活動_南亞科2408_3Q26法說逐字稿_20261012

校正紀錄

本檔為自行錄音的 AI 語音轉寫（whisper），落地前做了兩輪轉寫互補與下列處理；財務數字一律以簡報畫面為準，逐字稿內數字可能誤聽，未逐句改字。

• 轉寫方式：第一輪整段轉寫（主體）；第一輪有 7 處約 30 秒整窗漏轉，以第二輪「60 秒分段獨立轉寫」同時段內容補入，行尾標 ⟨補⟩。
• 已刪除：77:49–78:13、83:39 之後的模型重複幻覺行（「Oh, this is the question.」「Yeah.」「we」連續重複）；59:02 與 69:03 兩處重複輸出改為說明行。
• 59:02 JPM Jay Kwon 追問「30K（2028 年底）／50K（2030）新產能是否多數用於伺服器／AI」的答覆兩輪皆未轉出，僅辨識到「the server application AI infrastructure」片段，原意待重播確認。
• 常見誤聽（逐字稿保留原樣，請以此表理解）：Nanyang／Nania／Nanyard／9 yard → Nanya；NANI technology／NTC → 南亞科；FATC → 福懋科（Formosa Advanced Technologies）；Pindong → 屏東（Ping Tung）；BitShrieman／fisherman／freshmen → bit shipment；FED／fat → fab；LTE（指合約時）→ LTA；Peacemaker → Piecemakers（補丁科）；DUM → DRAM；R-DM → RDIMM；Global Wafer → GlobalWafers（環球晶）；Kyusha NSK Hines → Kioxia 與 SK hynix；Niantropics → Anthropic；Capital Security／Huanan Security／KGI Security 為群益／華南／凱基。
• 數字誤聽（以簡報為準）：營收 113.6 → 133.6（NT$133,649M）；Q2 毛利 82.6 → 65.6；SG&A 增加 1.9 → 0.9（NT$0.9B）；「up by high 10%」→ 2026 bit shipment 目標 high-teens% YoY；新廠產出「second half of 2027」→ 簡報為 Q4'27；「35.9k waiver stock」→ 35.9K WSPM；CapEx「1.6 billion／16 billion NT dollars」→ 講者自行更正為 US$16 billion（單座新廠、50K、含 EUV）。
• 簡報自身不一致：Cash Flows 頁表格營業現金流 96,017，右側瀑布圖標 96,107；以期初 217,603＋96,017−20,783−4,330＝288,507 回推，表格 96,017 正確。

已驗證圖片清單

錄製時擷取的簡報畫面，已裁去 Webex 介面；逐張檢視為真資料圖。

簡報重點（畫面 OCR，原文）

Q3'26 Financial Results Summary（NT$M，EPS／BVPS 為 NT$）

註：Q3'26 EPS 以加權平均流通股數 3,450M 計；BVPS 以 3,450M 股計。

Q3'26 vs Q2'26 Remarks：ASP increased >60%（Note1）；Bit shipment decreased mid-single digit%；FX favorable low-single digit%；Gross profit increased NT$48.9B mainly due to higher ASP；R&D expense increased NT$1.9B、SG&A expense increased NT$0.9B（Note2）；Operating expense 7,588（5.7%）vs 4,793（5.8%）。Note1：Q3'26 ASP increases primarily reflect renewed long-term agreements；Note2：Expenses increased mainly due to concurrent and future employee compensation。

Cash Flows（NT$M）：Q3'26 期初 217,603、營業活動 96,017、資本支出 -20,783、籌資及其他 -4,330、期末 288,507、FCF 75,234；Q2'26 期初 86,281、營業 55,859、資本支出 -4,046、籌資及其他 79,509、期末 217,603、FCF 51,813。註：(1) 現金股利發放 NT$4.6B；處分 Piecemakers 持股收入 NT$0.5B。(2) Q3'26 淨現金 NT$270.1B＝現金 288.5B − 長期負債 18.4B；Q2'26 淨現金 NT$199.2B。

CAPEX & Bit Shipment：CAPEX 2023／2024／2025 為 NT$13.2B／16.1B／13.4B，2026E ~69.7B（Q1~Q3 已 27.6B）；Y2026E CAPEX up to NT$69.7B，WFE 約占 50%；New Fab 5A 1st Phase CAPEX NT$346.6B for 35.9K WSPM in Y2026~Y2029（2026-08-05 董事會通過）。Bit shipment YoY：2023 Down mid-single%、2024 Flat、2025 Up fifties%、2026E Up high-teens%；Low inventory level。

DRAM Market Outlook（Q4'26）：Market—AI computation（GPU, TPU, CPU & ASIC）dominate DRAM demand growth；Memory supply to smartphones, PCs and general consumers suppressed；Suppliers' long-term capacity planned based on LTA commitments。Supply—New fab construction, equipment delivery and process-node introduction all require longer lead time；LTAs enable efficient product and capacity planning, supporting market stability；Lean supply-side inventory。Demand—AI driven：expanding AI applications drive memory demand for higher-content, higher-bandwidth and customized architectures；AI drives DRAM demand beyond HBM and LPDDR5 across networking, storage and system management；General：supply shortage and higher ASP resulted in down-spec and extended life cycles；recycled DRAM partially supports low-end market。

Financial Summary & Outlook：Q3'26 net profit NT$87.6B、EPS NT$25.4；GM 85.7%、NM 65.6%；Q1'26~Q3'26 net profit NT$163.9B、EPS NT$49.28（以加權平均流通股數 3,325M 計）；Shipment stay flat until new fab wafer output Q4'27；Operational results sustained by favorable ASP, may continue。

Operation Update & Outlook：AI infrastructure and servers contribute >20% of revenue；Flat shipment until new fab wafer output Q4'27；New fab equipment move-in Q1'27, ramp to 30K WSPM by end of 2028, target up to 50K WSPM by 2030；3D wafer packaging & testing fab, planned in Ping Tung Science Park；1C CS Q1'27, 1D/1E/EUV development on track；broad portfolio incl. DDR5, LPDDR5/5X, DDR4, LPDDR4/4X, DDR3, LPDDR3；Support customized AI/WoW products and AI infrastructure solutions。Note：new fabs planned generally aligned with future AI projects under LTAs。

逐字稿（英文，時間為錄音起算；正式會議約 30:00 開始）

[29:45] Thank you. [30:03] Mr. Lee, we are now ready to start the meeting. [30:08] Well, first, let's start the meeting. Thank you. [30:12] Well, we can start the meeting. [30:14] 5 4 3 2 1 [30:15] 4 3 2 1 ⟨補⟩ [30:44] Today's conference will be held only in English for investors around the world. Today's conference will be approximately 16 minutes. Nanyang Technologies President Dr. Pei-in Lee will summarize our operations in the third quarter of 2026, followed by Dow guidance for next quarter and key messages. [31:03] Then Nanyang Technologies Executive Vice President Dr. Lin Chin-soo, Senior Vice President Mr. Joseph Wu, and Financial Executive Philip Rao will join us as we open our question and answer sessions. [31:17] Today's presentation materials are available to download at Nanyang Technologies website at www.nanyang.com. [31:25] As usual, we would like to remind everyone that today's discussions may contain forward-looking statements that are subject to significant risk and uncertainties, which could cause actual results to differ materially from those contained in the forward-looking statements. [31:42] Please refer to the safe upper notice that appears in our presentation slides. [31:46] I will now turn the call over to Nanyang Technologies President Dr. Pei-in Lee for the summary of operations and the current quarter guidance. Dr. Lee, please begin. [31:58] Ladies and gentlemen, welcome to Nanyang Technologies Q3 2026 Investor Conference. [32:07] Today, I'd like to present to you our Q3 Revenue and Results, followed by CapEx and BitShipment, then Market Outlook, and then conclude by Business Review and Outlook. [32:31] First of all, for Q3 Revenue and Results. [32:37] Our Q3 Net Sale comes to $113.6 billion versus Q2 $82.5 billion is Q2 Q2 increase of 61.9%. [32:58] And Growth Profit, $114.6 billion versus Q2 $82.6 billion is Q2 increase of 74.9%. [33:12] Operating income, $106.8 billion at 80% versus Q2 60.8 improvement of 75.7%. [33:28] And EBITDA of $113.6 billion is Q2 increase of 75.9% and EBITDA of $110.6 billion. [33:32] Long operating income at $2.4 billion. [33:36] And we pay income tax for around $21.7 billion. [33:42] This comes to Q3 $113.6 billion. [33:43] This comes to net income for Q3 $87.6 billion at net income rate, net margin rate of 65.6% versus Q2 is an improvement of 74.6%. [34:03] Earning per share for Q3 comes to $25.4 per share compared to Q2 at $14.66 per share. [34:17] Our book value at Q3 $118.99 per share versus Q2 $93.45 per share. [34:32] For comparison, our Q2Q comparison revenue Q2Q up by 61.9% and year-to-year up by 611.7%. [34:46] ASP increased by greater than 60% Q2Q and year-to-year greater than 500%. [34:58] Our shipment decreased by mid-single digit due to depreciation in inventory and exchange rate favorable by low single digit. [35:10] A little bit more detailed explanation for Q2Q results. [35:11] A little bit more detailed explanation for Q2 and Q3 results comparison. [35:20] The net income, $133.6 billion versus $82.5 billion increased by 61.9% mostly due to ASP increase by more than 60%. [35:40] If you look down to the bottom notes, you'll find that ASP increase is primarily reflect renewed long-term agreement. [35:51] And the big shipment decreased by single digit as it sprang its depleted inventory. [35:58] And the exchange rate favorable by the low single digit. [36:03] For gross profit, $114.4 billion at gross margin of 85.7% compared to Q2. [36:16] Q2 is an improvement of $48.9 billion due to higher ASP. [36:27] For operating expense, $7.588 billion versus Q2, $4.793 billion. [36:37] This R&D expense increased by $1.9 billion and SG&A expense increased by $1.9 billion. [36:46] And for the note, most of this increase is mainly due to concurrent and future employee compensation. [36:58] For operating income, $106.89 billion versus Q2, $60.8 billion. [37:09] Margin wise increased by 6.3%. [37:13] And operating income increased by $46.1 billion. [37:18] For operating expense, on the left-hand side, [37:19] Net income, $87.6 billion versus Q2 of $50.1 billion. The net income increased by $37.4 billion. ⟨補⟩ [37:32] and the income tax also increased by $9.6 billion. ⟨補⟩ [37:45] For operating expense, on the left-hand side of this chart, ⟨補⟩ [37:47] the SG&A expense, for Q3, it comes to $2.443 billion versus Q2, $1.5 billion and Q1, $1.09 billion. [38:03] A substantial increase, mainly due to concurrent and future employee compensation. [38:12] And on the right-hand side, R&D expense, also increased from the beginning of the year, $2.1 billion to Q2, $3.2 billion and to Q3 at $5.145 billion. [38:28] This is again, increased, mainly due to concurrent and future employee compensation. [38:35] For cash flow situation, our Q3 beginning balance at $217.6 billion and the end balance at $288.5 billion with fee cash flow of $75.2 billion. [38:39] For cash flow situation, our Q3 beginning balance at $217.6 billion NT dollars and the end balance at $288.5 billion NT dollars. ⟨補⟩ [39:02] And during this quarter, the cash flow of $2.2 billion and the end balance at $2.3 billion. [39:07] And during this quarter, the cash flow of operating activity, $96 billion and capital expenditure, $20.7 billion and with financial activity, $4.3 billion. [39:19] And cash, in Q3, the cash activity, $4.3 billion mainly due to dividend payout at $4.6 billion. [39:34] And we have dividend income also due to Peacemaker stake sale. [39:41] And if you look at the right-hand side, we have a beginning balance of the $217 billion and balance $288 billion. [39:56] This is including all the cash from operating activity, capital expenditure and financial activity, etc. [40:08] For net cash situation, Q3, our net cash, which is at the bottom notes, comes to $270 billion. [40:18] This is the cash minus debt, okay, cash of $288 minus debt of $18.5 billion. [40:28] Okay, at least compared to Q2, our net cash is $199.2 billion. [40:35] This is an improvement of around $70 billion in net cash. [40:42] Our CAPEX and BitShrieman report here on the left-hand side. [40:55] Our CAPEX for this year is targeted for $69.7 billion. [41:02] So far, Q1 to Q3 CAPEX was $27.6 billion. [41:09] And this is the timeframe of starting to move in equipment for new FED. [41:16] So this year is targeted for $69.7 billion, [41:21] with wafer CAPEX accountable for around 50% of this amount. [41:27] And our new FED CAPEX will be $346 billion for $35.9k waiver stock per month. [41:42] And currently, inventory level is low. [41:46] So BitShrieman likely to stay flat from now on for a few quarters. [41:52] And for 2026 Fisherman year-to-year comparison is about up by high 10%. [42:05] For market outlook. [42:14] The overall market, the AI computation, that's including GPU, TPU, CPU, ASIC dominate the deal and demand growth. [42:25] The memory supply to smartphone, PC, and general consumer was suppressed. [42:34] And suppliers' long-term capacity plan based on LTA commitments. [42:40] From the supply side, the new FED construction, equipment delivery, and process-node introduction all require longer lead time. [42:52] LTA enables efficient product and capacity planning supporting future market stability. [43:01] And currently, we're seeing lean supply side inventory. [43:06] From a demand point of view, AI-driven. [43:10] Expanding AI applications are driving the memory demand for higher content, for higher bandwidth, and customized architectures. [43:22] AI drives DRAM demand beyond HBM and low-power DDR5 across networking, storage, and system management. [43:36] For general application, the supply shortage and higher ASP have resulted in down specification and extended life cycles. [43:49] And also, recycled DRAM partially support low-end market. [43:56] For business review and outlook. [44:03] For Nanya, our Q3 net profit, $87.6 billion NT dollars at EPS of $25.4 dollars. [44:18] Per share. [44:19] And our gross margin at 85.7 percent. [44:22] And net margin at 65.6 percent. [44:31] And our Q1 to Q3 net profit comes to $163.9 billion NT dollars. [44:39] With EPS accumulated to $49.28 dollars per share for nine months. [44:48] And our shipment may stay flat until new fab without output at second half of 2027. [44:58] And our operational results likely to be sustainable by favorable ASP may continue. [45:08] For operational update and outlook. [45:15] AI infrastructure and server contribute to 90% more than 20% of our revenue. [45:25] And freshmen until new fab wafer output in second half of 2027. [45:32] Our new fab equipment is scheduled for moving Q1 27. [45:39] We plan to rent up to 30k by the end of 2028 and target up to 50k by the end of 2030. [45:51] And generally, the new fab plant and 18-inch equipment is aligned with future AI projects under LTA. [46:04] 3D wafer packaging and test fab is printed for Pindong Science Park. [46:11] And our 1C customer sampling is targeted for Q1 next year. [46:19] Our 1D fourth generation and 1E fifth generation self-developed process technology and EUV development are on track. [46:32] We continue to provide a broad product portfolio including DDR5, low-power DDR5, DDR4, low-power DDR4, and DDR3, low-power DDR3. [46:46] And also, we will support customized AI wafer to wafer bonding product for AI infrastructure solutions. [47:01] That concludes my report to you. [47:04] Now, we may move to question and answer. [47:07] Thank you. [47:09] Yes, thank you, Dr. Lee. [47:11] Now, we are moving into the Q&A session. [47:14] We will begin taking questions from dial-in participants and followed by text questions from webcast. [47:21] For webcast participants, please message your question with your name and company name to non-your operator in chat box. [47:28] Now, for dial-in participants, please press star 1 on your keypad if you would like to ask questions. [47:34] To cancel your question, please press star 2. [47:38] And as a reminder to help avoid potential audio echo effects, please ensure you are not on speakerphone mode and stay muted whenever you are not speaking. Thank you. [47:48] Also, please limit your questions to two at a time to allow all participants an opportunity to ask questions. [47:55] Thank you for your cooperation. [47:57] Now, the first question will be coming from Charlie Chan, Morgan Stanley. [48:03] Go ahead, please. [48:04] Since we're taking my question, and again, a very strong result. [48:11] So, I think I have two questions. [48:15] First question is a very, very strong PDR for dementia, right? [48:23] So, I'm wondering if, you know, customers, customers like, for example, CSP or NVIDIA, [48:33] does the reach out for a more supply kind of security. [48:40] And also, I think it was a news report, right, talking about Apple may also come here to use the company that low power TDR products. [48:50] So, if anyone wants to get a sense about, you know, the kind of high profile customers you engage with, man. [48:57] Okay, that is my first question. Thank you. [49:03] At this point, the DDR4 demands here are quite strong. [49:09] So, it could take more than 10% of the overall market demand. [49:14] And in comparison, NVIDIA, overall market size is in low single digit. [49:21] Okay. So, DDR4 demand is quite strong. [49:24] However, NVIDIA is flexible on adjusting our DDR4, low power DDR4, with DDR5 and other products we have. [49:36] Okay. That's including our AI, uh, RTRO YIO. [49:41] Okay. And your comment about Apple, uh, potentially using, uh, competitor's DRAM. [49:49] Uh, for Apple, we don't, we don't supply their major DRAM. [49:55] Okay. However, we may have supplied their, their modem DRAM. [50:01] Okay. And those is a specialty DRAM that, uh, we don't think that the other supplier are providing, uh, those, those supply to Apple. Okay. [50:13] Okay. I think that would be for a very, very clear answers. [50:18] And my second question is, uh, uh, actually about, you know, kind of, um, uh, wafer-on-wafer, uh, kind of, uh, technology. [50:31] Because when I see, uh, Qualcomm, right, they kind of, uh, recently promote a lot of their high bandwidth compute, right? [50:43] And I think, uh, there's, uh, uh, one way to resolve the, uh, bandwidth issue or HBM, uh, supply issue for some AI accelerators. [50:55] So I'm not sure, uh, if there's a kind of, uh, uh, uh, potential or increasing partnership, uh, with Qualcomm or, not, not just Qualcomm, right? [51:04] But any kind of, uh, uh, uh, progress or the, uh, uh, kind of, uh, wafer-on-wafer, um, uh, uh, for the AI applications? [51:14] Okay. Uh, uh, Charlie, I cannot comment on specific customer, uh, solution. [51:23] Okay. Uh, this like mostly this is the customers, uh, confidential, uh, and market trade secret. [51:29] Okay. Uh, we have, uh, more than one customer working with us. [51:35] Okay. On the AI related, uh, uh, uh, wafer to wafer bonding, three AIC projects. [51:43] Okay. And the application, uh, will likely to be, uh, span from, say, uh, cloud computation for AI as well as all the way to edge computation. [51:58] Okay. And physical AI as well. [52:02] Okay. Okay. So, so far, so good. [52:05] So far, it's so good. Yeah. We are, we already have some, uh, some revenue. [52:11] Okay. And not big, uh, and, uh, but, uh, the, the, is a important, uh, business for Nanya to work on. [52:21] Okay. Currently, even though the contribution is not big, we'll continue to, uh, engage with customer and support customer. [52:29] Gotcha. Thank you. And do you, uh, foresee the end of the DDR4, uh, price upcycle or is there any kind of a [52:41] kind of a, uh, uh, comparison or, uh, uh, comparison of order to gauge, uh, when, and how these, uh, DDR4 products like work will end? [52:51] Okay. Uh, DDR4 is, I say, the demand steer, still quite strong. Okay. Uh, so everything will, will depend on, uh, the mark, market ecosystem. [53:05] There are areas that, uh, high end, uh, they will, uh, continue with higher ASP. Okay. And there are area also, they have to balance in between, uh, down specification, uh, extension life cycle, uh, as well as, uh, some area even using, uh, recycle parts, et cetera. Okay. Uh, but overall speaking, uh, DDR4 is still, market is still reasonably healthy. [53:06] there are area that high end uh they will consider continue with higher sp okay and their area also ⟨補⟩ [53:16] they have to balance in between uh down specification uh extension life cycle uh as well as ⟨補⟩ [53:23] some area even using uh recycled parts etc okay uh but overall speaking uh ddr4 is still market ⟨補⟩ [53:33] is still reasonably healthy. And again, DDR4 is not the only science. ⟨補⟩ [53:34] And again, uh, DDR4 is not, uh, not as only supply. Uh, we are flexible to adjusting, uh, DDR4, uh, to DDR5 and other products as well. [53:52] Okay. Great. This is my question. Thank you. [53:56] Thank you. Next one, J. Kwon, J. P. Morgan. Go ahead, please. [54:02] Thank you, Dr. Lee, for taking my question, uh, and also congratulations on great results. [54:10] Uh, my first question is, uh, within your 60% or above ASP increase in last quarter, uh, can you quantify how much of the impact was from the renewed long-term agreements? [54:24] Uh, is this mainly, uh, uh, bi-annual repricing mechanism that you started reflecting or did it include also, uh, annual or other quarterly contracts? [54:38] Uh, I'm just trying to see if we can also expect a, uh, uh, another round of these type of, uh, renewed long-term, uh, agreement-related pricing, uh, hike into the next quarter in Q4. [54:52] Yeah. Thank you. [54:54] Uh, that's the mix of all those you mentioned, including renewal, renewal of one year or six months by LTA. [55:08] Okay. That was mostly negotiated in either, uh, first quarter or second quarter last year or third quarter last year. Okay. [55:20] Okay. And during those timeframe, the ASP was relatively low and NANIA has, uh, make our commitment to deliver. So we have fulfilled our application on all the delivery at the price we have agreed upon, uh, last year. Okay. [55:42] Okay. So that's the situation for Q3 where, uh, most of these, uh, this, uh, LTA, long-term LTA has expired. And on top of that, they are Q2 and Q3 quarterly update as well. [56:00] But I would say contribution is mostly due to those long-term agreement for those 60%. [56:08] Uh, just a small follow-up is, you said, um, large amount is, uh, from these renewed, uh, the pricing contract. [56:20] And can we say, uh, definitely like more than half, maybe even two-thirds or maybe 70% of, uh, [56:28] Uh, I, I cannot quantify precisely. Okay. I cannot quantify, I would say more than half. Yes. [56:35] Yeah. [56:36] More than half. Yeah. Uh, okay. Thank you. And just a one, uh, second question is, uh, about your summary, you just mentioned AI infrastructure and servers now over 20% of the revenue. [56:50] Uh, so does it include, uh, mainly DDR5, DDR4 for server customers and also for ESSD solution? Uh, does it have any low-power DRAM solution that you're selling for to server as well? [57:06] Uh, it's, uh, it's, it's a mix of everything. Okay. Uh, including DDR4, DDR5 and low-power DDR as well. Yeah. Uh, so that's, uh, that's including, uh, chips that are used for communication, uh, for storage, uh, and for management, uh, just system management, as well as enterprise SSD, uh, and also R-DM. [57:07] It's a mix of everything, including DDR4, DDR5, and low-power DDR as well. ⟨補⟩ [57:34] Uh, and also R-DM as well. [57:36] Uh, understood. And one small follow-up here is, um, because these customers are very, uh, longer-term order duration customer in our understanding. [57:50] Uh, so if you have any expectation about how big this segment could grow from currently over 20% to, it could even grow to like 25 or 30 or even higher number within the next 12 months. [58:06] Uh, if you could, uh, give us your high-level thoughts about the mixed direction, uh, that would be really great. Thank you. [58:14] Uh, we plan to increase that percentage, uh, 20, 27, 28, and 29. Okay. Uh, for our goal, our target is by, uh, 29 or 2030, uh, we can grow to 40 to 50%. [58:32] Oh, 40 to 50%. [58:36] By, by 29 or 2030. Yeah. [58:39] Uh, for all the- [58:41] Can I interpret, uh, sorry to interrupt. Can I interpret your message as your, uh, the firm's strong commitment to, uh, allocate increase in capacity, 30K by end of 28, and also 50K by end of a 20- [59:02] （此段轉錄失敗：模型重複輸出，原答覆未取得；可辨識片段為「the server application AI infrastructure」） [59:07] the server application AI infection ⟨補⟩ [59:24] Thank you very much, Dr. Li. Thank you. Thank you. If you would like to ask the question, ⟨補⟩ [59:31] you may press star 1 on your telephone keypad. Thank you. Next one, Simon Wu, Bank of America. ⟨補⟩ [59:32] on your telephone keypad. Thank you. Next one, Simon Wu, Bank of America. Go ahead, please. [59:40] Yeah, thank you very much. Dr. Lee, sorry for you may hear some background noise, but sorry for that, [59:45] but congrats on your great reason. Maybe very quickly for your long-term view, [59:51] you know, your ASP GDM price has been rising very notably up to Q3, but would you share your view, [60:00] maybe December quarter still some room to see the double digit increase and then maybe a consensus [60:08] indicates very stable or marginal distance increase for next year. Would you share your view? Thank you. [60:20] For December quarter, we expect that the market shortage will continue and [60:30] likely ASP may again improve [60:37] gradually over December quarter. As of next year, [60:45] the situation will depend on continuous shortage in each of different sectors. Okay, so it's important [60:54] to continue to observe the continuation of this sector application. For instance, for HBM, the negotiation [61:08] for next year is about to be completed. Okay, and depends on HBM, the ASP situation that will likely also [61:19] change the capacity arrangement distribution around different capacities. Knowing that the new capacity introduction [61:31] and the new construction and everything will take longer lead time. Okay, so next year is [61:38] it's kind of tough situation for the supplier to improve substantially in their output. Okay, so likely next year will remain tight as well. [61:55] Dr. Lee [61:58] Yeah, very good, Dr. Lee. Another quick check is DDR4 and the below, including the low power. [62:08] So do you believe still the demand, the volume, will grow or use that maybe a little bit declining trend of the big growth? [62:20] Dr. Lee [62:22] Thank you. [62:23] Likely, DDR4 and low power DDR4 collectively in terms of the demand size will continue to [62:33] get smaller. Okay, likely will get smaller. However, the remaining demand is still quite strong compared to [62:45] the supply. Okay, taking an example. Last year, 2025, when the industry has started to end of life, [62:58] DDR4 and low power DDR4. At that point, the DDR4 and low power DDR4 combined in terms of demand wise, [63:09] still almost 30% of the market size. Okay, and that percentage, even though it's maybe coming down a little bit gradually, [63:20] okay, still a substantial number. As I described to you just now, 9 yards overall market share is low single digit. Okay, [63:32] okay, so that's the reason why we stay in supporting DDR4 and low power DDR4. Okay, and on top of that, I keep on mentioning that [63:45] 9 yard do have flexibility of move to DDR5 as well as other products, if the market were [63:53] demand size. Okay, so if I look into DDR4 and low power DDR4 market situation, just DDR4 alone today is probably [64:05] almost over 12% to 14% of the demand today. Okay, and that number, even though it may be slightly coming [64:14] down at the time, but still substantial big number for suppliers. Did you say low T, 12% to 14% of the demand? [64:26] Yeah, yeah. Yeah. Low T, that includes DDR3 or only DDR4? Just DDR4. I see. Oh, would you remind us your Q3 revenue mix, [64:39] maybe DDR5, including low power DDR5 and then DDR4? Our DDR5 remain around 10%. Okay, and we low power DDR4 and DDR4 combined, [65:00] contribute to likely around the, I would say [65:05] more than more than more than more than more than 60% of our product. Yeah. You mean the more than [65:17] 60% 60% 60% low power? Yeah, that that does not include the DDR3, right? That's not including DDR3. [65:26] Not included. Not included. Not included. Oh, okay. Okay. Oh, sorry. So one investor, [65:33] some investor asking any updates, payout ratio, because it's very profitable. So I know you have to spend [65:39] a lot of money for the new fact construction, but any rougher idea, the payout ratio? And yeah, I, I [65:46] finished my question. Thank you, sir. Okay. That's a dividend distribution you're talking about. Okay. [65:51] Yeah. Yeah, yeah, yeah. [65:53] [65:53] Give it a dividend. [65:56] Considering two factors. One is that we need to spend quite a bit of capax for future equipment, [66:07] procurement. Okay. That's capax could go up to 1.6 billion NT dollars, just up. I'm sorry, 16 billion NT [66:18] dollars, right? 16 billion NT dollars, 16 billion NT dollars, 16 billion US dollars, just, I'm sorry, [66:27] a little bit missing in the number, 16 billion US dollars just for one, one fat. Okay. So we need to [66:34] have a lot of capax upcoming. And also second, very importantly, Nanyahu has a consistent dividend [66:44] distribution policy before. So we will continue to pay out our dividend for next year. Okay. So we will [66:54] balance between these two factors, capax requirement and dividend policy, and we will balance in between. [67:04] Sorry for the number mixing for you. Yeah. [67:07] Yeah. Yeah. Very clear, sir. So did you say 16 billion for the one fat? [67:11] Yeah, 16 billion for one fat. That's including construction, including clean room, including equipment, [67:21] as well as some EUV for the future. [67:26] That means 35k as you pointed out. 16 billion is for 50k. [67:32] 50k. Oh, 50. Yeah. 50k. Yeah. [67:35] Yeah. Okay. Thank you so much, sir. I appreciate it. Thank you. [67:39] You're welcome, Simon. Thank you. Thank you. [67:44] If you would like to ask the question, please press star 1 on your telephone keypad. Thank you. [67:55] Okay. We thank you for your questions. Let's move on to the webcast questions. Dr. Li, please begin. [68:02] Okay. Okay. [68:13] Okay. They come up with the webcast question from Capital Security, Lian Chen. Okay. He has three questions. [68:26] First question. What is the CapEx financing plan, production timeline, and potential customer demand for new fat in Pindong? [68:39] Okay. Let me answer one by one first. Okay. [68:42] Okay. The question is a little long. Let me answer one by one first. Okay. [68:50] Okay. Our CapEx planning for Pindong fat is not finalized yet, but we need to go through the first fat of construction, then the equipment moving. [69:03] （此段第一輪轉錄失敗，第二輪補得內容見下一行 ⟨補⟩） [69:03] Likely, this will be totally up to $10 billion US dollars CapEx in the long run. ⟨補⟩ [69:11] Okay. ⟨補⟩ [69:12] and ⟨補⟩ [69:31] The next question is, how is mainly for wafer to wafer production? ⟨補⟩ [69:33] The next question is, how is mainly for wafer to wafer production? [69:44] How do NDC and FATC collaborate in back-end production? [69:50] FATC mostly in the wafer assembly and test. [69:56] This means that after wafer is finishing processing, finishing what we call wafer label testing. [70:04] And then FATC was started with grinding, dicing, packaging, assembly, and then testing. [70:16] This is more of the very back-end process. [70:21] It's not wafer label processing. [70:26] The wafer label processing will be mostly processed by NANI technology. [70:35] The question two is, could AI lead to a long-term structured DRAM shortage? [70:41] And what's your view on consumer demand? [70:45] And actually, I have answered some questions in my presentation. [70:50] AI has been leading to some structured change in DRAM industry. [70:57] And in the short term, of course, it's in shortage. [71:03] And in the near short term, of course, new capacity introduction, new equipment delivery is long lead time. [71:12] So, solution in the near short term is unlikely, especially in 2027 or early 2028. [71:20] Okay. [71:21] And what is your view on consumer demand? [71:27] Consumer side, the supply has been suppressed. [71:32] And consumer side, as I described, the high-end consumer will continue. [71:38] They will persist with higher costs. [71:41] And the low-end consumer may likely to down specification or extend lifecycle or even use recycled parts. [71:41] Okay. [71:52] Q3 from D-Chain is that can double-digit contract price growth be sustained with growth margin remaining at 80%? [72:12] You're talking about for the future. [72:13] Okay. [72:14] This is potentially possible. [72:17] Another question from Michael Shen, KGI Security. [72:27] Michael's first question is, [72:32] What is the current LTE coverage rate and proportion of contract with price, force, and ceiling? [72:42] Okay. [72:43] And how to keep customer from backing out if market turns? [72:49] Okay. [72:50] And the question is, for Nanyang, our current LTE is around 50% to 70% range. [72:59] Okay. [73:00] And the term is ranging from, say, quarterly to all the way to three years contract. [73:09] Okay. [73:10] And overall speaking, currently three-year contract, probably 20% of our output, more than 20% of our output. [73:19] And we plan to increasing this long-term contract according to customer demand. [73:28] And customer is very proactive in terms of getting longer-term supply. [73:37] So we are working with customer to extend our LTE to longer-term supply. [73:44] And there were discussion of the full price, sitting price for the upcoming new contract as well. [73:54] Okay. [73:55] And, of course, there will be some liability from both sides. [74:02] Okay. [74:03] From the supplier side, we will commit to our capex. [74:06] Okay. [74:07] We'll commit to our future capacity growth and equipment purchase. [74:14] And from a customer side, they will likely to commit to some degree. [74:20] Okay. [74:21] On their securement or secure of the long-term supply. [74:29] Okay. [74:33] Michael's second question is, can the potential supply demand gap be quantified based on DUM [74:42] silicon area requirement for AI chip? [74:46] Okay. [74:47] This is actually an excellent question. [74:50] Yeah. [74:51] I think it's a good idea. [74:55] And we have been doing that. [74:58] And based on the result from the analysis, likely DUM supply shortage will remain persist for a long time, [75:11] especially for AI application. [75:14] And the key indicator, key index that we have to pay attention to is the long-term, the AI investment. [75:26] Is it the return of those investment is sustainable? [75:31] Okay. [75:32] That's key question and key index to pay attention to. [75:39] Okay. [75:40] And such that if you look into the key investment from all UACSB providers, as well as the AI large language developer, [75:52] including Niantropics, OpenAI, and many others. [75:57] And also another regional AI development in mainland China. [75:57] Okay. [76:05] All these things combined, if the return of investment is making sense, then this is likely to continue. [76:18] This shortage is likely to continue for some time. [76:22] Okay. [76:23] [76:23] Next question is from Huanan Security by Yihua Lu. [76:39] Yihua has three questions. [76:42] Question one, what percentage of NTC shipment are wafers, package, and modules? [76:49] Okay. [76:50] We ship around 20% or so. [76:53] It's a high quality, what we call non-good die, high quality wafer that customer can take the wafer directly dice and apply it to their multi-chip package. [77:07] Okay. [77:08] That's around 20%. [77:10] The risk of 80% is either device or module. [77:14] Okay. [77:15] Which products are primarily required for private placement customers? [77:21] Okay. [77:22] That's already described in previous investor conference. [77:26] The product could include enterprise SSD, could include KB cache, or high bandwidth flash, and also include communication, switch, and management chip as well. [77:43] the recent share buyback by Kioxia and SK Hynix, does Nanya have any buyback plans okay ⟨補⟩ [77:44] Okay. [77:45] 5. [77:46] Yeah. [77:47] Okay. [77:48] Yeah. [77:49] Okay. [77:56] the answer is so far we don't have any buyback plan ⟨補⟩ [78:00] question three is how could GlobalWafers ⟨補⟩ [78:08] GlobalWafers is a company, a wafer supplier. ⟨補⟩ [78:13] [78:14] price increase impact 90 us cost and margin okay overall speaking we have multiple supplier [78:21] for wafers like including our sister company okay so overall speaking this wafer price increasing [78:34] is not the only topic overall speaking all the surprise side uh including equipment material [78:44] construction labors uh cost is also been increased okay uh not just okay and there will be some uh some [78:56] impact on the cost side but so is the asb of the dm as well so the balance between that for the [79:04] margin yen dot security from becky when uh becky has two questions question one with ai related revenue [79:21] accounting for over 20 what is q3 revenue breakdown across other application okay uh the other [79:30] application uh including uh our uh low power application uh for automotive for industrial uh as well as for [79:43] general consumer application uh all compute all together and uh also with the pc as well okay [79:52] but pc mostly using ddr5 [80:00] what is the growth outlook growth outlook for ai related business in late 26 and 27 so as i [80:09] described just now uh two other questions that nanya plan to increase our ai infrastructure business [80:19] from currently uh more than 20 percent to more than 40 percent or even 50 percent uh year by year [80:26] gradually uh by 2029 or 2020 2030 uh with the demand shipping from ddr4 to ddr5 what's the ddr4 outlook [80:41] supply demand dynamic and pricing for 2027 and i think i i have commented this question uh just now uh [80:49] uh over charlie's question as well as uh simon's question as well okay as i say ddr4 uh shipping to ddr5 is [81:01] gradually uh but so far ddr4 demand is still still quite big and uh surprise still quite in shortage okay uh [81:11] uh for certain sector of course pc sector they don't use ddr4 as much okay uh it's not representative for this [81:22] a common loan people ddr4 [81:29] uh the next question from isan security [81:33] by each change through two questions from him [81:37] uh question one [81:41] what is the company's current order fulfillment rate okay uh for the long-term order that we committed [81:49] to our fulfillment rate of course we will maintain 100 okay uh that's the commitment that's the [81:57] signed contract okay and of course uh there are many other uh uh uh uh inquiry uh for for waiver uh for [82:10] for what ddr4 supply and the fulfillment there usually is is is quite low okay [82:21] question two is what is the company's fish shipment growth guidance for 2027 [82:28] that's a interesting question and actually that is the embarrassing question for nanya we don't have much [82:35] big growth growth in the beginning of 2027 and plus we have a very depleted inventory so likely our [82:46] fishermen will remain flat for a few quarters until uh second half of 2027 [82:54] and thank you that's ends of all questions asked online [83:00] yes thank you dr lee and that concludes our conference call today please be advised that the [83:09] replay of the conference will be accessible within three hours from now which will be available through [83:14] nana technologies website at www.nana.com we hope you will join us again next quarter thank you for your [83:22] participation participation and have a wonderful day you may disconnect your line at this time thank you again [83:29] goodbye thank you goodbye