Charlie Chan: So does that mean — okay, okay. So does that mean that first half is also the bottom of the gross margin?
Chi-Tung Liu: Overall, as Jason just mentioned, from a business standpoint of view, we hope the trough will be first half, sometime first half of this year, it’s not first quarter. So margin should reflect to the business momentum, but maybe one or two quarter differences, there could be some time lag on how you reflect the cost versus the revenue improvement. But overall, we certainly hope the trough will be some time in first half.
Charlie Chan: I see, I see. So Jason, I come up with one question. I think some investors are concerned about your — one of your IDM customers, because they also have some challenges about their own fab utilization, right? So they may receive back some 40-nanometer or 17-nanometer or 22-nanometer project back to their own fab in 2024. How do you address that — their concern? I think the end market should be — end products should be like a smartphone ISP or AMOLED driver IC. Thank you.
Jason Wang: Well, I mean, there’s always a cyclical nature of this industry, right? So we are no stranger to that. So we have to just deal with all business circumstance. The way we see it is we believe the product mix optimization is to continue to pursue for UMC to enhance the long-term fundamentals. And we’ll continue our business development out of the mega trends, not just limited at one customer, but there is diversified market focus as well as the customer base and continue to strengthen our specialty technology offering, quality operations. So then we can continue to be the best foundry and for those products to be produced in UMC. And now, we do have — we do believe and we have a strong engagement product pipeline to support that long-term fundamentals. So any short-term volatility, we will continue to work with the customer to make sure that we both remain very competitive and relevant to this market.
Charlie Chan: But you should have to make a decision about your 17-nanometer capacity, right? So do you have any visibility right now for 17-nanometer capacity expansion?
Jason Wang: Yes. I mean the — that’s more of a question about the technology migration, right? So in our view, the technology migration will continue. And once we are aligned with our customers, then we will also put adequate capacity to support that migration. And at this point, we — I mean, I’m not commenting about the customer specific or product detail, but the question is about 17-nanometer for the driver and the ISP, we expect the next mainstream note for that is after 28-nanometer will be 22 nanometer. The 22-nanometer is a mature technology and with the manufacturing feasibility is already proven. And we believe the 22/28 is a long-lasting node, the 17-nanometer solution could be a sub-segment of the total OLED driver and ISP solution.
And before 2024, the volume production for 17-nanometer will be very minimum. And right now, we’re seeing the 28-nanometer still the most competitive offering in the marketplace. And when considering the overall factors, performance, cost, capacity availability and the system acceptance, our outcome in the 22-nanometer solution have already been adopted, okay, by the leading partners with their design. And so, therefore, we our confidence with the 22-nanometer will continue to have a business sustainability well into the next wave. And from a technology migration point of view, we are also working with our customer and partners to find the future roadmap, and we will not be absent on that market anyway.
Charlie Chan: Okay. Thanks for your patience and for your insights gentlemen. Thank you.
Jason Wang: Happy new year to you too.
