Rolf Bulk: Yes, it does. And unrelated follow-up, it’s a follow-up to Laura’s question, actually. On SoIC, given that the technology is now being adopted more broadly, do you see beginning of interest of your smartphone customer base to also adopt the technology? Could you comment on the likely time line of adoption of SoIC in smartphones?
Jeff Su: Okay. So Rolf’s second question is basically going back to SoIC adoption. His question really is pretty straightforward. Do we see a time line or can we give a time line for adoption of SoIC by smartphone applications?
C. C. Wei: Well, let me answer the question. Just HPC product is the first one. HPC customer is the first one to adopt, that is a 3DIC or SoIC’s advanced packaging technology. And the other area, let’s wait, wait and see. I cannot make any comment. We are working on it. Okay?
Jeff Su: Okay, Rolf?
Rolf Bulk: Yes.
Operator: The last one to ask question, Mehdi Hosseini from SIG.
Mehdi Hosseini: Two from my end. You had a very nice upside to revenue expectation for the first half of ’24, but has kept the year-end unchanged. Is that a reflection of that slow recovery that you were highlighting? Or would you prefer to wait to have more visibility before updating 2024 target?
Jeff Su: Okay. So Mehdi’s first question is about our revenue outlook and guidance. His question is saying we have a nice upside to our revenue in the first half of this year, but we have kept the full year guidance in to grow low to mid-20s. So is that because we are more cautious on the second half? Or is it because we will see how things go? But I’m not sure if you mean by upside to the first half, Mehdi. You’re saying, of course, our first quarter, as C. C. said, was slightly ahead of our guidance in U.S. dollar term, but very minutely. But — yes?
Wendell Huang: Yes. Mehdi, our guidance for the quarterly profile did not change. We always said that quarter-over-quarter, there will be growth. And also, the full year guidance will stay the same. So I don’t think there is a so-called upside, as you just said.
Jeff Su: To the first half, yes.
Wendell Huang: Yes.
Mehdi Hosseini: Okay. And regarding the investment in U.S., especially for 2-nanometer, does that include advanced packaging? Or would advanced packaging be mostly concentrated in Taiwan region?
Jeff Su: Okay. So Mehdi’s second question is that, of course, that we have announced to build 3 fabs in the U.S., including 2-nanometer, given the strong AI-related demand. So his question is then what about the advanced packaging side, will we also build advanced packaging in Arizona? Or yes, what is our plan?
C. C. Wei: Well, let me answer this question. It is always customer’s decision for where the back-end service are done for their product. So in Arizona, we are happy to see that Amkor’s recent announcement to build an advanced packaging facility that’s very close to our AZ fab. Actually, we are working with Amkor and try to support all our customers in AZ and for their demand, for their need.
Jeff Su: Okay, Mehdi, does that address your second question?
Mehdi Hosseini: Yes.
Jeff Su: Okay. Great. All right. Everyone, this concludes our question-and-answer session. Again, we do apologize for the technical difficulties. If you have anything unclear or need to follow up, please contact TSMC’s IR, and we’ll be more than happy to help. Before we conclude today’s conference, please be advised that the replay of the conference will be accessible within 30 minutes from now, and the transcript will become available 24 hours from now, both of which are going to be available through TSMC’s website at www.tsmc.com. So thank you again for joining us today. We hope everyone continues to stay safe and healthy, and we hope to see you again next quarter. Goodbye, and have a good day.
