According to a report issued by Chief Analyst of the Asia-Pacific Region of Barclays Capital Securities, Lu Xingzhi stated that the semiconductor industry has not developed enough momentum this year and the growth trend is not obvious. Under the international economic environment, the semiconductor industry is still losing code. It is estimated that UMC and the world will be advanced. Morningstar will outperform its peers in the fourth quarter of last year and better than expected in the first quarter of this year. Short-term investors are advised to avoid substrate manufacturers such as Nandian and Jingshuo. Looking forward to this year's foundry, packaging and testing, and substrate plant revenue growth of up to 5-9% year-on-year, capital expenditure will be flat, but this year depreciation is too fast, excess production capacity fear, expected price war will start, some manufacturers cash flow May deteriorate.

For the first quarter of this year's economic performance, Lu Xingzhi pointed out that the substrate plant revenue may be reduced by 10-12% in the quarter, the packaging and testing plant revenue season decreased by 8-12%, wafer foundry TSMC, UMC revenue reduction period also has 4 -6%. Due to the rise of numerous related applications, PC and LCDIC customer demand is expected to be strong, but communication and consumer IC customer demand is weak.

In terms of revenue performance this year, Lu Hang’s estimated annual growth in wafer foundry, packaging and testing, and substrate plant revenues will reach 5-9%. In terms of new product kinetic energy, we are optimistic about the volume production of Mediatek's smart phone IC chips. Morningstar has a strong presence in functional mobile phones and on-board-box ICs. The world's advanced and stable (3105-TW) is also expected to grow.

As for the issue of wages on behalf of this year's wage generation, Lu Yuan’s expectation is that overall capital spending this year should remain flat, with 2012 at approximately US$18.4 billion. From this point of view, showing that the capital expenditure of each foundry accounted for the peak of revenue ratio of 70% to 75%, but the annual depreciation increase in 2012 was faster than the annual growth rate of sales, and the increase in production capacity was also faster than demand. With growth, there will be a price war in the supply surplus. For some vendors, cash flow may deteriorate.