Jason Wang: Well, first of all, we are continuing to anticipate pressures from some of the 12-inch material that has impacted 8-inch supply chain. So we definitely need to address that. While certain mainstream applications will remain 8-inch, we also try to by expanding the technology of silicon carbide, gallium nitride, but they are still in a very early stage. Most of the silicon carbide today is at 6-inch. We are more focused on the 8-inch micro. And we can update more progress once that becomes more mature.
Gokul Hariharan: Okay, thank you. Thanks, gentlemen. Thank you.
Operator: Thank you. Next one Brett Wing [ph] Bank of America. Go ahead, please.
Unidentified Analyst: Thank you management for taking my question. I have two questions. One is on the silicon interposer or the advanced packaging. We have learned that the management is cautious or less active in expanding this part of the capacity. So we are on track to hit around 6K per month and no further expansion. Should we assume that? And then a follow-up on that is that we know that we are expanding the other wafer-to-wafer technology and other 3D solutions. So when should we expect this part of business to take off? Thank you.
Jason Wang: So first question is the interposer. Yes, we will maintain that 6K capacity and we continue saying that we’re at a stable run rate for 2024 and for the others some of the RFSOI applications, or we’ll be starting to use the wafer-to-wafer hyperbounding solutions, so they were ready for production in 2024 as well and so will gradually introduce some of the [Indiscernible] wafer-to-wafer stacking solutions and gradually increase that capacity as well.
Unidentified Analyst: Got it. Thank you very much. Glad to hear that. And then my second question will be on our node migration. We have learned good business on the 22 and 28 nanometer with the older driver IC and some products migrating to 22 and 28 from 40. And we would like to learn the outlook of 40 and the well utilization outlook. And what products can we expect to help fill the 40 nanometer capacity gap?
Jason Wang: 40 or 14?
Unidentified Analyst: 40.
Jason Wang: For the mature 12-inch the utilization rate for both 40 and 65 will remain flattish for the second half of 2024. And of course this still highly depends on the pace of the overall market recovery and we closely monitor that. At the same time there are applications still coming into the 40 nanometer such as the RFSOI and as well the non-volatile memory they are some of the new applications will come in adopting the 40 nanometer.
Unidentified Analyst: Got it. Thank you very much. Actually, I also wanted to add about 14, 14. So despite the limited capacity currently, there is still emerging business opportunities in the market. Does the firm plan to allocate more resources for the expansion on this 14?
Jason Wang: Our current focus on that is on 12 nanometer corporation with the U.S. ponders [ph] which the program is to kick off at the beginning of this year. And the focus is trying to making good product on the core development and which is on track and we’re also seeing a high-level of interest. And we see the numbers increase. At this moment, we are working with our customer to accelerate the RAM schedule for the 12 nanometer. Yes, I mean, the focus will be shifting to the 12 nanometer instead of 14.
Unidentified Analyst: Got it. Thank you very much Jason.
Jason Wang: Thank you.
Operator: Thank you. Next one, Bruce Lu Goldman Sachs. Go ahead, please.
Bruce Lu: Hi, thank you for taking my question. I want to ask about the Jason, your view about the [Indiscernible] right? If you look at your guidance, you’re guiding for a flat to slide out for the total revenue which is a sequential growth for your quarter revenues, like most like it’s flat, it just slides out every quarter for the next coming quarters. And your margin somehow flat for 30% if there is no more ASP erosion. So, which is — there is no recovery at all, for the industry. So it seems to me that this inventory correction cycle is a lot longer than expected. So when do you see the inventory correction will the restocked demand will start to kick in and provide some minimal help for your business?
Jason Wang: I mean, Bruce, first of all let’s talk about inventory. We have noticed the overall industry inventory level continue to improve. Specifically, we have seen inventory getting to a healthier level in the computing, consumer and commutation markets. However, we still observe our customer taking a more of a conservative approach in their inventory restocking behavior. In other words, we’re seeing more of a rush order instead the [Indiscernible] projection going forward. I think that mainly because the biggest concern is still at overall macro outlook, which could impact the market dynamics. The other two market segments for the inventory diversion for the industrial segment is still slower like I mentioned earlier. So, I think the market is prudent.
The customers are prudent about the market outlook. We do see the overall industry are recovering. And so, we do think the foundry industry will grow in the low teens percentage a year-over-year. However, most of the resources is more allocated to the AI server. So I think the AI server will be with more of a higher growth rate versus the rest of the market application. And since we have less exposure at the AI server, so I think our projection at this point is more conservative. However, we are optimistic about the inventory situation too.
Bruce Lu: So, you expect AI continue to be strong for next year you will continue to be muted? Is that the base assumption?
Jason Wang: Well, the other thing is we do foresee the auto and industrial segment. Inventory situation will become more healthier by the end of the year. So, I think all market segments within UMC addressable will become much healthier in terms of their inventory situation starting from 2025.
