Question-and-Answer Session
Operator
(Operator Instructions) Your first question will come from the line of Bhavin Shah from JP Morgan. You may proceed.
Bhavin Shah - JP Morgan
Thank you. I just wanted to talk a little bit about whether or not in the future there is a scope for ASP declines to be more moderate. In other words, when you look at new areas of opportunities, especially in the processors and so on, do you think there is a chance -- obviously it is too far out but do you think there is potential for the ASPs to fall at a slower pace because of that?
Dr. Rick Tsai
I think that certainly probably will help the mix and the blended ASP. Whether that will raise the ASP, I think that really depends on how successful we will be in penetrating the market and in ramping the volume. We certainly are driving to penetrating that market very hard and we hope that can really help.
Bhavin Shah - JP Morgan
When you mentioned that foundries will under-perform the semiconductor industry this year, do you still expect the foundry industry to have I guess small growth?
Dr. Rick Tsai
Yes, I think probably flat to -- around flat.
Bhavin Shah - JP Morgan
All right. Okay, thank you.
Operator
Thank you. Your next question will come from the line of William Dong from UBS. You may proceed, sir.
William Dong - UBS
Good evening. I just wanted to touch base on the margin side and the pricing pressure. How much does your competitor play a role into the recent downward trend in pricing?
Dr. Rick Tsai
I think competitors always play a role in the pricing. I would view that in the general picture of supply and demand, and also a function of how strong or how weak their capacity of being loaded -- all those things. These are all commented in our remarks earlier by --
William Dong - UBS
But in terms of technology, do you feel the competitors have narrowed the gap during this transition to 90 and 65? Is that one of the reasons for more pricing pressure? Potentially, could we actually once again widen the technology gap when we go to 45?
Dr. Rick Tsai
I believe the 90-nanometer technology node, the gap was narrowed somewhat. I believe also that we have done quite well at 65-nanometer. We learned a few lessons ourselves. We have done quite well in the 65-nanometer.
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