C. C. Wei: Let me answer the last one first. AI application already adopting that our N3 technology node, we continue to improve our technology, as we always do. So we have an N3E, N3P, N3X, X is the actual performance that’s for very high speed, very high let me say, performance computing for some of the CPUs application. But N3Es are widely accepted by all my customer and the design starting from N3E, and we help them for some of them go to the N3P. So all together, every version, every variation, there’s a lot of customer engagement right now.
Jeff Su: Okay. Thank you, C.C.
Brett Simpson: And maybe just my second question for Mark. Mark, you were talking about the – building up the ecosystem in some of the overseas markets like the U.S., and you’re talking about skill shortage. But can you talk about what you think the like-for-like wafer cost difference is to operate in the U.S. versus Taiwan? I think your TSMC Founder talked previously about a 50% premium to operate in the U.S. Can you just quantify if that’s – if it’s likely to be that high. And then when would you expect the cash support from the U.S. Chips Act to be made available to TSMC? Thank you.
Jeff Su: Okay. So Brett, second question is for Chairman. He wants to know, in basically the cost gap, how big is the cost gap of fab in the U.S. versus in Taiwan. Founder has said 50% or more? Is it that high? And then concurrently, with the Chips Act, when or how and when do we expect to receive the incentives to support?
Mark Liu: Yes, Simpson. I think the Founder is right. I mean at this point, if we’re using the current supply chain and labor cost, indeed, as that differences. However, we try to work with the U.S. administration. First of all, on the subsidy, cash subsidy and tax – investment tax credit, that is to cover the gap in the first 5 years approximately. When the tool is depreciated, then the ecosystem becomes prominent. That is what is the material costs, chemical costs and the labor cost. And we are working with the – our supplier to set up some of the more efficient supply sites and to be lower, but the – and the U.S. administration has decided also to subsidize the supply – our suppliers. So that is still in the work. How much it can further decrease? I don’t know. But I think either way, we will strengthen our pricing values and be able to keep the corporate profitability as we forecasted now.
Jeff Su: Thank you, Chairman. Okay. Thank you, Brett.
Brett Simpson: Thank you.
Jeff Su: In the interest of time, operator, we’ll take questions from the last two participants in the queue, please.
Operator: Yes. Next one to ask question, Mehdi Hosseini from SIG.
Mehdi Hosseini: Yes. Thanks for taking my questions. I’m going to go back to the gross margin. And I think you highlighted the fact that for ’23, you’re still tracking to 53% gross margin on a USD basis. That would imply that Q4 could be flat to up. And I just want to better understand how it’s tracking. I’m not asking for a guide on Q4, but if 2023 gross margin is going to be 53% plus, so that would imply Q4 flat to up. Is that correct?
Jeff Su: All right, Mehdi. I think we’ll let Wendell answer this question. But Mehdi is asking basically, are we saying that 2023 will be 53% and higher?
Wendell Huang: Mehdi, we’re not giving our guidance beyond this third quarter. So we’re not saying what Jeff just said. What we’re saying is only some of the negative factors will affect the second half of the year. As to 53% and higher, that’s a long-term growth margin target for TSMC.
Jeff Su: Yes. We did not provide a guidance for 2023 specifically, Mehdi. As Wendell just said, 53% higher is our long-term target, which we believe is achievable. Do you have a second question?
