So I don’t have a real number for in terms of capital intensity for this type of product, until we collect more data points and until this part of the business becomes a larger enough poor business that we can come up with the more meaningful real numbers for it. I think whatever we’re going to do is really, we will look at the demand, we will look at the technology that’s required or the equipment as required, and also the business terms that we can get so when we put the investment in, it will be suitable for the demand and also create a justifiable financial return for us.
Gokul Hariharan: Okay, got it. My second question is on the adoption of chiplets. We’ve seen a lot of that happen in the HPC side. Broadly, could you talk a little bit about how the chiplet adoption helps or changes ACE’s role, either adds to it or takes away something, but just how you think about it? And more specifically, do you see more chiplet-related packaging, potentially getting adopted even in the communication, the mobile smartphone segment, which is largely monolithic, right now, looking out maybe a couple of years in terms of what you see and have discussions with your key mobile customers?
Joseph Tung: I guess chiplet is certainly the technology that’s required for specialty for vessels and there’s physical boundaries that we need to break through the chiplet packaging, so it is a growing trend. And we will — at this point, we think it is still predominantly in the HPC area, or networking. When or how fast it will move into other areas, I think it will take some time for us to have a better grasp of this development.
Operator: Next question is from Bruce Lu of Goldman Sachs.
Bruce Lu: Hi, Joseph, I want to ask about the dividend. Given your EBITDA is so much stronger than the CapEx, can we expect higher dividend payout ratio moving forward or at least for this year? You’re paying $8, $7 for last two years, given the weakness of this year, but your cash flow is still very strong, so can we expect a higher payout ratio this year?
Joseph Tung: I think we have been paying 60% to 65% over the years and no. This is not for me to answer. I think this has to go through the Board and, given the circumstance, I think we will have a good discussion on how we address this issue.
Bruce Lu: I understand that just like if you’ve maintained the 60%, 70%, given that the earnings decline more than that, so we don’t want to see the dividends per share goes down much, just the investor feedback. And another question is —
Joseph Tung: Yeah, yeah, understand.
Bruce Lu: Another question was your testing, I mean, I think I do recall in early 2022 management turns more aggressive in testing, which generate pretty stronger growth and earnings. However if you look at from second, third quarter, your testing revenue for the quarter was substantially slower than your packaging business, at the same time, your peers in the testing business is doing pretty good with very impressive share price. So what kind of testing strategy can we expect? Do we expect some change for the testing? Do we turn more aggressive into testing? Do we get involved in the wafer level testing moving forward? What kind of strategy can we expect?
Joseph Tung: Well, we still have the same view on testing that we believe still has — it does have the potential for us. We want to maintain — remain aggressive in making tests. This is a larger part of overall. And we’re going to come back and revisit the overall situation and see how we can move further towards our target and to bring this part of the business up, what are the right business that we should we be pursuing? What kind of new technology that we should be investing in? That’s an ongoing process. I think the reason for kind of a slower growth pace in tests is because of the overall product shifting in this market at this point. So I think that’s one of the main reasons why we’re seeing some of the differences in the test business growth pattern between us and our competitor. But we’re going to look into this and we’re going to put our focus back on tests. We’ll continue to drive that business.
Operator: Next question is from Mr. Szeho Ng of China Renaissance.
Szeho Ng: Yeah, thanks for taking the question. Yeah. Regarding the interposer business, do you have any plan to get into the fabrication part of the business?
Joseph Tung: I’m sorry, I didn’t get your question.
Szeho Ng: Do you have any plan to build an interposer internally?
Joseph Tung: Interposer internally, I wish we could but, no, I don’t think we have any plans of doing that.
Szeho Ng: Because it doesn’t fit our DNA right, I think for interposer?
Joseph Tung: Doesn’t fit what?
Szeho Ng: I doesn’t fit our DNA, I mean, the business or the know-how?
Joseph Tung: I’m not sure this is really what our strength is and this is a way for a process and we’re assembly house, so I don’t see the real good fit in it.
Szeho Ng: Yes, it makes sense. Yeah. Okay. Thanks very much, Joseph.
Operator: Next question is from Mr. Charlie Chan – Morgan Stanley.
Joseph Tung: Hi, Charlie.
Charlie Chan: Hey, Joseph. Thanks for taking my question again. So I’m not trying to be picky but I’m very interested about your previous comments. You said usually in previous quarters, right, rush order only happen in a quarter end. But now we are at the beginning of the quarter, you still see rush orders coming in? Am I get anything wrong or is that a sign of kind of demand is actually better than expected? How do we read this? Thanks.
Joseph Tung: No, I’m saying the pattern seems to be remaining. That’s to say, by the end of the quarter, we could see some other rush orders coming in. I’ll simply trying to say that the quarter end rush older seems to be the pattern up until now, yes.
Charlie Chan: Okay. Okay. Thanks. So, another follow up question or two, if I may. One is the AI chip placed business right, in the middle of GPU or ASIC, right, inside your computer, in testing business are gaining a lot of market share. I just wanted to know any fundamental reason behind that. And second, part of question is more about long term because as you can see data for maturing [Phonetic] foundry that’s a capacity expansion is happening in China. So just wondering if China in the long term would gain market share, whether that means that ASE in a big game foundry series will lose market share, because you probably — I’m not sure, right, but you probably sold your China operation couple of years ago.
Joseph Tung: Well, I think our China operation remained in Suzhou, which is under spill. It’s a bit different from — it’s quite different from the four factories that we sold two years ago. I think, the Suzhou factory today is more advanced facility than the four that we sold and it does suggest the growing demand in China, particularly when things are — the whole industry is kind of polarizing at this point, where China demand remains into China and the outside of China posted outside. So I think the Suzhou being a more advanced, more efficient, more cost effective facility, I think it does – it is doing quite well actually in China, particularly in terms of serving the Chinese customers with higher-end technology requirements. So we are confident that in China we could be losing some revenue in terms of dollar per — in terms of business where we’re actually gaining better quality business in China. [Multiple Speakers]
Charlie Chan: The testing, for the GPU and ASIC, yes?
Joseph Tung: Other than congratulating, our competitor is doing a very good job in securing that type of business. Well, we have some catch up to do and we will do so.
Charlie Chan: Okay. Okay. Good to know. Thank you.
Operator: [Operator Instructions] There is no more questions.
Joseph Tung: Okay. Thank you all for coming. Sorry for my low voice because I caught a cold. But you know, thank you again for joining us and we’ll see you next quarter.
