Dr. Morris Chang

Right. And in fact, we did that. You know, we first did our financial planning. And we decided not to cut dividend. We decided not to sell new stock. We decided to just borrow. And this was also with consultation with Goldman Sachs. We chose borrowing. How much? I looked at the numbers and just as you said, I decided to take half of what Apple said. What Apple said they needed.

Right. And in fact, we did that. You know, we first did our financial planning. And we decided not to cut dividend. We decided not to sell new stock. We decided to just borrow. And this was also with consultation with Goldman Sachs. We chose borrowing. How much? I looked at the numbers and just as you said, I decided to take half of what Apple said. What Apple said they needed.

I know. I know. Well, back in the 90s, in the first, let's say, 15 years, first 10, 12, 15 years ago, of our existence, we were short of capacity almost all the time. And what you just said happened all the time. And so we figured out that we will require a deposit from the customer, and we'll even confiscate the deposit if the time comes for him to take the wafers and he doesn't.

I know. I know. Well, back in the 90s, in the first, let's say, 15 years, first 10, 12, 15 years ago, of our existence, we were short of capacity almost all the time. And what you just said happened all the time. And so we figured out that we will require a deposit from the customer, and we'll even confiscate the deposit if the time comes for him to take the wafers and he doesn't.

And everybody delights in the word confiscate. It was first used by me. I told the salespeople in San Jose, I said, tell the customer that we need a deposit from them because just as you said, It's our money, and it's only their words. They may not want the wafers when the time comes. And I told the salesman, tell the customer they will confiscate the deposit.

And everybody delights in the word confiscate. It was first used by me. I told the salespeople in San Jose, I said, tell the customer that we need a deposit from them because just as you said, It's our money, and it's only their words. They may not want the wafers when the time comes. And I told the salesman, tell the customer they will confiscate the deposit.

And the salesman never heard anything like that before. And so they were in uproar. In happiness, you know, I mean, now, you know, they could actually stand up and tell the customer that we might even confiscate your money. But of course, it really, we never confiscated any money. No, it did happen quite often.

And the salesman never heard anything like that before. And so they were in uproar. In happiness, you know, I mean, now, you know, they could actually stand up and tell the customer that we might even confiscate your money. But of course, it really, we never confiscated any money. No, it did happen quite often.

Particularly in the 2000, we had, I think it was called an internet recession, I think. Because internet was, you know, people were starting companies called pets.com or something, you know. Yeah.

Particularly in the 2000, we had, I think it was called an internet recession, I think. Because internet was, you know, people were starting companies called pets.com or something, you know. Yeah.

I remember it recovered only in 2003. It started in 2001, the first quarter of 2001, and it recovered in the third quarter of 2003. So it was three years. Three years. 2001, 2002, the third, fourth quarter of 2003. Three years. Anyway, the customer, quite a few customers had placed deposits to anticipate normal good times during those years. And we did build the plant. In fact, we bought.

I remember it recovered only in 2003. It started in 2001, the first quarter of 2001, and it recovered in the third quarter of 2003. So it was three years. Three years. 2001, 2002, the third, fourth quarter of 2003. Three years. Anyway, the customer, quite a few customers had placed deposits to anticipate normal good times during those years. And we did build the plant. In fact, we bought.

we purchased, or I should say, yeah, we bought a couple of other companies. And so their plants, their fabs became ours. And the customer didn't need the wafers anymore, didn't need the outputs of those fabs anymore. And we didn't, confiscate their deposits. But we let them delay, you know, demand. And eventually, every one of them, they all used up their deposits.

we purchased, or I should say, yeah, we bought a couple of other companies. And so their plants, their fabs became ours. And the customer didn't need the wafers anymore, didn't need the outputs of those fabs anymore. And we didn't, confiscate their deposits. But we let them delay, you know, demand. And eventually, every one of them, they all used up their deposits.

Well, first, of course, the new or relatively new business development director, C.C., he had the privilege of first telling the lower level purchasing people at Apple. And he got a response back. You must be crazy, you know. So C.C. did not comment on that. At least he said he didn't comment on that. He brought it back to me. And then I went to Apple, myself, and talked to Jeff Williams.

Well, first, of course, the new or relatively new business development director, C.C., he had the privilege of first telling the lower level purchasing people at Apple. And he got a response back. You must be crazy, you know. So C.C. did not comment on that. At least he said he didn't comment on that. He brought it back to me. And then I went to Apple, myself, and talked to Jeff Williams.

So I said to him, we have to issue corporate bonds. I think I used the word prudent. After all the prudent financial planning, we decided that we would take half of what you asked for. He was very quiet about it. He only made one suggestion. He said, well, I think you can eliminate your dividend. You know, your shareholders will understand that. I said, well, no, I don't think I'll.

So I said to him, we have to issue corporate bonds. I think I used the word prudent. After all the prudent financial planning, we decided that we would take half of what you asked for. He was very quiet about it. He only made one suggestion. He said, well, I think you can eliminate your dividend. You know, your shareholders will understand that. I said, well, no, I don't think I'll.

Well, the fact is, I had looked into that. I mean, that's also a reason for, you know, having a high-level consulting firm. advice. About one-third of our investors or shareholders are very seriously interested in the dividends. So if we do what the Jeff Williams said, our stock is going to drop like hell, you know. Trigger a sell-off. Right.

Well, the fact is, I had looked into that. I mean, that's also a reason for, you know, having a high-level consulting firm. advice. About one-third of our investors or shareholders are very seriously interested in the dividends. So if we do what the Jeff Williams said, our stock is going to drop like hell, you know. Trigger a sell-off. Right.