮將是[機上盒]、RF 和 IP [貓] 即將到來。

Okay and could you characterize when you get to a reasonable ramp up in Xiamen would it be mostly Chinese customers? Chinese domicile fabless customers? Or is it still going to be a mix of Chinese and international?

好的，您能否描述一下，當您在廈門達到合理的成長時，主要是中國客戶嗎？中國本土無晶圓廠客戶？還是它仍然是中國和國際的混合體？

It will be mixed. It will be a mix in Chinese customer and international customers.

它將是混合的。它將是中國客戶和國際客戶的混合。

Okay, great, thank you.

好的，太好了，謝謝。

Thank you.

謝謝。

Michael Chou, Deutsche Bank.

麥可週，德意志銀行。

Hi, thanks for taking my question. My first question is what would be your 28-nanometers sales portion quarter by quarter next year given that TSMC commented that they should be still very dominant in 28 nanometers next year. So what is your view for your market share in 28 nanometer? There's a follow up question.

您好，感謝您提出我的問題。我的第一個問題是，考慮到台積電表示明年他們在 28 奈米領域仍將佔據主導地位，明年每季 28 奈米的銷售份額會是多少。那麼您對28奈米的市佔率有何看法？有一個後續問題。

Our 28 nanometers, we still think it will increase 28 nanometers capacity and shipment for 2017. But we don't have specific number -- quarter-over-quarter numbers right now.

我們的 28 奈米，我們仍然認為 2017 年 28 奈米的產能和出貨量將會增加。但我們現在沒有具體的數字——季度環比的數字。

Yes but we can answer you from a capacity point of view that we are adding a few thousand more 28-nanometers capacity in Tainan, Taiwan. And once we have our [14] revenue, we will also get approval from Taiwan Government and our Xiamen fab therefore will build at least 10,000 wafers in 28 for 2017 as well.

是的，但我們可以從產能的角度回答你，我們正在台灣台南增加數千個28奈米產能。一旦我們獲得[14]收入，我們也將獲得台灣政府的批准，因此我們的廈門工廠也將在 2017 年 28 年內建造至少 10,000 片晶圓。

You mean just for Xiamen fab, right?

你的意思是只針對廈門工廠吧？

Yes.

是的。

Yes, so that means you [ate] up more than 10,000 in total for 28 nanometers in 2017, am I right?

是的，所以這意味著你在 2017 年總共吃掉了 10,000 多個 28 奈米，對嗎？

Yes, very likely, yes --

是的，很有可能，是的——

Oh, very likely.

哦，很有可能。

-- the 5000 addition is ongoing right now, it's in --

-- 5000 的增加正在進行中，它在 --

5000 additions?

加5000？

Yes.

是的。

Okay. The other question is when would you reach the corporate gross margin for 28 nanometer?

好的。另一個問題是，28奈米的企業毛利率什麼時候會達到？

Sorry Michael you have to speak up, we can barely hear you.

抱歉，邁克爾，你必須大聲說話，我們幾乎聽不到你的聲音。

Okay, sorry. What -- when will you reach the corporate gross margin for 28 nanometer?

哦抱歉。什麼時候才能達到 28 奈米的企業毛利率？

So the -- our 28 nanometers gross margin will -- is -- even though it's improving but it stays relatively stable. And there's still a few percentage points with 12-inch average gross margin.

因此，我們的 28 奈米毛利率將是，儘管它正在改善，但仍保持相對穩定。而12吋的平均毛利率還有幾個百分點。

Okay, so given strong competition from TSMC, so is that fair to say it could be quite challenging for you to reach the corporate gross margin or 12-inch average gross margin within four quarters?

好吧，考慮到來自台積電的激烈競爭，那麼可以公平地說，在四個季度內達到企業毛利率或 12 英寸平均毛利率是相當具有挑戰性的嗎？

Well we can only say that the gap is narrowing and -- but still a few percentage points to the 12-inch average gross margin.

好吧，我們只能說差距正在縮小，但仍比 12 英寸平均毛利率低幾個百分點。

Sure, okay. The other question is a housekeeping question. What is your assumption for Q4 currency? And what was your currency in Q3? Thank you.

當然可以。另一個問題是家政問題。您對第四季貨幣的假設是什麼？第三季您使用的貨幣是什麼？謝謝。

Well basically it's flat to third quarter, not much change.

基本上與第三季持平，沒有太大變化。

Okay and sorry, what is the number for your Q3 currency?

好的，抱歉，您的 Q3 貨幣的數字是多少？

It's 31.5.

現在是 31.5。

31.5. Thank you so much, I'm back to the queue now. Thank you.

31.5。非常感謝，我現在又回到隊列了。謝謝。

Thank you.

謝謝。

Charlie Chan, Morgan Stanley.

陳查理，摩根士丹利。

Hi, it's Charlie. So most of my questions were answered. But if I can get more detail on 28 nanometer. So what is the High-K/Metal Gate mix of 28 nanometer today?

嗨，我是查理。所以我的大部分問題都得到了解答。但如果我能獲得更多關於 28 奈米的細節。那麼今天的 28 奈米高 K/金屬柵混合是什麼？

And what's margin profile difference to the poly-SiON? Thanks.

與多晶矽的裕度分佈有何差異？謝謝。

You are asking the capacity or shipment?

你問的是容量還是出貨量？

Both if you can provide.

如果你能提供的話，兩者都可以。

Yes, the capacity mix, we are -- by the end of this year we are going to have a near 30,000 wafer per month on 28 nanometer and around 70% of 30,000 is a High-K/Metal Gate version. Around 30% is poly-SiON version.

是的，我們的產能組合是——到今年年底，我們每月將擁有近 30,000 片 28 奈米晶圓，其中 30,000 片中約 70% 是高 K/金屬閘極版本。大約 30% 是聚 SiON 版本。

How about the shipment and also the gross margin difference?

出貨量和毛利率差異如何？

I would say for the shipments in Q3, it's around 63% for poly-SiON version and around 37% is High-K/Metal Gate version.

我想說，第三季的出貨量中，poly-SiON 版本約佔 63%，High-K/Metal Gate 版本約佔 37%。

Okay, yes and margin, please?

好的，是的，還有保證金，好嗎？

Margin is highly dependent on the respective loadings but we only have the blended number which is a few percentage below our 12-inch corporate average.

利潤率很大程度上取決於各自的負載，但我們只有混合數字，該數字比 12 吋企業平均值低幾個百分點。

Okay and also I know you are still doing the budget but for next year depreciation or CapEx do you have a range -- even if it is a big range -- for our modeling?

好的，我也知道您仍在做預算，但是對於明年的折舊或資本支出，您是否有一個範圍（即使範圍很大）用於我們的建模？

We will report the CapEx number in next quarterly conference call. And as for depreciation it, will link to the CapEx number. But for sure we will see quite a significant jump from our Xiamen joint ventures. And Taiwan will be somewhat flattish and we will provide more detailed numbers next quarter.

我們將在下個季度的電話會議中報告資本支出數字。至於折舊，將與資本支出數字掛鉤。但可以肯定的是，我們將看到我們廈門合資企業的顯著飛躍。台灣的情況將有些平淡，我們將在下個季度提供更詳細的數據。

Okay and lastly I think some traders are saying -- some comments from equipment vendors that there are some delay of government's subsidy in those China projects. Can the Company provide some color or dispute those rumors?

好吧，最後我認為一些貿易商說——來自設備供應商的一些評論稱，政府對這些中國項目的補貼有所延遲。公司能否對這些傳聞提供一些解釋或反駁？

Yes, we already deny and [post] down the Town Stock Exchange (inaudible) that there is no such things. It is purely speculation by the media.

是的，我們已經否認並在城鎮證券交易所[發布]（聽不清楚）說不存在這樣的事情。這純粹是媒體的猜測。

Okay and how about your memory project with (inaudible) in terms of R&D progress and when are you going to tape-out the first chip?

好的，您的記憶體專案（聽不清楚）的研發進度如何？您打算何時流片第一個晶片？

The R&D projects is ongoing as planned. There is no change in the schedule. And I think the tape-out is sometime end of next year.

研發項目正按計劃進行。日程安排沒有變化。我認為流片時間是明年年底的某個時候。

Okay, great. Thank you very much.

好的，太好了。非常感謝。

Thank you.

謝謝。

Sebastian Hou, CLSA.

賽巴斯蒂安·侯，里昂證券。

Thank you for taking my questions. So my first question is to -- wanting to clarify on the guidance for the fourth quarter on ASP which is going to be down 5% -- sorry I wasn't able to listen -- to hear that clearly. So it's mainly due to the product mix of -- because of the more 8 inch, less 12 inch on the percentage perspective, am I right?

感謝您回答我的問題。所以我的第一個問題是 - 想澄清第四季度 ASP 的指導，該指導將下降 5% - 抱歉我沒能聽清楚 - 聽清楚。所以這主要是由於產品組合——因為從百分比來看，8 英寸更多，12 英寸更少，對嗎？

Yes, basically yes.

是的，基本上是的。

Okay, so do you see any pricing pressure from the apples-to-apples perspective?

好的，那麼從同類的角度來看，您認為存在定價壓力嗎？

In some area yes. But yes, so yes. We have a pretty good technology portfolio so yes.

在某些地區是的。但是是的，所以是的。我們擁有非常好的技術組合，所以是的。

Okay, understand. So if I look at your -- so my second point is that if I look at your third quarter report. On your communication application, which is up 3% so -- well mostly flat, put it this way. But your 28 nanos and -- up a lot and 40 nanometers continue to go up in 3Q.

好的，明白了。因此，如果我看一下你們的——那麼我的第二點是，如果我看一下你們的第三季報告。在您的通訊應用程式中，上漲了 3%，大致持平，這麼說吧。但你的 28 奈米和——上升了很多，40 奈米在第三季度繼續上升。

And so presumably (technical difficulty) most of your 28 and 40 is due in communication. So I just wonder what's the mismatch here and what have I missed here? [And we're interested], yes.

所以大概（技術難度）你 28 歲和 40 歲的大部分時間都在溝通上。所以我只是想知道這裡有什麼不匹配以及我在這裡錯過了什麼？ [我們有興趣]，是的。

In communications segment the Wi-Fi and audio codec is going down, it's dropped in the fourth quarter. So that leads to the few percentage points drop in in communication in fourth quarter. So even though --

在通訊領域，Wi-Fi 和音訊編解碼器正在下降，第四季有所下降。因此，這導致第四季度的溝通下降了幾個百分點。所以儘管——

Okay.

好的。

-- the AP baseband is pretty strong -- still very strong.

-- AP 基頻相當強大 -- 仍然非常強大。

Okay, thank you. And can I get the numbers from you on your utilization rate in 12 inch and 8 inch respectively in 3Q and fourth quarter, if I may?

好的謝謝。如果可以的話，我可以向您提供第三季和第四季分別在 12 吋和 8 吋方面的利用率數據嗎？

Yes, the power on -- the fourth quarter the 8 inch is around -- yes, it's all -- it's fully loaded, yes and for 12 inch is around mid-80% range.

是的，通電——第四季8英寸左右——是的，全部——滿載，是的，12英寸大約在80%範圍的中間。

Okay and with -- and what was the number in third quarter?

好的，第三季的數字是多少？

In the third quarter the 8 inch is around 90% range. And 12 inch is at the high-80% range.

第三季8吋的佔比約為90%。而12吋則處於80%的高位範圍。

Okay, thank you. And I'm -- my next question is regarding your 40 nanometers. Because I see how you mention that the -- you'll have the 40 nanometers wafer start in first quarter next year. So can I get more details on what customers -- what kind of customers in what type of applications?

好的謝謝。我的下一個問題是關於 40 奈米的。因為我明白你是如何提到的——你將在明年第一季開始生產 40 奈米晶圓。那麼我能否獲得更多有關哪些客戶的詳細資訊——哪些客戶使用哪種類型的應用程式？

And in terms of the revenue contribution, do you have an expectation for the full year next year? And what kind of what -- in terms of what capacity ramp you expect?

那麼就收入貢獻而言，您對明年全年有預期嗎？您期望什麼樣的產能提升？

Yes, the -- I cannot comment on for the moment for the -- for these first pioneer customers. But we do engage several potential customers on the way and we -- as we just mentioned the -- we are going to have the first customers tape-out this quarter and [would] wafer start in early next year. And we expect to recognize our 40-nanometer revenue contribution in the first half of 2017.

是的，對於這些第一批先鋒客戶，我暫時無法發表評論。但我們確實在路上接觸了一些潛在客戶，正如我們剛才提到的，我們將在本季讓第一批客戶流片，並在明年初開始晶圓生產。我們預計將在 2017 年上半年確認 40 奈米的收入貢獻。

Okay but do you expect that will -- I mean 40-nanometer contribution presumably in second quarter of 2017. Do you expect that will contribute up to 1% or 2% of your total revenue?

好吧，但你預計這會——我的意思是 40 奈米的貢獻大概會在 2017 年第二季。你預計這會貢獻你總收入的 1% 或 2% 嗎？

It's too early to comment on that.

現在對此發表評論還為時過早。

Okay and a little more details on your 40 nanometer. So I'm curious about what's the yield rate progress you have right now? Is it already reaching the [satisfied] level for you to begin mass production?

好的，關於 40 奈米的更多細節。所以我很好奇你們現在的殖利率進展如何？已經達到可以開始量產的【滿意】程度了嗎？

Yes, it's -- the yield rate is continually improving and is already -- get our customers' approval for their new product tape-out right now. So we -- and also there are test chips -- the accreditation -- the performance is well on track.

是的，良率正在不斷提高，並且已經獲得客戶對新產品流片的批准。因此，我們——還有測試晶片——認證——性能都步入正軌。

Okay, thank you. And my last question, if I may, is on your Xiamen fab, is the -- you mentioned earlier about you want to do -- initially mostly do 40 nanometers and 55 nanometers.

好的謝謝。如果可以的話，我的最後一個問題是關於你們廈門晶圓廠的，是你們之前提到的你們想要做的，最初主要是做 40 奈米和 55 奈米。

But if I look at your revenue breakdown by technology node, your 40 to -- above 40 nanometers -- above 40 and below 55 nanometer, this range, the revenue has been declining for the past few quarters on a year-on-year perspective.

但如果我看一下你們按技術節點劃分的收入細分，從 40 到 40 奈米以上、40 奈米以上到 55 奈米以下，這個範圍內，過去幾個季度的收入同比一直在下降。

So I just wondered is this more about 40 nanometer? Or there is still any demand -- customer demand for you on 55 nanometers?

所以我只是想知道這是否是40奈米左右？或者說還有什麼需求－客戶對你55奈米的需求？

Yes, in the initial stages we will focus on 40 nanometer. And still there are some potential customers they are targeting on 55 nanometers. So we are actively engaged those potential customers on 55 nanometer to improve our utilization rate in this node.

是的，在初始階段我們將重點放在 40 奈米。他們仍然瞄準了 55 奈米的一些潛在客戶。所以我們正在積極接觸55奈米的潛在客戶，以提高我們在這個節點的利用率。

Okay, but still I think based on your visibility, it seems like 40 nanometer has a better visibility for contribution, right?

好的，但我仍然認為根據您的可見性，40 奈米似乎具有更好的貢獻可見性，對吧？

Yes, correct.

是，對的。

Okay, thank you, that's all I have.

好的，謝謝，我只有這些了。

Roland Shu, Citigroup.

羅蘭舒，花旗集團。

Hi, good afternoon. My first question is a follow up for your 40 nanometer. So, Chitung, you said you had to have a 40-nanometer revenue in order to apply for the mass production for 28 nanometer in China.

嗨，下午好。我的第一個問題是關於 40 奈米的後續問題。所以，Chitung，你說你必須有40奈米的收入才能申請28奈米在中國的量產。

So question is, how much revenue you have to generate for 40 nanometer before you are about to apply for the application to mass production of 28 nanometer?

那麼問題來了，你要在40奈米上創造多少收入，才能申請28奈米的量產呢？

There's no black and white rules on that. As long as we start production with revenue recognition, we should be able to apply and it's up to the regulator to decide --

對此沒有黑白規則。只要我們開始生產並確認收入，我們就應該能夠申請，這由監管機構決定—

Okay.

好的。

-- when they will grant us their approval. Of course it is to our plan that we will do it as soon as we can.

——他們什麼時候會批准我們。當然，根據我們的計劃，我們會盡快完成。

Okay, so does pilot -- revenue from pilot line -- pilot production count?

好的，那麼試生產－試產線的收入－試生產算不算？

I really don't know and I don't want to touch this gray area. So again, it's to our benefit that we will apply as soon as we can.

我真的不知道，也不想觸及這個灰色地帶。因此，為了我們的利益，我們將盡快申請。

Okay, so CEO said from first half next year you are going to start to recognize the 40-nanometer revenue. So that means that at that time you are able to apply for the application, right?

好的，CEO 說從明年上半年開始，你將開始認識到 40 納米的收入。那麼也就是說，到時候你就可以申請了，對嗎？

Yes.

是的。

Okay, thank you. And second question is for the depreciation. I think the last time you said this year the whole-year depreciation will be increased by around 20% year on year. And I just -- earlier you said now it's changed to above 15%. So I just want to clarify how much will depreciation to increase this year?

好的謝謝。第二個問題是折舊。我想你上次說今年全年折舊費年比會增加20%左右。我只是 - 之前您說過現在已更改為 15% 以上。所以我想問今年折舊會增加多少？

It will be closer to 15%. I think previously we talked about 15% to 20% and now it's more closer to 15%. Due to the later recognition of the Xiamen depreciation.

它將接近15%。我想之前我們談論的是 15% 到 20%，現在更接近 15%。由於後來承認了廈門的貶值。

Okay, yes. Okay, thank you. So it will be more close to 15%, this is the --

好吧，是的。好的謝謝。所以會更接近 15%，這是——

Yes, one-five, yes.

是的，一比五，是的。

Okay, thank you. And for your 5% quote, unquote wafer shipment increase in 4Q, how many does it come in from Xiamen fab?

好的謝謝。對於你們5%的報價，第四季未報價晶圓出貨量成長，有多少是來自廈門晶圓廠？

Xiamen has very minimum contribution in Q4. So virtually the delta is coming from the increased 8-inch loadings.

廈門在第四季的貢獻非常小。因此，實際上增量來自增加的 8 英寸負載。

Okay, yes. Okay, so it's mainly from 8-inch loading. And also last quarter you expect to recover 8-inch revenue -- wafer revenue from first half next year. And I think that you do recover from 4Q. So this is a much earlier than what you expected.

好吧，是的。好吧，所以主要是8英寸的負載。上個季度，您預計將恢復 8 吋收入——明年上半年的晶圓收入。我認為你確實從第四季度恢復過來。所以比你預期的要早得多。

So question is what's your target for this 8-inch wafer revenue recovery? Are we to go back to 2015 level or go back to the peak level maybe in 2010? Or it will be just go back to this full-loaded level, yes?

那麼問題是你們8吋晶圓收入復甦的目標是什麼？我們會回到2015年的水準還是可能在2010年回到高峰？或者它會回到這個滿載的水平，對嗎？

Well this is very difficult to predict. I think at the -- for 4Q our 8-inch wafer loading improvement is partially based upon the tradeoff of pricing. But going Q1 it will be more dominant by the seasonal pattern and of course our effort to continue to diversify our client base for 8 inch.

這很難預測。我認為，第四季度我們的 8 吋晶圓裝載量的改善部分是基於定價的權衡。但從第一季開始，季節性模式將更加主導，當然還有我們繼續努力實現 8 吋客戶群多元化的努力。

So it's -- I think it's too early to predict what the Q1 8-inch loadings will look like.

所以我認為現在預測 Q1 8 英吋裝載量會是什麼樣子還為時過早。

Okay, understood. Okay, thank you.

好的，明白了。好的謝謝。

And next one is from Rick Hsu from Daiwa Securities, please ask your question.

下一位是大和證券的Rick Hsu，請提問。

Yes, hi, good evening. I've just got one issue to clarify. I think Chitung mentioned about the insurance claim that is going to contribute to Q4 gross margins. I wonder if you also include some of the insurance claim for Q3?

是的，嗨，晚上好。我只有一個問題需要澄清。我認為 Chitung 提到了將有助於提高第四季度毛利率的保險索賠。我不知道你是否也包括了第三季的一些保險索賠？

So that's why your gross margin for Q3 was a bit higher than your original guidance?

這就是為什麼你們第三季的毛利率比最初的指導要高一點？

So Q3, yes we did have some very small amount of insurance claim. But it's kind of largely offset by the impairment loss from our solar subsidiaries. So the impact is quite minimal in third quarter.

第三季度，是的，我們確實有一些非常少量的保險索賠。但這在很大程度上被我們太陽能子公司的減損損失所抵消。因此，第三季的影響非常小。

Okay, so the majority of the benefit of the insurance claim should be contributing to your Q4 margin guidance, am I right?

好的，所以保險索賠的大部分好處應該有助於您的第四季度保證金指導，對嗎？

Yes.

是的。

Okay, yes, that's all I had, thank you so much.

好的，是的，這就是我所擁有的，非常感謝。

Thanks.

謝謝。

Steven Pelayo, HSBC.

史蒂文‧佩拉約，匯豐銀行。

Yes, I'm sorry if you guys answered this specifically. But in your presentation you talk about Asia revenues I think being 45% of the total. Maybe you could talk a little bit about China specifically?

是的，如果你們具體回答這個問題，我很抱歉。但在您的演講中，您談到了亞洲收入，我認為佔總收入的 45%。也許你可以具體談談中國？

What percentage of revenues are they this year and what do you think they're going to be maybe next year? I mean we've got companies like SMIC who I think is growing more than 20% for their Chinese revenues. So could you take a bit about China, and specifically in what it means for UMC this year and next?

今年他們佔收入的百分比是多少？您認為明年可能會是多少？我的意思是，我們有像中芯國際這樣的公司，我認為它們在中國的收入成長了 20% 以上。那麼能否簡單介紹一下中國，特別是它對今年和明年的聯華電子意味著什麼？

The China revenue contribution in this year is around 5% to 10%.

今年中國的收入貢獻約為5%至10%。

And what do you think a year from today? Do you think that this can double? I have no idea.

一年後你覺得怎麼樣？你認為這個可以加倍嗎？我不知道。

This will increase but we don't have -- it's still too early to comment on that.

這個數字將會增加，但我們還沒有——現在對此發表評論還為時過早。

Okay, 5% to 10% today though. Alright and then my next question was, you didn't want to comment on depreciation and the impacts next year yet. But you said it would step up with the Xiamen fab.

好吧，今天是 5% 到 10%。好吧，我的下一個問題是，您還不想評論明年的折舊和影響。但你說它將加強廈門晶圓廠的建設。

So I guess I'm trying to figure out that if in the fourth quarter excluding insurance settlements you have a high teens gross margin. If in the first quarter next year you have a seasonal revenue decline plus this depreciation uptick. I guess what are we talking about the headwinds to gross margin in the first quarter next year then?

所以我想我想弄清楚，在第四季度，不包括保險結算，你的毛利率是否會達到十幾歲。如果明年第一季您的營收出現季節性下降，加上折舊上升。我想我們在談論明年第一季毛利率的不利因素是什麼？

Yes.

是的。

Could they be below 15%? If I just threw out a number?

他們會低於15%嗎？如果我只是丟掉一個數字呢？

Yes, we do not have full visibility on the first quarter 2017 for the moment. Though it is expected that some impact will continue into the first quarter 2017. However, we are working very hard on improving our ASP through our product mix optimization and many costs -- our cost-reduction activities.

是的，我們目前無法全面了解 2017 年第一季的情況。儘管預計一些影響將持續到 2017 年第一季。但是，我們正在非常努力地透過我們的產品組合優化和許多成本（我們的成本削減活動）來提高我們的平均售價。

Well maybe I could ask the question the other way. From a financial side just the depreciation impact. You didn't want to talk about it for the full-year 2017 but what about just in the first quarter? Do you think quarterly depreciation increases by -- I don't know -- 5%, 10% quarter on quarter? Or more?

好吧，也許我可以用另一種方​​式問這個問題。從財務方面來看，只是貶值的影響。您不想談論 2017 年全年的情況，但僅談論第一季呢？您認為季度折舊率是否會較上季增加—我不知道—5%、10%？或更多？

Well we really don't have the numbers. It's not like we don't want to talk about it. And the CapEx number hasn't really been firmed up for 2017. And the schedule of the CapEx also has impact on the depreciation.

好吧，我們確實沒有數字。我們並不是不想談論它。 2017 年的資本支出數字尚未真正確定。資本支出的時間表也對折舊產生影響。

All I can say is Xiamen will see a significant jump because of the volume production and Taiwan part, the Tainan side will stay flattish.

我只能說，由於產量的原因，廈門將大幅成長，而台灣部分，台南部分將保持持平。

Okay, great, thank you.

好的，太好了，謝謝。

And the next question is from Charlie Chan from Morgan Stanley, please ask the question.

下一個問題是來自摩根士丹利的Charlie Chan，請問問題。

Thanks for taking my question again. So I'd like to clarify my previous question; High-K/Metal Gate versus poly-SiON mix questions.

感謝您再次提出我的問題。所以我想澄清我之前的問題；高 K/金屬閘極與多晶矽混合問題。

So first of all, was your 28-nanometer capacity already 30,000 wafers per month in 3Q?

那麼首先，你們的28奈米產能在第三季已經達到每月3萬片晶圓了嗎？

In the end of this year.

今年年底。

Oh, okay. Yes, because it seems to be your mix changed a lot. So I want to make sure whether into the fourth quarter, you are converting poly-SiON into High-K/Metal Gate or you maintain the same poly-SiON capacity? Just additional capacity all goes to High-K/Metal Gate? That's basically my question.

哦好的。是的，因為看來你的組合改變了很多。所以我想確定到第四季度，你們是否將多晶矽轉換為高 K/金屬柵，或保持相同的多晶矽產能？只是額外的容量全部用於 High-K/Metal Gate？這基本上就是我的問題。

Yes. The additional 28-nanometer capacities all go to the High-K/Metal Gate.

是的。額外的 28 奈米容量全部用於 High-K/金屬閘極。

I see. So how many wafers per month it would be for High-K/Metal Gate, the additional capacity?

我懂了。那麼 High-K/Metal Gate 每個月需要多少個晶圓，也就是額外產能？

In the fourth quarter?

第四季？

Yes.

是的。

It would be only a slight increase to the fourth quarter on High-K/Metal Gate version.

High-K/Metal Gate 版本僅比第四季略有成長。

Okay. Yes, so it sounds to me that your utilization rate for High-K/Metal Gate could be very low in third quarter. Is that the right impression?

好的。是的，所以在我看來，你們的 High-K/Metal Gate 在第三季的使用率可能會非常低。這是正確的印象嗎？

Yes, I think the utilization rate on High-K is lower than poly-SiON. For poly-SiON it's actually over 100% today and still looks very tight in the following quarter. However, we do have flexibilities in between High-K/Metal Gate versus poly-SiON. So some of the capacity can support each other and vice versa. And that's the situation for High-K as well as poly-SiON.

是的，我認為High-K的利用率低於poly-SiON。對於多晶矽來說，今天實際上已經超過 100%，並且在下個季度看起來仍然非常緊張。然而，我們確實在高 K/金屬閘極與多晶矽之間具有靈活性。所以有些能力可以互相支持，反之亦然。這就是 High-K 和多晶矽的情況。

So to put it into perspective, since your (inaudible) more High-K/Metal Gate capacity into fourth quarter. So what is changing? Meaning do you really see High-K/Metal Gates' commercial demand significantly ramp into fourth quarter?

因此，從長遠來看，自從您的（聽不清楚）更多的 High-K/Metal Gate 產能進入第四季度以來。那麼什麼正在改變呢？這意味著您真的看到 High-K/Metal Gates 的商業需求在第四季度大幅上升嗎？

That is our -- the plan in the beginning of this year.

這是我們今年年初的計畫。

Okay.

好的。

So we are still targeting the -- according to our customer engagement, we are still looking very promising on the High-K/Metal Gate versions utilization in the coming quarters.

因此，我們的目標仍然是——根據我們的客戶參與度，我們對未來幾季的 High-K/Metal Gate 版本的利用率仍然非常有希望。

Not in the short-term quarters, but in the coming quarters, improving on High-K/Metal Gate version's utilization.

不是在短期幾個季度，而是在未來幾個季度，提高 High-K/Metal Gate 版本的使用率。

Okay, I see. Yes, so lastly, you also mentioned that there could be some ASP trade-off for 28 nanometer in fourth quarter. Did I interpret it right? Meaning are you lower wafer price to boost up the shipments?

好吧，我明白了。是的，最後，您還提到第四季可能會對 28 奈米進行一些 ASP 權衡。我解釋得對嗎？意思是說你們會降低晶圓價格以增加出貨量嗎？

No, we explained that that is mainly because of [our ancient] fully-loaded and with some -- yes, because the ASP is lower.

不，我們解釋說，這主要是因為[我們古老的]滿載和一些 - 是的，因為 ASP 較低。

Okay, so it's the product mix, okay I got it, thank you.

好的，這是產品組合，好的，我明白了，謝謝。

Ladies and gentlemen, we are running out of time so we are taking the last question. Sebastian Hou, CLSA.

女士們、先生們，我們的時間不多了，所以我們來回答最後一個問題。賽巴斯蒂安·侯，里昂證券。

Thank you for squeezing me in. Just one follow up. Because Chitung, earlier you answered another analyst's questions and you mentioned about the fourth quarter, you see better 8-inch utilization rate is due to pricing.

謝謝你讓我加入。只需一個後續行動。因為Chitung，您早些時候回答了另一位分析師的問題，並提到了第四季度，您認為8英寸利用率更好是由於定價。

I'm not sure if I hear it correctly. So I wonder, is it because you lower the price so you gain share in the fourth quarter, so that's why you can't have 100% utilization rate?

我不確定我聽得是否正確。所以我想，是不是因為你降低了價格，所以你在第四季度獲得了份額，所以你不能達到100%的利用率？

Partially, yes.

部分是的。

Okay, so you are gaining share in 4Q from the other Taiwanese foundry or Chinese foundry?

好的，那麼您正在從其他台灣代工廠或中國代工廠獲得第四季度的份額嗎？

We certainly had four loadings in Q4 at the expense of some lower pricing for certain special orders.

我們在第四季度確實有四次裝載，但代價是某些特殊訂單的價格較低。

Okay, and you expect because [it's a bigger share gain], so you see that in first quarter next year will come back to the normal seasonality?

好的，您預計因為[這是一個更大的份額增益]，所以您認為明年第一季將恢復正常的季節性？

Yes, that's our plan, yes.

是的，這就是我們的計劃，是的。

Okay, thank you.

好的謝謝。

Thanks.

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 today. We appreciate your questions. As always, if you have any additional follow-up questions, please feel free to contact UMC at ir@umc.com. Have a good day.

感謝大家今天加入我們。我們感謝您的提問。與往常一樣，如果您有任何其他後續問題，請隨時透過 ir@umc.com 聯絡 UMC。祝你有美好的一天。

Thank you, ladies and gentlemen. That concludes our conference for third quarter 2016. We 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, investors, events section.

謝謝你們，女士們、先生們。我們的 2016 年第三季會議到此結束。我們感謝您參加 UMC 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。

You may now disconnect. Good bye.

您現在可以斷開連線。再見。