Q2 2026 Parade Technologies Ltd Earnings Call

August 5, 2026

Operator: Welcome everyone to Parade Technologies, Ltd.'s 2026 Q2 webcast investor conference. Investor Relations of Parade Technologies, Mr. Yo-Ming Chang, will present 2026 Q2 financial results first. During the presentation, all lines will be placed on mute to prevent background noise. After the presentation, there will be a question and answer session in English by CEO Dr. Jack Zhao, and Vice President of Finance, Mr. Kuowei Wu. We also will leave last 15 minutes for the attendees who would like to ask questions in Chinese. Please follow the instructions given at the time if you would like to ask the question.

Operator: Welcome everyone to Parade Technologies, Ltd.'s 2026 Q2 Webcast Investor Conference. Investor Relations of Parade Technologies, Mr. Yo-Ming Chang, will present 2026 Q2 financial results first. During the presentation, all lines will be placed on mute to prevent background noise. After the presentation, there will be a question-and answer session in English by CEO Dr. Jack Zhao, and Vice President of Finance, Mr. Kuowei Wu. We also will leave last 15 minutes for the attendees who would like to ask questions in Chinese. Please follow the instructions given at the time if you would like to ask the question.

Speaker #1: Welcome, everyone, to Parade Technologies Limited's 2026 second quarter webcast investor conference. Investor Relations of Parade Technologies, Mr. Yo-Ming Chang, will present the 2026 second quarter financial results first.

Speaker #1: During the presentation, all lines will be placed on mute to prevent background noise. After the presentation, there will be a question-and-answer session in English, led by CEO Dr. Jack Zhao and Vice President of Finance Mr. Guo Weiwu.

Speaker #1: We will also reserve the last 15 minutes for attendees who would like to ask questions in Chinese. Please follow the instructions given at that time if you would like to ask a question.

Speaker #1: 欢迎参加Parade科技股份有限公司2026年第二季线上法人说明会。今天的会议首先由投资人关系张佑明先生报告Parade公司2026年第二季财务数字。在此报告阶段，您的电话都会处在静音状态。报告结束后，我们会安排执行长赵杰博士与财务副总经理吴国维先生以英文方式接受各位的提问。另外，我们最后会保留15分钟接受各位以中文方式的提问。 And now I would like to introduce Mr. Yo-Ming Chang, investor relations of Parade Technologies. Mr. Chang, please begin. 现在有请投资人关系张佑明先生。佑明，请说。

Operator: 欢迎参加浦瑞科技股份有限公司2026年第二季线上法人说明会。今天的会议首先由投资人关系张祐铭先生报告浦瑞公司2026年第二季财务数字。在此报告阶段，您的电话都会处在静音状态。报告结束后，我们会安排执行长赵杰博士与财务副总经理吴国伟先生以英文方式接受各位的提问。另外，我们最后会保留15分钟接受各位以中文方式的提问。And now I would like to introduce Mr. Yo-Ming Chang, Investor Relations of Parade Technologies.

Operator: Mr. Chang, please begin. 现在有请投资人关系张祐铭先生。祐铭，请说。

Yo-Ming Chang: Thanks, Jason. Welcome everyone to Parade Technologies 2026 Q2 Webcast Investor Conference. Parade Technologies Q2 2026 consolidated revenue was $134.48 million, and the net income was $18.78 million. Its both basic and the fully diluted after-tax earnings per share were $0.24 and $0.24 respectively. This result compared to consolidated revenue $133.50 million, and the net income of $22.79 million or $0.29, and $0.29 per basic and fully diluted share in a year-ago quarter. In US dollars, Q2 revenue increased 6.61% sequentially and was up 0.73% year over year. The gross profit in Q2 2026 was $54.06 million, an increase of 6.35% from the previous quarter, and a decrease of 6.06% compared to the same quarter of last year. Based on the current business outlook, Parade is providing the following guidance for Q3 2026. Revenue is between $139 to 153 million.

Speaker #2: Thanks, Jason. Welcome, everyone, to the Parade Technologies 2026 Q2 webcast investor conference. Parade Technologies' second quarter 2026 consolidated revenue was $134.48 million, and net income was $18.78 million.

Speaker #2: It's both best and a fully dilute after-tax earnings per share were 24 cents USD and 24 cents USD respectively. These results compared to consolidated revenue 133.50 million USD and the net income of 22.79 million USD over 29 cents USD and 29 cents USD per basic and a fully dilute share in a year-ago quarter.

Speaker #2: In USD, second quarter revenue increased 6.61% sequentially and was up 0.73% year over year. Gross profit in the second quarter of 2026 was $54.06 million, an increase of 6.35% from the previous quarter.

Yo-Ming Chang: The gross profit in Q2 2026 was $54.06 million, an increase of 6.35% from the previous quarter, and a decrease of 6.06% compared to the same quarter of last year. Based on the current business outlook, Parade is providing the following guidance for Q3 2026. Revenue is between $139 to 153 million. Gross margin is between 40% to 44%.

Speaker #2: And the decrease of 6.06% compared to the same quarter of last year. Based on the current business outlook, Parade is providing the following guidance for the third quarter of 2026: revenue is between 139 to 153 million USD, gross margin is between 40% to 44%, operating expense is between 33 to 36 million USD, 各位投资界的朋友大家午安，欢迎大家来参加Parade公司2026年第二季线上法人说明会。首先由我跟各位报告Parade公司2026年第二季财务数字。本公司2026年第二季合并营收为美金1亿3448万元，税后净利为美金1878万元，除权后基本与稀释每股税后盈余为美金0.24元，约当新台币7.66元，即美金0.24元，约当新台币7.64元。而去年同季合并营收为美金1亿3350万元，税后净利为美金2279万元，除权后基本与稀释每股税后盈余为美金0.29元，约当新台币8.95元，即美金0.29元，约当新台币8.92元。2026年第二季合并营收较前一季增加6.61%，较去年同期则增加0.73%。在营业毛利方面，本公司第二季营业毛利为美金5406万元，较上一季增加6.35%，较去年同期则减少6.06%。基于目前对2026年第三季营运的展望，我们预期合并营收为美金139到153百万元，合并毛利率为40%到44%，合并营业费用为美金33到36百万元。 It is my presentation for the 2026 Q2 financial results.

Yo-Ming Chang: Gross margin is between 40% to 44%.

Yo-Ming Chang: Operating expense is between US$33 to 36 million。各位投资界的朋友，大家午安。欢迎大家来参加浦瑞公司2026年第二季线上法人说明会。首先由我跟各位报告浦瑞公司2026年第二季财务数字。本公司2026年第二季合并营收为美金134,480,000元，税后净利为美金1,878万元，除权后基本与稀释每股税后盈余为美金0.24元，约当新台币7.66元，及美金0.24元，约当新台币7.64元。而去年同期合并营收为美金133,500,000元，税后净利为美金2,279万元，除权后基本与稀释每股税后盈余为美金0.29元，约当新台币8.95元，及美金0.29元，约当新台币8.92元。2026年第二季合并营收较前一季增加6.61%，较去年同期则增加0.73%。在营业毛利方面，本公司第二季营业毛利为美金54,060,000元，较上一季增加6.35%，较去年同期则减少6.06%。

Yo-Ming Chang: 基于目前对2026年第三季营运的展望，我们预期合并营收为美金$139到$153百万元。合并毛利率为40%到44%。合并营业费用为美金$33到$36百万元。It is my presentation for the 2026 Q2 financial result. Now I transfer to CEO Dr. Jack to answer your questions. Jason, in the beginning.

Speaker #2: Now I transfer to CEO Dr. Zhao to answer your questions. Jason, please go ahead with your question.

Speaker #1: Yes, thank you, Yo-Ming. Ladies and gentlemen, we will now begin the English question-and-answer session. If you wish to ask a question, please press the star key and the number 1 on your telephone keypad to enter the queue.

Jerry Su: Yes, thank you, Yo-Ming. Ladies and gentlemen, we will now begin the English question and answer session. If you wish to ask the question, please press Star key and number 1 on your telephone keypad, and you will enter the queue. After you are announced, please ask your question. Should you wish to cancel your question, you may press Star key and number 2. Thank you. Now please press Star 1 on your keypad if you would like to ask the question. Thank you. Our first question will be coming from Jerry Su of UBS. Go ahead, please, Jerry. Thank you. Thank you for taking my question. Just first question, probably just a little bit of housekeeping. Can you give us a breakdown for Q2 revenue mix?

Operator: Yes, thank you, Yo-Ming. Ladies and gentlemen, we will now begin the English question and answer session. If you wish to ask the question, please press Star key and number 1 on your telephone keypad, and you will enter the queue. After you are announced, please ask your question. Should you wish to cancel your question, you may press Star key and number 2. Thank you. Now please press Star 1 on your keypad if you would like to ask the question. Thank you. Our first question will be coming from Jerry Su of UBS. Go ahead, please, Jerry.

Speaker #1: And after you are announced, please ask your question. Should you wish to cancel your question, you may press the Start key and the number 2. Thank you.

Speaker #1: Now, please press star one on your keypad if you would like to ask a question. Thank you. Our first question will be coming from Jorisu of UBS.

Speaker #1: Go ahead, please, Jerry.

Speaker #3: Thank you. Thank you for taking my question. Just a first question—probably just a little bit of housekeeping. Can you give us a breakdown of the second quarter revenue mix?

Jerry Su: Thank you. Thank you for taking my question. Just first question, probably just a little bit of housekeeping. Can you give us a breakdown for Q2 revenue mix?

Speaker #4: Okay, thank you. For everyone, for the second quarter, the DP ladies, and hello.

Jack Zhao: Okay. Thank you for everyone. For Q2, the DP

Jerry Su: Ladies and

Operator: Ladies and

Jack Zhao: Hello?

Speaker #3: Hello, hello?

Jerry Su: Hello. Yes.

Speaker #2: Yes.

Speaker #3: Yes.

Speaker #4: Yeah, yeah, yeah. Okay. I'm not sure you heard me, Jerry. Did you hear my answer?

Jack Zhao: Yeah. Okay. I'm not sure you heard my Jerry, you heard my answer?

Jerry Su: No, I didn't. I think I didn't hear anything. Yeah. A lot of noise.

Speaker #3: No, I think I didn’t hear anything. Yeah, a lot of noise.

Speaker #4: Okay. So, the DP was 30%. PS, our high speed, is about 45%. PC, our source driver, is slightly above 10%. TT, not included. TT device is slightly below 15%.

Jack Zhao: Okay. The DP was 30%. PS, our high speed, is about 45%. PC, our source driver, slightly above 10%. TT, not include our TT device, is slightly below 15%.

Speaker #3: Okay. Got it. Thank you. And then based on your third quarter guidance, it seems like that you're suggesting a little bit stronger than expected demand for PC and notebook market, but I think that is a little bit different from the general industry's view.

Jerry Su: Okay. Got it. Thank you. Based on your Q3 guidance, it seems like that you're suggesting a little bit stronger than expected demand for PC and notebook market, but I think that is a little bit different from the general industry's view. Can you give us a little bit color on the PC notebook demand outlook, or maybe elaborate a little bit about the revenue outlook for each of the categories into the Q3. Thank you.

Speaker #3: Can you give us a little bit of color on the PC notebook demand outlook, or maybe elaborate a little bit about the revenue outlook for each of the categories going into the third quarter?

Speaker #3: Thank you.

Speaker #4: Yeah. In the last conference call, I mentioned that our TTD device, which is integrated, the TCOM source driver, touched together for notebook panel, will have good growth in Q2.

Jack Zhao: Yeah. In the last conference call, I mentioned that our TT device, which is integrated the T-con source driver touch together for notebook panel, will have a good growth in the Q2. It did happen and it actually grows faster than what I had expected. You see that our TT, which include that device, now close to 15%. We had a thought it's over 10%, now it's about close to 15%. That's definitely reflect we include new market, which will win a lot of models and ship quite a lot of device. That's really the story for Q2, and we are in the TT segment is stronger than what we had planned it.

Speaker #4: So it did happen, and it's actually growing faster than what I had expected. So you see that our TT, which includes that device, is now close to 15%.

Speaker #4: So we had a thought it's over 10%. Now it's about close to 15%. So that definitely reflects we're into the new market, which will win a lot of models and ship quite a lot of devices.

Speaker #4: And that's really the story for Q2. We are in the TT segment, which is stronger than what we had planned.

Speaker #3: Okay. So into the third quarter, should we still think that TT is going to be the main driver, or will DP or High Speed also see special growth?

Jerry Su: Okay. Into the Q3, should we still think that TT is going to be the main driver or TP or high speed also going to see special growth?

Jack Zhao: Into the Q3, the Q3 is traditional notebook PC H2 season, we'll continue see this year has the similar seasonality even though customer worry about the memory price increase, so on and so forth. In our specific case, our TT, which include our TTED device, will continue to grow in the Q3, the percentage also will increase. That's more specific SIM, which the new device take over a lot of the notebook panel segment. This we happen to see because simply, yeah, notebook panel is just one device. For Parade itself, we increase the silicon content, now has touch integrated to our device. That not only supported the normal touch and also supported the active stylus. The interesting thing is, the notebook panel with touch function, attach rate increase quarter by quarter in the general market.

Speaker #4: In Q3, Q3 is the traditional notebook PC hot season, and we continue to see that this year has similar seasonality. Even though customers worry about the memory price increase, and so on and so forth.

Speaker #4: In our specific case, our TT, which includes our TTD device, will continue to grow in Q3. The percentage also will increase. So that's kind of a more specific theme where the new device takes over a lot of the notebook panel segment.

Speaker #4: So this will happen to, see, because simply your notebook panel is just one device, and for Pro itself, we increased silicon content. Now, it has touch integrated into our device.

Speaker #4: And not only supported normal touch, but also supported active stylus. The interesting thing is the notebook panel with touch function attached to the increase, and quarter by quarter in the general market.

Jack Zhao: That not only supported the normal touch and also supported the active stylus. The interesting thing is, the notebook panel with touch function, attach rate increase quarter by quarter in the general market. We enjoy those kind of trend with our device, which is quite complicated and without competition so far.

Speaker #4: So we are enjoying those kind of trends with our device, which is quite complicated and without too much competition so far.

Jack Zhao: We enjoy those kind of trend with our device, which is quite complicated and without competition so far.

Speaker #3: Okay, thank you. Very clear. Then, a follow-up question on this year's outlook. I think previously Jack or Yo-Ming has mentioned that this year's revenue could probably see, I don't know, either single-digit or 10% growth year-over-year.

Jerry Su: Okay. Thank you. Very clear. A follow-up question on this. I think previously, Jack or Yo-Ming has expecting that this year's revenue probably can see, I don't know, mid-single digit or 10% growth year over year. I'm just wondering now you have provided the quarter guidance, 4Q probably, you should have some idea. How should we think about the revenue outlook for this year based on the current forecast?

Speaker #3: I'm just wondering, now that you have provided third quarter guidance—and then for Q4, you probably should have some idea—so how should we think about the revenue outlook for this year based on the current forecast?

Speaker #4: Yeah. We had a more positive view in terms of our business, and that was earlier this year. At that time, the dealer and the price impact were not that significant.

Jack Zhao: Yeah. We had a more positive view in terms of our business. That was early this year. At that time, the DRAM price impact is not that significant. We saw a lot of our customer being impacted because the high price of the DRAM and the storage, which really suppress the demand side. You particularly see the gaming side of notebook demand decrease a lot. We were looking forward to see so far the Q3, the trend is good. We're waiting for to see the Q4, whether we can make a few percentage increase versus last year. Definitely that's what we hope. That's just continue the Q3 and Q4. The Q4 so far, the PO receiving looks good. We don't want to commit too early.

Speaker #4: Now, we saw a lot of our customers being impacted because of the high price of DRAM and storage, which really suppressed the demand side.

Speaker #4: You particularly see the gaming side of notebook demand increase a lot. We were looking forward to see that so far in Q3, the trend is good, but we're waiting to see in Q4 whether we can make a few percentage increase versus last year.

Speaker #4: That's definitely what we hope, and so that's to continue in Q3 and Q4. So far, the PO receiving looks good, and we don't want to commit too early.

Jack Zhao: That's just continue the Q3 and Q4. The Q4 so far, the PO receiving looks good. We don't want to commit too early.

Speaker #3: Okay, okay. Got it. Fair enough. And then, last question and I'll go back into queue. Just for the ASIC-like business, can you provide some update—particularly maybe a little bit more detail on timeline, or when you will start tape-out and mass production?

Jerry Su: Okay. Got it. Fair enough. Last question, I'll go back to Q. Just for the ASIC-like business, can you provide us some update, particularly maybe a little bit more detail on timeline or when will you start tape out in mass production? I think the customer you are targeting probably has its own schedule, for the H2 2027 launch. I'm just wondering, based on your current timeline, are you confident that you can meet your customer's parallel schedule? How should we think about the revenue contribution as well as gross margin? Thank you.

Speaker #3: Because I think the customers you are targeting probably have their own schedule, for example, a second-half 2027 launch. So, I'm just wondering—based on your current timeline—are you confident that you can meet your customers' product launch schedule, and how should we think about the revenue contribution as well as gross margin?

Speaker #3: Thank you.

Jack Zhao: I think we are progressing well. It's a complicated device. We have two device there. It's pretty complicated device and a big device. We put a lot of R&D resource into. The project progress well. We did a lot of system design. With our customer together to early look at the performance, the software capability, and the system level testing. Even on the FPGA side, we're already doing this. We're looking forward on time to tape out our chip. As we shared, sometime later this quarter, the first chip will tape out. The second chip will be quickly taped out as well. We think those chips will contribute to our revenue in the later of 2027, as we shared last quarter conference call. During the quarter, we have more talk, engagement with executive of our customers.

Speaker #4: I think we are progressing well. It's a complicated device, and we have two devices there. And it's a pretty complicated device, and a big device.

Speaker #4: And the project, and we put a lot of R&D resource into it. The project progressed well, and we did a lot of system design. And with our customer together, to early the performance and the software capability, and the system-level testing.

Speaker #4: So even on the FPGA side, we're already doing this. We're looking forward in time to take out our chip. And as we shared, sometime late this quarter the first chip will be taken out, and the second chip will be quickly taken out as well.

Speaker #4: And we think that those chips will contribute to our revenue in late 2027, as we shared on last quarter's conference call. During the quarter, we had more talks and engaged with executives of our customers, and I think the confidence level is getting higher.

Jack Zhao: We think those chips will contribute to our revenue in the later of 2027, as we shared last quarter conference call. During the quarter, we have more talk, engagement with executive of our customers. I think the confidence level is getting higher. By working with the engineering team of our customer, yeah. Hopefully, once we tape out, we will have a more clear picture, especially when chip come back, how healthy the chip is. Those we're certainly looking forward.

Jack Zhao: I think the confidence level is getting higher. By working with the engineering team of our customer, yeah. Hopefully, once we tape out, we will have a more clear picture, especially when chip come back, how healthy the chip is. Those we're certainly looking forward.

Speaker #4: And so by working with the engineering team of our customer, and yeah, so hopefully, once we take it out, we will have a more clear picture, and especially when the chip comes back, how healthy the chip is.

Speaker #4: Those are certainly something we're looking forward to.

Speaker #3: All right. Okay. Thank you. Thank you, Jack and Yo-Ming.

Jerry Su: All right. Okay. Thank you. Thank you, Jack and Yo-Ming.

Speaker #4: Thank you.

Jack Zhao: Thank you.

Speaker #3: Next one. Thankfully, yeah, Morgan Stanley. Go ahead, please.

Operator: Next one, Tina Yee, Morgan Stanley. Go ahead, please.

Tina Yee: Thanks, Jack and Yo-Ming, for taking my questions. My first question, just want to ask about your Q4 margin. I think it came a little bit shy of street estimate. May I ask the impact behind this? Is this because of the material price hike or impact from the foundry side? Yeah, that's all. Thank you.

Speaker #5: Thanks, Jack. Yo-Ming, for taking my question. So my first question is, I want to ask about your second quarter margin. I think it came a little bit shy of street estimates.

Speaker #5: May I ask about the impact behind this? Is it because of the material price hike, or is it an impact from the foundry side? Yeah. And I have all.

Speaker #5: Thank you.

Jack Zhao: Thank you very much for the notice on the gross margin. I think as we shared the last quarter, especially the OSAT price increase in the quarter suddenly. The OSAT, the back-end side, it's not only increased once, has been increased multiple times. As we are addressing the cost increase. By two direction, one is share, communicate with our customers, like to share some cost increase with our customers to reflect the product price increase. As for ourself, we have to looking for more cost-efficient chip, the OSAT price, to improve our gross margin. We work on the both side very hard, try to recover our gross margin, as we have been doing. Hopefully, the next few quarters, we can see the improvement.

Speaker #4: Yeah. Thank you very much for the notice on those gross margins, and I think as we shared in the last quarter, especially the old set price increase caught us suddenly.

Speaker #4: And the old set the backend side it's not only increase once has been increased multiple times. And as we are and we are addressing those the cost increase.

Speaker #4: And by two directions, one is to share and communicate with our customers, and to share some of the cost increases with our customers to reflect the product price increase.

Speaker #4: And so as for ourself, we have to looking for more cost efficient cheap the old set price to make our gross margin improve our gross margin.

Speaker #4: So we work on both sides very hard, trying to recover our gross margin as we have been doing, and hopefully in the next few quarters we can see improvement.

Jack Zhao: We work on the both side very hard, try to recover our gross margin, as we have been doing. Hopefully, the next few quarters, we can see the improvement.

Speaker #5: Got it. So on the pricing adjustment side, when do you expect this to take effect? Next year or maybe in the fourth quarter? Thank you.

Tina Yee: Got it. On the pricing adjustment side, when do you expect this to take effect? Next year, or maybe in Q4? Thank you.

Jack Zhao: Some of our parts, we are segment by segment to do it. Some of parts already in place, price already reflect in place. Some of them are, in this quarter, we're talking to customer. It's segment by segment going, and selective product to adjusting. Certainly, your OEM customer will not be happy. You have a good communication with them to reflect what current situation. I think they all understand. It's a negotiation, but most of them willing to take some price adjustment, yes.

Speaker #4: With some of our parts, we are segment by segment to do it. And some of our parts are already in place. Price is already flat in place.

Speaker #4: And some of them are in this quarter, we are talking to the customer. So it's segment by segment going and selective product adjusting. And certainly your OEM customer will not be happy, but you have good communication with them to reflect the current situation. I think they all understand.

Speaker #4: And yeah, it's a negotiation, but most of them are willing to take some price adjustment. Yes.

Speaker #5: Got it. May I ask the magnitude of this price hike? Is it like 10%, 20%, or even higher? Because you mentioned we see several times of price hikes from our suppliers.

Tina Yee: Got it. May I ask the magnitude of this price hike? Is it 10%, 20%, or even higher? Because, as you mentioned, we see several times of price hike from our suppliers, YTD.

Speaker #5: Why TP? Yeah.

Speaker #4: Yeah, the old set price increase is like what you said, and it's widely reported and published by the media on the cost increase. And for us, we are working with our customer to reflect those increases and, yeah, different products have a different increase, but it has been executed, and some of them are quite meaningful to reflect our cost increase.

Jack Zhao: Yeah. The OSAT price increase, it's like what you said, and it's widely reported and published by the media on the cost increase. For us, we are working with our customer to reflect those increase. Yeah, different product has a different increase, but has been executed, and some of them are quite meaningful to reflect our cost increase.

Speaker #5: Got it. One more follow-up from me. So, do you expect second quarter gross margin to be the trough of the year?

Tina Yee: Got it. One more follow-up from me. Do you expect Q2 gross margin to be the trough of the year?

Jack Zhao: Only what I would say, yeah, hopefully it's kind of bottomed there, and that certainly is our hope. We will move up as we go, because at the beginning of the quarter, we didn't realize that magnitude change is so big. As now we know, and we are doing multiple steps to address these issues.

Speaker #4: Only what I want to say is that, yeah, hopefully this is kind of the bottom there and that certainly is our hope. We will move up as we go, and, because at the beginning of the quarter, we didn’t realize that magnitude of changes.

Speaker #4: So big. And so, as we know now, we are taking multiple steps to address those issues.

Speaker #5: Got it, got it. And my second question, just want to follow up on the Standard Plus customers overall. Their demand has remained quite strong. Do you have a preliminary outlook for their demand through 2027?

Tina Yee: Got it. My second question, just want to follow up on the standards-plus customers overall that their demand is quite strong. Do you have a preliminary outlook for their demand into 2027? Thank you.

Speaker #5: Thank you.

Speaker #4: I think they are pretty healthy, right? The demand remains pretty good, I would think. And based on the forecast they give us—the so-called long-term forecast—I think 2027 will be the reasonable year.

Jack Zhao: I think they are pretty healthy, right? The demand remains pretty good, I would think. Based on the forecast they give us, so-called the long-term forecast, I think 2027 will be the reasonable year. We are developing multiple chips with them. Some of them will start to production in later of 2027 or 2028. They will make a contribution to us. For them, I think the business is a lot more predictable compared with others, because the impact to them seems, the DRAM impact to them seems not as big as the other customer.

Speaker #4: And we all develop multiple chips with them. Some of them will start production late in 2027 or 2028, so they will make a contribution to us.

Speaker #4: For them, I think the business is a lot more predictable than compared with others, because the impact to them—seems, the DLM or impact to them—seems not as big as other customers.

Speaker #5: Got it. My final question—sorry. So, what's your view on PC shipments into 2027?

Tina Yee: All right. My final question, sorry. What's your view on the PC shipment into 2027? The overall market.

Jack Zhao: Yeah. This is a good question. I had a chat with the OEM industry leaders, I think that 2026 has been caused by the DRAM price increase and suppressed the demand side. AI still remains the big theme for the high tech or the company. AI demands more computing power, notebook PC remains as a fundamental need for productivity and for our daily life. With the sub-view of 2026 shipment, I think people all know it's a big drop. We think that 2027 will have a hope to be better than 2026, to grow. Fundamentally, it's the demand of better notebooks, those AI calculations might need a more powerful one there. Hopefully, another segment might be interested, just like you have a edge of small computing, the box. It's getting popular as well.

Speaker #4: Yeah, this is a good question, and I had a chat with the OEM industry leaders. I think 2026 has been affected by the DLM price increase, which has suppressed the demand side.

Speaker #4: And if AI still remained the big theme for the high-tech or the company, and AI demands more competing power, and noble PC remains and it's a fundamental the needs for the productivity and for our daily life, with the subdue of 2026 shipment, I think people all know it's a big job.

Speaker #4: And we think that 2027 will have a hope to be better than 2026, to grow, and fundamentally it is a demand for better notebooks. Also, the AR age calculation might need a more powerful one there.

Jack Zhao: Fundamentally, it's the demand of better notebooks, those AI calculations might need a more powerful one there. Hopefully, another segment might be interested, just like you have a edge of small computing, the box. It's getting popular as well. Those are the things added together, we keep our view positive for 2027.

Speaker #4: And hopefully, there are other segments that might be interesting. Just like you have edge computing, small computing boxes are getting popular as well.

Speaker #4: So, those are the things added together, and we keep our view positive for 2027.

Jack Zhao: Those are the things added together, we keep our view positive for 2027.

Speaker #5: Got it. Thank you, Jack. Thank you, Yo-Ming. And congrats on the great Q3 revenue guidance.

Tina Yee: Got it. Thank you, Jack. Thank you, Yo-Ming, congrats on the great Q3 revenue guidance.

Speaker #4: Thank you.

Jack Zhao: Thank you.

Speaker #3: Next question, Carol Run, HSBC. Go ahead.

Operator: Next question, Carol Run, HSBC. Go ahead please.

Carol Run: Hi, thank you for taking my question. I have a few follow-ups. Just one for the ASIC-like. Could you share some details on the potential ASP and the margin? Is that the ASIC-like products, the 18 margin, probably better than the current product line?

Carol Juan: Hi, thank you for taking my question. I have a few follow-ups. Just one for the ASIC-like. Could you share some details on the potential ASP and the margin? Is that the ASIC-like products, the 18 margin, probably better than the current product line?

Speaker #6: Hi, thank you for taking the questions. I have a few follow-ups. So just one: for the ASIC line, could you share if you have some of the potential ASICs and the margin?

Speaker #6: Is the ASIC-like products' AC margin probably better than the current product line?

Speaker #4: I think the single device price in the Parade portfolio is high, right? We're talking about $10, $20, those kinds of ranges. And for gross margin, we are in check with our corporate gross margin.

Jack Zhao: I think the single device price in Parade's portfolio is high, right? We're talking about $10, $20, those kinds of range. Gross margin, we are in check with our corporate gross margin. However, those are the assumption, the current yield thing. If a yield have improvement, we might have to do better. That's available there. If yield not doing as good as we calculated, yield is not as good as the corporate margin, but should be in the neighborhood of our corporate margin. That's what I can share with you.

Speaker #4: And however, those are the assumptions for the current yield. If you have an improvement, we might be able to do better. So that's available there.

Speaker #4: And if you're not doing as well as we calculated, so it might be you're not as good as the corporate margin, but should be in the neighborhood of our corporate margin.

Speaker #4: And that's what I can share with you.

Speaker #6: Okay, thank you. Yeah, sorry, I just joined a little bit late, so this might have already been discussed. But I just want to know more about how fast the ASIC-like contribution or tape-out would be.

Carol Run: Okay. Thank you. Yeah. Sorry, I just joined a little bit late, so it might be already discussed, but just want to know more about how fast the ASIC-like contribution or tape-out would be.

Carol Juan: Okay. Thank you. Yeah. Sorry, I just joined a little bit late, so it might be already discussed, but just want to know more about how fast the ASIC-like contribution or tape-out would be.

Speaker #4: And we said that it will be the late 2027 on the revenue contribution side. The project is moving forward and doing well.

Jack Zhao: No, we said that it will be the later of 2027 on the revenue contribution side. The project is moving forward and doing well. We are excited, really, as we had the working together with our customer system together with our emulation system, their emulation system, and doing the software adjustment. To make sure once chip come back and everything's ready. That's a big chip. We have two chips to go. We're all excited why we work very hard.

Speaker #4: And we are excited, it really is—we had the working together with our customer system, together with our immigration system there, immigration system, and doing the software adjustment.

Speaker #4: So, to make sure, we already have the one chip come back and everything is ready. That's a big chip. We have two chips, two to go.

Speaker #4: So we're all excited, and we work very, very hard.

Speaker #6: Got it. Pretty clear. I also have a follow-up related to data centers. Previously, you've been discussing the PCIe or ACC cable.

Carol Run: Got it. Pretty clear. I also have a follow-up on the data center related. Previously, you've been discussing about the PCIe or ACC cable. Could you give us an update on any changes, any updates in the design wins and the data center related product line?

Carol Juan: Got it. Pretty clear. I also have a follow-up on the data center related. Previously, you've been discussing about the PCIe or ACC cable. Could you give us an update on any changes, any updates in the design wins and the data center related product line?

Speaker #6: So, could you give us some updates on any changes or updates in the Design Wins and the data center-related product lines?

Speaker #4: Yeah. During the Q2, we have been using the our acquisition, the asset, which is we have the Silicon Germania cable driver. And for 112 gig and 224 gig, and the particular 224 gig, our customer made 800 gigabit per second Ethernet cable so as 1.6T Ethernet cable.

Jack Zhao: Yeah. During Q2, we have been using our acquisition, the asset, which is we have the silicon germanium cable driver for 112G and 224G. In particular, 224G, our customer made an 800 Gb per second Ethernet cable, as a 1.6T Ethernet cable. We're using that cable to participate, plugfest in New Hampshire, in US, New Hampshire. We sent a big team over there and doing the system level testing. The result looks pretty good and surprised. That's the first time we participated, and the device looks good. Those for the ACC cable for data center on those Ethernet, we're talking about 3, 4, 5 meters, those cables. On the PCIe Gen 6 side, those are the cable using what was pre-developed in the PCIe solution.

Speaker #4: We're using that cable to participate in the plug test in New Hampshire, US. We sent a big team over there and are doing the system-level testing.

Speaker #4: And the result looks pretty good. And surprise, that's the first time we participated and the device looks good. So those are for the ACC cable for data centers. On those Ethernet cables, we're talking about 3, 4, 5 meters—those cables.

Jack Zhao: On the PCIe Gen 6 side, those are the cable using what was pre-developed in the PCIe solution. Those cables are working with the server guys for the data center, one of the leading server guy needs those cables, we're working pretty close. Those are a little bit shorter cable, but still, they would need those cable for the system performance. Those are the two fronts. We work those case, I will share with you guys. The ACC cable on the data center looks pretty promising because the performance are decent, a lot of cable already been built. Hopefully, we'll continue to see whether those will convert to our revenue.

Speaker #4: On the PCI Gen 6 side, and those—the cable using water was pre-developed. And the PCI solution, those cables are working with the server guys for the data center.

Jack Zhao: Those cables are working with the server guys for the data center, one of the leading server guy needs those cables, we're working pretty close. Those are a little bit shorter cable, but still, they would need those cable for the system performance. Those are the two fronts. We work those case, I will share with you guys. The ACC cable on the data center looks pretty promising because the performance are decent, a lot of cable already been built. Hopefully, we'll continue to see whether those will convert to our revenue.

Speaker #4: And we're also leading. Server guys need those cables, and we're working pretty close. Those are a little bit shorter cables, but they will still need those cables for the system performance.

Speaker #4: So those are the two from WeWork, those cases, and I will share with you guys. And the ACC cable on the data center looks pretty promising because the performances are decent.

Speaker #4: And a lot of cables have already been built. So hopefully, we will continue to see whether those will convert to our revenue.

Speaker #6: Okay, thank you. And my last question would be about the product exchange. I saw there was an increase in the Integrated User Solution revenue contribution in the second quarter this year.

Carol Run: Okay. Thank you. My last question would be about the product exchanges. I saw there was an increase in the integrated display solution revenue contribution in Q2 this year. Just wondering, how about the product in H2? Are you still seeing the rising contribution of faster growth from the integrated display solution over high speed in H2? How would that impact the margin turning by the end of the year? Yeah. Thank you.

Carol Juan: Okay. Thank you. My last question would be about the product exchanges. I saw there was an increase in the integrated display solution revenue contribution in Q2 this year. Just wondering, how about the product in H2? Are you still seeing the rising contribution of faster growth from the integrated display solution over high speed in H2? How would that impact the margin turning by the end of the year? Yeah. Thank you.

Speaker #6: And just wondering, how about the product mix quality in the second half? Are you still seeing the rising contribution of faster growth from the integrated display solution over high-speed in the second half?

Speaker #6: And how would that impact the margin trend into, by the end of the year? Yeah, thank you.

Speaker #4: I would you expect to see our the integrated solution will continue to growth at least the second half and the 2027 because we have a multiple new device will come out to address the more broad market.

Jack Zhao: You expect to see the integrated solution will continue growth, at least H2 in 2027, because we have multiple new devices will come out to address the more broader market. We are doing very well on those. Those revenue unit shipment will grow pretty quickly. We are happy on this because we invest many years. In terms of gross margin on this segment, you also will expect we're getting close to our corporate margin. As device getting mature and the yield getting better. The PS remain as our big focus. We continuously see our high-speed PS product line will grow. But percentage-wise will be different because embedding the integrated solution, the dollar turns big and the unit shipment getting bigger, the percentage will grow very quickly. It looks like your PS got surprised. It's not really.

Speaker #4: And we're doing very well on those, so those revenue unit shipments will grow pretty quickly. And we're happy about this because we invested many years into the gross margin on those segments.

Speaker #4: And you also will expect we're getting close to our corporate margin. So as the device gets mature and the yield gets better, and the PS remains our big focus.

Speaker #4: And we continue to see our high-speed PS product line work grow, but percentage-wise, it will be different because with the embedded, the integrated solution, the dollar turns big and the unit shipment is getting bigger.

Jack Zhao: But percentage-wise will be different because embedding the integrated solution, the dollar turns big and the unit shipment getting bigger, the percentage will grow very quickly. It looks like your PS got surprised. It's not really. It's really another side may increase quickly.

Speaker #4: And the percentage of work grew very quickly. So it looks like your PS got a surprise. It's not really—it's really another side may increase quickly.

Jack Zhao: It's really another side may increase quickly.

Speaker #6: Okay, understood. It's pretty clear. Yeah. Thank you for taking our questions. I was back with you. Thank you.

Carol Run: Okay, understood. That's pretty clear. Yeah. Thank you for taking my question. I have Jack with you. Thank you.

Carol Juan: Okay, understood. That's pretty clear. Yeah. Thank you for taking my question. I have Jack with you. Thank you.

Speaker #1: Thank you. Next, Mike Young from Bank of America. Go ahead, please.

Operator: Thank you. Next one, Mike Yang, Bank of America. Go ahead, please.

Speaker #5: Hello. Hello, Jack. Can you hear me?

Mike Yang: Hello. Hello, Jack, can you hear me?

Speaker #4: Yes. Yes. Thank you.

Jack Zhao: Yes. Thank you.

Speaker #5: Okay. Yeah. Thank you, Jack, and thank you for taking my question. My first question is kind of a follow-up regarding the fourth quarter outlook.

Mike Yang: Okay. Yeah, thank you, Jack, and thank you for taking my question. My first question is kind of a follow-up for the Q4 outlook. Previously, you mentioned that hopefully, Q4 revenue should still grow by several percentage points on a year-on-year basis. I'm just wondering, does that follow the seasonality, or is there any other factors, including the memory price, to have some impact on your Q4 outlook so far? Thank you.

Speaker #5: Previously, you mentioned that hopefully fourth quarter revenue should still grow by several percentage points on a year-on-year basis. So I'm just wondering, does that follow the seasonality, or are there any other factors, including the memory price, that have some impact on your fourth quarter outlook so far?

Speaker #5: Thank you.

Speaker #4: I think it will follow largely the seasonality. But particularly, we have a TTD device which, when a lot of model will continue to ship units, and that's additional.

Jack Zhao: I think it will follow largely the seasonality. Particularly, we have a TTED device, which win a lot of model, will continue shipping units, and that's additional. Notebook business has been suppressed for a couple quarters. Hopefully, Q4 will have some improvement, and we had experienced not only the memory price increase, we had a shortage of CPU, if you remember, in the Q2 and early Q1. Now, I think CPU for AMD, for Intel, you don't hear anymore. Besides the NVIDIA, the Qualcomm all join to that segment. We keep our view positive and hope and, yeah, later Q3, the NVIDIA system will start the shipping, right? A lot of people pin a lot of hope on this. Let's see how that go.

Speaker #4: The notebook business has been surprising for a couple of quarters, and hopefully Q4 will show some improvement. We had experienced not only a memory price increase, but also a shortage of CPUs, if you remember, in Q2 and early Q1.

Speaker #4: Right now, I think CPU or AMD from Intel you don't hear anymore. And besides the NVIDIA's the core cloud all join to the that segment and we keep our view positive and hope and yeah, you later Q3 you would the NVIDIA the system will start to the shipping, right?

Jack Zhao: A lot of people pin a lot of hope on this. Let's see how that go.

Speaker #4: That's a lot of people who place a lot of hope on this. Let's see how that goes.

Speaker #5: Okay, thank you, Jack. That's very clear. My second question is regarding the function price hike, especially heading into the second half of this year and even into 2027.

Mike Yang: Okay. Thank you, Jack. That's very clear. My second question is regarding to the foundry price hike. Heading into H2 this year and even 2027. Is that the case that you are seeing so far? Previously we were suffering from the OSAT, the package price or cost. Now looking ahead, to your gross margin outlook and also, maybe the guidance, does this kind of foundry price hike already being reflected? Thank you.

Speaker #5: Is that the case that you are seeing so far? I mean, previously we kind of suffered from the offset of the package price or cost.

Speaker #5: But now, looking ahead to your gross margin outlook and also maybe the guidance, is this kind of funding price hike already being reflected? Thank you.

Jack Zhao: Foundry, we're talking about 2027 will increase the price, right? Certainly so far, the guidance will have not been included. We heard that story as well. The foundry might increase the price. Yeah, it's a tough environment. We have to deal with it. I think we are moving quickly to address the back end side of price increase. Yeah, let's see how that play out. Our OEM customer also hear the story, also hear the cost increase, and they may have to go out just what Apple announced, they will have to increase the system price, right? Let's see how that play out. For the consumer PC notebook business in 2026, might be 2027, it's become a quite challenging year and because it's squeezed by the AI applications.

Speaker #4: Foundry, or talking about 2027, will increase the price, right? Certainly, so far the guidance has not been included, and we heard that story as well.

Speaker #4: The foundry might increase the price, and yeah, it's a tough environment. We have to deal with it. I think we are moving quickly to address the back-end side of the price increase.

Speaker #4: And yeah, let's see how they play out. And our OEM customers also hear the story, also hear the cost increase, and they may have to go out just as Apple announced they will have to increase the system price, right?

Speaker #4: So let's see how that plays out for the consumer PC Nova business, and 2026 might be 2027. It's becoming a quite challenging year because it's getting squeezed by the AI applications.

Jack Zhao: For the consumer PC notebook business in 2026, might be 2027, it's become a quite challenging year and because it's squeezed by the AI applications.

Speaker #5: Got it. That's very helpful. Thank you, Jack. I'll go back to the queue. Thank you.

Mike Yang: Got it. That's very helpful. Thank you, Jack. I will go back to the queue. Thank you.

Speaker #1: Thank you. Next, Vivian Young from Nomura. Please go ahead.

Operator: Thank you. Next one, Vivian Yang, Nomura. Go ahead, please.

Speaker #6: Thank you for taking my questions. Hi, Jack and Yo-Ming. So, just a follow-up on the TTD business— I think you mentioned that TTD demand looks sustainable into the fourth quarter, and clear as well.

Vivian Yang: Thank you for taking my question. Hi, Jack and Yo-Ming. Just a follow-up on the TTD business. I think you mentioned that TTD demand looks sustainable, into Q4 and next year as well. Do you have a rough estimate on its penetration rate, or do you have any target?

Speaker #6: Do you have a rough estimate of its penetration rate, or do you have any targets?

Jack Zhao: Yeah. We have some model there, it can be quite exciting. It's a complicated model. You might want to talk to Yo-Ming to get those models. So far, under this year, we had expected above 5 million shipment, but now it's much higher than above 5 million units. It's better than what we had expected. Fundamentally the device has provided a lot of value to the customer. Yeah, we did not expect the adoption so quick.

Speaker #4: Yeah, we have some models there. And it can be quite exciting. And it's a complicated model. You might want to talk to Yo-Ming to get those models.

Speaker #4: And so far, on this year, we had expected the above 5 million shipment, but now it's much higher than the above 5 million ship units.

Speaker #4: So it's better than what we had expected. And it's fundamentally the device and has provided a lot of value to the customer, and so, yeah, we did not expect the adoption to be so quick. However, we also have a new device to address an even broader market, which the previous LTPS type of panel—now we'll address the oxide type of panel.

Jack Zhao: However, we also have a new device to address even broader market, which the previous LTPS type of panel, now we address the oxide type of panel, which the capacity is lot more bigger, also went to more massive the notebook segment, where also we have a device come out, the TTED, to address the high end with the much high resolution, 120 hertz, the refresh rate, the touch, and active stylus. It's pretty powerful, the device. We work with Wacom. I think Wacom also surprised. The single device can do this. You look at the touch. The Japanese Wacom is pretty standard, right? This our device integrate solution so good, and they're also surprised.

Speaker #4: Which the capacity is a lot bigger and also went to more massive, the notebook segment. We also will have a device come out, the TTD, to address the high-end with the much higher resolution, 120 hertz.

Speaker #4: The refresh rate, the touch, and active status—so it's pretty powerful. And the device, and we work with all kinds—I think we're also surprised that a single device can do this.

Speaker #4: You look at and touch the Japanese work, and it's pretty standard, right? So let's solve our device integration solution. It's so good, and they are also surprised.

Jack Zhao: The Japanese Wacom is pretty standard, right? This our device integrate solution so good, and they're also surprised.

Speaker #6: Thanks. Can we have a rough idea about how many TTD chips are used in a single notebook?

Vivian Yang: Can we have a rough idea about how many TTED chips are used in one single notebook?

Speaker #4: Each notebook panel is just one, right? And whatever the number we ship, that's how many notebooks will use it. It's quite a big number and it's going to get much bigger.

Jack Zhao: Each notebook panel is just one, right? Whatever the number we ship is how many notebook will use it. It's quite a big number, and it will getting much bigger.

Vivian Yang: Thank you. A follow-up on previous question on your standards-plus customer. We expect a smaller DRAM impact to the customer. Are we seeing they are having some pricing pressure into their suppliers to reduce some pressure from memory?

Speaker #6: Thank you. And I think, just to follow up on the previous question about your standard plus customer, we expect a smaller demand impact to the customer.

Speaker #6: But are we seeing or having some pricing pressure into the year? Suppliers, to mean, maybe some pressure from memory?

Speaker #4: I think they are openly discussing it in the media. They are going to search for the source and the new memory source. And I think they will.

Jack Zhao: They are openly media discussion. They are going to search for the source and the new memory source. They will, and we see the other OEM already start to use in the China, the DRAM, and, for the outside the US, the market. They got a choke for the DRAM price, and suddenly they have to defend to find the memory to use. They will address that and hopefully they can come through. I know the Micron argue, saying you cannot, but that's what I think. I saw the other OEM already start to use.

Speaker #4: And we see the other OEMs already start to use DRAM in China. And for outside the US, the market, I think they got a shock from the DRAM price.

Speaker #4: And certainly, they have to defend and find the memory to use. So, I think they will address that, and hopefully they can come through.

Speaker #4: I know the micro is arguing with saying you cannot, but that's what I think. And I thought other OEMs already started to use.

Speaker #6: Thank you. And my last question is regarding your third quarter guidance, because as in previous questions, I think you mentioned that we are trying to share some costs with customers as well.

Vivian Yang: Thank you. My last question is regarding your Q3 guidance. As in previous questions, you mentioned that we are trying to share some cost with a customer as well. In terms of Q3 guidance, we know roughly how much would it come from unit and how much comes from ASP?

Speaker #6: So, in terms of third quarter guidance, do we know roughly how much would come from units and how much would come from ASP?

Jack Zhao: That's pretty difficult to provide analysis because ASP side will not increase every device as we shared. We increase the product selectively. Yeah, it's pretty difficult. We also move some of manufacturing side to other place to keep a price in check, just basically try to dodge along the cost increase. Overall, as we pay a lot of attention, put an effort there, Q3, the margin will slightly improve.

Speaker #4: That's pretty difficult to provide analysis because, on the ASP side, we're not increasing every device. As we shared, we increase the product selectively, the product, and yeah, it's pretty difficult.

Speaker #4: And we also moved some of the manufacturing side to other places to keep the price in check, just basically trying to dodge along the cost increase. So overall, as we paid a lot of attention to the effort there, I would think that in Q3 the margin was slightly improved.

Speaker #6: Okay. Thank you, very clear. I will circle Q.

Vivian Yang: Okay. Thank you. Very clear. I will back the queue.

Speaker #1: Thank you. Next one, Lucas Liu, KGI—go ahead, please.

Operator: Thank you. Next one, Lucas Liu, KGI. Go ahead, please.

Speaker #7: Hi. Thanks for taking my question. Jack and Yo-Ming, can you hear me?

Jackson Yong: Thanks for taking my question. Jackson Yong, can you hear me?

Lucas Liu: Thanks for taking my question. Jackson Yong, can you hear me?

Speaker #4: Yes.

Jack Zhao: Yes.

Speaker #7: Okay. Just a follow-up from the TDD shipment. Earlier, you said that your TDD shipment could be more than, like, 5 million units this year and...

Jackson Yong: Okay. Just a follow-up from the TTED shipments here. You said that your TTED shipment could be more than like five million units this year.

Lucas Liu: Okay. Just a follow-up from the TTED shipments here. You said that your TTED shipment could be more than like five million units this year.

Jack Zhao: Okay. The original plan is like $5 million.

Speaker #4: For the original plan, like five.

Speaker #7: Yeah.

Jackson Yong: Yeah. Now it's more than this number, right?

Lucas Liu: Yeah. Now it's more than this number, right?

Speaker #4: Million.

Speaker #7: Yeah, and now it's more than—now it's more than this number, right?

Speaker #4: Yeah.

Jack Zhao: Yeah.

Speaker #7: And I think that's around 3% to 5% of all notebooks per year, or roughly maybe 15% of the total touch notebooks. But previously, in the first quarter earnings call, you had said you have like a 10% share. What's the difference between that 10% market share, and what's your view about that market share growth in the future?

Jackson Yong: I think that's around like 3% to 5% of all notebooks per year, or roughly maybe 13% of the total touch notebooks. You previously, in the Q1 earnings call, you had said you have like 10% share. What's the difference behind that 10% of market share, and what's your view about that market share growth in the future?

Lucas Liu: I think that's around like 3% to 5% of all notebooks per year, or roughly maybe 13% of the total touch notebooks. You previously, in the Q1 earnings call, you had said you have like 10% share. What's the difference behind that 10% of market share, and what's your view about that market share growth in the future?

Jack Zhao: I think 10% should be not that difficult to go to, and you mean 10% of total notebook, right? There are two reasons. One is, the attach rate for notebook panel have a touch is increased quarter by quarter, right? That's the first thing. Another thing is that, yeah, it's really no competition in there. I think that reach the 10%, it's quite reachable. I think that's the good target for us to cracking, and I hope it will be more. That's the goal.

Speaker #4: I think a 10% is pretty—should not be that difficult to go to, and you mean 10% of total notebook, right? And the two reasons.

Speaker #4: One is the attach rate for notebook panels that have touch is increasing quarter by quarter, right? So that's the first thing. The other thing is, yeah, there's very little competition, and I think reaching 10% is quite achievable.

Speaker #4: I think that's a good target for us to crack, and I hope there will be more. So that's the goal.

Speaker #7: Sure. Very clear. Another follow-up question is regarding to the competition, the TDD market. So can you share about your can you share more on your view on the competition like your competitors such as Novatek?

Jackson Yong: Sure. Very clear. My follow-up question is regarding to the competition in the TTED market. Can you share more on your view on the competition like, your competitors such as Novatek or Himax?

Lucas Liu: Sure. Very clear. My follow-up question is regarding to the competition in the TTED market. Can you share more on your view on the competition like, your competitors such as Novatek or Himax?

Jack Zhao: So far, I don't see they're doing that. We don't see the competition. That device is so complicated. So far we have not seen any of this. Especially when you support a stylus, that's really complicated.

Speaker #4: Yeah. So far, I don't see that they're doing that. We don't see the competition; that device is so complicated. And yeah, so far, we have not seen any of this.

Speaker #4: And especially when you support a stylus, that's really complicated.

Speaker #7: Okay. But since you think the design is more complicated, can you share the incremental ASP between TDD and just a single TCON—the ASP difference?

Jackson Yong: Since you think the design is more complicated, can you share the incremental ASP between TTED and just a single T-con between the ASP difference?

Lucas Liu: Since you think the design is more complicated, can you share the incremental ASP between TTED and just a single T-con between the ASP difference?

Jack Zhao: The TTED has a different category, which will integrate a PSR, which has a frame buffer there or without, right? Also different resolution and things, or support the LTPS or support the oxide type of panels. The price If you look at it, the whole set of solution will be compatible as you do the discrete. Okay? The set price, because we are only one device, you need two soft driver, three soft driver, plus one T-con, plus one or two touch chip. Right? We are just single device there and to add that together, right? Those are the equation there. From customer may see a little bit the price break is from, you don't need a T-con board anymore.

Speaker #4: The TTD has a different category, which will integrate a PSR, which is a framework of their own or without, right? So, and also different resolutions and things.

Speaker #4: All supported LPTS or supported the oxide type of panels and but price if you look at the whole set of solution will be compatible as you do the discrete.

Speaker #4: Okay? The set price, because we are only one device, you need a two-source driver, three-source driver, plus one TCON, plus one or two touch chips.

Speaker #4: Right? So, we are just a single device there. And to add that together, right? So, those are the equations there. And from the customer, you may see a little bit of a price break is from—you don't need a TCON board anymore.

Jack Zhao: From customer may see a little bit the price break is from, you don't need a T-con board anymore. The manufacturing is a lot more simpler, and the more important, you achieve your industry desire that the border is very narrow and the panel is much thinner. Because when you do the T-con board, you have to flip your T-con board on the backside of panel. Those are the thing, add a lot of value to customer.

Speaker #4: And the manufacturing is a lot simpler. And, more importantly, you achieve your industry design, so the board is very narrow and the panel is much thinner. Because when you do the TCON board, you have to flip your TCON board to the back side of the panel.

Jack Zhao: The manufacturing is a lot more simpler, and the more important, you achieve your industry desire that the border is very narrow and the panel is much thinner. Because when you do the T-con board, you have to flip your T-con board on the backside of panel. Those are the thing, add a lot of value to customer.

Speaker #4: So those are the things that add a lot of value to customers.

Speaker #7: Got it. Very clear, very helpful. My next question is on the data center side. I assume that there's around $10 million of data center-related revenue in 2025.

Jackson Yong: Got it. That is very clear and very helpful. My next question is on the data center side. I assume that there's around $10 million of data center related revenue in 2025. What did the H1 in 2026 actually contributed from data center revenue and your future target in 2027?

Lucas Liu: Got it. That is very clear and very helpful. My next question is on the data center side. I assume that there's around $10 million of data center related revenue in 2025. What did the H1 in 2026 actually contributed from data center revenue and your future target in 2027?

Speaker #7: So what did the first half in 2026 actually contribute from data center revenue, and what is your future target in 2027?

Speaker #4: Yeah. We continue to ship out the PCI Gen file with timer. PCI Gen, even PCI Gen 4 with timer, will continue to ship for the data center on the storage side.

Jack Zhao: Yeah, we continue to ship our, the PCIe Gen 5 retimer, even PCIe Gen 4 retimer, we are continuing to ship for the data center on the storage side. Those are the stable and the single device price is high. We also ship on the motherboard, on the system side for the redriver, for the storage, and those are. I think the 2026 so far, the H1, it did not grow that much, but, it's equivalent as the 2025. Those are without considering for the cables. Those are the existing, what we have done previously for the design.

Speaker #4: And those are stable, and the single device price is high, and we also ship on the motherboard on the system side for the redriver for the storage. And those are the into, and I think that for 2026 so far, the half year did not grow that much, but it's equivalent as in 2025.

Speaker #4: And those are without considering the cables. Those are the existing ones that we had done previously for the design.

Speaker #7: Got it. So. For like PCI gen 6 like active cables and assume that a 2, 2, 3 meter 224G ACC, how many per rates I see are used and maybe what's the content?

Jackson Yong: Got it. For like PCIe Gen 6, like active cables, and assume that a 2 to 3 meter, 224G ACC, how many Parade's IC are used, and maybe what's the content?

Lucas Liu: Got it. For like PCIe Gen 6, like active cables, and assume that a 2 to 3 meter, 224G ACC, how many Parade's IC are used, and maybe what's the content?

Jack Zhao: It depends. Some of them need a four, some of them need a two. it's a depend. depend on the different cable and different solutions.

Speaker #4: It depends. Some of them need a four, some of them need a two, so it depends. It depends, and depends on the different cable and the different solutions.

Speaker #7: So, it's a wide range, right?

Jackson Yong: it's a wide range, right?

Lucas Liu: it's a wide range, right?

Speaker #4: Yeah. It's quite a wide range. And the price of those single devices is high as well.

Jack Zhao: Yes, it's a quite wide range. device, those single device prices are high as well.

Speaker #7: Got it. And my last question is regarding the fourth quarter 2026 seasonality, and I think your third quarter midpoint is around $146 million, which is flat against the same quarter last year.

Jackson Yong: Got it. my last question is, regarding to Q4 2026, seasonality. I think your Q3 midpoint is around $146 million, it's flattish against same quarter last year. I think in Q1, management has think of maybe +5% year-on-year growth this year. that means, you have to do maybe over $150 million US dollars in Q4, which is up sequentially. how do you think about Q4 at this moment?

Lucas Liu: Got it. my last question is, regarding to Q4 2026, seasonality. I think your Q3 midpoint is around $146 million, it's flattish against same quarter last year. I think in Q1, management has think of maybe +5% year-on-year growth this year. that means, you have to do maybe over $150 million US dollars in Q4, which is up sequentially. how do you think about Q4 at this moment?

Speaker #7: And I think in the first quarter measurement, I think of maybe plus 5% year-on-year growth this year. And that means you have to do maybe over $150 million US dollars in the fourth quarter, which is up sequentially. So, how do you think about the fourth quarter at this moment?

Jack Zhao: I think you have to remember that the unit shipment of notebook PC or we address market. Unit shipment on 2026 versus 2025. Why did people believe had a 10% reduction, right? If we remain the revenue similar, which equivalent, like, we grew about 10% there on the, if the unit price will be the same as 2025. On the 2026, on the Q4, as the previous, the people asked and, also, I shared, I think that we'll have a normal seasonality. For us, more specific is TTD will increase. We certainly hope the unit-wise for the notebook PC shipment will increase because, 2026 relate to too many thing. It was DRAM, the price increase, and then the CPU shortage. Whatever the DRAM price increase, we hope it's already settled.

Speaker #4: I think you have to remember that the unit shipment of Noble PC, or we addressed for mark, we addressed mark unit shipment, and 2026 was 2025.

Speaker #4: Why did people believe there was a 10% reduction, right? So, if we keep the revenue similar, which is equivalent to about a 10% growth there. If the unit price will be the same as in 2025.

Speaker #4: On a 2026 on the Q4 as the previous the previous the people asked and also I shared I think that we will have a normal seasonality and for us more specific is a TTD will increase and we certainly hope the unit-wise for the Noble PC shipment will increase because 2026 will range too many thing.

Jack Zhao: It was DRAM, the price increase, and then the CPU shortage. Whatever the DRAM price increase, we hope it's already settled. We hope those CPU no longer be shortage, and you will have a new CP joining, as NVIDIA's were joining on the Q3 and certainly Q4. We have two device there or multiple device there associated with that system, and those will help.

Speaker #4: It was the DLM price increase, and then the CPU shortage and whatever. The DLM price increase, we hope, is already settled. And we hope those CPUs will no longer be in shortage, and you will have a new CPU join as Nvidia will join in Q3, and certainly in Q4.

Jack Zhao: We hope those CPU no longer be shortage, and you will have a new CP joining, as NVIDIA's were joining on the Q3 and certainly Q4. We have two device there or multiple device there associated with that system, and those will help.

Speaker #4: We have two devices there, or multiple devices there, on the associate with that system, and those will help.

Speaker #7: Got it. And that's all of my questions. I'll be back to the Q, and thanks again for taking my question.

Jackson Yong: Got it. That's all my question. I'll be back to the queue. Thanks again for taking my question.

Lucas Liu: Got it. That's all my question. I'll be back to the queue. Thanks again for taking my question.

Jack Zhao: Sure. Thank you.

Speaker #4: Thank you.

Speaker #6: Next one, same from the year, Morgan Stanley. Go ahead, please.

Operator: Next one, Tiffany Ye, Morgan Stanley. Go ahead, please.

Speaker #8: Again, I'd like to follow up on the copper cable front. I'd like to ask: What is the current target revenue contribution magnitude, and what is the timeline for this product line?

Tiffany Ye: Again. First I'd like to follow up on the copper cable front. I would like to ask, like, what's the current target revenue, contribution magnitude, and also the timeline for this product line?

Tiffany Yeh: Again. First I'd like to follow up on the copper cable front. I would like to ask, like, what's the current target revenue, contribution magnitude, and also the timeline for this product line?

Speaker #4: Yeah, that's a good question. We work with Cable Guy very closely, and so far Cable Guy has not given us the clear MP time. We push very hard, doing the system test and those kinds of things, and hopefully we can lay down or share with you exactly the revenue guidance and those kinds of things.

Jack Zhao: Yeah, that's a good question. We work with CableGuy very closely, and so far, CableGuy has not give us the clear, the MP time, and we push very hard doing the system test and those kind of thing. Hopefully, we can later on share with you and exactly the revenue guidance and those kind of things.

Speaker #8: All right. So, on this product, I would like to ask: what do you think are our advantages compared with our competitors?

Tina Yee: Got it. On this product, I would like to ask, what do you think are our advantages lie in, compared with our competitors?

Jack Zhao: Our CableGuy actually told us our solution are pretty decent. I believe they already look at other people's, our competitor's solutions. We know PCIe better, and we know those competitor better. I think the PCIe would definitely take a lead. On the ACC side, since that was acquisition from Spectra7 last year, we are still getting familiar with those, the ACC cable. The competition, competitor. So far, our key customer, the CableGuy, probably you guys all know who are the major player, who using our solution to make cables. The feedback to us is pretty good. We also participate, as I said, to the New Hampshire plugfest for one or two weeks there. Result being shared by the committee, the result was good.

Speaker #4: Our cable guys actually told us that our solutions are pretty decent, and I believe they already looked at other people's—our competitors'—solutions. We know PCIe better, and we know those competitors better, and I think PCIe would definitely take the lead.

Speaker #4: On the ACC side and since that was acquisition from the Spectra 7 last year and we are still getting familiar with those the ACC cable the competition competitor and but so far our key customer the cable guy probably you guys all know who are the major player who using our solution to make a cables.

Jack Zhao: The feedback to us is pretty good. We also participate, as I said, to the New Hampshire plugfest for one or two weeks there. Result being shared by the committee, the result was good.

Speaker #4: The feedback to us is pretty good, and we also participate, as I said, in the New Hampshire PlugTest for one or two weeks there.

Speaker #4: And the result was shared by the committee, and the result was good.

Speaker #8: Got it. Very clear. And my second question is regarding the auto front. I would like to ask, what's the current revenue exposure to auto for Parade? And it seems that the auto market has seen some recovery, or you could say inventory restocking.

Tina Yee: Got it. Very clear. My second question is regarding the auto front. I would like to ask, what's the current revenue exposure to auto for Parade? It seems that auto market has some recovery or you can say inventory restocking. Are you monitoring that right now and what's the outlook for the coming quarter? Thank you.

Speaker #8: Are you monitoring that right now, and what's the outlook for the coming quarter? Thank you.

Jack Zhao: Yeah. Thank you for that question. We are a little bit enjoy the auto cruise. I think it's not like, what do you say, the restocking. Is because our solution are associated with newer, the EV cars, right? Whether they're in the US, whether in the China, because we have the number 1 US EV car as our customer. So as we have a number 1 EV car vendor in China. So both. Their increase, because around the oil price went up a lot, suddenly EV catch up a lot. We even had experienced some shortage there. Yeah, EV in the Q3 or Q4, the revenue associated with this was slightly increased, just simply because the end customers start to buy more of the EV cars. That's good.

Speaker #4: Yeah. Thank you for that question. We are a little bit enjoying the auto growth. I think it's not like, what do you say, the restocking, because our solutions are associated with newer EV cars.

Speaker #4: Whether they are in the US or in China, and because we have the number one US EV car company as our customer, as well as the number one EV car vendor in China.

Speaker #4: So, both of them are increasing because, in Iran, the oil price went up a lot. Then, certain EV cars shipped a lot, and we even had experience with some shortages there.

Speaker #4: So yeah, EV in Q3 or Q4, the revenue associated with this was slightly increased, and just simply because the end customers started to buy more EV cars.

Jack Zhao: Yeah, EV in the Q3 or Q4, the revenue associated with this was slightly increased, just simply because the end customers start to buy more of the EV cars. That's good. We have our DP hub to design to the EVs or design to the They will start to MP in the Q4 as well. We are shipping quite our high-speed, the so-called auto USB box solution, we also quite ship some of this. Yeah, it looks encouraging, I would think. Especially our converter and DP hub side, looks good.

Speaker #4: And that's good. And we have our DP hub to design into the EVs, or design to the—they will start to MP in Q4 as well.

Jack Zhao: We have our DP hub to design to the EVs or design to the They will start to MP in the Q4 as well. We are shipping quite our high-speed, the so-called auto USB box solution, we also quite ship some of this. Yeah, it looks encouraging, I would think. Especially our converter and DP hub side, looks good.

Speaker #4: And we are shipping quite a bit of our high-speed, the so-called USB auto USB box solution, and we also ship some of this. And yeah, it looks encouraging, I would think.

Speaker #4: Especially our converter and DP hub side look good.

Speaker #8: Got it. So I would like to ask, what's the current Parade content per car right now? And you just mentioned you will have several new products in the next few quarters.

Tina Yee: Got it. I would like to ask, what's the current Parade content per car right now? You just mentioned you will have several new products in the next few quarters. What's the expected increased content in the car in maybe next year or later this year? Thanks.

Speaker #8: So, what's the expected increase in content per car, maybe next year or later this year? Thanks.

Jack Zhao: Yeah. Depend on customer and how many model do they use.

Speaker #4: On customer and how many do they—how many models do they use? And for the US guys, I think each car might be in the neighborhood of $3 type of thing.

Jack Zhao: 在 neighborhood 的 $3。有些人的 DP Hub 会更多，它 above five，这种。更贵的可能不是每一辆车都会用，也许只有高端的会用，因为它们有多个 panel。而中国方面的 EV 车，他们是 model by model 来部署我们的解决方案，所以现在 volume 的增长更多了。这种情况下，不同的客户行为不同。美国客户一旦决定，就会跨界改变，而其他人则是 model by model 部署。

Speaker #4: And some of the people using the DP hub will be more—it's above five and those kinds of things. And unfortunately, the more expensive one may not be used in every car—maybe just only high-end ones will use it.

Speaker #4: And because they have a multiple panel there, and for the China side of EV guys, they deploy our solution model by model to deploy.

Speaker #4: So now you're getting more of the volume increase. So those kinds of stories are different; customers act differently, and the US customer is—once they do the cross-border, they change it.

Speaker #4: But others are deployed model by model.

Tina Yee: Got it. My last question is, what's the current total revenue exposure? What's the targeted revenue that you are looking at in the next few years?

Speaker #8: Got it. So my last question is: what's the current auto revenue exposure, and what's the targeted revenue that you're looking at in the next few years?

Speaker #4: Yeah. This year we definitely will exceed the 10 million, and hopefully, we are targeting to move to the 50 million—those kind of range—in a couple of years, and that's our goal.

Jack Zhao: 今年肯定会超过10 million，我们希望在未来几年达到15 million的范围。That's our goal.

Tina Yee: Very clear. Thank you.

Speaker #8: Got it. Very good. Thank you.

Speaker #1: Thank you for all your questions. We will begin the Chinese question and answer session. 请问提问时间现在开始如果您需要提问请在您的电话机上按米字键以及数字1 当我读出您的名字后请开始发问如果您需要取消发问请按米字键以及数字2 谢谢第一个提问的是 KGI 杰米叶请提问

Operator: Thank you for your questions. We will begin the Chinese question and answer session。中文提问时间现在开始。如果您需要提问，请在您的电话机上按米字键以及数字 1。当我读出您的名字后，请开始发问。如果您需要取消发问，请按米字键以及数字 2。谢谢。第一个提问的是 KGI James Wey，请提问。

Speaker #4: 是 Jason 你好不好意思我刚刚两天有一个会议所以我晚进来了我想问一下那个就是 S5 因为刚才几个前辈其实还就是好像没有提到这个就是因为过了一个季度但有很多事情发生嘛那我想问一下就是这个 S6 我们在 project 黑豹的这个进度然后未来的这个贡献然后还有成本端啊竞争啊就是有没有什么改变就是你可以跟我们分享我刚才有回答这个 related 这个这些问题啊那我们在 Q2 work very hard 这个这个跟我们的 customer 也 work together 在 system level 做一些 testing 做一些这个 system level design 那 project move 这个 very quickly yeah the soon as we 我们说的这个这个这个 into the Q3 的 product 就会 deploy 我们因为我们有两颗这个 big one will deploy the 小的也会 quickly follow up deployed 我不觉得我们有太多的这个这个 project move as 这个我们 expected and 就是 the next the second half laid off 27 会有 revenue contribution and 我想大概就这些吧因为 chip is very big 这个这个我们 put a lot of resource there 那 chip is my complicated 需要 system level 的这些 design

James Wey: Jack，你好，不好意思，我刚刚有一个会，所以晚进来了。我想问一下 ASIC line，因为刚才几个前辈好像没有提到这个。因为过了一个季度，有很多事情发生。那我想问一下 ASIC line，我们在 project tape-out 的进度，未来的贡献，还有成本端、进展，有没有什么改变你可以跟我们分享？

Jack Zhao: 我刚才有回答 related 的这些问题. 我们在 Q2 work very hard, 跟我们的 customer 也 work together, 在 system level 做一些 testing, 做一些 system level design. 我们的 project move very quickly. 就像我们说的, into the Q3 product 就会 tape out. 因为我们有两个冰壶 Westboard, 小的也会 quickly follow up tape out. 我不觉得我们有太多的 project move as 我们 expected, the next H2, laid off 27 会 revenue contribution. 我想大概就是这些吧. 因为 chip 很 big, 我们 put a lot of resource there. 那 chip 也是蛮 complicated, 需要 system level 的这些 design.

Speaker #3: 了解，好，那就是在那个，就是如果这个 Epic 在明年下半年出来之后，还有加上 TDED，是不是其实对于我们的毛利率是会有帮助，是 credit？

James Wey: 了解。好，那如果这个ASIC在明年下半年出来之后，加上TTED，是不是其实对我们的毛利率是会有帮助，是correct？

Speaker #4: 我们 I hope so，这个不会去做一件事，这个 I hope so。我们的 corporate money 对我们 important。

Jack Zhao: I hope so。不会去做一件——

James Wey: 是不好的。

Jack Zhao: I hope so. 我们的 corporate margin 对我们 important.

Speaker #3: 对，了解。所以因为其实今年是非常辛苦的嘛，就所有东西都涨，那但是 mix 来说，如果说明年成长的这两个都是好的，其实就会压力就会小一些。

James Wey: 对，了解。因为其实今年是非常辛苦的，所有东西都涨。但是mixed的时候，如果说明年成长的这两个都是好的，其实压力就会小一些。

Speaker #4: 就看的刚才这个前面的已经写了这个也许 founder 还会涨价啊这个这个我们要去 address it 在这个 market 里面一定要去 address 去去但是今年的 the back end 涨了是很多很多这个是有点 surprise 到了所以所以我们只有跟 customer 去要求一起 share the cost 对吧

Jack Zhao: 就看刚才前面的已经 share 的，也许 foundry 还会涨价，我们要去 address it，在这个 market 里面一定要去 address。但今年的 backend 涨得是很多很多，这个是有点 surprise 到了。所以我们只有跟 customer 去要求一起 share the cost，对吧？

Speaker #3: 对对了解所以因为我看你们第三季其实毛利率也还是维持啦所以应该就是今年大概就是就是这样因为已经涨了很多应该至于一直涨就是应该是可以维持上半年的水准

James Wey: 对，了解。因为我看你们第三季毛利率也还是维持，所以今年大概就是这样，因为已经涨了很多，应该不止于此，应该是可以维持上半年的水准。

Speaker #4: 这样子我们是很不满足我们的这个，觉得毛利率是没有做好，这个我们应该 continue 去 improve 啦。这个，对了，因为我们的 product 也是有 potential 去做这件事。

Jack Zhao: 这样说，我们是很不满足，觉得毛利率没有做好，我们应该continue to improve。因为我们的product有potential去做这件事。

Speaker #3: 是说改设计吗，还是说改 foundry，还是就是有什么方式可以做？我想对第一件事是…

James Wey: 是说改设计吗？还是说改foundry？还是有什么方式可以做？

Jack Zhao: 我想第一件事 address 就是找一些比较 relative、比较便宜的 backend 的 diversify。这个我们已经在做了，对吧？那 foundry 也是一个部分，因为确实也有蛮多的 customer 并不需要我们一定要用 UMC、TSMC，有一些就会比较松一点，因为他们对 cost 也是很在乎。所以要去 diversify out，这个是 true。比如说就像我们些的，我们有一些 TTED，我们就去找一些。因为一开始的技术已经成熟了，我们可以 diversify out，去跟一些 foundry 做一些 cost 比较低一点的。现在的 cost 变成 very significant to us。我是觉得 gross margin 对我们是非常非常重要。

Speaker #4: address 就是找一些比较比较 relative 比较便宜的这个 back end 这个 diversify out 这个我们已经在做对吧已经在做那 foundry 也是一个部分因为确实也有蛮多的 customer 并不需要我们用这么 leading 不是用一定要用这个 UMC TSMC 那有一些就会比较松一点因为他们对 cost 也是很在乎所以所以要去 diversify out 这个这个这个是 true 啦这个是 true 啦比如说就像我们写的我们有一些的 TTED 啊我们就去找一些因为一开始的技术已经成熟了我们可以 diversify out 去跟一些 foundry 做一些比较 cost 比较低一点的对吧这个这个现在的这个 cost 变成这个 very significant to us 我是觉得这个 gross money 对我们是非常非常重要

Speaker #3: 了解那我想问另外一个问题就是因为其实大家好像也不怎么提 AI PC 了嘛但我不知道 Jason 你在美国看就是有没有什么别的想法或是就是因为 AI PC 还可以再期待嘛或者是说可能在 agentic 或者是 influence 之后就是也许在明年可以去想就是 high end 的也许会开始卖得好

James Wey: 懂，了解。那我想问另外一个问题，因为其实大家好像也不怎么提 AI PC 了，但我不知道 Jackson 你在美国看有没有什么别的想法，或者是 AI PC 还可以再期待，或者是说可能在 agentic 或是 inference 之后，也许在明年可以去想，high-end 也许会开始卖得好。

Speaker #4: Edge computing 肯定会再增加，而且 high end 的已经，因为越来越多人，我们现在用的都在 cloud 上面 run model 嘛，对吧？

Jack Zhao: Edge computing 肯定會再增加，而且 high-end 一定會。因為我們現在用的都在 cloud 上面 run model。

Speaker #3: 对对没错

James Wey: 对，没错。

Speaker #4: 这样的方式会是越来越贵这个

Jack Zhao: 这样的方式会是越来越贵。

Speaker #3: 通常会越来越贵是吗

James Wey: 会越来越贵，是吗？

Speaker #4: 美国已经包括我们自己我们公司也有也也有 AI 这个一开始的 AI 都比较便宜 cloud 你觉得多少但是用了多以后这个是 exponential increase 那越来越多的会在 in-house 去 build 所谓的 open way 我们自己也会在做这种事那这一类的这一类的是的你就会要 local 自己的 computer 要有一些这个 computing power 了那这个就是 edge computing 这个逐渐逐渐起来了那我们希望这种 model 会会在 enterprise 里面更加 popular 对吧那希望有比较 powerful 的 notebook 或者 even 有 dedicated box dedicated box 那这也是一个我们 pay a lot of attention 的就是 dedicated 那些这个这个 AI 的 box 这个这个就像前面几个 quarter 这个这个比较 hot 的这个这个用 Apple 的这个这个 yeah 做这些做这些东西嘛我我想这个 chain 应该会在那边了因为 especially 这个这个。大家发觉发觉哦这个 really expensive 这个这个 afterwards 我自己我们公司也 express 一开始的时候很便宜但后来很多优惠越多这个这个是 exponential cost increase

Jack Zhao: 美国已经，包括我们自己，我们公司也有AI。一开始的AI都比较便宜，cloud你觉得多少？但是用得多以后是exponential increase。

James Wey: Mm-hmm.

Jack Zhao: 越来越多的会在 in-house 去 build 所谓的 open-weight model，包括普睿我们自己也会在做这种事。这一类的事你就会要 local，自己的 computer 要有一些 computing power。这就是 edge computing 逐渐逐渐起来了。我们希望这种 model 会在 enterprise 里面更加 popular。希望有比较 powerful 的 notebook，或者 even 有 dedicated box。这也是一个我们 pay a lot of attention 的，dedicated 那些 AI 的 box，就像前面几个 quarter 比较 hot 的，用 Apple 的这个——

James Wey: Yeah。

Jack Zhao: 做这些东西。我想这个 trend 应该会在那边了，因为 especially 大家发觉 very expensive afterwards。我们公司也 experience，一开始的时候很便宜，到后来很多，越用越多，是 exponential cost increase。

Speaker #3: 了解那那如果说这个趋势开始成型的话普瑞在这个地方当然 notebook 就我们本来的就是 notebook 有点好当然我们好嘛那有没有什么就是可以可以有更多的机会 high speed 吗还是。

James Wey: 了解。那如果说这个趋势开始成型的话，普睿在这个地方，当然 notebook 就我们本来的 thing，就是 notebook，好，当然我们好。那有没有什么可以有更多的机会，是 high speed 吗？还是——

Speaker #4: 分在呀我们也在谈蛮多的希望在这上面跟 CPU vendor system vendor 有更多的这个合作的机会去做这些事啦现在的 whether AMD 或者 Intel 或者什么都还在 focus on 这个 data center 的这些 computing 的过程我觉得逐渐逐渐他们会转比如说这个有些 customer 因为他没有 data center 的东西的他就开始转了就 focus on 这个 more on the 这个 edge side 的这个 calculation

Jack Zhao: 我们在谈蛮多的，希望在这上面跟CPU vendor、system vendor有更多的合作的机会去做这些事。现在的whether AMD、Intel或者什么，都还在focus on data center的computing的过程，我觉得逐渐逐渐他们会转。比如说有些customer因为他没有data center的东西，他就开始转了，就focus on more on the edge side的calculation。

Speaker #3: 懂那那如果是这种 enterprise 的的这个就是推推行的或者就是的对象会是谁就是现在的 ND 的品牌业者嘛就是他的整个 ecosystem 会是什么

James Wey: 懂。那如果是这种enterprise推行的对象会是谁？现在的AMD的平台业者吗？

Jack Zhao: Right.

James Wey: 它的ecosystem会是什么？

Speaker #4: 一定是这些这个 enterprise people will use more 我们已经有一些。包括我们公司里面也看到这些 needs 对吧我们自己有一些 build 的一些 model 去发觉哦我要不同的东西去 run 对吧这个这个我们已经看到了我们有些 design 包括我们的 TTED 有一部分的 design 我们都在用 AI 去做这些 design 这个这个这逐渐逐渐就翻 out the world the very expensive using our own 对啊有啊有啊我们已经已经 learn to 这种 expense 在美国已经 learn to 这种 expense 我想不会是我们一家了有很多的企业这个 enterprise 都会碰到这个问题

Jack Zhao: 一定是这些 enterprise people will use more。我们已经有一些，包括我们公司里面也看到这些 needs，我们自己有些 build 的一些 model，就发觉我要不同的东西去 run。这我们已经看到了。我们有些 design，包括我们的 TTED，有一部分的 design，我们都在用 AI 去做。逐渐逐渐就 find out very expensive using our own。对，我们已经 run into 这种 expense，在美国已经 run into 这种 expense。我想不会是我们一家，也有很多的企业，enterprise 都会碰到这个问题。

Speaker #3: 但是你们有比较过，如果自己盖、用自己 local 的这个，会不会比较便宜吗？因为好像也要算 TCO 什么的。

James Wey: 但你没有比较过，如果自己盖，用自己 local 的这个就会比较便宜吗？因为好像也要算 TCO 什么的。

Speaker #4: I'm very sure it's a lot cheaper.

Jack Zhao: Very sure, it's a lot more cheaper.

James Wey: 了解。至少不用被赚。

Speaker #3: 懂至少不用被赚赚那个

Speaker #4: 我觉得有一到一定的时候你不 affordable 那个 numbers exponential growth

Jack Zhao: 我觉得到一定的时候, 你不 affordable, 那个 number is exponential growth.

Speaker #3: 了解懂所以这个明年有有可能就可以看到一些端倪嘛明年

James Wey: 了解。所以明年有可能就可以看到一些端倪吗？

Speaker #4: 我相信这个 industry 大家都很 smart 会去想这不同的办法

Jack Zhao: 我相信这个 industry 大家都很 smart，会去想不同的办法。

Speaker #3: 懂好那我知道了谢谢 Jack

James Wey: 懂。好，那我知道了，谢谢 Jack。

Speaker #4: 谢谢非常感谢各位的提问

Operator: 谢谢。非常感谢各位的提问。目前没有其他的问题，我们将结束今天的会议。非常感谢各位参与璞瑞科技股份有限公司2026年第二季线上财务说明会。今天的会议将到此结束。您现在可以离线了。谢谢，再见。

Speaker #2: 目前没有其他的问题我们将结束今天的会议非常感谢各位参与普瑞科技股份有限公司 2026 年第二季线上法人说明会今天的会议将到此结束您现在可以离线了谢谢再见

Jack Zhao: Everyone, thank you.

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