聯華電子 (UMC) 2017 Q1 法說會逐字稿

Welcome everyone to UMC's 2017 First Quarter Earnings Conference Call.

歡迎大家參加聯華電子 2017 年第一季獲利電話會議。

(Operator Instructions) For your information, this conference call is now being broadcasted live over the Internet, and webcast replay will be available within an hour after the conference has finished.

（操作員說明）僅供參考，本次電話會議現透過網路直播，會議結束後一小時內將提供網路直播重播。

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，位於「投資者關係」、「投資者活動」部分。

And now I would like to introduce Mr. Michael Lin, 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 Michael Lin 先生。

Mr. Lin, you may begin.

林先生，您可以開始了。

Thank you, and welcome to the UMC Conference Call for the First Quarter of 2017.

謝謝，歡迎參加 2017 年第一季聯華電子電話會議。

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

聯華電子執行長顏博文先生也出席了會議；以及聯電財務長劉啟東先生。

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

稍後，我們將聽到我們的財務長介紹第一季的財務業績，然後是我們的執行長針對 UMC 的預測和 2017 年第二季指導的關鍵訊息。

Once our CEO and 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，就會有問答環節。

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」部分取得。

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

在本次會議期間，我們將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 the risk that may be beyond 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 U.S. and ROC securities authorities.

對於這些風險，請參閱聯華電子向美國 SEC 和中華民國證券監管機構提交的文件。

Now I would like to introduce UMC's CFO, Mr. Qi Dong Liu, to discuss our first quarter 2017 results.

現在我想介紹聯華電子的財務長劉啟東先生來討論我們2017年第一季的表現。

Thank you, Michael.

謝謝你，麥可。

I would like to go through the first quarter 2017 investor conference presentation material, which can be downloaded from our website.

我想瀏覽一下2017年第一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. First quarter of 2017 consolidated revenue was TWD 37.42 billion with our gross margin at 19.9%.

從第3頁開始。2017年第一季合併營收為新台幣374.2億元，毛利率為19.9%。

The net income attributable to the stockholders of the parent was TWD 2.29 million and EPS for ordinary shares were TWD 0.19.

歸屬於母公司股東的淨利為新台幣229萬元，普通股每股盈餘為新台幣0.19元。

Capacity utilization rate due to shorter working days and also annual maintenance in first quarter, the loading is running at 96% compared to the previous quarter of 94%.

由於工作日縮短以及年度維護，產能利用率在第一季保持在 96% 的水平，而上一季為 94%。

So on Page 4. Revenue in first quarter, TWD 37.4 billion, was down 2.3% compared to the previous quarter.

第四頁，第一季營收為新台幣 374 億，季減 2.3%。

Gross margin, 19.9%, was mainly due to higher NT dollar exchange rate as well as higher cost in our Xiamen JV.

毛利率為 19.9%，主要是因為新台幣匯率較高以及我們廈門合資企業的成本較高。

And net income, TWD 1.49 billion and also TWD 2.28 billion attributable to the parent relate -- result to a TWD 0.19 EPS.

淨利為 14.9 億新台幣，歸屬於母公司的新台幣為 22.8 億新台幣，每股收益為 0.19 新台幣。

For the first 3 months, we can see compared to the same period of last year, revenue grow by 8.8%.

前3個月，我們可以看到與去年同期相比，營收成長了8.8%。

And last year same quarter was impacted by earthquake, so the base was rather low.

而去年同季受地震影響，基數較低。

And gross margin also show a significant growth of 47.6% to TWD 7.4 billion.

毛利率也大幅成長47.6%，達到74億新台幣。

And our net earnings to the parent grow almost 10x, TWD 2.28 billion.

我們給母公司的淨利潤成長了近 10 倍，達到 22.8 億新台幣。

On Page 6 is our balance sheet highlight.

第 6 頁是我們的資產負債表亮點。

Our cash on hand is over TWD 60 billion.

我們手頭現金超過600億新台幣。

We saw total asset near TWD 380 billion.

我們看到總資產接近3800億新台幣。

On Page 7, there's an operating segment breakdown.

第 7 頁有營運部門細分。

The new business segment has become less and less significant.

新的業務部門變得越來越不重要。

And most of the consolidated earnings are TWD 1.49 billion coming from wafer fabrication segment.

綜合獲利14.9億元新台幣大部分來自晶圓製造部門。

And we expect the trend will continue and the loss coming from new business will continue to decline.

我們預期這一趨勢將持續，新業務帶來的虧損將持續下降。

On Page 8, our ASP in the first quarter declined by a few percentage points, mainly due to the product mix deterioration.

在第8頁，我們第一季的平均售價下降了幾個百分點，主要是因為產品結構惡化。

On Page 9, in terms of sales breakdown by geography, North America come down to 41% compared to 48% in the previous quarter.

在第 9 頁，就按地區劃分的銷售額細分而言，北美地區從上一季的 48% 下降至 41%。

And Asia took over to become our largest share of sales to 50%, with Japan and Europe did not change much, still stay around 9% in combined.

其中亞洲接替成為我們最大的銷售份額，達到50%，而日本和歐洲變化不大，合計仍維持在9%左右。

On Page 10, IDM stay at 7% of revenue, unchanged.

在第 10 頁，IDM 保持在收入的 7% 不變。

And for Page 11, for segment -- application breakdown, communication remained over 50% of our revenue while consumer around 28% in first quarter of 2017.

對於第 11 頁，就細分市場（應用程式細分）而言，通訊仍然占我們收入的 50% 以上，而消費者在 2017 年第一季約為 28%。

And for 28-nanometer, there's a weakness in demand and also revenue -- percentage of revenue has come down to 17% from 22% in the previous quarter.

對於 28 奈米，需求和收入均疲軟——收入百分比已從上一季的 22% 降至 17%。

And 40-nanometer continued to be strong with 29% of the total revenue.

40奈米持續保持強勁勢頭，佔總營收的29%。

On Page 13, there's a capacity -- quarterly capacity breakdown.

第 13 頁有產能－季度產能細分。

And Q1, due to shorter working days as well as some maintenance, we see a minor decline in our quarterly capacity.

第一季度，由於工作日縮短以及一些維護，我們看到季度產能略有下降。

But quarter 2, we will see a good recovery in terms of the total capacity.

但第二季度，我們將看到總產能的良好復甦。

And for the time being, the annual budget for capital expenditure remain at USD 2 billion, unchanged with 91% goes to 12-inch.

目前，年度資本支出預算維持在20億美元不變，其中91%用於12吋。

And about the summary of UMC results for first quarter 2017, more details are available in the report, which has been posted on our website.

關於聯華電子 2017 年第一季業績摘要，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, Qi Dong.

謝謝你，啟東。

Hello, everyone.

大家好。

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

我想向大家介紹聯華電子第一季的經營業績。

In the first quarter of 2017, UMC's revenue from foundry operation was TWD 37.35 billion.

2017年第一季度，聯電代工業務營收為新台幣373.5億元。

The robust chip demand lifted overall capacity utilization to 96%, bringing wafer shipments to 1.68 million 8-inch equivalents wafers.

強勁的晶片需求將整體產能利用率提升至96%，使晶圓出貨量達到168萬片8吋等效晶圓。

The gross margin was 20.1%.

毛利率為20.1%。

During the quarter, the utilization rates in 8-inch fabs as well as 12-inch advanced nodes approached near full capacity driven by the strength in consumer and communication segments.

本季度，在消費和通訊領域的強勁推動下，8吋晶圓廠和12吋先進節點的利用率接近滿載。

Recently, Taiwan's government authorities approved UMC's application to license 28-nanometer technology to our subsidiary company, United Semiconductor in Xiamen.

最近，台灣政府當局批准了聯華電子向其位於廈門的子公司聯華半導體授權28奈米技術的申請。

This licensing approval will help our 12X fab to ramp its manufacturing scale, expand its process technology offerings and completes (sic) [complements] UMC's overall growth strategy.

此次許可核准將協助我們的 12X 晶圓廠擴大其製造規模、擴大其製程技術產品並完成（原文如此）[補充]聯華電子的整體成長策略。

The production ramp of Fab 12X will also help our customers by diversifying their foundry manufacturing and enhance UMC's exposure to the Chinese semiconductor supply chain.

Fab 12X 的產量提升也將有助於我們的客戶實現代工製造多元化，並增強聯華電子在中國半導體供應鏈中的曝光度。

Looking into the second quarter, despite recent headwinds in foreign exchange markets, we anticipate a relatively flat outlook for 2Q '17.

展望第二季度，儘管近期外匯市場出現逆風，但我們預期 2017 年第二季的前景相對平淡。

Furthermore, current forecasts reflect a pickup in mature 12-inch wafer business due to higher demand from wireless, Internet of Things and consumer electronics.

此外，目前的預測反映出，由於無線、物聯網和消費性電子產品的需求增加，成熟的 12 吋晶圓業務將回升。

However, the increase of demand in legacy 12-inch wafer shipments will be offset by a decline in 28-nanometer business.

然而，傳統12吋晶圓出貨量需求的成長將被28奈米業務的下滑所抵消。

In terms of advanced nodes, we started shipping 14-nanometer wafers to customers in first quarter of 2017.

在先進節點方面，我們於2017年第一季開始向客戶運送14奈米晶圓。

As we transition from 28-nanometer to 14-nanometer manufacturing, we expect our 14-nanometer shipments to sequentially increase in 2Q '17.

隨著我們從 28 奈米製造過渡到 14 奈米製造，我們預計 14 奈米出貨量將在 2017 年第二季連續增加。

With our manufacturing technologies making steady progress, we continue to strike a balance between maintaining disciplined CapEx planning while ensuring the interest of our stakeholders -- shareholders.

隨著我們的製造技術穩步進步，我們繼續在維持嚴格的資本支出規劃和確保利害關係人（股東）的利益之間取得平衡。

As a result, our Board of Directors has proposed a cash dividend distribution of approximately TWD 0.50 per share, which will be subject to shareholders' approval during the UMC's Annual General Meeting on June 8, 2017.

因此，董事會建議派發每股約新台幣0.50元的現金股利，尚需於2017年6月8日聯華電子年度股東大會上獲得股東批准。

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。

(foreign language)

（外語）

I finished my remarks.

我的發言結束了。

And now let me go over the second quarter 2017 guidance.

現在讓我回顧一下 2017 年第二季的指導。

Our wafer shipments in second quarter 2017 will be remain flat.

2017年第二季我們的晶圓出貨量將保持持平。

The ASP in U.S. dollar will be remain flat as well.

以美元計算的平均售價也將維持不變。

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

聯華電子的毛利率將在百分之十左右。

The capacity utilization rate will be in low-90 percentage range.

產能利用率將在90％以下的範圍內。

The foundry CapEx for 2017 will be USD 2.0 billion.

2017年代工資本支出將為20億美元。

That concludes my remarks.

我的發言到此結束。

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) And the first question is from Randy Abrams from Credit Suisse.

（操作員說明）第一個問題來自瑞士信貸銀行的蘭迪·艾布拉姆斯。

The first question I wanted to ask was on your higher outlook for the mature 12-inch nodes.

我想問的第一個問題是您對成熟的12英寸節點的更高的期望。

If you could give more details on the pickup, if you're seeing it coming from certain applications, market share gain or if it's more of just a normal seasonal pickup.

如果您可以提供有關皮卡的更多詳細信息，如果您看到它來自某些應用程序，市場份額的增長，或者它是否只是正常的季節性皮卡。

And if you could also talk if you're seeing -- I think you were talking about 8-inch a couple of quarters ago qualifying new customers, just how the traction and application ramp on 8-inch is coming through.

如果您也可以談談，如果您看到的話，我認為您在幾個季度前談論了 8 英寸的新客戶資格，以及 8 英寸的吸引力和應用程式的增長是如何實現的。

Thank you for your question.

謝謝你的問題。

And in our 12-inch mature nodes, we expect a higher demand.

而在我們的 12 吋成熟節點中，我們預計會有更高的需求。

In the application, we saw the integrated touch driver SoC solutions, PTI and connectivity and the solid-state fiber controllers.

在應用中，我們看到了整合式觸控驅動器 SoC 解決方案、PTI 和連接以及固態光纖控制器。

And for our 8-inch, we are fully loaded to meet the growing demand of our customers on the power management and RF switch and embedded nonvolatile memory and the larger panel driver, controllers.

對於我們的 8 吋產品，我們已全力滿足客戶對電源管理、射頻開關、嵌入式非揮發性記憶體以及更大的面板驅動器、控制器不斷增長的需求。

Okay.

好的。

And if I could ask on the 28-nanometer.

我是否可以詢問 28 奈米的情況。

As we go towards second half, do you see the mix reverting back from mature 12-inch back to 28?

當我們進入下半年時，您是否看到混合從成熟的 12 英寸恢復到 28 英寸？

And maybe in a -- to frame that percent of revenue, if it can get back to fourth quarter '16 or even get above that.

如果可以回到 16 年第四季甚至超過這個數字，也許可以確定收入的百分比。

So maybe how you see both the mature 12-inch and the 28 as we go towards second half?

那麼，當我們進入下半年時，您如何看待成熟的 12 英寸和 28 英寸？

Yes.

是的。

For the -- our mature 12-inch nodes, we believe that demand remain very strong throughout the year.

對於我們成熟的 12 吋節點，我們相信全年需求仍然非常強勁。

And for our 28-nanometer demand, it is -- for the second half 2017, it's too early to give a guidance on our demand on the second half.

對於我們 28 納米的需求，對於 2017 年下半年來說，現在對下半年的需求給出指導還為時過早。

Okay.

好的。

I guess, can you give color on 28?

我想，你能給28號的顏色嗎？

Just maybe -- if some of the customers that corrected, if you -- if it's just low visibility into those coming back or any visibility into new application or customers, just maybe in terms of like product activity, how you're seeing aside from just market environment?

只是也許 - 如果一些客戶糾正了，如果你 - 如果只是對那些回來的人的可見性較低或對新應用程序或客戶的任何可見性，也許就產品活動而言，你如何看待除了只是市場環境？

Yes.

是的。

We are -- currently, we do have a challenge on our 28-nanometer demand.

目前，我們的 28 奈米需求確實面臨挑戰。

And that is due to a very concentrated customer base and applications.

這是由於非常集中的客戶群和應用程式。

And, however, we are doing our [top] efforts to improve -- to diversify our customer base and applications similarly.

然而，我們正在盡我們最大的努力來改進——以同樣的方式使我們的客戶群和應用程式多樣化。

So we believe in the quarters -- in a few quarters, we will improve our 28-nanometer loading.

因此，我們相信在幾個季度內，我們將改進 28 奈米負載。

Okay.

好的。

The final question I had, on the gross margin, if you could talk what triggered -- in first quarter, I think gross margin versus original guidance, it looks like depreciation may be a little bit lower in first quarter than expected.

我的最後一個問題是關於毛利率，如果你能談談是什麼觸發了第一季度的毛利率，我認為與最初的指導相比，第一季的折舊可能會比預期低一些。

But then as we look to second quarter, maybe the factor to guide it into flat shipment in ASP compared to margin down for second quarter?

但當我們展望第二季時，與第二季利潤率下降相比，也許是引導其平均售價持平的因素？

Second quarter was mainly due to unfavorable ForEx outlook as well as the rising cost from our Chinese JV.

第二季度主要是由於不利的外匯前景以及我們中國合資企業的成本上升。

And the lighter loading in our 28-nanometer capacity also will lead to lower profitability.

而且我們28奈米產能的負載較輕也會導致獲利能力下降。

So that's probably the main reason in combination for second quarter gross margin.

因此，這可能是第二季毛利率的主要原因。

Okay.

好的。

With the non-op -- or I guess, the other controlling interest from minority, will that change or come to -- because that came down quite a bit this quarter.

對於非運營商——或者我猜，來自少數派的其他控股權益，這種情況會改變或發生嗎——因為本季度這種情況下降了很多。

Would that portion come down or that will stay at your similar levels?

該部分會下降還是會維持在類似水準？

Well, that's -- current JV structure is now 50-50.

嗯，目前的合資企業結構是 50-50。

So we will always recognize the 50% of the net from our Chinese JV.

因此，我們將始終承認我們的中國合資企業擁有 50% 的網路份額。

The other partners or investors will recognize the remaining 50%.

其他合作夥伴或投資者將承認剩餘的50%。

Okay.

好的。

But I guess, it implies near -- you'll recognize similar but probably not much change then.

但我想，這意味著你很快就會意識到類似的變化，但可能不會有太大的變化。

No, not much.

不，不多。

And the next one is from Bill Lu from UBS.

下一篇來自瑞銀集團的 Bill Lu。

On 28 nanometers, a couple of questions.

關於 28 奈米，有幾個問題。

One is I think previously you talked about targeting capacity of 35K by end of the year.

一是我認為您之前談到了今年年底容量達到 35K 的目標。

It now looks like maybe demand is a little bit more uncertain.

現在看來，需求可能更不確定。

Is that still the target?

這還是目標嗎？

Or are you going to adjust that?

或者你打算對此進行調整嗎？

We have a target on the -- by the end of 2017, we'll reach the -- actually reach the 39.5K per month capacity.

我們的目標是——到 2017 年底，我們將達到——實際上達到每月 39,500 件的產能。

There is additional 5K in our 12X.

我們的 12X 中還有額外的 5K。

The 35 is already in place in Q1.

35 已在第一季就位。

Yes.

是的。

Yes.

是的。

So no change to the capacity planning even though demand seems a bit more uncertain?

那麼，儘管需求似乎更不確定，但容量規劃卻沒有改變？

For the Chinese JV ramp-up, in terms of the momentum, can adjust accordingly.

對於中國合資企業的爬坡，就動力而言，可以進行相應的調整。

But for the time being, the initial 5K is on schedule.

但就目前而言，最初的 5K 已按計劃進行。

Okay.

好的。

TSMC talked about doing 22 nanometers as sort of an upgrade to 28.

台積電談到將 22 奈米作為 28 奈米的升級。

I'm wondering what you think about that.

我想知道你對此有何看法。

And is that something you would consider doing as well?

您也會考慮這樣做嗎？

We are considering to develop 22 ultra-low-power solution for our customers.

我們正在考慮為我們的客戶開發22個超低功耗解決方案。

Yes, based on our customers' demand and their interest, we are considering to do that.

是的，根據客戶的需求和興趣，我們正在考慮這樣做。

If you do, do that, what will be the timing?

如果你這樣做，就這樣做，時間是什麼時候？

For those customers without IP requirements, the timing will be in the first half of next year.

對於沒有IP需求的客戶，時間安排在明年上半年。

For those customers require IP, that would depend on what kind of IP and the lead time of the IP.

對於那些需要IP的客戶，這取決於IP的類型和IP的交貨時間。

And so it will be likely in 2019.

2019 年很可能會出現這種情況。

Okay.

好的。

So you talked about diversifying the customer base at 28 nanometers.

您談到了 28 奈米客戶群的多元化。

I know right now the customer base is very much wireless driven.

我知道現在的客戶群很大程度上是由無線驅動的。

Have you looked to diversify?

您是否尋求多元化？

What are some of the opportunities that you're looking at?

您正在尋找哪些機會？

And I guess, related to that, last quarter, you said that the poly will be stronger in the first half with High-K coming back in the second half.

我想，與此相關的是，上個季度，您說保利在上半年會更強，而 High-K 在下半年會回歸。

Is that still the outlook?

這仍然是前景嗎？

Yes, that is our plan.

是的，這就是我們的計劃。

We do see our customer -- while we are diversifying our customer base and applications, we do see our customers' applications towards -- they are moving more on the 28-nanometer High-K/Metal Gate version, especially on the DTV set-top box and solid-state drivers and some controllers.

我們確實看到我們的客戶- 雖然我們正在使我們的客戶群和應用多樣化，但我們確實看到我們客戶的應用朝著- 他們更多地轉向28 奈米高K/金屬閘極版本，特別是在DTV 設備上 -頂盒和固態驅動器以及一些控制器。

Yes, they are all on the High-K/Metal Gate version.

是的，它們都是 High-K/Metal Gate 版本。

So we believe we're still on the right track.

所以我們相信我們仍然走在正確的軌道上。

However, for the current moment, we have some -- we encounter some customers, they have some products migration scheduled earlier than our original expectation.

然而，就目前而言，我們遇到了一些客戶，他們的一些產品遷移計劃比我們最初的預期要早。

And the next one is from Michael Chou from Deutsche Bank.

下一篇來自德意志銀行的 Michael Chou。

Some follow-up questions for 28 nanometers.

28奈米的一些後續問題。

So you mentioned before 28-nanometer should account for more than 20% of sales in Q4.

所以你之前提到28奈米應該佔Q4銷售額的20%以上。

Is that still the target?

這還是目標嗎？

In the Q4 2017?

2017 年第四季？

Yes.

是的。

It's still our target.

這仍然是我們的目標。

Yes, we -- as I mentioned, that we are working very hard to see -- engage more diversified customers and applications.

是的，正如我所提到的，我們正在努力爭取吸引更多元化的客戶和應用程式。

Okay.

好的。

So given that the 28-nanometer sales could decline quarter-on-quarter in Q2, so the sales portion should come down.

因此，考慮到第二季 28 奈米的銷售額可能會較上季下降，因此銷售額比例應該會下降。

But do you expect it will go up again in Q3 and Q4 this year?

但您預計今年第三季和第四季會再次上漲嗎？

So based on your guidance -- Q4 to be up, if it's more than 20%.

因此，根據您的指導——如果超過 20%，第四季度就會上漲。

But do you think the 28-nanometer sales portion in Q3 will go up quarter-on-quarter versus Q2?

但您認為第三季28奈米的銷售比例會比第二季較上季上升嗎？

Yes.

是的。

For the moment, we don't have sufficient visibility to give this guidance.

目前，我們沒有足夠的知名度來提供此指導。

However, we are working hard to see any recovery from our 28-nanometer capacity utilization.

然而，我們正在努力看到 28 奈米產能利用率有所恢復。

In the meanwhile, we are also engaged more in 14-nanometers customers.

同時，我們也更接觸14奈米的客戶。

You mentioned SST, DTV set-top box chip for 28-nanometer High-K/Metal Gate.

您提到了SST，用於28奈米High-K/Metal Gate的DTV機上盒晶片。

But aren't your requirement for this product -- some of this product should be quite high in terms of performance requirements.

但這不是你對這個產品的要求嗎——有些產品在性能上的要求應該相當高。

So are you quite confident that you should be able to deliver all this 3 major product, which you just mentioned in the second half of this year?

那麼您對今年下半年所提到的三大產品是否有信心交付呢？

Technology-wise, we are -- I'm pretty confident to deliver those applications with UMC's High-K/Metal Gate -- 28-nanometer High-K/Metal Gate solutions.

在技​​術方面，我們非常有信心透過 UMC 的高 K/金屬閘極 28 奈米高 K/金屬閘極解決方案來提供這些應用。

But demand size, as I just mentioned, we don't have enough visibility to forecast for now.

但正如我剛才提到的，需求規模目前我們沒有足夠的可見度來預測。

Okay.

好的。

Some housekeeping questions for Qi Dong, sir.

先生，有一些家事問題要問啟東。

What's currency in Q1 and what's your currency assumption for Q2?

第一季的貨幣是什麼？第二季的貨幣假設是什麼？

Q1 was -- weighted average was 31.1.

第一季加權平均值為 31.1。

And quarter 2, we normally don't have a forecast.

對於第二季度，我們通常沒有預測。

Basically, we just take however it has.

基本上，我們只是採取它所具有的。

So our guidance, as you heard from our CEO, the ASP guidance was in U.S. dollars instead of NT dollars.

因此，正如您從我們的執行長那裡聽到的那樣，我們的指導價是美元而不是新台幣。

So that would suggest our Q2 revenue is subject to the currency fluctuation.

因此，這表明我們第二季的收入會受到貨幣波動的影響。

Sure.

當然。

Okay.

好的。

What would be the outlook for Q2 by application?

按應用劃分，第二季的前景如何？

CEO mentioned several application in 12-inch legacy product and 8-inch.

CEO提到了12吋傳統產品和8吋的幾個應用。

But in terms of communication, consumer PC, can you give some color?

但在通訊、消費PC方面，你能給一些顏色嗎？

Yes, we -- for the 2Q '17, we have a growth on the consumer segment and a little bit dip in the communication segment and some growth in the computer segment.

是的，我們 - 2017 年第二季度，消費領域有所成長，通訊領域略有下降，電腦領域有所成長。

Also consumer PC to grow quarter-on-quarter and communication to be down, am I right?

此外，消費者個人電腦將環比成長，而通訊則會下降，我說得對嗎？

Yes.

是的。

And the next question is from Charlie Chan from Morgan Stanley.

下一個問題來自摩根士丹利的查理陳。

So my first question is back to your first quarter results.

所以我的第一個問題回到你們第一季的業績。

It seems like your wafer shipments is around the 2%, better than your previous guidance.

你們的晶圓出貨量似乎在 2% 左右，比你們之前的指導還要好。

I know you mentioned that is due to better consumer communication demand, but can you solidify which products -- end products doing better?

我知道您提到這是由於更好的消費者溝通需求，但是您能否確定哪些產品（最終產品）做得更好？

Yes.

是的。

Our -- the first quarter, our -- for the consumer segment, the WiFi and FPGA, our subsegment, they are some up; and DTV set-top box, they are some down -- on the downside.

我們的——第一季度，我們的——消費者細分市場、WiFi 和 FPGA，我們的子細分市場，它們有所上升；和數位電視機上盒，它們有一些缺點——缺點。

And for the communication, there are very strong upside in the AP, application processor, and baseband combo chip, and RF and some WiFi in upside.

對於通訊而言，AP、應用處理器和基頻組合晶片以及 RF 和一些 WiFi 方面都有很強的優勢。

And the small display driver, I see in the downside.

我看到了小型顯示驅動器的缺點。

So for the computer segment, the tablet application processor, in the upside.

因此，對於電腦領域來說，平板電腦應用處理器有上行空間。

Okay.

好的。

So I'm curious about your comments regarding strong trends in AP and baseband because it seems like China's smartphone industry was going through the inventory digestion.

因此，我很好奇您對 AP 和基帶強勁趨勢的評論，因為中國智慧型手機產業似乎正在經歷庫存消化。

So do you get any market share?

那你能獲得市場佔有率嗎？

Or what can you explain, the difference?

或者你能解釋一下有什麼差別嗎？

I can comment on the -- that is based on our customers' demand because, yes, they do have a very good market share in China in smartphone business.

我可以評論——這是基於我們客戶的需求，因為，是的，他們在中國的智慧型手機業務中確實擁有非常好的市場份額。

So they have very strong demand in the first quarter.

所以他們第一季的需求非常強勁。

Yes.

是的。

Okay.

好的。

And my second question also on your first quarter results gross margin because your guidance was the meeting, and that was 19% even with some FX impact.

我的第二個問題也是關於你們第一季業績毛利率，因為你們的指導是會議，即使受到一些匯率影響，毛利率也是 19%。

So besides the better utilization, was there any positive factor to your gross margin?

那麼，除了利用率提高之外，你們的毛利率還有什麼正面因素嗎？

And I guess, the same question on your second quarter margin guidance because, again, you guide you'll be meeting.

我想，關於第二季利潤率指引的問題也是如此，因為您再次引導您將達到預期目標。

Is there any conservatism for the second quarter margin guidance as well?

第二季利潤率指引是否也持保守態度？

I think the main reason is probably our Taiwan part.

我想最主要的原因可能是我們台灣部分。

The depreciation has been tapering off, it's peaking.

貶值已經逐漸減弱，正在達到頂峰。

But the new depreciation coming from our JV in China continue to increase.

但來自我們中國合資企業的新折舊繼續增加。

So I think this is slightly a tailwind, if you will, coming from our depreciation curve in Taiwan.

所以我認為，如果你願意的話，這對我們台灣的貶值曲線來說是一個輕微的順風。

But overall, I think this is still a number we need to work on.

但總的來說，我認為這仍然是我們需要努力的數字。

For quarter 2 at the [indiscernible] is going to be rather challenging.

對於第二季來說，[音訊不清晰]將會相當具有挑戰性。

Okay.

好的。

So I'm not sure if I take it right.

所以我不確定我是否正確。

So it means that some depreciation caused a pushback from 1Q to 2Q, is that correct?

那麼這意味著一些貶值導致了從第一季到第二季的倒退，這是正確的嗎？

It's not really pushing back.

這並不是真正的反擊。

Our full year 2017 depreciation will be somewhat offset or grow less than 5% compared to that of 2016, even including the JV in China.

與2016年相比，我們2017年全年的折舊將有所抵銷或成長不到5%，即使包括中國的合資企業。

The Taiwan portion actually will show certain degree of decline in depreciation cost.

台灣部分的折舊成本其實會出現一定程度的下降。

The next question is from Donald Lu from Goldman Sachs.

下一個問題是來自高盛的 Donald Lu。

Can you give us some outlook for your Xiamen stat given that now you have this 28-nanometer license?

鑑於你們現在擁有了 28 奈米許可證，你能否給我們一些對廈門統計數據的展望？

So for next year, would you expand most of your capacity in Xiamen?

那麼明年你們會擴大廈大門的大部分產能嗎？

And if so, what's the longer-term plan there?

如果是這樣，長期計劃是什麼？

Yes.

是的。

Our Xiamen, we started to ship our 14 nanometers in 4Q of last year.

我們廈門，我們去年第四季開始出貨14奈米。

And we're now build out capacity on the 40-nanometer up to -- by the end of this year, we're up to 6.5K per month.

我們現在正在建造 40 奈米產能，到今年年底，每月產能將達到 6.5 萬個。

And in the meantime, also we've got the Taiwan government's approval for the 28-nanometer licensing to this ramp.

同時，我們也獲得了台灣政府對該坡道的 28 奈米許可的批准。

And so we are now start to set up a power line on the 28-nanometer technology development.

所以我們現在開始在28奈米技術開發上建立電源線。

And for now, we have several customers with more than 5 products for 40-nanometer products running in this fab.

目前，我們有多家客戶在該工廠運作超過 5 款 40 奈米產品。

And all the 40-nanometer products are running very good yield, ranging from 95% to 99% average.

所有 40 奈米產品的良率都非常好，平均為 95% 到 99%。

So we are pretty happy on this plant's operation so far.

因此，到目前為止，我們對該工廠的運作感到非常滿意。

And we actively set up our 28-nanometer power line right now.

我們現在正在積極建立我們的28奈米電源線。

That is about our status on this time.

這就是我們此時的狀態。

Can you repeat what is the 40-nanometer capacity by the end of the year -- this year?

您能否重複今年年底的 40 奈米產能是多少？

You mean the 4-0 nanometers?

你是說4-0奈米嗎？

Yes.

是的。

40 nanometers, yes, by the end of this year, we'll have 6.5K per month.

40 奈米，是的，到今年年底，我們每月將有 6.5K 個。

6.5K?

6.5K？

Yes, 6.5K per month.

是的，每月 6.5K。

As I just explained, we are going to have a 5K on 28-nanometer capacity.

正如我剛才所解釋的，我們將在 28 奈米產能上擁有 5K。

Right.

正確的。

Okay, great.

好的，太好了。

And another question I have is on the 28-nanometer weakness.

我的另一個問題是 28 奈米的弱點。

That is mostly in smartphone, right, in communication.

這主要是在智慧型手機領域，對吧，在通訊領域。

But then you said, in the second quarter, the total communication wireless given this revenue should increase, right, quarter-over-quarter in the statement?

但你又說，在第二季度，考慮到這一收入，無線通訊總量應該會增加，對吧，報表中的季度環比增加？

Wireless is strong.

無線訊號很強。

That was quarter 1. Quarter 2, wireless will decline.

那是第一季。第二季度，無線業務將下降。

In quarter 1, wireless increase?

第一季無線成長？

Yes.

是的。

And in quarter 2, wireless will decline?

第二季度，無線業務會下降嗎？

Okay.

好的。

But in quarter 1, your wireless communication declined from Q4 last year?

但在第一季度，你們的無線通訊比去年第四季有所下降？

Yes, but wireless increased.

是的，但是無線增加了。

Oh, I see.

我懂了。

Okay.

好的。

So wireless -- communication, wireless and wireline?

那麼無線——通訊、無線還是有線？

Yes.

是的。

Got it.

知道了。

Okay.

好的。

Maybe I can ask another question on the 14-nanometer development.

也許我可以問另一個關於14奈米開發的問題。

I guess, you wouldn't comment on the name of this customer or the application and also how fast to ramp it.

我想，您不會評論該客戶或應用程式的名稱以及其提升速度。

We -- of course, we cannot disclose the customer's name and also application.

當然，我們不能透露客戶的姓名和申請。

However, we are not in the development stage.

但是，我們還沒有處於開發階段。

We actually -- we began shipping our 14-nanometer products in 1Q last quarter, February time frame.

實際上，我們在上個季度（即 2 月）第一季開始出貨 14 奈米產品。

So we are now entering into the production stage.

所以我們現在進入了生產階段。

And we are now engaged with more [defined] customers.

我們現在正在與更多[明確]客戶合作。

We're still on (inaudible) stage.

我們仍處於（聽不清楚）舞台上。

And the next one is from Roland Shu from Citigroup.

下一位來自花旗集團的 Roland Shu。

So first question is for the depreciation.

所以第一個問題是折舊。

Qi Dong Liu said that the overall depreciation would be increased -- would be flat to increase about 5%.

劉啟東表示，整體折舊將會增加－將持平，增加5%左右。

But last quarter, you talked about to be increased by 5% to 10%.

但上個季度，你談到要增加 5% 到 10%。

So why is the change?

那麼為什麼會發生這樣的變化呢？

Well, again, I think it has something to do with the momentum of our ramp in new capacity.

嗯，我認為這與我們新增產能的勢頭有關。

But basically, we are talking about much less increase compared to that of 2015.

但基本上，我們談論的增幅與 2015 年相比要少得多。

So I think 5% to 0% is our new increase range.

所以我認為5%到0%是我們新的成長幅度。

Okay.

好的。

So how about for the quarterly, by quarterly?

那麼按季度、按季度怎麼樣？

Pretty flattish.

相當扁平。

Okay.

好的。

Yes.

是的。

Second question is for the 28-nanometer.

第二個問題是針對28奈米的。

I mean, going forward, if 28-nanometer demand is still weak, how are you going to prioritize to allocate 28-nanometer capacity in Taiwan and in China?

我的意思是，展望未來，如果28奈米需求仍然疲軟，那麼你將如何優先配置台灣和中國的28奈米產能？

In -- yes, actually, the -- so we have very good demand -- in general, we have very good demand on our 28-nanometer poly-SiON version.

是的，實際上，所以我們有非常好的需求，總的來說，我們對 28 奈米多晶矽版本有非常好的需求。

And so our next phase 28-nanometer capacity expansion will be on the poly-SiON version on the -- at the Xiamen fab.

因此，我們下一階段的 28 奈米產能擴充將在廈門晶圓廠的多晶矽版本上進行。

So that is also aligned with our customer engagement in China and the other areas.

因此，這也與我們在中國和其他地區的客戶參與度一致。

So for -- if I'm right, you said for the next 28-nanometer capacity expansion in Xiamen will be for the poly-SiON only.

如果我是對的，您說廈門下一個 28 奈米產能擴張將僅用於多晶矽。

So you are not going to build High-K/Metal Gate in China in the near term?

那麼您近期不打算在中國建造 High-K/Metal Gate 嗎？

Yes.

是的。

For the 2017, yes, that's correct.

對於2017年來說，是的，這是正確的。

Okay.

好的。

So how about in time for 2018?

那麼2018年怎麼樣呢？

Yes.

是的。

That quite depends on -- depend on our customers' engagement because, currently, we already have a 26K High-K/Metal Gate versions right now in our 12A Tainan campus.

這完全取決於 - 取決於我們客戶的參與度，因為目前，我們在台南 12A 園區已經擁有 26K High-K/Metal Gate 版本。

So we believe with this 26K per month capacity, we can fulfill.

因此，我們相信憑藉每月 26K 的產能，我們能夠滿足。

We can fulfill and supply our customers' need in the short-term range.

我們可以在短期內滿足和供應客戶的需求。

Okay.

好的。

So this question is for the 14-nanometer.

所以這個問題是針對14奈米的。

So now you are in (inaudible) now.

所以現在你就在（聽不清楚）。

The capacity -- in the last quarter, you talked about maybe 2,000 to 3,000 wafer per month.

產能－在上個季度，您談到每月可能 2,000 到 3,000 片晶圓。

So what's your capacity expansion plan for 14-nanometer?

那你們14奈米的產能擴張計畫是什麼？

And when do you think it will reach economies of scale of 14-nanometer?

您認為什麼時候才能達到 14 奈米的規模經濟？

Yes.

是的。

We currently have around 2,000 wafer per month capacity.

我們目前每月產能約 2,000 片晶圓。

And based on customer engagements, they are still in test vehicle verification stage.

根據客戶的參與，他們仍處於測試車輛驗證階段。

So we think -- we believe with this 2K per month capacity, we can support our current customers' needs.

所以我們認為，我們相信憑藉每月 2K 的產能，我們可以滿足當前客戶的需求。

So for the short term, we don't have plan to expand meaningful 14-nanometer capacity.

因此，短期內我們沒有計劃擴大有意義的 14 奈米產能。

Okay.

好的。

I then last question is, recently your wafer price has been up a lot.

我最後一個問題是，最近你們的晶圓價格漲了很多。

So what's the impact to your gross margin?

那麼這對你的毛利率有什麼影響呢？

And how are you going to react for this wafer price increase?

您對晶圓價格上漲有何反應？

And how do you think about the wafer price in the second half?

您如何看待下半年晶圓價格？

Yes, we already -- we track the wafer substrate price rising.

是的，我們已經 - 我們追蹤晶圓基板價格的上漲。

And we have taken many costs down actions.

我們已經採取了許多降低成本的行動。

And so we already -- we have some (inaudible) activities along the way.

因此，我們已經開展了一些（聽不清楚）活動。

So we can assault this wafer substrate price issue.

因此我們可以解決晶圓襯底價格問題。

Yes.

是的。

But for the wafer price up itself, what's the impact to your gross margin?

但晶圓價格本身上漲，對你們的毛利率有什麼影響？

Sometimes it depends on what kind of [primary] wafers, some specialty wafers.

有時這取決於什麼類型的[初級]晶圓，一些特種晶圓。

So it varies.

所以它有所不同。

We're talking about very few percentage points, less than 1 or 2 percentage points.

我們談論的是很少的百分點，不到 1 或 2 個百分點。

But then as we mentioned, we are working hard on cost reduction to even out their impact.

但正如我們所提到的，我們正在努力降低成本，以平衡其影響。

Okay.

好的。

Yes, understood.

是的，明白了。

Yes.

是的。

How do you think about the wafer price in the second half this year?

您如何看待今年下半年晶圓價格？

Based on our understanding, and it looks like it will continue to grow in the second half this year.

據我們了解，今年下半年預計還會持續成長。

Okay.

好的。

This is for both 12-inch and 8-inch?

這個12吋和8吋都可以用嗎？

It's mainly for 12-inch.

主要針對12吋。

Actually, for 6-inch and 8-inch, 6-inch is almost no growth from the wafer price.

實際上，對於6英寸和8英寸來說，6英寸幾乎沒有來自晶圓價格的增長。

And 8-inch, they're only a very minimum growth.

而8英寸，它們只是一個非常小的增長。

And 12-inch is -- there are some growth.

12 英吋也有一些增長。

And the next question is from Steven Pelayo from HSBC.

下一個問題來自匯豐銀行的 Steven Pelayo。

I'm trying to understand where 28-nanometer bottoms.

我試圖了解 28 奈米的底線在哪裡。

So you've guided it down sequentially.

所以你已經按順序引導它下來。

Have you tried to qualify what it will be as percentage of mix or sequential decline in the second quarter?

您是否嘗試過確定第二季混合百分比或連續下降的百分比？

In the second quarter, yes, we -- on the 28-nanometer, we have some, yes -- (inaudible) -- we just guide the 2Q '17 on 28-nanometer revenue contribution will be in mid-teens.

在第二季度，是的，我們 - 在 28 奈米方面，我們有一些，是的 - （聽不清楚） - 我們剛剛指導 2017 年第二季度 28 奈米的收入貢獻將在十幾歲左右。

Okay.

好的。

I guess it was 17% in the first quarter.

我猜第一季是 17%。

So it doesn't look like it's falling off that significantly.

所以看起來並沒有那麼明顯的下降。

I guess, maybe it falls to the 15% or something.

我想，也許會下降到 15% 左右。

Okay.

好的。

I'm curious, just a longer-term question.

我很好奇，只是一個長期的問題。

You have seen some negative cash flow for a couple of years now.

幾年來你已經看到一些負現金流。

And it sounds like a bit slower ramp but you're also rolling off some appreciation in Taiwan.

聽起來好像有點慢，但台灣的升值也有所下降。

Can you talk a little bit about maybe some the longer-term goals and the business model that maybe you're trying to put into place to try to get you back to positive free cash flow?

您能否談談您可能正在嘗試實施的一些長期目標和商業模式，以試圖讓您恢復正的自由現金流？

Is there any changes planned over the next couple of years that will be different than the last couple of years when it comes to free cash flow?

在自由現金流方面，未來幾年是否計劃進行任何與過去幾年不同的變化？

I think today is many focus on quality -- I mean, it's probably not the most ideal platform to talk about it, but what I can say is, first of all, we are paying out TWD 0.50 in cash, which is a pretty high payout ratio compared to the EPS of last year.

我認為今天很多人都關注品質——我的意思是，這可能不是談論它的最理想的平台，但我可以說的是，首先，我們以現金支付 TWD 0.50，這是一個相當高的金額。與去年每股收益相比的派息率。

And UMC is also very frequent share buyback company.

而聯電也是股份回購非常頻繁的公司。

So from time to time we do that.

所以我們有時會這樣做。

And certainly, we will take advantage of any positive cash flow to enhance our overall return.

當然，我們將利用任何正現金流來提高我們的整體回報。

I think that's all I can answer you today.

我想這就是我今天能回答你的全部了。

QSMC has gone public to say CapEx to sales will remain in the 30% to 35% range for the foreseeable future.

QSMC 公開表示，在可預見的未來，資本支出佔銷售額的比例將維持在 30% 至 35% 的範圍內。

Do you have any kind of capital intensity targets for the next few years?

未來幾年有什麼資本強度目標嗎？

We are mainly coming from self-sustainable foundry.

我們主要來自自給自足的鑄造廠。

Basically, average CapEx shouldn't be more than our total self-generate cash.

基本上，平均資本支出不得超過我們自創現金總額。

Okay.

好的。

And last question is, QSMC is definitely rolling off of some depreciation burdens for their 28-nanometer given that they've done this for, I don't know, 5, 6 years.

最後一個問題是，QSMC 肯定會減輕 28 奈米的一些折舊負擔，因為我不知道他們已經這樣做了 5、6 年了。

I'm curious if you're seeing any more intense pricing pressure, that 28-nanometer, if some of the decline in revenue could also be due to pricing in addition to pure wafers.

我很好奇您是否會看到 28 奈米技術面臨更大的定價壓力，收入下降的部分原因是否也可能是由於純晶圓之外的定價造成的。

Yes.

是的。

Our price declined.

我們的價格下降了。

Q1 already reflect a certain degree of price reduction and by also coming from mix shift as well.

第一季已經反映出一定程度的價格下降，也來自於混合轉變。

So that's already happened in first quarter.

所以這在第一季就已經發生了。

For second quarter, our Others is flattish in U.S. dollars despite the [Russian] ruble mix.

第二季度，儘管[俄羅斯]盧布混合，但我們的其他貨幣以美元計價持平。

And the next one is from Rick Hsu from Daiwa Securities.

下一位是來自大和證券的 Rick Hsu。

I still have some question about -- a question about your first quarter gross margin.

我還有一些問題——關於你們第一季毛利率的問題。

Because I remember your guidance was talking about only mid-teens.

因為我記得你的指導只討論了青少年時期。

But if I don't remember wrong, you actually reported about 20% gross margin for your Foundry business in Q1.

但如果我沒記錯的話，你們實際上報告第一季代工業務的毛利率約為 20%。

So I guess this 5% difference, it can't be something more than just depreciation cost.

所以我猜這 5% 的差異不可能只是折舊成本造成的。

Do you have any kind of overhead cost savings as well for Q1?

第一季您是否也節省了任何管理費用？

Now cost saving, of course, is continuous.

當然，現在成本節約是持續的。

But the meeting guidance could be referring to 17%.

但會議指導可能指的是 17%。

And we end up, we said 19.9%.

最終，我們說的是 19.9%。

Okay.

好的。

All right.

好的。

Fair enough.

很公平。

Then some numbers I want to clarify.

然後我想澄清一些數字。

I think you mentioned about 39.5K total capacity for 28-nanometer this year.

我想你提到今年28奈米的總產能約為39.5K。

Does that include the 5K for -- that the JVs had?

這是否包括合資企業擁有的 5K？

Yes.

是的。

Yes, 5K is included.

是的，包括 5K。

All right.

好的。

Then you also talk about your 28-nanometer revenue contribution target by the end of this year.

然後您也談到了今年年底前28奈米的收入貢獻目標。

Can you remind me what the target is?

你能提醒我目標是什麼嗎？

That is 4Q.

那是4Q。

It's not for the -- the 4Q this year was targeting the 20% revenue share from 28-nanometer.

這並不是為了——今年第四季的目標是 28 奈米技術佔 20% 的收入份額。

Okay.

好的。

All right.

好的。

That's very clear.

這非常清楚。

So by Q4 this year, you still have 20% of revenue contribution from 28-nanometer?

那麼到今年第四季，你們還有20%的營收貢獻來自28奈米？

Yes.

是的。

All right.

好的。

And just a little bit follow up on the 14-nanometer.

接下來是 14 奈米的一些後續工作。

Can you elaborate this a little bit?

能詳細說明一下嗎？

What kind of applications you are doing for mass production?

你們正在做什麼樣的量產應用？

Yes, we -- because we are now only at one customer in production so we cannot comment on that.

是的，我們——因為我們現在只有一個客戶在生產，所以我們不能對此發表評論。

And the next one is from Sebastian Hou from CLSA.

下一篇來自里昂證券的 Sebastian Hou。

So my first question is to follow on your 28-nanometer.

所以我的第一個問題是關注你們的 28 奈米。

Can you quantify how much of your 28-nanometer revenue would decline in second quarter?

您能否量化第二季 28 奈米收入將下降多少？

Or could you give us the utilization rate in first quarter and second quarter, respectively, for 2018?

或者您能否分別提供2018年第一季和第二季的使用率？

Yes.

是的。

Our 28-nanometer, our revenue contribution in the 2Q '17 will be again in the mid-teens percentage range.

我們的 28 奈米技術在 17 年第二季的收入貢獻將再次達到中位數百分比範圍。

And I'm not sure if I answer your question?

而且我不確定我是否回答了你的問題？

Yes.

是的。

And I think in the previous quarter is you also gave us some -- give us about the utilization rate.

我認為在上個季度，你們也給了我們一些關於利用率的資訊。

So how about the UTR on 28-nanometer in first quarter and second quarter?

那麼第一季和第二季28奈米的UTR情況如何呢？

Yes, our UTR in the first quarter is around 83%.

是的，我們第一季的UTR在83%左右。

And we actually -- we have some conversion with our 20-nanometer and 40-nanometer.

事實上，我們對 20 奈米和 40 奈米進行了一些轉換。

So I can only give you the number in the 2Q together with 40-nanometer and 28-nanometer.

所以我只能給你2Q的數字以及40奈米和28奈米。

Internationally, we'll be around 80% range.

在國際上，我們的範圍將在 80% 左右。

So 80% for 40-nanometer and 28-nanometer combined?

那麼 40 奈米和 28 奈米合計為 80% 嗎？

Yes.

是的。

Okay.

好的。

And how is your 40-nanometers tracking in second quarter?

第二季 40 奈米進展如何？

Because earlier, you talked about your legacy 12-inch nodes, which I presume should be referring to 55, 65 or 80, 90.

因為之前您談到了傳統的 12 吋節點，我認為應該指的是 55、65 或 80、90。

How about 40-nanometer in second quarter?

第二季40奈米怎麼樣？

We cannot comment on that.

我們無法對此發表評論。

Okay.

好的。

All right.

好的。

Then I think in your earlier -- I feel you mentioned about the second quarter strong.

然後我想在你早些時候 - 我覺得你提到了第二季度的強勁表現。

You also saw the connectivity demand.

您也看到了連線需求。

Can I assume that is Wi-Fi and Bluetooth mostly?

我可以假設主要是 Wi-Fi 和藍牙嗎？

We have combined our -- some mature nodes, 12-inch matured nodes.

我們結合了一些成熟的節點，12吋成熟的節點。

We expect there's somewhat growing demand in integrating the touch panel -- the touch expense driver combo solution.

我們預計整合觸控螢幕（觸控費用驅動器組合解決方案）的需求將會增加。

It's the CPTI and some other connectivity and some are SSD, solid state driver devices.

它是 CPTI 和一些其他連接，還有一些是 SSD、固態硬碟設備。

Okay.

好的。

Sorry, I was -- I understand that.

抱歉，我是──我明白。

I just want to know the specifics about connectivity.

我只是想知道有關連接的具體資訊。

So I think it's Wi-Fi and Bluetooth [mainly], right?

所以我認為它[主要]是 Wi-Fi 和藍牙，對吧？

Yes, yes.

是的是的。

Okay.

好的。

And we noticed that in your application breakdown, the Others segment has been growing pretty nicely in the past few quarters, both from quarter-on-quarter perspective and year-on-year perspective.

我們注意到，在您的申請細分中，無論從季度環比還是同比角度來看，其他細分市場在過去幾個季度都增長得相當不錯。

Can you share some colors with us on what specific product is there and how's the outlook going?

您能否與我們分享一些特定產品的顏色以及前景如何？

Please, sorry.

拜託，對不起。

Could you repeat your question again?

你能再重複一次你的問題嗎？

Okay.

好的。

So in your application breakdown, you have computer, communication, consumers, et cetera and also have the Others segments.

因此，在應用程式細分中，您有電腦、通訊、消費者等部分，還有其他部分。

And Others segment has been growing pretty nicely from year-on-year and quarter-on-quarter perspective for a couple of quarters already.

從同比和環比的角度來看，其他細分市場已經有幾個季度成長得相當不錯了。

And year-on-year growth pretty strong in first quarter, about 40%.

第一季較去年同期成長相當強勁，約 40%。

And I just wondered what's exactly inside there?

我只是想知道裡面到底是什麼？

And also how do you see this going forward?

您如何看待未來的發展？

Will this kind of momentum will continue?

這種勢頭會持續下去嗎？

Yes.

是的。

Yes, I understand.

是的我明白。

So the -- we do see a very strong demand on the automotive industry, automotive, especially in the power management, the power IC and some MCU, microcontroller.

所以——我們確實看到汽車產業對汽車的需求非常強勁，特別是在電源管理、電源IC和一些MCU、微控制器方面。

There's a very strong demand on that.

對此有非常強烈的需求。

Okay.

好的。

So your Others segment is mainly composed of automotive.

因此，您的其他部門主要由汽車組成。

So can we assume that automotive already accounts for, say, high single-digit of your total revenue?

那麼我們是否可以假設汽車業務已經佔您總收入的高個位數？

It's still less than 5%.

仍然低於5%。

Others also includes industrial, some industrial and automotive.

其他還包括工業，部分工業和汽車。

And we do see growing demand on that areas.

我們確實看到這些領域的需求不斷增長。

And the industrial, I guess, is also growing?

我想工業也在成長？

Yes.

是的。

Okay.

好的。

And last question is that, can you share with us with your UTR on 8-inch and 12-inch in first quarter and second quarter, respectively?

最後一個問題是，您能分別分享第一季和第二季8吋和12吋的UTR嗎？

Yes.

是的。

Our utilization rates in the 8-inch will be 24% around the full capacity and in the first quarter.

第一季我們的 8 吋產能利用率將達到 24%。

And for the 12-inch, it's around mid-80% range.

對於 12 吋來說，這個值大約在 80% 的範圍內。

For the second quarter, our 8-inch demand is still in the full capacity.

第二季度，我們的8吋需求仍然處於滿載狀態。

And almost the same situation here, for the 12-inch, the overall 12-inch utilization rate would be still in mid-80% range.

而這裡的情況也幾乎相同，對於12吋來說，整體12吋的利用率仍將處於80%左右的範圍內。

Ladies and gentlemen, we are running out of time.

女士們先生們，我們的時間不多了。

So we're taking the last question.

我們來回答最後一個問題。

And our last question is from Gokul Hariharan from JPMorgan.

我們的最後一個問題來自摩根大通的 Gokul Hariharan。

Just one quick question on 28-nanometer again.

又是一個關於 28 奈米的簡單問題。

You guys are expanding capacity.

你們正在擴大產能。

UMC seems to be expanding capacity even now.

聯華電子現在似乎仍在擴大產能。

Have you got capacity coming online in China from [MICA cloud]?

你們有[雲母雲]在中國上線的容量嗎？

Could you talk a little bit about -- I think it's been a couple quarters of decline in 28-nanometer revenue looks like.

您能否談談 - 我認為 28 奈米收入已經連續幾個季度下降了。

Can you talk a little bit about how the supply and demand is shaping up?

能談談供給和需求是如何形成的嗎？

And any comments that you have in terms of how this utilization on 28-nanometer recover has been going in the second half?

您對下半年 28 奈米製程的利用率有何評論？

What is your anticipation in terms of demand recovery?

您對需求復甦有何預期？

Or do we anticipate that there could be a reasonable chance that you might have to pull back a little bit on the capacity addition in 28-nanometer as we go to the second half of the year?

或者我們是否預計，隨著下半年的到來，你們可能不得不稍微縮減 28 奈米產能的增加？

Just as it's trend, we don't have a sufficient visibility to give it a number on the second half of 28-nanometer utilization rate and demand.

正如它的趨勢一樣，我們沒有足夠的可視性來給出下半年 28 奈米利用率和需求的數字。

But however, we are doing -- we are doubling our efforts to recover our 28-nanometer demands.

但無論如何，我們正在加倍努力來恢復我們的 28 奈米需求。

So we believe the -- it would take a few quarters to have a significant recovery of our 28-nanometer demand situation.

因此，我們相信，我們的 28 奈米需求狀況需要幾個季度才能顯著恢復。

Would that have an adverse impact on pricing and profitability given that it feels like there is, at least at the time being, there is some degree for oversupply on 28-nanometer in both in Taiwan and China?

鑑於至少目前看來，台灣和中國大陸的 28 奈米都存在一定程度的供應過剩，這是否會對定價和獲利能力產生不利影響？

It's -- yes, I can only say that it's a very dynamic market situation.

是的，我只能說這是一個非常活躍的市場狀況。

And however, we are -- based on our cost engagement and also UMC's 28-nanometer, our strengths, especially on the High-K/Metal Gate, actually our High-K/Metal Gate version we delivered are outperforming them in this industry's production.

然而，基於我們的成本投入以及UMC 的28 奈米，我們的優勢，尤其是在High-K/金屬閘極方面，實際上我們提供的High-K/金屬閘極版本在該產業的生產中表現優於他們。

So it will take a while, but we believe that we are coming back on the 28-nanometer health and demand situation.

因此，這需要一段時間，但我們相信我們正在恢復 28 奈米的健康狀況和需求狀況。

Okay.

好的。

And maybe if I can squeeze in a last question for Qi Dong.

也許我可以向啟東問最後一個問題。

On the operating expenses, given that you have 40-nanometer R&D plus capacity expansion in the Xiamen fab, are we going to see OpEx remaining fairly stable in this TWD 6 billion to TWD 6.5 billion per quarter kind of level?

在營運支出方面，考慮到廈門工廠有 40 奈米研發加上產能擴張，我們是否會看到營運支出維持相當穩定在每季 60 億至 65 億新台幣的水平？

Or are we going to see anything moving up in the next couple of quarters?

或者我們會在接下來的幾個季度看到任何進展嗎？

Yes, we will be stable.

是的，我們會穩定。

We're trying to control in the current range.

我們正在努力控制在目前的範圍內。

So hopefully, it won't go up.

所以希望它不會上漲。

We thank you for all your questions.

我們感謝您提出的所有問題。

That concludes today's Q&A session.

今天的問答環節到此結束。

And now I'll turn things over to UMC Head of IR for closing remarks.

現在我將把事情交給 UMC IR 主管做總結發言。

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, Mr. Lin.

謝謝你，林先生。

And ladies and gentlemen, that concludes our conference for 2017 first quarter.

女士們、先生們，我們 2017 年第一季的會議到此結束。

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

我們感謝您參加 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。

Goodbye.

再見。