Timm Schulze-Melander: Okay. And maybe just if I can, one sort of much, much bigger picture long-term question. The last year or so has seen significant capacity expansion in more mature nodes among China based chip makers across a whole range of products. Just as you look out three, five years. How does that sort of influence the sort of strategic landscape and the amount of competition that you see or that you expect UMC to face? Thank you.
Jason Wang: Well, I mean we kind of touched that earlier. It’s a couple of things that we see that’s driving the landscape changes. One is we do see more capacity buildup expanding for geo-political reasons or for the reason the semiconductor industry has become so important. So people want to build up more capacity regionally. And so there are multiple reasons that drives the, the overall capacity buildup. And fundamentally, I mean we believe we need to stay competitive. So we’re working closely with our customer to build differentiations and to provide values to enhance our product portfolio. And the angle is we will strive to minimize the some of the commodities exposure in some of the selected market if those capacity build up.
And it could have affected the market, the end market with some of the commoditized products. And so we need to continue differentiate ourselves to minimize the exposure with that. If we look at this build up situation, if they are driven by the geopolitical tension that would in our view it impose not only this constraint, but it also presents some of the opportunity as a customer seeking alternative to support their sourcing objective. And for UMC, we are well positioned because our geographically diversified manufacturing sites, which allow us to work with the customers in navigate this geopolitical concurrence. We are only the few foundry that have fabs across Singapore, Japan, Taiwan and China and back with a comprehensive technology portfolio, not single, no, not limited technology offering, but very comprehensive technology portfolio.
And that could be bridging between fab, which actually is very beneficial to some the customer if they want to have, they want to have a fab flexibility, the cross fab flexibility. And each of our sites is equipped with a sizable capacity that can serve numerous market segments. And each our regional manufacturer site also being well established with a scale and complete ecosystem. And we can run very highly efficient local operations. And if you look at our, you look at longer-term, beside our strong manufacturing footprint in Asia now we also extend our capacity offering into Arizona. We saw the cooperation with the U.S. partner in 12 nanometer. That’s another testament that we’re expanding our technology offering as well. And so this will continue to further our competitiveness and to strengthen our customers supply chain resilience.
So I think we can bring value to customer and that’s how you compete. I think we are positioning ourselves to continue improve our market relevance, our market position, and hopefully the customer will see that and they recognize the value. Then we’ll stay competitive and to differentiate ourselves. I hope that give you a bit of context into in the bigger picture.
Operator: And thank you, ladies and gentlemen we thank you for all your questions. That concludes today’s Q&A session. And I’ll turn things over to UMC Head of IR, for closing remarks. Thank you.
Michael Lin: Thank you for attending UMC conference call today. We appreciate your questions. As always, if you have any additional follow up questions, please feel free to contact umc@irmc.com Have a nice day.
Operator: Thank you, ladies and gentlemen that concludes our conference for first quarter 2024. Thank you for your participation in UMC’s conference. There will be a webcast replay within 2 hours. Please visit www.umc.com under the investor’s event section. You may now disconnect. Thank you and good bye.
