Jeff Su: Okay. Randy, that’s a lot of questions. So, I’m going to take that as your second question, okay, basically. So, the first part of it is about the CapEx. He notes that, Wendell said, the rate of increase is beginning to level off. Randy’s question is for this year and take the midpoint, NT$30 billion is basically flat. So, is this just a temporary pause in the CapEx? And with 2-nanometer in the upcoming years, should we expect the dollar amount to go back up, that’s the first part.
Wendell Huang: Okay, Randy, the CapEx dollar amount every year, may vary. It depends on the different situation. The rate of increase definitely is slower than the past three years. If you look at, I think the other way of looking at that is the capital intensity. In the past three years, the highest point is 2021. It was over 50%, and then followed by 47% and 43%. And this year, if you do the math, it’s going to be mid-30s. We expect in the next several years, it will remain around mid-thirty percentage capital intensity.
Jeff Su: And then the other part of Randy’s question is on the geographic expansion. He notes a lot of reports saying, we may build a second fab in Japan and that we even may build a third. His question is really, are we redirecting our overseas expansion focus more to Japan or has it changed anything in the U.S.? Randy, I think that’s what you’re trying to ask, right?
Randy Abrams: Yes, that’s what I’m trying to ask.
Mark Liu: Can you repeat the question again?
Jeff Su: Randy is saying, look, he knows there is a lot of talk going to build a second fab in Japan, maybe three. He just wants to know, are we shifting our overseas expansion focus to Japan from the U.S. or is there any big significant change?
Mark Liu: No, no. I think, the second fab in Japan is in serious evaluation stage. We haven’t announced to the public yet and we are still discussing with the Japan government. Although they are very cooperative, so you might be waiting for that. But that technology will still be either 7 or 16, 12 technologies. And remember, the our Kaohsiung fab, the first fab used to be 28-nanometer or 7-nanometer. Now it’s becoming 2-nanometer. That is the shift, if there is a second fab in Japan, that’s our current plan.
Randy Abrams: That’s helpful. Quickly on 3-nanometer, because 5-nanometer was slightly-delayed. Would 3-nanometers still come two years after the new plan for 5-nanometer in Arizona? Thank you.
Jeff Su: In Arizona, Randy wants to know, that we have 5-nanometer in first half ’25. What’s the plan for the second fab with 3-nanometer?
Mark Liu: Yes. The second fab shale is under construction. But what technology in that shell is still in under discussion. I think that also has to do with how much incentives that fab, the U. S. Government can provide. And yes, there will be a gap. At least, current planning is ’27 or ’28, that will be time frame. To be honest, most of the fab in overseas, what actually be loaded, what technology is being set up, really, it’s a decision of customers’ demand in that area at that timing. So, nothing is definitive, but we are trying to optimize value for the overseas fab for TSMC.
Jeff Su: Thank you, Chairman. Thank you, Randy. In the interest of time, we will take the next two from the floor. I think there is one here first Laura Chen from Citibank.
Laura Chen: I think we got a lot of discussion about the leading position in the most advanced node. So, I just have a question about, what’s your view on the mature node dynamic. In particularly, we are seeing that globally, considered geopolitical tension, so we are seeing that the fab over the place in the world, so do you see that, in the longer term, any concern on industry wise overcapacity? So, what’s TSMC’s strategy? And also, what’s your view on your mature nose profitability as well? That’s my first part.
Jeff Su: Okay. Thank you, Laura. So, Laura’s first question is on mature node strategy and profitability. She notes with the geopolitical dynamics that there’s a lot of capacity being built on the mature nodes, so her question is, do we see or expect an industry wide oversupply? And probably more importantly, what is the impact to TSMC’s mature node strategy and profitability?
C. C. Wei: I think your observation is right. There might be too much of a capacity being built right now for mature nodes. So, the concern on overcapacity is valid. Now let’s talk about TSMC. As I said, TSMC increased the mature node capacity for specialty technology differentiated with others. We work with customer and that kind of capacity, actually effective capacity as we name it, is with commitment from customers loading and for the future of business, because we offer the value for our customer to design their product. So, we believe that they can retain their products value even the capacity is flattered in the industry. And so long as our customer is doing well, TSMC is doing well. And so, the profitability, as I said in my statement, it will be around the corporate average, so we don’t have concern.
Mark Liu: We speak for TSMC, okay? It could be industry issues.
