聯華電子 (UMC) 2016 Q4 法說會逐字稿

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

歡迎大家參加聯電 2016 年第四季財報電話會議。

(Operator instructions).

（操作員說明）。

Please visit our website, www.umc.com under the investor relations, investors, events section.

請造訪我們的網站 www.umc.com 的投資者關係、投資者、活動部分。

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

現在我想介紹一下聯華電子投資者關係主管黃博文先生。

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 fourth quarter of 2016.

謝謝您，歡迎參加聯華電子 2016 年第四季的電話會議。

I'm joined by Mr. Po-Wen Yen, the CEO of UMC; and Mr. Chitung Liu, the CFO of UMC.

聯華電子執行長顏博文先生也出席了會議；以及聯華電子財務長劉啟東先生。

In a moment, we will hear our CFO present the fourth-quarter financial results, followed by our CEO's key message to address UMC's forecasts, and the first quarter of 2017 guidance.

稍後，我們將聽到我們的財務長介紹第四季度的財務業績，然後是我們的執行長針對聯華電子的預測發表的關鍵訊息，以及 2017 年第一季度的指導。

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

一旦我們的執行長和財務長完成發言，就會舉行問答環節。

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

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。

During this conference, we may make forward-looking statements based on management's current expectations and beliefs.

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。

These forward-looking statements are subject to a number of risks and uncertainties that could cause actual results to differ materially, including risks that may be beyond the Company's control.

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

對於這些風險，請參閱 UMC 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 our fourth-quarter 2016 business results.

現在我想介紹聯電財務長劉啟東先生來討論我們2016年第四季的業績。

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

謝謝鮑文，我想瀏覽 2016 年第四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 fourth quarter of 2016, consolidated revenue was TWD38.31 billion, with gross margin at 22.9%.

從第3頁開始，2016年第四季合併營收為新台幣383.1億元，毛利率為22.9%。

The net income attributable to the stockholder of the parent was TWD2.55 billion, and earnings per share for this quarter were TWD0.21.

歸屬於母公司股東的淨利為新台幣25.5億元，本季每股收益為新台幣0.21元。

For operating results summary, our capacity utilization rate in Q4 last year was 94%, about 5 percentage point improvement from the previous quarter, and for cash on hand is around TWD57.5 billion.

經營績效總結來看，去年第四季產能利用率為94%，較上季提升約5個百分點，庫存現金約為新台幣575億元。

Because of the higher shipments, revenue grow by about 0.4%, compared to third quarter 2016, to TWD38.3 billion.

由於出貨量增加，營收較 2016 年第三季成長約 0.4%，達到 383 億新台幣。

Gross margin was 22.9%, about 5.5% improvement from third quarter of 2016.

毛利率為22.9%，較2016年第三季提高約5.5%。

Net income is TWD449 million due to higher non-operating losses, which we will go into detail later, and the net income attributable to stockholder of the parent was TWD2.54 billion.

由於營業外虧損增加，淨利為新台幣 4.49 億元（稍後詳細介紹），歸屬於母公司股東的淨利為新台幣 25.4 億元。

EPS was TWD0.21.

EPS為新台幣0.21。

For full year, revenues show about 2.1% year-over-year growth toTWD147.87 billion, and gross margin percentage was 20.5%, or TWD30.3 billion.

全年營收較去年同期成長約2.1%至1,478.7億元新台幣，毛利率為20.5%，即303億元新台幣。

Operating income is about 4.2%, or TWD6.2 billion, and net income attributable to stockholder of the parent was TWD8.3 billion, or 38% year-over-year decline.

營業收入約4.2%，即新台幣62億元，歸屬母公司股東淨利為新台幣83億元，較去年同期下降38%。

EPS for the full year is TWD0.68.

全年EPS為TWD0.68。

Other than our TWD57.5 billion in cash, our total assets also reached TWD386 billion.

除了575億新台幣的現金外，我們的總資產也達到了3,860億新台幣。

As for operating segments, most of our profit comes from wafer fabrication in Q4 2016.

至於營運部門，我們的大部分利潤來自2016年第四季的晶圓製造。

The losses come from new businesses has come down, and become quite insignificant on a consolidated basis.

新業務帶來的損失已經減少，並且在合併基礎上變得相當微不足道。

ASP shows a few percentage decline in Q4.

第四季平均售價出現了幾個百分比的下降。

For revenue breakdown, Asia go up to about 45% in Q4, and North America declined by 4 percentage points to 48%.

就營收細分而言，亞洲第四季成長約 45%，北美下降 4 個百分點至 48%。

Europe and Japan remain unchanged.

歐洲和日本保持不變。

For the full year, we also see a decline in Europe and Japan business unit, and Asia continued to grow to 44%, and North America remained our largest market with 49% of our revenue.

全年來看，我們也看到歐洲和日本業務部門下降，亞洲持續成長至44%，北美仍然是我們最大的市場，占我們收入的49%。

IDM remained unchanged for 7% for Q4 over Q3 in 2016, but the full year has shown a decline from 12% in 20115 to 8% in 2016.

IDM第四季與2016年第三季相比維持7%不變，但全年從20115年的12%下降到2016年的8%。

In terms of segment breakdown, consumer is unchanged.

從細分來看，消費者沒有變化。

Communications still remains around 53% also, and computer with 13%.

通訊仍保持在 53% 左右，電腦佔 13%。

For the full year, it doesn't really change much compared to 2015, with communication accounting for 53% of our total revenue.

從全年來看，與2015年相比並沒有太大變化，通訊占我們總收入的53%。

28 nanometer set the record in Q4 of 2016 with 22% of our total revenue, and for 40-nanometer revenue and below accounted for 48% of our total Q4 revenue.

28奈米在2016年第四季創造了記錄，占我們總收入的22%，40奈米及以下收入占我們第四季總收入的48%。

For the full year, 28 nanometer showed quite an increase, from 10% in 2015 to 17% in 2016.

全年來看，28奈米呈現相當大的成長，從2015年的10%成長到2016年的17%。

For 40 nanometer, the percentage has also increased, from 24% to 27%.

對於 40 奈米，這一比例也有所增加，從 24% 增加到 27%。

We will see some capacity decline due to annual maintenance in Q1 2017, but we continue to invest in our leading-edge capacity for both 12A, 12i as well as 12X in Xiamen, China.

由於 2017 年第一季的年度維護，我們的產能將有所下降，但我們將繼續投資於中國廈門的 12A、12i 和 12X 的領先產能。

We budget around TWD2 billion CapEx for 2017.

2017 年我們的資本支出預算約為 20 億新台幣。

The majority will be on leading edge capacity.

大部分將採用前沿產能。

So that above is a summary of UMC's results for Q4 2016.

以上是聯華電子 2016 年第四季業績的摘要。

More details are available in the report, which has been posted on our website.

更多詳細資訊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.

我現在將電話轉給聯華電子執行長顏先生。

Thank you, Chitung.

謝謝你，吉東。

Hello, everyone.

大家好。

I am glad to update everyone on UMC's fourth-quarter operating results.

我很高興向大家介紹聯電第四季的經營業績。

In the fourth quarter of 2016, UMC's revenue from foundry operations was TWD38.22 billion.

2016年第4季，聯華電子代工業務營收為新台幣382.2億元。

The overall capacity utilization reached 94%, bringing wafer shipments to 1.66 million 8-inch equivalent wafers.

整體產能利用率達94%，晶圓出貨量達166萬片8吋當量晶圓。

Operating margin was 6.3%.

營業利益率為 6.3%。

During the quarter, our 28-nanometer and 40-nanometer utilization rate continued to exceed 90%, while strength in 8-inch consumer and communication demand raised 8-inch fab utilization to nearly 100%.

本季度，我們的28奈米和40奈米利用率持續超過90%，而8吋消費和通訊需求的強勁使8吋晶圓廠利用率接近100%。

We also realized a noteworthy milestone in November, with the grand opening of our 300-millimeter Fab 12Xin Xiamen, China, which began shipping 40-nanometer consumer -- customer wafers just 20 months after the March 1, 2015 ground breaking.

我們也在11 月實現了一個值得注意的里程碑，中國廈門12Xin 300 毫米晶圓廠盛大開業，該工廠在2015 年3 月1 日破土動工後僅20 個月就開始發貨40 奈米消費級晶圓。

This site will ideally position UMC to capitalize on the vast business opportunities within China's semiconductor market, while bringing us closer to our Chinese customers, where our team can provide superior technical and manufacturing services, and more efficiently bring new tape outs into production.

該基地將使聯華電子能夠充分利用中國半導體市場的巨大商機，同時拉近我們與中國客戶的距離，我們的團隊可以提供卓越的技術和製造服務，並更有效地將新的流片投入生產。

With regard to our advanced 14-nanometer technology, we have recently made substantial progress for this advanced node.

關於我們先進的14奈米技術，我們最近在這個先進節點上取得了實質進展。

Following intensive engineering activities with our customers, UMC's 14-nanometer transistor performance has delivered speed and leakage results which are comparable with industry's 14-nanometer standards.

經過與客戶的密集工程活動，UMC 的 14 奈米電晶體性能提供了可與業界 14 奈米標準相媲美的速度和洩漏結果。

Our yields have fulfilled customer requirements, and we anticipate 14-nanometer wafer shipments to commence in first quarter 2017, highlighting our determined efforts to reach this important milestone.

我們的良率已滿足客戶要求，我們預計 14 奈米晶圓出貨將於 2017 年第一季開始，突顯我們為實現這一重要里程碑所做的堅定努力。

Looking to the first quarter of 2017, as we enter early year seasonality, we expect a sequential decrease in our foundry revenue.

展望 2017 年第一季度，隨著進入年初季節性，我們預計代工收入將季減。

For full-year 2017, UMC will continue to work towards a year of growth and prosperity.

2017年全年，聯電將繼續努力邁向成長和繁榮的一年。

Our fundamental 28-nanometer process technology and knowhow will enable our team to develop new manufacturing solutions on logic and specialty platforms.

我們的基本 28 奈米製程技術和專業知識將使我們的團隊能夠在邏輯和專業平台上開發新的製造解決方案。

We will also expand 300-millimeter capacity at Fab 12X to address growing customer wafer demand, increase our foundry market share, and elevate the competitiveness of our foundry services.

我們也將擴大Fab 12X的300毫米產能，以滿足客戶不斷增長的晶圓需求，增加我們的代工市場份額，並提升我們代工服務的競爭力。

We believe these efforts will position UMC to capture the next wave of growth opportunities.

我們相信這些努力將使聯電能夠抓住下一波成長機會。

Now, 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)

（以中文發言）

Now I have finished my remarks, and let me go over the first quarter 2017 items.

現在我的發言結束了，我來回顧一下2017年第一季的情況。

Our shipments will show a decrease of approximately 1%.

我們的出貨量將下降約 1%。

The ASP, in NT dollar, will show a decrease by approximately 3%.

以新台幣計算的平均售價將下降約3%。

UMC gross profit margin will be in the mid-teens of percentage point range.

聯華電子的毛利率將在百分之十左右。

The capacity utilization rate will be approximately 90%.

產能利用率約90%。

Our foundry CapEx for 2017 will be $2.0 billion.

我們 2017 年的代工資本支出將為 20 億美元。

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）。

The first question is from Randy ss from Credit Suisse.

第一個問題來自瑞士信貸銀行的 Randy ss。

Please ask your question.

請提出你的問題。

Okay, yes.

好吧，是的。

Thanks for that.

感謝那。

Good evening.

晚安.

I wanted to ask the first question about the CapEx $2 billion budget.

我想問第一個問題，關於 20 億美元的資本支出預算。

If you could talk about how much capacity you plan to ramp at your China, the Fab 12X, and then also within that, how -- for total, how much you expect 28-nanometer capacity.

如果您能談談您計劃在中國 Fab 12X 增加多少產能，然後在此範圍內，您預計 28 奈米產能將如何增加。

If you could give where that 28 capacity is now, and then your plans to ramp additional 28 capacity through the year.

如果您能給出 28 個產能現在的情況，那麼您計劃在今年增加 28 個產能。

Yes, our CapEx for the China -- this many is about 50% of total CapEx for 2017, and our China 12X Fab capacity will increase from 3,000 wafers per month up to 11,000 wafers per month.

是的，我們在中國的資本支出約佔 2017 年總資本支出的 50%，我們中國 12X 晶圓廠的產能將從每月 3,000 片晶圓增加到每月 11,000 片晶圓。

We have a CapEx allocation on the 28-nanometer expansion at our 12A, our Tainan, Taiwan will increase from 29,000 wafers per month to 35,000 wafers per month.

我們對台灣台南 12A 工廠的 28 奈米擴建進行了資本支出分配，產能將從每月 29,000 片晶圓增加到每月 35,000 片晶圓。

Okay, great.

好的，太好了。

And the second question, I wanted to ask about the first quarter sales and gross margins.

第二個問題，我想問第一季的銷售額和毛利率。

First, if you could talk about the sales.

首先，您能否談談銷售情況。

It's holding up shipments relative to your peers.

與同行相比，它阻礙了出貨量。

Could you talk, maybe, by application, how the applications are performing in 8-inch versus 12-inch, but then also on gross margin?

您能否按應用談談這些應用在 8 英寸與 12 英寸上的表現如何，以及毛利率如何？

It seems like the decline's a bit more than normal, to decline to mid-teens.

下降幅度似乎比正常情況大一些，下降到十幾歲左右。

So the factors -- if it's the ASP reset, beginning of the year, or another factor on the gross margin.

所以這些因素——是否是平均售價重置、年初或其他影響毛利率的因素。

Our outlook on the first quarter 2017 by application, on the communication and computer, we have a few percentage drop, compared to Q4 last year.

我們對 2017 年第一季通訊和電腦應用領域的展望與去年第四季相比有幾個百分比的下降。

Consumer will increase a few percentage points.

消費者將增加幾個百分點。

Okay.

好的。

And on the consumer, what's driving the -- is there certain applications driving consumer to grow, or if first quarter's normal seasonally down, or fewer working days?

對於消費者來說，是什麼推動了——是否有某些應用程式推動消費者成長，或者第一季是否正常季節性下降，或者工作日減少？

Yes, we see that the micro consumer units have a stronger demand on Q1 2017.

是的，我們看到微型消費單位在 2017 年第一季有更強的需求。

Okay.

好的。

And then if you could talk about the gross margin, what was the factor to guide down to mid-teens, whether it's ASP mix or another factor?

然後，如果您可以談論毛利率，那麼是什麼因素導致毛利率下降到十幾歲左右，無論是平均售價還是其他因素？

Yes.

是的。

ASP definitely is a factor.

ASP 絕對是一個因素。

We have a lower utilization rate for 28 nanometer in quarter 1, which results in a lower blended ASP for the first quarter.

第一季 28 奈米的利用率較低，這導致第一季的混合平均售價較低。

Also, for Q4 last year, we have some insurance claim to help our overall gross margin, and insurance claim in Q4 last year was over TWD1 billion.

此外，去年第四季度，我們有一些保險索賠來幫助我們的整體毛利率，去年第四季度的保險索賠超過 10 億新台幣。

So that also raised the gross margin in Q4 last year.

這也提高了去年第四季的毛利率。

Okay.

好的。

And the last question, the non-operating loss.

最後一個問題，營業外損失。

If you could go through -- I think you disclosed part of it was a one-time -- just the couple of non-operating charges that you took, and if you expect a kind of back to normal breakeven as we go into first quarter.

如果您能完成 - 我認為您披露了其中一部分是一次性的 - 只是您承擔的幾項非營運費用，並且您是否期望在我們進入第一季時恢復到正常的盈虧平衡。

Yes, for Q4 there were a few one-off items, and also some short-term items, other than the one we disclosed which is a solar farm invested by our investment company, there's one-time impairment loss, around TWD600 million.

是的，第四季度有一些一次性項目，也有一些短期項目，除了我們揭露的我們投資公司投資的太陽能發電場之外，還有一次性減損損失，大約是新台幣6億。

Also, we have higher insurance expenses to come in from our 12X, which in the beginning is highly geared, before more capital will be put in.

此外，我們的 12X 保險費用較高，在投入更多資本之前，該保險一開始的槓桿率很高。

We also encounter some ForEx losses because of the weakness in RMB, and they also have no US-denominate revenue to offset the weakness in RMB.

由於人民幣疲軟，我們也遇到了一些外匯損失，而且他們也沒有以美元計價的收入來抵消人民幣的疲軟。

So the situation should improve, along with more investor capital in Xiamen as well as in creating US-denominate revenue.

因此，隨著廈門的投資者資本增加以及創造以美元計價的收入，情況應該會有所改善。

Okay, and you expect to be -- so we could still have some losses, where we get back to normal, or near breakeven, looking forward?

好吧，你預計 - 所以我們仍然可能會遭受一些損失，我們會恢復正常，或接近盈虧平衡，期待嗎？

I think our goal is to try to manage to a more breakeven level, but it also highly depends upon the level of stock market, which gives us some room for disposal gains.

我認為我們的目標是努力達到更高的損益平衡水平，但這也很大程度上取決於股市的水平，這給了我們一些處置收益的空間。

Okay, all right.

好吧，好吧。

Thanks a lot, guys.

非常感謝，夥計們。

Thanks.

謝謝。

And the next question is from Michael Chou, from Deutsche Bank.

下一個問題來自德意志銀行的 Michael Chou。

Please ask your question.

請提出你的問題。

Hi, good evening.

嗨，晚上好。

Two questions.

兩個問題。

One is when would you see your Xiamen to enter 28-nanometer mass production?

一是你們廈門什麼時候能進入28奈米量產？

Currently, they are only planned for 40-nanometer production, and we will apply to Taiwan regulators for approval to initiate 28-nanometer production once our [14]-nanometer starts shipment in Taiwan.

目前，他們只計劃進行40納米生產，一旦我們的[14]納米開始在台灣發貨，我們將向台灣監管機構申請批准啟動28納米生產。

Okay, so do you have a rough schedule?

好的，那你有一個大概的時間表嗎？

It could be the first half of 2018, or even later?

可能是2018年上半年，甚至更晚？

Of course, it's to our interests to try to expedite the whole process, but again it's really up to the regulator in Taiwan.

當然，嘗試加快整個過程符合我們的利益，但這實際上取決於台灣的監管機構。

Sure, okay.

當然可以。

Second question.

第二個問題。

Do you have any color for your 28-nanometer sales portion by the end of this year?

到今年年底，你們的 28 奈米銷售部分有什麼顏色嗎？

We -- you are asking for the full-year average?

我們－您要的是全年平均嗎？

Full-year average is fine, or end of this year.

全年平均或今年年底的水平都不錯。

No, we don't have -- we don't have exact numbers for now.

不，我們目前沒有確切的數字。

We are happy -- yes?

我們很高興——是嗎？

Can we say your sales portion will still be higher than last year, or you think that the sales portion will drop this year?

我們可以說你們的銷售份額仍然會高於去年，或者你認為今年的銷售份額會下降？

We believe, in the second half -- end of -- the second half, especially the Q4 this year, we believe we will achieve more than 20% --

我們相信，在下半年——年底——下半年，特別是今年第四季度，我們相信我們將實現20%以上——

Okay.

好的。

-- than this year, coming from 28 nanometer.

——比今年，來自28納米。

Okay.

好的。

A follow-up question is can you give some color for the sales portion between poly/SiON and High-K metal gate in 28 nanometer this year and last year?

後續問題是，您能否透露今年和去年 28 奈米中 Poly/SiON 和 High-K 金屬閘極之間的銷售部分？

In last year, we have about equivalent share between the MEA -- High-K metal gate and poly/SiON, and this year it will change.

去年，MEA（高 K 金屬閘極）和多晶矽/SiON 之間的份額大致相當，今年情況將會改變。

It will change quarter, very, very much quarter by quarter, and we still pushing to have higher revenue contribution from High-K metal gate.

它將每個季度都發生變化，每個季度都會發生很大的變化，我們仍在努力提高高 K 金屬閘極的收入貢獻。

So, can we say you should have a higher High-K metal gate sales portion versus poly/SiON this year?

那麼，我們是否可以說，今年高 K 金屬閘極的銷售份額應該高於多晶矽/SiON？

I mean, compared to 2016.

我的意思是，與 2016 年相比。

2016, you mentioned it's 50-50, so can we say you should have a higher High-K metal gate sales portion by the end of this year, or the whole year as well?

2016年，您提到是50-50，那麼我們是否可以說您應該在今年年底或全年擁有更高的High-K金屬閘極銷售份額？

We don't have exact numbers for now, but I would say for first half, poly/SiON -- 28 poly/SiON will have higher revenue --

我們目前沒有確切的數字，但我想說，上半年，多晶矽/二氧化矽——28 多晶矽/二氧化矽將有更高的收入——

Sure.

當然。

-- than our High-K metal gate.

-- 比我們的高 K 金屬閘極。

But the second half, we are expecting High-K metal gate will become the strongest revenue contribution.

但下半年，我們預計High-K金屬柵將成為最強勁的營收貢獻。

Okay.

好的。

So can we say second half this year, we should see High-K metal gate to exceed poly/SiON sales portion?

那麼我們是否可以說，今年下半年，我們應該會看到 High-K 金屬閘極的銷售份額超過 Poly/SiON？

We are targeting on that.

我們的目標就是這個。

Okay, sure.

好吧，當然。

Thank you.

謝謝。

Back to the queue.

回到隊列。

And the next one is from Donald Lu, from Goldman Sachs.

下一位來自高盛的唐納德·盧 (Donald Lu)。

Please ask your question.

請提出你的問題。

Hi, good afternoon.

嗨，下午好。

My first question is on 40 nanometer.

我的第一個問題是關於 40 奈米的。

I see the percentage of 40-nanometer revenue has not increased, but you are investing in Xiamen.

我看40奈米的營收比例沒有增加，但你在廈門投資。

So what's the projection for the Xiamen 40-nanometer revenue for this year?

那麼今年廈門40奈米的營收預測是怎麼樣的呢？

That's my first question.

這是我的第一個問題。

Second question is on ASP.

第二個問題是關於ASP的。

In Q1, I think, Chitung commented 28-nanometer revenue might decline a little bit, but why is it declining 3%?

在第一季度，我認為Chitung評論28奈米收入可能會下降一點，但為什麼會下降3%？

That's quite significant.

這是相當有意義的。

Is there more-than-expected pricing pressure on 8-inch or 12-inch?

8吋或12吋的價格壓力是否超出預期？

Thank you.

謝謝。

Allow me to take the first question.

請容許我回答第一個問題。

You mentioned about the Xiamen -- yes, we are now ramping the 40 nanometer products -- customers' wafers in the Xiamen fab, and as Chitung just explained, we will follow the Taiwan government (inaudible) technology restriction.

您提到了廈門——是的，我們現在正在廈門晶圓廠生產 40 奈米產品——客戶的晶圓，正如 Chitung 剛才解釋的那樣，我們將遵循台灣政府（聽不清楚）的技術限制。

So after we have the 40-nanometer revenue come in from customers' wafers, and then we will ramp our 28-nanometer in this Xiamen fab.

因此，當我們從客戶的晶圓中獲得 40 奈米收入後，我們將在廈門晶圓廠增加 28 奈米的產量。

But, why don't, in Q4, we see the 28 -- 40-nanometer revenue actually has not -- has been flat, almost, with Q3.

但是，為什麼不呢，在第四季度，我們看到 28 奈米——40 奈米的收入實際上並沒有——幾乎與第三季度持平。

So Donald, the Xiamen fab only turned mass-production, officially, starting from the month of December in 2016.

所以唐納德廈門晶圓廠是從2016年12月開始正式量產的。

So they only have, nearly, almost no contribution from a wafer point of view.

因此，從晶圓的角度來看，他們幾乎沒有任何貢獻。

Most of the wafers will only start coming in Q1 this year, and also very minor.

大多數晶圓將在今年第一季開始供貨，而且數量也很少。

We are talking about a few thousand wafers only, so very minor.

我們談論的只是幾千個晶圓，所以非常小。

Okay.

好的。

And --

和 -

ASP, you are referring to our 3% decline.

ASP，你指的是我們3%的下降。

I didn't say that 28 nanometer will decline a little bit.

我並沒有說28奈米會下降一點。

I said 28 nanometer will decline in Q1 as a percentage of revenue, and I think that's probably the main reason for the whole 3% blended ASP decline.

我說過 28 奈米佔收入的百分比將在第一季下降，我認為這可能是混合平均售價下降 3% 的主要原因。

Okay, so the 3% is because 28-nanometer revenue, the percentage in the mix will decline in Q1, is the main reason?

好的，所以 3% 是因為 28 奈米收入，第一季混合比例會下降，這是主要原因嗎？

Mostly, mostly.

大部分，大部分。

Of course, there is some price adjustment as well for the beginning of the year as always.

當然，年初也會一如既往地進行一些價格調整。

But by -- the overall pricing pressure become a little bit more than last year?

但到了——整體定價壓力會比去年大一點嗎？

Or is that similar like (multiple speakers)?

或類似（多個揚聲器）？

As a matter of fact, Q4 ASP, if you are aware, we already show a few percentage decline in Q4 alone, last year.

事實上，如果您知道的話，第四季度的平均售價就已經顯示出僅去年第四季就出現了一些百分比的下降。

That's mainly attributed to the (inaudible) churn-out, pricing competition.

這主要歸因於（聽不清楚）大量生產和定價競爭。

And for Q1 this year, it's mainly due to the sales mix of 28-nanometer revenue decline.

而今年第一季，主要是因為28奈米營收下滑的銷售組合。

Okay.

好的。

Thank you.

謝謝。

Thank you.

謝謝。

And the next one is from Roland Shu from Citigroup.

下一位來自花旗集團的 Roland Shu。

Go ahead, please.

請繼續。

Hi, good evening.

嗨，晚上好。

Thanks for taking my question.

感謝您提出我的問題。

First question is for your first quarter Xiamen guidance.

第一個問題是關於廈門第一季的指導意見。

You said in your first quarter, the utilization is about 90%, which is lower than 94% in Q4 last year, and the capacity in first quarter this year would also be lower due to annual maintenance.

你們說第一季的使用率在90%左右，低於去年第四季的94%，今年第一季的產能也會因為每年的檢修而降低。

So by these two factors, how -- can you give us more color how will this first quarter Xiamen guidance only decline by 1%?

那麼，透過這兩個因素，您能給我們更多的說明嗎，廈門第一季的指導意見將如何只下降 1%？

Thank you.

謝謝。

Roland, as always, there's wafers in pipeline, and wafers out.

羅蘭一如既往，有晶圓在生產中，也有晶圓產出。

Different definitions.

不同的定義。

So we calculate loading these (inaudible) wafers in the pipeline.

因此，我們計算將這些（聽不清楚）晶圓裝載到管道中。

So some of the wafers produced last quarter will be shipped this quarter.

因此上季生產的部分晶圓將在本季出貨。

I think that's the main reason.

我認為這是主要原因。

Okay, so are these more 12-inch wafers or 8-inch wafers?

好吧，那麼這些更多的是12吋晶圓還是8吋晶圓呢？

There's no specific trend.

沒有具體的趨勢。

This is more across the board, random like, business as usual type of wafer ship, wafer out type of flat.

這是更全面、隨機的、照常類型的晶圓出貨、晶圓出貨類型的平板。

Okay, understood.

好的，明白了。

Second question is on your -- I look at your 8-inch wafer utilization, increased from 90% in Q3 to almost fully loaded in Q4.

第二個問題是關於你們的——我看看你們的 8 吋晶圓利用率，從第三季的 90% 增加到第四季幾乎滿載。

But I look at your 8-inch wafer revenue only increased by 6%.

但我看你們8吋晶圓營收只成長了6%。

So was it because ASP declined, or product mix changed, and how about the overall 8-inch wafer revenue outlook in this year?

那麼是因為ASP下降，還是產品結構變化，今年8吋晶圓整體營收前景如何？

Thank you.

謝謝。

So as I mentioned, in Q4 we saw some pricing decline, mainly due to pricing competition in the mature node, largely in the 8-inch space.

正如我所提到的，在第四季度，我們看到了一些定價下降，這主要是由於成熟節點的定價競爭，主要是在 8 英寸領域。

So yes, you are correct, pricing was quite competitive in Q4 last year for 8-inch.

所以是的，你是對的，去年第四季 8 英寸的定價相當有競爭力。

So, how about the overall 8-inch pricing competition in this year?

那麼，今年8吋整體價格競爭情況如何呢？

Q1, overall blended ASP is 3%, but the pricing is pretty much done.

第一季度，整體混合 ASP 為 3%，但定價已基本完成。

It's reached a level of plateau.

它已經達到了一個平台期。

But we don't have a full-year outlook yet.

但我們還沒有全年展望。

Okay.

好的。

But how about overall 8-inch wafer revenue for this year?

那麼今年8吋晶圓整體營收情況如何呢？

Since last year, actually your overall 8-inch wafer revenue has declined, so how do you think about this year?

從去年開始，實際上你們8吋晶圓的整體營收是下降的，那你們對今年的情況怎麼看？

I would say it would decline a little bit because of price erosion, year on year.

我想說，由於價格侵蝕，它會比去年同期略有下降。

However, we are -- the full loading on the 8-inch fab will continue to at least for the first half of this year.

然而，我們認為，至少在今年上半年，8 吋晶圓廠將繼續滿載運轉。

So we -- that would allow UMC to improve our product mix, defend our ASP -- average ASP.

因此，我們——這將使聯電能夠改善我們的產品組合，捍衛我們的 ASP——平均 ASP。

Okay, understood.

好的，明白了。

The last question is for your insurance claim in last quarter.

最後一個問題是關於您上季度的保險索賠。

What is the all in the cost-of-goods-sold line or is there any claim in the other lines, thank you?

銷售成本行中的全部金額是多少，或其他行中是否有任何索賠，謝謝？

It's all in cost of goods sold.

全部計入銷售成本。

Okay, so more than TWD1 billion was all in the cost of goods sold?

好吧，那麼超過10億新台幣都是銷售成本嗎？

Yes.

是的。

Okay, thank you.

好的謝謝。

These are all my questions.

這些都是我的問題。

Thank you very much.

非常感謝。

Thank you.

謝謝。

The next one is Rick Hsu from Daiwa Securities.

下一位是大和證券的 Rick Hsu。

Go ahead please.

請繼續。

Yes, hi, Happy New Year, Chitung and CEO and Bowen as well.

是的，嗨，新年快樂，Chitung 和執行長以及 Bowen 也是。

So my first question is can Chitung elaborate your non-op the net investment loss again.

所以我的第一個問題是Chitung能否再次詳細說明您的非操作性淨投資損失。

I think the totals are TWD1.1 billion and you mentioned about some loss from your solar farm, can you elaborate more in details?

我想總共是新台幣11億，你提到了你的太陽能發電場的一些損失，你能詳細說明一下嗎？

Yes, there are three or four major components.

是的，有三到四個主要組成部分。

The one-off part is the impairment loss coming from our solar farm investment company.

一次性部分是來自我們太陽能發電場投資公司的減損損失。

I think that's around TWD620 million in Q4 and we also have higher interest expenses because of our Xiamen fab is highly geared in the early stage of operation.

我認為第四季約為 6.2 億新台幣，而且我們的利息支出也較高，因為我們的廈門工廠在營運初期的負債比率很高。

At the same time, they also encountered foreign currency losses due to a weaker renminbi and because they don't have US-denominate revenue to offset that yet, they are currently suffering from a higher FX losses.

同時，由於人民幣疲軟，他們還遭受了外匯損失，而且由於他們還沒有以美元計價的收入來抵消這一損失，因此他們目前正遭受更高的外匯損失。

The situation for both interest expenses as well as ForEx losses should gradually improve in 2017 because of their US dollar revenue as well as of higher injected capital.

由於美元收入和注入資本增加，利息支出和外匯損失的情況在 2017 年應該會逐漸改善。

Okay, thank you, yes, that's clear.

好的，謝謝，是的，這很清楚。

Then could you give us your depreciation guidance for this year on a linearity quarter basis?

那麼您能否向我們提供今年以線性季度為基礎的折舊指引？

For last year 2016 depreciation expenses increased by a little bit more than 15% year over year with Q4 is the highest quarter.

去年2016年折舊費用年增略高於15%，其中第四季是最高季度。

For 2017, we expect to see another 5% to 10% year-over-year increase with each quarter is quite average so quite similar.

2017 年，我們預計每季的年成長率將分別為 5% 至 10%，非常平均，因此非常相似。

So we see maybe 1% or 2% increase for Q1 over Q4 last year.

因此，我們預計第一季比去年第四季可能成長 1% 或 2%。

Okay, so about 1% to 2% sequential increase in Q1 this year for your depreciation.

好的，今年第一季折舊額較上季增加約 1% 到 2%。

All right, the last question from me is, how do you see your customers' inventory levels, do you see any inventory issue in the first half or you think it's okay, pretty healthy?

好吧，我的最後一個問題是，您如何看待客戶的庫存水準？上半年您是否看到任何庫存問題，或者您認為情況還好，相當健康？

Our inventory in Q1 is pretty much flattish, yes.

是的，我們第一季的庫存幾乎持平。

We don't see any -- pretty much flat.

我們沒有看到任何東西——幾乎是平坦的。

When you say flattish inventory, that's your own inventory or your customers' inventory.

當您說庫存持平時，這是您自己的庫存或客戶的庫存。

Our own inventory, this is our inventory.

我們自己的庫存，這是我們的庫存。

What about your customers' inventory?

您客戶的庫存怎麼樣？

Do you have any idea about your customers' inventory?

您了解客戶的庫存嗎？

Also our customers they have some uncertainty.

我們的客戶也有一些不確定性。

They do not provide clear 39:02] numbers for us.

他們沒有為我們提供明確的 39:02] 數字。

All right, fair enough.

好吧，很公平。

Thank you so much, guys.

十分感謝大家。

Thank you.

謝謝。

The next question is from Steven Pelayo from HSBC.

下一個問題來自匯豐銀行的 Steven Pelayo。

Go ahead please.

請繼續。

Great, why don't we start on 14-nanometer, you talked about some wafer shipments commencing in the first quarter, maybe you could talk a little bit about the number, designs, capacity plans, and maybe revenue targets, let's say by the end of the year for 14 nanometer.

太好了，我們為什麼不從14 奈米開始，您談到了第一季開始的一些晶圓出貨量，也許您可以談談數量、設計、產能計劃，也許還有收入目標，讓我們說一下14納米將於今年底推出。

Yes, we are beginning shipping 14-nanometer -- 14 nanometer in the first half, actually in this quarter and there are more in the second quarter coming.

是的，我們在上半年開始出貨 14 奈米，實際上是在本季度，第二季度還會有更多的 14 奈米。

Our capacity for 14 will be around 2,000 wafers per month and that's our status.

我們 14 片的產能約為每月 2,000 片晶圓，這就是我們的現狀。

Do you have a target maybe by the end of the year for that capacity and maybe the revenue that potentially you could get by the end of the year in 14-nanometer?

您是否有在今年年底實現該產能的目標，以及今年年底您可能在 14 奈米技術中獲得的收入？

We don't have -- we will give you more color in the coming next -- in the investors conference call.

我們將在接下來的投資者電話會議中為您提供更多資訊。

So far, we are (multiple speakers.)

到目前為止，我們（多位發言者）

-- customers, we are test chip.

——客戶，我們是測試晶片。

For now that is our focus, to engage in more 14 potential ad0ptors.

目前我們的重點是吸引更多 14 位潛在的採納者。

I'm wondering if you could just talk a little bit -- I guess you were fairly free cash flow negative in 2016, do you think we can be above breakeven in free cash flow in 2017?

我想知道您是否可以簡單談談 - 我猜您在 2016 年的自由現金流相當為負，您認為我們 2017 年的自由現金流可以高於盈虧平衡嗎？

It depends how you look at the breakdown.

這取決於你如何看待細分。

For UMC Taiwan, yes, we are going to see positive net free cash flow for the first time in recent years.

對於台灣聯電來說，是的，我們將在近年來首次看到正的淨自由現金流。

But our JV in Xiamen still will encounter heavy investment which the negative cash flow is expected.

但我們在廈門的合資公司仍將面臨大量投資，預期現金流為負。

Okay.

好的。

Just one final question, I know you talked about 28-nanometer declining as a percentage of revenue on the first quarter, can you be a little bit more specific there, are we talking 5% decline quarter onquarter in dollars or something more significant, can you be a little bit more clear there?

最後一個問題，我知道您談到 28 奈米佔第一季收入的百分比下降，您能否更具體一點，我們是在談論以美元計算的季度環比下降 5% 還是其他更重要的情況？你能更清楚一點嗎？

In our first quarter, the revenue contribution for 28 will be at around mid-teens percentage points.

在我們的第一季度，28 的營收貢獻將在 15 個百分點左右。

Mid-teens.

十幾歲左右。

Yes.

是的。

Okay, fairly significant decline, is there any more details behind that?

好吧，下降幅度相當大，背後還有更多細節嗎？

I think in the fourth quarter it was around 22% of revenue.

我認為第四季大約佔收入的 22%。

Yes, there are some market dynamics so we -- yes, the first wave customers they are migrating to advanced nodes earlier than expected and the second wave of customers who are heavily engaged are coming later than our expectation.

是的，存在一些市場動態，所以我們 - 是的，他們遷移到高級節點的第一波客戶比預期更早，而高度參與的第二波客戶則比我們的預期晚。

So that comes off our first quarter 28-nanometer is under-loading.

因此，我們第一季 28 奈米的產能不足。

Okay, well I'm still impressed though with your offsetting it elsewhere.

好吧，雖然你在其他地方抵消了它，但我仍然印象深刻。

If 28-nanometer falls from 22% of revenues to mid-teens, what node is growing then for you to offset that in the fourth quarter -- or in the first quarter, pardon me, in the first quarter?

如果 28 奈米技術從佔收入的 22% 下降到十幾歲左右，那麼在第四季度（或者在第一季度，請原諒我，在第一季），哪個節點的成長可以抵消這一影響？

The first quarter is -- again, what is your question?

第一季是——再一次，你的問題是什麼？

Well, you just suggested that in the first quarter 2017 28-nanometer revenue would fall to the mid-teens and that is from the 22% of revenue level in the fourth quarter.

嗯，您剛剛表示，2017 年第一季 28 奈米的收入將降至 15%左右，而第四季的收入水準為 22%。

So giving your guidance for shipments it would suggest that something else is -- some other node is definitely up sequentially, so what node is strongest for you in the first quarter?

因此，給出您的出貨量指導，這表明其他一些節點肯定會按順序上升，那麼第一季哪個節點對您來說最強？

actually our 40-nanometer is still very strong, is very -- 40 is very good and our 8-inch is also good so that supports our -- the overall utilization is around 90%.

實際上我們的 40 奈米仍然非常強大，非常 - 40 非常好，我們的 8 英寸也很好，因此支持我們 - 整體利用率約為 90％。

Okay, great, thank you very much.

好的，太好了，非常感謝。

Thank you.

謝謝。

The next one is from Charlie Cheng from Morgan Stanley.

下一篇來自摩根士丹利的 Charlie Cheng。

Go ahead please.

請繼續。

Hi, thanks for taking my questions.

您好，感謝您回答我的問題。

So could you please elaborate what kind of consumer product is strong in the first quarter?

那麼您能否詳細說明第一季哪些消費品表現強勁？

I mean are those TV set-top box or anything related or we can assume it is the (inaudible)?

我的意思是那些電視機上盒或任何相關的東西，或者我們可以假設它是（聽不清楚）？

Yes, it's micro consumer units is the strongest performer in the semiconductor -- in the consumer segment.

是的，它的微型消費單位是半導體領域－消費領域中表現最強勁的。

So are those MCUs for -- what kind of consumer, is it home appliances or toys or what kind of consumers?

那麼這些 MCU 是針對什麼樣的消費者，是家用電器還是玩具，或是什麼樣的消費者呢？

Mainly for home appliances.

主要用於家用電器。

Home appliances, okay, thanks.

家電，好的，謝謝。

May I get a sense about your OpEx trend in terms of absolute dollar or percentage of revenue in 2017?

我可以了解一下你們 2017 年營運支出的絕對趨勢或收入百分比嗎？

Yes, it's our goal to maintain a stable percentage of revenue in the OpEx but there will be also a quarterly pattern as well.

是的，我們的目標是維持營運支出收入的穩定百分比，但也會有季度模式。

Normally Q1 is always the lowest and Q4 is always the highest.

通常，Q1 始終最低，Q4 始終最高。

I thought there was some one-time OpEx last year when you ramped up the Xiamen fab, so is that kind recurrent OpEx or that part of OpEx will experience in 2017?

我認為去年廈門工廠擴建時存在一些一次性營運支出，那麼這種營運支出是經常性營運支出還是 2017 年將經歷的那部分營運支出？

The early start-up costs associated with Xiamen fab is counted under OpEx until the end of November last year and starting from the mass production in December, all the cost item will go to the appropriate lines.

廈門晶圓廠的早期啟動成本截至去年11月底都計入營運支出，從12月量產開始，所有成本項目都將計入對應的生產線。

Meaning cost of goods sold will increase a little bit OpEx or decline slightly.

這意味著銷售成本將略有增加或略有下降。

That's right.

這是正確的。

Lastly, I want to make sure for your CapEx for Xiamen fab, will there be any contribution from Xiamen government?

最後，我想確定你們廈門晶圓廠的資本支出，廈門政府有貢獻嗎？

How do you share the CapEx?

你們如何分享資本支出？

We don't share CapEx.

我們不分享資本支出。

We share capital injection, the paid-in capital according to the investment agreement.

我們根據投資協議分享注資、實收資本。

So UMC after this recent -- this year 2017, we are budgeted to inject $450 million.

因此，聯華電子在最近的 2017 年後，我們預算注入 4.5 億美元。

After that, UMC will control over 50% of the JV.

此後，聯華電子將控制合資公司50%以上的股份。

Currently we only control about 33% -- 32%.

目前我們只控制了33%——32%左右。

Lastly, I guess all investors would be curious, so you didn't give explicit full-year revenue guidance but just in the sense of outgrowing or under-growing industry, let's say foundry industry growth is high single digit, what do you think your growth rate will be?

最後，我想所有投資者都會好奇，所以您沒有給出明確的全年收入指引，而只是在行業增長過快或增長不足的意義上給出，假設代工行業的增長是高個位數，您認為您的收入如何？成長率將會是多少？

Our numbers for the semiconductor industry is - the year-on-year growth rate will be around 5% and for the foundry segment, excluding memory, our number is 7% to 8%.

我們對半導體產業的預測是，年成長率將在 5% 左右，而對於代工領域（不包括記憶體），我們的預測是 7% 到 8%。

UMC will have a mild growth in 2017.

聯華電子在2017年將會有溫和的成長。

So means low-single-digit growth, am I right?

這意味著低個位數成長，對嗎？

Well, we will be in line with semiconductor industry's growth in 2017.

嗯，我們將與 2017 年半導體產業的成長保持一致。

So lastly, it seems like your utilization rate is like a full percentage lower than fourth quarter and do you expect or does that mean second quarter revenue will see a sequential decline?

最後，您的利用率似乎比第四季低了整整一個百分比，您是否預計或這是否意味著第二季的收入將持續下降？

Because as Roland just asked, your 1Q shipment declined only 1% so I would assume the wafer outs for second quarter could be even lower.

因為正如 Roland 剛才所問的，你們第一季的出貨量只下降了 1%，所以我認為第二季的晶圓出貨量可能會更低。

We don't guide on -- for that so far and we will give more color in the coming analyst conference call.

到目前為止，我們還沒有對此進行指導，我們將在即將召開的分析師電話會議中提供更多資訊。

Okay, so under pricing pressure part do you think those pricing pressures or competition [in edge] comes from Taiwanese industry peers or is that coming from Taiwanese foundry?

好的，那麼在定價壓力下，您認為這些定價壓力或競爭（優勢）來自台灣同行還是來自台灣代工廠？

It's across the board but we are more concerned on loading.

這是全面的，但我們更關心加載。

So once we have -- as I just explained, once we improve our utilization rate we will have a better position to optimizing our product mix to improve our ASP.

因此，正如我剛才所解釋的，一旦我們提高了利用率，我們將能夠更好地優化我們的產品組合，以提高我們的平均售價。

Okay, understood, thank you very much.

好的，明白了，非常感謝。

Thank you.

謝謝。

The next one is from Gokul Hariharan from JPMorgan.

下一篇來自摩根大通的 Gokul Hariharan。

Go ahead please.

請繼續。

Hi, thanks for taking my questions.

您好，感謝您回答我的問題。

My first question, could you comment a little bit more on the 28-nanometer supply/demand situation?

我的第一個問題，您能否對 28 奈米的供需情況進行更多評論？

You talked about some of the first movers, first stream of customers moving onto advanced nodes, there being a time lag in terms of bringing on second wave customers.

您談到了一些先行者，第一批客戶轉向先進節點，在吸引第二波客戶方面存在時間延遲。

At the same time, it seems like there is a fair bit of capacity expansion in Taiwan as well as in China on 28-nanometer.

同時，台灣和中國大陸的 28 奈米產能似乎都有相當大的擴張。

So could you talk a little bit about where you think the 28-nanometer supply/demand balance is achieved, is it going to take until second half for you to ramp some of the new customers, or do we see this as a one quarter thing and we see a pick-up in Q2?

那麼，您能否談談您認為 28 奈米供需平衡是如何實現的？是否需要到下半年才能增加一些新客戶，或者我們認為這只是四分之一的事情我們看到第二季度有所回升嗎？

Yes, our 28-nanometer process solution we believe is positioned very well, especially on our High-K/Metal Gate.

是的，我們相信我們的 28 奈米製程解決方案定位非常好，尤其是在我們的高 K/金屬閘極上。

UMC is one of the only two gate-last High-K/Metal Gate versions providers.

UMC 是僅有的兩家後閘極高 K/金屬閘極版本供應商之一。

And because we -- especially our High-K/Metal Gate we improve our process performance, we are now outperforming than the rest of the industry and factories.

因為我們——尤其是我們的高 K/金屬閘極，我們提高了製程性能，所以我們現在的表現優於其他產業和工廠。

Especially our High-K/Metal Gate we have much smaller leakage, which is also representing the lower power consumption, or we can enjoy a higher speed at the same energy level.

尤其是我們的High-K/Metal Gate我們的漏電要小得多，這也代表著更低的功耗，或者說在相同的能量水平下我們可以享受到更高的速度。

So that makes UMC can more attractions from our customers on UMC's High-K/Metal Gate process.

這使得聯電的 High-K/Metal Gate 流程更能吸引客戶的注意。

So though there are some [bumpy] because of the macro dynamics that demand an adjustment but we believe the 28 will a very strong and long life node.

因此，儘管由於宏觀動態需要調整而存在一些[坎坷]，但我們相信 28 將是一個非常強大且壽命較長的節點。

UMC is in a very good position to gaining more demand on that.

聯華電子處於非常有利的位置，可以贏得更多的需求。

Okay, so this short-term situation in terms of bringing on your second wave customers, do you expect 28 to start growing in Q2 again or is it still going to be relatively sluggish in the second quarter as well?

好的，那麼就吸引第二波客戶而言，您預計 28 會在第二季再次開始成長，還是在第二季仍然相對低迷？

As I explained, we don't guide the second quarter but we believe the -- based on our customer engagement and demand we believe that they are very strong bounce back starting from the mid of this year on 28-nanometers demand.

正如我所解釋的，我們不會指導第二季度，但我們相信——根據我們的客戶參與度和需求，我們相信從今年中期開始，28 奈米需求將出現非常強勁的反彈。

Okay, that was very helpful.

好的，這非常有幫助。

My second question is on the gross margin side, is there some impact -- a meaningful impact from Xiamen ramp up in the gross margins in Q1?

我的第二個問題是在毛利率方面，是否有一些影響——廈門第一季毛利率的上升是否產生了有意義的影響？

How should we think about gross margins as we go through the year?

回顧這一年，我們該如何看待毛利率？

Are we getting back up to the 20%-plus territory in the second half of the year or is it going to take a little bit longer as you have a lot of capacity coming online in China?

我們是否會在下半年恢復到 20% 以上的水平，還是需要更長的時間，因為中國有大量產能上線？

Chinese fab will have impact about 4 percentage points for overall gross margins; however, of course we will try very hard.

中國晶圓廠將對整體毛利率產生約4個百分點的影響；不過，我們當然會非常努力。

The major factors are pretty much up to our loading and ASP trend so that's still a much bigger factor.

主要因素很大程度上取決於我們的負荷和 ASP 趨勢，因此這仍然是一個更大的因素。

So the 4% impact, Chitung, is in Q1 or is it something that will stay through the year as you bring up the Xiamen site?

那麼，Chitung，4% 的影響是在第一季度，還是當您提到廈門網站時，這種影響會持續一整年？

(multiple speakers) our figures throughout the year but we also factor in the 50% ownership of minority interest as well.

（多名發言者）我們全年的數據，但我們也考慮了 50% 的少數股東權益。

Sure, okay, that's helpful, thank you.

當然，好的，這很有幫助，謝謝。

Thank you.

謝謝。

The next one is from Sebastian Hou from CLSA.

下一篇來自里昂證券的 Sebastian Hou。

Go ahead.

前進。

Hi, thank you for taking my questions.

你好，謝謝你回答我的問題。

So my first one is I need some clarification from you guys on the first quarter gross profit margin guidance.

所以我的第一個問題是我需要你們對第一季毛利率指引做一些澄清。

So if we take a look back on the fourth quarter, so if we take out the TWD1 billion insurance claim which means your fourth quarter gross profit margin could have been about 20%, which is nice and better I think than earlier guidance without insurance claim.

因此，如果我們回顧第四季度，如果我們扣除 10 億新台幣的保險索賠，這意味著您第四季度的毛利率可能約為 20%，我認為這比之前沒有保險索賠的指導更好。 。

But if we compare that with your first quarter margin guidance, which is about mid-teens, which means that your margin is going to decline by 5 percentage points, and if we consider this along with your lower revenue contribution from 28-nanometers, which presumably should be carrying lower than corporate average margin.

但如果我們將其與你們第一季的利潤率指引（大約是十幾歲左右）進行比較，這意味著你們的利潤率將下降5 個百分點，並且如果我們將這一點與28 奈米技術較低的收入貢獻一起考慮，則意味著你們的利潤率將下降5 個百分點。據推測，其利潤率應低於公司平均利潤率。

So from the product mix perspective it seems like your margins should trend to a better territory.

因此，從產品組合的角度來看，您的利潤似乎應該趨向於更好的領域。

So I'm just a little bit confused here.

所以我在這裡有點困惑。

Can you explain more why we see such a large margin decline in first quarter?

您能否詳細解釋為什麼我們看到第一季的利潤率下降如此之大？

Your assumption is not 100% correct.

你的假設並不是100%正確。

I mean 28-nanometer was below our corporate average in terms of gross margin; however, because of the underutilization, the cost of 28-nanometer manufacturing is also becoming higher.

我的意思是，28 奈米的毛利率低於我們公司的平均值；然而，由於利用率不足，28奈米製造的成本也變得越來越高。

The contribution or earnings strength if you will is actually bigger than Q4.

如果你願意的話，貢獻或獲利實力實際上比第四季度更大。

So overall, that still dragged down our gross margin because of the lower capacity utilization rate in 28-nanometer capacity.

整體而言，由於28奈米產能利用率較低，這仍然拖累了我們的毛利率。

Okay, yes, I think there's a lot of factors impacting your margins so I think the problem is with probably just one sector.

好的，是的，我認為影響利潤率的因素有很多，所以我認為問題可能只存在於一個部門。

Well, thanks for explaining that.

嗯，謝謝你的解釋。

The follow on that is that the -- what is your OpEx ratio in first quarter?

接下來是－第一季的營運支出比率是多少？

It should be still similar to that of Q4 last year but a little bit improvement.

應該仍然與去年第四季相似，但略有改善。

So your Q4 last year is about 14% OpEx [ratio], so a little bit improvement, probably a similar level, but your gross margin guidance of mid-teens which means that your first quarter operating level pretty much just breakeven.

因此，您去年第四季的營運支出[比率]約為14%，所以略有改善，可能是類似的水平，但您的毛利率指導為十幾歲左右，這意味著您第一季的運營水平幾乎只是損益平衡。

I'm not sure if that assumption (multiple speakers).

我不確定這個假設是否成立（多位發言者）。

Yes, it looks like the case for Q1, yes, but we will try to stay in black.

是的，看起來就像第一季的情況，是的，但我們會盡力保持黑色。

Okay, thank you.

好的謝謝。

My second part of the question is 28-nanometer, so I think the CEO mentioned about the capacity for 28-nanometer this year, additional capacity will be 6,000 wafer per month.

我的問題的第二部分是28奈米，所以我認為CEO提到了今年28奈米的產能，額外產能將是每月6,000片晶圓。

I remember in the past two calls you mentioned about you were going to -- you were planning to add about 10K to 15K by -- in 2017, so your total 28 capacity will reach 40,000 to 45,000 by -- well, in 2017.

我記得在過去的兩次電話中，您提到您計劃在 2017 年增加約 10,000 到 15,000 個產能，因此您的 28 個工廠的總容量將在 2017 年達到 40,000 到 45,000 個。

So it seems like your capacity expansion on 28 is more conservative than earlier, I just wonder what has changed.

所以看起來你們28號的擴容比之前更保守，我只是想知道發生了什麼變化。

It's actually not changed.

其實沒有改變。

I mean we are having additional 5k in Taiwan and plan additional 5k in Xiamen and in -- subject to current government approval.

我的意思是，我們在台灣增設了 5,000 座，並計劃在廈門和其他地區增設 5,000 座，具體取決於當前政府的批准。

So once we get the approval that 5,000 capacity will be put into the picture.

因此，一旦獲得批准，我們將投入 5,000 個產能。

Okay, which means your CapEx for this year will probably be raised in the second half or later depending on the approval from government.

好的，這意味著您今年的資本支出可能會在下半年或稍後提高，具體取決於政府的批准。

Well, partially -- part of the equipment we already been planned but not executed yet.

嗯，部分——我們已經計劃但尚未執行的部分設備。

So it's a small portion compared to our overall CapEx but still there is a range for the CapEx.

因此，與我們的整體資本支出相比，這只是一小部分，但資本支出仍然有一個範圍。

Like last year, our budget was TWD2.2 billion but we ended up spending about TWD2.8 billion because of the higher or faster schedule in terms of Xiamen expansion.

與去年一樣，我們的預算為新台幣 22 億，但由於廈門擴建的進度更快或更快，最終我們花費了約 28 億新台幣。

Okay, so you're still on track to build probably minimum 10k of the new capacity on 28, just pending approval.

好的，您仍有望在 28 上建造至少 10k 的新容量，只是等待批准。

Yes.

是的。

My two-part question is on the minority, on the P&L, so it seems your minority has increased quite a bit in fourth quarter and along the way in the past few quarters.

我的問題分為兩部分，是關於少數派和損益表的，所以看起來你們的少數派在第四季度以及過去幾個季度增加了很多。

I believe that -- assume that's mostly from your 12X Fab in Xiamen.

我相信——假設這大部分來自你們位於廈門的 12X 晶圓廠。

So I just wonder can you give us some guidance or hints on how should we model this in first quarter 2017 and also for 2017?

所以我只是想知道您能否給我們一些指導或提示，告訴我們我們應該如何在 2017 年第一季以及 2017 年對此進行建模？

Once we inject our capital for another TWD450 million, UMC's holding will increase from 30% to 50%.

一旦我們再注資新台幣4.5億元，聯華電子的持股比例將由30%增加至50%。

The minority interest will also come down from 70% to 50% after we complete our capital injection in Q1 this year.

今年第一季完成注資後，少數股東權益也將從70%降至50%。

But your CapEx will -- you will also add in more capacity, so the number will still probably will go higher.

但你的資本支出將會——你還將增加更多的容量，所以這個數字仍然可能會更高。

You mean --

你的意思是 -

The minority.

少數。

Minority interest, well, it depends on the result of our Xiamen fab and right now it's forecast to be a loss, so we don't have the detailed numbers for the full year.

少數股東權益，嗯，這取決於我們廈門工廠的結果，目前預計是虧損的，所以我們沒有全年的詳細數據。

Okay, and I have a follow up on your Xiamen -- sorry, the 12X Fab.

好的，我對你們的廈門有一個跟進——抱歉，是 12X Fab。

So CEO mentioned about 11k of the capacity planned by the end of this year, so the first part of the question on that is, is that all for 40-nanometers?

CEO 提到今年年底計畫產能約 11k，所以問題的第一部分是，這都是 40 奈米的產能嗎？

The first 6,000 wafers is obviously 40-nanometers.

前 6,000 片晶圓顯然是 40 奈米。

The future expansion which is ongoing will be depending on Taiwan government's approval.

未來正在進行的擴建將取決於台灣政府的批准。

Oh, okay, so that extra 5,000 wafers is 28-nanometer which we discussed earlier is (multiple speakers) here.

哦，好吧，所以額外的 5,000 個晶圓是我們之前討論過的 28 奈米（多個揚聲器）。

Depending on the government approval, yes.

取決於政府的批准，是的。

Okay, got it.

好，知道了。

The last question is on the -- I noticed your IDM revenue, the customer -- so your revenue from IDM customers have declined from a total contribution from 12% to 8% and putting it in dollar terms is declining by over 30% year over year last year.

最後一個問題是關於——我注意到你們的 IDM 收入、客戶——所以你們來自 IDM 客戶的收入已經從總貢獻中的 12% 下降到 8%，以美元計算，同比下降了 30% 以上。去年。

So I wonder, is there any change in terms of commitment or what kind of a change you see from -- I mean what happened?

所以我想知道，承諾方面是否有任何變化，或者您看到了什麼樣的變化——我的意思是發生了什麼？

I would say part of the reason is because of the industry's consolidation.

我想說部分原因是產業整合。

Some IDM companies were acquired by the fabless design companies, so that we calculate into that fabless design companies.

有些IDM公司被無晶圓廠設計公司收購，所以我們也算進無晶圓廠設計公司。

Oh okay, so there is not much change in terms of the customer commitment but mostly due to it because of some customers being acquired.

哦，好吧，所以客戶承諾方面沒有太大變化，但主要是因為獲得了一些客戶。

Yes, it's very significant the industry's consolidation since 2015.

是的，自 2015 年以來，產業整合意義重大。

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

好的，謝謝，我就這麼多了，謝謝。

Thank you.

謝謝。

Ladies and gentlemen, we are running out of time so that will be the end of today's Q&A session.

女士們、先生們，我們的時間不多了，今天的問答環節到此結束。

I will turn things over to UMC Head of IR, for closing remarks.

我會將事情轉交給 UMC IR 主管，讓其發表結束語。

Thank you, everyone, for joining us today.

謝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，請隨時透過 ir@umc.com 聯絡 UMC。

Have a good day.

祝你有美好的一天。

Thank you, ladies and gentlemen, that concludes our conference for 4Q 2016 and thank you for your participation in UMC's conference.

謝謝各位，女士們、先生們，我們 2016 年第四季的會議到此結束，並感謝你們參加 UMC 的會議。

There will be a webcast replay within an hour.

一小時內將進行網路廣播重播。

Please visit www.umc.com under the investors events section.

請造訪 www.umc.com 的投資者活動部分。

You may now disconnect.

您現在可以斷開連線。

Good bye.

再見。