Financial Data and Key Metrics Changes - Sales revenue for Q1 2025 was $541 million, a 17.6% increase year-over-year and a 0.3% increase quarter-over-quarter [5][8] - Gross margin was 9.2%, up 2.8 percentage points year-over-year but down 2.2 percentage points quarter-over-quarter [9] - Net loss for the period was $52.2 million, compared to a loss of $25.3 million in Q1 2024 and a loss of $96.3 million in Q4 2024 [11] - Basic earnings per share was $0.20, compared to $0.19 in Q1 2024 and a loss of $1.5 cents in Q4 2024 [11] Business Line Data and Key Metrics Changes - Revenue from embedded non-volatile memory was $130.3 million, a 9.3% increase year-over-year [13] - Revenue from standalone non-volatile memory was $42.9 million, a 38% increase year-over-year [13] - Revenue from Power Discrete was $162.8 million, a 13.5% increase year-over-year [13] - Revenue from analog and power management IC was $136.8 million, a 34.8% increase year-over-year [13] Market Data and Key Metrics Changes - Revenue from China was $442.5 million, contributing 81.8% of total revenue, a 21% increase year-over-year [12] - Revenue from North America was $56.4 million, a 22% increase year-over-year [12] - Revenue from Europe decreased by 30% year-over-year to $15.2 million [12] - Revenue from Japan decreased by 62.1% year-over-year to $1 million [12] Company Strategy and Development Direction - The company plans to accelerate effective capacity expansion, enhance R&D capabilities, and manage supply chain disturbances while reducing costs and improving efficiency [6][7] - The company aims to optimize its product portfolio and maintain full capacity utilization [6] Management Comments on Operating Environment and Future Outlook - Management noted that the semiconductor industry faces greater uncertainties due to recent global changes and policies affecting customer demand and procurement costs [6] - The company expects revenue for Q2 2025 to be in the range of $550 million to $570 million, with a projected gross margin of 7% to 9% [16] Other Important Information - Capital expenditures in Q1 2025 were $510.9 million, with significant investments in manufacturing [14] - Cash and cash equivalents decreased to $4.08 billion as of March 31, 2025, from $4.46 billion at the end of 2024 [15] Q&A Session Summary Question: Impact of new tariffs on customers - Management indicated that the recent tariffs have not had a meaningful impact on the business, as most customers are domestic design houses [20][22] Question: Growth in analog and PMIC sales - Management noted that the analog and PMIC platforms are growing due to competitive offerings and increasing domestic demand [24][28] Question: Price increase possibilities - Management stated that while there is pricing pressure on 8-inch wafers, 12-inch prices are gradually increasing, and customer acceptance of price increases is expected as demand exceeds supply [35][36] Question: Outlook for the second half of the year - Management expects a gradual recovery in demand, with consumer segments remaining weaker compared to industrial segments [49][50] Question: Competition and pricing strategies - Management acknowledged the competitive landscape but emphasized the company's technological advantages and ability to meet customer needs [58][60] Question: Equipment procurement and tariff impact - Management reported minimal impact from tariffs on equipment procurement, as most manufacturing occurs outside the U.S. [74][76] Question: Demand cycle for power devices - Management expressed confidence in the power device segment, citing strong competition but also a solid technological foundation [78][80] Question: Gross margin trends - Management indicated that gross margin pressures are expected due to new capacity ramp-up but remains optimistic about future improvements [96][102] Question: Embedded NOR flash platform performance - Management acknowledged the need for improved offerings in embedded NOR flash and expects growth as new technologies are introduced [104][106]