聯華電子 (UMC) 2017 Q3 法說會逐字稿

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

歡迎大家參加聯華電子 2017 年第三季度財報電話會議。

All lines have been placed on mute to prevent background noise.

所有線路都已靜音以防止背景噪音。

After the presentation, there will be a question-and-answer session, please follow the instructions given at that time.

演講結束後，會有問答環節，請按照當時給出的說明進行。

if you would like to ask a question.

如果你想問一個問題。

And for your information, this conference call is now being broadcasted live over the Internet.

為了您的信息，這次電話會議現在正在互聯網上進行現場直播。

Webcast replay will be available within an hour after the conference is finished.

網絡直播重播將在會議結束後一小時內提供。

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

請訪問我們的網站 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 Third Quarter of 2017.

謝謝並歡迎參加 2017 年第三季度的聯華電子電話會議。

I'm joined by Mr. Jason Wang, the President of UMC and Mr. Chi-Tung Liu, the CFO of UMC.

聯電總裁 Jason Wang 先生和 UMC 首席財務官劉志東先生加入了我的行列。

In a moment, we will hear our CFO present the third quarter financial results, followed by our President's message to address UMC's forecast and the fourth quarter 2017 quidance.

稍後，我們將聽到我們的首席財務官介紹第三季度的財務業績，然後是我們的總裁關於聯電的預測和 2017 年第四季度的報告。

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

一旦我們的總裁和首席財務官完成他們的發言，就會有一個問答環節。

UMC's quarterly financial reports are available at our website, www.umc.com under the Investors Financial session.

UMC 的季度財務報告可在我們的網站 www.umc.com 的 Investors Financial 會議下獲得。

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

在本次會議期間，我們將根據管理層當前的預期和信念做出前瞻性陳述。

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

有關這些風險，請參閱聯電向美國 SEC 和中華民國證券當局提交的文件。

Now, I would like to introduce UMC's CFO, Mr. Chi-Tung Liu, to discuss our third quarter 2017 results.

現在，我想介紹聯電的首席財務官劉志東先生來討論我們 2017 年第三季度的業績。

Thank you, Michael.

謝謝你，邁克爾。

I would like to go through the third quarter 2017 Investor Conference presentation material, which can be downloaded from our website.

我想瀏覽一下 2017 年第三季度投資者大會的演示材料，可以從我們的網站下載。

Starting on Page 3, the third quarter of 2017 consolidated revenue was NT$37.7 billion with gross margin at around 17.5%.

從第 3 頁開始，2017 年第三季度綜合收入為新台幣 377 億元，毛利率約為 17.5%。

The net income attributable to the stockholder of the parent was NT$ 3.47 billion.

歸屬於母公司股東的淨利潤為新台幣34.7億元。

And the earnings per ordinary shares were NT$ 0.28 and utilization rates stay unchanged compared to the previous quarter at around 96% in the third quarter.

第三季度每股普通股收益為新台幣0.28元，使用率與上一季度相比保持不變，約為96%。

On Page 4 is our statement of income on a quarter-over-quarter basis.

第 4 頁是我們的季度收益表。

Revenue basically stay flat around NT$37.7 billion with a gross margin around 17.5% or NT$ 6.6 billion.

收入基本持平於新台幣 377 億元左右，毛利率約為 17.5% 或新台幣 66 億元。

With contribution from non-operating income, our net income grew 66.7% quarter-over-quarter to NT$ 2.46 billion and EPS in the third quarter was NT$0.28 per share or NT$0.046 per ADS.

在營業外收入的貢獻下，我們的淨利潤環比增長 66.7% 至新台幣 24.6 億元，第三季度每股收益為新台幣 0.28 元或每股 ADS 新台幣 0.046 元。

On Page 5 is our year -- accumulative income statement.

第 5 頁是我們的年度——累計損益表。

Year-over-year, we see a 2.8% revenue growth to NT$112.6 billion and gross profit was NT$20.7 billion and net income for the first 9 months of 2017 is NT$ 5.4 billion or 4.8 percentage point and EPS for the first 3 quarters NT$0.64 per share.

收入同比增長 2.8% 至新台幣 1126 億元，毛利為新台幣 207 億元，2017 年前 9 個月淨利潤為新台幣 54 億元或 4.8 個百分點，前 3 季度每股收益每股新台幣 0.64 元。

So, Page 6 is our balance sheet.

所以，第 6 頁是我們的資產負債表。

And cash has been continued to increase to NT$69.9 billion at the end of the third quarter and total stockholder equity is NT$214.4 billion.

第三季度末現金繼續增加至新台幣699億元，股東權益總額為新台幣2144億元。

On Page 7 is our operating segment report.

第 7 頁是我們的經營分部報告。

Majority of our numbers and in fact over 99% of the revenue coming from our wafer fabrication department or foundry and new business segments now are very small portion of the consolidated numbers.

我們的大部分數字，實際上超過 99% 的收入來自我們的晶圓製造部門或代工和新業務部門，現在僅佔合併數字的很小一部分。

So, on Page 8, our third quarter blended ASP remained flat compared to the previous quarter.

因此，在第 8 頁，我們第三季度的混合平均售價與上一季度相比持平。

And for the revenue breakdown on Page 9, euro is around 8% and the Japan is about 2%.

對於第 9 頁的收入細分，歐元約為 8%，日本約為 2%。

For Asia and North America basically remained unchanged.

亞洲和北美基本保持不變。

On Page 10, IDM account for 10% of our total revenue and the rest is fabless, is [in-house].

在第 10 頁，IDM 占我們總收入的 10%，其餘的是無晶圓廠，是 [in-house]。

And on page 11, communication is still our largest segment, accounts for 47% of the total pie, with consumer remained around 31%.

在第 11 頁，通信仍然是我們最大的部分，佔總蛋糕的 47%，而消費者仍保持在 31% 左右。

On the technology breakdown, Page 12, we see 14-nanometer continue to be about 1% of our total revenue and 28-nanometer is about 15%.

在技術細分方面，第 12 頁，我們看到 14 納米繼續占我們總收入的 1% 左右，28 納米約為 15%。

On Page 13, we provide capacity details on a quarterly basis, and we still expect to see continued growth in capacity, mainly coming from Fab 12X in Xiamen.

在第 13 頁，我們按季度提供產能詳情，我們仍預計產能將持續增長，主要來自廈門的 Fab 12X。

So, in the Wavetek Fab for both 8 and also 8S, we will also see some minor increase in capacity.

因此，在 Wavetek Fab 8 和 8S 的工廠中，我們也會看到產能略有增加。

And for CapEx in 2017, we have revised down to NT$1.7 billion in the previous quarter and now the number still stay the same, around NT$1.7 billion for 2017.

而對於 2017 年的資本支出，我們在上一季度已下調至新台幣 17 億元，現在仍保持不變，2017 年約為新台幣 17 億元。

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

關於聯華電子 2017 年第三季度業績摘要，更多詳情請參閱我們網站上發布的報告。

I would now turn the call over to President UMC, Mr.Wang.

我現在把電話轉給聯華電子總裁王先生。

Okay, thank you, Chi-Tung.

好的，謝謝你，智東。

Good evening, everyone.

各位晚上好。

Here I would like to update the third quarter operating results.

在這裡，我想更新第三季度的經營業績。

In the third quarter of 2017, UMC's foundry revenue was NT$37.61 billion.

2017年第三季度，聯電的代工收入為新台幣376.1億元。

In Q3 '17, we continued to sustain stable utilization rate across our 8-inch and 12-inch mature technologies, driven by a strong chip demand in consumer and computing peripheral segments.

在 17 年第 3 季度，我們的 8 英寸和 12 英寸成熟技術繼續保持穩定的利用率，這得益於消費和計算外圍領域強勁的芯片需求。

Our 8-inch facility remained nearly full while mature 12-inch fab operated above 90% capacity, lifting overall wafer shipment to 1.75 million 8-inch equivalents.

我們的 8 英寸工廠幾乎滿負荷運轉，而成熟的 12 英寸晶圓廠產能超過 90%，將整體晶圓出貨量提升至 175 萬片 8 英寸當量。

Our 12-inch fab in Xiamen, Fab 12X, also began shipping 28-nanometer wafers, with a yield rate and chip performance reaching the same quality as our Tainan facility 12A.

我們在廈門的 12 英寸晶圓廠 Fab 12X 也開始出貨 28 納米晶圓，其良率和芯片性能達到與台南工廠 12A 相同的質量。

Looking into Q4 '17, we do expect the business environment to decline, due to the typical year-end seasonal adjustment.

展望 17 年第四季度，由於典型的年終季節性調整，我們確實預計商業環境將會下降。

In addition, we foresee 28-nanometer High-K/Metal Gate demand to be soften.

此外，我們預計 28 納米 High-K/Metal Gate 的需求將會疲軟。

As we develop and redefine our new process technology according to market demand, we do expect to enhance UMC's market share by penetrating into emerging application including IoT, 5G wireless and industrial segments, which will spur new waves of growth opportunities.

隨著我們根據市場需求開發和重新定義我們的新工藝技術，我們確實希望通過滲透到包括物聯網、5G 無線和工業領域在內的新興應用來提高聯華電子的市場份額，這將激發新一波的增長機會。

UMC's recent selection as a Dow Jones Sustainability Index global component for the tenth consecutive year and also highlighted our active involvement in environment protection and sustainable manufacturing practices, demonstrating our commitment towards setting higher corporate social responsibility standards.

聯華電子最近連續第十年入選道瓊斯可持續發展指數全球成分，也凸顯了我們對環境保護和可持續製造實踐的積極參與，表明我們致力於製定更高的企業社會責任標準。

That was my third quarter results.

那是我第三季度的業績。

Now let me go over the fourth quarter 2017 guidance.

現在讓我回顧一下 2017 年第四季度的指導。

Our wafer shipments will show a decrease about 3% to 4%.

我們的晶圓出貨量將下降約 3% 至 4%。

ASP in U.S. dollars will decline by approximately 1%.

以美元計的 ASP 將下降約 1%。

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

毛利率將在十幾歲的百分比範圍內。

And capacity utilization rate will be in the high 80% range.

產能利用率將在80%的高位區間。

For Foundy CapEx of 2017, it will be $1.7 billion.

對於 2017 年的 Foundy CapEx，它將是 17 億美元。

I will conclude my comments.

我將結束我的評論。

Thank you all for your attention, and now we are ready for questions.

謝謝大家的關注，現在我們準備好提問了。

Thank you, Mr. Wang.

謝謝王先生。

And we would now begin our question-and-answer session.

我們現在將開始我們的問答環節。

(Operator Instructions).

（操作員說明）。

The first question is from Randy Abrams from Credit Suisse.

第一個問題來自瑞士信貸的 Randy Abrams。

Go ahead, please.

請繼續。

Wanted to ask the first question on the CapEx.

想問關於資本支出的第一個問題。

This year, year- to- date, you've spent about NT$1.1 billion.

今年至今，你已經花費了大約11億新台幣。

So, for fourth quarter, I'm curious if you still see the big spending hitting and where that's going to at the Xiamen fab.

所以，對於第四季度，我很好奇你是否仍然看到大筆支出受到衝擊，以及廈門工廠的去向。

And if you could give an initial view on 2018 CapEx, if -- with 28-nanometer a bit lower if you can be more conservative if you have kind of a baseline view for next year?

如果你能對 2018 年的資本支出給出初步看法，如果 - 如果你對明年有某種基線看法，你可以更保守一點，28 納米會低一點嗎？

We do expect CapEx would decline meaningfully in 2018.

我們確實預計 2018 年資本支出將顯著下降。

However, the actual number of the budget for the next year will be finished -- finalized probably towards the end of this year after the board's approval and we can share that after the -- in the next conference call.

但是，明年預算的實際數量將在董事會批准後於今年年底完成，我們可以在下一次電話會議中分享。

For Q4 CapEx, this is more cash based, more related to payment schedule more than the capacity ramp.

對於第四季度的資本支出，這更多是基於現金，與付款計劃的相關性比產能提升更多。

So, we do have some scheduled payment in Q4.

所以，我們確實在第四季度有一些預定的付款。

So, most likely the number NT$1.7 billion is likely to still stay the same for 2017.

因此，17 億新台幣的數字很可能在 2017 年仍保持不變。

Okay.

好的。

And the follow-up to that, your 12-inch utilization still was 80%, I guess a little lower in fourth quarter, could you give maybe an outlook for the 12-inch?

後續，你們的 12 英寸利用率仍然是 80%，我猜第四季度會低一些，您能否給出 12 英寸的前景？

Just how you see utilization in the next few quarters and also how you see the 28 businesses, it's 15% of revenue, if you could give maybe a percentage of revenue over next couple of quarters, maybe where you see it bottoming out on that side?

就你如何看待未來幾個季度的利用率以及你如何看待這 28 家業務而言，它佔收入的 15%，如果你能在接下來的幾個季度中提供一定比例的收入，也許你會看到它在那一邊觸底反彈?

Let me just first address the 28-nanometer revenue contribution right now.

讓我先談談現在 28 納米的收入貢獻。

For the Q3 '17, the contribution is about 16%.

對於 17 年第三季度，貢獻約為 16%。

However, we do expect 28-nanometer High-K recovery will be challenging.

然而，我們確實預計 28 納米 High-K 的恢復將具有挑戰性。

So -- and while we expect after the release of 28 HPC plus and 22 ULP platform in 2018 and and we should see some recovery in the High-K area.

所以——雖然我們預計在 2018 年發布 28 HPC plus 和 22 ULP 平台之後，我們應該會看到 High-K 領域的一些復甦。

For the Poly-SiON, the demand remain pretty robust and we know we have a high expectation of 28 poly-SiON area.

對於 Poly-SiON，需求仍然相當強勁，我們知道我們對 28 個 poly-SiON 面積有很高的期望。

So, that's in the High-K.

所以，那是在High-K。

The whole year, the utilization will be -- all Q remain pretty healthy as a company expect 28 High-K.

全年，利用率將 - 所有 Q 保持相當健康，因為公司預計 28 High-K。

So, we think that in current year, the overall utilization growth will probably be in line with overall foundry industry.

因此，我們認為今年整體利用率增長可能與整體鑄造行業保持一致。

Okay, maybe a view on [current] CapEx and OpEx.

好的，也許是對 [當前] 資本支出和運營支出的看法。

The CapEx, when you get that return in business on the 22 and also the 28 HPC plus, do you expect to or back to tracking operating cash flow.

資本支出，當您在 22 和 28 HPC plus 獲得業務回報時，您是否期望或返回跟踪運營現金流。

So once you refill the fab with those new applications, does the CapEx come back up or do you think sustainably become lower?

因此，一旦您用這些新應用程序重新填充晶圓廠，資本支出會回升還是您認為可持續降低？

And then I'm curious, the same on OpEx without the Investment in, say, 7-nanometer and a bit less aggressive on 14, if you now see after looking a few months, they give -- you could do any either Cap up Ex could go even a bit lower?

然後我很好奇，在沒有投資的情況下，OpEx 也一樣，比如 7 納米，在 14 納米上稍微不那麼激進，如果你在看了幾個月後現在看到，他們給了 - 你可以做任何一個 Cap up前任還能再低一點嗎？

Well, our CapEX strategies will align with our target of market segment and the growth target line.

好吧，我們的資本支出戰略將與我們的細分市場目標和增長目標線保持一致。

And I think at this point, we add a good level of the current market position.

而且我認為在這一點上，我們添加了當前市場地位的良好水平。

So our near-term hierarchy is to strengthen our financial flexibility and the cost structure.

因此，我們近期的層次結構是加強我們的財務靈活性和成本結構。

So, I don't see any -- the changes in any time soon.

所以，我看不到任何變化——很快就會發生變化。

However, it does change the market, in the situation, we'll update that.

但是，它確實改變了市場，在這種情況下，我們會更新它。

For the operating expense, right now what we do is we prioritize our R&D resource (inaudible) as we reported last time and [told] to a specialty and a larger derivatives technologies.

對於運營費用，現在我們所做的是我們優先考慮我們的研發資源（聽不清），正如我們上次報告的那樣，並[告訴]專業和更大的衍生技術。

So, for the near term, we do expect operating expense to remain relatively flat.

因此，在短期內，我們確實預計運營費用將保持相對平穩。

Okay.

好的。

And I guess, do you expect to sustain flatter, could you -- if you don't need as much advance technology CapEx or do you think you have enough projects on specialty that have maybe kind of stayed in that flattish range?

而且我猜，您是否期望維持更平坦，可以嗎？如果您不需要那麼多先進的技術資本支出，或者您認為您有足夠的專業項目可能會保持在該平坦範圍內嗎？

Yes, I mean that's only on R&D side.

是的，我的意思是這只是在研發方面。

I think we do prioritize those resources to specialty and the larger derivative line, the 22 HPC plus and 22 ULP, those will continue with the area we focus on.

我認為我們確實將這些資源優先用於專業和更大的衍生產品線，22 HPC plus 和 22 ULP，這些將繼續用於我們關注的領域。

In addition to that, we also invest in the manufacturing productivity improvement as well as the quality assistance.

除此之外，我們還投資於提高製造生產力以及質量援助。

So, those areas require continuous investment in both areas.

因此，這些領域需要在這兩個領域進行持續投資。

So, at this point, in near-term, we expect to remain flat.

因此，在這一點上，在短期內，我們預計將保持平穩。

And next, we'll have Bill Lu from UBS for questions.

接下來，我們將請瑞銀的 Bill Lu 提問。

Go ahead, please.

請繼續。

For the fourth quarter, can you also give us guidance on operating margin?

對於第四季度，您能否也給我們關於營業利潤率的指導？

For the fourth quarter, the operating margin, I think at this point for the operating, probably we will try to ensure is operating profitable.

對於第四季度的運營利潤率，我認為在這一點上對於運營來說，我們可能會盡量確保運營盈利。

For the profit margin wise, I think it will decline from the Q3, but I -- we are probably not going to comment on its actual percentage.

就利潤率而言，我認為它會從第三季度開始下降，但我 - 我們可能不會評論它的實際百分比。

Okay.

好的。

That's fair enough.

這很公平。

I guess what I'm trying to get at is 4Q will be probably in the lowest single digits in terms of operating margins and typically 1Q is seasonally weak as well.

我想我想要得到的是第四季度的營業利潤率可能是最低的個位數，而且通常第一季度也是季節性疲軟的。

Are there things that you can do to improve your breakeven levels in the next, say, several quarters?

在接下來的幾個季度中，您可以做些什麼來提高您的盈虧平衡水平？

It will be probably very challenging to improve in the shorter time, but we are doing everything we can to stay positive.

在更短的時間內改善可能非常具有挑戰性，但我們正在盡一切努力保持積極態度。

And right now Q4 is challenging, but as far as going to Q1, we are too early to comment about this, but as far as the business involvement goes as we know, for seasonal reasons, Q1 will probably not likely to improve.

現在第四季度充滿挑戰，但就第一季度而言，我們對此發表評論還為時過早，但就我們所知的業務參與而言，由於季節性原因，第一季度可能不會有所改善。

And now only for seasonal reason, also because Q1 has a fewer working days and we do try to do some Q maintenance shutdown.

現在僅出於季節性原因，也因為第一季度的工作日較少，我們確實嘗試進行一些 Q 維護關閉。

So, that will also affect that.

所以，這也會影響到這一點。

Got it.

知道了。

A couple of questions on 28-nanometers.

關於 28 納米的幾個問題。

One is, I'm not sure if I heard you right, but it looks like High-K/Metal Gate is challenging, but I think you said that poly-SiOns remain actually pretty good, is poly up quarter-on-quarter in 4Q?

一個是，我不確定我是否聽錯了，但看起來 High-K/Metal Gate 具有挑戰性，但我認為你說多晶矽仍然相當不錯，多晶矽在季度環比增長4Q？

No, I mean the poly stay pretty flat but it is higher than what we expected originally.

不，我的意思是多邊形保持相當平坦，但它比我們最初預期的要高。

High-K is much weaken and so I would just say compared relatively, the poly-SiON remains healthier than High-K.

High-K 要弱得多，所以我只想說相對而言，poly-SiON 仍然比 High-K 更健康。

Got it.

知道了。

And then my second question on 28.

然後我在 28 日的第二個問題。

Is -- you said that High-K demand will come back when you do HPC plus and 22-nanometers.

是——你說當你做 HPC plus 和 22 納米時，High-K 的需求會回來。

I think last quarter you said that that will take 2, 3 quarters.

我認為上個季度你說過這將需要 2、3 個季度。

Is the right timing for that to ramp back up still at the middle of next year?

明年年中恢復增長的正確時機是否仍然合適？

Our expectation is on the 28 HPC plus and 22 ULP platform release.

我們的期望是 28 HPC plus 和 22 ULP 平台版本。

And the project is on track.

該項目正在按計劃進行。

The engineering project is on track for us to release the 28 HPC plus by mid-2018.

我們的工程項目有望在 2018 年年中發布 28 HPC plus。

And for the 22 ULP, that will probably follow -- be ready, we hope that would be ready 6 months after that.

對於 22 ULP，這可能會隨之而來——準備好，我們希望在那之後的 6 個月內準備好。

Okay.

好的。

So, when should we expect to see meaningful revenues from the HPC platform?

那麼，我們應該在什麼時候看到 HPC 平台帶來可觀的收入呢？

Our expectation is that we should see something in the second half of 2018 from the HPC plus and we will continue to see increase after the 22 ULP release.

我們的預期是，我們應該在 2018 年下半年從 HPC plus 中看到一些東西，並且在 22 ULP 發布後我們將繼續看到增長。

Got it.

知道了。

And then one last question, which is a follow-up on Randys question.

然後是最後一個問題，這是 Randys 問題的後續問題。

If I look at your R&D expenses, even if you don't cut hedge, the move from the leading [edge] to the specialty applications.

如果我看看你的研發費用，即使你不削減對沖，從領先 [edge] 轉向專業應用。

I would assume that that would imply some cost (inaudible) in terms of IP, in terms of tools, in terms of [mass] costs and things like that.

我認為這意味著在知識產權、工具、[質量] 成本等方面存在一些成本（聽不清）。

Can you talk a little bit more about that?

你能多談談嗎？

Well, I think you're right.

嗯，我認為你是對的。

We have similar expectations, but we do have some intensive review in those areas.

我們有類似的期望，但我們確實在這些領域進行了一些深入的審查。

At this point, we actually spent a lot more on the [net] costs than we expected, because going forward, we probably have more customer engagement than the first way.

在這一點上，我們實際上在 [淨] 成本上的花費比我們預期的要多得多，因為展望未來，我們可能比第一種方式擁有更多的客戶參與度。

We have one larger customer with higher volume.

我們有一個更大的客戶，數量更大。

And now you have multiple customer engagement.

現在您有多個客戶參與。

So, it's probably lot more activities from engineering standpoint, maybe from no basis is less, but from a engagement point of view, probably more activities.

因此，從工程的角度來看，活動可能更多，也許從根本上說是更少，但從參與的角度來看，可能是更多的活動。

So, that -- associated with that, we actually had some increase in the R&D expense.

因此，與此相關的是，我們實際上增加了研發費用。

So -- but, we are cautious about that.

所以——但是，我們對此持謹慎態度。

So, we hope that we can see some meaningful reduction in the operating expense.

因此，我們希望我們可以看到運營費用的一些有意義的減少。

But at this point, in the near term, we haven't really seen that yet.

但在這一點上，在短期內，我們還沒有真正看到這一點。

So -- but that is an area we're going to continue focus on.

所以 - 但這是我們將繼續關注的領域。

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

下一個問題來自德意志銀行的 Michael Chou。

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。

My first question is what is the outlook by segment, can we say that your 8-inch remains still quite stable in Q4 versus Q3?

我的第一個問題是各細分市場的前景如何，我們可以說您的 8 英寸在第四季度與第三季度仍然相當穩定嗎？

Okay, yes.

好的，是的。

I mean for the 8-inch, it is very stable and we continue to believe that will be in the full capacity situation.

我的意思是，對於 8 英寸來說，它非常穩定，我們仍然相信它會處於滿負荷狀態。

And so that's on the 8-inch.

這就是 8 英寸的。

From the 12-inch, on the segment wise, we see stronger in the consumer area and this is the communication, as computer will get a bit weaker again in our portfolio.

從 12 英寸來看，在細分市場上，我們看到消費領域更強，這就是通信，因為計算機在我們的產品組合中將再次變得更弱。

So, you are referring 12-inch demand.

所以，你指的是 12 英寸的需求。

That's right.

這是正確的。

Okay, fine.

好的。

So, the 8-inch that -- for the 8-inch, you come from a various application very diverse and so far the demand remained pretty robust and healthy and so I think the 8-inch will remain full.

所以，8 英寸——對於 8 英寸，你來自非常多樣化的各種應用程序，到目前為止，需求仍然非常強勁和健康，所以我認為 8 英寸將保持完整。

And while we -- in the 12-inch area, we do see the consumer has a much stronger outlook in the 12-inch while the communication and computer are really weaker, yeah.

雖然我們 - 在 12 英寸領域，但我們確實看到消費者在 12 英寸領域的前景要好得多，而通信和計算機確實較弱，是的。

So, can we say your consumer segment could grow quarter-on-quarter while communication PC should decline quarter-on-quarter?

那麼，我們可以說您的消費者細分市場可能會環比增長，而通信 PC 應該會環比下降嗎？

For the Q4, if you talk about outlook, actually reverse, what I'm referring to is that to Q3 results.

對於第四季度，如果您談論前景，實際上是相反的，我指的是第三季度的結果。

And for the Q4, it's actually -- we actually see a more seasonal effect in consumer and computer area.

對於第四季度，實際上——我們實際上在消費者和計算機領域看到了更多的季節性影響。

Okay.

好的。

But can we say communications segment should grow quarter-on-quarter in Q4?

但是我們可以說通信部門應該在第四季度環比增長嗎？

Yes.

是的。

Okay, thank you so much.

好的，非常感謝。

Second question is a housekeeping question.

第二個問題是家政問題。

What is the average currency for Q3 and what is your view for Q4?

Q3 的平均貨幣是多少，您對 Q4 的看法是什麼？

Yeah, 30 points is number for Q3.

是的，30 分是第三季度的數字。

And Q4, just expect flat numbers.

和第四季度，只期待持平的數字。

And the next question is from Gokul Hariharan from JP Morgan.

下一個問題來自摩根大通的 Gokul Hariharan。

Go ahead please.

請繼續。

Hi, thanks for taking my question.

您好，感謝您提出我的問題。

First of all, just wanted to explore a little bit on 28-nonometer.

首先，只是想在 28-nonometer 上稍微探索一下。

I think last conference call, I think you indicated, I think, almost 50% or more than 50% of revenue is poly-SiON.

我認為上次電話會議，我認為您表示，我認為幾乎 50% 或超過 50% 的收入是 poly-SiON。

Could you comment about how that mix looks like in Q4?

您能否評論一下這種組合在第四季度的表現如何？

And also, could you talk about how broad-based this demand is and sustainability of poly-SiON demand into first half of next year?

此外，您能否談談這種需求的廣泛性以及明年上半年多晶矽需求的可持續性？

Just wanted to understand that because you mentioned that the HPC plus revenues will start coming through only from second half of '18.

只是想了解這一點，因為您提到 HPC plus 的收入將僅從 18 年下半年開始出現。

That's my first question and I had a follow-up as well.

這是我的第一個問題，我也進行了跟進。

Alright.

好吧。

So, the first, for the poly-SiON, split between High-K and poly-SiON.

因此，首先，對於 poly-SiON，分為 High-K 和 poly-SiON。

The poly-SiON stays about 50%, say, in the fourth quarter and we do see that remains firm.

比如說，在第四季度，poly-SiON 保持在 50% 左右，而且我們確實看到它仍然保持堅挺。

So, they will probably stay in that range.

因此，他們可能會保持在該範圍內。

Even into first half, you think that that should be pretty sustainable.

即使在上半年，你認為這應該是相當可持續的。

I [inaudible] to continue with the projection in the first half, but because the 28 High-K is softening, we do see that actually will be more than 50% in the first half with the poly-SiON.

我 [聽不清] 繼續上半年的預測，但由於 28 High-K 正在軟化，我們確實看到，在上半年使用 poly-SiON 時實際上將超過 50%。

Okay.

好的。

Could you talk a little bit about the longevity of the poly-SiON projects, because for some of the other foundries, there is an accelerated conversion from poly-SiON to High-K/Metal Gate and derivatives of High-K/Metal Gate?

您能否談談 poly-SiON 項目的壽命，因為對於其他一些代工廠來說，從 poly-SiON 到 High-K/Metal Gate 和 High-K/Metal Gate 衍生品的轉換正在加速？

So, what do you see from your customer base, is it like multiple projects on poly-SiON with longer duration that you're seeing or...?

那麼，您從您的客戶群中看到了什麼，是像您看到的持續時間更長的 poly-SiON 上的多個項目還是……？

Well, yes, we do see that and we continue to see engagement in the poly-SiON area, although we have a lot of engagement in the High-K as well, but because of timing reasons and so the High-K will probably not coming in until later part of 2018, but for the [parties], so far we haven't seen any weakness yet.

嗯，是的，我們確實看到了這一點，並且我們繼續看到在 poly-SiON 領域的參與，雖然我們在 High-K 方面也有很多參與，但由於時間原因，因此 High-K 可能不會直到 2018 年下半年，但對於 [各方]，到目前為止，我們還沒有看到任何弱點。

And one question for Chitung.

還有一個問題要問Chitung。

On the depreciation trend, could you talk about what do you expect on depreciation in Q4 and maybe you have some indication going into next year as well, is depreciation still going to be rising into next year?

關於貶值趨勢，您能否談談您對第四季度的貶值的預期，也許您對明年也有一些跡象，明年貶值還會上升嗎？

For quarterly basis, it's rather flatish, Q2, Q3, Q4.

對於季度，它相當平淡，Q2，Q3，Q4。

Q3 is probably up a little bit, but all 3 quarters are similar.

第三季度可能略有上升，但所有三個季度都相似。

And in terms of year-over-year basis, 2017 and 2018 based upon current projection should be quite flat.

就同比而言，基於當前預測的 2017 年和 2018 年應該相當平緩。

And I guess we've talked about before, we do expect to see some kind of decline in depreciation or at least pick-up in terms of depreciation on an annual basis starting from 2019.

而且我想我們之前已經討論過，我們確實預計從 2019 年開始，每年的折舊都會出現某種程度的下降或至少有所回升。

And the next one is from Roland Roland Shu from Citigroup.

下一位來自花旗集團的 Roland Roland Shu。

Please ask your question.

請提出你的問題。

I think first of all, operating expense, last time you said going forward for the operating expense, it will be back to normal and this time earlier you said, now you expect operating expense to be flat in the near term.

我認為首先是運營費用，上次你說的運營費用會恢復正常，這次你之前說，現在你預計運營費用在短期內會持平。

So, can we have a more clarification for this operating expense.

那麼，我們能否對這項運營費用做出更明確的說明。

And when you talk about back to normal, what do you mean the normal label for this operative expense?

當您談到恢復正常時，您所說的這種手術費用的正常標籤是什麼意思？

Again, I mean basically OpEx throughout will stay at a current level as a percentage of revenue or absolute dollar terms.

同樣，我的意思是基本上整個運營支出將保持在當前水平，佔收入或絕對美元的百分比。

In the near term, we don't expect to see too much downside on the operating expenses, even though we see potentially for the longer term, we will be able to drive down the operating expenses and also hopefully couple with the revenue growth, percentage of revenue wise for OpEx can gradually start to decline in the longer term.

在短期內，我們預計運營費用不會有太大的下行空間，即使我們認為從長遠來看，我們將能夠降低運營費用，並希望與收入增長、百分比相結合從長遠來看，OpEx 的收入可能會逐漸開始下降。

But that's not going to happen in the near term.

但這不會在短期內發生。

So, Chitung, you mean the quarterly operating expense number, right?

所以，Chitung，你的意思是季度運營費用數字，對嗎？

Yeah, quarterly, yes.

是的，每季度一次，是的。

And in 3Q, you had a quite significant gain up from down up.

在第三季度，您從下往上獲得了相當大的收益。

Can you add more color on this on up gain in 3Q?

您能否在第三季度的上漲中增加更多色彩？

Third quarter is normally in the season where we see dividends from investing companies, so that is always the case.

第三季度通常是我們看到投資公司分紅的季節，所以情況總是如此。

So, some [NT$500 million] dividend we'll receive in Q3.

因此，我們將在第三季度獲得一些 [新台幣 5 億] 的股息。

Also, we benefit from the reversal of the strengthening renminbi given our U.S. fab in Xiamen fabs.

此外，鑑於我們在廈門的美國工廠，我們受益於人民幣走強的逆轉。

So, that's another [NT$400 million, NT$500 million] contribution from the reversal of forex gains, which would book us loss in 2016.

所以，這是外匯收益逆轉帶來的另一個 [4 億新台幣，5 億新台幣] 貢獻，這將使我們在 2016 年蒙受損失。

So that's the 2 major items.

這是2個主要項目。

And for your maintenance CapEx, how much it is for every year for the maintenance CapEx primarily?

對於您的維護資本支出，每年主要用於維護資本支出是多少？

It will be probably in the range of [NT$200 plus million].

大概在[新台幣200加萬元]的範圍內。

[NT$200 plus million].

[新台幣200加百萬]。

So, going forward, the capacity expansion in China, what is maintenance CapEx increase going forward?

那麼，展望未來，中國的產能擴張，未來的維護資本支出增加是多少？

No, if you talk about next 1, 2, 3 years, I don't expect the number to vary differently.

不，如果您談論未來 1 年、2 年、3 年，我預計數字不會有所不同。

So, it will be in this ballpark figures in the recent years.

因此，這將是近年來的大致數字。

And last question is on your -- for your 28-nanometer, revenue was about 15% of the total in 3Q, how much came from Taiwan and how much of this 28-nanometer revenue came from China in 3Q?

最後一個問題是關於你的——對於你的 28 納米，第三季度的收入約為總收入的 15%，有多少來自台灣，這 28 納米的收入中有多少來自第三季度的中國大陸？

28-nanometer in terms of capacity in our Xiamen fab, currently only around 5K, in Taiwan we have more than 35K.

我們廈門晶圓廠的產能為 28 納米，目前只有 5K 左右，在台灣我們有超過 35K 的產能。

So, capacity wise, it's [1-7].

所以，容量方面，它是 [1-7]。

And revenue wise, it just started in Xiamen.

在收入方面，它剛剛在廈門開始。

So, it will be even less than the capacity ratio.

因此，它甚至會小於容量比。

Next, we'll have Sebastian Hou from CLSA for questions.

接下來，我們將請里昂證券的 Sebastian Hou 提問。

Go ahead, please.

請繼續。

So my first question is, can you remind me of your capacity split on 28-nanometer in terms of poly-SiON and High-K/Metal Gate?

所以我的第一個問題是，你能提醒我你在多晶矽和高 K/金屬柵極方面的 28 納米容量分配嗎？

We have by end of this year and we have approximately 39.3K of 28-nanometer and between the two, the poly-SiON has s about 13K while the High-K has (inaudible).

到今年年底，我們有大約 39.3K 的 28 納米，在兩者之間，poly-SiON 大約有 13K，而 High-K 有（聽不清）。

But there is some kind of conversion.

但是有某種轉換。

Right.

正確的。

Well, in between, there is -- we have a conversion ratio, we have about 7K to 8K that we can convert between the two.

好吧，在兩者之間，我們有一個轉換率，我們可以在兩者之間轉換大約 7K 到 8K。

So, that's -- when we have poly-SiON stronger, we're actually using the High-K capacity for the quarter, the [poly-SiON].

所以，這就是——當我們擁有更強的多晶矽時，我們實際上是在使用本季度的高 K 容量，即 [多晶矽]。

So, does that means that when you -- so, it could be the maximum about 20K of poly-SiON?

那麼，這是否意味著當您 - 所以，它可能是最大約 20K 的多晶矽？

Yeah, 20K to 21K, yes, in the range of it.

是的，20K 到 21K，是的，在它的範圍內。

If you convert everything, you can convert?

如果你轉換一切，你可以轉換嗎？

Yes, convert.

是的，轉換。

Can you update us on the -- if you look at your 40-nanometer, which has been pretty strong and continue to be very strong, can you share with us what kind of applications to drive that and how sustainable is that?

你能否向我們介紹一下——如果你看看你的 40 納米，它已經非常強大並且繼續非常強大，你能和我們分享一下什麼樣的應用可以推動它以及它的可持續性如何？

Well, you're asking the 14 or the 40-nanometer?

好吧，你問的是 14 納米還是 40 納米？

4-0.

4-0。

4-0, 40-nanometer?

4-0、40 納米？

Yes.

是的。

I mean, this -- there is actually a variable different application into 40, and from the logic to the high voltage and battery fresh.

我的意思是，這 - 實際上有一個變量不同的應用程序 40，從邏輯到高壓和電池新鮮。

So, there are some specialty as well as the larger device and for the platform of the mobile devices and also the MTU despite private areas.

因此，儘管有私人領域，但仍有一些專業以及更大的設備和移動設備平台以及 MTU。

And we have noticed that you are -- you have expanded and you are also expanding your age capacity into the second half of this year.

我們注意到你是——你已經擴大了，你也在將你的年齡能力擴大到今年下半年。

So, I think after several quarters, with the flattish expansion, so what makes the changes and also how much room -- how much idle clean room space you have for further expansion into 2018?

所以，我認為在幾個季度之後，隨著平緩的擴張，發生了什麼變化，還有多少空間——你有多少空閒的潔淨室空間可以進一步擴張到 2018 年？

For age?

年齡？

Yes.

是的。

Very limited clean room space for expansion due to the demand, robustness.

由於需求、穩健性，用於擴展的潔淨室空間非常有限。

So, we are trying to continue to expand a little bit of the age for the older space that we have.

因此，我們正在努力為我們擁有的舊空間繼續擴大一點年齡。

So is it fair to assume that even into 2018, given the limited clean room space you have, you probably will not -- even you add, will not be much?

那麼假設即使到 2018 年，鑑於您擁有的潔淨室空間有限，您可能不會——即使您添加，也不會太多？

Right.

正確的。

It won't be much, but they may have some of the product mix adjustment due to different products.

不會太多，但他們可能會因產品不同而對產品結構進行一些調整。

In terms of the earlier, Chitung, your guidance about depreciation to be flat in 2018, does that already factor in the meaning from CapEx cut that the President guided earlier?

就早些時候而言，Chitung，您對 2018 年折舊持平的指導，這是否已經考慮到總統早些時候指導的資本支出削減的含義？

Yes, that's the current projection.

是的，這就是當前的預測。

Last question from me is that, do you have any [tape-offs] already on 28 HPC plus right now and can you share how many you have?

我的最後一個問題是，您現在是否已經在 28 HPC plus 上有任何 [tape-offs]，您能分享一下您有多少嗎？

No, I mean we don't have any HPC tape-off yet, no.

不，我的意思是我們還沒有任何 HPC 流片，不。

Okay.

好的。

So, when you say the technology is ready by mid of next year, does that mean that the same timing for [tape-off] or as your tape-off will likely start earlier than that or pretty much the same time, mid of next year?

因此，當您說技術在明年年中準備就緒時，這是否意味著 [tape-off] 的相同時間或您的tape-off 可能會比該時間更早或幾乎相同時間開始，即明年年中年？

For those customer require the IP, we probably won't be able to take [tape-out] until the 2018.

對於那些需要 IP 的客戶，我們可能要到 2018 年才能進行 [tape-out]。

For those customer does not need IP and we can try to [tape off] early than that.

對於那些不需要 IP 的客戶，我們可以嘗試早點 [tape off]。

(Operator Instructions) And next we'll have Rick Hsu from Daiwa Securities for questions.

（操作員說明）接下來我們將請大和證券的 Rick Hsu 提問。

Please ask your question.

請提出你的問題。

The first question is on your 28 -- sorry, 22-nanometer ULP.

第一個問題是關於你的 28 - 抱歉，22 納米 ULP。

Can you clarify, is this also based on High-K/Metal Gate poly-SiON?

您能否澄清一下，這也是基於 High-K/Metal Gate poly-SiON 的嗎？

This is not High-K process.

這不是 High-K 工藝。

And do you have any [tape-off] right now?

你現在有[錄音]嗎？

No.

不。

The 22 ULP will not get ready until mid of 2018.

22 ULP 要到 2018 年年中才能準備好。

Second question.

第二個問題。

Can you comment on your customers' inventory status?

您能否評論客戶的庫存狀態？

For seasonal reason we do anticipate some of the inventory correction across the board starting in Q4.

出於季節性原因，我們確實預計從第四季度開始全面調整一些庫存。

And, but we're not commenting specific customers.

而且，但我們沒有評論特定客戶。

But we do starting some of the inventory correction activities.

但我們確實開始了一些庫存修正活動。

Last question is, do you have any revenue contribution from cryptocurrency mining?

最後一個問題是，你有來自加密貨幣挖礦的任何收入貢獻嗎？

The answer is yes, and we have some of the demand coming from that segment.

答案是肯定的，我們有一些來自該細分市場的需求。

And would you mind sharing with us is based on what technology note and how do you see the trend going forward?

您是否介意與我們分享基於什麼技術說明以及您如何看待未來的趨勢？

Well, because it's for specific customer and (inaudible) space is always, we will not comment about that.

好吧，因為它是針對特定客戶的，並且（聽不清）空間總是如此，我們不會對此發表評論。

And the next question is coming from Randy Abrams from Credit Suisse.

下一個問題來自瑞士信貸的蘭迪艾布拉姆斯。

Yes, I had 2 follow-up questions.

是的，我有 2 個後續問題。

The first one on the specialty technology that you're reallocating the resources.

第一個關於您正在重新分配資源的專業技術。

Could you consider if there is a few certain product or areas that you're targeting like that you think you can grow the business like you've had the specialty in the past, but maybe now with the new resources which products or area if you see the most promised?

您是否可以考慮是否有一些特定的產品或領域是您的目標，您認為您可以像過去那樣發展業務，但也許現在有了新資源，如果您的產品或領域看到最大的承諾了嗎？

I mean, those areas that we currently focus is a bit sensitive and so -- and they may actually reflect to certain customer engagement, so I kind of reluctant to report that, but we are focused on some of the specialty areas that's going to market demanding, and we feel pretty good traction at this point.

我的意思是，我們目前關注的那些領域有點敏感，它們實際上可能反映了某些客戶參與度，所以我有點不願意報告這一點，但我們專注於一些即將上市的專業領域要求很高，我們在這一點上感覺很好。

Maybe if I could ask, I guess, when you think, I guess, it's kind of a new effort to reallocate when -- like if you might see an acceleration in some of these areas.

也許如果我可以問，我猜，當你認為，我猜，這是一種重新分配時間的新努力 - 比如你可能會看到其中一些領域的加速。

And if there certain nodes that you're seeing the applications, I guess, 8 inch to slow, so is it like some of the mature, like could you expect it's more [40s], like which nodes you expect and when do you think you'll start to see the contribution?

如果你看到應用程序的某些節點，我猜，8 英寸慢，所以它像一些成熟的，你能期望它更多 [40s]，比如你期望哪些節點以及你認為什麼時候你會開始看到貢獻？

The contribution is already started in some area and especially in 8-inch area and we spend many efforts in the 12-inch mature space.

貢獻已經開始在一些領域，特別是8英寸領域，我們在12英寸成熟空間方面投入了很多精力。

Now hopefully that we can continue to migration from 8 inch to 12 inch, so it covers between the 8 inch equivalent and the mature 12 inch.

現在希望我們可以繼續從 8 英寸遷移到 12 英寸，因此它涵蓋了 8 英寸等效和成熟的 12 英寸之間。

I had 2 P&L clarifications for Chitung, one is there is a line item net other income that flows into OpEx and it has been like plus to minus [NT$ 400 million to NT$ 500 million] and this past quarter was a plus [NT$ 441 million].

我對 Chitung 有 2 個損益說明，一個是有一個項目淨其他收入流入 OpEx，它一直是正負 [新台幣 4 億到新台幣 5 億]，而上一季度是正 [NT 4.41 億美元]。

If there's a way to think of what that other income is and if you expect that to sustain and the other line item with the noncontrolling interest, how you see that, that's about [NT$ 1 billion] now, how you see it trending and Xiamen ramps up?

如果有一種方法可以考慮其他收入是什麼，並且如果您期望它能夠維持以及具有非控制性權益的其他項目，您如何看待它，現在大約是[新台幣 10 億美元]，您如何看待它的趨勢和廈門漲價了？

Noncontrolling for just the consolidated accounting principle at a pace the currently the loss of Xiamen fab to other shareholders.

僅合併會計原則的非控制性與目前廈門工廠對其他股東的損失相當。

And that numbers are percentage at least will decrease when UMC continue to increase our shareholding in the Xiamen fab.

當聯電繼續增加我們在廈門工廠的股權時，這個數字至少會下降。

As for the other income in many of the subsidiaries we receive from our investment in China.

至於我們從中國投資中獲得的許多子公司的其他收入。

Do you think it will be similar, roughly similar in the next few quarters or... ?

你認為在接下來的幾個季度裡會是相似的、大致相似的還是……？

That's a bit difficult to predict, but I assume the number will be above the same next quarter.

這有點難以預測，但我認為這個數字將高於下個季度的水平。

And the next one is from Julie Tsai from UBS.

下一位來自瑞銀的 Julie Tsai。

I have a follow-up question from my analyst, Bill Lu, regarding to the operating expenses.

我的分析師 Bill Lu 有一個關於運營費用的後續問題。

I think, Jason, you didn't mention that in the near term your mission for UMC is actually to strengthen the financial capability and cost structure.

我想，Jason，你沒有提到在短期內你對 UMC 的使命實際上是加強財務能力和成本結構。

So is it safe to assume that the operating expense will probably maintain around [NT$ 5 billion] per quarter just like last quarter or should we be using a percentage which varies from, I would say, quarter 1 to the most recent quarter, it could be 16% of sales or 13% of sales?

因此可以安全地假設運營費用可能會像上個季度一樣保持在每季度 [新台幣 50 億美元] 左右，或者我們應該使用從第一季度到最近一個季度變化的百分比，它可能是銷售額的 16% 還是銷售額的 13%？

I mentioned that in the previous questions that we are trying hard to exempt the structure of our operating expenses.

我在前面的問題中提到，我們正在努力免除我們的運營費用結構。

In the near term, we don't expect to see any significant or meaningful reduction either in absolute terms or as a percentage of revenue.

在短期內，我們預計無論是絕對值還是收入百分比都不會出現任何顯著或有意義的下降。

But for the longer term, of course, we do expect to see more rationalized in the operating expenses coupled with our increasing revenue base.

但從長遠來看，當然，我們確實希望看到運營費用更加合理化，再加上我們不斷增加的收入基礎。

So at least for the percentage of revenue, hopefully for the longer term, we hope that as a percentage of revenue will gradually decline.

所以至少對於收入的百分比，希望從長遠來看，我們希望收入的百分比會逐漸下降。

Because I think the sell side community uses recent quarters from operating expenses of [NT$ 5 billion], then I think the next few quarters, operating income would be okay or pretty much sustainable at a current level, but if they use your percentage of the sales, it could actually maybe come into very near breakeven, would that be the case?

因為我認為賣方社區使用最近幾個季度的運營費用 [新台幣 50 億]，那麼我認為接下來的幾個季度，運營收入在當前水平上是可以的或幾乎可持續的，但如果他們使用你的百分比銷售，它實際上可能會非常接近盈虧平衡，是這樣嗎？

I cannot comment on the first quarter of next year but we already mentioned that Q1 normally is seasonal slower quarter coupled with our maintenance schedule and [fewer] working days and then we will talk about our operating outlook for Q1 in next quarter.

我無法對明年第一季度發表評論，但我們已經提到第一季度通常是季節性較慢的季度，加上我們的維護計劃和[更少]工作日，然後我們將在下一季度討論第一季度的運營前景。

And then maybe just follow-up, I think, Jason also mentioned that 2018 CapEx was the meaningful decline.

然後也許只是跟進，我認為，傑森還提到 2018 年資本支出是有意義的下降。

Is it okay to quantify what's meaningful, is it 20%, 50%...

可以量化什麼是有意義的，是 20%，50%...

There is a reason what gives meaningful, so no, we cannot.

有意義的事情是有原因的，所以不，我們不能。

Not yet, right, okay, we will leave that to maybe in next quarter.

還沒有，對，好吧，我們將把它留到下個季度。

Sure.

當然。

And the next question is coming from Sebastian Hou from CLSA.

下一個問題來自里昂證券的 Sebastian Hou。

Go ahead please.

請繼續。

I have 2 follow-ups, very quick follow-ups.

我有 2 個跟進，非常快速的跟進。

The first one is on your 28 nanometer capacity plan and your Xiamen fab expansion plan, do you plan to expand further capacity on 28 and also in Xiamen next year?

第一個是關於你們的28納米產能計劃和廈門工廠的擴建計劃，你們是否計劃在明年進一步擴大28納米以及廈門的產能？

Yes, and by end of this year.

是的，到今年年底。

we will have about 11.5K total capacity in Xiamen and we do expect that number will reach about 16K by mid-2018.

我們將在廈門擁有約 1.15 萬總產能，我們預計到 2018 年年中這一數字將達到約 1.6 萬。

And most of all the addition is 28-nanometers.

最重要的是增加了 28 納米。

It's 28 poly or 28 High-K?

是 28 poly 還是 28 High-K？

Poly.

聚。

Poly?

聚？

Okay.

好的。

So, how about your Tainan fab 28 in Taiwan?

那麼，你在台灣的台南晶圓廠 28 怎麼樣？

At this point, there is no expansion plan planned up for the 12A yet.

目前，還沒有為 12A 計劃的擴建計劃。

And on the -- my second follow-up is on the DRAM that the JV you have with change on government, if I read about it correctly, so can you give us some update on that, when do you expect the wafer start to begin?

關於 - 我的第二個後續行動是關於你擁有的合資企業的 DRAM，如果我沒看錯的話，你能給我們一些更新嗎，你預計晶圓什麼時候開始?

Well, first of all, it's not the JV, we only are technology provider, so you will see us probably investment in this DRAM initiative.

嗯，首先，這不是合資企業，我們只是技術提供商，所以你會看到我們可能會投資這個 DRAM 計劃。

And Jason, can you comment on (inaudible)?

Jason，你能評論一下（聽不清）嗎？

Again, just like Chitung said, personally you're right about the location, it's Jinghong in China and close to Xiamen.

再一次，就像吉東說的，你個人對位置的看法是對的，它是中國的景洪，離廈門很近。

The R&D activity is on track at this point and we do expect to see some later output, the engineering wafers by the beginning next year and in our development facility in Taiwan and the facility in Jinghong is under construction and so far the project is still on track.

研發活動目前正在進行中，我們確實預計會在明年年初看到一些工程晶圓，以及我們在台灣的開發設施和景洪的設施正在建設中，到目前為止，該項目仍在進行中追踪。

Just like Chitung said, we actually don't own anything in the project.

就像吉東說的，我們實際上在這個項目中沒有任何東西。

We're more of a technology partner and to support that project.

我們更像是技術合作夥伴並支持該項目。

So, engineering wafer is starting in 2018 and the real output will be...?

那麼，工程晶圓從 2018 年開始，實際產量將是……？

Well, Jinghong's real wafer output is really up to their schedule.

嗯，景宏的真正矽片產量，真的是按他們的計劃來的。

I understand the production facility is under the construction and the project is still on track.

我了解生產設施正在建設中，該項目仍在進行中。

But I really can't comment when they're going to have a production out, because it's subject to when they're going to have the tool move in.

但我真的無法評論他們何時會推出產品，因為這取決於他們何時將工具搬入。

But from a development point of view, the project is on schedule.

但從發展的角度來看，該項目正在如期進行。

We thank you for all your questions.

我們感謝您提出的所有問題。

That conclude today's Q&A session.

今天的問答環節到此結束。

And now I'm turning things over to UMC Head of IR for closing remarks.

現在，我將把事情交給 UMC IR 負責人來結束髮言。

Okay, thank you for joining us today.

好的，感謝您今天加入我們。

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, and have a good day.

與往常一樣，如果您有任何其他後續問題，請隨時通過 ir@umc.com 聯繫 UMC，祝您有美好的一天。

Thank you.

謝謝你。

Thank you, Mr. Lin.

謝謝你，林先生。

And ladies and gentlemen that concludes our conference for the third quarter 2017.

女士們，先生們，我們 2017 年第三季度的會議結束了。

Thank you for your participation in UMC's conference.

感謝您參加聯電的會議。

There will be a webcast replay within an hour.

將在一小時內進行網絡直播重播。

Please visit www.umc.com under the Investors Events section.

請訪問 www.umc.com 的“投資者活動”部分。

You may now disconnect.

您現在可以斷開連接。

Goodbye.

再見。