Bruce Lu: I think I still need to go back to the pricing. I mean I’m surprised to talk about our full year pricing will be firm. I want to know the basic assumption for this pricing. This is assuming like healthy recovery in the second half. Does that take into consideration that your new fab will be LTA protected, will be like price premium versus marketplace or you’re talking about like-to-like basis, the pricing remain firm for the full year?
Jason Wang: Well, I mean the pricing has a mix, right? I mean, the way I have to look at it is, there’s a mix of pricing and our ASP basically reflects the product mix as well as the pricing adjustment, okay? And so, for the blended ASP guidance that we’re taking into account, there’s a short-term variation of 12-inch product mix and also the adjustment and also the new P6 ramp. So they are multiple facets that we have blended together so that what we provided to you is more of a blended ASP guidance. So you’re right. So this is not like-to-like, yes.
Bruce Lu: Okay. So what about the like-to-like base pricing for the — well, let’s say, for the second half of this year? If you take all the —
Chi-Tung Liu: Yes, we won’t be able to comment on that, as this kind of information, first of all, it’s very difficult to predict. Secondly, we can only give you a blended ASP guidance as we always have. So the like-to-like overall conceptually, we can talk about it on a quarterly basis.
Bruce Lu: I see. I understand that. I understand that. So the second thing — I got a quick question for the R&D expenses for the whole year. Your competitor was talking about like a big jump in terms of R&D for 2023. What about operating expenses for UMC for the whole year?
Chi-Tung Liu: Yes, we intend to somehow keep the absolute numbers in terms of operating expenses. Of course, the employee-related compensation will be affected by the full year profit sharing program. And other than that, such as R&D and some other projects, the expenses will be somewhat flattish. On top of that, because of the short-term volatility, we are implementing a pretty stringent cost control for other areas, but not on the R&D program.
Bruce Lu: Okay. Lastly is, you have a lot of fab in different regions. Do you consider to like price in the different — with a different pricing with different geographical location? TSMC was talking about like flexibility in terms of different multiple locations has a value, which means they want to sell those kind of — do you consider to do that kind of pricing strategy as well?
Jason Wang: Well, I mean, like you said earlier, the P6 and P3, the 12A and the 12i, definitely have a different pricing scheme. And because the production ramp for the P6 and P3 will indeed incur some of the higher depreciation costs for us. So for us, the new build capacity is under the LTA base and with the building the wafer price. Given that our customers do recognize our value as well as believe our total solution is competitive for both of us to capture the market growth and they agreed to that. So those fab investments are also based on such alignment and to drive our CapEx and ROI decision. And so, yes, from those new field capacity, there are different pricing scheme but not for the rest of them.
Bruce Lu: So only for the newly added capacity other than Taiwan, with a different pricing strategy? Okay.
Jason Wang: Even in Taiwan because P6 is in Tainan and €“
Bruce Lu: Okay. That’s all from me. Thank you.
Jason Wang: Thank you, Bruce.
Operator: Thank you. And our last question today comes from Gokul Hariharan of JP Morgan. Please go ahead, Gokul. Thank you.
