00:00When we talk about your clients, for example, they're the huge names like TSMC, Tokyo Electron, NXP Semiconductor.
00:07How excited are they about this huge AI demand actually being sustainable?
00:13I think everybody is very excited about this huge AI demand throughout AI value chain.
00:19Because now you'll see AI agents going everywhere.
00:24And then the next step is probably physical AI.
00:28And if that comes, you know, robotics and, you know, edge device and also a mobility is all require AI
00:36semiconductors.
00:37So I think people are playing in this field are very bullish about the demand going forward.
00:42Where are the choke points? What's the reasoning behind, especially if we get a settlement on the Middle East conflict?
00:48We still have like copper laminates uses copper. So metals price also increases.
00:54So I mean, now everything, you know, price is going up. So we just would like to make sure also
01:00electricity is expensive these days.
01:03And I think after this July or August, all the electric company will increase the price.
01:10When it comes to how your business positions from here, what are some of the bright spots then?
01:15Bright spot? Of course, the increasing demand for it's very strong.
01:19You feel it like, you know, the forecast is upward adjusted every day, basically.
01:25So it's AI demand is very, very strong.
01:28When it comes to China, for example, you recently increased production capacity there.
01:32At what point do you make a decision on another round of investments?
01:37I think it depends on the demand in China.
01:39What we are doing is, of course, Chinese local semiconductor players are growing, will grow definitely.
01:46So we would like to take advantage of that growth.
01:50And our strategy in China is procuring China, producing China and selling China so that I'm seeing China as a
01:58block.
01:58I don't want to trade because there will be a risk of supply chain.
02:03Producing in China does entail risks, especially around IP?
02:06We are mainly producing relatively commoditized products in China because cutting edge is not still there, meaning, you know, that
02:16their AI technology compared with, like, US AI technology, they are still behind.
02:22So we don't really need the cutting edge materials yet.
02:24And we continue to see these export controls between China and the West.
02:28Right.
02:28Doesn't that give you a headache as a CEO of a major company?
02:31Well, even though I am optimistic, I'm thinking about that.
02:36And, of course, I'm seeing China is one block.
02:40Japan and US and Korea as another block.
02:44So hopefully Taiwan joins that.
02:47But we still have to have some risk in Taiwan.
02:49So we have to think a little separately.
02:51So these three blocks, we try to separate as much as possible, meaning I would like to make in China
02:59and sell in China.
02:59And Japan and Korea and the US, I'm OK with trading.
03:04What are the risks in Taiwan?
03:06Risks in Taiwan?
03:07You know, we don't know what China will do.
03:10So we have to think about that.
03:12So you're trying to diversify your client base, your business?
03:17Yeah, but TSMC is so big, you know, we have to be in Taiwan.
03:20So we are in Taiwan.
03:21But we have, you know, risk management process if something happens.
Comments