各位投资界的朋友、投资人、分析师、媒体，大家午安。我是联咏科技的副总经理以及发言人陈建兴，非常欢迎各位再次来参加联咏科技2021年第一季的法人说明会。希望大家都健康平安，投资顺利。由于今天线上也有国外的法人参加，因此今天的法说会会同时用中英文来进行。 今天会议的整个议程，首先会由我这边用英文报告联咏科技2021年第一季的结果。接下来会由我们的王守仁副董事长针对第一季的结果做进一步的说明，同时也会报告第二季的展望。最后会时间开放给各位发问，各位可以透过线上把你们的问题上传给我们。我们IR的主管Tony收到以后会帮忙用中英文来发问，会由我们的王副董还有周先生财务长以及我本人用中文来回答各位的问题，再翻译成英文。
Dear Investors, Analysts, and Media, Good afternoon. Welcome to Novatek 2021 First Quarter Online Investor Conference. This is David Chen, the Vice President and Company Spokesperson. I'll be the host for today's conference. Hope everyone is doing well, outperforming the market, and remaining healthy despite the challenging environment. Since the pandemic is not yet contained, we'll continue to use live audio webcasts, and hopefully we'll be able to host in-person conferences in the near future. Please be reminded to send in your questions. The agenda for today's event will be as follows. First, I will be reporting Novatek's first quarter results in English. After that, our Vice Chairman, Mr. Steve Wang, will provide more details on our Q1 results and Q2 guidance. Following that will be our Q&A sessions. As mentioned earlier, if you have questions, you can send them to us. Our IR Director, Mr. Tony Chen, will be processing and reading out the questions one at a time, both in Chinese and English. Our Vice Chairman, Steve Wang, CFO, Mr. Chou, and I will answer all your questions in Chinese first, and then we'll be translated into English. As usual, please take a look at our safe harbor notice. Let's start with our 2021 Q1 financial highlights. Our net sales in Q1 was $26.37 billion, up quarter-over-quarter 17.43% from $22.45 billion. Year-over-year up 56.1% from $16.89 billion in Q1 2020. Net gross profit in Q1 was $11.51 billion, up 34.76% from last quarter $8.54 billion, and up 105.17% from $5.61 billion in Q1 2020. Our gross margin in Q1 was 43.64%, up 5.61 percentage points quarter-over-quarter from 38.03%. Year-over-year up 10.44 percentage points from 33.2%. Our operating expense in Q1 was $4.3 billion, up 13.34% quarter-over-quarter from $3.79 billion. Year-over-year up 42.85% from $3.01 billion. Q1 operating income was $7.21 billion, up quarter-over-quarter 51.86% from $4.75 billion. Year-over-year up 177.23% from $2.6 billion. Our net profit margin in Q1 was 27.35%, up 6.2 percentage points quarter-over-quarter from 21.15%. Year-over-year up 11.95 percentage points from 15.4%. Q1 net income was $5.88 billion, up quarter-over-quarter 61.22% from $3.64 billion. Year-over-year up 165.71% from $2.21 billion. Overall Q1 EPS was NT$9.66 versus last quarter NT$5.99, and last year Q1 NT$3.63. Please take a look at our income statement. We'll start to break down our quarterly revenue into three product lines starting from Q1 this year. The three main product lines will be SoC, which is also the non-driver portion, and then we have the LDDI IC, which is a large display driver IC, and the SMDDI IC is a small medium display driver IC. As you can see that in Q1 2021, SoC accounts for 33% of our sales, LDDI IC accounts for 30%, and small medium DDI IC accounts for 37% of our sales. We have just released our April sales number. The April sales come down to $11.08 billion. Month-over-month, up 16.31%. Year-over-year up 69.37%. As you can see, the SoC accounts for 34% of our revenue, and driver IC accounts for 65% of the revenue. 2021 accumulated revenue from January to April is $37.45 billion. Year-over-year up 59.8%. Comparing our 2021 and 2020 monthly sales, you can see here that there's a significant year-over-year growth for the first four months of this year. Next, let's look at other key financial numbers. Our cash and cash equivalent in Q1 was $29.08 billion, increased by quarter-over-quarter by 27.11% from $22.88 billion. Year-over-year increased by 45.82% from $19.94 billion. Account receivable Q1 was $16.11 billion, increased quarter-over-quarter 20.49% from $13.37 billion, and year-over-year up 16.4% from $13.84 billion. Inventory Q1 was $9.7 billion. Quarter-over-quarter up 18.93% from $8.16 billion. Year-over-year up 10% from $8.8 billion. Short-term loans in Q1 was $1.45 billion. The following slide is a recap of our recent major events. Novatek Board of Directors approved the AGM date on June 8th this year. Second, Novatek Board of Directors approved cash dividend for 2020, NT$15.6. Also, our Novatek under-display fingerprint IC has been adopted by leading smartphone OEMs in China and will start volume production in Q2. Novatek was also selected as a constituent stock of FTSE4Good TIP Taiwan ESG Index. This slide shows our historical dividend and payout ratio for your reference. As you can see that 2020, the dividend will be NT$15.6. The payout ratio will be 80.33%. Novatek will continue to maintain a stable payout ratio policy moving forward. Now I'll turn over the call to our Vice Chairman, Mr. Steve Wang, to provide us more details on Q1 results and Q2 guidance. 接下来我们请我们的王副董针对Q1的结果做进一步的说明，同时也报告Q2的展望。
各位女士，各位先生，各位投資界的朋友，大家下午好，大家午安。剛剛David已經跟大家報告了一下我們這個Q1的結果。Q1我們看起來仍然有相當不錯的成長，而且呈現淡季不淡的原因，主要是受惠宅經濟的相關產品的需求動能看起來仍然持續。所以我們在SoC的產品跟driver IC的出貨都是往上成長，也超過了我們原來給各位的guidance一點，NT$260億。Q1的毛利率43.6%，比Q4的毛利率大概增加了5.61個百分點。主要是我們在產品有一部分反映成本調升售價。另外，我們對於產品組合持續來優化，因為產能緊，我們把對長期發展有利的產品組合做一些生產上的調整，所以使我們的毛利率能夠也有一個比較好的表現。 持續進入已經進入第二季，目前各國看起來都在加速施打疫苗，期待能夠恢復正常的生活。不過由於疫情，我們也觀察到數位轉型看起來也提早到來。所以未來對於居家上班、學習，或者居家娛樂，這個有可能會成為一個常態的情形，這個我們會密切來觀察。但是有關這些的需求可能應該會持續維持。 持續進入Q2以後，產業進入旺季，看起來需求還是相當強劲。所以聯詠在所有的產品線，第二季的出貨看起來應該都會全線成長，包括SoC或者是driver相關的這些產品。以我們現在所掌握的狀況，Q2的營收guidance大概會落在NT$330億到NT$340億之間，這個我們是用匯率28來估算。毛利率應該會介於大概45%到48%之間。盈利率應該會介於29.5%到32.5%之間。這裡頭剛剛提到的就是SoC的產品或者是driver的產品看起來都會有不錯的成長。這之間成長的差異看起來沒有相當大，差異不大。 簡單先跟大家報告到這裡，待會各位有什麼其他的問題，我們再跟大家做一個答復，謝謝。
Thank you, Steve. Let me translate what Steve said in English. Regarding the Q1 revenue, despite, as you can see that, despite Q1 being a low season, Novatek has delivered a decent quarterly top-line growth. The main reason is as follows. First of all, it's continued momentum from work-from-home demand. Secondly, both SoC and DDIC unit shipment went up sequentially and thus exceeding our guidance. As to Q1 margins, Q1 margin was 43.6%, up 5.61 percentage points Q2. This is mainly due to the following reasons. First, because of ASP adjustment to reflect our rising costs. Secondly, our continuous effort in the improvement of our product mix to higher margin products. As we all know, the capacity is pretty tight, and we are trying our best to adjust our product to benefit both our customers and ourselves. Looking at the Q2 outlook, as you know, many countries have already started to provide vaccination, and hopefully the pandemic will be contained soon. But due to the pandemic, it has speeded up the digitization process where the work-from-home, learn-from-home, or the home entertainment will become a norm. The related demand will continue to thrive. We'll continue to keep a close watch to the demand changes. As we enter Q2, seeing high seasonality, we expect market to be strong. All the product lines across the board will grow Q2, both DDIC and SoC. Based on the above, our guidance for Q2 is as follows. The top-line revenue will be within the range of ¥33 billion to ¥34 billion at an exchange rate of 1 to 28. Gross margin between the range of 45% to 48%. Operating margins will be 29.5% to 32.5%. As mentioned earlier, all our product lines will grow sequentially. We're expecting both SoC and DDIC to have a similar growth rate. That will be the guidance for Q2. Now we'll move on to Q&A sessions. Please be reminded to send in your questions. Tony will read them out first in Chinese, and then we'll answer in Chinese, and then we'll use English to ask again, and we'll translate the answer into English.
大家好，我是Tony。我們先把關於第一季回顧的幾個問題先在這裡整理了，交給管理層來回答。剛剛這邊管理層有提到第一季的毛利是由於有漲價，以及這裡有一些產品的調mix的調整。可以提一下對SoC大尺寸跟中小尺寸大概在第一季的漲價的幅度是怎麼樣。
由于这个不少的产品呢，在第一季呢，这里都有一些成本上的这个上升，所以呢，我们在第一季这里呢，有一些产品呢，我们也在这上面做了一些成本的这个反映。所以这个主要是毛利率有部分的提升呢，也是来自这里。 那这里请问一下第一季的有NRE的金额吗？可以告诉我们吗？ 这个NRE的金额呢，在第一季大概有NT$1.86亿，大概有NT$1.86亿。
Okay, your first quarter gross margin continued to post the upside to your guidance and still sequential growth strongly quarter over quarter. What kind of product did you raise the price and by what kind of magnitude? Can you also provide the NRE amount for first quarter?
As you all know, the first quarter cost has gone up, and our supply also has raised price. So in order to reflect that cost, our ASP also went up. As mentioned also earlier, we also improved our product mix to enhance our margins. The second question was on the NRE, okay? The first quarter NRE is roughly around NT$186 million.
第二个问题是关于这个里面的营业费用率。那看到过去去年的话，每一季的数字是比较接近的，但是今年第一季有比较明显的降低。可以请管理层分享这个主要的原因吗？
如果以营业费用的金额来看，其实第一季相较于去年第四季还有去年第一季，其实都是比较高的。但营业费用率减少，最主要还是营收的成长幅度大于营业费用的增加幅度。那另外公司在营业费用及用人的控管上是非常的严谨的，那费用率相较于同业是为低的。
The second question is about the operating expense ratio. We noticed this ratio was relatively stable during 2020 over the quarter, but this ratio came down in the first quarter in terms of both quarter over quarter and the year over year. Could you provide some factors behind this improvement?
The first quarter operating expense actually proportionally came down. It's mainly because of the top-line growth, okay? But in terms of absolute amount, it's still pretty healthy. Basically, the company is very careful in managing the cost. So this is also the reason.
第三题是关于这个产品的成长。之前公司是有给SoC versus DDIC。我们注意到SoC继去年的高速成长后，第一季的成长也还是非常的亮丽，年成长75%。可以分享一下在SoC产品里面大家主要的几个产品的成长情况吗？在第一季。
这个Non- Driver这一部分，在第一季我们也有差不多成长了24%。Qo Q有24%。这个主要是有一些产品，因为刚刚提到的反映成本，有调整售价。毛利率看起来也有一部分的上升，有一部分的增加，主要是来自这个。这里头，不管是在TV的SoC上或者是scaler或者是timing controller或者是power chip，这个Power相关的IC上，都有一些不同程度的成长。
Okay, question three is about your product growth. We noticed SoC in first quarter grew strongly in both year over year and quarter over quarter. Just wondering if you can provide more color about the factors behind this strong growth and also by your major product line within the SoC.
The growth reason behind the growth is we adjusted our ASP to reflect the cost. And the other thing is that within the SoC, all the product line, like TV controller, scaler, timing controller, Power Management IC, all of them actually sequentially went up Q2.
第四个题目还是关于产品的。那我们也知道公司在驱动IC是一个领导厂商。那因为这次是第一次有看到把大尺寸跟中小尺寸分开来公布，但是不知道说这两个产品在第一季的季对季或年对年的成长的情况是怎么样子呢？
以大尺寸的这个driver IC来看的话呢，我们在这里或者是中小尺寸呢，季对季的应该都有十几%的这个成长，大概都有十几%的成长。不管是大尺寸或者中小尺寸，在Q2这里有十几%的成长。那如果说以这个出货的数量来看的话呢，这个OLED的这个driver IC在中小尺寸这里呢，是有数量上是有略微的增加。但是在这个中小尺寸的TDDI上面来看的话呢，季对季的这个出货呢，应该说是持平的。由于这个产能的这个受限，这个产能的增加呢，所以在TDDI这里呢，季对季呢，看起来是持平的。但是OLED的这个Driver呢，是有略微的增加。
Okay, the next question is about the driver business. We noticed that you started to disclose the breakdown within the large size versus small medium size driver in the first quarter. Just wonder if you can provide more detail regarding the quarter over quarter growth for these product lines. And also, could you provide some unique trends for your major product lines within this segment, such as OLED driver and the TDDI?
Well, looking at the large panel driver, small size panel, both of them actually went up more than 10%, double digit growth. And in terms of unit, OLED unit went up a little bit, and the TDDI was kind of flat.
那下一題是我們也看到剛剛公司公告的財務數字中，存貨在第一季成長到97億，大概季對季的成長有19%。可以解釋一下主要的原因嗎？那就產品別這邊的話，主要是來自於什麼產品？
這個最主要是我們的存貨呢，有一部分也因為這個成本的上升呢，所以這個存貨也比前一季有稍微有一些增加。另外主要是有一部分是SoC的產品呢，由於這個目前後段的生產呢，是比較緊張的，所以這個cycle time呢，也變得比較長，所以這個造成部分這個存貨呢，這個增加了這個原因。當然最重要的是Revenue呢，也有一些這個成長呢，所以呢，存貨也會相對的這個會希望要多一點。
Okay, then we shift the gear to your balance sheet. We noticed your inventory dollar increase.
Let me answer that in English first, okay? Regarding the inventory issues, the inventory went up in Q1. Basically, the two reasons behind that, first of all, the cost went up for our products, so that will increase the inventory. The other thing is that the SoC, the non-driver backend cycle time, actually lead time actually increased, so that will also impact the inventory level. Third, our revenue is also growing, and because of that, we need to increase our inventory level to cope with the growth on the top line.
最后一个，我们看到在这个财务数字上，当然我们注意到業外通常這個項目是比較小的。那我們看到在這個第四季的時候，大概是負NT$2億，那到第一季的時候是正的NT$7,600萬。那這邊想請教一下財務長，這個主要的原因是什麼？
最主要是2021年第一季，我們有股利收入大概是NT$1.03億，那去年第四季其實會有匯兌損失NT$2.17億，大概是兩極的差異。
The next question about the financials is about the non-operating item. We noticed it was minus $200 million in quarter four, but became a positive $76 million in first quarter. Just wonder what's the major reason behind? The major reason is due to the dividend income in the first quarter at about $100 million versus FX loss of slightly over $200 million in quarter four.
那我們接著把題目重新移轉到對第二季的這個主體方面。那我們收集到很多的題目，我想大家對於這個整個的產業，那尤其是最近這個禮拜中很多的這個產業中的消息，我們會在這裡一一回答。那我想說我們會從第一個對晶圓供給的這邊的情況，那不知道說公司對於整個現在產能上面在12吋或8吋等等的這個供應的情況會是怎麼樣子呢？
目前我們所看到的或者是感受到的，不管在8吋或者是12吋的晶圓這裡呢，看起來這個供應呢，仍然相當的這個緊，仍然相當的這個緊。那這個也因為呢，一方面來自這個需求的這個增加，而且需求看起來還是蠻強勁的。第二個可能在過去這裡呢，產能增加的這個有限呢，而這個需求的增加呢，使這個供應呢，沒有辦法完全給追上來。所以我們現在感覺還是相當的這個緊，而且這樣的一個緊的程度呢，目前我們看到年底呢，看起來應該是還是會維持這樣的一個狀態。這是我們的一個觀察。
那就這樣的一個看法，請問公司階層怎麼樣去降低這樣的供應緊張的對公司的影響呢？
我想最主要的就是我們在剛剛提到的就是會持續的去優化我們在這上面的這個產品的組合，尤其最近除了這個晶圓的供應以外，IC的供應以外，當然有些不同的這個零組件呢，看起來也有一些長短腳的這個問題。所以呢，公司在這聯詠在這方面呢，基本上我們是因為除了Driver以外，我們還有生產一些這個像Power的IC啦，或者是這個timing controller啦，甚至跟這個系統相關Solution相關的這個TV的SoC啊，或者是scaler的Chip啦，我們盡量朝能夠這個以bundle sale或者是kit supply的這個方式呢，來解決客戶呢，在這方面的這個困擾，或者是這個沒有辦法成套的這個困擾。而且呢，最重要的還是說往這個長期有利，而且對客戶能夠需求的這個方向的那個產品的生產來調整。
Could you share your view on the foundry supply situation? As well as if the tightness will continue, how do you reduce the impact to Novatek?
Well, regarding the 8-inch and 12-inch capacity tightness, currently what we see is that both 8-inch and 12-inch are still very tight, and we are seeing the demand is still increasing and is still pretty strong. The capacity expansion is still very limited, and we think till the end of this year, we don't think the situation will be resolved. So it will be an issue for the whole of this year. As to how to cope with such situation, what we are now doing is that we are trying our best to improve our product mix and to have more higher margin product, to supply more higher margin product. On the other hand, as everybody can see that a lot of our customers, they're having some supply mismatch. But for Novatek, we supply not just driver, we also supply timing controller, Power Management, some of the system on chip, and scaler. We supply a lot of solutions. So what we are doing is that we are bundling those into like a kit supply, a bundle sale, so that we can help our customer to resolve the problem and also at the same time benefit Novatek. So in the mid to long run, we'll try our best to improve our product mix to benefit both our customers and Novatek at the same time.
那下一個問題也是這個禮拜我們收到非常多投資人問的一個問題，就是最近大家傳出晶合會在年底有一個比較大的產能的這個擴充。那很有可能有一部分的產能移作Driver這邊製造，也許是大尺寸，也許是TDDI，然後也有可能讓整個供應的情況去鬆開來。不知道管理層對於這個產業界的說法有什麼這樣的可以分享。
我想有關這個Wafer的這個Supply，這個產能的這個擴充呢，我們會持續的來關注，尤其這裡擴充的進度呢，我們也會持續的來觀察。但是呢，從這個整個的產業來看的呢，它是一個總產能這樣的一個概念。這個目前呢，我們在市場上所看到的呢，在這個供應上呢，短缺的並不是只有driver IC，一些non-driver IC事實上在產能的需求上呢，也是相當的這個殷切。譬如說像低階的CIS啦，MCU啦，或者一些power chip啦，Power相關的IC啦，像MOSFET啦，或者是這個Fingerprint的這個相關的這個Chip啦，現在這些有些都不少還是停留在這個所謂的這個成熟的製程上面來生產。所以呢，在這裡來講的話呢，我想廠商他也會去適當的調整呢，往他生產有利的這個方向呢的這個產品組合來這個安排。所以這個我覺得第一個是總產能的概念呢，總產能的概念呢，來看這個事情。 第二個呢，有關於這個所謂的這個先進製程呢，目前看起來呢，那這個產能呢還是有一些受限。所以呢，據我們的了解，市場上呢，不管是在供應上或者是廠商系統廠商的這個生產上呢，還是會優先來考慮這個高階的產品，譬如說像5G的這個相關的產品呢，可能會優先來考慮供應。而這樣的一個趨勢呢，也造成了客戶對於這個像Full HD的這個TDDI的產品往120Hz或是144Hz的這個方向來這個設計，或者甚至有些是往這個所謂的flexible OLED的呢，這個方向來這個生產。而生產這些產品呢，它所需要的製程呢，都是需要55奈米、40奈米或者甚至28奈米的這些的製程。所以這些的製程呢，目前看起來呢，還是相當的這個緊張，而且現在看起來呢，到2022年呢，可能都會有這個不足的這個情形。這個是第二點，由於這個先進製程供應的緊張呢，可能會往這個5G或者是高階的這個產品來移動。 第三個就是有關這個未來的面板的這個產業呢，我們觀察呢，由於這個TFT LCD呢，韓國有逐漸退出這個市場的狀況，而且這個中國跟台灣呢，可以說現在是TFT LCD主要的這個生產的這個地方。所以呢，所有的系統客戶、終端客戶呢，應該也都是維持在往這兩邊的這個來Sourcing，往這兩個地方的這個Sourcing。所以未來這個產業的循環呢，我們覺得會相對的這個比較穩定，而且會比較健康。而就聯詠來看呢，因為我們有這個多樣的這個產品的組合，還有豐富的這個產品組合呢，我想我們也可以提供給這個客戶呢，比較有這個長期而有利的這個產品的這個組合呢，這個是我們能夠做到的這個地方。這是我簡單的這個看法，大概是這樣子。 那接下一個問題也是。
The next question is the follow-up question about there's a lot of discussion about the aggressive capacity expansion from the Nex chip in China, and that will also cause maybe a more easy supply at the driver side. Could you also give some comment on this concern?
Well, regarding the capacity expansion on the mature nodes, some of the foundry, we'll keep a close watch to the progress of the expansion, but in short, we don't think there'll be any major impact at this moment. The reason is that, as you can see, that all the major product lines are experiencing a shortage, not just DDIC, for example, CIS, MCU, Power, Fingerprint, and a lot of these are still using the more legacy nodes, and all these are still in shortage. So if you look at the capacity as a whole, the shortage will not be resolved in a short period of time. So foundry supplier, they will definitely try their best to adjust the product mix in favor, in their favor. And the other thing is that we are seeing that on the advanced nodes, there's also a constraint on the advanced nodes, and a lot of those basically will try, they will try to satisfy the 5G's Full HD or like the 120, 144 Hertz or the flexible OLED, which use 55 nano or 28 nano. So a lot of those will move to, I mean, the first priority to meet those demands. And on the other hand, what we see now is that China panel supply already exceeded 50% of the global, and then you can see Taiwan and China together already have more than 70%, 80%, and then Korea is exiting the TFT panel market. So panel customers will maintain dual sourcing, both China and Taiwan, so therefore the market will be healthier and ASP will be more stable. And then for us as a major solution provider, total solution provider, we're not supplying only driver IC, but we also have the whole set of solutions, which we mentioned earlier. And so this kind of trend will definitely benefit major chip player like Novatek.
那下一個問題還是關於比較是產能這邊，那我不知道公司階層可以提一下，今年看起來整體您拿到的產能跟去年比起來大概成長的情況怎麼樣？那另外我們也比較關心下半年跟上半年比起來的話會是一個怎麼樣的趨勢？謝謝。
由于我刚刚跟大家报告的这个8吋或者12吋的产能，看起来今年都是蛮紧张的状态。所以我们今年在这里能够Secure的这个Wafer，看起来相对去年只能有这个Wafer的增加，但是也没办法说能够拿到我们所需要的这个Wafer的数目。如果以上下半年来看的话，目前来看在下半年比上半年可能稍微会有一些Wafer的增加而已，所以没有办法能够拿到足够的数量。这是我们目前所看到的一个情况。
The following up question about the capacity, could you provide some view about your foundry capacity growth in 2021 versus 2020? Also, your second half versus first half?
As we mentioned earlier, the 8-inch and 12-inch capacity is still very tight, so we are expecting to get a little bit increased wafer in terms of supply, but still cannot meet our demand. What we are seeing now is that the second half of this year, we also expect to have a little more supply than the first half, but again, still not enough.
下一个问题是之前会在别的IC设计中会提到一个，不知道说您这边可以分享一下所谓订单有所谓的lead time或者目前的可以满足率是一个怎么样的情况吗？
目前来看的话，这个客户的订单需求应该是还是相当的强劲。当然有些有可能听到在这种情况之下会不会有overbooking的这样的一个情形，但是我个人的看法是觉得在wafer shortage就有一个所谓的overbooking的情况存在。我想这是一个Business Nature，所以有这样的一个情形，我想这个也是一个正常的状态。重点是因为现在有不少零组件还是在短缺的状态，所以有些长短料事实上它也没有办法去形成有效的产能。所以又加上需求不错，事实上库存也是没有办法完全补上来。所以我们以现在的观察来看的话，现在应该的库存应该还是处于健康的状态。我们的供应事实上还是没有办法满足订单的需求。
Yes, could you also provide some kind of guidance quantitative number for your lead time for your business orders or fulfillment ratio for your business?
Well, the overall demand is still strong, and we are seeing that we are not able to meet the demand 100%, but as the nature of the business, when the demand is strong, overbooking is inevitable. It's just to what degree. And as you know, the current situation is that a lot of our customers are experiencing mismatch. It's not just driver, so it's very difficult for them to fill the gap. So what we are seeing now is that the inventory level at this moment is still healthy, so we don't think this is a big issue at this moment.
那我們剛剛討論了今年的wafer，那其實上個禮拜，前兩個禮拜的foundry廠這邊都提到了明年訂單的這個商談，那甚至提出了Prepayment。那我不知道聯詠這邊的進度怎麼樣，對明年的產能有一個初步的想法了嗎？
由於今年看起來這個產能還是相當的這個緊張，所以呢，在客戶終端客戶這裡呢，也是持續的希望聯詠這裡能夠以長期的角度呢，來去維持穩定的一個供應。所以呢，我們也跟這個我們的供應鏈這裡呢，也提早來開始商討這個2022年的這個供應的這個狀態。那目前呢，這些仍然都在進行當中，目前還沒有說完全的有這個確切的數字，不過以初步來這樣來觀察呢，看起來明年對今年呢，這個成長的數量呢，還是相當的有限，還是相當的有限。
那上個禮拜聯電法說也有提到他在台南的12吋廠，也跟他的一些主要客戶有一些這個有一些Engagement。那這邊不知道聯詠公司可以稍微Comment一下這個12吋的28奈米的擴充的計劃嗎？
這個也就是我剛剛提到的，由於這個未來的需求看起來這個在OLED這裡的需求看起來相當Strong，那不管是應用在手機啊，或者是這個AR、VR上面呢，各種方面的這個應用看起來會持續的增加。所以呢，客人也希望說我們能夠在這上面能夠有一個長期而穩定的一個供應。所以呢，我們也跟這個各個這個供應鏈在供應鏈這裡呢，也來商討呢，在未來這裡呢，如何能夠跟客戶之間呢，還跟在供應鏈跟客戶之間呢，能夠形成一個長期而有這個穩定的這個所謂的這個夥伴的關係呢。所以我們持續的在這上面在做這個討論。
You also talked about the progress for your foundry capacity in 2022. Do you need to do some prepayment? How about the project for UMC in Taiwan for 12-inch fab? Any guidance for your foundry capacity growth for next year versus 2021?
The foundry capacity supply is indeed tight, and so our end customer actually requested us to have a long-term stable supply. Because of this, we have earlier engagement with our supplier, starting to negotiate or to request for 2022 supply. So far what we see now is that for next year 2022, the year-over-year increase of capacity is still very limited, still very limited. But looking at the future demand, not just the DDIC, but we also see the AR, VR, or some of the flexible OLED, a lot of these and logic product, all of them actually the demand actually very strong. In order to have a stable and long-term supply to help our customer, to support our customer, we are still in the process of negotiating with various suppliers, hopefully to secure more capacity. It's still in the process.
下一個問題就是我們也看到主要的這個8吋供應商的8吋基本上產能利用率有100%的情況，請問聯詠覺得說怎麼解決這個8吋這個供應的有機會縮減嗎？
由于这个在过去的一段时间内8寸的扩厂的Capacity事实上是比较Very Limited，所以我们现在感觉8寸的供应现在看起来还是相当的紧张。当然有部分的8寸，有些也是用12寸来给做供应的替代。不过总的来看的话，在8寸这里的产能的增加，短期内看起来还是相当紧的。所以，我们期待，希望说在明年，是不是在这里能够有一些新的产能能够开出来。
Yes, could you also talk about the situation particularly for the 8-inch demand supply situation and how does Novatek resolve this issue?
Well, as everybody knows that for the past few years, the 8-inch capacity expansion was very limited. So that was one of the issues that caused the current tightness. Over the past one year or so, a lot of the people are moving some of the product from 8-inch to 12-inch, but not all of them, but partially tried to move from 8-inch to 12-inch. So what we see now is that even though we are doing the 8-inch to 12-inch, I think the capacity issue shortage will not be resolved in a short period of time. For Novatek, we are trying our best to, and hopefully we'll be able to increase some extra capacity in 2022, and we are working on it.
最后一个可以刚刚管理层有提到第一季成本这边有一些上升，那我不知道这边如果对这个方面这边的成本的话，在第二季甚至下半年还是会继续的相类似的幅度继续会上升吗？
以现在来看呢，确实有些产品在第二季的这个成本呢，还是有持续上升的这样的一个情形。所以我们这里也会根据这个东西呢，做一些这个成本上的反应。至于下半年或者是明年的状况呢，这个到时候也要看这个整个的供需的这个情形呢，我们才能够去做这个调整这样。
Yes, you mentioned about some cost push-up in first quarter. Just wonder if this situation will continue in the second quarter, even into second half of next year.
What we experienced is that in Q2, some of the product line or some of the notes cost went up. As to the second half or next year, it will depend on the supply and demand situation. So it's hard to tell at this moment, but currently what we are seeing that is the situation is still very tight and the price and cost in Q2 has gone up.
那接下来就想請教一下，那不知道有沒有其他也相對比較緊張或者有漲價的這個原物料供給在第一季或者往前看第二季或者下半年。
當然現在除了這個wafer方面這個wafer的供應以外呢，像這個後段的像這些封測所需要的部分的，比如說像substrate或者是wire bonder這裡看起來還是有這個供應的這個比較緊的這個狀況。所以呢，在這裡的lead time看起來都變得會比較長一點，lead time會變得比較長一點。
Also, other than the foundry, also wonder if there's any Chinese or potential price hike for your other raw material supply.
Yes, besides foundry, the backend packaging and all also experiencing tightness. So what we see now, like the packaging, like for some of the materials for packaging like substrate and wire bonder, lead time actually has been extended. So yes, I mean some of these costs are also going up.
那最后可以想提分享一下您现在观察到了终端的需求或者是库存的情况吗？
目前来看的话呢，看起来在不管是手机、电视或者是在NB还有平板车用这些产品来看起来的这个需求呢，仍然是相当的这个强劲。所以我们看到短期内这个需求应该是不会下来。
Could you also share your observation for the end demand as well as the inventory level across different applications?
Well, looking at the mobile or TV, notebook, tablet, automotive demand, currently all these product lines are still very strong and we don't see any sign of coming down or softening or weakening at this moment. It's still maintaining a pretty strong demand.
接下来投资人也好奇就是说联咏持续好几季非常亮丽的表现，那我不知道说现在有一个初步下半年或至少第三季还是会有一个季节性的这个季对季的成长的一个初步看法吗？
现在来看的话呢，由于这个刚刚提到的，由于这个方水的这个供应呢，看起来wafer还是相当的紧。所以呢，也因为这样呢，没有办法去满足客户的这个订单的这个需求。那又加上呢，可能不少这个系统厂商呢，他可能expect今年的旺季呢，还是要有一些这个要能够持续的销售。所以我觉得这个上面的这个需求呢，在库存没有补上来之前呢，这个第三季的这个需求应该会仍然的这个维持一个强劲的一个状态。这是我们的一个观察。
Could you provide some initial thoughts for the outlook for quarter three after your strong first quarter and also the second quarter guidance?
I mean, as mentioned earlier, the foundry is tight and we cannot fulfill the demand, but what we are seeing is that a lot of the system makers, they still expect the second half or third quarter high seasonality, the demand to go up. So based on such kind of scenario, we do expect the second half demand continues to be strong.
那我们接下来移到关于个别的产品，刚刚管理层有提到第二季的这个SoC跟Driver都会相当强劲的成长，但是可以就三个产品线上给一下这个季对季成长的顺序吗？
刚刚在Guidance这里呢，我给大家的一些这个基本的这个方向呢，目前看起来在这个大尺寸或者是中小尺寸的这个driver IC或者是SoC这里呢，在Q2这个季对季来看的话呢，应该都会有不错的这个20%以上的这个成长。而这里呢，看起来这个成长的这个百分比呢，差异没有说非常大，在这个第二季来看的话。
Yes, earlier mentioned about strong growth into second quarter for both SoC and the Driver. Just wonder if you can rank the quarter over quarter growth among these three product lines.
Well, all three product lines are experiencing growth, so all of them will be over 20%. So there aren't that much difference. Basically, all the product lines across the board are growing at the same rate.
那我们现在就个别的产品有一些比较细的问题，那想请教第一个在大尺寸这边的话，像第一季的您刚刚提到季对季的成长有十几个%，第二季刚好提到也会有两成以上的成长。想请教一下这个在价跟量上面的成长大概情况是一个怎么样的？
以量来看的话呢，Q2这里的量呢，应该会有一些些微的增加。那价上面呢，由于刚刚提到的因为成本的这个上升呢，因此我们在这个售价上呢，也做了一些这个调整。
The first question about the lifecycle driver, just wonder if it can provide more detail about the growth behind the sequential growth from quantity or from the ASP for first and second quarter.
I think the second quarter growth will be driven by both unit growth and ASP reflection.
那下一个问题就是说大家也蛮关心就是这里有一些市场竞争对手会好像大家拿到晶圆的这个产能的情况会有一些不同，那会造成一些市占率的变化。这边您可以给一下您Novatek的观察吗？
这个竞争对手是怎么样的情况，这个我们没有办法去comment。那对我们来讲的话呢，就诚如我刚刚提到的，基本上由于这个客户现在还是持续有这些所谓的这个长短料的问题呢，mismatch的这些问题呢，我们联咏就基本上用这个有限的产能呢，会把它调整到一个最佳的一个产品的一个组合，这个包括所谓的这个kit supply或者甚至跟这个SoC之间的这个搭配的这个生产，可以让客户在这里的产能能够做最有效的一个发挥。
Could you talk about the capacity allocation or your competitive landscape among your peers for lifecycle driver?
Well, we can't comment too much on our competitors, but for us as a total solution provider, we understand our customer needs because they're having some mismatch issues. So what we are doing is we're trying to bundle our solution and supply them a total kit solution to maximize efficiency so that they can maximize or utilize the supply that they get to maximize their revenue. That's what we are doing, and hopefully it will be helpful for our customers.
最后一个关于大尺寸问题就是管理层也提到这一段时间，尤其Driver这边的涨价幅度是比较多，也比较频繁，可以分享一下它大尺寸的毛利的变化，或者是说第一季亮丽的毛利率下的话，三种产品它的毛利率的顺序或者比较大概是怎么样子。
诚如我刚刚所跟大家报告的，由于这个成本的上升呢，我们在这里售价上有做了一些反应，所以在毛利率上呢，事实上也比过去呢，要好。在大尺寸的driver IC来讲，跟过去比较是有比较好。
Just also wonder you mentioned about your price hike in first quarter and then into the second quarter. Just wonder if you can provide some gross margin range for your lifecycle driver or the ranking among your product lines.
Well, regarding the large size driver, basically mentioned earlier, the cost has gone up. We also have reflected the ASP reflections to meet the cost hike. So basically the margin has improved.
那下一個問題群的話是關於中小尺寸，那第一個大家最關心的也是您最主要的產品線，可以提一下這個TDDI的價格跟毛利的情況是怎麼樣子嗎？
TDDI這個產品呢，在過去一兩季呢，也因為這個成本的持續的上升，加上這個需求呢，還是相當的強勁，所以我們在這裡呢，售價上也做了一些這個成本上的反應。毛利率上面這裡來講呢，大概也維持了一個不錯的一個情形。那這個漲價的情形，基本上還是看這個供應的跟這個需求的這個狀況呢，來這個隨著這個市場呢，來做這個動態的這個調整。
Okay, now question shift to the small medium size group. The first question will be about the TDDI's pricing and the margin trend.
Well, this is similar to large panel drivers, so because for the past many quarters the demand been strong and also our cost has gone up, so we also have, you know, raised our ASP to reflect the cost. So basically the margin has improved.
下一個就是聯詠是這一塊的領導廠商，那可以第一個提一下今年對市場或聯詠的出貨量的有一些想法嗎？第二個可以提一下第二季這個TDDI的量季對季的成長會是一個怎麼情況呢？
由於剛剛我聽到剛剛跟各位報告的這個wafer的供應呢，目前看起來還是相當的緊，所以對TDDI這樣的一個產品呢，我們現在第二季對第一季來看呢，在出貨量上來看呢，應該是持平的，應該是現在看起來是持平的。那全年的這個出貨量來看的話呢，由於這個產能的這個受限呢，我們看起來今年大概只能略增，今年大概只能略增。
Yeah, could you also provide more color for the TDDI market size and your quantity for whole year and also for the second quarter?
Well, the unit shipment for TDDI, because of the foundry tightness, so Q2 will be kind of flat, but for the whole of 2021, we are expecting the unit shipment to be slightly up.
第二个问题是关于OLED这边，那刚才管理层也提到第一季的出货量已经有所回升了，那可以再提一提第二季或者全年吗？那大家也关心今年会有机会年对年的成长，会出货给非中国手机的客户吗？
以OLED的这个driver IC呢，诚如我刚刚跟大家报告的，由于现在那个5G的这个市场呢，看起来是需求相当的不错，这些这个高阶的产品呢，可能对这个OLED的这个Panel呢，需求也是相当的殷切。那以我们现在来看的话呢，现在新的Model在design- in使用这个OLED的这个Panel呢，有越来越多的这个情形，所以我们预期呢，下半年的出货呢，应该会比上半年要好，今年的下半年的出货呢，应该会比上半年要好。至于说在这个第二季上来看呢，对第一季呢，这个出货量的增加呢，也是只有稍微的增加，那重点还是在下半年。
The second group question is about the OLED. Can you provide some quantity growth as well as your whole year outlook for your OLED driver shipments?
Well, as mentioned earlier, the 5G trend is pretty clear, so most of the 5Gs or the high-end phones, they are adopting OLED as their panel solution. So we are seeing that a lot of the new design- in are adopting OLED as their panel. So what we do expect second half shipment to be better than the first half. As for Q2, we think it will be slightly up Q2, but it will be more in the second half.
刚刚关于OLED还有一个问题，就是不知道管理层可以update一下OLED TDDI的时间表吗？
有关这个OLED TDDI，我们目前内部应该是算验证告一个段落，我们预计呢，应该会按原来的这个schedule呢，在Q3呢，会开始送样给客户。那预期如果这个面板这里的生产一切顺利的话呢，我们预期明年呢，应该有机会进入这个量产，不过这个要看面板在这上面的这个验证的进度跟这个手机厂这个design- in的这个状况来这个决定。
The follow-up question about OLED driver, could you provide the update timetable for your OLED TDDI?
Our OLED TDDI development is pretty smooth, and so far the sample is already out, and we are ready to provide the sample to our customers, but we are working closely with our panel maker. If everything goes well, hopefully next year it will go into mass production, but it will all depend on the panel maker progress.
那也想请管理层分享一下关于这个OLED driver的pricing，因为刚刚提到TDDI的涨价，那不知道OLED这边的情况趋势是怎么样子。
由于这个OLED所需要的这个foundry呢，看起来现在这个wafer的供应呢，还是相当的紧，所以我们预期这样的一个状况呢，短期内呢，看起来应该是不会改善，所以这个售价上呢，我想应该还是会维持一个不错的一个状态。
Okay, I also wonder if you can share the price trend for OLED driver, given your earlier comment on TDDI price trend.
As you know, the OLED using a more advanced nodes and the foundry supply on those nodes are still very tight, so it cannot be resolved in a short period of time, so the ASP should be pretty stable and healthy.
那另外一个问题就是关于车用的driver，那我们最近这几个月看到整个车市的反应非常强，晶圆厂那边也公布预期，不知道联咏这边的车用的driver的第二季的情况怎么样，全年的成长的情况是怎么样子。
目前这个来看的话呢，车用方面的这个需求呢，看起来还是相当的强，那除了原来的这个Pure的这个driver以外呢，事实上对这个TDDI呢，目前开始呢，客户也有这方面的这个需求，由于这个产能的供应呢，还是相当的紧，所以我们预期这样的一个状态呢，应该在短期内也不会有很大的一个改变。
Could you also share the update on your auto driver?
Well, the automotive driver besides the pure driver, recently we are seeing there's a strong request for TDDI driver for the automotive, and currently, again, the foundry is very tight, so we don't expect to have very big change in terms of supply for the automotive.
下一个问题就是在您的这个PPT上我们也看到公司有提到Fingerprint已经开始被数个中国的手机品牌采用，预计第二季量产，这边可以再给我们更多的一些update吗？
有关这个Fingerprint的产品，目前在光学式的OLED的屏下OLED的应用，目前我们已经有小量的出货，我们预期第二季应该客户会开始有一些volume的production，现在的进度大概是这样的一个情况。 那投资人也很关心就是说，因为这个产业去年似乎竞争比较激烈，那这个产品的毛利跟公司整体而言相比会是怎么样子呢？ 由于现在foundry的供应，wafer也是整体这边来看的话还是相当的紧，所以我们觉得短期内对毛利率应该不会有影响，而且看起来这个产品线的毛利率应该还可以。
Okay, you mentioned about your Fingerprint product in your PPT, could you provide some update on this product line and also wonder the gross margin versus your average?
Yes, I mean our Fingerprint solution, the optic on the display, already gone into small volume production in Q1, so we are expecting Q2 to get into volume production, and as for the margins, again, because of the tightness in the foundry or in the supply chain, so we expect the margins to be decent margins, so it shouldn't be a problem.
另外一個也剛好這一個兩個禮拜我們看到了神盾跟敦泰的合作終止了，不知道這個對公司的這些產品線上會不會有什麼想法或衝擊。
呃，以我們來看這個對我們沒什麼影響，因為基本上我們的產品也都是自主研發，所以在這裡我們會朝自己的這個方向來這個邁進。
Any comment on the recent announcement between Egis and the FocalTech?
Well, we don't think there is any impact on our business, so we'll continue to develop our product internally as scheduled.
那最後這邊想請教一下公司之前有提到一些新產品像wafer或是Mini LED driver，那不知道這邊也可以更新一些update或有任何對營收貢獻等等的一些參考數值嗎？
由於現在這個能夠供應wafer的這個OLED driver跟手機啊，跟這個其他的應用很多都是在一起，那由於這個產能的緊張呢，所以我們在這上面呢，雖然客戶都已經驗證完整要驗證完成要進入量產了，不過由於這個產能的不足呢，我們做了一些調整呢，希望能夠在Q3開始呢，可以有一些這個這個量產的這個產品出來，那最主要還是來自這個整個Total的這個Capacity呢，看起來還是不夠。
Could you provide some update for your new product such as wearable OLED driver or Mini LED driver and others?
Yes, our wearable OLED driver solution is already designed in and is getting ready for mass production, but again, due to the tightness of the foundry, we did some adjustment, so we're still expecting Q3 it will go into mass production.
至于Mini LED driver这里呢，事实上我们已经进入量产了，而且已经在出货了，只是现阶段对营收的这个贡献的百分比呢，应该还是在很低的程度，应该是low single digit这样的一个情形。
Regarding the Mini LED driver, this product line is also in mass production now, but the revenue contribution is still small compared to the other product line.
那中小企业这边问题大致结束了，那我们最后回到这个SoC，那刚刚有提到SoC这里第二季的季对季成长也有在这个20%以上，那不知道可以highlight一下几个主要产品线季对季的成长，或这几个产品线中哪一个成长会比较快一点吗？
以SoC这个相关的这些产品呢，不管是在TV或者是在安防，或者是在这个所谓的这个Timing Controller Chip这里相关的呢，看起来季对季呢，都应该有目前看起来都有不错的这个成长，那由于这个wafer的supply呢，现在目前看起来还是很紧，所以部分限制了我们在这上面的这个有更高的这个成长率，那以现在的这个情况来看的话呢，这TV呢，SoC现在还是属于这个缺货的一个状态，客户还是持续在这上面有一些这个追货的这种情形，那安防这里呢，看起来这里也有不少的也有不错的这个成长的这个情形，但是呢也是刚刚提到也是因为foundry的这个供应呢是比较紧张的，所以呢我们这里就针对这个整个wafer的这个supply的情况呢，做了一些比较适当的一个调配的这个生产。
Could you also provide more detail about your SoC product line growth in terms of quarter over quarter as you guide it, it will all will grow over 20% quarter over quarter in the second quarter?
Yes, as mentioned earlier, and within the SoC we have TV controller, we have like timing controller, we have surveillance, and all of these we are expecting the unit shipment to grow in Q2, but again because of the tightness in the foundry it will cap our growth, basically the growth should be higher than that, but because of the foundry tightness it has been capped, so what we've done is we internally we did some product allocation, resources allocation so that will help to maintain the SoC to grow at a decent rate.
那SoC里面的产品中你可以谈一谈这个成本上升的情况的影响还有对您这个margin的影响。
You mean the SoC?
Yes, SoC。
呃，你们第一位ASP cost up，cost up，
could you repeat the question again？
呃，中文的话就是说您可以提一下关于第二季呃overall来说看到的这个在SOC产品里面有哪一些成本有上升，那对你调整价格完后对你margin的影响是怎么样子？
呃，again这个是呃也是成本跟售价的反应的一个问题，呃在这里当然最近有一些像DRAM啊KGD的一些这个呃呃成本的上涨啊或者是在这个呃封测这里啊，事实上也因为产能的比较紧张有一些这个呃成本的上升呢，呃我们在售价上呢也做了一个相对应的一个呃调整，这个对这个毛利率呢应该是呃有帮助的，但是呃由于这个成本的上涨我们也会做一些这个呃售价上的调整，所以对毛利率呢应该会稍微比较好一点。
Could you talk about the for your SoC product the cost push up as well as your ASP or your margin trend across different SoC lines?
Yes, besides some of the costs that we mentioned earlier backend or the foundry cost for the SoC there is another area that's the DRAM that's a Known Good Die, the cost also went up quite a bit, so basically we will adjust our ASP to reflect the cost, so basically it will be helpful for our margin also.
那刚刚管理层有提到第二季的SoC成长两成，那之前的driver有提到两成中成长量的成长是比较早的，那请问一下SoC这边的量跟价的成长会是怎么样的情况？
有关SoC这里呢也是刚刚所提到的这个产能的供应的这个紧张的关系呢，所以这个量的成长呢相对的是会比较小的，但是在价的成长呢可能会比大于这个量的这个成长。
You mentioned about the SoC growth in the second quarter just wonder can you break down the quarter over quarter growth between the quantity versus ASP?
Well, regarding the SoC because of the tightness and the price cost hike what we expect is that the ASP increase will be higher than the unit increase Q2Q。
我们现在正在在整理一些这个投资人来到，那我们看到一个问题也是比较时事的问题就是最近印度跟巴西的疫情上升，那公司这边有感觉到对终端需求尤其像是手机这边的需求的影响吗？
印度最近看起来这个疫情是有上升的这个情形，那实际上对生产或者是那边的消费呢确实我们有看到这个一些这个少部分的影响，就我们所初步收集到的资料在印度这里的这个手机的这个销售呢确实有稍微的这个下降，不过as a total就整个的这个手机的市场来看呢因为它占的只是一部分的百分比，所以对整个现在的供应跟需求的这个状况呢还是没有办法去追上这个整个的这个需求。
You mentioned wonder if you have seen any negative impact already given the recent resurgence of COVID-19 in both India and Brazil, particular for smartphones?
Well, regarding either India or Brazil, the pandemic definitely has some impact on the manufacturing and also on the consumer, so we see that there are some impact. But because these areas are just a part of the whole smartphone market, so because of the current supply and demand tightness, so that kind of impact is not that significant.
另外一个问题是大家关于您第二季的这个营收的guidance，因为您的这个guidance是¥330到¥340亿，那刚刚公布的营收是¥110亿，那这是意思就意味着说是五六月的营收会跟四月幅度差不多，因为产能紧缺还是四月会有受到这个五一长假所以有些拉货等等这样的一个情况。
我想这两个的情况呢应该都是存在的，主要是因为五一呢中国有这个长假的这个关系呢，所以有些客户在四月底呢就提早了这样的一个拉货的状况。第二个当然也是因为这个供应的紧张呢这个supply tightness呢，所以使我们在这上面要在往上成长呢也受到了一些这个抑制。
It's wondering you provide your second quarter revenue guidance of ¥33 to ¥34 billion and also you just reported the April revenue of ¥11 billion and just wonder that imply your monthly revenue will be pretty flattish or you have the early pull in before the China New Holiday.
I think it's both okay the China China May holiday there is some pull in okay and again because the supply and demand tightness so growth has been capped to ¥33 to ¥34 billion.
现在整理一下问题。那大家也会好奇就是说最近这个过去这一次20年来少见就driver这样持续的涨价，那想了解一下公司觉得现在跟这个面板客户的中间的互动等等的情况或者这个客户的有什么样的一个反应对现在这个整个产业的情况。
由于目前面板的产业看起来是相当的不错，各位可以看到这样面板最近还是持续的有反映这个售价的上涨，又加上我刚刚跟大家报告的由于这个未来这个TFT LCD系列产业主要集中在这个台湾跟这个中国大陆来生产，而客户长期来看也会维持在这个两个地方来sourcing这样的一个面板，所以未来的长期来看的话它的这个产业的健康还有稳定应该会相对过去来讲应该会比较好的。所以我们跟面板厂之间的关系就像我刚刚跟大家报告的，由于有这样的一个关系，所以客户对我们的要求就是希望能够有一个比较长期比较stable这样的一个供应，所以我们也结合的这个供应链希望是说能够创造一个三方面都win的这样的一个长期而稳定这样的一个伙伴的关系。
You have increased your driver price over the past couple of quarters which is pretty abnormal over the past 20 years during the cycle. Could you provide your view on the partnership with your panel customers at this moment?
Looking at our panel customer, as you can see that a lot of the panel makers are doing pretty well financially. Business wise, they're doing pretty well and their ASP has gone up quite a bit. Secondly, that we mentioned earlier, we do see a structural change in the panel industry. As I said earlier, now eventually there will be just China and Taiwan will be the major panel supply, so accounts for a big part, major part of the business. Moving forward, dual sourcing will be a trend so the overall market will be more stable, more healthier. Because of this kind of changes scenario, the panel maker relationship with Novatek will be stronger than before because of the current situation. Both of us want to have a longer relationship, a partnership not just with us but with our supplier. That's why we are now working very closely with our supplier, hopefully to secure more capacity for our customer so that it will be a win-win-win situation.
还有一个问题也是大家特别关心的，就是说公司过去这一年来毛利很明显的持续的提升，甚至也超过了这个其他的这个Peer SoC的Peer，那不知道公司对于这个毛利率将来的这个维持的所谓的sustainable的情况有什么样的一个想法？
我想这个长期来看的话呢，我们当然是希望公司的这个毛利率能够是追求一个这个高毛利的这样的一个产品来来发展。所以以现在的情况来讲，作为一个IC design house呢，我想我们最重要的还是来自这个技术跟这个产品。所以我们能够做的在现阶段来看，我们尽量是第一个我们要深耕我们的这个技术。第二个呢，我们在现阶段有这个产能有限的情况之下呢，尽量能够调整长期对客户对我们有利的这个产品的组合，包括我刚刚跟各位报告的像能够bundle sale啦，kit supply啊，能够解决客户的这些长短角的这些的困扰。第三个呢，我们当然除了这个以外就会去扩大这个产品线还有各种不同的application还有这个customer base能够对公司的这个长期的这个不同的应用或者是朝比较高毛利的这个产品的方向来做这个技术产品的这个开发。第四个也就是刚刚跟大家报告的再重复一次，就是我们希望能够建立跟供应链跟跟客户呢能够建立这个长期的这个稳定的这样的一个伙伴的一个关系。借由刚刚提到的这个产品或者是这个技术的开发，我想应该对客户也能够有一个长期的这个供应的这个稳定的一个供应的这个关系。
We notice you are expanding your gross margin quite rapidly over the past couple of quarters and even exceeding your peers at the SoC group. Just wonder if this kind of margin rate is sustainable in the near future?
Well, pursuing a higher margin is, you know, as a design house, you know, always looking for higher margin. But on the other hand, there's other area that we need to work to enhance and that's basically the technology. So we also working very hard to develop our, you know, research on a better technology to support our customer. So what we are now doing is strategically we are working on developing product that will be variable favorable to Novatek. You know, we're going to enhance our technologies, we're going to expand our product lines, applications and also customer base. And mentioned earlier, we're also going to bundle solution to increase customer stickiness and also to resolve the problem they don't have the mismatch issue. And we also want to strengthen our long-term strategic partnership with our customers so that moving forward we'll be able to provide more better, better value, better competitive product for our customer. And if we can work together in the long term in a partnership.
那我们好像看到这个我们这个投资人的问题我们整理的差不多了。
Okay, so since there's no more questions, so we're going to wrap up today's Q1 investor conference. Thank you so much for joining in. 谢谢各位参加我们Q1的investor conference，祝福大家，祝福大家，谢谢大家。