We'd like to take the first question from Ms. Shikanai from JP Morgan Securities. Thank you very much. This is Mio Shikanai from JP Morgan. First of all, congratulations on a very strong earnings. I had a question around the SoC tester market. How has your view of the SoC tester market changed with your prior outlook in terms of which applications are coming up again? Is it the GPU, ASIC, or is it CPU? How should we think about the relative contribution from higher chip volumes, longer test times, and increase in test insertions? I guess it's a bit too early, but are you thinking about the sustainability of the demand into next year? [Non-English content] This is Doug. Thanks, Shikanai-san for the question. To answer, on the SoC market, we're seeing very strong demand across all of those areas, GPU, custom ASIC, and CPU. I would say, most of the increase in the SoC TAM that we just announced is coming from more inference applications. That's what's really driving that change more than anything, in particular with the CPU business. We do see that to be sustainable throughout this year and into next year. As to test content, I think we're continuing to see additional test content increases through test times and additional insertions, in particular for the accelerator market where 3D packaging is driving more complex devices. That's going to continue to be a big driver for us. A lot of the unit volume increase on the inferencing side and CPU side is driving some of the additional market TAM increases. [Non-English content] Thank you. Just a quick follow-up. How does CPU testing compare with GPU ASIC in terms of test time and intensity? [Non-English content] Yeah. The test time, particularly for the package test on CPU, is going to be quite a bit lower than what we'd see on the accelerator just because the complexities of an accelerator in a 3D package. At the wafer sort level, if you're testing a monolithic chip, they're relatively similar. You may see actually a little bit higher on the CPU. In the back end, the final test package, definitely it's higher. I'm not at liberty to give you clear numbers on that, but it's fair to say that the accelerator side on the final test is higher. [Non-English content] Very clear. Thank you. [Non-English content] [Non-English content] Thank you very much, Ms. Shikanai. Next question is from Mr. Yamamoto of Mizuho Securities. Go ahead, please. [Non-English content] This is Yamamoto from Mizuho Securities. I am sorry for the very similar questions. I have a question for page 12. This is regarding the tester market outlook for SoC. Now, as for midpoint, you have revised your projection from JPY 9.1 billion to JPY 11 billion, JPY 2 billion increase. I would like to know the breakdown of JPY 2 billion among ASIC, CPU, and GPU, how much impact for each one of three application have and how much upward revision is made? Also, for the SoC tester sales, again, you have revised the sales projection. I want to know the breakdown for ASIC, CPU, and GPU for that upward revision. Yeah, that's a good question. The upward change is mostly, as Doug said in the beginning of the call, due to the growth in inferencing and the compute segments. I think it's too complex, in my opinion, to divide it up into three different segments, because a lot of these devices go together. Some of the applications are also interchangeable in terms of how they're used in the end. The upward projection, obviously, as Doug said, is due to the changes that we are seeing in the compute or the growth we are seeing in the compute and the inferencing market. We can also safely say that the custom ASIC market, the compute market, as some of the leaders in the industry have been saying, are going to be significantly larger than the GPU market. Right now, I would say GPU market is still the largest, but as the time goes, we will see that the other markets are as large, if not significantly larger. [Non-English content] Hi, this is Doug. Yamamoto-san, let me add just one comment, which is, for us, since our V93000 platform is so prolific and being used across the industry, across all of the different compute applications, it really doesn't matter where that growth comes from, because we're positioned with the V93000 so that, in fact, the configurations are very similar in some cases with our digital instruments and our power supplies. Oftentimes, as Sanjeev mentioned, our customers will purchase capacity, and they'll be able to configure those for whatever type of application. That's a strength that we have right now with that platform is the usability across all of those different high-performance compute subsegments. [Non-English content] [Non-English content] [Non-English content] I have one additional question. Is that because of the drastic increase of the number of chips which drove the upward revision? I think Advantest people knew a lot about what sort of test will be conducted by customers. I don't think there is any surprise in terms of testing session or test time. I wonder this kind of upward revision is driven by the number of chips. Is my understanding correct? Yeah, I think so. I think there are a lot more customers now doing custom ASICs. Most of the hyperscalers, as you know, have some type of a strategy of doing chips in-house. Those chips are obviously in addition to the GPUs that we have seen in the past. We have also seen significant increase in the compute market and the server space. Obviously that's additional. One segment that we have not talked about before, that we didn't use to split, networking. We actually also have a significant market share in that space. We just didn't talk about it before. That space also has grown significantly. The answer to your question is absolutely yes, that there are a lot more chips now. Luckily or fortunately, we are a major player with dominant market share, as Doug mentioned, in all of those segments. We are benefiting from the increase. [Non-English content] [Non-English content] Thank you very much. That was very clear. [Non-English content] Thank you very much, Yamamoto-san. Now we'd like to take the question from Mr. Nakamura from Goldman Sachs. Thank you very much. I wanted to ask you about the production capacity expansion plans. You mentioned that you're accelerating the efforts right now, but could you clarify whether you're accelerating your capacity expansion plans even compared to your commentary you made back in April? I think at that time you mentioned for SoC testers, you're expanding it to roughly 5,000 units by the end of March 2027, and then to 10,000 units by either end of 2028 or early 2029. Just wanted to understand where your capacity expansion plans are as of now. [Non-English content] Thank you, Shuhei-san. This is Doug. Yes, as you mentioned, we had stated a 10,000 93Ks per year by the end of 2028, early 2029. We're pulling that in, not prepared yet to say how much we're pulling that in with a new date. It's something that we're working on right now internally. What keeps happening is there's more wafer starts, more advanced packaging capacity being put in place. Every time we think we've got locked in on where we need to be on the scaling side, we have to go back and look again as more capacity comes online. The good news is, our production systems are set up to allow us to scale like that. Between our supply chain and long-term agreements, we have component suppliers and our relationship with our contract manufacturer, they can react quickly to our needs. In fact, our contract manufacturer is putting a second factory in Southeast Asia to help support the scaling that we're asking them to do for us. That's a long answer to really a short question, which is, we'll have to get back to you. We're scrubbing the information now, and I expect next quarter to have a more clear date for when we'll bring in that production expansion. [Non-English content] Thank you very much. Just a follow up. In terms of the 5,000 unit mark, are you approaching that number already? I think you used to say by the end of March 2027. Is that being within right now as well? Could you also touch upon your capacity expansion plans on the memory testers as well? Thank you. [Non-English content] For 5K, it's safe to assume that we're going to blow right through that level at this point in time. Our supply chain people have worked hard enough and have been able to find the capacity for us to be able to deliver at that level. We're on to the next step, which is that 10K level. As far as the memory goes, we also have expansion plans that are highly correlated to what we're doing on the 93K side. There's not as many testers in the memory side as the 93K, but there's similar growth rates. There's lots of programs within the company right now to expand on the memory side. There is additional challenges there because we do more in-house production. There's things that we're looking at within our supply chain on the memory side to allow us to keep the pace with the SoC testers. [Non-English content] Understood. Thank you very much. Congratulations. [Non-English content] [Non-English content] Thank you very much, Shuhei-san. [Non-English content] Next question is from Mr. Shibano of Citigroup Global Markets Japan. [Non-English content] I have a question regarding margin. On the first quarter you recorded very high margin. When I look at full year projection in remaining nine months, I think you have got a conservative outlook in terms of margin. Second quarter and onward, the second half of this year, I wonder there might be some margin pressure or some product mix, some concerns. Are there any unfavorable factors in terms of margin pressure or product mix? Second issue is actually demand is rather strong. When it comes to next year, I wonder whether the significant increase of top line might be necessary. If that's the case, do you expect also the margin pressure next year, or do you think that sort of thing can be absorbable? Thank you, Shibano-san. This is Doug. On the margin question, I think the company is hitting on all cylinders right now. The product mix was favorable. I think we've had favorable exchange rates as well. As our volumes go higher and we've been able to really deploy our platform strategy, it's really yielding big economies of scale for us as well. The headwinds right now obviously are some inflationary things on our bill of materials. Of course, at the top of the list is memory. The memory pricing is a headwind for us as well as everybody. That's why I think we have to be conservative because we are subject to the pricing environment on the memory, and our testers do use a lot of DRAM. That's the biggest reason, I think, that we're still not ready to project a consistent level of margins like we have this quarter for the rest of the year. I think I would just note that we had some reversal of inventory obsolescence that was helpful to our margins in this particular quarter, and that's not something we would necessarily see as a consistent quarter-to-quarter basis. Going into next year, still, I think we're going to be facing some significant pricing pressure on memory, and we are working on certain areas where we can pass some of that along. It's really case by case, application by application, customer by customer. That's a very sensitive topic, but I think there's going to be something we can do there. Hopefully that answers the majority. You had a lot of questions in your question. [Non-English content] [Non-English content] Thank you very much. [Non-English content] Thank you, Masahiro-san. [Non-English content] Next, we would like. [Non-English content] My name is Tetsuya from SBI Securities, and I'd like to ask Doug-san about the recent AI developments. What's going on in the world of AI right now? I think you know a lot because you're related to the leading edge AI situation of the world. I know that your AI testers have geared up really another notch. I bet you're up to speed. What's going on there? Why is AI testers becoming so busy? Is it because of the agentic AI? Is it physical AI, or is it the AGI coming from Stargate, or I mean, there's various trends, but what really do you think is driving this big trend of AI? Yeah. Thank you, Tetsuya-san. I see mostly the agentic AI right now driving a significant structural change in the business. I know that we as a company are deploying the use of agents in a lot of what we're doing for our development, and on behalf of our customers. As I talk with other executives in the industry, they're doing the same thing. The level of efficiency gains that our companies are getting through the use of agentic AI is really staggering. I think a lot of people on the outside of businesses and companies don't always realize what's going on in the back offices and the development and R&D areas of the companies. That's where the big bang for the buck is happening, I would say, is the use of the agentic level, where it can call upon all kinds of different software tools and on its own, in a headless fashion, develop solutions. For me, that's what's really happening. I don't think that we're at the physical AI yet. It's coming, but I think there's going to be a wave of physical AI applications at the edge that are coming. We're seeing some of those, but I still believe that has got a little bit of time before it becomes mainstream. When it does, the volumes will be extremely high, and will make a lot of the data center pale in comparison. Really agentic level now and into the future, physical AI. [Non-English content] [Non-English content] Just to follow up on a question of this trend here. Regarding AI, there's just billions and billions of JPY of investment made in this whole area. Do you think these surprising concepts like AGI and ASI will really come true in the future? What do you believe, Doug? Oh, wow. That's really putting me on the spot, Tetsuya-san. Yeah, I think ultimately that's where we will get to, but I tend to think that's out pretty far in time. There's so many use cases just in front of us to utilize AI to do really wonderful things. That's where I personally hope that the world will start focusing on all the beneficial things of AI and not get caught up in a lot of the misuses of it. Advantest has an obligation in the position we're at now to make sure that we're pushing the applications that are doing very, very good things, whether it be medical research or agricultural things or even, I was talking about the fires and the use of drones for putting out fires and seeing what they're going through in Europe right now, even as well as in the U.S. Those are the kind of things I think that the world needs to focus on rather than get caught up in the singularity concepts and things of that nature, because I think those are out there. They're probably going to come eventually, but it might be far after you and I are around. I gave you a philosophical answer to a philosophical question, Tetsuya-san. [Non-English content] [Non-English content] Thank you. [Non-English content] Thank you very much, Mr. Tetsuya. [Non-English content] Next question is from Mr. Yoshida of CLSA Securities. Thank you. Congratulations on the strong results. My question is similar to the prior ones, but I would also like to clarify about SoC testers. I think there is a structural SoC tester demand growth driven by CPUs for inference AI, which is shifting from Intel to fabless designed ones creating additional third-party tester time, taking shares from Intel's in-house testers. You have just answered a kind of vague comment about the impact by device types to the SoC tester time growth. I guess CPU's contribution is the biggest one for the upward revision of this year's time outlook, and this impact will get bigger towards the next year considering the increase in fabless design CPUs going forward. Do you agree with this view? Thank you. [Non-English content] Yeah, this is Sanjeev. I wouldn't discount the size of custom ASIC market. I think what you said is definitely correct, that CPU and server market is growing rapidly, and obviously, we are benefiting from that greatly. I would say that the custom ASIC market and also the networking market, they're also growing at similar paces. Again, repeating my comment, I think we're fortunate that we have dominant position in all of these segments. To some degree, we don't really care, because as Doug mentioned, the configurations, the customers, the systems are very similar to each other. If you really want to divide it up, yes, compute is growing very fast, but let's not discount custom ASIC. I think that market is definitely understated, and it's very large for us. [Non-English content] Let me add, Yu-san. It's Doug. On the CPU side, if it's x86 or Arm based, or if it's fabless, or if it's IDM, we are positioned every single place with our V93000 system. We have full coverage of all of the CPU accounts globally. We feel very good about our position there. The market share swapping that might happen between these companies, again, is not really relevant since we have a de facto standard in the V93000 across the entire CPU industry. [Non-English content] Thank you. Just a quick follow-up. Could you also please share your views on the current outlook of your market share at the SoC and memory tester for this year? If you have next year as well? Thank you so much. [Non-English content] The numbers we share April next year. I can speak at least qualitatively on some trends. On the SoC side, we reported for 2025 that we had 66% share. I think it is safe to assume that we are continuing a trajectory upward on that. We can see a path towards 70%+ on that in the future. Within the HPC market, we are far higher than that level. We see the gap really widening in the SoC market. That is some qualitative looking at the SoC market. On the memory side, it is a busier area. There is more competition in the memory side. There is some areas such as NAND, where we have not been a traditional incumbent. NAND is growing as you may know. There are some transitions with device speeds and bandwidths right now also. There is some insertions that we have not necessarily captured. On the memory side, I would say this year may represent a little bit of a downturn for the company. We see that more than recovering as we go into the next year where our roadmaps are well aligned with devices. We are very confident in the future around our memory market share. You will see a little bit of a dip potentially in memory while we still grow on the SoC side. For us, the SoC market is such a larger market than the memory. When we have growth in the SoC, that is generally an aggregate positive for the company. [Non-English content] [Non-English content], I just want to add one thing on the memory side. I think when we look at our future and the reason we are confident is we are going to be releasing a couple of key products. What's really amazing is that we already have customer commitments for those products. I think those products are really game changers. What's also interesting is that the memory market we expect also to grow significantly next few years as the new fabs come online. Yes, it's absolutely correct that we have some challenges this year due to the transition to new products. I think the feedback from customers is that we are very well positioned for the future. Any share loss that we will have this year, we are very confident that we will recover that loss over the next few years. [Non-English content] Thank you. I'm looking forward. [Non-English content] [Non-English content] Thank you very much, Mr. Yoshida. [Non-English content] The next question is from Mr. Yoshioka from Nomura Securities. [Non-English content] I want to look at this page seven, and ask you to give us more color on the by region SoC testers sales. You did very well in Q1, which were the main drivers. If you can just explain by region as much as you could, but some of my interests would be regarding Taiwan and China. For Taiwan, how about if we take SoC testers alone? Is that also growing as well, pushing the demand? How about China, where they're nationally very much focused on developing their own semiconductors? Is your business to China also growing? I think for our ship to region, the reason that Taiwan is so large is because that's where most of the U.S. fabless SoC business is landing. That's why that has consistently been the largest part of our business. Again, this is where we're shipping to, but the business is really being driven out of U.S. fabless companies. There is some memory in Taiwan as well. We don't necessarily disclose the breakout by region between our SoC and memory. The same goes for China. China is about 19% of our total sales, and that is both SoC and memory. It's pretty consistent with our overall ratio of SoC to memory in China. This past quarter, I think we were 80%-85% SoC, 15% on memory. You can apply that to most of both China as well as overall distribution. Taiwan for sure is majority SoC. [Non-English content] [Non-English content] Thank you very much. It'll be great if you can just give us more color on how you see that 19% China sales proportion will change going forward. Think it will expand? It's been pretty consistent, around 20%. There are new factories being built in China, a lot of them. I think those will likely come online in 2028 timeframe. There is potential for, I guess, into 2028, maybe 2029, where we'll see some expansion of the China businesses associated with that scaling of factories. Until then, I would guess, just estimate that we would stay in that 20% or lower of overall sales. [Non-English content] [Non-English content]。 Great. Thank you. Very clear. [Non-English content] Thank you very much, Mr. Atsushi, for your question. [Non-English content] Next question is from Mr. Hanaya of SMBC Nikko Securities. Go ahead please. [Non-English content] This is Hanaya from SMBC Nikko Securities. I have a question regarding capacity and sales. I would like to understand the concept of those two things. You said in your presentation that you are accelerating the capacity enhancement in your work. I think you always think about the buffer in the capacity when you try to build up the capacity. This time you have revised your outlook drastically. Do you think that includes the buffer as well? I think the demand has been expanding more than your expectations. I wonder, this kind of revision may include the buffer or not include it. Or, if you cannot have buffer, you may, can I say, lose your share, or you may give the opportunity for your peers and competitors. I think your upward revision of sales is rather drastic, and I think you can achieve the projected sales for SoC with buffer or without buffer. What is your outlook? Thank you, Hanaya-san. This is a really good question, the short answer is we always have to have buffer. When we start to impede from the demand side on our buffer, that triggers us to expand further. Right now, what we look at very closely is what are the supply constraints in the semiconductor industry. For accelerators, for example, it's in the advanced packaging area. As the foundries and OSATs add packaging capacity, we then have to expand our capacity, not just on a one-to-one ratio, because we have the test content generation to generation increasing. We can't just scale at a unit volume level. We have to scale at a unit volume plus the additional test content generation to generation. That's how we model our capacity for our testers. Definitely we have to have buffer because what happens is there are unknowns, in particular around test time. Oftentimes our customers don't know what the test times and test insertions are going to look at until they've taped out the device and gone through a characterization cycle. There are a lot of unknowns, and we have to be prepared to be able to supply against those unknowns. We always will build in buffer into our production capacity planning and make sure we stay above that kind of danger zone. We never want to be the critical path for our customers' businesses. [Non-English content] [Non-English content] [Non-English content] Thank you very much. [Non-English content] Thank you very much. We would like to take the last question. [Non-English content] The last question from Ms. Tamura from Morgan Stanley MUFG Research Japan, please. Hi. Thanks for taking my question. I'm curious about the visibility Advantest shares with the customers. Like how long is the demand discussion with the customers extending? It's historically been, I think, six months. How much visibility does Advantest have specifically into 2026 and beyond? What's driving this unprecedented visibility, if that is the case? [Non-English content] Yeah. Hi, Tamura. This is Doug. Historically, we were never given really much more than a six month forecast. Just because of the scale now in the industry, and because of the constraints in advanced packaging or wafer starts, it's much easier for us to see out, I would say about 18 months. We have conversations with our close partners for 18 month visibility so that we can do the planning. Obviously, that helps us because we can scale our capacity plans when we have that kind of a lead time. Six months is not enough for us to trigger supply chain scaling. Again, the short answer is, in a lot of cases now we're seeing 18 months. That's because the industry has realized that they need to give their supply chain that kind of heads up. We learned the hard way in the past that six months can lead to some constraints. We all work together now collectively to try to get at least an 18 month forecast. [Non-English content] Thanks for your answer. Just a quick follow-up from the previous answers. You mentioned that you expect and are accelerating the capacity expansion going forward. You mentioned you're pulling in the 10K unit capacity target by 2028. Shall we assume that there should be some upside to the 10K numbers in 2028, the target numbers? [Non-English content] Yeah. Thank you. I think step by step, you're likely to see us look at the next step beyond 10K. Right now we're focused with pulling that in the near term, but in the midterm, I think it's highly likely that we'll do another step on the capacity expansion. Just to give people an idea, though, around 2020, we were producing maybe 1,000 93Ks. Those were smaller configurations. If you use that configuration for our 10K, it's about the equivalent of 20,000 of the 2020 size. We've done 20x in seven years, eight years. I don't know that there's been that level of expansion for anything in our industry. It's really quite an achievement for us to get to that 10K. We have high confidence that we can take that next step function. It may be 15, it may be higher. We'll try to clarify that in the coming quarters. We're just not ready to do that yet. [Non-English content] That's it for today. Thank you. [Non-English content] Thank you, Ms. Tamura. [Non-English content] Although we have received further questions, we would now like to conclude the session. [Non-English content] Thank you all very much for taking time to join our financial briefing despite your busy schedules today.