各位投资界的朋友、媒体、投资人，大家午安。我是联咏科技的副总经理及发言人陈建兴，非常欢迎大家来参加联咏科技2020年第四季的法人说明会。希望大家在防疫期间都能够保持健康跟平安。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交叉来进行。 今天会议的议程如下：首先会由我这边先用英文报告联咏第四季的结果。接下来会由我们的王守仁副董事长针对第四季的结果做进一步的说明，同时也报告第一季的展望。最后会开放给各位Q&A的时间，各位可以透过线上把您的问题上传给我们，我们IR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，还有周胜成财务长，还有我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 2020 Fourth Quarter Online Investor Conference. This is David Chen, Vice President and Company Spokesperson. I'll be the host for today's conference. Hope everyone is doing well and remaining healthy despite the challenging pandemic outbreak. Let's pray that the pandemic will be contained soon. But before that, we'll have to continue to use live audio webcast. Please be reminded that you can still send your questions to us by text. The agenda for today's event will be as follows. First, I'll be reporting Novatek's Fourth Quarter results in English. After that, our Vice Chairman, Mr. Steve Wong, will provide more details on our Q4 results and Q1 guidance. Following that will be our Q&A sessions. As mentioned earlier, if you have questions, you can send them to us by text. Our IR Director, Mr. Tony Tseng, will be processing and reading out the investor questions one at a time, both in Chinese and English. Our Vice Chairman, Steve Wong, our CFO, Mr. Chou, and I will answer all your questions in Chinese and will be translated into English. As usual, please take a look at our safe harbor notice. Let's start with our 2020 Q4 financial highlights. Our net sales in Q4 was $22.45 billion, up quarter-over-quarter 2.05% from $22 billion. Year-over-year up 35.87% from $16.53 billion in Q4 2019. Net gross profit in Q4 was $8.54 billion, up 12.65% from last quarter $7.58 billion, and up 60.23% from $5.33 billion in Q4 2019. Our gross margin in Q4 was 38.03%, up 3.58 percentage points quarter-over-quarter from 34.45%, and year-over-year up 5.78 percentage points from 32.25%. Operating income was $4.75 billion, up quarter-over-quarter 11.4% from $4.26 billion. Year-over-year up 94.42% from $2.44 billion. Q4 net income was $3.64 billion, up quarter-over-quarter 7.02% from $3.4 billion. Year-over-year up 102% from $1.8 billion. Overall Q4 EPS was $5.99 versus last quarter $5.6, and last year 2019 it was $2.96. Our cash and cash equivalent in Q4 was $22.88 billion, increased quarter-over-quarter by 39.92% from $16.35 billion. Year-over-year increased by 27.69% from $17.9 billion. Account receivable Q4 was $13.37 billion, decreased quarter-over-quarter by 12.85% from $15.35 billion, and year-over-year up 2.4% from $13.34 billion. Inventory Q4 was $8.16 billion. Quarter-over-quarter up 6.28% from $7.67 billion. Year-over-year up 30.23% from $6.23 billion. Short-term loans Q4 was zero. The overall Q4 384 equivalent large panel driver unit shipment was 884 million, up quarter-over-quarter 3.88% from 851 million, and year-over-year up 20.27% from 735 million. Next, let's look at our two major product line sales breakdown. SOC in Q4 was $7.05 billion, down quarter-over-quarter 9% from $7.75 billion, and up 45.81% from $4.84 billion in 2019. Display driver in Q4 was $15.3 billion, up quarter-over-quarter 7.3% from $14.26 billion, and up 32.51% from $11.55 billion. Next, let's look at our 2020 monthly sales. Our monthly sales in 2020 has all outperformed that of 2019. 2020 net sales were $79.96 billion. Year-over-year up 24% from $64.37 billion in 2019. Next is our January sales number. Our January net sales was $8.12 billion. Month on month up 11.17% and year-over-year up 40%. This is another record high for Novatek. SOC net sales were $2.62 billion. Month on month up 9.5%. Year-over-year up 59.79%. Driver IC was $5.42 billion. Month on month up 10.34%. Year-over-year up 36.05%. Next, let's look at our year 2020 year-over-year income statement. Our net sales in 2020 was $79.96 billion, up year-over-year 24% from $64.37 billion. Gross profit in 2020 was $27.96 billion. Year-over-year up 35.62% from $20.6 billion. Operating expense in 2020 was $13.18 billion. Year-over-year up 22.53% from $10.76 billion. Operating income was $14.78 billion. Year-over-year up 50% from $9.86 billion. Net non-operating loss was $229 million. Year-over-year up 440% from $42 million. Net income in 2020 was $11.82 billion. Year-over-year up 49% from $7.93 billion. Overall 2020 EPS was $19.42 versus 2019 it was $13.03. Next, let's look at our fourth quarter year-over-year income statement. As mentioned earlier, the top line year-over-year growth by 35.87%. The gross profit was up by 60.23%. Looking at the operating expense, Q4 it was $3.79 billion, up 31.31% from $2.89 billion. Operating income Q4 was $4.75 billion, up 94.42% from $2.44 billion. The net non-operating loss Q4 was $199 million, down 5.51% from $210 million. The net income Q4 was $3.64 billion, up 102% from $1.8 billion. The EPS for Q4 was $5.99 versus last year Q4 $2.96. Let's look at the income statement for Q4 quarter-over-quarter. The top line I mentioned earlier, there's a growth of 2.05%. The gross profit was up by 12.65%. The operating expense Q4 was $3.79 billion, up 14.26% from $3.32 billion. The operating income Q4 was $4.75 billion, up 11.4% from $4.26 billion. The net non-operating Q4 was $198.7 million, up 70.41% from $116 million. The net income Q4 was $3.64 billion, up 7.02% from $3.4 billion. The overall EPS for Q4 was $5.99 versus last quarter $5.6. Let's look at the sales breakdown by product. As you can see, SOC accounts for 31% of our total sales, and the driver accounts for 68%. You can see for the last four quarters, we've been experiencing growth every quarter. Finally, let's look at some of the financial numbers. As you can see, since we have no short-term loans, our net cash position end of last year is $22.88 billion, increased of $6.5 billion. Account receivable is $13.37 billion. It's down by $1.97 billion. Inventory is $8.16 billion, increased of $482 million. Now I'll turn over the call to our Vice Chairman, Mr. Steve Wong, to provide us more details on Q4 results and Q1 guidance. 接下来，我们请我们的王副董针对Q4的结果做进一步的说明，同时也报告Q1的展望。
Good afternoon, everybody. 大家午安。我想剛剛建新已經跟大家報告了有關我們那個第四季的這個一些財務的數字。第四季呢，我們營收做到了NT$224.5億。我想這個也是我們這個季營收來講是應該是新高。淨利方面呢，也是創下新高。第四季的營收呢，較第三季呢稍微有微幅增加。這個最主要是IT的產品，像Notebook、Tablet，還有Gaming Monitor呢，因為這個需求呢看起來還是持續。另外呢，手機的產品呢，在第四季也是出貨旺季，所以我們的這個營收呢大概達到了Guidance的這個上緣。那第四季的毛利率呢，有38.03%呢，這比我們的Guidance呢也增加，較上一季呢也增加了差不多3.58個百分點。這個主要是因為我們的部分的產品呢有反應成本調整這個售價。另外還有一部分就是因為產能也比較緊呢，所以我們調整了這個比較有利的產品組合。主要是因為這樣，所以我們的毛利率呢原來預期的也要好。 那現在展望那個第一國的這個疫苗呢也開始施打，但是疫情呢看起來還沒有完全這個解除，還在這個延燒當中。所以對於這個居家上班呢、線上會議呢，或者是這個遠距學習呢，這看起來呢將來也有可能成為常態。那目前觀察呢，相關產品的需求動能呢在Q1第一季呢還是仍然持續，甚至呢現在看起來應該會延伸到這個第二季。那往年來看的話呢，Q1應該都是傳統的淡季，但是今年看起來呢有這種淡季不淡的這個情形。我們現在估計看起來呢，聯詠所有的產品線呢在第一季呢應該出貨呢都會同步來增加，都會同步來增加，包括SOC的產品跟這個Driver相關的這些產品呢看起來在第一季出貨都會同步增加。 那Q1現在我們給的Guidance呢在營收上Revenue上面呢大概會達到NT$252億到NT$260億之間，NT$252億到NT$260億之間，這個是用我們台幣28的這個匯率來估算的話。毛利率呢大概會介於38%到41%之間，毛利率大概38%到41%之間。那盈利率呢大概會介於22%到25%之間。這裡頭來看的話呢，如果以第一季的營收呢看起來SOC的產品的成長率呢應該會比這個Driver的這個成長率來得大。這個最主要是因為SOC的產品的這個Wafer跟那個封測呢現在目前看起來產能比較緊，lead time比較長，所以供貨呢我們在第四季呢有些這個Wafer呢出來呢來不及，所以供貨呢就遞延到了這個第一季。那各位也可以從剛剛我們那個財報裡面的第四季的Quarter End的那個Inventory呢有稍微高一些呢，這個最主要也是因為Wafer出來呢你要去做封裝測試呢，因為Cycle Time比較長，所以呢這個遞延到了這個第一季來出貨。簡單先跟大家報告到這裡。 謝謝王副董。接下來我們用英文來翻譯剛才所講的。
Our first quarter revenue came up to $20.45 billion and the margin went up to 38%. Both of these were record high for Novatek. The moderate growth in Q4 was mainly driven by the following reasons: the IT-related applications like Notebook, Tablet, Gaming—these demands actually driven by the COVID-19 actually continue to be strong in Q1 and Q4. Q4, as everybody knows, is the high season for smartphones. Due to the above two reasons, our revenue reached the higher end of our Q4 guidance. As to Q4 margins, our margin was 38% up from 3.58 percentage points year to year. This is mainly due to the, first of all, we adjusted our ASP to reflect our rising costs. Secondly, due to the tight supply, we have adjusted our production to more favorable and better product mix. Looking at the outlook for Q1, even though the various countries have started to provide vaccination, but the global pandemic is still far from over and still spreading in various countries. Working from home, learning from home, or web meeting will become a norm. Thus, we see the demand for Notebook, Tablet, Gaming Monitor, and it's maintaining its strength in Q1, and we're expecting it to maintain its momentum till Q2. Normally, everybody knows that Q1 is usually a low season, but this year we are seeing strong demand in Q1. All our product lines are expecting to grow, both the SOC and Driver IT lines. Based on the above scenario, our guidance for Q1 is as follows: revenue will be within the range of $25.2 billion to $26 billion, and this is based on an exchange rate of 1 to 28 dollars, $25.2 billion to $26 billion. Our gross margin will be 38% to 41% range, 38% to 41% range. Operating margins will be from 22% to 25% range, 22% to 25% range. Due to the tightness in the supply chain for SOC for both foundry and the backend, the lead time has been extended. Therefore, our SOC product delivery has been postponed to Q1. Based on this, we are expecting our SOC line to grow stronger growth than the rest of the other line. SOC will be the strongest, second will be the large panel driver, and then the small size, small and medium size driver. That's the review on the Q4 and the first quarter guidance. I will now move on to the Q&A sessions. Please be reminded to send in your questions, and Tony will process and then read them out one by one. Before the questions coming in, I think we already have some questions, so I'll ask Tony to read them out. 接下來我們是Q&A的sessions，希望大家如果有問題的可以透過那個用文字的可以傳過來，我們的Tony會幫忙整理再幫大家來問。我目前手上已經有一些的問題，那我們就請Tony這邊先來問。那Tony會用中文跟英文來問，那會由我們的副董事長、我們財務長，還有我本人一起來回答各位的問題。我們請Tony這邊。
谢谢David。那这边我们先整理到一些关于第四季财务数字的问题。那第一个问题是关于这个总量率的毛利，那刚刚副董有提到主要的因素。那不知道是不是可以补充提一下关于这个NRE的金额在第四季，那这个金额跟之前相比是怎么样。我们第四季的NRE收入是¥1.19亿，那去年全年的NRE收入大概是接近¥6亿。 Okay, the management already mentioned about the key factors for the record high gross margin in Q4 and exceeding the guidance. Can you also provide more detail about the NRE amount in Q4 versus the first three quarters of the whole year? The NRE for Q4 is around $119 million, and the overall 2020 NRE roughly around $600 million. 第二个问题是关于营业费用率的，那第四季这个百分比从第三季的15.1%增加到第四季的16.9%。那如果我们看金额的话，注意到研发的费用有增加¥4亿多，想请教财务长这个主要的因素是什么？第四季的营业费用比第三季增加，最主要还是研发费用的支出，还有管理费用增加所致。我想这个研发费用，这增加的主要也是为了未来的这个产品，投入了一些这个费用。我想这个对我们未来长期的这个产品的竞争力的提升应该是有些帮助的。
Yes, we noticed the operating expense in Q4 increased from 15.1% in Q3 to 16.9% in Q4. In terms of the amount, the expense also increased over NT$400 million quarter over quarter. Could you provide some key factors about this jump? The increase in the operating expense is mainly due to the R&D expense, and among the R&D you have the mask and all. So basically the increase in R&D is especially for the future product, and this is to improve, to increase our competitiveness. We have to invest more into the R&D. 接下來有幾個問題是關於第四季的產品。那首先是關於第四季我們注意到SOC第四季是比第三季下滑了。那有沒有什麼特別產品造成這個因素？最主要是剛剛所跟大家報告的這個TV的SOC呢，因為這個Cycle Time變長，所以有一些這個交貨呢就遞延到第一季去了。所以第四季的SOC呢，這個營收有稍微下來了一點，那最主要是因為來不及交貨。 那接著投資人也很關心就是說整個去年SOC的成長很亮麗，可以稍微分享一下裡面特別值得投資人注意的幾個產品線，那他們去年的表現情況或大概他們的重要性嗎？如果以幾個主要的產品線來看的話，像以SOC相關的這些產品線來看的話，我想如果說比較重要的應該就是iPhone的相關產品，就是TV啦，Gaming Monitor，Scaler，這個去年應該看起來我們有一些market gain，market share gain，所以這裡去年不錯。如果第二個來看的話呢，應該是有關這個VD的相關產品，就是Timing Controller相關的這些產品。第三個呢應該是這個power相關的這些產品，尤其是在display power這裡的相關的東西。
We noticed the in Q4 SOC revenue declined slightly by 9% quarter over quarter. Could you give some highlights about the key product quarter over quarter trend? Also, could you provide some key highlights for your SOC product for 2020? The reason for the decrease in the SOC revenue by 9% quarter over quarter, this is mainly due to the TV SOC line. As I mentioned earlier, because of the tightness in the foundry and backend, so the overall cycle time actually has been extended. Due to this, a lot of the delivery has been delayed to Q1. This is the reason for the decrease in Q4. Talking about the SOC product line, among the SOC product line, there are a few of them. One of them is the TV controller, and then the gaming monitor, scaler, and these areas we actually had market share gain. The next one is the timing controller, which we also did pretty well. Of course, the other one is the power related, display power related line, which also did well. 那下一個是關於驅動IC這邊，那因為公司報的是整體的驅動IC營收，不知道第四季就個別大尺寸跟中小尺寸的營收季對季的表現是怎麼樣。那關於出貨量的趨勢，在大尺寸還有TDDI跟OLED這邊也可以跟我們分享一下嗎？
以第四季来看的话，事实上刚刚提到SOC的出货是减少，但是Driver的出货是增加的。那这里来讲的话，以增加的百分比来看的话，大尺寸是稍微多一些，中小尺寸是比较小一些，大概是这样子。那OLED的这个DDIC跟这个TDDI的这个出货来看的话，如果以TDDI来看的话，以出货数量来讲，第四季对第三季看起来是，如果overall全部来看的话，大概是持平，大概是持平。那OLED的部分，是稍微有略减一点，稍微有略减一点，QOQ来看的话。
Now we switch to gear to the driver business. Could you provide some bigger trends about the quarter over quarter trend for your lifestyle driver versus more medium size driver? And also some comments in terms of the shipment on the lifestyle driver as well as the OLED and the TDDI for your smartphone? Well, as mentioned earlier, the Q4 SOC side, even though it was down QOQ or Q4, but our driver line actually went up in Q4. And among the driver line, we have the large panel and small medium size panel, and we are seeing, we saw our large panel driver actually experience a higher growth than the small medium size driver. And among the small medium size driver, we have OLED and TDDI product line, and the TDDI product line is kind of flat. The OLED driver was down slightly, so that's basically the two main product lines. 那剛剛提到第四季的這個驅動IC這邊，也可以稍微回顧一下這個在大尺寸跟中小尺寸這邊去年整體的情況是怎麼樣呢？那尤其是您在OLED跟TDDI的出貨量或者是成長。
TDDI在去年如果以大尺寸跟中小尺寸来看的话，可能大概占比大概应该是各半吧，大概就应该是各半吧。那2020的Aero跟OLED Driver这边的成长，今年来看的话，2020年来看的话，大尺寸的出货量跟年成长，以LDDIC的话，应该是出货应该是大概持平吧，或者稍微下来一些。那最主要的原因是因为有些产品用GOA来生产，就是Gate，所以Gate的出货数量事实上是减少的。但是在Column，这就是所谓的Source Driver这里，我想应该是有稍微增加的。
Could you also provide some overall review on your driver business, such as the lifestyle driver versus small medium size driver, and also a little bit more color on the OLED and the TDDI for smartphone for overall 2020? In 2020, the overall large panel driver and the small medium size driver, they account for roughly 50-50% of the driver line revenue, okay? Looking at the large panel driver, what we are seeing is that the overall unit shipment, it's kind of flat, and mainly it is due to the large panel driver, the trend towards the gate on array, which it doesn't need a gate driver. So basically the gate driver unit shipment has come down a lot, but the overall source driver has increased quite a bit. So that was the situation in 2020 among the large panel driver. 可不可以更正一下？如果以第四季来看，因为他这个是问的是第四季吧，这是2020年嘛，2020年。如果以2020年来看的话呢，大概占营收的百分比，中小尺寸会略大于大尺寸，这样才对。OK，因为我刚刚以为是第四季。
Then the large panel and small medium size panel revenue is pretty much 50-50, but if for the overall 2020, the small medium size revenue will be a little bit higher than that of the large panel driver. 那下一個也是剛剛副董有提到的這個存貨的問題，那您這邊剛剛提到的第四季的季底的增加，剛剛有提到關於SOC還有其他的因素嗎？那主要就剛剛提到的SOC的相關的這個產品，因為backend的packaging他的這個cycle time變長了，這個capacity也比較緊，packaging的capacity也比較緊，所以有一些這個變成是到存貨裡面去了。
We noticed your inventory at the end of Q4 increased 6% quarter over quarter. You also mentioned earlier partially came from the longer lead time due to the tight constraint on the packaging side for SOC. Are there other reasons for this inventory increase? Well, it's pretty much due to the SOC line cycle time has been extended, and this has especially at the backend packaging side. The capacity is pretty much very tight, and so the cycle time has been longer than normal, so these have been delayed, and this caused the inventory level to go up. 那最后一个关于第四季的问题是关于业外，那我们注意到第四季的业外的金额亏损大概接近2亿，也比第三季的1亿多一点多。那请问这个主要的因素是什么？这部分主要是因为台币汇率在第四季比第三季升值所造成的兑换损失，那兑换损失金额大概是2.17亿。
We noticed your operating loss expanded to almost $200 million in Q4, up from about $120 million in Q3. What are the major reasons behind the quarter over quarter increase? Basically this is mainly due to the continued NT dollar appreciations in Q4 versus Q3. 好的，那所以Tony是有any more questions on the Q4 review？好的。第四季的問題差不多都結束了，大家比較多的問題主要還是問前面的展望的部分。Let's move on to the outlook, okay? 所以在我們討論個別產品的時候，我注意到大家最多的問題也是最近的話題，就是關於產能的情況。那也許我們先請管理層對產能這邊的情況，那尤其最近也很多關於車用半導體的供應造成的排擠，想請管理層先跟我們分享一下整體的情況。由於這個事實上現在8吋12吋的產能都很緊，那可能也因為這樣影響了這個部分的這個車用的這個供應，尤其車用的這個相關的產品，它的這個驗證的認證的時間呢又比較長。所以在這裡因為車子最近的這個需求回溫呢，可能短時間內供應不及。那這個車用的這個供應呢，因為比較緊，這個也不是只有車用，現在看起來所有的相關的這個供應呢，事實上也都蠻緊的。所以我們也是覺得這個在短期內這個產能的這個供應呢，看起來還是會持續一段時間，應該還是會持續的緊一段時間。
Before we ask for the outlook, a lot of questions is more centered on the supply side, and particularly given that we saw a lot of news on the foundry techniques on the back of big recovery on the automotive semiconductor demand. Could you provide some comment on your supply side situation? Yes, as everybody knows, the 8-inch and 12-inch both this foundry side is pretty tight, and of course this has impacted the auto product line, the supply. As you know, the automotive, the qualification approval, it takes a longer period of time. So currently the supply side is pretty much very tight, and the situation will remain like that for a while. It cannot be resolved in a very short period of time. 那我们现在来谈一谈关于这个第一季的前景。刚刚管理层有提到第一季以SOC这边的成长相对是高于Driver，那可以就这个其中的几个主要的大的产品线，尤其是刚刚您特别提到的这个像是TDDI、SOC这边，可以提一下第一季的情况，还有全年的成长的展望呢？ 以SOC的产品来看的话呢，我们今年看起来应该这个展望应该相当不错。现在看起来的话，跟SOC相关的产品呢，今年应该都会有这个不错的这个成长，这个包括了TDDI、SOC，还有这个Power刚刚提到的。另外还有就是最重要的，我们今年在安防Surveillance方面相关的产品呢，今年应该也会有不错的这个成长。
Yes, let's actually talk about the product outlook for first quarter or even for 2021. Could you provide more color for your major product line within your SOC business? Around the SOC side, as mentioned earlier, TV is a big part of our SOC side. TV, we are expecting it to grow this year, and then besides TV, we also have the power related, which we are also pretty positive. Of course, this year we'll have another product line that we'll be expecting significant growth, and that will be the surveillance. 您刚刚提到了这个TDDI、SOC的话，可以就这个在客户这边的进展再多提一点吗？因为去年您好像有提到主要是韩系客户的成长幅度比较高。今年看起来，当然除了韩系的客户呢，我们也有一些韩国以外的这些客户，我想今年在这上面应该都会有不错的这个成果。
For TDDI, SOC, last year we knew a lot of growth came from your customers in Korea. How about this year's growth opportunity in Korea, South Korea, as well as other countries? Well, the Korean market, we do expect it continues to grow, and it should be positive. But besides the Korean market, I mean, we are also making good progress outside the Korean market, for example, in China and the other area. 现在其实比较感觉要赶快解决的还是这个产能看起来还是比较紧一点，这个现在还是要赶快来解决这个问题是重点。 I think the main focus that we want is how to resolve the supply issue on the foundry side and on the backend packaging and testing side. That will be our main focus. Basically, the demand is very healthy and strong, and the only issue will be the supply side. 刚刚管理层有提到这个SOC这边除了TDDI、SOC外，Power的成长今年也是会很亮丽。那这个之前投资人比较不了解，可以再多分享一下这个主要成长的动能是来自于哪里？这个Power主要我们现在的focus也是跟display相关的。那这个除了原来的这个面板相关的display相关的这些的Power chip以外，今年我们应该还会增加一些跟手机相关的这些的这个在display相关的这些的应用，手机display相关的这些应用。
Now, in addition to the TDDI, SOC, management also mentioned about the growth at the SOC coming from Power. You guys are less familiar with your power business. Could you also provide more color on your power business outlook? Well, our power line was mainly focused on the large panel display related, but now we are also moving to the mobile smartphone display related power. So we are making progress in the various areas. 关于SOC另外一项，刚刚管理层有提到的就是关于安防这里的SOC。那可以再多分享一下吗？因为过去这一两年整个产业链算是动荡的比较激烈一点。有关surveillance方面的这个相关的这个market事实上我们已经cook了一段时间，这个不管是所谓的front end或是backend这里呢，我们应该都有一些不错的这个收获，这个收获呢看起来应该今年可以有一些成果，今年应该有一些成果。那除了这个安防以外呢，在相关的车子的这个行车记录器的这些相关的这个应用呢，应该也有不错的这个会有一些不错的这个成长。
Now, switch gear to your surveillance SOC. You mentioned about the growth opportunity will be pretty impressive into 2021. Could you provide also more color on this business? As you know, we've been working on the surveillance solution for quite a while, and currently we're making a lot of progress no matter whether it's on the before market or after market. So we are expecting this area to grow, and besides that, we also used to have a lot of the dash camera for automotive, and it will continue to grow. 那除了这三項 SOC 的產品外，您這邊還有其他的新產品或者是投資人注意的一些成長機會嗎？基本上 Novatek 我們是 very focus on 這個 smart video and image 相關的這個應用產品，另外還有一個就是 display technology，包括 no matter 是 LCD、OLED 或者是 LED 這些相關的呢，我們會持續來投入研發，提升這個在顯示的這個 display quality PQ 的這個 image 這個 PQ 的這個 quality 這裡。
As for SOC product, you know digital industry business line with strong momentum in 2021. Do you have other products to highlight or share with investors for the growth opportunity? As everybody knows that Novatek, you know we've been focusing on two major areas that would be the smart display and smart image processing or video, and also of course these are all for different various display technology, okay? So we'll continue to focus in these areas to provide a lot of good solutions and high performance, especially on the picture quality. So we'll continue to focus on these areas. I mean there's a lot of things to be done in those areas, and new technology is coming up. 那个各种不同的这个应用。 Covering all the different applications and different display technologies. 那这边是已经把大部分关于SOC的问题。还有没有关于那个SOC这边还有没有？先把SOC问完再。您这边可以再分享一下关于供应链这边，您有提到是晶圆跟封测这边，那对有没有特别可以谈细一点，大概是什么样的制程或是在什么样的产品对你的影响是比较大的？
目前看起来就是有关这个BGA相关的这些的packaging看起来capacity或者需要这个wire bonding的这些相关的，看起来的这个capacity还是很紧，这个cycle time也是比较长。Yeah, about question about the supply chain constraint, could you also give more color on your supply chain side? Foundry看起来这个不管是8寸或者12寸，不管是什么process node，看起来好像每一个地方都是很紧。Okay, regarding the supplies, the tightness question of the supply tightness, and what Steve just said is that on the foundry side, no matter if it's 8-inch or 12-inch, across the board, all the different nodes, all of them are tight. There's no area where it is not tight, okay? And on the backend side, what we are seeing is that especially on the packaging side, the BGA and a lot of those packaging that relate to wire bonding, and those are very tight, and the cycle time has been extended. 那SOC的问题到目前为止先告一个段落，那我们先转过到这个驱动IC这边，那我们先讨论一下大尺寸的这个驱动IC，可以提一下这个第一季的情况或整个2021年呢，那大家也很关心关于量跟价的这个趋势。
由于这个面板的产业呢，现在目前看起来需求也相当不错，刚刚提到了因为这个在家上班啊，这些相关的这些宅经济的应用呢，所以呢使得这个不管是notebook啊，或者是tablet啊，或者是像一些gaming monitor啊，这些相关的这个application呢，事实上需求也都不错，所以呢看起来这个大尺寸的这个DDIC啊，看起来今年应该是会持续来成长才对。那由于现在的这个反而是supply side呢，foundry呢也比较紧，所以看起来就看这上面能够secure更多的capacity来去fulfill这个market demand、customer demand。 Now we switch to the driver side, next up with the life cycle driver. Could you provide some color on your life cycle driver for first quarter or for the full year 2021 in terms of growth opportunity and also breaking down by quantity and versus ASP? 至于有关ASP方面呢，由于这个产能也是比较紧，所以呢我们也是跟客户呢尽量来讨论，来这个协商怎么协助客户呢，来去解决这一方面的问题。所以ASP这里基本上还是是supply demand呢在决定这个。
The current situation what we are seeing is that because of the pandemic, as mentioned earlier, work from home, learn from home, or gaming monitor, and these are actually driving the growth for the large size panel. We are expecting the large size panel because of this COVID, it will continue to grow, and because of this, the demand for driver is also very strong. But the thing is that currently the supply on the foundry side is also very tight, so we need to work hard to try to secure more capacity to fulfill our customer needs. Of course because of this, we need to work very closely with our customer, and if there's a need to increase the ASP or to increase our competitiveness in securing the capacity, we'll try our best to work closely with our customer. So in that case, there is a possibility that the ASP will change accordingly, depends on the supply side. 不过总的来看呢，这个看起来ASP应该是会往上的，因为这个supply比较tight的，所以看起来这个ASP应该会往上。
So because of the tightness, Steve just mentioned that we anticipate that the ASP might go up further because of the tightness in the supply side. 第二个问题还是刚刚关于产能，那刚刚management有提到这个晶圆的产能很紧，那我不知道说公司这边的话有没有什么解决的这个对应的策略，那短期还有中长期有什么样的计划。由于这个目前的产能这里比较紧，所以我们也尽量跟各个不同的这个foundry的公司，这个partner呢尽量来协商怎么去增加这个供应。所以基本上我们有这个分散不同的各种不同的这个来源呢来去协商看看有没有办法去增加这个供应的这个数量。The follow-up question about the supply chain constraint, what's the solution for Novak Tech to start this supply side constraint? Well, you know there's no other way, the only way is to try to work as closely as possible with our supplier and try to secure more capacity as much as possible. The other area that we can do is try to diversify the supply. 下一个问题就是刚刚管理层也提到了这个预期，因为供应链的紧张也预期着这个售价可能还会再涨，可以提一下目前这个受到成本这个上涨的情况是怎么样，那毛利率的趋势会是在大尺寸这边会是怎么样呢？由于刚刚提到了这个demand的增加，demand的这个需求的这个增加呢，我们也是跟客户呢尽量去协商看看怎么样的能够来去解决这样的一个问题，我们也尽量跟我们的供应商supplier这些能够协商来去提高这个增加在这个相关应用的这个供应。
Just also want to give us some color about the cost trend as well as the impact to your margin. Well, I think the main thing that we need to do is to resolve the supply issue, so I think we'll work together with our customer and along with our supplier, okay? So see how to find ways to improve the supply or to provide the best service to our customer. I mean this is very dynamic, so we need to work on a daily basis. 那還有一個問題就是也是今年初因為整個的面板供應很緊張，那也有消息出來說三星預計關廠的部分也往後延遲了，因為自己的需求供不應求，那不知道這個會對聯詠的一些business會有影響嗎？因為韩國現在在大尺寸方面的這個生產的capacity事實上相對來講百分比是在下降的，所以我覺得這個而且大方向應該是不會改變的，所以短期內我們是看不到這個會有很大的這個影響。
According to the recent report, Centon has decided to keep off part of LCD capacity for internal use. Do you see any impact to Novak Tech business? Well, looking at the Korean panel supply, and we have seen that large panel supply, the market share actually is coming down over the past many months. But even though it has been delayed, but I don't think there will be any change to the trend. I think it's just a matter of time. From our point of view, we don't see really any impact on our business. 再看一下还有没有关于这个大尺寸的问题。大尺寸问题这边都已经结束，那我们现在转到关于中小尺寸这边。第一个问题就是想了解一下，不知道第一季这个TDDI的出货量的情况怎么样。您对全年您的联咏的出货量或对市场的成长或尺寸大小有一个估计吗？ 以第一季来看的话呢，由于第一季又有一个春节过年的这个有些工厂呢也放假，所以看起来这个要增加供应量有相当的又加上这个产能的这个限制，所以要增加这个供应量呢是有一些问题。我们现在predict那个QOQ来看的话，第一季应该还是持平左右，应该还是在持平左右TDDI这里。全年这里的出货量呢，我想现在要解决的还是这个有关supply这里的问题，所以我们也是尽量跟这个foundry厂呢现在就尽量协商看看有没有办法增加在这上面的这个供应。这个主要应该是在supply side上面会有一些这个限制，所以没有办法达到我们所需要的这个数量。 对市场出货量，觉得今年还会市场会成长吗？ 如果以我们的出货量来讲，这个是由供应，那看有没有办法解决来决定。如果以市场的demand来讲的话呢，应该是今年还是会大于去年的。
Let's switch to the three small medium size driver. The first question is about the TDDI. Would you provide some guidance for your first quarter shipments as well as the whole year shipment target or even your expectation for the overall TDDI market? Looking at Q1, because of the Chinese New Year, there will be a less number of working days, and then upon that, you have some supply tightness, so it's very difficult to expect TDDI to QOQ to grow. So we are expecting TDDI shipment QOQ to be roughly flat. As for the whole year 2021, it will really depend on the supply. As for demand, definitely it will be much higher than 2020. So the overall shipment as a whole, it really depends on the supply. 第二个问题还是关于这个TDDI的，刚刚有提到整体的这个晶圆或封测的紧张，但是最近也更多是这个在像是台积电的供应影响到厂商的这个TDDI。不知道在这边您的情况会是怎么样，也想对于这个售价这边跟毛利率的影响也可以分享一下吗？ 车用的这些的这个转进生产确实可能会影响到一部分有关这方面的这个生产，就是driver方面的这个生产。事实上我想这个会有这样的一个压力，会有这样的一个压力。至于说这个售价的问题或者是毛利率的问题，这个基本上还是由这个供需来这个市场会去看这个供需的这个部分来决定。基本上我们也是希望尽量能够去满足客户的需求，然后尽量能够看用什么方法来解决这个的问题，跟供应商这里做一个协商。事实上现在所有的限制呢，基本上还是在这个Capacity的这个constraint。
Follow-up question on TDDI. Could you also give more color on the supply side? Also the cost and the ASP trend as well as the impact to your margin. Well, I think the automotive demand, I mean if. Definitely will have some impact on the overall supply side, and it will have some stress on everybody. So our main job is, as I mentioned earlier, need to work closely with our customer and try to find ways to resolve the issues. As for the ASP, it will all depend on supply and demand. It's hard to say. So we'll see how things turn out, but basically it's all supply and demand issues. 那下一個問題是大家也很關心您我們這邊的OLED的這個出貨量，那可以提一下這個第一季的出貨的趨勢，那還有整個今年全年有什麼目標嗎？或者有機會逐季成長嗎？因為在上一次的說明會的時候，管理層有提到第二季看起來這個design的activity已經有機會回到去年的季出貨量的水準。 先回到第四季，因為對於第四季呢，因為有一些客戶的這個出貨的關係，事實上我們第四季在OLED的，我剛剛提到的，我們事實上相對第三季是出貨量是減少的。但是以第一季來看的話呢，現在看起來這個需求有回來的這個趨勢，所以我們覺得第一季的出貨現在看起來應該會比第四季要增加，應該會比第四季要增加。至於說2021年呢，我們現在來看的話應該是會非常有機會，會大於這個去年，會大於這個2020年。那當然這個也是產能也是比較緊的這個原因，所以我們現在是來盡量再協商看是不是可以增加這方面的供應來滿足這個市場的這個需求。
Now also the next question is about the OLED driver, which is based on very interesting. Could you also provide the shipment trend in the first quarter or also some outlook for your 2021? Well, as mentioned earlier during the Q4 period, I mean due to some reason the OLED shipment actually declined for Novatek. But looking at Q1, we are expecting the shipment to recover and even better than Q4, okay? Should be better than Q4. But as for 2021, there's a very high chance it will be much better than 2020, and it will depend on supply, okay? Let me add some comments. 有关这个OLED这里呢，我们最近也发现到呢，会使用这个flexible OLED的客户呢，现在看起来有增加的这个趋势。We are also seeing that there's a lot of customers increasing the adoption of the flexible OLED solution. 那下一个还有一个关于OLED TDDI的问题，那您目前主要的还是以中国客户为主，那不知道有没有对中国客户的这些合作的机会，还有您之前有提到OLED TDDI这一方面可以告诉我们有没有进一步的时间表。目前来看的话，当然我们跟中国的这些客户呢，基本上都有这个长期的这个配合。至于说OLED的TDDI呢，这个基本上也要看客户在这边的技术的readiness是怎么样。所以我们跟客户呢，这个在跟面板的这些厂商呢，事实上是在做这个长期的这个配合。那以这个时间表来看的话呢，我想我们应该今年会有sample会出来，而且可以在市场上，不过还是要看这个面板在这上面的这个技术的这个readiness是怎么样。
The follow-up question about the OLED driver. How is the opportunity to work with the non-China handset OEM? And also provide some timetable for your OLED TDDI. Well, we've been working very closely with the Chinese panel maker, and we've been working on this for a long period of time. So currently we are seeing good progress in that area. And as for the OLED TDDI, it will really depend on the panel side, their progress. And basically we are expecting to have our sample ready this year. 那关于这个还有一个关于OLED的这个问题，刚刚管理层也提到了供应似乎也是很紧张。那不知道对成本售价或者毛利率的影响会是怎么样呢？Again，因为刚刚提到了这个看起来supply还是很紧，所以我看这个有关这个售价ASP跟这个毛利率也是跟着这个供需的这个情况呢，可能会有一些这个调整。
The follow-up question about the OLED driver pricing. Just given the also tight supply on the supply side, could you also provide some trend on the cost pricing on the gross margin? As mentioned earlier, I mean the overall supply side, no matter 18, 12 inch, all the different nodes or even the back end, everything is tight. So basically this is a similar situation to the large size and the other product line. So our main job is to work closely with our customer and try to secure the capacity. So this is pretty much similar to the other product line. 那最近也提到很多這個車用半導體的供不應求。那我不知道關於聯詠這邊的automotive這邊的driver的第一季成長或全年的成長的展望是怎麼樣？那也出貨會受到供應鏈的影響嗎？ 目前來看的話呢，車用的這個DDIC事實上也是供應也是非常的緊，那需求也是相當的不錯。但是Novatek呢，事實上我們就已經本來就expect今年2021年呢，會比去年要來得好。雖然去年的這個因為這個新冠肺炎有一段時間是demand是下來的，不過我們在過去呢，在這些新的design in呢，事實上已經cook了大概有兩年了。所以這樣的一個成果呢，應該是今年呢，會顯現出來。由於我剛剛所提到的車子的application呢，這個認證的時間呢，都相當的長。所以在這裡來講的話，我們今年應該是會expect會有不錯的這個成長。只是剛剛提到的這個供應的問題呢，還是要希望能夠協商來解決。
Now also let's switch to the automotive driver. Could you provide some color for your first quarter growth of the whole 2021? And also the supply side, also comment on the supply side as well. Well, the overall auto IC, actually automotive IC is tight. I mean for the display driver is also very tight. We did expect our OTO product line to grow this year basically because we've been cooking, designing in, and going the whole process for more than two years now. So we do expect our automotive DDIC line to grow this year. And of course, again, the tightness in the foundry side is also the issue that we need to resolve and to work try to squeeze out most capacity. But we do expect our automotive line to grow this year. 最主要是剛剛說以上所談的有不少都是用到這個8吋的wafer。那因為現在8吋的wafer很緊，所以不管是OTO的automotive的driver啦，或者是large size的driver啦，只要使用到8吋的，事實上相關的這個應用也都是供應也都是很緊的。
Steve just mentioned that most of our automotive display IC actually uses the 8-inch wafer. So basically as long as it's 8-inch, it is always, I mean, it's been tight for a while. So yeah, it will be an area that we need to work hard to resolve. 那投資人對於您這個今年新的產品這邊也想了解一下這個進展。像第一個關於指紋辨識，像平價的OLED或者這種三合一的整合的FTDI，不知道目前有進一步的這個時間表了嗎？以這個平價的這個OLED的這個FPR，這個目前來看的話，我們現在在由於這個去年第四季有一些變化，所以我們現在第一季回來，在一些客戶的design in上現在看起來進展的還不錯。目前來看的話應該非常有可能在Q2呢，可以進入這個MP量產。
Now also touch about your other business. Could you provide some update on your fingerprint, including your under display fingerprint as well as the 3-in-1 integrated product? The mention about the fingerprint, the under display, last year actually we were designing in, things were moving on pretty smoothly, but due to the changes in the environment, so it was delayed. So we started to readjust, and currently there's a very big chance that our fingerprint will go into mass production in Q2. 至于那个大面积整合的这个所谓的三合一，目前来讲我们主要是跟这个一些面板的panel maker呢，这里在这个持续的研发当中，这里还是非常这个depend on这个面板在这上面技术的这个进展的这个情形。不过我们的IC是已经ready了。
As for the FTDI or the integrated solutions of touch driver and the fingerprint, we are working very closely with our panel maker, and on our side, our solution is we have a very good control of our solution, but we need to work very closely with our panel maker, and there are some barriers that they need to overcome. So currently things are moving on smoothly, but it still needs some time. 那投资人还有关于这个之前您提过的一些其他的产品，比如说wearable或是mini LED，这边也可以给我们今年的展望吗？谢谢。 有关wearable的OLED DDIC，目前我们看起来这个一些的新的机种new model的design in呢，都进行得相当不错。所以看起来应该今年内都会陆续进入量产，应该是没有问题的。至于说这个mini LED的driver方面，当然这个是分成两方面来看，一个是back light，一个是display这里。目前我们在这两个的application里面都有这个小量的出货，已经开始出货了。
Could you also talk about the other new products such as wearable OLED driver as well as mini LED driver? Our wearable OLED driver solution has, I mean, it's already been introduced, so it's been designed in to various customer sites. Yes, we are expecting it to go into mass production this year. As for the mini LED side, it has the two product lines; one is for the backlight application, one is for display. Both of these lines, I mean, both of them are already in small volume production now. 关于中小尺寸这边，另外一个大家也很关心的就是说，不知道这边您联咏跟这个新分出来的荣耀这边的互动的情况怎么样。那不知道会有出货或对您的主要产品今年的贡献情况会是怎么样。 我想我们跟所有的手机的客户呢，应该都是采取这种长期的这个配合。所以只要是做手机的，我想都是我们这个想去做长期配合的这样的一个这个客户。
Also, could you talk a little bit about a lot of recent news on there, which was sold from Huawei? Could you also provide some comment on your activities with this new brand? For Novatek, we always want to work with everybody, okay? So we try to build a long-term relationship with everybody. So we'll continue to do so. Any more questions on this investor? Have any more questions? 关于这一块有投资人问就是说，不知道管理层可以分享一下目前感觉手机的需求或者库存的情况吗？以现阶段来看的话，我们觉得客户的需求呢，还是非常的这个殷切，可以这么来说。那由于这个供应的这个没有办法去满足这样的一个需求，所以客户呢，尤其是这个所谓的系统品牌系统厂呢，看起来对这样的需求呢，都还是持续。那目前短期内来看起来，他们应该库存上应该是不会有很多才对。 The investor also wondered, whether Novatek has any view on the inventory level for on the smartphone supply chain? What we've seen is that our customer on the smartphone and the mobile driver side, there's still very strong demand requests coming in from a customer side. So we don't think the inventory will be an issue on our customer side. 我们再看一下有没有关于这个中小子这边的问题。那看起来关于产品的问题这边好像我们都已经cover到了，不过大家还有几个关于因为第一季的整体的营收毛利率都非常的亮丽。那投资人也有几个等于想多了解一下，第一个就是说管理层这边觉得这样的一个亮丽的毛利率今年有可以维持吗？或者是说至少感觉这个第二季的趋势会是怎么样？ 目前来看，由于这个供应还是会非常的紧张，第二个我们的这个新产品呢，应该都陆续进来，进入这个市场也开始进入量产。所以在毛利率上面呢，这里我们有这个不管是毛利率或者是这个所谓的revenue这里呢，应该都有不错的这个成长。当然这个我刚刚提到的主要还是在supply side的这个有一些限制呢，使我们呢，在这里看起来这个还是会有一些成长上的这个限制这样。
Yes, investors are very impressed by our first quarter guidance for both revenue and gross margin. Therefore, they wonder if this kind of gross margin can be sustained into 2021 or at least into the second quarter. Well, as you know, besides the tightness in the foundry, we have also introduced a lot of new products in the market. So we do expect our revenue and margin to have a good performance this year. Of course, again, we need to resolve the supply issues. But as a whole, we do have expectations for our revenue and margin this year. 那也有投资人想，刚刚管理层也提到了，刚刚不管对毛利率还是保持一个审慎乐观，好像也提到了营收。那大家觉得您第一季算是淡季不淡，有一个很亮丽的成长。那您觉得今年往后看还是会有一个正常的季节性吗？也就是说第二季还有机会，有机会是逐季有机会往上走吗？ 这个回答还是我刚刚所提到的，目前我们正在想方设法来解决这个supply上的问题。但是期待上呢，还是希望说第二季可以有一些持续的这个成长，希望是这个样子。 Follow-up questions on the revenue side. You just provided a very strong above ten-year revenue guidance for first quarter. Therefore, investors wonder if this kind of momentum could be carried into the second quarter. We hope so. 我们也是觉得那个supply的。
Yeah, we need to resolve the supply issue, but we hope Q2 will continue to good performance in Q2. 那下一個問題是比較關於這個margin的地方。那不知道因為第四季有跳上來，那第一季看起來營業費用率也維持在一定的水準。那不知道全年這個管理層這邊可以給我們有一個營業費用率的一個指引，或者對全年所得稅率也有一個指引嗎？ 我們第一季的營業費用率大概是介於16%到16.5%之間。那第一季的匯率其實是用大概28對1美元去預估的。那由於我們並沒有預估全年的營收，所以不會有全年營業費用率的指引。不過過去三年的營業費用率大概介於16%到17%之間，這是可以參考的。關於所得稅率，所得稅率我們大概2021年預估大概是19%左右。 For the operating expense, the first quarter will be around 16% to 16.5% based upon FX rate at the 28 NT dollar per US. We are not providing the four-year operating expense guidance here, but we did mention over the past three years operating expense stay at about 16% to 17%, and this should be a range to refer. And also, in terms of tax rate for the whole year, we expect the tax rate in 2021 will be around 19%. Any more questions? It's about time here. There is a few more minutes for extra one or two questions. 管理層這邊有沒有什麼特別要補充的？ Thanks, Steve. 這邊對於今年的這個公司的經營的這個挑戰，那經營層剛剛都提到是關於供應鏈這邊的情況。那覺得有其他需要注意的地方或者風險嗎？ 我想最主要還是今年要解決的主要還是supply chain這裡的，不管是前段或者後段，這個都是我們現在在努力的這個方向。當然對我們來講最重要的還是回歸到產品的研發技術的這個深耕，我想這個還是最主要的競爭的這個core competence。
Management mentioned about a lot of business opportunity will be constrained by the supply chain side. Just wonder if any other operating risk to highlight for 2021? I think the main thing will be still on the supply side that we need to resolve. The other thing is that for an IC fabric design house, it's always to improve our core competence, and this is always our job. So we'll continue to invest into the R&D, as mentioned earlier, to improve our competitiveness. 那另外一个关于整体2021年，刚刚管理层有提到对SOC今年的成长是蛮正面的。那不知道是不是对大尺寸还有中小尺寸的情况，可以也分享一下，或者是说对今年这三个产品线的成长有一个排序吗？ 以今年来看的话，事实上大部分我们要解决的还是刚刚讲的这个supply的问题，会大于这个demand的问题。那如果说以这个我们SOC的这个成长来讲，今年看起来，如果刚刚上面所提到的，看起来在这个各个方面呢，应该都会有不错的这个成长。只要这个看起来今年的这个IT的相关的这个产品呢，看起来应该还是会持续。所以不管在大尺寸或者是中小尺寸呢，看起来这里应该还是我们还是认为应该还是持续看好的。
Just want to recap, can you share some overall outlook for your 2021 among your three business lines: SOC, life cycle driver, and small medium size driver? For our SOC line, we do expect it to have a good growth this year in 2021. As mentioned earlier, IT-related product demand is still there. So the market is there, so we'll try our best to grow ourselves. I think this is pretty much the last question. So thank you so much for joining in, and wishing you all a very happy Lunar New Year. 谢谢大家，祝大家这个新年快乐，新春愉快。