Welcome everyone to Parade Technologies 2023 Q3 webcast investor conference. Investor Relations, Parade Technologies, Mr. Yo-Ming Chang, will present 2023 Q3 financial results first. And during the presentation, all lines have been placed on mute to prevent background noise. After the presentation, there will be a question and answer session in English by CEO, Dr. Jack Zhao, and VP of Finance, Mr. Kuowei Wu. And we will also reserve the last 15 minutes for the attendees who would like to ask questions in Chinese. Please follow the instructions given at that time if you would like to ask questions. Welcome Parade Technologies 2023, third quarter, financial investor conference. Today's meeting will first be presented by conference. Today's meeting will first be presented by Investor Relations, Mr. Yo-Ming Chang, to report Parade Technologies' third quarter 2023 financial results. During this presentation, all lines will be in mute mode. After the mute mode. After the presentation, we will arrange for CEO Dr. Jack Zhao and Chief Financial Officer Mr. Kuowei Wu to take your questions in English. Finally, we will reserve 15 minutes to take your questions in Chinese. Now, I would like to introduce Mr. Yo-Ming Chang, Investor Relations of Parade Technologies. Mr. Chang, please begin. Thanks, Wang Qi. Welcome everyone to Parade Technologies 2023 Q3 webcast investor conference. Parade Technologies third quarter 2023 consolidated revenue was $116.96 million, and the net income was $19.32 million. It's both best, and the fully diluted after-tax earnings per share were $0.24 and $0.24, respectively. These results compared to consolidated revenue $151.04 million and a net income of $32.64 million, or $0.41 and $0.40 per basic, and a fully diluted share in the year ago quarter. In U.S. dollars, the third quarter revenue increased 12.27% sequentially and was down 22.57% year-over-year. The gross profit in the third quarter of 2023 was $31.17 million, an increase of 11.74% from the previous quarter, and a decrease of 25.15% compared to the same quarter of last year. On August 30, 2023, Parade announced the availability of the PS8580, PS8580V, and the PS8581, PCIe 5 32 Gb ps linear redriver, 2×2 cross switch family. PS8580 and the PS8580V integrate a quad-channel unidirectional linear redriver with a 2×2 cross switch, while PS8581 features a linear redriver only. PS8580, PS8581 are designed for notebook PC, server data center, and industrial applications, while PS8580V supports automotive AEC-Q100 Grade 2 requirements. Multiple PS8580 devices support 4x4, 8x8, or 16x16 bidirectional link. PS8580 family is compliant with PCIe 5 specification. On October 18, 2023, Parade announced the availability of its new high-resolution automotive-grade PS8627V DisplayPort to LVDS protocol converter. The PS8627V is used to convert a DisplayPort or embedded DisplayPort video transport stream to the LVDS interface, used by automotive-grade display panels or display assemblies. The PS8627V enables ultra-wide display up to 8K, 1K 60 Hz with 30 bits per pixel color depth. The PS8627V features a DP/eDP input of up to 4 lanes and an LVDS output of up to 6 ports. Enabling a native DP/e DP connection between automotive video control units and the display assembly can simplify system design and lower implementation costs by eliminating the need for a service for the audio-video transport channel. Based on the current business outlook, Parade is providing the following guidance for the fourth quarter of 2023. Revenue is between $110 million-$122 million. Gross margin is between 43%-47%. Operating expense is between $30 million-$33 million. 各位投资界的朋友，大家午安，欢迎大家来参加普瑞公司2023年第三季线上法人说明会。首先，由我跟各位报告普瑞公司2023年第三季财务数字。本公司2023年第三季合并营收为$116,960,000，税后净利为$19,320,000，除权后基本与稀释每股税后盈余为$0.24，约当TWD 7.7元，及$0.24，约当TWD 7.68元。而去年同期合并营收为$151,040,000，税后净利为$32,640,000，除权后基本与稀释每股税后盈余为$0.141，约当TWD 12.38元，及$0.40，约当TWD 12.21元。2023年第三季合并营收较前一季增加12.27%，较去年同期则减少22.57%。在营业毛利方面，本公司第三季营业毛利为$51,170,000，较上一季增加11.74%，较去年同期则减少25.15%。 2023年8月30日，普瑞公司发表支援PCIe 5 32 Gbps之线性中继器，及2x2交叉开关系列产品，PS8580、PS8580V以及PS8581。PS8580与PS8580V为单向四通道与内建2x2交叉开关之线性中继器，而PS8581则仅支援单向通道之线性中继。PS8580、PS8581为针对笔记型电脑、桌上型电脑、伺服器、资料中心以及工业应用，而PS8580V则可支援车用AEC-Q100 Grade 2需求，客户可使用多数个PS8580以支援by4 by8 by16的双向传输通道。PS8580系列产品完全符合PCIe 5的标准规范。 2023年10月18日，普瑞公司发表新一代支援高解析度以及车用规格的DisplayPort to LVDS协议转换器，PS8627V。PS8627V应用于转换DisplayPort或Embedded DisplayPort影像传输串流至LVDS界面，与车用规格之显示面板或显示模组上。PS8627V支援高达8K 1K 60Hz解析度与30 bits per pixel色深，之超宽显示面板应用，并且带来最高，四通道的DP/eDP输入端口，以及最高六铺LVDS输出端口。在车用影像控制单元与显示模组间的DP/eDP直连，更可简化影像与音讯传输的线路设计，并省下实施成本。 基于目前对2023年第四季营运的展望，我们预期合并营收为$110,000,000-$120,000,000，合并毛利率为43%-47%间，合并营业费用为$30,000,000-$33,000,000. It is my presentation for the 2023 Q3 financial results. Now, I transfer to CEO Dr. Jack Zhao to answer your questions. Wang Qi, you may begin. Yes, thank you, Yo-Ming. Ladies and gentlemen, we will begin our English Q&A session. If you wish to ask questions, please press star key and number one on your telephone keypad, and you will enter a queue. After your name is announced, please ask your questions. Should you wish to cancel your question, you may press star key and number two. Thank you. Now, please press star key and number one if you would like to ask questions in English. Thank you. The first one to ask questions is Eric Chen from UBS. Go ahead, please. Hey, yes, thank you for taking my question. So my first question is on your near-term outlook. Near-term outlook looks a bit soft. Could you talk about your observation about your stable customers into like near quarters? And also, what's your observation about your tier one global customers? And, if possible, what's your initial view into the first quarter next year? Yeah. I think as we had said in the last conference call, we see the PC market is on the L-shaped recovery. And, we continue to see those kind of trends and, to extend to the half in Q3 and Q4 and, continue will be to the 2024. And, we think that 2024 probably recover will be better than the 2023, hopefully, and that in covering for the, the newer device introduction, newer system introduction. So that's pretty much the current view we have. And, of course, when you come to the 2024, you will have a better comparison with the 2023, since we had a, a pretty bad downturn in the 2023. So the 2024 definitely will be, looks much better than the 2023 in terms of comparison, right? Yeah. Maybe a quick follow-up with that. I'm just curious about what's your observation about your standard plus customers and also your general notebook customers. I mean, are there outlooks fair, varying similarly? General notebook customer has been recovered for at least two quarters, and we saw general notebook market gain a quite good strength in the Q3 and then also reasonable in the Q4. Actually, it's getting pretty promising, I would say, in the Q4. Our standard plus customer, they were a little bit late in terms of recovery. However, hopefully we see some trend and in the Q4 or continue to next year, they will recover better, especially they had announced a new product just recently and also reduced the price for the existing, the notebook. And we really hope they can recover. And even though that was a little bit delayed with others and yeah, we'll keep it pretty positive. We think they are very strong. Their product is top of the line. They should be able to catch up and to meet the rest of all the market. Great. Thank you. And maybe my last question I have is on the competitive landscape. So, could you talk about your place in USB4 retimers and also PCIe Gen 5 retimers? I think there are all these Taiwan-based fabless design houses introducing their own solution to these markets. So what's your edge in these markets, respectively? Okay. There are two, on the PCIe Gen 3 or Gen 5, there are two type of distinguished difference. The product, one we call the retimer, which will address, more in terms of a data center, in terms of, the more advanced system. And there's a redriver, which you could do, short distance, however, with a lower power. So with our new product introduction, we are have the paths on both segments. And, we continue to see those mission critical, server system or AI systems will prefer using retimer, and, and, those are a lot more expensive and a lot more rigid in terms of design, as we currently engage with, the OEM customers. there are another segment, which is PCIe Gen 5 driver, and the typical can address the needs for shorter distance, but it's pretty reasonable good, and at the same time, the power is lower. So it will tend to be addressed, like a cable, those kind of things related. So we are playing on the both sides, and we think we cover the needs for the different market on the different devices. Great. Any color you could share about the USB4 retimer competitive landscape? Also I'm particularly curious about your USB4 opportunity in Intel-based notebook. I think last quarter Intel introduced Thunderbolt 5. Is it possible for Parade to finally have any opportunity financially into this, into the segment? Okay. The PCIe 5, and we are working with the end customer and hopefully by the Q1, sometimes we have some shipment as we communicate with the market in the last conference call, which seems our solution is pretty promising as well. And in terms of USB4, we are dominated on the non-Intel platform, whether AMD or Qualcomm or others, but Intel is a bundle sale with their own solutions. So it's been little bit that because they own their CPU, they own their own retimer, it's very hard to break it. Even though we did communicate with OEM customer, and OEM customer really support us to do that, but I think it will take time to break into. In terms of what you said, the Thunderbolt 5 or the 80 gig or 120 gig solutions, in fact, we already have the test chip already taped out, and on the November time frame, we should have the test chip with us. And so we will play with that market for sure. And yeah, we'll follow up very closely on those segment, and we believe we will be the leader in this segment, and I hope Intel will allow us to play with on the Intel platform as well. But for sure, we already are lined up with non-Intel platform. And yeah, that's what we can report. Okay. Thank you. I will back to the queue. Next one to ask questions, Seon Chu, Daiwa. Hi, Jack. How you doing? For the first question I have is that, according to the fourth quarter guidance mentioned, it seems the revenue at midpoint is more flattish on quarter-over-quarter basis. Does that mean that our strong September revenue will not be able to sustain till the fourth quarter? Is it because of the slower recovery of our standard block customer, or is there any other reason behind it? Thank you. Well, I think the PC segment historically, traditionally tend to be Q3 is a stronger quarter, and because of holiday related. And the Q4 dependent time, a lot of time could be flat, could be a little bit lower or could be a little bit higher. And we guided the range, but we work very hard. Let's see what the end result will be. And as much I can say into the Q4, the momentum of business is still existed. However, the customer, their PO order is tend to be short and they tend to be the pulling type of thing. So which means the end customer is not as stronger as what they, we would like to. So typically they are just pulling the POs and place very short-term POs. So that's what we experienced. But compared with the other area, are still promising. We think the PC in the Q4 we are kind of satisfied with the momentum we see at this moment. Okay, got it. So, another question for me is on the foundry side. Recently we see our peers enjoying better cost structure with their wafer price reduction from their suppliers. And are we seeing, like, any price cut from our supplier? Or, and if not, what's our strategy on managing our cost and also the selling price to our customers? Thank you. The foundry side, the intensive cost is really subject to which nodes, which foundries, and so on and so forth. And we tend to be old nodes or traditional established nodes, and foundry inside China more willing to reduce the price. And the foundry in Taiwan, or in the advanced node, is difficult to negotiate the price. But the more, however, the more into the late 2023 or into 2024, as semiconductor demand continue softening, foundry is more willing to negotiate on the price. So that's a good side of it. We continue to push the foundry to reduce cost, to help support our customer as well as our gross margin, maintain our gross margin. But that's a dynamic change. As the trend, the older nodes of wafer, you will be able to negotiate price. The foundry in the China side is a lot more easier, and in the Taiwan side is a lot more difficulty and where it is in the advanced now. Got it. Thank you. Next one, we have Vivian Yang from Nomura. Go ahead and please ask your question. Hi, Jack. Hi, Yo-Ming. Can you hear me? Yes. Go ahead. Okay, sure. I got two questions. First, I would like to ask about next year PC market. We know that some people are hoping a lot of recovery for PC due to some reasons. For example, the replacement cycle after COVID, AI PC or a Windows refresh. Could you provide us with your thought about maybe which would be the biggest driver for next year's PC market? Okay. Thank you. And I think what you had said all are true, and it might all well happen. And what we read as many research report as we could, and we think the 2024, the PC unit growth will around 5%-10% or high single digit. Having said that, we see the driving force, one, is because the early time purchased in the pandemic, start pandemic on 2020, now the PC life, the edge has become three or four years, so it's time to replace. And more important, exciting one, is related to the Microsoft just announced Windows 11 and announced with Copilot AI function. And those are the new feature and very exciting for the 2024. I would think 2024 will be the first year the PC or notebook will equip the Edge AI functionality. We are working with the leading notebook vendor to enable those features and design with the CPU has such a AI, the series of features for newer notebook. We truly hope those AI-equipped notebook PC may take another new wave for the replacement. That's the exciting thing, and we hope we'll see. We were told coming CES show in Las Vegas, and that's like two months or early next year, two months or three months away, and you will see a lot of the notebook or newer notebook related to this area and to display or exhibit over there. We certainly hope that will become a new way to move the replacement cycle earlier. And another good thing is those AI, the acceleration feature do demand a high bandwidth, and with PCIe Gen 4, Gen 5, and those are the same benefit to us as we are the high-speed provider. Thank you. Very clear. And my next question. Thank you. This is regarding your long-term opportunities. We know that you have a lot of long-term growth drivers, such as auto projects, PCIe opportunities in servers and maybe USB port. So just want to ask if you have a ranking, like, which projects would bear fruit quickly or have more meaningful contribution in the next maybe three years? Okay. It's very real for the USB4 5 or standard level 5 retimer or in future for the driver to continue strength our high speed, the success, right? And those are the large volume, we commit a quite large volume or large market share there. So those are for sure, that's the first party and the first growth segment. And then in addition, our traditional HDMI, the HDMI retimer, HDM, the display retimer, and those high speed related will contribute to our revenue strength. And we're talking about HDMI 2.1, we're talking about DisplayPort 2.1. And the new standard be proposed, HDMI 3.0, and those in the coming years will become our the opportunity to grow on both the market share and the ASP price. The second area we are exciting is we are doing quite new design on the high speed side for automotive application. Those are the new to us, and we do have some success design our high speed parts into automotive. And I think those are the new contribution to us for revenue purpose. And however, the automotive, the volume cannot be, not as high as the PCs, but it does help us to grow and help us to understand automotive, the area. And that's probably second. And in the automotive, we'll also address the space side. And then the public will say the PCIe Gen 4, Gen 5, and those will start to become a contribution to our revenue. Okay, thank you. Very clear. I'll back to the queue. Next one, we have Richard Chen from AIA. Go ahead and please ask the question. Thank you. Thanks for taking my question. My first question is regarding the foundry node that Parade will use. Could you share any of your product line or application which need to, you know, migrate into 16 nm or 14 nm or more expense, given that the increase of the speed from the customer? Thanks. This is my first question. We use pretty broad the semiconductor nodes and depend on the product distributed from the 0.11 all the way to the thin flat 12 nm thin flat the technology node. And certainly the a lot of we are use is a 40 nm, 20 nm, and a 55 nm. So those are the all the way, and on the bottom side, it has the older 110 nm thing. On the high speed, we tend to use the more the advanced nodes because of the speed requirement. And in addition, we also use silicon germanium BiCMOS. Okay? The many people does not very familiar with silicon germanium BiCMOS. Those are in the using on the, in the U.S., on the, on the, the, the, the global foundry, the, the original, the IBM fab. We are pretty broad in the usage for the, quite widely distributed foundries. Got it. Got it. Thanks. Another question is that you're talking about the AI PC opportunity. Could you share roughly that, how you see the AI PC shipment for the next several years? And for Parade yourself, how do you see the AI PC could drive the company increase of Parade? I think the people has been, in terms of hardware side, software or operating system, Microsoft, the heavy lifting already doing quite a lot, right? Windows level, Copilot, and you will see more. A week ago, I think Qualcomm also introduced those, the elite, what is it called, Snapdragon X, the AI AP processor, which has a AI the accelerator there, right? So we are working with the team there to design our high speed parts, and hopefully soon will be on the market. On the other side, we see the opportunity, customer, our notebook customer, using so-called OCuLink interface to connect our PCIe Gen 4, Gen 5 signal to connect to the external graphics card. It's not for purpose of play game, but a purpose of accelerate the AI functionalities. We are on those systems with our PCIe Gen 5 retimer, redriver, along with it. Hopefully, those systems will become more popular, and then we will have more business associated with it. Got it. Thanks. My last question is also regarding the notebook. Thanks for that. You sharing initial thoughts that notebook shipment will be up around maybe 5%-10% or high single-digit next year. But I'm wondering, could Parade IC shipment could actually outpace the overall notebook shipment? And also, how you see the inventory level at your customer site heading into 2024? Thanks. But we are actually really based on the research report and the people indicated, and we talked to our end customer, and it seems that our end customer also sort of validate what the research report says, and hopefully the momentum can be stronger. In general, I would think the PC OEM, it's kind of quite positive for 2024. Very different from the early stage, early time of 2023. It's a lot more positive and look at the longer term, what the future will be and what the new technology will be. So I was thinking in this moment, as we talk to OEM and the OEM are more positive to 2024. Thanks. I will back in the queue. Thanks. Now, the line is open to Tiffany Yeh from Morgan Stanley. Line is open to you now. Okay. Thanks, Jack and Yo-Ming, for taking my question. So my first question is that, what is the revenue breakdown by product in third quarter? Okay. For our DisplayPort product, it was lower than 40%. Our high-speed product, PS product, is slightly lower than 45%. Our TC product is slightly above 15%. Our TrueTouch touch product is lower than 5%. Okay, got it. Very clear. So my second question is that, I would like to follow up on the PCIe Gen 5 retimer side. So we are seeing several peers entering into the PCIe Gen 5 retimer market. Could you share with us our advantages over the peers? And do we have a revenue contribution target for PCIe Gen 5 retimer in the near term? Thank you. I don't know the, what is the, the, our competitor, clearly, where they are. Our customer told us, and, our, PCIe Gen 5 retimer power is low and, more stable. Since they are putting to the system with AO from the [commander], and, each chip is almost 20 watts, so that any power, contribution is, significant. In terms of a target, and we, we are in the very advanced, the stage of customer validation, and, hopefully customer will be finished, the, the qualification, everything, by end of this year, and hopefully the Q next, next year, we will have a, the, the product shipments with it. And, and, those are the leading customers. And so far, the, the system we work with, that's pretty promising, I would say. Okay. Thank you. My third question is that, as we are now in the fourth quarter of this year, can you share the current USB4 penetration rate with us? And also, in the last earnings call, you shared that the USB4 penetration rate in 2024 will be double from this year. And are we seeing any changes in this number? Thank you. I think we can only talk about now Intel platform, right? So, yeah, we're shipping, yeah, quite some millions parts this year and with multiple OEMs and the primary with AMD systems. The next year, the 2024, we will have a more OEM using our system, and we're expand to other platforms, other than the AMD. We still stand by what we had declared. By the 2024, we should see at least doubled the unit shipment compared with 2023. Okay. Got it. Very clear, and thanks management for the detailed sharing. I'll be back to the queue. Thank you. Next one to ask questions is Al Lee from HSBC. Go ahead, please. Oh, hi, Jack and Yo-Ming. Thank you for taking my question. I want to ask about the third quarter gross margin, which went up, went down a bit. Is there any ongoing inventory digestion? And when do you expect to see healthier inventory levels for your display ICs? It is true that we are a lot of IC vendors linked to the downturn as we are. And, so the competition on the market is getting higher, especially if there are multiple vendor there. So it is kind of true that when you have a lower price, you can sell more, especially in the panel area. And, so those are the common parts, common platform. And, however, on the high speed side, our PS parts has less that kind of situation. So we have a little bit dip on the gross margin. I don't think that's really just because the product mix there. Hopefully we can keep those as we guide our gross margin there, and we continue to have a pretty healthy gross margin. Now is pretty dynamic. On one side, you get pressure from your customer, another side, you push your supply, your foundry, your backend as well, try to balance it out. That's, and in addition, you have a new product tend to be higher with the gross margin there. So you have to mix things together to meet our gross margin goal. Okay, thank you. My second question is regarding the OLED T-Con, and when do you expect to see further rising adoption rate in notebook or any other application that like tablet? Thank you. Well, we have developed the AMOLED already, and we think our customer will introduce to the market sometime soon. And we hope that will help us to increase the revenue and so on and so forth. And yeah, AMOLED is getting more traction in the notebook space. And however, because it's still expensive on the panel itself, so the adoption rate will subject to the price of panel and so on and so forth, right? So we think in the short term or in a couple years, the AMOLED still will be on the niche market type of thing. Maybe the leading client customer will use it, but we work very closely with the customer to develop the ASIC-based AMOLED solutions and for their high-end applications. I hope I answered your questions, but that's the current situation. Yeah, depends on who the customer likes and the price point, what he would like to AMOLED solution is expensive. Okay, thank you. That's very clear. One final question. Can you share the, s orry, what's the gross margin trend you expect for 2024? Thank you. Gross margin on the 2024 will remain similar to the 2023. We hope as the new advanced, the product come in and might help us to improve, but we have to wait to see. It's very much is a competition on the foundry side and yeah, competition in the customer side. So it's a pretty dynamic, I would think. A lot of not only depend on our device, how advanced will be also your supply, how much you're willing to reduce the price, right? So it's pretty dynamic, I would think. Okay, thank you. No further questions. Ladies and gentlemen, we are still in English Q&A session. If you would like to ask questions, please press star key and number one on your telephone keypad. Thank you. Next one, we have Bruno Chen from Allianz. Go ahead, please. Hi. Hi, Jack, can you hear me? Yes, go ahead. Okay. Thank you. My first question is regarding the pricing environment. I'm just wondering, is it fair to say that the overall pricing environment for our products are kind of stable for now? Or are you still seeing some kind of pricing pressure, is ongoing? I would think the large price environment is stable. In some pockets, especially on the panel side, you may see more price pressure on the source driver in those areas. But in the high-speed side or general other side, it's pretty, I think we will consider it as stable. And we always, as our business, we will see the price pressure from our customer, and it's subject to negotiation and that type of thing. But in general, I would think it is stable. Understood. And in terms of fourth quarter, do you expect to see any change in product mix, or is it quite similar to the third quarter? Well, certainly, I cannot say the Q4 exactly. That's where we're become within our, the gross margin range, but I only can say it's business as usual. It's very subject to the product mix. Understood. My last question is regarding the T-Con market. I'm curious about it. It's more like a long-term outlook for the T-Con market. As you can see, the penetration rate of Mini LED and Mini OLED T-Con could be limited to some kind of high-end segment. So, I'm just curious, when you look at T-Con market, the long-term market growth, is it driven by the upgrade in panel, or it's more like to be driven by the higher integration? For example, you integrate driver and touch into T-Con. That's my last question. Thank you. Yeah, I think that's a good question. I would think the high-end T-Con market for gaming or AMOLED, and those are the thing continue will grow, and we will continue to play aggressively in those market, and the gaming and AMOLED. In the more general market, integration is a way to distinguish others, and whether our TED device, whether our TT device, with our TSD integrated touch together, and those integrated device really make us stand out to provide innovative solution, and the customer like. In fact, the customer start to realize those integrated solution provide a lower cost, provide a lower power, and you get advantage on the ESG, because ESG now counting number of chips. So we start to see the benefit of our early bird to push in that area, and we hopefully those trends continue into 2024 and beyond. And yeah, the general market, you clearly see the trend, the massive markets are moved to the TED, TTD, and those areas as a starter. And we're glad in the Q1, the next year, we have multiple products, and with those kind of integration, we'll go to the mass production. And that actually is good because it's less competition, and we increase our content of a panel side, because touch now is additional in our offering there as an integrated solution. Got it. Very clear. Thank you. I'll go back to the queue. Next one to ask question, Seon Chu from Daiwa. Go ahead, please. Hi, Jay. Hi, thanks for taking my question again. My next question is that can you share with our view on the display market condition right now and also the competition landscape? Are we seeing, like, more severe competition leading to margin pressure? And also, for longer term, can you share with us the growth outlook? Thank you. The split market on the lower segment, you see the more competition, and what we play is go with integrated solution. But even recently, you on the Chromebook, the panel we consider is a low-end market. Because we provide TTD solution with T-Con source driver plus touch integrate together, OEM likes a lot because providing lower cost and simplify the whole structure. So those low-end, and while you compete, you have to find an innovative solution to go along with it. I'm positive for the display, the segment, because you on the high end, you would have the AMOLED, you would have the Mini LED type of display, as well as Micro LED display. We recently work with customer and to study to develop, and the panel customers to study and develop an early type of a protocol for Micro LED type of solutions. The display market is expanding and mainly very obvious into the automotive, especially EV automotive. Those are the expansion, the more they demand more panels, so we also push very hard to play those market as well. So overall, we are pretty positive for that. Of course, you have a competition there, that always you will have a competition, and to win the competition, you have to be innovative. You have to be putting your R&D dollar to go along with and be patient to win the customers. Got it. So for our next question, are seeing geopolitical risk affecting our customer business right now, and or even not right now, and we're seeing like that our future business? Yeah, it's a little bit broken. Could you repeat your question one more time? I'm sorry for that. It's all right. I'm talking about the geopolitical risk that affecting our customer business right now, or even not right now, and are we seeing like any potential risk to our future business? I still missed your question. Maybe the operator, do you, can you hear clearly what was the question? I can repeat it again. I'm sorry. Yes. I'm not sure. We would like you to repeat your question one more time. Sorry, because from my end, your signal is kind of breaking up a little, just a little. Okay. So, okay. Actually, I'm asking about the geopolitical risk. Is that affecting you? Oh, okay. Yeah, geopolitical risk. Okay, that's a good question. Yeah, we, in some time geopolitical become our pretty high priority to address. We have the most sensitive automotive customer, and they push us very hard to move the assembly, to move the foundry to outside China, and in some extreme case, outside Taiwan. We also see the PC customer want us to relocate the foundry to other place. And, yeah, we're working with them to provide a realistic plan. And the good thing for the PC customer, most of our chip during the pandemic, we achieved the multi-foundry supply, so we can move along relatively easily. But for the automotive, it is a challenge, and we are address it, and we work with customer to address it. But the geopolitical, as the current what we see, is becoming a challenge to IC providers, but we have to address it. We have to face it. That's what we are doing, and we work with our foundry, we work with the backend packaging house, testing house, trying to address our customer concern. Got it. Another question from me is that, could you please provide outlook of each product line into fourth quarter by giving a direction of each product line? Thank you. Yeah, I did not hear very well, so, so sorry for that. It's all right. Is that better? Yeah. My next question is that could you please provide the outlook or the direction of each product line into the fourth quarter? Oh, okay. Okay. It's a similar trend that our high-speed product line is continued charge up in the Q4, and we continue to see the request of deploying our high-speed product line. Display product gets better, I would think, especially for the high-end product. And, yeah, we see the our high-end customer start to more willing to take a pause. I think that's the main trend we observed. Got it. Thank you. Yes. Thank you, ladies and gentlemen. That concludes our English Q&A session. We will move on to the Chinese Q&A session now.中文提问时间现在开始，如果您需要提问，请在电话机按键上按米字键跟数字一。当我们读出您的名字之后，请开始发问。如果您需要取消您的发问，请按米字键跟数字二，谢谢。下一位提问的是 Jason, CLSA，请发问. 谢谢接受我的提问，那我的问题是……刚刚有提到说我们有看到比较高、比较大的那个市场竞争，那想能不能多了解这一块，就是我们是有、有、有看到更大的价格压力或是价格竞争，还是说我们有看到更大的这个市占的这个压力吗？谢谢. I think I just clarified this. I feel this price, this is still relatively considered relatively normal, OK, only in low-end panel segment, panel these aspects, in relatively low-end. There are relatively more, there are relatively more of price pressure. In general, I don't think there are too many of this -- I think it is still very normal, this environment. Overall, I don't think these low-end price pressure will change any market shares or your product's proportion or the like. Because -- because if on high speed side, actually we see our market share continuing to increase. This is probably what I want to clarify. I don't think price pressure will change market's shares or so on so forth. I think these price pressure is quite normal, and normal is on lower side, on higher side just less. 了解了解，谢谢。所以那我们的市占，因为，我记得，过去一两年我们有拿到一些，更多，更多的市占，那想请，请教说我们怎么看我们现在的市占在这个. 我觉得我们在 high speed side 的市占率应该在提高，我们 panel side 大概 stabilize，就在这样的一个 environment 下面，那这个大概是 overall 的我们的感觉. 了解。那我第二个问题是想请教我们车用的这个事业，想请问我们车用现在大概占比啊，以及毛利率跟公司的平均作为比较，或者有没有更好更多的有一些细节啊，或者是未来展望，谢谢. 车用的毛利率，这个会比我们的在PC啊，notebook上面的毛利率来得好，那就因为这些parts经过a lot of，很多的qualification，很多的要求，range要求也不一样。一般这个consumer use你的temporary range比较少一点，你的车用的，你要到-40 degrees Celsius，all the way到105 degrees Celsius，所以你的qualification是normal rigid。我们的车用有很多large volume，现在有一些不是，不是说large volume，这个是车的volume，volume不能跟PC比，但是我们一些特斯拉的，这些已经在车上，已经在外面，已经开卖的。最明显的，我想，这个well known的California的特斯拉的EV car，那用了有两颗我们的PS parts在里面。欧洲的特斯拉的，这个车厂也用了我们的touch chip，在它的display上面，这个车也是well known，well recognized。我们的high speed parts也在中国的EV car里面，有些well known的brand里面也在用。我们更多地看到，我们的一些，比如说我们刚announce的这个86 ICV，我们的parts刚回来这个multiple OEM就已经开始在这个做它的prototype的这个design，所以pretty encourage，我们pretty encourage。我们的high speed parts在韩国车上也在开始design. ...哦，了解，了解，谢谢。那我最后一个问题是想请问那个eDP的规格升级，就是可不可以给我们一些方向，像是eDP 1.4或者是eDP 2.0的这个solution回来，这个对于我们像是ASP啊，或者是毛利率，或者是新产品也发表一个，动能之类的，谢谢. 我们的 eDP 1.5 的 solution 已经开始 introduce 在市场上，那 OEM 已经开始在使用，那明年大概，明年就会有很多的 model 会有 eDP 1.5 的。那 so far 我们是在这个 eDP 1.5，在这个 stage 上面，那我们 continue 在 work 会是这个 VESA to speed up 这些 provide eDP 更多的 features，那这个还在 work 当中的 new spec。那我们这段 时间做了比较多的 development，就像我刚刚说的，我们 support OLED，support gaming，然后做 design 蛮多的，这个 integrate solution，TED，TTD，还有我们的 TSD 这一类的产品，那这些都 customer 都开始 recognize，也 customer 也比较喜爱这些 parts，那 hopefully，这个 这些 continue 会 help our revenue growth. 了解，那想 follow up，就是说这个动能提升主要来自于 ASP，还是说我们可以透过我们新的 eDP 1.5 的这些新产品去拿到更多的订单. Uh, both sides, I think both sides. Then, on the integrate solution side, our silicon content is increasing, right? This is because it's integrate, your content solution includes our touch inside, then once you design in, your stickiness is that you will always stay inside, this is relatively high, because it's very, very hard to have competition go compete with you, this same solution, this, this is just a bit harder, because you have relatively unique things over there. Then I think this, these primary new types of eDP or integrate solution, the T-Con itself is increasing, this ASP, but TTD this kind of integrate will help your market share. 好的，非常谢谢Jason的提问。那么由于时间的关系，我们目前在接受最后两位的提问。那目前提问的是Goldman Sachs，Bruce Lu，请发问. 嘿，Jack，你好，这个我还是想要 follow 一下我们上个 quarter 讨论的这个，retimer addressable market，这个 $200 million，这个，addressable market 的 算法 啊，这个，这个就是上次讨论完之后，这个，这个说要跟你的客人讨论一下，我们现在有没有一个比较，比较明确的算法，或者是说我知道这个有很多的假设，那到底有假设，哪个是比较重要的假设？那假设的 control factor 是什么？那这个到底自变量跟应变量要怎么样去算这个东西，我觉得还是要给我们比较多的细节好吗？谢谢? 这个最大的这个challenge是说，就像你说的这个假设这个问题，就是说有多少system是装1-8这种system，作为AR的type of这个，这个server，因为这种server就是一个server上面有8颗在里面，对吧？还是说你有. 就假设它是百分之百好了，就，就假设它是百分之百，全部都是一对八号，那应该怎么算? 那，大概比较容易去算，$200 million，对吧？比较容易去算 $200 million，因为你一颗 chip 大概，这个大概就比较容易算了。那实际上，我们并不清楚，就是说这个会 100% 的这个，在那边的. 没关系啊，所以我就说这个是一个自变量和应变量的概念嘛。就假设我们现在假设是50%，50% 1:8，50% 1:7 好了，这个是一个 very rough 的 function，那这个投资者可以自己去做自己的假设的前提嘛。但是比如说假设是50% 的 1:4，50% 的 1:8，那我们要怎么算? Yeah, 我觉得说这个，我们还是需要跟OEM去更多的时间work together去find out啦。那这个还是一个蛮dynamic的，这个过程。那还有一个算法，我相信这个，去look at这个，多少graphics card is bought，这个从这个角度去看look at. 对，但是比如说有多少的 graphics card 就可以有多少的 retimer 吗？是这样的概念吗? ...你的 PCIe Gen 5 mostly 在做在 AI 上面，大概 mos tly 都会需要 retimer 跟 redrivers，我说 PCIe Gen 5 这种 level 上面啊. 了解，了解，了解，但是因为我们比如说 Q4、Q1，我们其实有非常多的 AI 的 GPU 会去报嘛，不保证台积的 cowork 上类型，所以我们在今年 Q4、Q1 会看到板子上，这些客人的板子上会有这么多颗，就是一颗，一颗 AI GPU，配一颗的，你知道，你，你提我们的这个，这个概念. 我们还是比较. 所有的数量，对. 我们还是比较 focus 在 system 上面，不是 focus 在 graphics card 那一头了。所以这个，我们比较 focus 在 system 上面，那，呀，hopefully 的这个 SI，我刚才在说的，在 Q1 的时候，我们会有一些这些 shipment 的在那边的。那这个我是觉得，这个无论 是 $200 million 还是 $100 million，还有一个 subject to the demand，market demand change，这个有些时间，这个，market 在 downturn，data center 在 downturn，你当然是里面会 significantly reduce，那这个就是 subject to the timing as well，对吧? 这是，对，我就说这个是你的，这个是一个假设的问题嘛，就是说你的server需要出多少个system，这个是一个你倒是可以去发现嘛。那我的意思，我的问题只是说，假设server的shipment是1，那每一个都是一对四的，啊，就是假设server是100个，我们里面50%是一对四的GPU，50%是一对八的GPU，那这个都是AI server，都是用PCIe 5.0，这样的我们要怎么去算这个，叫什么? 要, 也许这个我们还没有. 对. 这个完全的一个 model，我们需要 continue 去 find out，我们这些 number 很多是我们的 OEM telling us. 对，那，那我换个角度，就是在 PCIe 4.0 的 时候，那个时候 probably 是 dominate 的 market share，就在一开始的时候是 dominate market share。那经过了两三年，其实这个 4.0 的 这个，你看到 market 也相对成熟了，这个 system 的 layout 也相对稳定。那现在再看这个 4.0 的 address market 是 多少? 我觉得4.0已经move on到5.0上面去了，这个data center这一部分change very fast. 所以 4.0 今年 会 非常 小 ， 你 的 意思 是 不 是? 对啊，4.0的现在的new design已经几乎没有了，都，都已经是5.0的，4.0只是在做一些shipment. 好，那我理解。那第二个问题还是问一下，就是说你第四季的guidance看起来终于YoY是正的了哦，但是你的第四季的revenue，就算是midpoint，比你的peak revenue可能还down了30几个%哦。你，就是说这个主要看起来还是这个，DisplayPort这边看起来还是营收比当初的peak revenue小很多哦。那你预计要大概花多长的时间可以回到你的这个peak revenue，因为这个离peak revenue看起来还有30%-40%的gap了，这种我想这个inventory collection比其他的cycle还长了一点，也重了一点哦，所以这个反弹的速度你觉得会是比较还是一样跟着market走一个L shape的，还是说你的market share gap还是新产品可以让你recovery稍微快一点. 那我是这样看的，2022或者2021 unit PC shipment跟2023年底大概有20%，2023年有20%的drop，是吧？这个it somewhat depends有一些customer，有些customer可能会到了30% drop，从peak到，到现在。那我们是一个player在PC segment上面，那我们大概躲不过这个overall的unit shipment的drop。那我们是说这个我们会follow up的这个unit shipment的growth，然后我们去gain market share或者penetrate to other market。我想这个是一个合理的解释，因为你的unit shipment这个，这是一个huge drop，是吧？这个我想大家都，大概已经有一个比较clear的recognition在那边了，是吧？It used to almost超过200 million以上的unit shipment，到现在2023年大概就170几，或者有些人大概170都不到。那我们在这个market上面，我们大概也躲不过这一部分，是吧？那我们现在看到的这个relatively compared with前几季，前几季的，那我们是觉得这个，客户或者我们的OEM是比较乐观的，这个前几季的时候，我们的OEM customer是，是. 是更加比较悲观一点，那我们还有我们的key customer，那他们还是没有，我想大家都已经被report过，这个可以read many analyst report在那边，大概都知道，这个situation，这个how much they dropped。那但是我是看到比较positive，因为他们刚announce new product，然后又这个lower the price，我觉得这些都将会变成一个momentum to generate这个continue的需求for the unit shipment，这个是我觉得是，是一个蛮重要的，这个momentum也actually会directly relate to our business. 啊，各位女士，各位先生，不好意思，由于时间的关系，我们现在接受最后一位提问。那最后提问的是 Fubon Securities 魏梦郭，请发问. Hi, Jack, Yo-Ming, 你们好，谢谢接受我的提问。我的第一个问题是，我想再 follow up AI PC 这一题。那我们在上一次 call 有提到说，硬件规格的升级，像是，面板的刷新率，或者是说，就是说长宽比是 6:10 的萤幕，就是说增加。那我想问的是说，我们可以分享一下，就是普瑞可以在每一台 AI PC 上面可以吃的那种 silicon 的 content，对比一般的 PC 可能可以有什么样的变化，比如说，就是说，content 上面的幅度可以增加多少？这是我第一个问题. 我想这个，你刚才说的第一个，这个display的长宽比，现在大概new trend都变成16:10了，对吧？从16:9换到16:10。那我们的solution for 16:10的，actually我们几乎所有的都可以support 16:10的这种，这种panel。那in terms of 这个AI的这个system，这个new momentum，我觉得最多的就是说，假如customer从PC上面或有装了一个新的这个OCuLink的这个interface，或PCIe Gen4、Gen5，去外面connect这些graphics card for AI accessory，AI的这个acceleration，那这些这些interface会增加我们的dollar content，这个会增加dollar content。那其他的，我们现在看到的这个AI acceleration的这个EP process demand even higher，这个，这个bandwidth，那这些是我们可以continue play的，所以大家也不会surprise to see 这个今后的这个像前面问到的USB，这个，这个Thunderbolt 5啊，USB5啊，这些会变成more common在这些，这个，这个AI的这个，这个machine上面，那PCIe Gen5啊，这些都会变成这些machine上面necessary的这个，这个components。那我们as well，我们现在的这个CES会看到multiple，这个AI这些，这个PC machine，我们大概有好几台，我们跟我们的顾客一起design的，都会在CES去展出来，这个是，这个是，这个是as much as I know. OK，好，谢谢 Jack。那么我的第二个问题是. 不好意思，Raymond，不好意思，因为由于现在时间的的关系，我们的中文问答就到此结束，不好意思. 好，谢谢，谢谢Jack，谢谢佑明，谢谢赵总. OK, thank you, thank you very much. 各位先生，非常. OK。 谢谢各位参与普瑞科技股份有限公司2023年第三季的法人说明会。今天会议到此结束，您现在可以离线了。谢谢您，再见。 Thank you！ Thank you.