Investment Rating - The report assigns a positive outlook for the company, indicating a potential for growth in the semiconductor sector, particularly in communication, industrial, and automotive applications [4]. Core Insights - The company reported a revenue of NT$ 11,949 million for FY2025Q1, representing a year-over-year increase of 24.0% and a quarter-over-quarter increase of 3.4%. The gross margin improved to 30.1%, up 6.1 percentage points year-over-year and 1.4 percentage points quarter-over-quarter [2][9]. - The increase in revenue is attributed to the ongoing expansion of consumer stimulus programs in mainland China and proactive inventory management in response to tariff uncertainties [2][9]. - The company’s net profit attributable to shareholders reached NT$ 2,414 million, marking an impressive year-over-year growth of 89.8% and a quarter-over-quarter increase of 30.7% [9]. Summary by Sections 1. Overall Performance - The company achieved a shipment volume of 607,000 eight-inch wafers in FY2025Q1, reflecting a 10% increase quarter-over-quarter and a 29% increase year-over-year. The average selling price (ASP) of products decreased by 5% [2][9]. - Demand for large panel driver IC wafers saw a significant increase, with revenue from LDDI and TDDI rising by 20%, contributing to 20% of total revenue [2][22]. 2. Orders and Demand Outlook - The company currently has an order visibility of approximately three months, with an expected capacity utilization rate for FY2025Q2 projected to increase to between 75% and 80% [3][18]. - There is an anticipated increase in revenue contribution from the 0.5-micron process and power management products due to rising demand from certain customers [3][19]. 3. Capacity and Capital Expenditure Plans - The company plans to maintain an annual capacity of 3,434,000 eight-inch wafers for 2025, with a projected increase of about 1% [20][23]. - Capital expenditures for 2025 are expected to remain in the range of NT$ 60-70 billion, with over 90% allocated for the construction and equipment of a new 12-inch wafer fab in Singapore [20][21]. 4. FY2025Q2 Performance Guidance - The company anticipates a continued recovery in demand for communication, industrial, and automotive semiconductors. It expects wafer shipments to increase by 3%-5% quarter-over-quarter, with ASP projected to rise by 0%-2% [4][21].