So that’s pretty much on a higher level, your question relates to in terms the pricing, like I mentioned earlier, we respect the market dynamics and we will stay competitive in supporting our customer to be competitive. And right now, we have discussed and continue aligning with our customer usually on an annual basis as a one-off pricing alignment. And we’ll continue with that practice and with the understanding of the market outlook, and for that. And that will be a different pricing position in turn different technology notes, like you said, for 28. And we are remaining resilience, and a mid to near term market volatility as well as a forward-looking product pipeline. And so, we feel rather comfortable about the confidence about our 28 nanometers for the mature 12-inch outlook.
We will transition into more specialty technology for our mature 12-inch nodes, and where we foresee promising new opportunities, which coming into notebook and tap space such as RFSOI, nonvolatile memory, and high voltage. And we’d anticipate 55 nanometers and 40 nanometers will be a mainstream for RFSOI and MCU for a broader range of the market, including the wireless, automotive, and industrial application. So again, we will stay competitive and then we will align with the market dynamics and to support our customer in terms the commercial needs.
Gokul Hariharan : Could you also refresh your memory on roughly what is your LPA coverage now? I think it used to be about 30% to 40%, but looks like that’s blown up, given the new capacity that was coming.
Jason Wang: You’re talking about NPA or LTA?
Gokul Hariharan : Sorry. LTA.
Jason Wang: The LTA has been stay 30% flat. It’s about 25% to 30%. coverage. And we have been reporting many times in the past. The LPA still is a mechanism to support both customer and UMC on the longer-term perspective. And particularly given the recent market dynamics, and we both are examining our current LPA quality as well as the status on the LPAs. And because our customer continue to want to make sure they are supply resilience, and align with our inches of protecting our investment, so, many LPAs is being a review and we actually believe those LPA has a mutual commitment as a student So the 25%, 30% remain fairly resilient at this time.
Gokul Hariharan : Okay. One follow-up on the LPA are you seeing any price downward negotiations on any of your LPAs given that you mentioned that you are seeing some of the videos on the LPAs right now?
Jason Wang: During the downturn cycle, we definitely work with our customers and look at the market situation, and giving a change demand and supply dynamics. And we — but between the UMC and our customer remain confidence in the long-term objective. But in the short-term, we do have sound tactics and flexibility to make the customer and UMC collective to navigate through this market fluctuation. So yes, there are some flexibility in terms of that. With the long-term contractual obligation, even, they are still intact.
Gokul Hariharan : Understood. Thank you. One last question for me. How do you think about capacity expansion, given the downturn seems to be lasting a little bit longer than expected and you are running at 60% low P6 utilization, exiting the year? Do you have any thinking about pushing out some capacity expansion further, especially for some of the new capacities and of course importantly, so because, depreciation burden is also rising quite a bit going into next year?
Jason Wang: Absolutely. The for the P6, we are already in the process of ramping up. So partly to making adjustments on those. So, we anticipate our 12A/P6 monthly capacity will still reach to 12,000 per month by end of 2023. And you will reach its design capacity of 31,500 per month by September 2024, and that’s still there. And the for the P3 Singapore, we have deployed the cleanroom of construction. So, the cleanroom will still be ready by the first half of 2024. But however, we expect the P3 capacity rent starting time at April 2025 without change, and because we have aligned with some of the customer already. However, the REM profile will be moderated based on the market dynamics, which that has some adjustment to the rent profile.
Operator: Next one, Bruce Lu of Goldman Sachs. Go ahead, please, Bruce.
Bruce Lu: Hi, thank you for taking my question. And I want ask you about the outlook for 2024. I mean, based on my mechanical mathematics, you seems to be very comfortable for your P6 expansion with LPA remain on track. So which pieces of fixed work gives you 30,000 worth of a month capacity for next year, each wafer should be $3,000 to $3,500. Your multiple buy that you can easily get larger, 15% plus revenue growth. In addition, you should have some inventory restock for that. So that can easily give you like 15% plus revenue goes for 1299. [Indiscernible] So does that sound right? I mean, at least you can get the revenue goals from your it a contribution from P6, right?
Jason Wang: Yes. I mean, of course the revenue growth for 2024 will comp — it’s a composition between the volume and the ASP. So, for 2024, our early view for the next year, we will expect our loading and waiver shipment will increase year-over-year. And so that said, however, the — we have to look at quarterly outlook by quarterly. Given with Sandy, the current customer’s behavior are more cautious and conservative. So, we will provide quarterly outlook on quarterly basis. And so, in terms of actual what will be growth for the next year, we probably will probably give you a bit of a more clarity in the upcoming cost.
Bruce Lu: But at least for the LTA pricing and environment is for sure, right?
Jason Wang: I mean, yes, I mean, LTA right now is still intact. And so, for that portion it is, but that’s still some base that have to align with the market dynamic. And also, on the Shanghai, we did talk about for the LTA, there are some flexibility in terms of adjustment. But the longer-term perspective on LTA did not change, but the shorten LTA, it has some flexibility that we are try to align with our customer with. So, they also will come to account for the next year’s projections.
Bruce Lu: I understand. Because the reason I have that LTA alone is one 15% plus for the group, unless you have a lot of push out or additional erosion. Otherwise, that should be the base case.
Jason Wang : Well, in theoretically that’s correct assumption, but you have to look at the mix.
Bruce Lu: I understand that. The second thing is that I try to ask a bit different question is that the, if you look at your customer profile, Asia customer contribute a lot more than most of your peers. The communication also consumes a lot — a major portion of this which result in a much bigger fluctuation in terms of revenue, order, visibility, longevity. Do you see any change, any possibility to see meaningful changes in terms of your customer profile and application profile in the coming years?
Jason Wang : I mean, we continue enhance our product mix. I mean, not only from the broader customer mix point of view, also look at from the product mix point of view. So, I think that’s the clear focus, alright. However, whether the addressable — we have to also address, align to our addressable market and whether the addressable market is representing higher percentage of the communications and computing, through the consumer and which is highly tied, aligned with the Asia market. We may not be able to immune from that, but we definitely want continue increase the quality of that mix, and that will be our objective here, not typically from the geographical standpoint.
