Jeff Su: Okay. So, Charles first question is on R&D. He wants to understand or actually more details in terms of the 20% approximately year-on-year increase. What is driving €“ or the R&D spending going to be focused on? Is it N3? Is it N2? Is it design enablement by specific breakdown?
C. C. Wei: Charles, let me answer your question. All your comments are correct. I mean that is because of a newer technology like N2, N1.4 and also a lot of new teams are more expensive than before. And actually, the technology complexity continued to increase exponentially. So, that’s why we spend much more R&D budget. We want to continue to be number one in the world. So, we continue to invest including the geometric shrinkage, including the new transistor architecture, including the design enablement and including buying the new equipment that all is.
Jeff Su: Okay. Charles, do you have a second question?
Charles Shi: Yes, I do. Maybe a second question, I want to ask about specialty technology. Obviously, you expect specialty technology to backfill your 7-nanometer fabs. I think this may be a more common knowledge inside the industry, but I recently spoke to some of your customers who are more on the analog mixed signal side. A lot of them are, I mean driving volumes more from 28-nanometer and above, and they could tell me that the benefit of going to 14-nanometer, 16-nanometer for 7-nanometer is there, but it’s not large as in the past, moving node-to-node. And at the same time, the cost is much higher, and I look at your technology roadmap, specialty technology roadmap, it does seems to me that the specialty technology platforms are not as broad at the 7-nanometer if I compare with the 28-nanometer and above.
I just want to get some insights from you. How do you think about the progression of specialty technology going forward, as it seems to me that it’s kind of slowing down a little bit more slowing a little bit down faster for the analog mixed signal customers? Thank you.
Jeff Su: Charles’ second question is on specialty technology. His observation is that the technology, specialty technology portfolio at 7-nanometer seems not as broad as prior nodes and that the €“ his question is, do we see the slowing scaling of analog and mixed signal areas in terms of the specialty technology development and moving down to lower nodes or more advanced nodes?
C. C. Wei: Charles, your observation is quite good. Actually, you are right. But then let me share with you a little bit more detail inside. Actually, you are right, for the analog portion or mixed signal portion, we do not need to really move into 7-nanometer or more ones now. But as time goes by, now is more and more computing functionality needed to be added into the product. Let me share with you that one thing like the WiFi, you need a really very high speed to move to the next generation and also the RF. For those kind of things, you need a very high-performance of the computing together with low-power consumption. It is important. And if you want to get the lower power consumption, the only the leading-edge node can give you that kind of opportunities, all the footprint stays the same.
Then if you want to have a higher functionality with a lower power consumption, that’s where you have to move into the 7-nanometer or more end node even with the analog product. Did that answer your question?
Charles Shi: Yes. So, I think this is about the reason that you feel so quite comfortable about 7-nanometer utilization will come back. You said it will mildly come back a little bit in €˜23, but you are still confident €˜24 and forward that the 7-nanometer will also be a very, very long-lasting node for you.
C. C. Wei: You are right.
Jeff Su: Okay.
Charles Shi: Alright. Thank you.
Jeff Su: Thank you, Charles. Operator, let’s move on to the last two participants.
Operator: Thank you. The next question is come from Brad Lin with Bank of America. And Brad, please go ahead.
