Good day, ladies and gentlemen, and welcome to the Himax Technologies Fourth Quarter 2016 Earnings Conference Call. At this time, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session and instructions will be given at that time. [Operator Instructions] As a reminder, today’s conference is being recorded. I would now like to introduce your host for today's conference, Mr. Greg Falesnik, Managing Director for MZ North America. Sir, you may begin.

Thank you, operator. Welcome everyone to Himax’s fourth quarter 2016 earnings call. Joining us from the Company are Mr. Jordan Wu, President and Chief Executive Officer; and Ms. Jackie Chang, Chief Financial Officer. After the Company’s prepared comments, we’ve allocated time for questions in a Q&A session. If you have not yet received a copy of today’s results release, please email greg.falesnik@mzgroup.us or access the press release on financial portals, or download a copy from Himax’s Web site at www.himax.com.tw. Before we begin the formal remarks, I would like to remind everyone that some of the statements in this conference call, including statements regarding expected future financial results and industry growth, are forward-looking statements that involve a number of risk and uncertainties that could cause actual events or results to differ materially from those described in this conference call. Factors that could -- actual results include, but are not limited to, general business and economic conditions, the state of the semiconductor industry, market acceptance and competitiveness of driver and non-driver products developed by Himax, demand for end-use application products, the uncertainty of continued success in technological innovations, as well as other operational and market challenges and other risks described from time-to-time in the Company’s SEC filings, including those risks identified in the section entitled Risk Factors in its Form 20-F for the year ended December 31, 2015 filed with the SEC in April 2016. Except for the Company’s full year 2015 financials, which were provided in the Company’s 20-F and filed with the SEC on April 13, 2016, the financial information included in this conference call is unaudited and consolidated, and prepared in accordance with U.S. GAAP accounting. Such financial information is generated internally and has not been subjected to the same review and scrutiny, including internal auditing procedures and external audits by an independent auditor to which we subjects our annual consolidated financial statements, and may vary materially from the audited consolidated financial information for the same period. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. I'll now turn the call over to Mr. Wu. Jordan, the floor is yours.

Thank you, Greg. And thank you, everybody for being with us today for our earnings call on which we will detail results from the fourth quarter and full-year 2016 as well as provide our first quarter 2017 guidance and outlook. Our CFO Jackie Chang will give further specifics on our financial performance after my overview. Our 2016 fourth quarter revenue, gross margin, GAAP and non-GAAP earnings per diluted ADS were as preannounced on January 26. For the fourth quarter, we reported net revenues of $203.4 million, representing a 6.7% sequential decrease and in line with our original guidance of a 4% to 9% sequential decline issued on November 10 2016. While gross margin EPS were below the guidance due to an additional inventory write-down. Gross margin for the quarter was 19.1% versus guidance of slightly down from 25.6% reported in the third quarter. The low gross margin is a result of an additional one-time non-cash inventory write-down totaling $12 million. Excluding this additional inventory write-down, gross margin would have been 25% and met our guidance. The $12 million inventory write-down is on top of the $2.7 million original inventory write-off estimate for the fourth quarter. In comparison, the inventory write-off amounts were $2.5 million, $3 million and $2.5 million for the first, second, and third quarter of 2016, respectively. The vast majority of additional write-down was related to certain aged inventories of addition -- of traditional human vision CMOS image sensor or CIS with smaller amounts also covering driver IC and other products. Earlier in 2016, we decided to focus on CIS business on smart sensor, machine vision segments, as opposed to the traditional human vision segments. As part of this new strategic direction, we made a decision recently to expedite the sales of some aged inventory of human vision…

Thank you, Jordan. I will now provide additional details for our fourth quarter financial results. GAAP operating expenses were $32.1 million in the fourth quarter of 2016, down 20.7% from the preceding quarter and down 0.2% from a year-ago. The sequential decrease was primarily the result of the difference in RSU charges. In accordance to our protocol, we grant annual RSUs to our staff at the end of September each year, which, given all other items equal, leads to a higher third quarter GAAP operating expenses compared to the other quarters of the year. The fourth quarter RSU expense was only $0.2 million while it was $9.2 million in the third quarter. Excluding the RSU expense, operating expenses increased 2.2% from the third quarter and decreased 0.1% year-over-year. GAAP operating margin for the fourth quarter of 2016 was 3.4%, down from 4.8% for the same period last year and down from 7% in the third quarter. The GAAP operating income decreased 55.1% sequentially and 20.3% year-over-year. The sequential decrease was primarily a result of aforementioned additional inventory write-down and lower sales, offset by the lower RSU expense. Fourth quarter non-GAAP operating income, which excludes share-based compensation and acquisition-related charges, was $7.4 million, or 3.6% of sales, down from 5.1% for the same period last year and down from 11.5% a quarter ago. The non-GAAP operating income decreased 70.7% sequentially and 19.3% from the same quarter in 2015. Excluding the aforementioned inventory write-down, non-GAAP operating margin would have been 9.5% for the quarter, as compared to 11.5% in the previous quarter. Our GAAP net income for the fourth quarter was $4.4 million, or $0.026 per diluted ADS, compared to $13.6 million, or $0.079 per diluted ADS, in the previous quarter and GAAP net income of $6.1 million, or $0.036 per diluted ADS, a year-ago. GAAP net income decreased 27.6% year-over-year and 67.4% from the previous quarter. Fourth quarter non-GAAP net income was $4.8 million, or $0.028 per diluted ADS, compared to $21.3 million last quarter and $6.5 million the same period last year. I will go through 2016 full-year financial results and the balance sheet analysis a little later after Jordan's 2016 full-year business review. I will now turn the floor back to Jordan.

Thank you, Jackie. We delivered a solid result to achieve both top and bottom line growth during 2016, as our driver and non-driver business segments both performed strongly. We increased market share in our core driver IC business in 2016 and continued to solidify our leading position through technology advancement and customer engagement. Our large panel driver IC business grew from the added capacities from China and higher 4K TV penetration last year. In terms of small and medium-sized driver ICs, our smartphone driver IC business rebounded well, reflecting our leading position in the Chinese smartphone market. However, demand was stimulated by the rising adoption of 4G network and our end brand customers performed strongly in 2016. Driver ICs for automotive applications where we’ve a leading market share continue its growth trajectory as more panels were going to vehicles. We continued to lead the market in major new driver IC technology trends, including higher display resolution, AMOLED and in-cell TDDI. We collaborate it closely with leading panel makers across China for AMOLED product development. On the TDDI front, we made volume shipments to a leading Chinese smartphone customer and were busy with design activities with Chinese, Korean, and Taiwanese panel makers. Our non-driver businesses experienced tremendous growth during 2016, primarily driven by the LCOS and WLO businesses due to shipments to one of our leading AR device customers. We also made solid progress in new territories such as 3D depth scanning, IoT and machine vision with our latest CIS and WLO products, evidenced by more design-ins and engagements with certain heavyweight partners. Now we will have a quick overview of the 2016 full-year financial performance. Our revenues totaled $802.9 million in 2016, representing a 16.1% increase over 2015. Revenues from large panel display drivers increased 21.6% year-over-year, representing 34% of…

Thanks again, Jordan. For 2016, our GAAP operating expenses were $135.1 million, up $2.6 million or 2% compared to last year. GAAP operating income of $59.2 million represented a 93.1% increase versus 2015. Non-GAAP net income for 2016 was $59.7 million, or $0.347 per diluted ADS, up from $30.6 million, or $0.178 per diluted ADS, for 2015. Non-GAAP net income and non-GAAP earnings per diluted ADS grew 95.2% and 94.8% year-over- year, respectively. Turning to our balance sheet. We had $194.6 million of cash, cash equivalents and marketable securities as of the end of December 2016, compared to $148.3 million at the same time last year and $153.4 million a quarter ago. On top of the above cash position, restricted cash was $138.2 million at the end of the quarter, up from $138 million in the preceding quarter and down from $180.4 million a year-ago. The restricted cash is mainly used to guarantee the Company’s short-term loan for the same amount. We continue to maintain a very strong balance sheet and remain a debt-free company. Our Inventory as December 31, 2016 were $149.7 million, down from $171.4 million a year-ago and down from $169.4 million a quarter ago. Accounts receivable at the end of December 2016 were $191 million as compared to $177.2 million a year-ago and $208.4 million last quarter. Day sales outstanding was 87 days at the end of December 2016, as compared to 93 days a year-ago and 95 days at end of the last quarter. Net cash inflow from operating activities for the fourth quarter was $47.2 million as compared to an inflow of $25.9 million for the same period last year and an inflow of $2.9 million last quarter. Cumulative cash inflow from operations in 2016 was $84.7 million as compared to $22.5 million in 2015. The increase in cash inflow was a result of improved profitability and lower working capital. Capital expenditures were $2.2 million in the fourth quarter of 2016 versus $3.6 million a year-ago and $1.9 million last quarter. The capital expenditure in the fourth quarter consisted mainly of purchases of R&D related equipment. Total capital expenditures of the year were $7.9 million versus $10 million a year-ago. As of December 31, 2016, Himax had 172 million ADS outstanding, unchanged from last quarter. On a fully diluted basis, the total ADS outstanding are 172.4 million. I will now turn the floor back to Jordan.

Thank you, Jackie. We are mindful that 2017 was actually a year of micro -- of macro uncertainty, marked by currency fluctuations and the risk of China’s slowdown. However, looking into the new year, we believe our overall financial performance will be resilient to the potential macro headwinds. Particularly, following many years of R&D and investment, various areas of our non-driver IC businesses may start to contribute significantly to our overall financials. Before we detail the prospect for our driver and non-driver businesses in 2017, we thought it is important that we update this year’s CapEx plan as its scale will be unprecedented in our history. Being a fabless company in our -- for our IC business, we’ve typically had a low annual CapEx, as in the case of the last two years, $10 million in 2015 and $7.9 million in 2016. The regular CapEx is primarily for the investment of design tools and testing equipment for our IC design business. This year’s CapEx plan were, however, include the construction of a new building, which we’ve announced before, and an increase of our WLO capacity, on top of the regular CapEx. The new building, located nearby our current headquarters, will house the next generation LCOS and WLO production lines and provide the extra office space that is desperately needed as we already has to take up sizable leases outside to cope with the current office space shortage. The progress of the new building construction is in line with our plan as we’ve completed the design stage and are moving on to construction stage as we speak. More specifically, we’ve budgeted $50 million to $55 million CapEx for the new office/fab construction in 2017, covering land, building, facilities and clean rooms. The new building will be completed and ready for personnel…

[Operator Instructions] And our first question comes from the line of Tristan Gerra with Robert W. Baird. Your line is now open.

Hi there. You’re talking about the word being WLO production with -- due to high number of customer engagement. Could you quantify the potential that you see from a unit standpoint? I know that you don’t have much visibility, I thought that perhaps your North American customer pushing away, where the plans would have impacted your manufacturing plans, if you could elaborate on this?

Tristan, WLO actually we explained in earlier conference calls. We basically have a foundry business model where we fabricate or using our imprint process to make optical -- fine optical products for customers. So the number of units of output actually depends heavily on customer design application. And we’re making our chips for our 8-inch wafer. We’ve met designs with few as less than 10 chips and as many as thousands of chips even close to ten thousand. So, I’m afraid at this point, I really cannot disclose too much as to how when we say contribution starting from the second half of the year, how many units are we expecting from our customer. It really depends on the customer design and it's too early for us to disclose too much about the details of customer design.

Okay. And then just a quick follow-up. In terms of the smart sensor technology, how much of that is in collaboration with some outside companies for the IT or is the IT outside of the WLO coming from Himax? And if you could talk about the revenue and margin potential of smart sensor for later this year as well?

We -- for smart sensor, we are -- in my prepared remarks, I’m not going to repeat that. When there is AoS, Always-on-Sensor, where we provide actual lower power total solution. We recently had a joint press release with CEVA and Emza, and that is a good example of a partnership. And we together basically offer the total solution covering not just the [indiscernible] so were the applications, offering people the capability of doing for example people accounting in extremely lower power session. Over there we have been [indiscernible] or talking to customers across a very wide range of application of an industries, from consumer electronics to industrial home applications to surveillance etcetera. And the other area is structuralized projector for 3D depth sensing application. And over there our main partner is world-leading semiconductor SOC platform provider, and we’re being working with this for a for long time. We’ve been promoting our joint solution to our customers. And over there we are now talking to already a few leading cell phone customers and as well as a few industrial customers. So, there our key partner is this semiconductor, major player, while our customer base again is wide spread with the short-term focus now being smartphone application.

Great. Thank you very much.

Thank you. And our next question comes from the line of Tom Sepenzis with Northland. Your line is now open.

Yes, thank you. I’m just wondering with the new facility that you’re building, how long does it take to qualify the components that come out of that and when do you expect to ship the new WLO products?

We -- it typically starts from design and samples and configuration in the industrial deals. So naturally we have to go through all of that center procedure with our customer. So a lot of things has been going on for some time. Again, I cannot disclose the details, but certainly it is not that something that [indiscernible] aggressively. It's being around for some time and again we have to go through the center, so-called design and configuration procedure. We mentioned in our prepared remarks that if everything goes as planned, we expect this [indiscernible] investment to bringing contribution both for our top line and bottom line, starting from the second half of this year. So it is the second half. So in terms of financial contribution this is -- this investment we believe is a good opportunity for us.

Great. Thank you. And then, can you just talk a little bit about your progress in TDDI? And also what do you think -- are you developing OLED TDDI, and if so, when do you think you might have product available there?

No, our TDDI development is now primarily on low temp poly silicon and amorphous silicon products not OLED. And our main focus right now is full HD and HD solutions with full HD covering both with our [indiscernible] solution. We have made some small shipments to our customers. We expect further shipments in Q2, but more meaningfully starting from Q3 of this year and we believe second half in the following years, going forward, this will be bringing significant contribution to our top line and bottom line. So this is a very important area of business for us. We are working with literally everybody, every panel maker and many end customer makers working on design-in applications at this stage, quite busy our team on this product area right now.

Great. Thank you very much.

Thank you, Tom.

Thank you. And our next question comes from the line of Suji Desilva with ROTH Capital. Your line is now open.

Hi, Jordan. Hi, Jackie. Perhaps we can start off with the 3D scanning market, WLO. Can you just help us understand how to size that market and the revenue opportunity and the timing? Is it really kind of a subset of this image sensor market or how should we think about it?

Let's try to differentiate WLO against 3D depth scanning. WLO has many applications as we mentioned. Obviously 3D sensing is one of them, but I don’t have so much envision and obviously [indiscernible] application for our -- for AR devices being -- also among the major applications. So one should not necessarily connect WLO directly with and only with 3D depth sensing. Now if I look from another angle, 3D depth sensing, I mentioned in my prepared remarks, we do offer a total solution by working as I just mentioned in the previous Q&A, working with leading semiconductor SOC platform player where we basically provide a total solution covering on the projector side. We use our WLO technology to make the optics more specifically what we call Diffractive Optical Element or DOE with collimator. So that is the optics and then we [indiscernible] from third parties and we have to and they recall extreme high-level of precision to line up the optics and laser together. So we also have developer partners for that. So that is also a unique technology for us. So that together, the laser with alignment to the optics, that forms what we call projector. So with the projector you [indiscernible] through the surroundings, the image hit objects, gets bounce back then you a NIR sensor on the side to receive it. So we have -- we mentioned in our prepared remarks our outstanding performance of the NIR sensor as well where we believe we’re the number one in the world. As we speak, we saw -- with optical performance as good as twice our competitors. So you’ve the projector and you’ve the receiver. Then now you need algorithm to build calculation to figure out the best snap of your 3D -- of your surroundings. So we…

Okay, good. Thank you. And then the Chinese smartphone market coming into 2017, what are you seeing in terms of inventory levels around Chinese New Year and when do you think maybe if there is excess inventory then it gets work down?

Yes, there is indeed excess inventory across the ecosystem as we see it, especially it's just too bad in our -- in the area where we’ve particular percentage wise high concentration, which is a HD720 segment. HD720 segment starting from second half or even earlier, slightly earlier than that, panel capacity has been very tight and so HD720 panel availability it shouldn’t be [indiscernible] normal customers. I think pile up too much panels and therefore too many ICs. And we said in our earlier remarks, starting December last year we’re starting to see the EP impact, and Q1 is going to hit the bottom. We do believe this [indiscernible] will get cleaned up and we will see a nice rebound starting from Q2.

Okay, great. Thanks for the color, Jordan.

Thank you.

Thank you. And our next question comes from the line of Jerry Su with Credit Suisse. Your line is now open.

Hi, Jordan and Jackie. Just want to focus on the smartphone WLO. So Jordan, can you help us to understand why smartphone makers need to have a WLO with the laser diode? Why not just existing, lens -- the other camera module makers, what is that different for WLO to be used on a 3D camera or 3D sensing?

It's different. What WLO can provide is ultra-high [ph] optical structure. So what -- as opposed to your -- I’m sure you’re talking about those camera lens makers, right. They -- the technology they have is something called injecting -- inject molded. With inject molding you can make very good lenses with very good coverage. However, there are situations, for example you want to make a very fine creating with pictures of -- as fine as nanometer [indiscernible] scale. Creating or [indiscernible] regular or irregular cost structure or creating structures or -- so if you -- you mentioned very fine optical structure as opposed to a lens, which is basically a single coverage. So when you have engineering requirements for very fine and complex optical structures, right now WLO is the best technology you can have and there are very, very few players around the marketplace to offer these and as we keep saying we’re the one with the most proven production track record. And that’s why a lot of people come to us and that is why we decided to turn our business into a -- one of a foundry business model where we basically take the very complex and fine and very different optical structure design from various kind of customers from quite a variety of industries. And basically tell them how -- and how we are going to make it for them. So, meaning [indiscernible] this such fine optical structure cannot be made using the traditional injector molding technology. It simply cannot.

Okay. So just to clarify, so this will be used with the laser diode, right. Not the current CMOS, CCD camera?

Well, you see -- a laser diode is to provide a light source, because a 3D sensing there -- I mean, you’re really talking about machine vision -- is for vision control, vision recognition, photo enhancement or even 3D photography or it could be a very wide range of applications, I can't even think of right now people have developed, right. So you basically try to [indiscernible] such data out of invisible light, so you need a light source, particularly visible light and laser diode provides that function. So with laser diode through the complicated -- the complex optical structure, I just mentioned, you then basically project a visible image on to the surroundings and again the image will get [indiscernible] you receive the image with NIR sensor. And typically we will go through a [indiscernible] transform, I don’t want to get into too much technical details, but it is rather different from the traditional photo taking where you have a visible light and try to just shoot a picture from a object where you can see. So in this case, you still need a sensor. You still need a CMOS image sensor only that the CMOS image sensor needs to be tailored to put [indiscernible] especially well in those -- in visible bandwidth. So [indiscernible] sensor will not perform well in the traditional human vision bandwidth, but we’ve tailored a NIR sensor which is super strong in the [indiscernible] visible for our application.

Okay. Thank you. And then, a follow-up question on this TDDI. Since Himax has both driver -- a smartphone driver IC business and also a discrete touch business. I know you mentioned that this year TDDI is likely to see a bigger contribution. But how should we think about [indiscernible] of the existing business and how that impact on revenue going forward?

I think we mentioned, almost negative factors affecting our Q1 smartphone driver IC business is the fact that the addressable market is getting smaller, because of higher penetration of in-cell using TDDI or AMOLED. I think those are the trends that we cannot [indiscernible]. So yes, the traditional pure drive IC business will be affected, and -- but that doesn’t really worry us, although it is actually a [indiscernible] the opportunity for us, because as I -- as you correctly mentioned, we do have growing from in-house, we have a driver IC and we’ve a touch panel driver IC now we need to integrate them together to make TDDI solution. I will just -- so the TDDI solution the ASP will be much higher than a traditional driver IC and we even have touch panel control solution and that business the so-called on-cell pure touch panel solution with pure touch panel control IC [indiscernible] as well will get affected because they’re addressable market, [indiscernible] partially at least by the in-cell and TDDI solution. So, we also have [indiscernible]. However, I think this gives you -- give us the opportunity to more into the game to touch panel control business by having the touch panel control solution in our TDDI solution. TDDI naturally were for us anyway represent higher gross margin, much better ASP. I will just [indiscernible] for the point, which is our -- the TDDI becomes a mature -- a big market. The customers -- [indiscernible] providing the panel solution will be the traditional panel customers with which we know very, very well, we’ve been working together for long time, good partnerships. So -- but those traditional panel makers they’re not used to touch panel and that is why in the earliest relatively small volume [indiscernible] they tend to choose IC vendors coming from touch panel solution -- touch panel controller solution background because that is the one area they like and in order to make sure their early launch will be successful. They intend to bring in such vendors to help them. However, I think in the long-term we do have at least a [indiscernible] field with -- against those competitors and I think we enjoy major benefits including our long standing relationship with them and with panel -- with their own customers as well as the fact that we’re the only one in the leading group anyway with both driver IC and touch panel control IC coming from organic in-house. So, we don’t need to go through the hustle for having the merger or acquisition and in the question of [indiscernible] tends together we don’t need that. So [indiscernible] of time, as I said earlier, starting from second half we’re committed. The business will pick up strongly.

Okay. Thank you.

Thank you, Jerry.

Thank you. [Operator Instructions] And our next question comes from the line of Donnie Teng with Nomura. Your line is now open. Donnie Teng, your line is now open. Please check your mute button.

Hi, CEO, CFO. My first question is regarding to WLO and [indiscernible] business. So you’re talking about -- you will see some sales contribution from WLO in second half this year. May I ask what kind of application it could be? Will it be a smartphone or like a wafer guide or other applications?

We do not comment too much on details. Again, this technology can be applied for many applications across a very wide range of industries, and we’re working with heavyweight players in those industries. So in the long-term I think we will hopefully and likely have a balanced portfolio across customers in the industry. Now as far as the short-term, talking about the second half, in my comment I won't be releasing too much of the customer specifics. So, as a Company policy we don’t, we can't do that. So I’m sorry, I can't elaborate.

Can we say that -- it may not be total solution in the second half this year and maybe next year you will provide a total solution, I mean, combined WLO, laser diode and NIR and [indiscernible]?

I mean, some customers will use our discrete optical solution only, but some customers will use our total solution. So it will be both. And then, I cannot comment on the specifics, proportion of each one of them over -- such questions I cannot comment.

Yes, but I mean, in the second half this year is small like only WLO and the next year could be total solution. Can I say -- can we say that this kind of schedule is more reasonable?

I cannot comment. Sorry.

Okay. And for the second question is regarding to your CapEx plan. So, you mentioned about there will be $50 million to $55 million CapEx for new facilities and is that includes the $25 million for expanding the existing WLO capacity or not include that?

No. the $50 million to $55 million is only for land, building, facilities and clean rooms. So the $25 million WLO investment is on top of that $50 million to $55 million.

Got it. So the total CapEx this year will be like $75 million to $80 million, right?

Correct.

Got it. And …

[Multiple speakers] because ongoing basis we have about $10 million of CapEx for IC design, tool and stuff. So that is going to be ongoing. So [multiple speakers] around $10 million, yes, to that.

So, since you mentioned about this kind of huge CapEx, could you update the possible capacity for LCOS and WLO after your CapEx capacity expansion?

I think, again, $50 million to $55 million for the new building, including clean room. So by the early next year we will be ready for moving. But [indiscernible] moving as well, because the new building is one of the major reasons for office, because we’re so jam packed and some of [indiscernible]. Now once the new building is up and ready, we will then -- depending on the market situation and customer demand and design activity etcetera at the time will determine the pace of our equipment moving by CapEx for both WLO and LCOS. Now in terms of LCOS, it looks like our -- we are running shortage of capacity for LCOS right now as you know. So there will be certain CapEx for LCOS not to increase capacity, but to enable our 12-inch capability i.e., higher end displays, specifically higher resolution displays. What we try to do is to [indiscernible] of the more advanced geometry of silicon and they’re only available for 12-inch, and that is why we need 12-inch LCOS fab. For now it is to maintain our leading position in LCOS technology. So the early expansion plan unless there are major surprises this year where I mentioned we do anticipate a few launches from -- few on the customers, some of them are actually very, very well-known names. Although -- again, I cannot disclose that. We are expecting quite a few launches of new AR devices to the market this year, some of them surprisingly and if they’re put in surprises then we may have to expand the LCOS capacity as well. Let's see. However, for now we do have sufficient capacity, so the goal is to take us through 12-inch and be able to make higher end panels. That’s the short-term goal. For WLO, as you can tell, we’re in shortage of capacity already. That is why we need to [indiscernible] this $25 million of investment. And next year there will be I think -- I believe there will be more opportunities and more coming from WLO applications or customers in our total solution structure light application solutions, I really cannot tell which one [indiscernible] the other, but both are looking promising and exciting for now. So I will not be surprised on top of this $25 million this year when our new building is ready for move in, we will invest further in WLO. I will not be surprised if this is the case next year.

But previously you say that WLO capacity is like less than 3,000 8-inch mother glass and will increase to 6,000. So is this deal the target?

No, we actually mentioned earlier that part of our existing capacity is consigned by customer. So I guess, both more specifically, if you talk about wherever our input, monthly wafer capacity, we have existing consigned capacity of about 4,000 wafers a month and non-consigned about 2,000, and we’re adding about another 4,000 out of this $25 million investment. So ballpark that is the picture right now.

Okay. Thank you so much.

[Multiple speakers] equipment is dedicated to a certain customer and we cannot do it for other customers projects.

Okay, got it. Very helpful. Thank you so much.

Thank you, Donnie.

Thank you. As I’m not showing any further questions at this time, I’d now like to turn the call back to Mr. Jordan Wu for any closing remarks.

Well, as a final note, Jackie Chang, our CFO, will maintain investor marketing activities and attend future investor conferences. We will announce the details as they come about. Please contact our IR department and/or Greg Falesnik if you are interested in speaking with the management. Thank you and have a nice day.

Ladies and gentlemen, thank you for participating in today's conference. This does conclude the program. And you may all disconnect. Everyone have a great day.