All right. So, I think this is the question we're all trying to figure out. Does this hawkish cut, the potential of it at least, what does this mean for the markets and the idea that we're not quite clear on when we're going to get that next cut, if we do at all. >> Frank, I think the market is looking for more stimulus and if we're going to get this sort of hawkish cut, that's the widely expected outcome.But if there is no sort of roadmap forward for additional cuts uh heading into January, heading into uh ...

Financial Data and Key Metrics Changes - Revenue for Q2 2025 was $2,209 million, down 1.7% sequentially [5] - Gross margin decreased to 20.4%, down 2.1 percentage points sequentially [6] - EBITDA was $1,129 million with an EBITDA margin of 51.1% [6] - Profit attributable to the company was RMB 132 million [6] - Total assets at the end of Q2 were $49.4 billion, with total cash on hand of $13.1 billion [6] - Total liabilities were $16.7 billion, with total debt of $11.9 billion [6] - For the first half of 2025, revenue was $4,456 million, up 22% year over year [15] - Gross margin for the first half was 21.4%, up 7.6 percentage points year over year [15] Business Line Data and Key Metrics Changes - Blended ASP decreased by 6.4% sequentially, while wafer shipments increased by 4.3% to 2,390 standard logic eight-inch equivalent wafers [10] - Revenue from automotive electronics shipments grew by 20% quarter over quarter, primarily from various types of automotive grade chips [12] - Revenue from eight-inch wafers achieved a 7% quarter over quarter growth [13] - Revenue from CIS increased over 20% sequentially, while RF revenue also showed sound growth [14] Market Data and Key Metrics Changes - Revenue distribution by region: China 84%, America 13%, and Eurasia 3%, with no significant changes quarter over quarter [11] - By application, wafer revenue from smartphones, computers and tablets, consumer electronics, connectivity and IoT, industrial, and automotive accounted for 25%, 15%, 41%, 8%, and 11% respectively [11] Company Strategy and Development Direction - The company aims to exceed industry average performance in the same market for the year [17] - Focus on deep collaborations with domestic customers to gain market share in analog chips [13] - The company is preparing for increased output to mitigate the impact of rising depreciation costs [16] Management's Comments on Operating Environment and Future Outlook - Management expressed concerns about potential impacts from tariff policies and market stimulus on future demand [17] - Despite concerns, the company believes that the slowdown will not significantly impact capacity utilization due to strong demand [17] - Visibility for Q4 remains limited due to potential slowdowns in rush orders and shipment pull-ins [16] Other Important Information - Total capital expenditure for the first half of the year was $3,301 million [15] - Guidance for Q3 2025 indicates expected revenue growth of 5% to 7% sequentially, with gross margin anticipated to be between 18% to 20% [8][16] Q&A Session Summary Question: What are the expectations for revenue growth in Q3? - The company expects revenue to increase by 5% to 7% sequentially in Q3 [8] Question: How is the company addressing the challenges posed by tariff policies? - Management is closely monitoring customer feedback and evaluating the impact of tariff policies on demand [17] Question: What is the outlook for capacity utilization in the upcoming quarters? - The company believes that strong demand will help maintain high capacity utilization despite potential slowdowns [17] Question: Can you provide insights on the automotive electronics segment? - The automotive electronics segment has shown steady growth, contributing significantly to overall revenue [12]