Welcome to Nanya Technology's 2024 first-quarter earnings conference call. All lines are in the listen-only mode. The conference will be held only in English for investors around the world. Today's conference will be approximately 60 minutes, and Nanya Technology's president, Dr. Pei-Ing Lee, will summarize our operations in the first quarter of 2024, followed by our guidance for the next quarter and key messages. Then Nanya Technology's Executive Vice President, Dr. Lin-Chin Su, Vice President, Mr. Joseph Wu, and Financial Executive, Mr. Philip Jao, will join us as we open our Q&A session. Today's presentation materials are available for download at Nanya Technology's website at www.nanya.com. And as usual, we would like to remind everyone that today's discussions may contain forward-looking statements that are subject to significant risk and uncertainties, which could cause the actual results to differ materially from those contained in the forward-looking statements. Please refer to the safe harbor notice that appears in our presentation materials. Now, I would like to turn the call over to Nanya Technology's President, Dr. Pei-Ing Lee, for the summary of operations and current quarter guidance. Dr. Lee, please begin. Okay. Welcome to Nanya Technology Q1 2024 Investor Conference. I'm Pei-Ing Lee. The content of this presentation will include Q1 2024 revenue and results, CapEx, investment, market outlook, and conclude with business review and outlook. First, the Q1 2024 revenue and results. The financial results summary is the following: our net sales in Q1 were TWD 9.503 billion versus TWD 8.704 billion in Q4 last year, an improvement of 9.2%. And our gross profit comes to TWD -277 million versus TWD -1.188 billion last quarter, also a significant improvement, with a gross margin of -2.9% versus -13.6% last quarter. Okay. It's an improvement of more than 10%. Operating income was -TWD 2.918 billion versus TWD -4.05 billion in Q4 last year, with the operating margin coming to -30.7% versus -46.5% in Q4 last year. It's also some improvement in operating income. EBITDA TWD 1.156 billion, and non-operating income TWD 1.375 billion, and income tax benefit comes to TWD 335 million. With the net income for Q1 2024 comes to a loss of TWD 1.209 billion at a net margin of -12.7% versus Q4 last year, net income at TWD -2.48 billion, and the net margin at - 28.5%, also seeing some improvement of more than 15% in net margin. Earnings per share comes to a loss of TWD 0.030 per share versus Q4 last year, - 0.8. And book value comes to TWD 54.16 per share. Comes to a little more detail. For quarterly revenue result comparison Q -to -Q, we had revenue improvement of 9.2%. And within the shipment, there's an improvement of low single digit, and ASP improved of high single digit, with exchange rate decreased low single digit. And compared to Q1 last year, year-to-year comparison, revenue is an improvement of 47.9%, and mostly comes from shipment improvement of increasing low 50s, with ASP still marginally lower than first quarter last year. For Q1 2024 versus Q4 2023 result comparison, the net sale TWD 9.503 billion versus TWD 8.704 billion last quarter, and the remark is as described in the last folio. Let me comes to gross profit. Gross profit for Q1 this year TWD -277 million, with a gross margin of - 2.9%. This is some improvement over Q4 last year, mostly due to higher ASP and lower idle costs, and with an improvement of gross loss decreased by TWD 911 million. Operating expense TWD 2.642 billion versus TWD 2.863 billion is decreased TWD 221 million, with a lower R&D expense. Operating income at TWD -2.918 billion, operating margin of - 30.7%, versus TWD -4.05 billion in Q4 last year, with the Q -to -Q improvement of 15.8%. And this is due to operating loss decreased by TWD 1.132 billion. Net income comes to a loss of TWD 1.209 billion versus loss of TWD 2.48 billion in Q4 last year. This is due to net loss decreased by TWD 1.271 billion. Within that, the exchange rate is favorable, is gained of TWD 810 million, with income tax is unfavorable, TWD of 715 million. For operating expenses, our SG&A expenses comes to TWD 583 million, which is in normal range compared to previous quarter. Okay. R&D expense, TWD 2.059 billion, compared to Q-to-Q, slightly down from Q4 last year, but in an overall speaking, it's an average number of R&D expense. For cash flow, beginning balance for Q1 2024, beginning balance is TWD 58.812 billion, and with cash from operating activity, TWD 2.155 billion, and capital expenditure, TWD 2.851 billion, which comes to free cash flow of minus 96. Financial activity for the quarter comes to positive TWD 4.135 billion, and the end balance for the quarter, TWD 62.25 billion. The cash flow roll-up roadmap is shown at the right-hand side, basically very clearly describes that our end balance is slightly improved from Q4 last year. Our net cash equivalent is TWD 49.3 billion, with the cash and equivalent minus the short-term debt, we still have net cash of TWD 49.3 billion. For CapEx, utilization, Q1 our CapEx was TWD 2.9 billion. For this year, we plan to spend up to TWD 26 billion. Within that, will be around 50% for wafer equipment and another 50% mostly for the construction purpose. Utilization, Q1 utilization increased by a low single digit, and we are expecting for the whole year, will be up to 20% improvement, year-over-year, compared to last year. For market outlook, for data market, the price is expected to grow in 2024 as demand for AI server, HBM, and DDR5 increase as a driver, and also supplier accelerating migrating to high-end product, particularly HBM, which may lead to overall output constraint. Market recovery momentum is still subject to geopolitical conflicts and regional economic uncertainty. For supply side, the prioritized production of HBM and TSV product may cause constraint of supply in standard DRAM. Supplier increase CapEx mainly for HBM product. From the demand side, the server market, the overall shipment is expected to increase as AI and high-end server drive demand for DDR5 and high-density products. For mobile market, smartphone sales recover in China, and shares of high-end model also increase. PC market, the AI PC launch may contribute to DRAM shipment and content growth. For consumer, demands for IP camera, TV, industrial, and automotive remain stable. Business review and outlook. For Nanya business, Nanya Q1 2024 still have net loss of TWD 1.209 billion with EPS of TWD -0.39 per share. The DRAM market are re-expected to recover continuously in 2024. Nanya's second-generation 10-nanometer class of 1B products, including 8-Gb DDR4, 16-Gb DDR5, is to enter mass production in second half this year. For ESG activity, for last quarter, Nanya was selected in a CDP A List, both in climate change and water security. Nanya also selected as Top 100 Innovator by Clarivate. Nanya also received National Quality Management Award by Ministry of Economic Affairs, Taiwan. With that, conclude my presentation, and we may move into question and answer. Thank you. Yes. Thank you, Dr. Lee. Ladies and gentlemen, before we begin the Q&A session, I would like to remind everyone to limit your questions to two at a time to allow all participants an opportunity to ask questions. We'll begin taking questions from dial-ins first. For webcast participants, please message your questions with your name and company name to Nanya operator in the chat box. And now, for dial-in participants, please press star key and one on your keypad if you would like to ask questions. To cancel your questions, please press star key and two. Our first question is coming from Hans Liu from UBS. The line is open to you now. Yeah. Thank you. Hi, Dr. Lee and Joseph. Thanks for taking my questions. My first question is regarding your current technology mix. Could you remind us how much it was in first quarter and the trend in second quarter between DDR3 and also DDR4? And also, if possible, could you share with us your view on the pricing trend for DDR3 and DDR4 with more and more capacity moving to DDR5 and HBM production? Thank you. Our market sector is still around 65%-70% in the consumer market, and with the low power, around 10%-15%, and remaining mostly balanced by commodity and server. And for the pricing question you asked, we are seeing in general the overall market, from pricing point of view, is improving. And of course, the high-end product may improve more than general standard DRAM. That's including DDR3 and DDR4. And also, each of the product, from a pricing point of view, is different from different density also. Okay. So for instance, DDR3, you have 1 Gb, 2 Gb, 4 Gb. Okay. Each of your product momentum is different by its own demand and supply. So is the DDR4, the 4 Gb and 8 Gb DDR4 and 16 Gb DDR4. Okay. And as the DDR5 migration, most capacity-wise, a lot of production capacity may be moving to HBM and DDR5. And as a result, the outputs for DDR4 and DDR3 are likely to be more constrained and more in a inventory digestion situation. So that help adjusting market balance. So as a result, we're seeing in general the market ASP trend is trending up. Okay. Yeah. So that's consistent with our current market observation, but I was just wondering if the legacy DDR3 and also DDR4 DRAM pricing upward trend would be more visible in the upcoming quarters, because it has been lagging DDR5 and also HBM price uplift trend in the past, in the past few months. Thank you. Yeah. Likely the Q2 will have some improvement for the DDR3 and DDR4 as well. Okay. Many of those reasons are due to the customer purchasing terms. Some is in the quarterly term, some in monthly term. And for the uptrend, the quarterly term normally is behind in the pricing improvement, because the price was negotiated maybe five months ago, okay, or four months ago. That is therefore, in the uptrend, the long-term contract will have a little bit lagging in terms of their pricing improvement. Okay. So can we put it this way that you think DDR3 and also DDR4 because of the time difference, that it can potentially outgrow the overall DRAM market price in second quarter? Is that the right assumption? I would, I would say that assumption is a little bit too, too, too, too fast. Okay. The overall pricing trend also depends on the market demand, as well as the inventory situation from each of the supplier. Okay. As a result, as I described, each of the supplier and each of the density also product is different behavior. Okay. Even within DDR3, it may have different behavior from different density. Okay. So I would say, it's not a general term that all the consumer product will perform better than overall and average. Okay. Now, also, HBM has a pretty high premium in DDR5. Okay. So to outpace the DDR5 and HBM in terms of pricing, I think it's unlikely. Okay. So overall, it's a balance if comes to about equivalent situation, will be a very wonderful situation already. Okay. Yeah. It was very helpful that you provide the mix-by application for your business. But if we can have more detailed color on the technology mix as well between DDR3 and also DDR4. Thank you. DDR3 and DDR4 right now is about. We also have low-power business. Okay. And low power takes about 15%. And the rates of 80%-85% and is balanced between DDR, LPDDR3 and DDR4. And also, this could be changed from month by month. Okay. Thank you. That is very helpful. And my second question would be your expectation on the CapEx compared with last quarter. You raised your CapEx. Should we expect the incremental CapEx will lead to higher depreciation on the equipment, or these equipment will not be depreciated until it starts production? Also, if possible, could you remind us your goal for operating break-even? Thank you. So you have two more questions. One is the depreciation. Okay. And the other one is potential break-even. Okay. The depreciation situation for Nanya now is, currently, for the next few years, we're seeing the depreciation number will be coming down. Okay. Now is probably coming to the high point. Okay. And we are expecting, by the end of next year, we have a substantial depreciation improvement. And that will continue until 2027, 2028, until the next round of, if we add in more new equipment in the new fab, which is still under construction. So namely, currently, the depreciation situation monthly or quarterly probably is already in a high point. Okay. And as we speak, it will continue to come down gradually. And the break-even point, this will be very much subject to the ASP situation in second quarter. And this is yet to be seen. Okay. This all depends on the market situation. Okay. There are some momentum building up. Okay. Also, second quarter, few factors we have to keep in mind. One factor is first quarter, we have pretty much pretty good help from exchange rate change. And also, last quarter, we had less idle cost. Okay. And however, this quarter, we will have even more improvement in idle cost, but that's an improvement as marginal. Exchange rate, though, we don't know what is the trend going to be. On top of that is that on April 3rd, there are major earthquake in Taiwan. Okay. Even though we already resume production, okay, however, there are some damage to the equipment and wafer, and those costs and expense has to be taken into account in Q2. Even though that is a controllable amount number, but still is adding expense to Q2. Fortunately, the ASP pricing may be in uptrend a little more. Okay. So that may be balanced out, hopefully. Okay. So in terms of break-even point, we are looking for maybe somewhere in the Q3, beginning of Q3. Okay. Thank you. If I can squeeze one more question before I go back in the queue, what is your current utilization and for first quarter, if you could provide some more detail? Thank you. Well, utilization is almost back to normal except the earthquake interruption. Now we resume normal. Okay. Thank you. It is very helpful. I'll be back in the queue. Thank you. Next up, we have Jay Kwon from JPMorgan. Line is open to you now. Thank you, Dr. Lee. Hope Nanya team and all of the families well from the last week on present earthquake. I'd like to first ask a bit more details about the operational impact from earthquake part. If there's any, how are you managing it? And also, can you characterize the price negotiation, after the earthquake? I think you mentioned that the pricing trend is moving up a little bit better. So are you actually seeing some changes in the customer sentiment? That's my first question. Thank you. On the April 3rd earthquake, 7.2 Richter scale, in our fab, we also have the measurement, locally in our within our fab. We measured the highest scale we ever experienced since we construct the fab. Okay. So with that magnitude of earthquake, likely, most of semiconductor fab, if not all, will have some degree of damage in the equipment as well as in their wafer in production. Okay. And yes, the earthquake did interrupt us from April 3rd, okay, for a few days. We have resumed normal production for two to three days already. So in general, that interruption is a little bit more than five days. Okay. And as I said, the damage is controllable. Okay. And as of the ASP trend, we still need to wait a few more days for the market settlement. We still don't have a very detailed trend yet. Okay. But as we know, most of the suppliers are expecting some sort of higher ASP improvement as they still have some margin profit margin issue currently. Thank you. Then just to follow up, if you mentioned that there are a couple of days of the impact. So if it impacts, then do you actually expect your FY, since you mentioned your full-year bit shipment is still above the 20%, and you started first quarter with a low single-digit increase, so is there any possibility that the Q2 may not see a big increase and most of the shipment increase will be more back-loaded into the Q3 and Q4? Potential is that may be happening. Okay. And overall speaking, the AI trigger, the cloud computation, all those is helping out. Okay. The demand for the mobile, PC, as well as the consumer, in general speaking, in Q2, may be in the normal range, not as you expected, as you just described that, maybe more toward second half this year. Okay. Thank you. My second and next last question is, last call, I remember you were implying that the DDR5 first wafer taping will begin some point in late Q3 to early Q4, so it could become some part of your production in Q4. So I think that's implying R&D sample submit in second quarter, qualification in Q3. So am I understanding your plan correctly? Are you keep still keeping this plan, or are there any roadblocks to the DDR5 ramp that you're planning by the year-end? And also, if you could share any of your DDR5 probably bid or shipment mix by end of the year, that would be really great. Thank you. Okay, Jay. The DDR5 is our schedule as planned. Okay. There's no major change. Okay. From the bid demand point of view, as you indicated that, we need to have some sampling, customer qualification, and then beginning of a shipment. So the shipment likely toward the end of this year. So, yes, we are expecting some shipment, the end of this year. Okay. And that's, target, that working target, still in our mind, and we're keeping working hard to make that happen. Hello, Jay. Are you still with us? Oh, yes. Hello, Jay. Y es, my question is over, and, I'll be back to the queue. Thank you. Thank you. Our next question is coming from Anthony Lau from Yuanta. The line is open to you now. Hi, Dr. Lee and the management team. Thanks for taking my question. And, and I have, four questions. So my first question is, what is our, like, current sales share from China? Do we see any recovery from, like, China clients recently? Our sale to China is, in general, 20%±. Okay. Sometime 15%, sometime 20%, a little bit more than 20%. Okay. So that's, so far, that's normal. And we don't see any major issue in short term. Okay. Okay. Anthony, second question? Okay. So also, can you elaborate on our, like, non-China customers' condition? And also, I want to ask that our, like, our 1A or, like, 1B products, like, for, like, for the DDR4 or DDR5, is mainly targeted to, like, non-China customers or maybe also still have some China clients will adopt our DDR5 products? Our customer, in general, that in China, now is not from our observation, still in, largely influenced by regional economic situation. So their momentum still need to be watched closely. Okay. For our 1B DDR5, our customer, in general, we are not limited to regional customer for our product except those product is some sort of shipment restriction. Okay. So we will welcome the DDR5 customer everywhere in the world, except those as shipment restriction. I see. I see. So talking about the 1A or 1B process node, like, currently, that proportion in our bit shipments have attained about, like, 5% or 10%. And when we maybe arrive to maybe end of this year, like, do you think 1A and 1B process node, maybe, like, mainly 1B will attain over 10% still in the end of this year? Do you think this number will attain? We already stopped production in 1A. Okay. So now is only residual shipment on 1A. Okay. Very small number of 1A shipment. 1B, we are as I answered the question in the last few questions, is that we target for 1B shipment, okay, toward the end of this year. Okay. Also, we are target monthly, if within the month that we can target for 10%, that will be a good target for us to look for. Okay. So that's still under our scope, our team is working hard for 1B shipment of up to 10% monthly by the end of this year. Okay. And that's our working goal, our target. Okay. That depends on our qualification schedule in the customer side also. Customer need to verify and qualify our product. I see. Okay. So back to maybe second quarter outlook, do we, like, I remember that, like, previous analysts talking about, maybe the consumer market or, like, the PC mobile market is stable or just mildly recovered. So do you think the QOQ, like, the sequential increase of the price hike or shipments in, I mean, in second quarter will be higher or lower than, like, first quarter of this year level? I think each company may behave differently. Each supplier may have different result. But talking about Nanya specifically, our first quarter, the ASP improvement, high single digit. Okay. We are expecting our second quarter, slightly better than Q1. Okay. And again, that's our working target. And as I described to you that we had also longer-term customer, like, quarterly or yearly customer. Okay. And also monthly customer. Those were different, one by one. Okay. For the, we are expecting that Q2 will be improved in Q1, particularly for those quarterly customer. Okay. Because they enjoy Q1 pricing is relatively low because Q1 pricing was negotiated Q4 last year, some even beginning of Q4 last year. Okay. And therefore, they enjoy pretty lower pricing compared to market average. So as I described to gentlemen that when the market is uptrend, typically the long-term customer has less price increasing. Okay. And the short-term customer have more price increasing. However, vice versa, on downtrend will be different. This is very, very clear. Maybe, let me ask, my final question is, so we just elaborate about our like mixed by different products, like 15% from low-power like DDR and 80%-85% of DDR3 and DDR4. Do we see any, like, new, low-power DDR clients, like, maybe from, from, like, DDR, like, LPDDR4 or maybe 3? Do we see any new clients from maybe mobile, mobile vendors, like, maybe in China or other places? Yeah. We are expecting our low-power and mobile business to improve gradually quarter by quarter too. And our low-power product portfolio, including low-power DDR4, low-power DDR4X, and low-power DDR3, low-power DDR2. Okay. And also at different density. That's including from 1 Gb, 2 Gb, 4 Gb, 8 Gb to 16 Gb, even 32 Gb low-power DDR2. Also include, we shipping MCP and eMCP together with NAND Flash. Okay. So, we are expecting to improve those business in the consumer side as well. But we may differentiate that in a low-power by our product portfolio. I see. Thanks a lot, Dr. Lee, and I will back to the queue. Thank you. Ladies and gentlemen, we are now in Q&A session. For dial-in participants, if you would like to ask questions, please press star key and number one on your keypad. Thank you. If you would like to ask questions, please press star key and number one on your keypad. Thank you. Next, we have Simon Woo from Bank of America. Please go ahead. Okay. Yeah. Thank you, Dr. Lee. So glad to hear all safe for now. Thank you. Number one question is, would you recap the, maybe you said the normal utilization ratio, but, what's the, what do you mean the normal? Is 90% out of a total capacity of, what, 65K or 70K? So would you update the current, the wafer capacity and then the, the percentage of the wafer input versus capacity for maybe Q1, Q2? Then I remember your previous comment, the utilization ratio was around 80%. So, would you say currently maybe 90% versus last year 80%? And then I will ask the follow-up question. Thank you. Okay. Normal utilization means that we don't intentionally shut down our production to adjust our output. Okay. So in general speaking, that's the situation we are in now. Okay. And our capacity-wise is, from output point of view, it's around 57,500-58K per month or so. Or depends on month by month or depends on 29 days or 31 days month. Sorry. So it's not even 60K? You are saying high 50K? Output, output-wise. Output-wise. Yeah. How about the overall, the gross capacity? I think it should be 60K. Gross, gross around 60K. Yeah. 6-0. Yeah. 60. Yes. Then last year when the industry was very tough between the Q2, Q3, at the time, I do remember your utilization ratio was around 80%, 80% versus. Yeah. Yeah. When we intentionally doing adjustment on our inventory, everything, our utilization came down to at time 80%. Yeah. Plus minus. Yeah. Yeah. And so to achieve maybe low 20% bit growth this year, how are you gonna achieve this? Maybe you gonna fully utilize your capacity, and then you wanna sell the all the inventories. And then what could be the normal production gross rate? Like 10% or 5%? So I wanna calculate how you derive 20% target bit growth. Thank you, sir. The 20% bit growth could be achieved nicely. Okay. First of all, we don't have any utilization reduction. Okay. So we're back to normal production. Okay. So our, our output likely will be slightly more. And also on top of that, we have some inventory can balance on that. Okay. All right. So then, then after the maybe 2024 then, what could be the normal your production gross rate? You are adding the 1B node capacity, etc. So what could be the normal? For me, DRAM makers can do only maybe 10%-15% production because even your competitors use EUV2, etc. How do you assess Nanya's, you know, overall, the long-term trend of the DRAM production volume growth? 10%, 15%, or a single digit? Our new generation of the 1B generation production, likely the output is toward the second half or the end of the year as I described. So this year's bit growth impact by the new generation of the production, okay, is not going to be very big. Okay. It's going to be minor. Okay. And maybe some impact will be next year. Okay. And likely next year, our output capacity, output capability, could improve by more than 10%. Yeah. Yeah. So you said 1A 10nm node stopped, and then the. Yes. Second. Yes. New technology means 1B. And then obviously, 1C node will come, right, sometime next year. Yes. The plan. Yeah. Yeah. Will Will be piloting sometime next year for 1C. And 1B is will be moving into mass production second half this year. Okay. Yeah. And I explained to you, Simon, that what do we mean by 1A, 1B, 1C is that for each generation, we expect around 30% more output bit growth. Okay. 1A, we expect 30% more output than 20 nanometer, and 1B, 30% more than 1A, etc. And that's general target that we are expecting for. Yeah. Definitely. Sorry. Maybe very quickly, sir. So would you update your, you know, after the groundbreaking for the, you know, $10 billion worth the, the target CapEx spend for the new fab construction? So it, it, it's still under the construction or relatively stopped? Yes. Yes. The construction. The construction is, is normal. Okay. Yeah. We, we continue to construction without any interruption except natural interruption. Like, something have to be slowed down by big, huge rain or something had to be slowed down by earthquake. Except natural reason, we don't intentionally interrupt our construction. So wafer input will start late 2026 then for the new fab? Yep. Potentially, the fab will be ready for production 2026. Yes. 2026. So late 2026. Yes. 2026, sir. Yeah. Yeah. Okay. So lastly, sorry, you already mentioned that the, maybe, 15% total DRAM revenue, right, is the low power, meanwhile 85% DDR3 and DDR4. But so your low power DRAM was, either DDR3 or DDR4, but right? So overall, your revenue is still maybe 50% DDR3, another 50% DDR4, right, overall? For low power, you need completely different product. It's the low power DDR3 is different from DDR3. Okay. From product point of view, you need to have completely new concept of designing the chip. So they're completely new mask set. Okay. And you cannot say in the production, right in between, you change from low power to regular DRAM. No. You have to start from very beginning point. Okay. So it is basically different product. Okay. Mm-hmm. So low power means a smartphone and then partially the mobile smartphone. Any notebook. Yeah. Any mobile application or low power consumption application. Yeah. But the auto no need the low power, right, these days? Auto, automotive. Automotive. There are some area automotive use low power as well. Okay. Now for instance, low power DDR4, low power DDR5 also using, automotive as well. Yeah. So overall, your business is still, consumer, right? Let's exclude industrial auto. So consumer electronics around 60% or 50%? What's the mix? Consumer in general, we took, we, 65%±. Yes. And that's. Yeah. And. And. That's including, Simon, that's including many different, area. Okay. Anything other than server, other than PC, other than mobile, we call it all everything consumer. Okay. So, so that's different. Consumer could be different term for one company to the other company. Okay. In general, that's how we define it. For us. So 65% 65% for consumer includes the auto, right? Auto and industry. Yes. Yes. Including automotive, including industrial, including TV, including IP camera box. Okay. Networking and, even with many different applications at home, or, personal use. Okay. Watch, everything. Okay. So I think these areas are not showing any great, you know, meaningful recovery. Only we do see the some high-end DDR5 HBM demand growing. So I wonder. I hear your point. The competitors focusing on HBM or DDR5, then the, supply of the DDR3, DDR4 will be tight. That's why you think maybe second quarter price momentum better than Q1 level. But the demand, I don't see any meaningful recovery in these, consumer areas. How do you see the demand? You said stable, but I'm feeling weak. What do you think, sir? I think, I also commented on this point several times before, is that consumer market because we define it as, in general, anything other than cloud computing, other than PC and mobile. So it's very, very many different applications. So usually, there are some area may not be as good seasonally, and there will be some area encouraging. Okay. So in general, you may see some up, some down. And those up may come down again. Those down may go up again. Okay. So in balance speaking, consumer we're seeing is a relatively stable situation for Nanya. Okay. And of course, it's you are right. It's not exciting. Okay. But it's not also very, very, very bad situation. For instance, industrial pretty good now. For instance, you know, now the cloud computation is very heavy, right? So the cloud computation needs, HBM, needs DDR5, but they also need SSD. And SSD need special type of DRAM to go with it. Okay. So SSD actually doing pretty good business as well. So there are some good time, some bad time, and overall speaking, it's a stable time. Yeah. Very clear point, sir. So then that second quarter, your price increase could be higher than high single digit that proved in Q1, right? Higher. We are expecting Q2 to be improved from Q1 in ASP. And we're looking for double digit in Q2. But again, that's not a guarantee. Okay. That's based on current assessment of the market situation. Okay. And the customer demand. Yeah. Yeah. Very clear. So double digit price increase possible in Q2 versus only single digit Q1. That's the maybe second quarter pricing moment. Yeah. Yes. Okay. Very, very clear, Dr. Lee. And then thank you very much. Hopefully, all are safe. Thank you, sir. Thank you, Simon. Ladies and gentlemen, we thank you for your questions. Now, we are going to move on to the webcast Q&A session. Dr. Lee, please proceed. Okay. We're seeing the first question from SinoPac, Stanley. The question is, the reason for CapEx budget increase from TWD 20 billion-TWD 26 billion. Actually, we are not increasing in big way in terms of our CapEx. Okay. And there are some scheduling shipping last year that we planned it for higher budget, but we didn't spend it. So some of the equipment expense now moving to this year. Last year expense moving to this year. That's one reason. And the other reason is that also price increasing as well. Okay. In terms of not just construction, but also the equipment side is slightly increasing in pricing as well. The next question is from Vincent, President Capital. Q2 shipment guidance. Q2 shipment, currently, we are targeted for flat to Q1. We're seeing some improvement in Q1 in shipment. Okay. We expecting flat to slightly improve in Q2, okay, shipment. And we are targeted for more shipment improvement towards second half of this year. That's a seasonality expectation. Okay. So that's the end of the question from the line. That's all for today's question. Thank you. Yes. Thank you, Dr. Lee. Ladies and gentlemen, that concludes our conference call today. Please be advised that the replay of the conference will be accessible within three hours from now, which will be available through Nanya Technology's website at www.nanya.com. We hope you will join us again next quarter. Thank you for your participation, and have a wonderful day. Thank you. You may disconnect your line now. Thank you.