Core Viewpoint - The company anticipates a significant increase in annual sales revenue, projected to exceed $9 billion, driven by rising production capacity and demand despite seasonal trends [1]. Financial Performance - In Q3, the company achieved total sales revenue of $2.382 billion, a 7.8% increase from Q2 2025's $2.209 billion and a 9.7% increase from Q3 2024's $2.171 billion [1]. - The company’s wafer sales volume reached approximately 2.4995 million pieces, with monthly production capacity exceeding 1 million pieces for the first time, reaching about 1.0228 million pieces [1]. - Q3 capacity utilization rose to 95.8%, an increase of 3.3 percentage points from the previous quarter [1]. - The average selling price (ASP) increased by 3.8% in Q3, with gross margin exceeding expectations at 22% [1]. Market Segmentation - The sales proportion of 12-inch products increased from 76.1% in Q2 to 77% in Q3 [2]. - By region, sales distribution in Q3 was 86.2% from China, 10.8% from the U.S., and 3% from Eurasia, with a notable 11% increase in revenue from the Chinese market [3]. Product Development - The company’s ultra-low power 28nm logic process has entered mass production, and there are ongoing technological iterations in image sensor (CIS) and signal processing (ISP) processes [3]. - The embedded storage platform is expanding from consumer markets to automotive and industrial MCU sectors, while specialized storage solutions are being developed for higher density and lower power consumption [3]. Industry Trends - The revenue share from industrial and automotive applications increased from 10.6% in Q2 to 11.9% in Q3, while the share from smartphones decreased to 21.5% [3]. - The company is experiencing a supply-demand imbalance, with current production unable to fully meet customer needs [3]. Challenges and Adjustments - The decline in smartphone revenue share is attributed to adjustments in production order prioritization to address urgent orders for other products, with customer understanding [4]. - The tight supply of storage chips has led to cautious procurement behavior among smartphone clients, impacting their production planning for the upcoming year [4].