Laura Chen: That’s very helpful. Thank you. And also, my second question is back to AI related. As we know that a lot of investors care a lot about your advanced packaging progress, we also know that TSMC got a very good progress on 3D IC SoIC. So, can you share with us your progress development beyond CoWoS what’s your plan on the 3D IC and what’s the schedule and capacity you are aiming for in the next two, three years?
Jeff Su: Thank you, Laura. So, Laura’s second question is on advanced packaging. She notes again the strong demand for AI related applications, so advanced packaging, the progress, of course, CoWoS demand is very strong. Her question is really, I think, beyond CoWoS into true 3D IC or integration solutions such as SoIC. What is the progress that we see the engagement from customers, the capacity and basically the outlook for these segments of the business?
C. C. Wei: The demand actually is very strong. Today’s situation that we cannot offer enough capacity to support our customer. And that condition will continue probably all the way to next year. Although, we are working very hard to increase the capacity, for example, this year, we are doubling our output and still not enough, and so we continue to increase for the next year. The progress, so far so good because we invested on the advanced packaging technology for more than 10 years already. So, we expect the growth rate for CoWoS for 3D IC or for SoIC per se, it will be more than 50% CAGR in the next few years, at least. And so, we are confident that the demand is there. It’s TSMC’s capability to offer enough capacity to support our customer.
Laura Chen: For CoWoS, you will be doubling and what’s the idea about the next year? Do you have any preliminary thought?
C. C. Wei: I will talk to you next year.
Jeff Su: We have a question here from Brad Lin from Bank of America Merrill Lynch. I think in the interest of time, we’ll take one question sorry, from yourself, and then we’ll take one more from the line and then one more in person, if there’s any.
Brad Lin: Thank you, for taking my question. So, my question will be still around N3 and also IDM. So, as we understand, the demand is uncertain, but we can definitely increase our business certainty by gaining market share. So, do we expect, some more contribution or market share gain especially from IDM side or any more contribution from PC side? Maybe, well, by the end of the year or any time soon?
Jeff Su: Okay. So, Brad’s first question is about IDM outsourcing. I think, again, given the technology leadership that we have. He wants to know, do we expect more business or outsourcing from the IDM by the end of this year? And how do we see it? Or is it uncertain going forward?
C. C. Wei: That is too specific. You say the IDM outsourcing, I know whom you talk about, so I better not to make any comment. I state what I said, we take everything into consideration, we welcome the business, but we prepared our capacity expansion.
Brad Lin: Got it. Thank you, very much.
Jeff Su: Your second question?
Brad Lin: Yes. So, it’s on the advanced packaging. So, we know that the CoWoS S right now is a mainstream, so have the management seen the clients converting to either CoWoS R, CoWoS L? And then what’s the implication to revenue and margin profile?
Jeff Su: So, it’s also a very specific, too specific question. But again, Brad wants to know, CoWoS S seems to be the mainstream today to see customers switching to CoWoS L or CoWoS R and what’s the margin implication?
C. C. Wei: Well, let’s make a joke, I even didn’t know what is called CoWoS R, CoWoS L. But anyway, we are working with customer to support them with adequate capacity, although it’s not 100% now but we do our best. And we’re developing that next generation, CoWoS A or something like that for our customer, and it’s overwhelming that it welcomed by all my customers, so we are preparing the capacity for you.
Brad Lin: Got it. That’s the last one, but not the least, not the question.
Jeff Su: That’s 2 questions.
Brad Lin: No, not a question. So basically, I want to say, well thank you, Mark, for your leadership, contribution and endeavor for the past 30 years, not just for not just TSMC, but also for Taiwan. We wish you a happy retirement and also the new chapter of life. Thank you.
Jeff Su: We will take the final questions from the last two participants. Let’s go online first, then we have one final in-person, okay? Operator?
Operator: Next from the call is Krish Sankar from TD Cowen.
Krish Sankar: Thanks for taking my questions. I have two of them. First one, I think Wendell, you spoke about revenue growth for the year and again from gross margin guidance. I’m just trying to wonder how to think about gross margin for the full year in the context of the fact that, TSMC is going to grow in the low to mid-20%, how do you think about growth margin for full year 2024? And then I had a follow-up.
