Welcome to the MediaTek 2025 2nd Quarter Investors Conference call. Financial results and presentations for today's call are available on the Investors section of the company website at www.mediatek.com. Now, I would like to turn the call over to Ms. Jessie Wang, Deputy Director of Investor Relations. Ms. Wang, please go ahead. Good afternoon, everyone. Joining us today are Dr. Rick Tsai, MediaTek CEO, and Mr. David Ku, MediaTek CFO. Mr. Ku will report our 2nd quarter results, and then Dr. Tsai will provide our prepared remarks. After that, we will open for Q&A. As a reminder, today's presentation will provide forward-looking statements based on our current expectations. The statements are subject to various risks and factors, which may cause actual results to differ materially from the statements. The presentation materials supplement non-TFRS financial measures. Earnings distribution will be made in accordance with financial statements based on TFRS. For details, please refer to the Safe Harbor statement in our presentation slides. In addition, all contents provided in this teleconference are for your reference only, not intended for investment advice. Neither MediaTek nor any of the independent providers is responsible for any actions taken in reliance on contents provided in today's call. Now, I would like to turn the call to our CFO, Mr. David Ku, for the 2nd quarter financial results. Thank you. Good afternoon. Now, let's start with the 2025 2nd quarter financial results. Please note that the currency used here is NT dollars. The foreign exchange rate applied to the 2nd quarter result was TWD 30.9 for $1, which implies around 6.1% appreciation of NT dollar compared to the foreign exchange rate of TWD 32.9 in the 1st quarter. Due to the rather sizable FX movement, here we provide some more information. Basically, for every 1% appreciation for NT dollars, we will have a negative impact for gross margin by around 0.2 percentage points and also around 0.25 percentage points to the operating margin. With that, revenue for the 2nd quarter was TWD 150.4 billion, down 1.9% sequentially and up 18.1% year- over- year. If we exclude the FX factor, in U.S. dollar terms, 2nd quarter revenue was up 4.4% sequentially and up 23.8% year- over- year. Gross margin for the quarter was 49.1%, up 1 percentage point from the previous quarter and up 0.3 percentage points from the year-ago quarter. This quarter's gross margin includes a one-time related to a previous LTA, which contributed around 1.9 percentage points to the gross margin. Excluding this one-time item and assuming the FX rate back to our earlier guidance level of TWD 32.5, our 2nd quarter gross margin would have been 48.4% at the high end of our earlier guidance range. Operating expense for the quarter was TWD 44.5 billion, compared with TWD 43.8 billion in the previous quarter and TWD 37.2 billion in the year-ago quarter. Operating income for the quarter was TWD 29.4 billion, down 2.2% sequentially and up 17.7% year- over- year. Non-TFRS operating income for the quarter was TWD 30 billion. Operating margin for the quarter was 19.5%, down 0.1 percentage points in the previous quarter and down 0.1 percentage points year- over- year. Non-TFRS operating margin for the quarter was 19.9%. Net income for the quarter was TWD 28.1 billion, down 5% sequentially and up 8.1% year- over- year. Non-TFRS net income for the quarter was TWD 28.6 billion. Net profit margin for the quarter was 18.7%, down 0.6 percentage points from the previous quarter and down 1.7 percentage points year- over- year. Non-TFRS net profit margin for the quarter was 19%. EPS for the quarter was TWD 17.5, down from TWD 18.43 in the previous quarter and up from TWD 16.19 in the year-ago quarter. Non-TFRS EPS for the quarter was TWD 17.81. A reconciliation table for our TFRS and non-TFRS financial measure is attached in our press release for your information, and that concludes my comments. Thank you. Thank you, David. Now, I would like to turn the call to CEO Dr. Rick Tsai for prepared remarks. Good afternoon, everyone. MediaTek's 2nd quarter revenue grew 4.4% sequentially and 23.8% year- over- year in U.S. dollars. We attribute this largely to the strong business foundation we have built in the past few years. In the second quarter, we continue to see higher structured demand for edge AI SoCs and faster connectivity. To a lesser extent, we also noticed some pooling demand amid trade uncertainties. We are on track with our mid to long-term growth journey. Our diverse existing businesses and growth initiatives underpin a robust foundation for MediaTek. In 2025, several businesses are demonstrating strong growth momentum, including flagship smartphones, connectivity portfolios, and computing devices. While we anticipate revenues from our major growth initiatives, such as data center ASIC projects, to start ramping next year. Our mobile phone business performs solidly with continuous expansion into the flagship segment. We expect the flagship smartphone revenue to reach $3 billion this year, representing an annual growth rate of more than 40%. Our leading connectivity portfolio, such as Wi-Fi 7, 5G modem, and 10G PON, continues to gain shares in global telecom operators and leading consumer electronics players. We expect our connectivity business to grow strongly, with revenue exceeding $3 billion this year. Furthermore, revenue from our computing solutions, which currently include tablets, Chromebooks, and the GB10 project that we collaborate with NVIDIA, is expected to grow more than 80% this year to approximately $1 billion, driven by strong AI demand. Moreover, we are fully focused on executing and expanding our growth initiatives, such as enterprise ASICs and automotive businesses, each representing more than $40 billion revenue TAM in the mid to long term. The business momentum for our enterprise ASICs is very strong, as CSPs continue to evaluate and adopt ASICs to enhance data center efficiency. To capture the increasing opportunities, we are rapidly expanding our R&D resources for the ASIC team, especially for recruiting key talents. These resources are being deployed mainly to advanced nodes, advanced packaging technologies, and next-generation IPs, such as 400G, 48G service, and CPO. Backed by our robust service IP portfolio and strong execution capability, we currently have multiple engagements with global CSPs for data center ASIC. We believe in our ability to add value to this fast-growing market. We continue to expect sizable revenues starting next year. For automotive, we have been making very good progress in securing design wins for our Dimensity Auto high-end and mainstream cockpit and telematics solutions. The more advanced cockpit solution, CX-1, which we co-developed with NVIDIA to support premium vehicles, will be sampling to customers soon in the second half of the year. We expect revenue from CX-1 to start in 2026, adding momentum to our automotive business, which has already been growing robustly. Furthermore, to support our strong roadmap for enhancing advanced AI functions and overall performance, we are aggressively investing in two-nanometer advanced process for both of our edge AI and cloud AI products. Our first two-nanometer tape-out is scheduled for September of this year, positioning us to be among the leading group launching two-nanometer chips. These exciting developments reinforce our confidence in capturing growth opportunities in the mid to long term. With that, now let me talk about the recent business performance for our three revenue groups. Mobile phones accounted for 52% of total 2nd quarter revenue and grew 13% year- over- year and declined 9% quarter- over- quarter. In U.S. dollars, this revenue group grew 19% year- over- year and declined 3% sequentially. As I said earlier, our share gains in the flagship segment continue to drive year-over-year business growth, mainly thanks to the successful Dimensity 9400 family. Since the introduction of the Dimensity 9400 last year, we have enabled numerous popular flagship AI smartphones from OPPO, Vivo, and Redmi to gain share in the market. To extend the momentum, we will soon be launching the next-generation flagship SoC, Dimensity 9500, in the 3rd quarter. Dimensity 9500 will deliver even more enhanced AI functions with more powerful computing capabilities. We have secured more customers and model adoptions than the previous generation. For the 3rd quarter, we expect flagship revenue to grow as Dimensity 9500 enters mass production, while demand for the mainstream segment is expected to slow down amid global economic uncertainties. Now, let me move on to smart edge platforms. In the 2nd quarter of 2025, this group grew 26% year- over- year and grew 7% sequentially, accounting for 43% of revenue. In U.S. dollar terms, this revenue group grew 32% year- over- year and 14% quarter- over- quarter. The sequential growth was mainly from the continuous ramp of AI-capable. Computing devices. Share gain in consumer ASICs and some pooling demand. AI-capable computing devices have been well received in the market and fueled our business momentum. We are glad to see all the major Android tablet brands, including Samsung, adopting MediaTek AI chips for their premium AI tablets this year. Lenovo also announced a premium AI Chromebook powered by MediaTek's three-nanometer Companion Ultra SoC in the 2nd quarter. Moreover, GB10, the chip we co-developed with NVIDIA to power NVIDIA's AI supercomputer, DGX Spark, is scheduled to begin mass production in the 3rd quarter. For the 3rd quarter, this group continued to benefit from share gains in 5G modem, premium AI tablets, and automotive with year-over-year growth. However, as some demand has been pulled to the first half of the year, we expect smart edge platforms' revenue to decrease quarter- over- quarter. Now, moving on to Power IC, which accounted for 6% of total revenue in the second quarter and grew 11% year- over- year and grew 17% quarter- over- quarter. In U.S. dollar terms, this revenue group grew 16% from the same period last year and 24% sequentially. In the 2nd quarter, Power IC benefited from share gains and better demand. We expect Power IC revenue to decline sequentially in the 3rd quarter on lower consumer electronics demand. Moving into the 3rd quarter of 2025, we are excited at the ramp of Dimensity 9500 and GB10. We also expect the growth momentum from AI tablets and automotives to continue in the 3rd quarter. However, as some demand has been pulled into the first half of the year and resulted in a different quarterly pattern, we expect the 3rd quarter revenue to decline sequentially. With that, we expect our 3rd quarter revenue to be in the range of TWD 130.1 billion-TWD 140 billion, down 7%-13% sequentially, and down 1% to up 6% year- over- year. At a forecasted exchange rate of TWD 29.1 to $1 USD, compared with the exchange rate of TWD 30.90 to $1 USD in the 2nd quarter. The impact from the potential exchange rate difference on our 3rd quarter NT dollar revenue outlook is approximately 6%. As nearly all of our revenue is in U.S. dollar, we also provide our 3rd quarter revenue guidance in U.S. dollar to fairly reflect the business situation. In U.S. dollar terms, our 3rd quarter revenue will be in the range of $4.49 billion-$4.83 billion, down 1%-8% sequentially, and up 10%-18% year- over- year. Gross margin for the 3rd quarter is forecasted at 47%, plus or minus 1.5 percentage points. Quarterly operating expense ratio to be at 31%, plus or minus 2 percentage points. Finally, I would like to reiterate our strong commitment in investing in growth areas such as AI, data center, and automotive, which are still at their initial phases of market development. We believe their growth potentials are strong enough to help us weather short-term volatilities. We remain confident in our technologies and our capability to grow in the midterm to long term. This concludes my prepared remarks. Thank you. Thank you, Rick. Operators are now ready for Q&A session. May we please have the first question? Yes. Ladies and gentlemen, we are now in question and answer session. If you would like to ask a question, please press star one on your telephone keypad. Please ask your questions after your name is announced. Please limit your questions to two at a time to allow more participants to join the discussion. After two questions, we will move to the next caller. Should you have more questions, please press star one to come back to the queue. To cancel your question, please press star two. Thank you. As a reminder, it is greatly appreciated that you turn off speakerphone mode of your device to prevent possible echo effect. We thank you for your cooperation. Our first question is coming from Sunny Lin, UBS. Go ahead, please. Thank you very much. Good afternoon. My first question is on ASIC side. Could you share with us a bit more color on your progress to run more projects in the coming few years? You talk about good revenue contribution for 2026 and the update on the revenue opportunity versus your prior guidance of $1 billion. Beyond that, maybe more importantly, is there an inflection point when we should expect maybe more meaningful uplift as you start to run more projects? Thank you very much. Okay. On ASIC side, we remain confident that we will do our revenue forecast for late next year. We believe our customer is doing well in their taking out progress. In addition, we are also engaging with various potential CSP customers for various applications. We feel good about our opportunities in moving forward. We look forward to, as I said a couple of times in the prepared remarks, we expect strong growth from the data center ASIC business in the coming years. Thank you. Sorry, just a very quick follow-up. Since most investors are quite paying attention to the $1 billion target for 2026, so now maybe given some hiccup on the tape-out in the short term, should we assume maybe a bit lower contribution for 2026, but then going to 2027, you should certainly scale to a much higher number for 2027? As I said, I just said now, we remain confident that we will do our revenue forecast for late 2026. We believe our 2027 number will be good, but I do not know how to compare to what you have in your forecast. 2027 will definitely bring quite a bit of growth from the ASIC business. Thank you. Got it. No problem. Thank you very much. My second question is on your process development. I'm pretty glad to see that MediaTek is being pretty fast in two-nanometer process migration, maybe starting from flagship smartphone SoCs, basically in the same product generation as iOS. I wonder what's giving you the confidence for such quick process migration. Could you share with us maybe the key benefits for the two-nanometer process migration? Is it more on the performance or more on the power efficiency? Maybe just say something about two-nanometer first, where both performance and power efficiency will improve quite a bit, especially in the power efficiency part. It's critical for, for instance, the flagship SoC business and the market requirements. It's critical. Not to mention, of course, with the data center ASIC business coming up. People are just moving as fast as they can into the advanced process nodes. Now, why MediaTek is now moving into two-nanometer process node at almost the same pace as the other major world-class tier one companies. I have all the sense for our technical people, managers, engineers, together with really close collaboration with our foundry partner, TSMC. I cannot say enough to thank them. After several years, really hard and intelligent work from our people and TSMC, this is where we are. We expect nothing less in the forthcoming nodes. We certainly will continue to invest and will reap the benefits from next-generation process node also. Thank you. Got it. Thank you very much. Thank you. Next one, Laura Chen, Citi, go ahead, please. Thank you. Thank you for taking my question. Good afternoon. My question is also about the AI and obviously quite positive on the growth in the longer term. May I just also follow up? When we see that 2027, you will see quite strong growth for the AI accelerator growth. It's mainly from the one single specific CSP, or do we see more than just one AI ASIC contribution happening in the year of 2027? Laura, we cannot comment specifically how many customers we will be reaping revenues from in 2027. Suffice to say that we are engaging aggressively with multiple CSPs. I would say the revenue growth from the first customer will be, I believe, very robust. We are really working diligently to see whether we can add more revenue sources, but we cannot comment any further right now. Thank you. Sure, certainly. Also, my second question is about our business model. I recall that previously on the AI ASIC project, we did mention that we are more flexible in terms of our cooperation with the client. Do we see that for the following projects, what kind of role we are doing versus our U.S. peers or Asian peers? Are we still more in charge of the services, or can we also be in charge of the full design, including the top line and also the full process? I think there are two aspects to your question. One is the business model. The other one is the capability. From a capability point of view, we are confident that we can perform all the way, not only analyzing, specifying models. We are capable from the IPs to, of course, the design, this very complex design, technology capability and advanced packaging technology capabilities, not to mention the very strong execution capability. Yes, we are confident we can. On the other hand, from a business model point of view, we remain flexible, as I said previously. We work with customers closely. The chip architecture now is very complex, so there are various ways to accommodate, to serve our customers even within one chip architecture. Without further going into the details, what I can say is we really work closely and provide customers with not only flexibility from the beginning and during the process. If customers need to change or modify their model, we just jump ahead to meet their request. I truly believe this is really a win-win business model for customers and MediaTek. Thank you. Sure. Thank you very much. Thank you. Next one, Gokul Hariharan, J.P. Morgan. Go ahead, please. Yeah, hi. Thanks for taking my question. Just to clarify something on the enterprise ASIC or data center ASIC, Rick, I think in February you had mentioned this project for next year will start in 1st quarter or 2nd quarter next year and reach a $1 billion revenue, excluding HBM. Are we still largely sticking to this timeline? It looks like the timeline is a little bit later based on your current commentary, but you're still sticking to that $1 billion even if the timeline is later. Is that a fair representation? We are working very closely with our customers to ensure the tape-out, a good time for tape-out, later this year in the latest quarter. We are doing everything we can. We are preparing everything in advance to ensure seamless execution after the tape-out. We feel confident that we can really run this tape-out into early production next year, starting roughly latest quarter next year. We strive to achieve that $1 billion target, as I said before. Thank you. Okay, got it. I just wanted to understand because I think first time we talked about this project, we were expecting this to start production in 2025. Obviously, there have been some delays. What is the reason for these delays in your perspective? How do you characterize this? When you talk about longer-term visibility, how do you factor in some of these kinds of changes which are quite unique to the ASIC business into that longer-term opportunity? Gokul, David here. First of all, I want to clarify. I think starting from the beginning, I do not recall we made any comment talking about the revenue start from 2025. I think we talked about the major ones actually 2026. We never talked about 2025. The second part, actually, I understand, especially some people worry about the hiccup. When we give out the revenue guidance for next year, rest assured we are also factoring in some of the potential hiccup as well. So, actually, the hiccup is within the original guidance or original range. That is why, I guess, you are wondering why even though there is some hiccup, the revenue target did not really change. I think that is the major reason. Is there a risk that this project will see some scale down given that your competitor also has a project which is of larger scale? How do we assess that risk? Or is that risk already factored into your guidance? I think so far, again, because we are talking about ramping up really late third quarter next year. Even in the worst case, if the overall scale is coming down, it will not impact next year's revenue. It may impact your lifetime, which was 2027, 2028. Okay. For the NPI, the new product introduction, you just need to start enough wafer to start with. The positioning of different chips is quite different for customers' data center use. We remain, again, confident that our chips will have really very good growth in the coming years. Thank you. Thanks. Thanks, Rick. Maybe my second question is on the automotive side. You seem to be seeing more and more traction on the smart cockpit, telematics. Could we talk a little bit about what kind of revenues can we expect from auto? Can we hit a billion dollars next year, or is that going to be like 2027? Any kind of quantification? Second, I think the trend seems to be to integrate ADAS into the smart cockpit and make it one SoC in the next couple of years. Could we talk a little bit about what is MediaTek doing on the ADAS side? Are you already having in-house IP which you can integrate, or are you partnering with somebody else? Gokul, I think for the billion dollar revenue target, I think we probably will not be able to make it next year. Okay. Even though we do see very strong revenue growth year- over- year, I guess we still probably need two to three years to see that benchmark. For next year, we will not see a billion dollars. From the design in and design win, or maybe just the backlog perspective or design pipeline perspective, I think it all looks actually pretty healthy and solid. Your question, Gokul, about the ADAS and your—of course, you are right about the ADAS and the coming architecture of having ADAS and the cockpit chip in one SoC. For now, you certainly know that we are focusing on cockpit and telematics, where we have built, I would say, very solid and very strong foothold already. Especially, I am quite happy with our latest development with our top-of-the-line cockpit chip, CX-1. It should start generating revenue next year, late next year. As far as the ADAS is concerned, we are working—I should say, working with certain customers to build the ADAS chip. That is all I can say. With that, we are quite confident. We are very confident that we will move into the ADAS field sometime soon. Thank you. Thanks. Thank you. Next one, Felix Pan, KGI. Go ahead, please. Hi. Good afternoon. Rick, David, and Jessie. Two questions from me. First of all, for the N2's progress, we are at the same pace as our competitors moving to the N2. As we know, the consumption for the smartphone is pretty weak from year to date, even with some subsidies. I just wonder that, how likely your customer to transfer the costs for the migration to the customer? Is that the consumption can bear with this kind of the cost increase? That's my first question. Second question will be the AI ethic. I think in the early days, I think maybe one company can do all the service from the computing die, I/O die, service. Now we see more and more players jumping into the place. We see some business model like the people doing service, people doing the computing die. How do you see the trends going forward? Any color will be grateful. That's my question. Thanks. The mobile flagship SoCs, there's no doubt in our mind that the 2 nanometer will be in the mainstream for the flagship. No doubt in our mind. The demand, the user experiences, requirements, all points that way. By the way, I think the smartphone market is not growing big, but it's not doing poorly either. I think it's about the same as last year, for instance. Acquire the share of the flagship phone has gone steadily higher every year. That was also part of the reason our share in the flagship SoC continued to grow also. The 2 nanometer with its power consumption benefits and the superior performance is really a perfect fit. There's no replacing for that for the next generation flagship SoC for the mobile domain. Now, on the ASIC part. I think you hit it right on that the data center ASIC is getting more and more and much more complex as the requirement for the computing power, for the power consumption requirements, for the very high-speed interconnect up and out, all demand a tremendous technology capability. From computing area, either the custom-designed computing chip or the XPU kind of a computing chip. Although we believe the custom computing chip will occupy the majority of the ASIC market for data center. The other demand for the extremely fast interconnect, which, of course, everybody's moving from 200G- 400G. Not everybody. Very few people can do that, by the way. Only very few. Moving on, and MediaTek is one of the very few who can do that. We also need to invest in the CPO as the next step after 400G. And even. As importantly or more importantly, the advanced XGEN technology, the 2.5D, very large chip size XGEN capability is a must. Together, probably also with the 3.5D packaging technology. These are very difficult, but also a must for the data center to achieve, to produce the computing power, the tokens per second at a reasonable power consumption and the TCO. MediaTek, I would say, is one of the very few who can and who will fulfill all those very, very challenging technology requirements and the business model flexibility. Thank you. Okay. Thank you. Thank you. Next one, Brett Simpson, Arete. Go ahead, please. Yeah, thanks very much. I had a near-term question and a long-term question. I guess first up on a near-term, can you maybe just clarify the smartphone outlook for Q3? I think you said flagship would grow, but is overall smartphone sales growing sequentially in Q3? I guess we're coming off a period of subsidies in China, particularly mid-range, low-end. We're seeing cutbacks in subsidy. Can you maybe share with us your perspective on how you think China consumer demand plays into second half? Do you anticipate any inventory builds? Directionally, would you expect sequential growth in Q4 for smartphones? Thank you. First things first, overall, I think we see a pretty healthy and normal inventory situation in the marketplace, both actually for our customer and also for channel inventory. It's healthy and props to normal and probably closer to the lean. For 3rd quarter specifically, due to our flagship ramping up, we see a very strong revenue run for our flagship. For mainstream and also the entry level, I would say probably flat to down a bit. Overall, I think for the market momentum, I would use the word probably healthy. I won't say it's strong, but it's really definitely healthy, and partially due to the incentive programs and also the product migrations in the marketplace. Just on that, David, you're shipping 9500 a little bit earlier than we would have expected into Q3. Does that take away, does that change your thinking on Q4? I mean, would you expect smartphones to grow in Q4, just directionally? I think for flagship specifically, the ramping starts from Q3, but it's not going to stop at Q4. You will continue from Q3, Q4, actually all the way to Q1. I think basically that's the cadence and ramping up cycle for flagship. Okay. Great. Thanks. Maybe for Rick, I just wanted to. A multi-part question on the NVIDIA relationship for MediaTek and where you think this is going. Maybe just first of all, the scope of this partnership, I'd love to understand how much headcount you're assigning to this opportunity. Does the opportunity with NVIDIA extend to collaborations on 400G servers? I know you're working with NVIDIA on autonomous vehicles. Does that extend into robotics? Can you maybe just talk at a high level about how you're thinking about this relationship? In terms of the business model with NVIDIA, obviously, you're starting to ramp the GB10 this quarter. Can you give us a sense as to how this translates to revenues and whether the business model with NVIDIA is accretive or dilutive to corporate EBIT margins? Thank you. All right. Let me get my head straight first. It is truly a multi-part question. Let me start with our NVIDIA collaboration model. We have two very active, and I would say up to now quite successful, business collaborations. One being the ARM computing chips, which you just mentioned, GB10. It will be shipped very soon in the third quarter. The other one being the cockpit chips in the autonomous vehicles. As I said, the CX-1, I just mentioned in my remarks, was developed through the collaboration with NVIDIA. Both companies are putting a lot of resources. We obviously do. We're putting resources, well, around this thousand a year, roughly. Saying all that, these are just the beginning of this, I would say, very promising and mutually beneficial collaboration model. As I would certainly believe Jensen also believes in, the business model varies from different business segments. Some business, NVIDIA owns the promotion and the go-to-market, for instance, for GB10, and some we do, like for the automotive chips. The impact, I think, the added value for both companies is very positive. In this time of the very robust demand for all kinds of AI capability, one key bottleneck is the resources. In this way, both companies can, in this collaboration model, both companies can achieve more with the existing resources. The created value, I think, will be obvious for both companies. Thank you. Thank you. Thank you. Next one, Bruce Lu, Goldman Sachs. Go ahead, please. Hello. Thank you for taking my question. Again, my question is still for the ASIC. I think Rick has just mentioned that customer ASIC has different positioning, right? Do you see any changes in terms of the positioning for the ASIC chips moving forward, i.e., that in the past, there is a rule of thumb that training is for GPUs and inference for ASIC, but it sounds to me that there are certain changes for that. Do you see a clear positioning for ASIC in inference or reasoning, or is it also because of competition? I mean, if the customer ASIC cannot really compete with GPU in certain, or in their previous planning, do you see that change their addressable market for you and for your customers? Bruce, I will not act as a data center expert myself. We are, however, only an ASIC chip supplier. As we have engaged with multiple parties in the business, I think we can calculate the TAM. For instance, for the ASIC, the customer ASIC is customer, of course, business. I believe the number we have been quoting is $40 billion TAM. Actually, if you look at different parties, we are probably on the low side of the TAM. I would say from that point of view, we are certainly not too aggressive. The other thing I think is quite sure is the customer chip being customer chip, the most important thing is the customers understand their workload requirement because they know the best, and so that they can custom build certain chips more efficiently than a general purpose accelerated AI chip. Both are critical. Both will remain more than viable for the data center industry. I do not think there is any question to that. It is just the reality of the data center industry requires the large CSPs to build their own customer silicon so that they have a certain portfolio of their capacity or capability to be more efficient and more potentially cost and power efficient. The ratio of their planning for different either training or reasoning or inferencing really also depends greatly on, again, their business outlook, and it is very difficult for us to comment truthfully. Thank you. Just a quick follow-up on this. The reason we want to know that is that we want to know whether this hiccup would be there due to technical difficulty or any changes in terms of the positioning, any changes in the competition landscape, or it is just simply that the chip is just a bit difficult. Bruce, I think so far, what we see is actually, like you say, from the market competition perspective, there is no material change in the last few quarters. I think you can rest assured that some of the delay or whatever is not due to what you talk about, the competition. Yeah. I see. I understand. Thank you. Okay. The second thing is that for the profitability into next year, as you might know, we have ASIC chips going up. Even with a billion-dollar TSMC raising the price. Are we still comfortable with our gross margin to be stable for next year and onwards at the current range? I think due to the different business model and also the accounting, I think probably the better way we talked about earlier is going to be operating margin accredited. That is specific for ASIC business, right? In terms of overall revenue for overall gross margin for next year, I think if you put it aside with the business model perspective, I think the outgoal is still trying to stabilize the gross margin. I see. I understand. Regardless of the pricing, wafer price or cost and different product mix, right? Yep. Okay. Thank you. Thank you. Next one, Arthur Lai, Macquarie. Go ahead, please. Hi. Hi, Rick and David. I'm great. MediaTek makes many new product commercially soon. My question will follow on GB10 and also ASIC. Number one, I think just one NSX about GB10. I think investor issue is still underappreciated in the partnership you make with NVIDIA. Can you share with us under the concept of partnership, how you do this partnership sharing? Also, will we see more to go on this partnership? That is my first question. Thanks. I think for the GB10, basically, it's NVIDIA owned the product. They sell the product to the marketplace, and we get paid in return. In terms of the sharing, we will not be able to share some more detail. Yeah. Okay. Got you. Thank you. Second one is more on ASIC revenue. We understand that there's a lot of discussion on ASIC. In the future, can the company have more disclosure on breakdown on ASIC? Thank you. I'm sorry. Can you repeat your question again? You mean breakdown? Yeah. The financial report in the future, can you give us more breakdown, the subsegment breakdown, for example, Smart Edge, Smart Home, and also the ASIC. Breakdowns on the revenue side? Yeah. For next year, actually, we will have our final decision. Yeah. Okay. Thank you. No more questions. Thank you. Next one, Brad Lin, Bank of America. Go ahead, please. Oh, thank you for squeezing me in. I have two questions. They are basically long-term questions. The first question would be on the long-term outlook, say, into 2027 or 2028, do we have any revenue or profitability target for the firm, reached by reaching a certain level from the non-consumer electronics, for example, ASIC, or things like automotive, robotics? Thank you. Yep. Great. I think we can provide probably the direction, no guidance, but we won't be able to provide the detailed guidance, especially if given overall dynamic of the market. I think, like we talked about earlier, starting from this year and next year, we see multiple sectors of growth opportunity: ASIC, AI ASIC, automotive, wearable, and computing. So we do believe, actually, we're seeing real new continued growth all the way from 2027 and 2028. I think that's what we've seen so far. But in terms of detailed breakdown by different contribution, we will not be able to provide detail right now. Sure. Got it. Thank you very much. My second question would be, we sort of mentioned that it's on the engineering resource. We have learned the resource is really tight, and the cost, the expense is also getting higher with the growing AI demand. Are engineering resources a potential bottleneck to MediaTek's business upside? If that is, when will that be, and how does MediaTek handle the risk? Thank you. Again, there are two aspects to it. Number one is the resources by itself. It is tight, yes. As I believe, that is the kind of industry-wide phenomenon. The one thing we are doing is to have really these resources are corporate. We have a corporate resource planning to prioritize our chip resources and to also retain outside resources in addition. The second part of the resources is the ability to improve the design technology, thus the resulting design productivity so that we can certainly do a lot more with our current resources plus the future. We are, of course, hiring the design resources. There's no stopping in that regard. Both of these, we believe we will, what we will do is to ensure the best growth for the company. 2026, 2027, 2028, and beyond. We will ensure the resources are being spent to achieve our future growth for the company. Thank you. Noted. Thank you, Rick. Thank you, David. Thank you. Ladies and gentlemen, we are going to take the last one. Next one, Charlie Chan, Morgan Stanley. Go ahead, please. Thanks for taking my question, Rick, David, Jessie. My first question is also on ASIC. I believe without your help, your key customers cannot execute this well to tape out on time. Congratulations on that. My question is about your second largest project, meaning, what would make your customers not choose you, right? MediaTek, you have engineering resource, great foundry relationship, also very competitive operation, right? What would make a customer not choose you to do this ASIC design service? I mean, for the second largest U.S. CSP customer. Charlie, as I said a couple of times, we are engaging with various large CSPs. We appreciate your comments about our capabilities, and we also believe we do possess those capabilities. The decision, of course, rests with the customer, and we remain quite, shall we say, hopeful. No matter what, I think for MediaTek, I believe we have proven ourselves to be not only a viable but also a very competitive ASIC supplier for the whole industry, data center industry. I do not believe we should just constrain ourselves to this or that opportunity. There are, and there will be, plenty of opportunities which will enable our future growth. I'm absolutely confident in that. Thank you. Okay. Great. Yeah. Looking forward to your next success. The next one is, I guess, easier. It's about your full-year revenue guidance in USD. I appreciate that company uses U.S. dollars to reflect your real operation. When you provide a full-year U.S. dollars revenue guidance, can you also extend the implied 1st-quarter seasonality? Thank you. Charlie, if we're looking beyond the seasonality for the full year based on the U.S. dollars, I think we still feel comfortable looking for EOV or growth, meaning growth, for the full year. Okay. Okay. Would that imply 1st-quarter to be slight to upsizing? And what would be the driver behind? I think for the quarterly patterns, actually, right now, it's hard to comment. I think for the full year, it probably will be easier. Okay. Great. Much appreciated for squeezing my questions. Thank you. Thank you. Ladies and gentlemen, we thank you for all your questions. Now, I'll hand it over to Ms. Jessie Wang for closing comments. Ms. Wang, please go ahead. Ladies and gentlemen, this concludes MediaTek 2025 2nd quarter conference call. The audio replay will be available in one hour after the call at the investor session of MediaTek's website. We would like to thank you for your participation, and you may now disconnect. Thank you, Ms. Wang. Ladies and gentlemen, thank you again for your participation in today's conference. You may now disconnect. Thank you again.