Brad Lin: Hi. Happy New Year. Thank you for taking my question. I have two questions. One is on the globalization challenge and the other on the mature nodes. So, first of all, we know TSMC is excellent in managing the supply chain and the cluster in Taiwan. However, when we now expand Japan and U.S. footprint with the last of the cluster there, would management please share with us why the strategy is to maintain the strong efficiency and the excellence that TSMC has been delivering? Thank you.
Jeff Su: Okay. Brad’s first question is on our global footprint. He notes that TSMC has done a good job in terms of supply chain and cluster management. But as we go overseas to U.S. and Japan, how will we continue to ensure that we do a good job?
Mark Liu: Alright. Okay, let me answer. I think Wendell has answered this question earlier, let me summarize a little bit. TSMC is a service business, not in just pure production. The service depends on the trust from the customers. So, in the past, our trust and service depends on our technology leadership, manufacturing excellence and the lowest cost and quality. But recently, the geopolitical development is evolving just in front of us. That 100% in one place cannot suffice our customers’ needs. Therefore, we started the overall global footprint planning. Now of course, the cost will be higher. And I think our team has been focused on how do we do this at the same time, keep our minimum gross margin to be 53% and above. And that is the standard that we decide how the pace of our global expansion going to be, and there are other segments in terms of the space, of course.
The global expansion increased the value to our customers and the new geopolitical environment. And therefore, the pricing, how the customer can shoulder the increased cost in terms of pricing. And of course, the €“ geopolitically, the semiconductor in the U.S. and Japan are all new. So, I believe we are working hard on how to reduce the cost by building up the semiconductor supply ecosystem in U.S. and Japan. And I think indeed, both governments echo are €“ not just us, also rather other major companies to build a similar capacity in this place to reduce the costs. So, that is the general arrangement we are planning. There is no fixed rate. Of course, the government support will be another factor. And so that is, we are cautiously step-by-step to make sure our shareholders’ value still be kept.
Jeff Su: Thank you, Chairman. Brad, do you have a second question?
Brad Lin: Yes. Thank you very much for that juncture. So, my second question is on the three node. And there will be no mature node is investing and generates pretty good progress with TSMC technology leadership. So, while we are expanding overseas, what is the strategy for mature node in the long run, especially China expansion baked by €“ also by the government subsidies? And also R&D is quite valuable for TSMC. And should we continue to allocate the R&D to mature node when maintaining group pace in testing adds and advanced packaging? Thank you.
Jeff Su: Okay. So, Brad, second question, I think maybe to summarize this more on the mature nodes. So, he wants to better understand our strategy on the mature nodes. As we expand our manufacturing footprint and increase capacity outside of Taiwan, what is our strategy for mature nodes? Will we bring mature nodes overseas? What is the product status in China? How are we allocating R&D resources to mature nodes already specialty technology strategies, etcetera?
