Good afternoon, ladies and gentlemen. Thank you for joining us on Q1 2024 earnings call. I am Leah Peng, the Spokesperson of GlobalWafers, and our Chairperson, Doris Hsu, is with us today. Here's how today's call will unfold. Doris will start with executive comments, followed by my brief introduction, covering our perspective on the semiconductor industry, our Q1 performance, and addressing questions we have received from investors recently. The session will conclude with an open Q&A, during which Doris will provide answers. A quick reminder, please keep your audio on mute. To ensure a smooth and interactive session, we have established two methods for you to pose questions during this event, using the Slido feature for written questions and utilizing the Webex hand-raising function for live spoken inquiries. Throughout the meeting, you can input your questions using the Slido feature in Webex. Simply access Slido and type in your question. Our presenter will monitor Slido regularly to address your written questions. To ensure the effective use of time, we encourage you to type in your questions as the meeting starts. Towards the end of the meeting, we will open the floor for live voice questions. If you wish to speak directly, please use the Webex Raise Hand function to indicate your intention. Once you raise your hand, kindly be ready to accept the host invitation to unmute your microphone when prompted. This will allow you to verbally pose your question to the panel. Please be reminded to limit the questions to two at a time. This will allow us to accommodate as many inquiries as possible within the allotted time frame. Before we begin, I would like to remind you that today's discussion may contain forward-looking statements. Please be aware that these statements are subject to various risks and uncertainties, which could cause actual results to differ materially from our expectations. Please refer to the safe harbor notice in our presentation. Now, without further delay, I would like to pass the floor to our chairperson for the executive comments. Doris, please. Good afternoon, everyone. Thank you for joining GlobalWafers earnings call of Q1 2024. Leah Peng, GWC spokesperson, will guide us through the presentation and the frequently asked questions received recently. I will address the questions raised in the meeting today. First of all, let me share some comments on our overall financial results and update operational status. Please turn to page three, our financial highlights. In 2024 Q1, our revenue was TWD 15 billion, reflecting a decrease of 19% year-over-year. As you know, Q1 2023 was the all-time high revenue, revenue-wise, was the all-time high for GlobalWafers, whereas Q1 2024 is the low point of this revenue cycle. However, despite the challenges, in Q1 2024, we have witnessed steady monthly growth for two consecutive months since January, with double-digit growth. Let's move on to gross profit and operating income. Our gross profit margin for Q1 2024 was 34.3%, while our operating income margin was 26.3%. Page four, please. Let me share some update of net profit and EPS. Q1 2024, net profit margin was 23.4%, and our EPS stood at TWD 8.1 per share, primarily due to a decline in the valuation of Siltronic shares compared to the previous quarter and also the revenue drop. Prepayment. As of end of Q1 2024, our prepayment totaled TWD 35.03 billion, which is equivalent to $1.1 billion, decreasing by 0.8% compared to last quarter. The reduction in our prepayment balance reflects the ongoing LTA fulfillment by our customers, while GlobalWafers also maintain its commitment to honoring the LTAs by repaying accordingly. Despite customers prioritize depleting on-hand inventory, GlobalWafers has continued to receive prepayment in Q1. Additionally, as the industry gradually recovers, inventory levels normalize, and the demand for advanced wafers increase, we anticipate customers will resume signing new LTAs with prepayment to secure long-term supply of low carbon emission, high quality, and local supply wafers from GlobalWafers. Now, let's move to dividend. Here is the planned dividend payout. Today, in our today's board meeting, today, we also announced a dividend payment plan for the H2 of 2023, and resolved to distribute a cash dividend of 11 TWD per share, totaled TWD 8.7 billion throughout 2023. That means that in 2023, total dividend payout from GlobalWafers is as high as TWD 8.75 billion. The annual cash dividend is 19 TWD per share. The annual total dividend is 19 TWD per share. Both of these two numbers, the annual dividend payout amount, TWD 8.75 billion, and cash dividend, 19 TWD per share, total, 2023, both of these two are our record high. Page five, please. Let's look at, let's review some outlook of the on the macroeconomics and semiconductor industry. In April, the IMF again just raised its global GDP forecast slightly with the strong U.S. economy leading improvement in advanced economies, alongside a small decrease in developing economies. A soft landing from pandemic fallout continues to look more likely as growth remains resilient against inflation. But downside risk from trade politics and war still loom. IMF broadly described its growth outlook for the global economy as stable but slow. Global's consumer confidence and business activity remain below pre-pandemic levels, but showing positive trends, bolstering predictions for a rebound in semiconductor industry in 2024. The big catalyst for the semiconductor industry is undoubtedly AI. Although AI computing concept have existed for several decades already, the AI explosion is now being realized because high-performance computing semiconductor device have advanced enough to enable AI. Another significant contributor is memory, the fundamental components for processing and also storing vast amounts of data. In response to increasing demand driven by AI applications and memory devices, customers' inventory levels are projected to gradually normalize as they reabsorb existing stocks, coupled with a moderate improvement in fab utilization rates. Therefore, the H2 of this year is anticipated to outperform the H1. That's our view for the semiconductor industry. It is worth noting that these HPC, high-performance computing devices, are built on leading-edge 12-inch wafers, and GlobalWafers is strategically poised to allocate its capacity towards the market trend, capitalizing on the growing demand for advanced semiconductor. All of the expansions products are niche in encompassing 12-inch wafers, special wafers like SOI and Float Zone, and compound semiconductors. Yet, downside risks from trade politics and war still loom, including the pace of interest rate cuts, oil prices, and EV demand. Next, I would like to share some sustainability, sustainable solutions from GlobalWafers. GlobalWafers is committed to sustainability and proximity, leveraging its global presence to reduce carbon footprint and embrace green energy initiatives. This commitment is exemplified by plans to utilize 100% green electricity at its Danish site and Italian 12-inch expansion production line, and also its greenfield fab in the U.S., Texas. By prioritizing local sourcing, GlobalWafers minimizes transportation-related emissions, mitigates geopolitical risk, and enhances environmental sustainability. Next, I would like to update a little bit about the earthquake impact to GlobalWafers. Despite some pullers were stopped for examination in the 3 April 2024 earthquake in Taiwan, operations have swiftly resumed after inspection. This was facilitated by ample ingot inventory prepared in advance for unforeseen events, ensuring a smooth production transition and supply continuity. Leveraging our global presence, we conduct regular drills and refine our response procedures with reference to our Japanese sites, which are prone to earthquakes. Additionally, we swiftly shift the needed equipment parts from other overseas sites like Korea and other sites to Taiwan and repair the pullers rapidly. Coupled with the ingot inventory, the impact on Q2 shipments and revenue is minimum, although some April shipments have been rolled over to May and June due to intense aftershocks, which we just had several aftershocks yesterday. Please move to page seven. That's the last but not the least, I think that's a good improvement, good performance of GlobalWafers, which I want to share with everyone. GlobalWafers received its sixth c onsecutive top 5% ranking in the 2022 corporate governance evaluation among all listed companies, continuing its commitment to improving corporate governance and fulfill ESG responsibility. The above are my comments today, and Leah, please share more on the industry outlook and financial performance with everyone. Thank you. Thank you, Doris. GlobalWafers' unique strength lies in its unwavering commitment to utilizing 100% renewable energy in its operations. This dedication is showcased firstly at its sites in Denmark, Italy, and the flagship greenfield expansion in the U.S. Topsil, GlobalWafers' Danish facility, is poised to become the first semiconductor crystal manufacturing site to use its own installed 100% solar power in 2024. Similarly, its Italian site's new 12-inch wafer line, as well as the new fab in the U.S., plan to operate exclusively on renewable energy during the ramp-up phase. By prioritizing the use of renewable resources, GlobalWafers not only produces greener products, but also sets a standard for responsible manufacturing in the semiconductor sector. Moreover, with its global presence, GlobalWafers can offer customers products with lower carbon footprints, assisting them in establishing more sustainable supply chains that align with current international trends. Please move to page 10. Research indicates that the foundry segment will continue to grow to cater to the demand for generative AI, while the memory segment follows closely behind. This increased investment in 12-inch fab equipment underscores the need for enhanced capacity to meet the demands of emerging applications. By focusing its CapEx exclusively on advanced process, including 12-inch wafers, FC, SOI, and compound semiconductors, GlobalWafers positions itself well to meet the evolving demands of the market and demonstrates its dedication to staying at the forefront of technological innovation. Please turn to page 11. It shows that by 2027, semiconductor device maker capacity is expected to expand across multiple regions, including the U.S., Europe, Japan, South Korea, and Taiwan. GlobalWafers' strategic expansion plan aligns well with the growth trajectories of these regions, guaranteeing that its capacity build-up is in sync with the evolving need of downstream customers in each region. This approach ensures that GlobalWafers expands in the right places with the right products, positioning itself to effectively meet the increasing demand for AI and various advanced applications. Page 12, p lease allow me to briefly update our greenfield expansion. GlobalWafers' flagship factory, GWA, remains on schedule. The importance of adhering to this timeframe is underscored by the fact that our U.S. expansion was initiated later compared to our peers' projects. We feel confident that our U.S. expansion timing will be more favorable, affording customer qualification release and the mass production starts coinciding with 300 millimeter inventory rebalancing and the market recovery, which should be in full swing by H1 2025. However, we are keeping a vigilant watch on the market, and we'll adjust equipment deliveries as necessary. Construction-wise, the first tools will arrive in Q3 2024. Major steel erection is complete. The pilot ramp will be up, and we'll make customer samples in Q4 2024. It is worth noting that the construction team has passed the 1.2 million work hours with zero lost time accidents, making the GWA project one of the safest large-scale commercial projects in the U.S. Regarding the CHIPS Act status, GlobalWafers America has submitted a full application and is now in discussion with the CHIPS Program Office and the Department of Commerce to determine the target grant amount. We expect the CPO to announce the direct grant subsidy in Q2. Page 13 demonstrates GlobalWafers' superior fundraising capabilities. GlobalWafers secures low-cost funding for its expansions in various channels, mitigating the impact of interest rate fluctuations and facilitating sustained growth. In addition to these diversified financial measures, we also possess ample undrawn loan commitments as a buffer. Notably, in Q1 2024, GlobalWafers raised over $1 billion in low-interest funding through exchangeable units, corporate bond, and GDR, further strengthening its financial structure and enhancing the cash position. Here, I would like to illustrate the rationale of issuing GDR and the financial benefits it may bring. Typically, CapEx projects require a cash buffer of 20%-30% as per market conventions. GlobalWafers finances its capital expenditures through cash generated from operations and the bank borrowings. Our diversified financing options allow us to access low-cost capital, driving sustainable growth and bolstering our cash reserves for enhanced resilience. GDR, as a means of raising funds through equity issuance, provides an opportunity for GlobalWafers to adjust its operational scale appropriately. With our capital base standing at TWD 4.3 billion prior to GDR issuance, a figure that is relatively modest in comparison to our annual revenue of TWD 70 billion. We believe that issuing GDR allows us to fine-tune the company's operational scale, preventing excessive leverage. We received the GDR proceeds in 2 April 2024. Please allow me to simulate the financial ratios as if the proceeds were recognized in Q1 in the following indexes. First, current and quick ratio would have improved to around 200% from the current 130% level, improving our liquidity and flexibility. Second, our debt ratio will reduce to 58% from the current 65% to enhance our financial stability. Another important benefit the GDR brings is lowering our financing cost. Equity financing through GDR carries lower financing costs compared to debt financing, leading to savings in interest expenses and then reducing the overall cost of capital for GlobalWafers. For instance, if we sought to raise an e-equivalent amount through debt financing, approximately $40 million in interest expenses would be incurred based on a USD borrowing rate of 5.8%. Furthermore, depositing this GDR fund could yield $38 million in interest income, assuming a deposit rate of 5.5%. Please refer to our Q1 financial performance, on page 15. During this quarter, our revenue totaled TWD 15 billion, with our gross margin maintaining almost the same level as Q4 2023. Now it is 34.3%. Despite a slight increase in depreciation and power costs, our effective cost management in other areas has helped maintain the gross margin at a similar level to that of last quarter. Our operating income margin increased by 2.9%- 26.3% QoQ in Q4 2023, because in Q4 2023, we had one-off expenses for our exchangeable unit issuance. However, our net income dropped by 3.1%. The main reason is that we recognized the mark-to-market gain, valuation gains of Siltronic shares we hold in Q4 2023. But this quarter, this is partially offset by the exchangeable units that issued in this quarter. And our EPS has stood at 8.1 per share. Concurrently, with our ongoing expansion projects, our Q1 capital expenditures amounted to TWD 10 billion, while depreciation stood at TWD 1.9 billion. Let's move on to the balance sheet on page 19. In Q1 2024, our cash totaled TWD 35.7 billion. The increase was mainly due to the issuance of our various financial measures. If we look into other assets, an additional TWD 23.6 billion comprises deposit held for more than three months. Another TWD 11 billion represents the restricted cash. Therefore, when considering these cash-related assets, our total cash in Q1 2024 amounts to TWD 17 billion. Here, I would like to further elaborate the change in short-term and long-term loans. Our short-term loan decreased to TWD 37 billion in Q1 2024, while long-term loan nearly doubled to TWD 29 billion. The main reason for this change is the issuance of exchangeable unit and corporate bond. Okay, thank you, Leah. Before Leah's answer, some frequently asked question we received recently, let me make a correction that I earlier in this meeting said that our dividend payout 19 EPS 19 for total dividend payout throughout the whole 2023, and the payout amount TWD 8.75 billion was the all-time high of GlobalWafers, which is a mistake, is the third highest among GWC record. Our payout in 2019, 2020, both these two years was 25. That was the all-time high. Sorry for the mistake. It's the third highest in GWC, not the highest, not the all-time high. Sorry about that. Next, Leah, please answer the FAQ questions, please. Okay. Thank you, Doris. The first question: How do you forecast the overall supply and demand situation in the wafer market for the H2 of this year and the next year? Demand for the H2 will improve relative to H1 2024, but will be muted somewhat as a result of a build up in raw wafer inventory in most customers' houses, especially on small diameter products. The H2 market will be improved, but some sluggish sectors, like automotive and the industrial, will still have cloudy visibility, requiring wafer operations to be somewhat nimble for quick response and turn around for order attainment. With end customer demand improving, the remaining issue is raw wafer inventory levels. There has been improvement over time. In Q2 2023, the days of inventory is 24, but it has been improved to 20 days in the end of 2023. Those levels are still above the historic average of 15 days. For 2025, research forecasts that the customer run rates will continue to increase, thereby shrinking raw material wafer inventory levels and will drive a record in raw wafer shipments. The second question is, please share your view about the timing of the turnaround. We are seeing pockets of the turnaround already occurring, especially in memory, where slowdown initiated before logic and the power customers. The outlook of our customers for Q2 is showing most of the regions trending in QoQ growth, providing an indication that the worst may be behind us. The market is forecasting a strong YoY semiconductor revenue growth, averaging 16% for this year. Asian and US markets confirm a visible market recovery expected in the H2 2024, with memory and advanced logic sectors projected to grow. Europe is lagging somewhat with heavier exposure to automotive and industrial sectors. The third question is: What is the proportion of logic, memory, and power products in GlobalWafers' portfolio? Currently, the product distribution reflects a slight decrease in memory, comprising around one-fifth of the overall distribution. However, this sector is anticipated to rebound in the latter half of 2024, and notably in 2025. Logic components dominate this distribution with a majority share, constituting approximately half of the total. Power components occupy around one-fifth of our total distribution. The remaining portion is allocated to various other components, making up roughly one-tenth of the distribution. Next, please provide your outlook on how GlobalWafers maintains its profitability. The primary factors affecting our gross margin include expenses on unused capacity, depreciation, and power costs. Currently, we are in the low point of our revenue cycle. The impact of increasing expense on the unused capacities plays a crucial role in our gross profit. However, as the demand continues to recover, we anticipate that the effect will diminish accordingly. Depreciation is another contributor, particularly due to the ongoing expansion projects. However, government subsidy will help to reduce the cost of the assets, accordingly, reduces our high depreciation expense, thus improving our overall profitability. Escalating power costs and accompanying carbon tax present common challenges for manufacturers. To mitigate these challenges, we have implemented various efficiency improvement measures and are actively adopting renewable energy solutions. Moving forward, as the proportion of the advanced products in our portfolio increases, we anticipate that improved prices and profitability following the completion of our expansion plans. The next question is, the electricity rates in Taiwan has been increasing since April. How might this adjustment impact GlobalWafers? According to Taiwan's new electricity pricing mechanism, GWC's three manufacturing facilities in Taiwan are facing an approximately 14% increase in the electricity power cost, resulting in an estimated impact of TWD 100 million annually. Six, the AI-empowered applications have emerged as the primary driver in the semiconductor industry. Please advise on their influence on the semiconductor wafers? The wafer demand of high-performance components based on compute demand and each hardware requirement, including logic chips, memory chips, data storage chips, power semiconductor chips, optical transceivers, and other components. All of these require semiconductor wafers. Beyond logic and memory, we anticipate that there will be an increase in demand for other device types as well. For instance, power semiconductors will be in higher demand because generative AI servers consume higher amounts of energy. Another consideration is optical components, such as those used in communications, which are expected to transition to optical technologies over time. Next question is about EV. With some automakers delay or downsize their EV plans, please advise the automotive semiconductor outlooks and its implication on the compound semiconductors? Slowing EV market have an in effect on the semiconductor industry, but the momentum of EV conversion, coupled with the disruptive changes in the auto industry from sensor automation, keep the automotive semiconductor forecast rather healthy. And like in the non-EV vehicles, as EV manufacturers make their electric engines more integrated, the amount of compound semiconductor devices for the power electronics increase for each vehicle. The previous tight wafer supply has limited SiC application outside of automotive up to this point. With the new wafer supply capacity coming online, we expect that additional end-use potential to be unlocked as the supply limitations are alleviated, which will in turn lead to growing demand outside of automotive applications. For instance, SiC is increasingly utilized in renewable energy applications, such as solar inverters and wind turbines, where its high temperature tolerance and the lower power losses enhance overall system efficiency. Therefore, also EV subsidies may fluctuate. The broader adoption of SiC technology continues to drive advancements and innovation across various industries. The next question is that, with the significant drop in SiC prices, how does the decline impact GlobalWafers' compound strategy? With the recent decline in SiC market, GlobalWafers now has the opportunity to send samples to a broader range of potential customers. In the past, due to the tight production capacity, sample availability was limited. However, the current situation allow GlobalWafers to break through the previous constraints and explore new markets. By sending samples to more customers and leveraging surplus production capacity, GlobalWafers can attract potential new business and expand its customer base. Above is our response to the questions. Now, I would like to turn it over to Doris for the Q&A session. Please type in your questions in the chat panel, or ask questions verbally toward the end of the earnings call. When posing the questions during the Q&A session, kindly limit the questions to two at a time. This will ensure that we have ample time to address everyone's queries effectively. Thank you for your cooperation. Thank you, Leah. Yes, good afternoon, everyone, again. It's time for Q&A. Please, just, either raise your hand or write your email. We have already received some questions. Okay, from Mr. Lee. The question is that, "Will extended downturn in auto industrial affect CapEx pace and capacity ramp-up in the next one to two years?" I think auto business now, this year, is not as strong as the past two to three years. It was very strong in the past two to three years, but it is a little bit softer than the past two to three years. Industrial is a little bit weak as well. But I think, based on the analysis, the worldwide global macroeconomic analysis, the market will be picking up, and GDP will increase or improve, starting from H2 this year, and the overall semiconductor industry will be better. So we think that the market will be picking up, especially from, H2 this year, maybe a little bit mild. But, starting from 2025, we are expecting to see more, more positive, more solid, recovery, from 2025. So our plan is that, basically, we keep all of our expansion project on schedule. And, of course, we need customers' qualification, so the ramp-up schedule basically is same as what we explained. US is basically on schedule. Italy will be a little bit slower, and that was because, last year there were some delay due to, construction. So, everything on schedule, and that's our current plan. The next question is: "When can we expect margin to go back to 40%? What are the key factors for margins upwards, if any?" That's from Bruce. I think the margin will be back to 40% in the next several years, not now, for several reason. One is that the depreciation because of the expansion. So the next several years definitely will be the peak of our depreciation until that when we receive some government support or subsidy, that will be counted or will be categorized as the reduction of the our depreciation. So that will improve our overall depreciation. That will be very helpful for us to improve our margin. And another positive opportunity is that when the loading increase, I think, because we expand capacity, and we have LTAs for all of our new expansions. So that means that, as long as that the market back to normal, and as far as we know, our customers always honor the LTAs well. So I think when the LTAs are executed we will have very high utilization with a reasonable price, which at the very beginning, already designed in the high depreciation. So at that time, I think we will see our gross margin back to that time. And next opportunity for us is energy cost. Because as Leah and I explained several times already, that we are so committed to renewable energy net zero, and that will become not, it's not a cost. Actually, it's a competitiveness, it's our strength. So we believe that a low carbon emission product, very green product plus proximity, the local supply, I think we will be able to save some cost and get some premium price because of our low CO2 emission and also our short transportation. I think that will be the, that will be one of the differentiation, one of the factor how we differentiate our overall gross margin improvement. Okay, and next question I received is that: Siltronic has announced its decision to exit the six-inch wafer business. Will this decision have any impact on GlobalWafers? What's GlobalWafers' strategy regarding six-inch wafers? How have you gained extra market share and customers? Yes, we did see the announcement from Siltronic's communication. They communicated to customers to discontinue LE six-inch or below six-inch or below wafer production, and this will become effective in 2025. At the moment, there is no impact on the share assigned to the various suppliers right now. For now, no impact yet. But we expect that our customers because quite a lot of automotive customers, they still use six-inch wafer for some special automotive components, and it's not easy for automotive customers to re-qualify new change the design for current cars. So I think we expect that customers who do not plan to phase out their small diameter lines will redistribute their demand to already qualified vendors, including GWC. GWC is in the best conditions to offer 6-inch products manufactured in Taiwan, Malaysia, and also we have a China operation for a small diameter as well. These fabs are mainly focused on automotive applications, basically all almost qualified by most of the automotive customers, and these companies are capable. They are very capable to supply basically almost all the products. So we believe that we will have the very good opportunity to get the extra market share when Siltronic's new decision is effective. So that's our view. GWC, we will keep monitoring the market demand together with our customer in order to optimize the saturation of our footprint, our plants, with the aim to continue to offer very competitive commercial conditions in the long run. Yes, that's the question. Okay, next question is that: What is our guidance for revenue and margins in Q2 2024? Are you expecting any pricing pressure for LTAs? Yes, that's a good question. I think Q2, as we already reported in the past, in the last earnings call, I think we're expecting that our Q2 will be. Q1 supposed to be the low point of the whole, of this cycle, so Q2 will be slightly better than Q1. This is our current view, slightly better than Q1. Maybe very minimum, but I think we are seeing some, so far looks positive. The only uncertainty now is that we don't know the aftershocks, because we keep experiencing over 1,300 aftershocks since 3 April 2024. So, and yesterday, we just experienced two more aftershocks, which was magnitude 5.9. So, that's the only uncertainty. We don't know the status, and you know that, for crystal growing, if any aftershocks, maybe will delay one or two days or a little bit more. So, we don't know yet. That's the uncertainty. Otherwise, we have the orders on hand. We have okay production and our delay caused by April 3rd's earthquake basically already been well managed, so we should be able, i f no further big aftershock, I think we should be there, the impact to our revenue should be very minimal. That means that we can catch up all the production capacity loss in early April. So in Q2, we should be able to catch up the revenue. And so our view is that Q2 revenue should be, if no any unexpected issue, revenue should be slightly better than Q1. That's our view. And how about do we expect any pricing pressure for LTAs? Of course, we every customer, almost every LTA customers is facing some some challenges from the market. Some is high inventory. Some customers are facing soft demand. So we do our best to work together with our customer to adjust the shipment schedule, product content, but no price negotiation. That's still the planned price, because when we work together, it's a non-negotiable, so price is firm. Of course, customer try to ask us to support, and we do a lot. We have same as all we have been doing in the past so many years. We always care about customers' status, so we will do our best to provide all the flexibility, but that doesn't include price for now. So yes, that's current status. And next question is that: do we still expect fiscal year revenue to be flat this year? I think, as we said a little bit earlier, that our goal is, I think, our view is that we hope that our revenue will be flat as 2023. But right now, a lot of things are different from what we planned, what we forecasted earlier this year, for several points. Some are positive, for example, the currency, Japanese yen is weaker, and New Taiwan dollar is weaker. These are all positive, I mean, because our functional currencies is New Taiwan dollar. So if we count as New Taiwan dollar, those are positive thing to keep the revenue flat to last year. But also we are seeing some negative thing, including as what we said, that earthquake, that is one of the issue. And also, what's more critical is that unexpected issue that automotive and industrial demand is softer than our expectation, our forecast when we said last year. And also, it seems that the inventory reabsorption is slower than what we expected. We see, y eah, it's the trend is right. The inventory is decreasing, but the speed, the pace of the inventory decreasing seems not as good as what we expected earlier this year. So it's very hard to tell that if we still can keep this year's, t hat's still our goal, is to keep this year's revenue flat to last year. That's still our goal, but I would say that it's challenging, because some inventory situation is a little bit tougher, sticky, looks very sticky, very slow. But on the other hand, we have some positive thing as well. The positive thing is that it seems that memory's demand growth is stronger than our expectation. And AI-related advanced epi wafer demand is stronger than our expectation, and our new capacities on schedule release, especially epi wafer, capacity is released, coming online already. So I think we will have good opportunity to get more orders from wafering, from advanced wafer company, advanced epi wafer, and also we have good opportunity to get some extra memory, memory business. So some positive, positive highlights and also some concerns. So put together, we still set our goal for 2024 revenue goals, that our goal is to flat to 2023. That's our current status. Thank you. And next question is that: If you are given the opportunity to increase your allocation at a given customer by 50%, why would you not offer price concession to better load your facilities? Yes, of course, we will definitely take that into consideration. We will not just stick with the LTA price, so there are a lot of things we can do. So for LTA, LTA is one element, but at the same time, we will check that. For example, LTA price, maybe stick with the original price, but we offer very attractive price for the alpha. So that means that if your volume is higher, if you can give us more volume, if original LTA is only 20% share of the location, then we will stick with the 20% share at that price. But if you can give me another 20% share or 30% share, I can be very aggressive for the so-called spot order. That's how we work together. So don't take me wrong. We definitely will do whatever needed to increase our share and to load our facility. That's definitely a must-do for all of our sales heads. That's for sure. But the way we are going to work is not to lower the LTA price. That's not the way. We will keep the LTA price, but if you have more volume, we'll be more than happy to make it very aggressive. That's our strategy. Thank you very much for a very good question. And next question is that: Could you please share how do you see wafer demand, wafer demand used later to be made into HBMs? Will that demand change future, dynamics of DRAM memory industry? Thank you. Yes, thank you, Tim Fang. That's a very good question. HBM definitely is one of the key driving power for our growth in the H2, because memory companies' inventory situation and their inventory reabsorption situation is much stronger than others. And also, memory companies, the demand, especially for advanced memory, demand is very good. So, you know, for HBM, wafer demand is higher than ordinary DRAM. So we have already been qualified by HBM customer applications already. So, that's our key—one of the key, I think one of our big hope, how we can make 2024 revenue flat or slightly better than 10, 2023 for GlobalWafers with memory, the increase of memory revenue. This is very important. And I think for future, this definitely will change the memory DRAM memory industry because the demands have been growing so rapidly. So, design is different, and it's very advanced. The technology advancement of HBM and also AI demand is very strong. So the market share, the allocation of memory will be very different. HBM keep increasing, and HBM has newer and newer generation as well. So HBM will be as same as same as the advanced foundry business, advanced node and also high performance chips. Performance demand is so much stronger. So I believe that that will be a game changer for DRAM industry. Thank you. Next question. Okay, ladies and gentlemen, the floor is now open for live questions. If you have any queries, simply using the Webex Raise Hand feature. Once acknowledged, please be ready to accept the host's invitation to unmute your microphone and share your thoughts with us. Oh, okay. The first one comes from Sunny Lee. Hi, Sunny. Hello. Can you hear me? Yes. Yes. Hello, good afternoon, Sunny. Yes. Hi, Doris. Leah. Thank you very much for taking my questions. So my first question is pretty simple. So everyone is trying to have best guess on your gross margin, especially into 2025 and 2026. So I wonder if you could provide us any guidance on depreciation, especially after you start to run the U.S. new fab? The depreciation. Chen Shu Hu. Okay, our forecast for the CapEx spend, spending schedule remains consistent with the previous earnings call. According to the current plan, our CapEx spending is projected to be 30% in 2023, 50% in 2024, and 15% in 2025, with the remaining 5% scheduled for 2026. Regarding depreciation, as of the end of Q1 2024, CapEx stood at TWD 10.4 billion, while depreciation amounted to nearly TWD 1.8 billion. We foresee that the depreciation in 2024 is likely to range between TWD 9 billion-10 billion, with an expected annual increase thereafter. Yeah, this is my answer, Sunny. Thank you. Got it. I see. So, in Q1, you only recognized depreciation at about TWD 1.8 billion. So for the full year, TWD 9-10 billion will imply for the coming few quarters, depreciation will likely increase quite a bit. Yes, that's correct. Yes. That's correct. Got it. Thank you very much. That's very helpful. And so a follow-up on gross margin. I understand the U.S. subsidy is still to be released, hopefully in Q2. That's correct. But the CHIPS Act has a framework on the subsidy should not exceed 5%-15% of the total investment for the fabs. And so based on that framework, based on your financial planning, with the subsidy, with the U.S. expansion, the margin be in line with your corporate average, or before the depreciation start to roll off, there would still be a few years that the margin could be under a bit of pressure? Yes, you are right, Sunny. I think CHIPS Act, based on American rules, CHIPS Act is somewhere around 5%-15%, according to their policy, 5%-15% of the total investment, total CapEx. But in the US, actually, there are several, some other support, not only CHIPS Act, but also, some other like, Advanced Manufacturing, Investment Credit, AMIC. That is, or some media say the ITC, actually, they're talking about the same thing, and that is another 25%. So that would be very helpful as well. Of course, we are still waiting for the final confirmation with, w e're still negotiating, working, communicating with CPO, their CHIPS Act project office. We're still working with them, so we hope that we will have a good support. And if we have a result, I think we will, according to our understanding, I think we should be able to start receiving the financial grants from the U.S. government. There is not too many years, so we should be able to get the support. Not very, because it's too early for me to really specifically say that, when, which quarter of which year, but we know that it will not be very long. So, once we receive that, we will recognize on our revenue as the deduction of the depreciation. So yeah, that's the current status. I think, as I shared with all shareholders, that we are expecting to receive a much clearer picture or even a final decision of the CHIPS Act by end of Q2, and that's still the plan. So I hope that we will have more detail to share with everyone. Once we have the clear information from CHIPS Act office, we will immediately share a news, and also, if needed, we will accept the calls to answer more question about that. But today, we have very limited information to share, for CHIPS Act related details. No problem. Thank you very much. Thank you, Sunny. Thank you. The next question comes from Willie. I want to confirm, did you mean that the performance of the silicon wafer market in the H2 of this year will be better than that of the H1 of the year, or that GWC's H2 of the year will be better than the H1 of the year, or both? Both, I think my answer is both. The whole market, H2 2024, for the whole market, H2 2024 semiconductor market, H2 will be better than H1 this year, and also GlobalWafers, H2 will be better than H1. That's for both. Okay, thank you. Then next questions comes from Gary Chen. Hello. Thank you for the presentations. Could you provide an update on the customer inventory situation? Have they managed to reduce their on-hand inventories? Thank you. Thank you, Gary. Thanks for your question. Based on GlobalWafers, our team. We have our sales team always reach out to customer. We're very close with customer to figure out their inventory status. So based on our team's observations and investigation, the customer's days of inventory shows a decline, but pretty mild. In confirming based on their DOI trend, I think it confirmed that the action taken by our customers to bring the stock back in a healthy region. But also, it's slower than expected process, as I just answered a bit earlier. So it's coming, it's the it's declining. It's a little bit slower than what we expected end of last year, but it's improving now. Yes, and also, I think attributable to the introduction of Windows 12 and the support of some generative AI through Microsoft's Copilot and other capabilities, as well as Chinese companies are spearheading the development of 5.5G and 6G technologies. Resurgence in PC and smartphones are likely to happen because COVID was starting from 2019. So 2019, 2012, 2020, there were a lot of new phone sales and new notebook, and now those tools have already been used for five years, six years, and now the new smartphones and new notebook are equipped with AI functions, equipped with AI capabilities. So we believe that it's very likely that these new function new AI phones, AI notebook, it's very likely that the phones and notebook will be replaced again, and we will see some big increase on the demand of PC or smartphone-related applications. So based on this reason, we believe that the inventory will back to healthy region. It won't take too long to reach that region. That's our observation. Thank you very much for your question. Okay, ladies and gentlemen, we would like to express our sincere appreciation to all of you for your valuable participation today. The earnings call concludes now. Thank you, and have a wonderful evening. Thank you very much. Thank you. Have a very good day. Thank you. Bye-bye. Bye.