Good morning, and good evening, ladies and gentlemen, no matter where you are. Welcome to WIN Semi's Result Webcast Conference for the second quarter of 2023. My name is Joe Tseng, the Spokesperson and Associate Vice President of Finance in WIN Semi. Joining me today on today's call is Steve Chen, our General Manager of Corporate Administration. Today's call is organized into three sections. First of all, Steve will comment on the company's result and provide brief guidance for the third quarter 2023. Secondly, I will go through the financials in details. After that, we will open to the floor for Q&A. Please freely submit your question in the input box on the webcast window throughout the conference. Before we begin, I would like to draw your attention to the safe harbor notice on page one of the presentation slide. Please note that this presentation contains forward-looking statements, and these statements are based on our current expectations. Actual results may differ materially from our expectations, and the company undertakes no obligation to update these forward-looking statements going forward. Now, let me hand over the call to Mr. Steve Chen, General Manager of WIN Semi. Thank you, Joe, and welcome everyone. After a traditional off-season in the first quarter of 2023, our revenue for the second quarter reached TWD 3.9 billion, an increase of 38% quarter-on-quarter, and a decrease of 26% year-on-year. Benefiting from the recovery in capacity utilization, our gross margin increased to 20.1% from 11.4% in the first quarter, and operating margin also significantly improved to -4.3% from -20.8% in the first quarter. Net loss was TWD 276 million, and EPS was -TWD 0.27 for the second quarter, indicating the, the low risk the losses has narrowed sharply and compared to the previous quarter. While the global smartphone shipment in the first half of the year is estimated to decline year-over-year, we observed that our revenue has resumed growth momentum in the second quarter, with an increasing number of large orders from Chinese smartphone manufacturers. In addition, in response to the demand for new high-end smartphones in the second half of the year, related customer has started preparing for inventories, driving material sequential growth in both cellular and Wi-Fi PA in the second quarter. This has been a key factor in raising the capacity utilization rate of our fab back to 40%. Furthermore, infrastructure revenue also delivered double-digit sequential growth, while optical was the only segment that declined quarter-on-quarter. As of today, the war and the trade tension arising from geopolitical conflict continue impacting us, and the economic downturn caused by inflation has weakened the customer's purchasing power. The hardest hit industry has been the rapidly evolving smartphone market, and this has also affected the process of related infrastructure development. Until recently, we have finally seen some signal of recovery in the smartphone market. However, it's still too early to conclude that the inventory adjustment at end of the user level, which has been ongoing for over a year and was nearly completion. WIN Semi, as always, the best foundry partner to our customer. Despite of the challenging economic condition and the sluggish demand, our strategy during this period has been consistent. We continue to investment in research and development, work very closely with our customers, and understand their need to enhance their competition. Our goal is to assist our customers in sizing opportunities up on the demand recovery, maintain their, in our market position, and survive and thrive during these challenging times together. Looking ahead to the third quarter of 2023. Our revenue is expected to grow by low single digits than the previous quarter, and gross margin will be around the level of mid-teens. I will turn the call back to Joe. Thank you. Okay. It's our pleasure to present our financial results for the second quarter of 2023. Please refer our presentation slide with the remember read it over page 2 of the safe harbor notice. Now we started from page 4. I'm gonna talk about the revenue and the margin. The second quarter of 2023 revenue was TWD 3.9 billion, and the quarter-on-quarter was up 38%, and the year-on-year was down 26%. In Q2 benefit from the capacity utilization recovery, recovered back to 40% and also a little bit help from the product mix. Therefore, the gross margin increased to 20.1% from 11.4% last quarter. The operating margin was significantly increased to - 4.3% from - 20.8% last quarter. Please flip to page 5. I'll be talking about the earnings. With the order recovery from our customer, and therefore, the losses have been narrowed down in Q2, and the net loss was in Q2 at TWD 276 million, and quarter-on-quarter improved about 42%. EPS in Q2 was -TWD 0.23, and compared to Q1, it's nearly almost - TWD 1. Now we take a look from the product mix in page 6. As Steve has mentioned it, on his comments, remember Q2 quarter-on-quarter revenue was up around 38%. The major momentum, the first of, firstly, is for Wi-Fi business. In the product mix, in Wi-Fi, in Q2, was between 15% and 20%. Compared to last quarter, it's only 5%-10%. That's mainly due to the U.S. premium phone launching the new generation of the smartphone in second half. Some related customer already ran up the demand. On the same time, the second major momentum coming from cellular PA. The major momentum is from China. It's, we can see that, the China market has been downturned for a long time, over a year. We, do see some large order from China customer, and the momentum still coming and even stronger. Another momentum also for cellular is also related to U.S. premium phones, second half, new model. Of course, different customer for the U.S. premium phone, maybe that started ramp up on a different timing. It looks like the Wi-Fi customer already ramp up earlier, so the peak maybe is closing. The cellular customer still continue. The third one for the Q2, it's a infrastructure customer. Infrastructure in Q2 was between 25% and 30%. Although the percentage is lower than Q1, but it's already better than our expectation, and the quarter-on-quarter for infrastructure also increased about double digits. The only segment in our product mix decreased is the optical business. In Q2, optical business roughly around 18%. Okay, that's for product mix. Now, please flip to the page 7, talk about Q3 guidance. As I mentioned it, some of for the third quarter, supposedly, it's a U.S. Q1 smartphone's a high season, actually, it's Q2, from Q2 to Q3. What we see that, like, for example, like, a Wi-Fi has already ramp up in Q2, possibly, sometime in Q3, it will be reached the peak. The cellular business for U.S. Q1 smartphone, the customer, it's ramping up a little bit later, and then will continue in Q3. Also the China cellular customer, the large orders of the momentum is still strong. Q3 sees that the cellular PA will be the stronger factor for product mix. Unfortunately, probably will see Wi-Fi infrastructure and the optical maybe not as strong as Q2. Therefore, the Q3 guidance, the revenue gonna increase about low single digit quarter-on-quarter. Then, the gross margin, because of what I mentioned, is the cellular PA, it's the major growth factor. Because of the product mix, the growth margin will be around the level of the mid-teen. That's the Q3's guidance. Now, we can quickly take a look for the financials. First of all, please flip to page 9, talk about income statement for Q2. The consolidated income statement for Q2. First of all, I would still want to remind everybody that the figures, everything, what I'm gonna say, will be based on the unaudited basis. The actual results should be based on the CPA's report later on. For Q2, net revenue was TWD 3,944 million. quarter-on-quarter was up 38% and year-on-year was down 26%. The gross profit was TWD 791 million, the gross margin for Q2 was 20.1%, increased from 11.4% last quarter. As in last hour's earnings call in Chinese, already have investor asking about our subsidiary, may impact some of the gross margin. Well, I would like to share with you that our subsidiaries, they're holding the investment company holding the listed company, like Venture, this kind of listed company. Their market price volatility impact the gross margin, I mean, it's 1.4 percentage point, means it contributes a 1.4 percentage point. Means that, the Q2 gross margin supposed to be high teens, if we exclude the, the, the Venture contribution. The operating expense is TWD 961 million, and operating expense ratio was 24%. Actually, the R&D is already 13% compared to the revenue. The operating loss was TWD 170 million, and therefore, the operating margin was -4.3%, and it improved from -20.8% last quarter. The non-op item was a loss at TWD 191 million. I will explain that later in page 11. The loss before tax was -TWD 362 million. There is a tax benefit around TWD 86 million. Therefore, the net loss was TWD 276 million. The net loss was improved about 42% compared to net loss, about TWD 479 million in Q1. The net margin was - 7%. Compared to last quarter was a - 16.7%. The EPS for Q2 was -TWD 0.23. Last quarter was a -TWD 0.95. The return on equity for Q2 was - 1%. Last quarter was - 5%. The approximately utilization rate for Q2 was 40%, which is increased from 20% last quarter. The depreciation expense was TWD 1,172 million, and the CapEx was TWD 540 million. It's not, not so different from last quarter. Accumulated at the first half income statement, please flip to page 10. The first half of 2023, the net revenue was TWD 6,803 million. The year-on-year was down around 38%. The gross profit was TWD 1,117 million, and the gross margin was 16.4%. The operating, operating expense was TWD 1,882 million. Therefore, the operating ratio, first half was - 28%. The operating loss for the first half was TWD 765 million, and the operating margin was - 11.2%. The non-op items are accumulated, the Q1 and Q2 was TWD 152 million. The same we will discuss it later in page 11. The loss before tax was TWD 917 million. There was a tax benefit, TWD 163 million. The net loss for the first half was TWD 755 million. The net, net margin was - 11.1%, and the EPS for the first half was TWD 1.18. The first half return on equity was - 3%, and approximately accumulated utilization rate was 30%. The depreciation expense for the first half was TWD 2,249 million. CapEx for the first half was TWD 1,076 million. If we review what the depreciation expense and the CapEx guidance we provide in the early of this year, I think we're still in line with the guidance about the depreciation expense will not increase not higher than 10% year-on-year. That's still in line our view. The CapEx for the whole year of 2023 will be TWD 4 billion ± TWD 1 billion. That's also in line. We also still remain the same views. That's consolidated income statement for the first half. We flip to page 11. Page 11, non-op item. I think the major two item is the foreign exchange loss about TWD 650 million, and the gain on ECB buyback for the gain of TWD 540 million. I think we should put it together to discuss. First of all, we implemented the ECB buyback in Q2, and we have a gain because of the bond re-repurchase the bond and the gain of, for the TWD 540 million. At the same time, because we buy back a fifth, this is a TWD-linked ECB, which means the foreign exchange about TWD is fixed. Therefore, when we doing the ECB buyback, there will create some kind of foreign exchange loss. TWD 650 million loss. At 650, there are 50% coming from ECB buyback. Another 50% is due to U.S. dollar appreciation in Q2, and the evaluation. We have the foreign currency debt outstanding and the evaluation loss. The all together, put it all together, it's TWD 650 foreign exchange loss. If we consider the ECB buyback, the gain and the loss, the foreign exchange loss, coming from the ECB buyback altogether actually still gain more than TWD 100. It should be again, on the offset that of should be still gain between TWD 100 million and TWD 200 million. Yeah, that's another item. Finally, the last one will be the balance sheet. The balance sheet in page 12, well, see that again, because of the ECB buyback, so our cash, the in the cash equivalent, is reducing from last, from the, from last quarter that as to the June 30th, we still have a cash around TWD 7 billion and TWD 54 million. And the total assets was TWD 65 billion- something, and as you see that the outstanding ECB in Q2, was around TWD 4 billion, reduce from the last in March 30th, with the ECB outstanding is around TWD 10.5 billion, and as of June 30th, it's at TWD 6.2 billion. That's reducing the bond payable around TWD 4 billion, more than TWD 4 billion. Therefore, the you see that the liability also reducing about TWD 4 billion. As to the common stock is remain the same. The total equity is TWD 34 billion and TWD 64 million. Therefore, the book value per share become TWD 76.01. As to with significant reduce our debt, so the debt ratio become 48%, reduced from 51% last quarter. The last one would be our current ratio is 92%. Okay, this is, this is a balance sheet. Okay, we thank you very much, and now we can begin the Q&A. Please submit your question in the input box on the webcast window now. Thank you. Okay, there, there is a question asking about Q4's visibility, and also would like to know the progress on GaN on silicon carbide. First of all, I think our visibility is still not reaching the Q4 yet. I mean, we still quarter-by-quarter, watching the backlog and also customers' order. So far, we still not even reaching the full Q3. But I think we already can roughly provide the Q3 guidance, but not Q4 yet. The gallium nitride and silicon carbide are actually, for this technology, it's already become our major technology for our infrastructure business. There are many customer develop or even already mass production with us, and then we also provide different kind of, the, technology on GaN on silicon carbide. GaN on silicon carbide, GaN, including like 0.45, 0.25, and 0.15 micron of a GaN. And, the customer's feedback is very, very well. Of course, our infrastructure, it's one of the important technology in our infrastructure portfolio, but it's not the only one, of course. We still have a lot of product and order from customer for the GaAs, or gallium arsenide, like pHEMT technology, for LNAs, for example. We have, we are doing even better. Therefore, this year, I think the whole infrastructure, it looks a little bit slowed down due to the macro environment and the economic issue. But we still are confident on the GaN on silicon carbide, because for longer term, the customer, the infrastructure customer, they like this technology. And with the 5G ongoing, it is replacing the LTE modules technology ver y significant, so we still look forward to it. Thank you. Another question asking about it looks like we beat our Q2 guidance for Q2 asking why. Well, as we did explain it, the our Q2 margin was gross margin was 20.1%, but if we exclude the subsidiaries contribution, which it means like Venture Corporation Limited holding about 1.4 percentage point, then exclude that will be will be high gains. Still better, it looks like still better than our original guidance mid-teens. I think should be due to the product mix. You see that the utilization going up to 40%, that's the plus. On the, on the same time, the infrastructure business in Q2 was better than our expectations. I think the major reason is the product mix better than our expectations. The Q2 or Q3's guidance, again, we guided mid-teens again. I think the major reason still the product mix, because in Q3, I think the major growth gonna happen in the cellular PA, no matter U.S. premium phone, no matter the China smartphone. T hose are the major growth in Q3. The rest of the item in product mix, like a Wi-Fi, probably not continue to grow from Q2, due to the inventory pool are probably reaching the peak. Also, infrastructure and optical business, we don't see any significant growth in Q3. Due to the product mix, the low margin business for cellular PA is the only sector will be continued to growth. We have to provide the growth margin, like the mid-teens, will be safer. Thank you. Okay, there's a question is about the ASP trend. I think, in most of the case, our ASP was related to the product mix. For example, as everybody know, I think, lowest ASP for recent application is cellular PA. Once the cellular PA portion is higher, usually ASP will be lower. For example, like Joe just saying, we guide for the third quarter of this year, the margin is meeting. I think, mainly it's because of the product mix, because in Q3, we suppose the most of the growth momentum is coming from the cellular PA. Because of their ASP and margin definitely is the lowest one of our all the product mix application. That also indicate, I think the Q3, the ASP, will become lower than Q2. Thank you. Okay, there is an investor asking about the plan for holding in the Vanc hip stock. I think, as you guys know, that Vanc hip stock listed in China market in the around the middle of 2022. As, as you guys probably know, we acquired over from MTK, become, we become the strategic shareholder and also the major supplier, that's the relationship. Well, I think it's still in. T here is a locking period for their IPO. So I think we, after the locking period, we will consider, and we will do based on internally, we will base on, our evaluation for next action. So, that's our consideration. Thank you. Okay, there's a question is also related to the ASP, especially for the PA, cellular PA. Yeah, definitely, like, like I say, cellular PA is the lowest ASP application among our four applications. Yeah, definitely, the trend of the cellular PA, definitely, if the technology the customer use, keep the same, definitely the trend will be going down. Yeah. Fortunately, every year, we will upgrading our process version. Will the ASP going down or not? I think, it really depends on the customer adopting the new technology, a new generation technology, or keep the same technology they use last year. I f they keep the same technology, definitely the trend will be going down. It's also, definitely the market trend because of, it's a very competition market. If the technology keep the same, definitely the ASP will be going down year by year. That's the reason why we semi still keeping, put a lot of resources for R&D and try to create more value of our technology. Thank you. Well, there's an investor asking about our guidance for Q3. Does that include Venture stock volatility? The answer is no, because for any, for any guidance we provide, we don't take those into consideration. We don't, because that's not predictable for the future. I think, I mean, that it's not even the September 30th yet. The Venture's, the evaluation for Venture stock is once a quarter, so for those kind of impact, it's unpredictable. We definitely not take into consideration. Thank you. There is an investor asking about the Wi-Fi demand, Wi-Fi business. Okay, I think I did mention it about this year's Q2 and Q3, what happened on Wi-Fi. This, because I remember, in the very beginning of this year, we did mention that especially we expect Wi-Fi business to be better than the year before, because we do see that the smartphone market adopting Wi-Fi 6E, and which is everybody waiting for a long time. Then Wi-Fi 6E will be a bridge to cross over to Wi-Fi 7, which is the next generation. I f it happened, starting from Q2, I think, due to the U.S. Q1 smartphone supply chain, it's already ramped up the Wi-Fi demand, which is earlier than before. Normally for U.S. premium phone, the ramp, the ramp-up period for a new generation in Q3, normally, the high season will be the Q2 and Q3. The Wi-Fi started earlier, and then it's reaching, I think, right now, in the middle of, in between of, Q2 and Q3, we see that the Wi-Fi inventory pool is reaching the peak, and probably not going higher, and for the following months. That's the but, at least, for the whole years, we believe that the Wi-Fi growth will be a lot better than 2022 or even 2021. That's because of adoption of the Wi-Fi 6E for this year. Talk about Wi-Fi 7 for the next generation standard. I think Wi-Fi 7 for gallium arsenide solution has very good opportunity because the Wi-Fi 7's data speed, data transmission, data speed, data rate will be 6.36 higher than the Wi-Fi 6. Also, has a very advantage in the linearity and the operating frequency. The Wi-Fi in Wi-Fi 7 generation, the gallium arsenide solution has a better position than any silicon solution. We look forward to seeing the Wi-Fi 7 generation coming earlier. I think, so far, Wi-Fi 6E is already here, we already get a benefit from that. Yeah, this is about Wi-Fi business. Thank you. Okay, there's a new question. It's about the Wi-Fi application ASP. Basically, in most of the case, the ASP was really involved with the volume. That means, with a high volume-based application, usually the ASP is lower. For example, cellular is the biggest volume, so the cellular PA is the lowest ASP. In most of case, our Wi-Fi is also related to the smartphone, related Wi-Fi. Usually, the price is, ASP is really close to the cellular PA, that kind of trend. Thank you. Okay, well, it's 3 minutes to 4:30 P.M., and there is a one final question comes out. How, how is the outlook for, of the future? W hat a big question. I think, well, first of all, we still are confident on the future for the compound semiconductor, no matter the radio frequency or optical, and there still have a lot of opportunity in for the future. I think that for the recent, for the recent year or the short term, what happened here is, is due to the macro environment, and the slowdown, no matter the inflation or the geopolitical issue, causing the demand is, is weaker. I think we still confident on the long-term future, and for the compound semiconductor. Of course, we will update, with you, with investor, quarter-by-quarters, what we see, and, the guidance, quarter-by-quarter, we will update with you. Thank you very much. Okay, now, it's almost time. Now, seems that there's no further question. Thank you for your participation in WIN Semi's conference, and there will be a webcast replay within hours. Please visit www.winfoundry.com under the Investor Relations section. You may now disconnect, and goodbye.