聯華電子 (UMC) 2018 Q1 法說會逐字稿

Welcome everyone, to UMC's 2018 First Quarter Earnings Conference Call.

歡迎大家參加聯華電子 2018 年第一季度收益電話會議。

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

（操作員說明）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 has 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's conference call for the first quarter of 2018.

謝謝大家，歡迎參加聯華電子 2018 年第一季度的電話會議。

I'm joined here by Mr. Jason Wang, the President of UMC; and Mr. Chitung Liu, the CFO of UMC.

聯華電子總裁 Jason Wang 先生加入了我的行列；以及聯電首席財務官劉奇東先生。

In a moment, we will hear our CFO present the first quarter financial results, followed by our President's key message to address UMC's forecast and the second quarter 2018 guidance.

稍後，我們將聽到我們的首席財務官介紹第一季度的財務業績，然後是我們的總裁關於聯華電子的預測和 2018 年第二季度指導的關鍵信息。

Once our President and the 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，將有一個問答環節。

UMC's quarterly financial reports are available at our website, www.umc.com, under the Investors Financials 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”部分獲取。

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

在本次會議期間，我們將根據管理層當前的預期和信念做出前瞻性陳述。

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

這些前瞻性陳述受到許多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 security authorities.

對於這些風險，請參閱聯電在美國和中華民國安全機構向 SEC 提交的文件。

Now I would like to introduce UMC's CFO, Mr. Chitung Liu, to discuss our first quarter 2018 financials.

現在我想介紹聯電的首席財務官劉奇東先生來討論我們 2018 年第一季度的財務狀況。

Thank you, Michael.

謝謝你，邁克爾。

I'd like to go through the first quarter 2018 investor conference presentation material, which can be downloaded from our website.

我想瀏覽一下 2018 年第一季度投資者會議演示材料，可以從我們的網站下載。

Starting on Page 3, the first quarter of 2018, consolidated revenue was NT$ 37.5 billion, with gross margin at 12.4%.

從2018年第一季度第三頁開始，綜合收入為新台幣375億元，毛利率為12.4%。

The net income attributable to stockholder of the parent was NT$ 3.4 billion, and the earnings per ordinary shares were NT$ 0.28.

歸屬於母公司股東的淨利潤為新台幣34億元，每股普通股收益為新台幣0.28元。

On Page 3 you can also see our capacity utilization rate in quarter 1 of 2018 was 94% up from 90% in the Q4 2017, but similar level at same quarter of 2017.

在第 3 頁，您還可以看到我們在 2018 年第一季度的產能利用率從 2017 年第四季度的 90% 上升到 94%，但與 2017 年同一季度的水平相似。

And on Page 4, our revenue grew up 2.4% quarter-over-quarter to NT$ 37.5 billion, mainly coming from our volume growth.

在第 4 頁，我們的收入環比增長 2.4% 至新台幣 375 億元，主要來自我們的銷量增長。

Gross margin was 12.4% as reported and operating income margin is 2.1% or NT$ 769 million.

毛利率為 12.4%，營業利潤率為 2.1%，即 7.69 億新台幣。

Our total non-operating income was about NT$ 1.088 billion and therefore the net income attributable to stockholder of the parent was NT$ 3.4 billion or NT$ 0.28 per share.

我們的營業外總收入約為新台幣10.88億元，因此歸屬於母公司股東的淨收入為新台幣34億元或每股新台幣0.28元。

On Page 5, the year-over-year comparison, revenue was almost identical around NT$ 37.5 billion with earnings, net income attributable to stockholder of the parent grew 48.7% year-over-year to NT$ 3.4 billion.

在第5頁，與去年同期比較，收入與盈利幾乎相同，約為新台幣375億元，歸屬於母公司股東的淨利潤同比增長48.7%至新台幣34億元。

And on Page 6, our cash and cash equivalents at the end of first quarter was NT$ 77 billion with stockholder equity around NT$ 216 billion.

在第 6 頁，我們在第一季度末的現金和現金等價物為新台幣 770 億元，股東權益約為新台幣 2160 億元。

Page 7, our blended ASP in quarter 1 was relatively flat compared to the previous quarter.

第 7 頁，我們在第一季度的混合 ASP 與上一季度相比相對持平。

So on Page 8, our sales breakdown by countries, by locations, Asia, still the largest component of 47% with North America around 42%.

因此，在第 8 頁，我們按國家、地區、亞洲劃分的銷售額仍然是最大的組成部分，佔 47%，北美約為 42%。

So IDM, on Page 9, account for about 8% of our total revenue, similar to that of Q4 last year.

因此，第 9 頁的 IDM 占我們總收入的 8% 左右，與去年第四季度相似。

And in terms of segment breakdown on Page 10, Communication, although declined as a percentage of revenue in Q1, 2018, still represent the largest pie of 47% and Consumer is 29%.

在第 10 頁的細分市場細分方面，通信雖然在 2018 年第一季度佔收入的百分比有所下降，但仍佔 47% 的最大份額，消費者為 29%。

On Page 11, for technology breakdown, 14 nanometer continue to be around 2% of total revenue.

在第 11 頁，對於技術細分，14 納米繼續佔總收入的 2% 左右。

And as we mentioned earlier 28 will be at trough of our run rate, which in Q1 was around 12% of total revenue versus 15% in the previous quarter.

正如我們之前提到的，28 人將處於我們運行率的低谷，第一季度佔總收入的 12% 左右，而上一季度為 15%。

And 14 nanometer continue to expand to now 30% of total revenue in Q1 2018.

14 納米在 2018 年第一季度繼續擴大到現在總收入的 30%。

And 2018 on Page 12, in terms of quarterly capacity was the lower point due to the shorter working days and annual maintenance and quarter 2 we see a back to normal condition with further expansion -- capacity expansion at our 12X fab in Xiamen, China.

在第 12 頁，2018 年季度產能較低，原因是工作日和年度維護時間較短，而第二季度我們看到進一步擴張的情況恢復正常——我們在中國廈門的 12X 工廠的產能擴張。

And on Page 13, our total CapEx budget for 2018 remained unchanged at U.S.$1.1 billion.

在第 13 頁，我們 2018 年的總資本支出預算保持不變，為 11 億美元。

The above is summary of UMC's result for Q1 2018.

以上是聯華電子 2018 年第一季度的業績摘要。

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

更多詳細信息可在我們網站上發布的報告中找到。

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

我現在將把電話轉給我們的總裁，聯華電子，王先生。

Thank you, Chitung.

謝謝你，赤東。

Good evening, everyone.

各位晚上好。

Here I would like to update the first quarter operating result of UMC.

在這裡，我想更新聯電第一季度的經營業績。

In the first quarter of 2018, despite unfavorable movement of the NT dollar, our foundry revenue increased 2.5% quarter-over-quarter to NT$ 37.44 billion.

2018年第一季度，儘管新台幣走勢不利，但我們的代工收入環比增長2.5%至新台幣374.4億元。

Stable loading across 8 inch and mature 12 inch technologies resulted in a overall utilization rate of 94%.

8 英寸和成熟的 12 英寸技術的穩定加載導致整體利用率達到 94%。

That brings our wafer shipment to 1.75 million 8-inch equivalent.

這使我們的晶圓出貨量達到 175 萬片 8 英寸當量。

Softening demand in smartphone and other wireless device was more than offset by the strength in computer and the consumer segment.

智能手機和其他無線設備的需求疲軟被計算機和消費市場的強勁所抵消。

Now we looking into the second quarter, we anticipate our wafer shipment to increase, mainly due to a growth business opportunity from wireless communication as well as computer peripheral related chip demand.

現在我們展望第二季度，我們預計我們的晶圓出貨量將增加，主要是由於無線通信以及計算機外圍相關芯片需求的增長商機。

As we secured new product tape outs across the advanced and mature technology, including 28 nanometers, we will leverage our collaborative efforts with customers, supported by UMC's manufacturing excellence to enhance our market share and financial result.

隨著我們通過先進和成熟的技術（包括 28 納米）獲得新產品流片，我們將利用我們與客戶的合作努力，在 UMC 卓越製造的支持下，提高我們的市場份額和財務業績。

While, we focus on revenue and product growth, we also seek to maximize the shareholder returns.

雖然我們專注於收入和產品增長，但我們也尋求最大化股東回報。

Subject to the shareholders' approval the Board of Director recently proposed a cash dividend distribution of approximately NT$ 0.70 per share, which constitutes around an 88% cash dividend payout ratio.

經股東批准，董事會近期提議派發現金股息約每股新台幣0.70元，相當於88%左右的現金股息派發率。

In addition, we begin our 18th share buyback program in March 8, 2018.

此外，我們於 2018 年 3 月 8 日開始第 18 次股票回購計劃。

And we will complete the purchase of shares for cancellation by May 7, 2018.

並於2018年5月7日前完成註銷股份的購買。

Moving forward, we will continue to improve UMC's profitability and maintaining business growth to maximize benefits to our shareholders.

展望未來，我們將繼續提升聯華電子的盈利能力並保持業務增長，為股東帶來最大利益。

That was our first quarter results.

那是我們第一季度的業績。

Now let me go over the second quarter's guidance.

現在讓我回顧一下第二季度的指導。

For wafer shipments, we will show an increase of 2% to 4%.

對於晶圓出貨量，我們將顯示 2% 至 4% 的增長。

ASP in U.S. dollars is expected to remain flat.

預計美元平均售價將保持平穩。

The gross profit margin will be in the mid-teens percentage range and capacity utilization rate will be mid-90% range.

毛利率將在10%左右，產能利用率將在90%左右。

For foundry CapEx of the 2018 year, it will be remain at U.S. $1.1 billion.

對於 2018 年的代工資本支出，將保持在 11 億美元。

That concludes my comments.

我的評論到此結束。

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。

(Operator Instructions) Your first question is coming from Randy Abrams from Crédit Suisse.

（操作員說明）您的第一個問題來自瑞士信貸的 Randy Abrams。

First question, I wanted to ask about the 8 inch and mature 12 inch, where you mentioned tight utilization and good demand.

第一個問題，我想問一下8寸和成熟的12寸，你提到的使用緊張和良好的需求。

I'm curious, if you could talk about potential to lift pricing and profitability on some of these older nodes.

我很好奇，如果你能談談提高其中一些舊節點的定價和盈利能力的潛力。

And second part is, how you're thinking about capacity there with the tight utilization.

第二部分是，您如何考慮利用率緊張的容量。

If you have clean room space or plan to add capacity?

如果您有潔淨室空間或計劃增加容量？

Or if you'd go so far as looking consider fab -- like new fab space like we've seen with Hua Hong and Vanguard considering.

或者，如果你想考慮晶圓廠——就像我們看到的華虹和先鋒正在考慮的新晶圓廠空間。

Okay.

好的。

Randy, good afternoon.

蘭迪，下午好。

For your first question and in terms of the 8 inch and 12 inch of mature nodes price increase.

對於您的第一個問題，關於 8 英寸和 12 英寸成熟節點的價格上漲。

Well the price adjustment, we have not increased pricing simply because there's strong demand.

那麼價格調整，我們並沒有僅僅因為需求旺盛而提高定價。

In the past few quarters, we did have discussion with customers on pricing adjustment because of raw material.

在過去的幾個季度中，我們確實與客戶就原材料價格調整進行了討論。

In the past years the raw material has continue to increase, especially in 8 inch area.

在過去的幾年裡，原材料不斷增加，特別是在 8 英寸區域。

So we're making some adjustment there.

所以我們正在那裡進行一些調整。

Our pricing strategy will reflect the raw material cost increase and we'll continue monitor that, but for the other -- demand reason, we don't easily just the increase our pricing.

我們的定價策略將反映原材料成本的增加，我們將繼續監控這一點，但出於另一個需求的原因，我們不會輕易提高定價。

But we are focused more on product mix improvement because the loading.

但我們更關注產品組合的改進，因為加載。

And just a second part of that mix improvement and passing on raw material, I guess do you see potential to get margin improvement from some of those activists.

只是混合改進和原材料傳遞的第二部分，我想你是否看到了從其中一些積極分子那裡獲得利潤改善的潛力。

Say, if you can pass on some of the raw material costs, you could see like structural profitability such to recover some of that structural profitability on some of these nodes?

比如說，如果你可以轉嫁一些原材料成本，你會看到像結構性盈利能力這樣的結構性盈利能力，以便在其中一些節點上恢復一些結構性盈利能力？

Absolutely.

絕對地。

We do expect some improvement on that.

我們確實希望對此有所改進。

That is, we try to offset some of the annual erosion curve and so we hope that will help and for the product mix improvement also help that as well.

也就是說，我們試圖抵消一些年度侵蝕曲線，因此我們希望這會有所幫助，並且產品組合的改進也會有所幫助。

And do have room for...

並且確實有空間...

And that was for your first question.

這是你的第一個問題。

And then your second question related to, if there is any room for capacity increase?

然後你的第二個問題是關於容量增加的空間嗎？

For the 8 inch there is very little room.

8英寸的空間很小。

And we actually in our 2018 CapEx plan for cash base, we are having some CapEx allocated to 8 inch.

實際上，在我們的 2018 年現金基礎資本支出計劃中，我們將一些資本支出分配給 8 英寸。

But most of those would not happen in 2018.

但其中大部分不會在 2018 年發生。

Once we spent it, we'll probably not going to see that in the 2018 yet.

一旦我們花了它，我們可能不會在 2018 年看到它。

For the 12 inch, we are doing some of the [refractability] in terms of node to node changes to support different mix of the demand.

對於 12 英寸，我們在節點到節點的更改方面進行了一些 [refractability]，以支持不同的混合需求。

And so we do have some room to increase the capacity, but we haven't seen the need of that.

所以我們確實有一些空間來增加容量，但我們還沒有看到需要。

The -- most of our CapEx decision will follow our strategy we've mentioned about in the past and we want to make sure it is ROI driven and we want to make sure that the justification in place before we make that.

- 我們的大部分資本支出決定將遵循我們過去提到的策略，我們希望確保它是由投資回報率驅動的，我們希望在我們做出決定之前確保有正當理由。

The other question I wanted to ask on 28, just if you could give us a sense of the outlook.

我想在 28 日問的另一個問題，只是如果你能給我們一個前景感。

You mentioned the trough this quarter.

你提到了本季度的低谷。

So how you see the rebound as we progress through the year?

那麼，隨著我們這一年的進展，您如何看待反彈？

How you're seeing engagements?

你如何看待訂婚？

And if you could also talk about competition, both from a pricing and also competing for designs.

如果您還可以談論競爭，包括定價和設計競爭。

Now that there's some excess capacity, it looks like even TSMC and some of the other foundries on 28.

現在有一些產能過剩，看起來甚至台積電和其他一些代工廠都在 28 日。

So how you see the rebound and how you see the competition pricing?

那麼您如何看待反彈以及如何看待競爭定價？

Okay.

好的。

For the 28 rebound -- well, obviously, Q1 is a challenging quarter for us.

對於 28 次反彈——嗯，很明顯，第一季度對我們來說是一個充滿挑戰的季度。

We predict the contribution from 28 is only at about 12%.

我們預測 28 的貢獻僅為 12% 左右。

And for going into Q2, we do see good progress in terms of customers tape out and product diversifications.

對於進入第二季度，我們確實看到客戶流片和產品多樣化方面取得了良好進展。

We expect the 28 nanometer revenue will pick up in Q2 quarter-over-quarter basis.

我們預計 28 納米的收入將在第二季度環比增長。

And we actually -- for the 28, we continue to see that progress, okay and -- well, going into Q3 as well.

我們實際上 - 對於 28 人，我們繼續看到這種進展，好吧，而且 - 好吧，也進入第三季度。

But if I separate the poly-SiON and High-K.

但是，如果我將 poly-SiON 和 High-K 分開。

The poly-SiON, our business remain pretty solid and -- because first is we have a stable demand.

poly-SiON，我們的業務仍然相當穩固，而且——因為首先是我們有穩定的需求。

Second is, because the SiON solution is ready, so we haven't seen much of the solutions changes there.

其次，因為 SiON 解決方案已經準備就緒，所以我們還沒有看到那裡的解決方案有太多變化。

So SiON actually remains pretty steady there.

所以 SiON 實際上在那裡保持相當穩定。

For High-K its little bit different.

對於 High-K，它有點不同。

There is few reasons.

原因很少。

One, the High-K is intensive due to the evolving technologies.

一，由於技術不斷發展，High-K 是密集型的。

We continue see the High-K moving from HPC to HPC plus to 22.

我們繼續看到 High-K 從 HPC 移動到 HPC plus 到 22。

So, however, we do see customer pilot rounds and new tape outs in a pipeline, the number of the tape out on High-K is higher than -- higher in second half than the first half.

因此，但是，我們確實看到客戶試點輪次和新的流片正在籌備中，High-K 上的流片數量高於 - 下半年高於上半年。

So I do see that as a progress as well.

所以我也確實認為這是一個進步。

But the other point in High-K that I want to mention about is the new customer base.

但我想提到的 High-K 的另一點是新客戶群。

These new customer base are more fragmented and small volume.

這些新的客戶群更加分散，體量較小。

So -- and the customer engineering requirement are taking longer time and effort to support.

所以——客戶工程要求需要更長的時間和精力來支持。

So we believe the 28 High-K will take a little bit longer to recover.

因此，我們相信 28 High-K 需要更長的時間才能恢復。

But the poly-SiON remains more solid than the High-K at this point.

但在這一點上，poly-SiON 仍然比 High-K 更堅固。

Okay, appreciate the good color.

好的，欣賞好顏色。

Is there a way to put maybe percentage -- like you see on percentage how quick it may come back?

有沒有辦法給出可能的百分比——就像你看到的百分比一樣，它可能會多快回來？

Knowing it's fragmented and may take time, but if there's a way to think, how you think the contribution may come up from the 12%?

知道它是分散的並且可能需要時間，但如果有辦法思考，你認為貢獻可能來自 12% 嗎？

You mean from the revenue contribution point of view, I think Q2 be better than Q1.

你的意思是從收入貢獻的角度來看，我認為 Q2 比 Q1 好。

But then we are not guiding the percentage specifically.

但是，我們並沒有具體指導百分比。

Again, based on why it is, right, earlier, the poly-SiON remain more -- a bigger portion of that.

再一次，基於它的原因，正確的，更早的，poly-SiON 仍然更多 - 其中更大的一部分。

Thank you.

謝謝你。

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

下一位來自德意志銀行的 Michael Chou。

Couple of questions.

幾個問題。

One is, what is your currency assumption for Q2?

一是，您對第二季度的貨幣假設是什麼？

The currency assumption?

貨幣假設？

Yes.

是的。

So our Q1 weighted average ForEx exchange rate was NT$ 29.3.

所以我們第一季度的加權平均外匯匯率是新台幣 29.3 元。

For the quarter 2, we don't -- again, we don't do forecast.

對於第二季度，我們不 - 再次，我們不做預測。

We just follow the major prediction average by leading banks.

我們只是遵循主要銀行的主要預測平均值。

For time being, we expect to see small appreciation in NT dollars.

暫時，我們預計新台幣會有小幅升值。

But our guidance doesn't involve NT dollars exchange rate.

但我們的指導不涉及新台幣匯率。

Our guidance in ASP flat is in U.S. dollars.

我們對 ASP 持平的指導以美元為單位。

Okay.

好的。

What would be your tax rate in Q2 and as the rest of the year?

您在第二季度和今年剩餘時間的稅率是多少？

For the whole year, what is your view?

一整年，你怎麼看？

Generally speaking, it's always around 15% to 20%.

一般來說，它總是在 15% 到 20% 左右。

However, I would like to take this opportunity to explain.

不過，我想藉此機會解釋一下。

In quarter 1, we book a pretty big amount of tax credit because there's a Taiwan tax corporate rate increase from 17% to 20%.

在第一季度，我們預定了大量的稅收抵免，因為台灣企業稅率從 17% 增加到 20%。

And as a result, we have booked a onetime provisional tax credit in Q1, and that's the reason why we have tax credit instead of tax expenses for quarter 1. And that would be a single one-off event in first quarter only.

因此，我們在第一季度預訂了一次性臨時稅收抵免，這就是為什麼我們在第一季度有稅收抵免而不是稅收費用的原因。這將是第一季度的一次性事件。

And for the whole year average, again, it should be something like between 15% to 20%.

同樣，對於全年平均值，它應該在 15% 到 20% 之間。

So you mean 15% to 20%, that means each quarter or that's a whole year average?

所以你的意思是 15% 到 20%，這意味著每個季度還是全年的平均值？

Whole year average.

全年平均值。

But with the Q1 tax credit, so this year tax rate will be lower than 15%, right?

但是有了Q1的稅收抵免，今年的稅率會低於15%，對吧？

No, no, it still will be around 15% to 20%.

不，不，它仍然會在 15% 到 20% 左右。

Oh, okay, okay.

哦，好吧，好吧。

The other question is regarding the (inaudible) statement of the 28 nanometer progress.

另一個問題是關於 28 納米進展的（聽不清）聲明。

Seems like that High-K/Metal Gate will take a longer time to recover.

似乎 High-K/Metal Gate 需要更長的時間才能恢復。

Is that because of the pricing pressure or you need to catch up with 22-nanometer product introduction in the rest of the year.

是因為定價壓力，還是您需要在今年餘下時間趕上 22 納米產品的推出。

So what is your schedule for 22-nanometer mesh production?

那麼您的 22 納米網格生產計劃是什麼？

Okay.

好的。

So for the year, for the 20-nanometer High-K, the major reason I actually mentioned earlier is because the market has evolving technologies, and we are still under the catch-up mode.

所以今年，對於20納米的High-K，我之前提到的主要原因是因為市場在不斷發展的技術，我們仍然處於追趕模式。

So in that regard, the recovery remains challenged.

因此，在這方面，復甦仍然面臨挑戰。

And in terms of volume recovery, because the new customer base more fragment, small volume, so that's adding the more challenges to that recovery.

而在容量恢復方面，因為新的客戶群更加分散，容量較小，所以這給恢復增加了更多的挑戰。

So that the comment we make, it will may take a bit longer than that.

因此，我們發表的評論可能需要更長的時間。

So if you're asking specific for 22 nanometers, our 22 nanometer current stage is under the process development and the schedule is on track to be ready for customer tape out in first half of '19.

因此，如果您要求具體為 22 納米，我們的 22 納米當前階段正處於工藝開發階段，並且時間表有望在 19 年上半年為客戶流片做好準備。

But, meanwhile, for 28 High-K's engagement, we're concentrated at the 28 HPC and 28 HPC plus.

但是，與此同時，對於 28 High-K 的參與，我們專注於 28 HPC 和 28 HPC plus。

So for your 22 nanometer tape out would that be fully in High-K/Metal Gate together or High-K only?

那麼對於您的 22 納米流片，是完全處於 High-K/Metal Gate 中還是僅在 High-K 中？

It's High-K, yes.

這是High-K，是的。

High K.

高K。

Thank you.

謝謝你。

And the next question is coming from Bill Lu from UBS.

下一個問題來自瑞銀的 Bill Lu。

My first question is on capital spending.

我的第一個問題是關於資本支出。

You are saying NT$ 1.1 billion for the full year, Q1, I think, is roughly NT$ 190 million.

你說全年11億新台幣，我想Q1大概是1.9億新台幣。

So on a run rate basis, Q1 is lower than your full year guide?

所以在運行率的基礎上，第一季度低於你的全年指南？

Is the expectation that it will pick up in the second half of year?

預計下半年會回升嗎？

Can you just talk little bit more about that?

你能多談談嗎？

I think we're still tracking to this NT$ 1.1 billion CapEx budget and maybe quarter 2 will show some slightly increase on a quarter-over-quarter basis.

我認為我們仍在跟踪這 11 億新台幣的資本支出預算，也許第二季度會出現環比略有增加的情況。

But this is actually a small amount in absolute dollar term and the whole four quarter is actually not different significantly to each other.

但這實際上是以絕對美元計算的一小部分，整個四個季度實際上彼此之間並沒有顯著差異。

So this is actually -- even there's a pickup in second quarter, it will be a small amount.

所以這實際上是 - 即使在第二季度有所回升，也將是少量。

So 28, I think there is a bit of capacity around the world.

所以28，我認為世界各地都有一點容量。

That doesn't change your plans at all in terms of the China expansion, correct?

就中國擴張而言，這根本不會改變您的計劃，對嗎？

No, it doesn't change much right now.

不，現在變化不大。

Out of the NT$ 1.1 billion, 33% is actually 8 inch and 67% is the 12 inch.

11億新台幣中，33%其實是8寸，67%是12寸。

And on top of that there is minimum of the general budget spending is estimated about 20% in there, so out of the NT$ 1.1 billion.

最重要的是，一般預算支出中的最低估計約為20％，因此在11億新台幣中。

So it's relatively small in terms of the CapEx spending for the 28, yeah.

因此，就 28 歲的資本支出而言，它相對較小，是的。

I mean, just that TSMC still said that 28 is little bit softer right now, but longer term, they're still confident that 28 is going to be a long lived node.

我的意思是，只是台積電仍然說 28 現在稍微軟一點，但從長遠來看，他們仍然相信 28 將是一個長壽命的節點。

Is that the way you are thinking about it as well or what's the give and take on your expansion decision?

你也是這麼想的嗎？或者你的擴張決定是什麼？

Well, we believe the same thing.

好吧，我們相信同樣的事情。

I mean, that's why we decided and we put the capacity for 28.

我的意思是，這就是我們決定的原因，我們將容量設置為 28 個。

There are some assumption differences.

存在一些假設差異。

Originally, we saw the High-K will be more stronger than the poly-SiON and now we see -- because the product -- the technology readiness, we see a much better healthier loading for the poly-SiON than the High-K.

最初，我們看到 High-K 將比 poly-SiON 更強，現在我們看到 - 因為產品 - 技術準備就緒，我們看到 poly-SiON 比 High-K 更健康的負載。

And -- but I've mentioned earlier, the High-K mainly because the company is evolving.

而且 - 但我之前提到過，High-K 主要是因為公司正在發展。

So that make it bit of a difficult to engaging customers.

所以這使得吸引客戶有點困難。

So -- but in a long run I remain confident in the 28 in general.

所以——但從長遠來看，我總體上對 28 人仍然充滿信心。

One last follow up on this topic is.

關於這個話題的最後一個跟進是。

You talked about 28 seeing more of the High-K tape outs in the second half.

你談到了 28 人在下半場看到了更多的 High-K 磁帶輸出。

As you engage these new, smaller customers, do they also want 22 as well or is 28 High-K good enough for these smaller customers?

當您吸引這些新的、較小的客戶時，他們是否也想要 22 或者 28 High-K 對這些較小的客戶來說是否足夠好？

Is our point there is a natural migration.

是我們的點有自然遷移。

Once you get into 28, you could consider 22.

一旦你進入28，你可以考慮22。

But, again, subject to the different applications, business condition if the customer want to spend investment into the 22.

但是，同樣，受制於不同的應用程序，業務狀況如果客戶想將投資投入到 22.

But it is a natural migration from 28 to 22.

但這是從 28 歲到 22 歲的自然遷移。

For the foundry business, we basically is set of 2 set, so it's more just the different flavor.

對於代工業務，我們基本上是一套2套，所以更多的只是不同的味道。

My second question is on your 2Q guidance.

我的第二個問題是關於你的 2Q 指導。

If I look at shipments up 2% to 4%, ASP flat.

如果我看出貨量增長 2% 到 4%，ASP 持平。

That brings you back to a pretty similar revenue run rate as last year.

這使您回到與去年非常相似的收入運行率。

Gross margin, you are guiding for mid-teens versus at a similar run rate last year, you were getting 17%, 18%.

毛利率，你指導的是青少年，而去年以類似的運行率，你得到了 17%、18%。

Can you help me understand what is the difference in terms of FX, in terms of maybe pricing mix, et cetera?

你能幫我理解在外匯方面有什麼區別，在定價組合等方面有什麼不同嗎？

Well, from a pricing wise, that's better with year-over-year erosions.

好吧，從定價的角度來看，同比下降會更好。

There are some erosions included in that assumption.

該假設中包含一些侵蝕。

And other is, in a same year last time -- same time last year, the foreign exchange rate is different.

另一個是，在去年同一時間——去年同一時間，匯率不同。

So we see some unfavorable foreign exchange rate in Q2.

所以我們在第二季度看到一些不利的外匯匯率。

Then higher material wafers as we all know.

然後是眾所周知的更高材料的晶圓。

The -- other than that, we see some of the 28-nanometer loading improvement, but not as significant yet.

- 除此之外，我們看到了一些 28 納米負載的改進，但還沒有那麼顯著。

So I think that's probably the biggest difference between the 2.

所以我認為這可能是兩者之間最大的區別。

And next one is from Donald Lu from Goldman Sachs.

下一位來自高盛的 Donald Lu。

May I ask first question is the guidance for depreciation and R&D for this year.

請問第一個問題是今年的折舊和研髮指導。

And my second question is can we get more color on this pretty big tax credit in Q1?

我的第二個問題是，我們能否在第一季度的這個相當大的稅收抵免上獲得更多色彩？

Depreciation for 2018 is about the same as 2017, with each quarter it's pretty linear.

2018 年的折舊與 2017 年大致相同，每個季度都非常線性。

We expect to see some decline starting from 2019.

我們預計從 2019 年開始會有所下降。

So it's a flat year-over-year?

所以是同比持平？

Yes.

是的。

Depreciation.

折舊。

Okay.

好的。

And as for tax credit, again, as Taiwan corporate tax rate increased from 17% to 20%.

至於稅收抵免，台灣企業稅率從 17% 提高到 20%。

So the theoretical tax credit UMC is entitled to use also increased, because of our capital expenditure investment in R&D, et cetera.

因此，由於我們在研發等方面的資本支出投資，聯電有權使用的理論上的稅收抵免也增加了。

So we have to book a onetime provisional tax credit in Q1 this year, and that amount is close to NT$ 800 million.

所以我們必須在今年第一季度預定一次臨時稅收抵免，這個數額接近8億新台幣。

How about R&D guidance for this year?

今年的研髮指導如何？

R&D again, it should be somewhat under control perspective and it shouldn't be more than that of last year.

再次是研發，應該在一定程度上受到控制，應該不會超過去年。

Okay.

好的。

R&D expense should be flat to down year-over-year?

研發費用應該同比持平到下降？

Flat to down year to -- overall, R&D cost should be flat to down compared to last year.

與去年持平至下降——總體而言，研發成本與去年相比應該持平至下降。

But the magnitude of change won't be significant.

但變化的幅度不會很大。

And next we have Charlie Chan from Morgan Stanley for questions.

接下來我們請摩根士丹利的 Charlie Chan 提問。

Very good execution in a kind of tough market in first half.

在上半年艱難的市場中表現非常出色。

So my question is on your 28-nanometer business still.

所以我的問題仍然是關於你的 28 納米業務。

First of all, if you look at those new tape outs, do you think majority of them comes from your 40-nanometer project migration?

首先，如果你看看那些新的流片，你認為它們中的大部分來自你的 40 納米項目遷移嗎？

Or is there any new projects of new applications?

或者有沒有新應用的新項目？

Well, not 100% from migrations.

好吧，不是 100% 來自遷移。

They're coming from communication, consumer.

它們來自通信，消費者。

We also see automotive infotainments, the ADAS.

我們還看到了汽車信息娛樂系統 ADAS。

So they are new application.

所以它們是新的應用程序。

And some of it is coming from 40-nanometer, but many are actually also new, not 100% from that, yes.

其中一些來自 40 納米，但許多實際上也是新的，不是 100% 的，是的。

Okay, yes.

好的，是的。

So because we see your quarterly reports, it shows that 40 nanometer is still like 30% of your first quarter revenue, 28 nanometer is 12% right?

所以因為我們看到你們的季度報告，它顯示 40 納米仍然是你們第一季度收入的 30%，28 納米是 12%，對嗎？

So my question is that if half of your 40-nanometer business migrate to your 28-nanometer, do you see any kind of risk to fill up your feeding 40-nanometer capacity?

所以我的問題是，如果你的 40 納米業務中有一半遷移到你的 28 納米，你認為填滿你的 40 納米產能有什麼風險嗎？

Well, the customer pipeline management is always very critical to us.

嗯，客戶管道管理對我們來說總是非常重要。

For the 40 nanometers some of the product will migrate, but some product also will migrating into the 40 nanometers.

對於 40 納米，一些產品會遷移，但有些產品也會遷移到 40 納米。

We see different application coming into a 40.

我們看到不同的應用程序進入 40。

Given time, in the longer term, I think the 40 will also remain very healthy.

考慮到時間，從長遠來看，我認為 40 也將保持非常健康。

But throughout the time it may have some quarter coming -- fluctuate a little bit.

但在整個時間裡，它可能會有一些季度到來 - 有點波動。

But I still feel 40 is healthy.

但我仍然覺得40歲是健康的。

And my second part of question is about your profitability.

我的第二部分問題是關於你的盈利能力。

So I am not sure if you've disclosed it before.

所以我不確定你之前是否披露過。

But can you comment on your 28 nanometer gross margin in the trend into the year end.

但是您能否評論一下您在年底趨勢中的 28 納米毛利率。

And also for your Xiamen fab, at what wafer capacity do you get to the economy of scale, right?

還有你的廈門晶圓廠，你在多大的晶圓產能下才能達到規模經濟，對吧？

So my question is basically, how much more CapEx or capacity you need to expand in for the China fab.

所以我的問題基本上是，你需要為中國工廠擴大多少資本支出或產能。

Xiamen fab currently should reach 17,000 wafers by mid of this year and the target is to ramp up to 25,000 wafers to be -- to reach the economy of scale.

廈門晶圓廠目前應在今年年中達到 17,000 片晶圓，目標是提高到 25,000 片晶圓，以達到規模經濟。

It could be by the end of this year or the next year to get there.

可能要到今年年底或明年才能到達那裡。

And for profitability, because it's still up and running in very early stage, so it has been loss making and it actually eat up UMC's gross margin by 4% to 5% at least.

而對於盈利能力，因為它還處於非常早期的階段，所以它一直在虧損，實際上它至少吞噬了聯電的毛利率4%到5%。

So that's part of the reason why on a year-over-year comparison basis, our margins seems to be lower and Xiamen is also a major -- one of the major factor.

這就是為什麼在同比比較的基礎上，我們的利潤率似乎較低的部分原因，而廈門也是一個主要因素 - 主要因素之一。

So for 28, what utilization can you get to the breakeven and the timing for that breakeven, can you give us some color?

那麼對於 28，你能達到盈虧平衡點的利用率和盈虧平衡點的時機，你能給我們一些顏色嗎？

For the gross margin percentage we don't actually break down by fab or by particular node.

對於毛利率百分比，我們實際上並沒有按晶圓廠或特定節點細分。

So as Chitung mentioned earlier, the gross margin in 2018 will be -- it's more challenging than 2017, it's because the depreciation will be peaked around 2017 to 2019 and we think that we'll -- actually that we'll actually will start seeing some improvement.

所以正如吉東之前提到的，2018 年的毛利率將——比 2017 年更具挑戰性，因為折舊將在 2017 年至 2019 年左右達到頂峰，我們認為我們會——實際上我們會開始看到一些改進。

The part of the reason Chitung mentioned 12X, we see 12X will be a margin drag and we'll see the light loading of 28 will be a margin drag.

Chitung 提到 12X 的部分原因，我們看到 12X 將是一個邊距拖動，我們將看到 28 的輕載將是一個邊距拖動。

And other than that -- so that's also the fact what we've mentioned is the -- 2018 gross margin it will be higher than the -- I mean more challenging than 2017.

除此之外 - 這也是我們提到的事實 - 2018 年的毛利率將高於 - 我的意思是比 2017 年更具挑戰性。

In general, the -- we are under -- so what we call a transitioning period -- okay, because we do see that as a issue and we defined that as a structural profitability issue, so we would like to pursue that.

總的來說，我們處於 - 所以我們稱之為過渡期 - 好吧，因為我們確實將其視為一個問題，並且我們將其定義為結構性盈利能力問題，因此我們希望繼續努力。

And one other approach that we take is, what we mentioned in the past, is the proceed with a more disciplined CapEx approach, so all the future investments will be more of a ROI driven to enhance that, okay.

我們採取的另一種方法是，我們過去提到的，是採用更嚴格的資本支出方法，因此所有未來的投資將更多地以 ROI 為驅動力，以增強這一點，好吧。

However, for the past CapEx we spend in a past few years did increase in our annual depreciation, so we have to get over that hump and that's our current plan.

然而，對於過去幾年的資本支出，我們的年度折舊確實增加了，所以我們必須克服這個困難，這就是我們目前的計劃。

Thank you, Charlie.

謝謝你，查理。

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

接下來是摩根大通的 Gokul Hariharan。

First of all, could you talk a little bit about -- you mentioned that poly-SiON is still a major of the mix.

首先，您能否談一談——您提到聚-SiON 仍然是混合的主要成分。

Based on what do you see in terms of tape outs et cetera, when do you expect High-K/Metal Gate or HPC or HPC plus nodes to be majority of your 28 nanometer.

根據您在流片等方面看到的情況，您預計 High-K/Metal Gate 或 HPC 或 HPC 加節點何時佔 28 納米的大部分。

Do you have any visibility within second half of this year or it could take into 2019?

您在今年下半年或 2019 年有任何知名度嗎？

Well, for poly-SiONs the tape outs continue, the engagements also continue and we have pretty diverse application in the area.

好吧，對於 poly-SiON，流片還在繼續，合作也在繼續，我們在該領域有非常多樣化的應用。

So I think that the demand remain very solid.

所以我認為需求仍然非常穩固。

And for the High-K, because there are more fragments, more form a customer base point of view.

而對於High-K來說，因為有更多的碎片，更形成了客戶群的觀點。

We don't have a good visibility for when it's going to cross over, but actually it's not in the 2018.

我們無法很好地了解它何時會跨越，但實際上它不是在 2018 年。

Could a talk a little a bit more in terms of the work you are doing with the some of your 8 inch specialty technologies trying to move into more higher end automotive industry from the more consumer driver IC kind of stuff.

關於您正在使用您的一些 8 英寸專業技術嘗試從更多消費驅動器 IC 類型的東西進入更高端汽車行業的工作，能否再談一點。

Can you talk about what other process that's going on there, what kind of price increases ASP increases could you see on a, let's say, 2 to 3 basis from doing that.

你能談談那裡正在發生的其他過程嗎，你可以看到什麼樣的價格上漲 ASP 增加了，比如說，在 2 到 3 的基礎上這樣做。

Just give us some color on that.

只是給我們一些顏色。

Okay.

好的。

Let me -- first of all the 8 inch fab continue to operate at full capacity as everyone knows and this will continue in -- throughout this year is what we believe.

讓我——首先，眾所周知，8 英寸晶圓廠將繼續滿負荷運轉，這將持續下去——我們相信這一年。

And given this worldwide shortage at 8 inch, our field of focus now is one focusing on long term partnership engagement, okay.

鑑於全球 8 英寸的短缺，我們現在的重點領域是關注長期合作夥伴關係，好吧。

So we want to make sure that we're serving the customer right, so that we can establish some of the long term partnership, and so we try to establish some kind of the longer term alignment with the customer so the demand and loading can go beyond 2018.

所以我們想確保我們為客戶服務是正確的，這樣我們就可以建立一些長期的合作夥伴關係，所以我們嘗試與客戶建立某種長期的一致性，這樣需求和負載就可以去2018 年以後。

The same time we look at different applications and from our demand portfolios and some of the product mix actually helping in terms of blended ASP and we'll actually try to align with those and we'll try to support and not only from a technology standpoint, also from the capacity standpoint.

同時，我們從我們的需求組合和一些產品組合來看實際上有助於混合 ASP 的不同應用程序，我們實際上將嘗試與這些保持一致，我們將嘗試支持，而不僅僅是從技術角度，也是從容量的角度來看。

We haven't really talked about the increase of pricing, because I mentioned earlier, we don't simply increase the pricing because the demand surge.

我們還沒有真正談到漲價，因為我前面提到過，我們不會因為需求激增而簡單地漲價。

We actually more manage that through the product mix improvement.

實際上，我們通過產品組合改進來管理這一點。

And at the same time, we actually are having a some of the CapEx spending in 8 inch as well that's being our CapEx projection.

同時，我們實際上也有一些 8 英寸的資本支出，這也是我們的資本支出預測。

Those will help us to increase slight -- some improvement of the 8 inch capacity.

這些將幫助我們稍微增加——8英寸容量的一些改進。

And so combination of those, we hope the 8 inch ASP and can be maintained or a giving a better way to offset a erosion.

因此，結合這些，我們希望 8 英寸的 ASP 可以保持或提供更好的方法來抵消侵蝕。

So we have some ASP maintenance in there.

所以我們在那裡進行了一些 ASP 維護。

Just one clarification, Chitung, could you clarify your comments on depreciation?

Chitung，你能澄清一下你對折舊的評論嗎？

I think last time you talked about maybe 0% to 3% decline in 2018 depreciation, if I heard it right.

我想你上次談到 2018 年貶值可能下降 0% 到 3%，如果我沒聽錯的話。

Are we looking for flat in 2018 and decline in 2019?

我們是否在尋找 2018 年持平並在 2019 年下降？

Is it that for depreciation?

是為了貶值嗎？

I think this quarter still flat to -- I mean, this year is still flat to 2017, maybe small decrease.

我認為本季度仍然持平 - 我的意思是，今年與 2017 年持平，可能會有小幅下降。

But, I think, flat is probably the better way to describe it.

但是，我認為，扁平化可能是更好的描述方式。

But not just decline really in the 2019.

但不僅僅是在 2019 年真正下降。

And the next one is from Sebastian Hou from CLSA.

下一位來自里昂證券的 Sebastian Hou。

My first question is on the gross margin guidance for second quarter, well up from low teens to mid-teens.

我的第一個問題是關於第二季度的毛利率指導，從低青少年到中青少年。

So is it more due to better utilization rate or product mix or pricing adjustment?

那麼更多是由於更好的利用率或產品組合還是價格調整？

First of all we have more working days.

首先，我們有更多的工作日。

In Q1 we actually have a fewer working days in annual production to maintenance and we don't have that in Q2.

在第一季度，我們實際上每年生產到維護的工作日更少，而在第二季度我們沒有。

Secondly, we have a improved 28 nanometer loading.

其次，我們有一個改進的 28 納米負載。

So between the 2, we actually see some improvement on the gross margins.

所以在兩者之間，我們實際上看到了毛利率的一些改善。

The foreign exchange rate and the raw material cost continues -- remains same, so that doesn't give us much of a benefit, yes.

外匯匯率和原材料成本繼續 - 保持不變，所以這並沒有給我們帶來太多好處，是的。

So there is not much of pricing adjustment impacts on the second quarter margin improvement?

那麼定價調整對第二季度利潤率的提升影響不大？

The blended ASP will increase, because if you have higher 28 nanometer loading.

混合 ASP 會增加，因為如果您有更高的 28 納米負載。

So -- but at this point, we see that 28 nanometer improvements actually help us to minimize the quarter-over-quarter price erosion.

所以 - 但在這一點上，我們看到 28 納米的改進實際上幫助我們最大限度地減少季度價格侵蝕。

So we actually guide that ASP is flat.

所以我們實際上指導ASP是持平的。

And the second question is on the OpEx.

第二個問題是關於運營支出的。

It dropped about like 7% quarter-on-quarter in first quarter.

第一季度環比下降約 7%。

Do you see this kind of the absolute level kind of like the sustainable level over for each quarter throughout this year or will continue to be -- likely to be lower.

您是否看到這種絕對水平有點像今年每個季度的可持續水平，或者將繼續 - 可能會更低。

Sebastian, you're referring to the Q1 '18 operating expense?

塞巴斯蒂安，您指的是 18 年第一季度的運營費用？

Yes.

是的。

I see.

我懂了。

Well, in Q1'18 the operating expense reached actually a sharp decline due to the very challenging Q1 environment when we go into Q1.

好吧，在 18 年第一季度，由於我們進入第一季度時第一季度環境非常具有挑戰性，運營費用實際上急劇下降。

So we've been control that seriously.

所以我們一直在認真控制。

But the trend is not sustainable at this point.

但在這一點上，這種趨勢是不可持續的。

But quarter operating expense we will continue monitoring that closely and spend all effort to control.

但季度運營費用我們將繼續密切監控並儘一切努力控制。

But that is not a trend that is sustainable, no.

但這不是一個可持續的趨勢，不。

So which means as the situation turns better from second quarter onwards, particularly you mentioned 28 UTR improved, the OpEx likely to increase sequentially again in second quarter and second half.

所以這意味著隨著從第二季度開始情況好轉，特別是你提到的 28 UTR 改善，OpEx 可能會在第二季度和下半年再次環比增長。

Well -- yes, I mean the other way to look at this is, our 2018 annual operating expense budget will be similar to our 2017.

嗯 - 是的，我的意思是另一種看待這個問題的方式是，我們 2018 年的年度運營費用預算將與 2017 年相似。

And Jason earlier in your prepared remarks you talk about the growing opportunities in wireless communication and computer peripheral related chip demand.

Jason 早些時候在您準備好的講話中談到了無線通信和計算機外圍相關芯片需求的增長機會。

Can you elaborate more little bit in detail on the what specific chips are you seeing more opportunity?

您能否更詳細地說明您看到更多機會的具體芯片是什麼？

If we break it down by the 3 C, the computer actually is strong -- strongest.

如果我們用 3 C 來分解它，計算機實際上是強大的——最強的。

And it coming from a tablet, fiber controller followed by the communications and we see some RF switch, AP and baseband.

它來自平板電腦、光纖控制器和通信，我們看到一些射頻開關、AP 和基帶。

So -- but consumer is actually the weakest.

所以——但消費者實際上是最弱的。

I remember the company earlier talk about the opportunity in RF SOI.

我記得該公司早些時候談到了 RF SOI 的機會。

So how do you see this platform going forward into -- particularly when we enter 5G?

那麼您如何看待這個平台的發展——尤其是當我們進入 5G 時？

And then how much of this roughly numbers -- how much of this account for your total revenue?

然後這個粗略的數字中有多少——這佔你總收入的多少？

Well, I do not have a specific percentage of that.

好吧，我沒有具體的百分比。

But the RF SOI is area we've been focused on quite some time and we have some success in 8 inch and we are continuing expanding our technology from 8 inch to 12 inch.

但 RF SOI 是我們很長一段時間以來一直關注的領域，我們在 8 英寸方面取得了一些成功，並且我們正在繼續將我們的技術從 8 英寸擴展到 12 英寸。

But, of course, the 12 inch -- the current -- the overall ecosystem is not completely ready yet.

但是，當然，12 英寸——目前的——整個生態系統還沒有完全準備好。

So the near term focus will continue to be a 8 inch supporting our RF SOI business needs and continued developing the ecosystem for the 12 inch RF SOI and it will be our long term focus.

因此，近期重點將繼續是支持我們的 RF SOI 業務需求的 8 英寸，並繼續為 12 英寸 RF SOI 開發生態系統，這將是我們的長期重點。

In terms of the IC components in the RF module, this RF SOI, do you still focus more on the switchboard, do you also see rising opportunities on the poly-amplifier?

在射頻模塊中的IC元件方面，這個射頻SOI，您是否仍然更加關注交換機，您是否也看到了多放大器的上昇機會？

Well, I mean we do see that.

好吧，我的意思是我們確實看到了。

I mean, we see that as continued growth area, but not all of it is UMC addressable.

我的意思是，我們認為這是一個持續增長的領域，但並非所有這些都是 UMC 可尋址的。

So we -- it's because the product -- the customer engagement as well as our technology offering, so the -- but if your question is about the market outlook, we actually have pretty optimistic view in this area.

所以我們——這是因為產品——客戶參與度以及我們的技術產品，所以——但如果你的問題是關於市場前景的，我們實際上在這個領域有相當樂觀的看法。

Last from me is 28 nanometers.

我最後一個是 28 納米。

Last quarter, the company talk about the China being aggressive here and you did see some continued pricing pressure.

上個季度，該公司談到中國在這裡表現得非常積極，你確實看到了一些持續的定價壓力。

And how do you see the competition from China at this moment and also the pricing environment throughout the end of this year?

您如何看待目前來自中國的競爭以及整個年底的定價環境？

With the China -- well, I have to put this way.

對於中國——嗯，我必須這樣說。

With the China, national policy of fostering the local semiconductor -- manufacturing environment, you will see more people coming into this market.

隨著中國，扶植本土半導體製造環境的國家政策，你會看到更多的人進入這個市場。

But at the UMC, we position ourselves to grow along with this Chinese semi market and with our both 8 inch fab do we have one and the 12 inch in Xiamen, we can certainly entertain all those opportunities.

但在聯華電子，我們將自己定位為與這個中國半導體市場一起成長，我們的 8 英寸晶圓廠和廈門的 12 英寸晶圓廠，我們當然可以抓住所有這些機會。

Pricing is a market competitiveness issue.

定價是一個市場競爭力問題。

We will remain competitive in this market.

我們將在這個市場上保持競爭力。

I mean not only on pricing, also on the manufacturing capability as well as the yield and the cycle times so on.

我的意思不僅是定價，還有製造能力以及產量和周期時間等等。

So, yes, I mean we'll sure we will be competitive in the area.

所以，是的，我的意思是我們將確定我們將在該領域具有競爭力。

Sure thank you.

當然謝謝。

And next in line will be Roland Shu from Citigroup.

接下來是花旗集團的 Roland Shu。

First, may I know your view of the overall semiconductor foundry and the TM -- and the UMC's, of course, for this year?

首先，我能否知道您對今年整體半導體代工廠和 TM 的看法——當然還有聯電的看法？

Well, I mean semi growth remain there.

好吧，我的意思是半增長仍然存在。

I mean, we see the overall semi is the mid-single digit for the year and foundry probably a little bit better.

我的意思是，我們看到整個半成品是今年的中個位數，而代工可能會好一點。

We -- for us, 2018, we will see some growth.

我們——對我們來說，2018 年，我們將看到一些增長。

But it is not going to be as high as the foundry growth.

但它不會像代工廠的增長那麼高。

Yes -- I mean as our strategy changed in mid last year, so we do -- we'll see some growth, but not as high as the foundry growth.

是的——我的意思是我們的戰略在去年年中發生了變化，所以我們這樣做了——我們會看到一些增長，但不會像代工廠的增長那麼高。

For TSMC's 28 nanometer, 40 nanometer and above nodes, total revenue is ready to decline this year.

台積電28納米、40納米及以上節點，今年總營收準備下滑。

And your is better, your total revenue will be increased this year.

而且你的更好，今年你的總收入會增加。

So are you taking share against TSMC or can we have a better view of where does the growth comes from by technology node?

那麼您是在與台積電競爭，還是我們可以更好地了解技術節點的增長來自哪裡？

Let me see if I get.

讓我看看我是否得到。

First of all, I think, our growth year-over-year will be smaller than the foundry growth, so in that regard I do not think are getting market share.

首先，我認為，我們的同比增長將小於代工廠的增長，因此在這方面我認為不會獲得市場份額。

And as far as the TSMC, I do not comment on competitions.

至於台積電，我不評論比賽。

And so it's hard to comment that.

因此很難對此發表評論。

So -- but I -- that's couple of reference.

所以 - 但我 - 這是幾個參考。

And I kind of forgot your third question.

我有點忘了你的第三個問題。

I am sorry.

對不起。

Yes.

是的。

Just -- I would like to have your breakdown, the growth breakdown for your -- by technology node.

只是——我想知道你的細分，你的增長細分——按技術節點。

So which node will grow strongest and which node will probably decline.

所以哪個節點會增長最強，哪個節點可能會下降。

So, Roland, we have full capacity utilization rate for almost every node expect for 28 High-K and we are continuing to expand our 8 inch capacity at [Fujian] as well as some 12-inch capacity in Xiamen and there is also efficiency improvement across the whole fab we operate.

所以，Roland，我們幾乎每個節點都有滿負荷利用率，預計 28 High-K，我們正在繼續擴大我們在 [福建] 的 8 英寸產能以及廈門的一些 12 英寸產能，效率也有所提高在我們運營的整個晶圓廠。

So I think that's where the growth mostly coming from.

所以我認為這就是增長的主要來源。

Second question is on your -- just the other side, talk about -- if the worldwide 8 inch capacity shortage and now there are some newcomers you're seeing 12 inch aluminum interconnection capacity to build these application based on 8 inch uses related.

第二個問題是在你的 - 就在另一邊，談談 - 如果全球 8 英寸產能短缺，現在有一些新來者你看到 12 英寸鋁互連產能來構建這些基於 8 英寸用途相關的應用。

So will you consider to restart your 12 inch alumina line or maybe you will upgrade or retrofit your 12 inch ideal capacity to do this aluminum interconnection to capture the 8 inch business opportunity going forward.

那麼您是否會考慮重新啟動您的 12 英寸氧化鋁生產線，或者您可能會升級或改造您的 12 英寸理想產能以進行這種鋁互連，以抓住未來 8 英寸的商機。

Well, first of all -- I mean our capacity vacancy is mainly at 28 High-K and so those capacity is not suitable for the 12 inch aluminum line and the inches in the 12-inch aluminum line is there, we are evaluating it.

嗯，首先——我的意思是我們的產能空缺主要在 28 High-K，所以這些產能不適合 12 英寸鋁線，而 12 英寸鋁線的英寸在那裡，我們正在評估它。

If follow -- our policy is unless it becomes business justifiable we will not get into that.

如果遵循 - 我們的政策是，除非它變得商業合理，否則我們不會參與其中。

But -- so this decision will be more of a business oriented as long as ROI we can justify.

但是 - 只要我們可以證明投資回報率，這個決定將更多地以業務為導向。

And, yes, I mean we have the financial feasibility to do so and we have the technology to do that as well.

而且，是的，我的意思是我們有這樣做的財務可行性，我們也有這樣做的技術。

But we want to make sure it is ROI justifiable.

但我們要確保它的投資回報率是合理的。

Last question then, maybe Chitung can give us some more color.

那麼最後一個問題，也許Chitung可以給我們更多的顏色。

In first quarter we have big amount on this net other operating income and also net non-operating income in first quarter.

在第一季度，我們在其他淨營業收入和第一季度的淨營業外收入上都有很大的數額。

Other revenue is mainly from subsidies or grant from government.

其他收入主要來自政府補貼或補助。

And then, of course, our Xiamen fab is main beneficiary of that in terms of other revenue.

當然，就其他收入而言，我們的廈門工廠是主要受益者。

And the non-operating income is mainly foreign currency.

營業外收入主要是外幣。

Again, this is similar to Q4 of last year that are Xiamen fab -- the function currency is renminbi, but they borrow U.S. dollars as a syndicated loan and the strengths in renminbi contribute to the majority of the non-operating income in Q1.

同樣，這與去年第四季度廈門工廠類似——功能貨幣是人民幣，但他們以銀團貸款的形式借入美元，人民幣的強勢貢獻了第一季度的大部分營業外收入。

So for this operating income are we going to have the similar amount or even bigger amount in second quarter for this [capacity]?

那麼對於這個營業收入，我們是否會在第二季度為這個[容量]獲得類似的數量甚至更大的數量？

No, other revenue every quarter should be similar, but non-operating income is highly dependent on the currency which we can now predict, so we don't expect to see -- we don't make any prediction for the second quarter.

不，每個季度的其他收入應該是相似的，但是營業外收入高度依賴於我們現在可以預測的貨幣，所以我們不希望看到——我們不對第二季度做出任何預測。

So the other operating income would be similar amount every quarter through end up this year and the going forward, is it right?

因此，到今年年底以及以後的每個季度，其他營業收入將是相似的數額，對嗎？

No, only end of this year, not going forward.

不，只是今年年底，不會繼續前進。

Okay, just end up this year.

好吧，今年就結束了。

Okay.

好的。

And the next one is from of Angus Milne of HSBC.

下一位來自匯豐銀行的 Angus Milne。

Just kind of recap questions on the Q1.

只是回顧一下 Q1 的問題。

So can you talk us about the 45, 65 nanometer strength especially pretty strong in 1Q.

那麼，您能否談談 45、65 納米的強度在 1Q 中特別強。

Could you give us some colors on maybe end market and product application strength over there.

您能否給我們一些關於那裡的終端市場和產品應用實力的顏色。

And also 20 nanometer, you had a puke down of almost 20% in 1Q quarter-on-quarter.

還有 20 納米，第一季度環比下降了近 20%。

Can you give some on color like how much is that coming down lower wafer shipment and how much of that is coming from -- actually coming from lower ASP.

您能否提供一些顏色，例如下降的晶圓出貨量有多少，其中有多少來自 - 實際上來自較低的 ASP。

I'm sorry I kind of lost the question.

對不起，我有點失去了這個問題。

Can you repeat that?

你可以重複一遍嗎？

Thank you.

謝謝你。

Yes, just on the -- maybe just 20 nanometer, you had a puking of first quarter, right, down like 20% quarter-on-quarter.

是的，就在——也許只有 20 納米，你在第一季度嘔吐了，對，環比下降了 20%。

We just want to know about like how much of that decline is coming from lower wafer shipments as opposed to lower pricing?

我們只是想知道這種下降有多少來自晶圓出貨量下降而不是價格下降？

Well, if you talk about 20, it's mainly because of High-K as a lower utilization rate, not because of pricing.

好吧，如果你說20，主要是因為High-K作為較低的利用率，而不是因為定價。

And next we have Randy Abrams from Crédit Suisse for questions.

接下來我們請瑞士信貸的 Randy Abrams 提問。

Xiamen, I mean, Chitung you mentioned the 4 to 5 basis point or point some gross margin.

廈門，我的意思是，吉東你提到的4到5個基點或點毛利率。

I mean, could you talk about just what you need to do to get back?

我的意思是，你能談談你需要做什麼才能回來嗎？

Is it -- like how much is it getting to scale to 25k or whether there is under loading in that fab or you need to just bring the performance up to the Taiwan -- like the Taiwan standard yield do you have.

是不是 - 比如它要擴展到 25k 多少，或者該工廠是否有負載不足，或者你需要將性能提升到台灣 - 就像你有台灣標準產量一樣。

So if you could just talk about how you could close the gap and maybe a timeline to reducing that drag in Xiamen.

所以，如果你能談談如何縮小差距，或許還有一個時間表來減少廈門的阻力。

For the time being we don't really have exact target as yet in mind in terms of -- maybe if we take our Singapore fab as a example, as a reference.

就目前而言，我們還沒有真正考慮到確切的目標——也許如果我們以我們的新加坡工廠為例，作為參考。

It probably take more than 4, 5, 6 -- 4 or 5 years at least given the difficulties in small scale single standalone fabs.

考慮到小規模單一獨立晶圓廠的困難，至少可能需要 4、5、6 至 4 或 5 年以上的時間。

But the subsidies certainly offset the operating losses we encounter right now.

但補貼肯定抵消了我們現在遇到的經營虧損。

So I think it's a multiple dimension in terms of how far we need to bring the capacity up to the economy of scale and at the same time load the fab simultaneously.

所以我認為這是一個多維度的問題，我們需要在多大程度上將產能提升到規模經濟，同時同時加載晶圓廠。

And so I don't see in the near term we're going to see a profit at Xiamen fab.

所以我認為在短期內我們不會在廈門工廠看到盈利。

But the improvement definitely will start kicking once we reach the full capacity.

但是一旦我們達到滿負荷，改進肯定會開始。

And then the second part was just, is full capacity now 25k?

然後第二部分只是，現在滿容量是 25k 嗎？

I think when the fab was announced it was 40k or 50k.

我想當晶圓廠宣佈時是 40k 或 50k。

But will that...

但是會不會...

2 modules, 2 stage.

2 個模塊，2 個階段。

So stage 1 is 25 and stage 2 is another 25.

所以第一階段是25，第二階段是另一個25。

And have you made a plan yet for stage 2. Like is it still dependent on ROIC or is it really the plan depend to scale as like a 2 fab concept.

你是否已經為第 2 階段製定了計劃。它是否仍然依賴於 ROIC，或者它是否真的像 2 晶圓廠概念一樣依賴於規模。

And so ultimately in a few years perhaps 50k there still for logic?

所以最終在幾年內可能還有 50k 用於邏輯？

We will focus on stage 1 only first right now.

我們現在將只關注第一階段。

So we want to -- of course, tried to let the operation -- at least can contribute some of the investment for the future.

所以我們希望——當然，試圖讓運營——至少可以為未來貢獻一些投資。

So it also takes time to see the cash flow to come out.

所以看到現金流出來也需要時間。

So we will focus on stage 1 for now and try to bring up the operating efficiency first before we come out with fab 2 plan.

所以我們現在將專注於第一階段，並在我們提出第二工廠計劃之前先嘗試提高運營效率。

And then just I think about it then the CapEx would come down even further like.

然後我想一想，資本支出會進一步下降。

Once you fill the 25k in the next year, do you then have not much even space to add capacity so that you go truly into a low CapEx mode or how do you think -- or do you have places you can keep expanding if you still have growth to go after?

一旦你在明年填補了 25k，那麼你是否沒有足夠的空間來增加容量，以便你真正進入低資本支出模式或者你怎麼想 - 或者你有沒有可以繼續擴展的地方，如果你仍然有成長要追求嗎？

We have some more space for expansion.

我們還有更多的擴展空間。

We saw opening of the phase 2 node between Xiamen and Taiwan.

我們看到廈門和台灣之間的第二階段節點開通。

Right now the -- for CapEx projection we're giving out for year -- for the 2018, and the 2018 -- '19 we'll actually leave that as an option in order to discuss and hopefully we can give you some guidance by end of the year.

現在——對於我們將給出的年度資本支出預測——對於 2018 年和 2018 年——19 年，我們實際上會將其作為一個選項進行討論，希望我們可以通過以下方式為您提供一些指導年底。

(Operator Instructions) And the last question is from Sebastian Hou from CLSA.

（操作員說明）最後一個問題來自 CLSA 的 Sebastian Hou。

Just one question is on the CapEx and cash flow.

只有一個問題是關於資本支出和現金流的。

So is in by the new strategy of the companies that will have a lower CapEx going forward.

未來資本支出較低的公司的新戰略也是如此。

So theoretically free cash flow may increase quite significantly in the next few years.

因此，理論上，未來幾年自由現金流可能會大幅增加。

But as I calculate your -- based on your last year free cash flow and the dividend payout.

但正如我根據你去年的自由現金流和股息支付計算你的那樣。

Although the dividend payout ratio is high divided by the EPS you earned.

儘管股息支付率高除以您賺取的每股收益。

But the -- based on the free cash flow you generate last year is only account for no more than 50%.

但是——基於你去年產生的自由現金流，只佔不超過50%。

So going forward, will you -- your payout policy will be based on the earnings per share or based on the free cash flow per share?

那麼展望未來，您的派息政策將基於每股收益還是基於每股自由現金流？

It's a combination.

這是一個組合。

Of course, we want to maintain certain capability in total of months in terms of cash dividend.

當然，我們希望在現金分紅方面總共保持幾個月的一定能力。

But payout ratio is also a ratio -- is an index where you want to make sure we can communicate to our shareholders.

但派息率也是一個比率——是一個你想確保我們可以與股東溝通的指數。

But did you pay -- is it possible that you pay out more than 100% or pay special dividend in any of your consideration?

但是您是否支付了 - 您是否有可能支付超過 100% 或支付特別股息？

We don't consider special dividend at the moment.

我們目前不考慮特別股息。

And payout to -- up to 100% is possible and we did that before.

並且支付給 - 高達 100% 是可能的，我們之前也這樣做過。

And 100% above?

100% 以上？

Yes.

是的。

Thank you.

謝謝你。

We thank you for all your questions.

我們感謝您提出的所有問題。

This concludes today's Q&A session.

今天的問答環節到此結束。

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

我將把事情交給 UMC IR 負責人結束髮言。

Thank you for attending this conference today.

感謝您參加今天的這次會議。

We appreciate your questions.

我們感謝您的提問。

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

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

Have a good day.

祝你有美好的一天。

Thank you.

謝謝你。

Thank you, Mr. Lin.

謝謝你，林先生。

And ladies and gentlemen, that concludes our conference for first quarter 2018.

女士們先生們，我們 2018 年第一季度的會議到此結束。

Thank you for your participation in UMC's conference.

感謝您參加聯電的會議。

There would be a webcast replay within an hour.

一個小時內將有一個網絡廣播重播。

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。

Good bye.

再見。