Question-and-Answer Session
Operator
(Operator instructions) Your first question comes from the line of Randy Abrams with Credit Suisse. Please proceed.
Randy Abrams – Credit Suisse
Yes, thank you. Good morning. For 2010 for deposition and amortization, could you put some numbers around the significant decrease you are expecting, and also if you could say what baseline CapEx you are basing that depreciation forecast on?
Morning Wu
We expect 2010 almost 80% of the Shanghai 8 inch fab will be fully depreciate, so around 13% of the total deprivation will decline.
Richard Chang
Randy, just as we said in Q2, it's about 30% which is 100 million.
Morning Wu
Yes.
Randy Abrams – Credit Suisse
Okay. And if I could follow-up then on the second half of that was the CapEx expectation for 2010, and the second question I wanted to ask was on the 0.18 and above, I mean you mentioned shifts of applications to 12-inch, where is utilization on the 8 inch now and do you see any – or where are you seeing new applications to back those some of that capacity, or do you think it still stays lower utilization?
Richard Chang
You want to talk about CapEx?
En-Ling Feng
Yes, Randy. I think right now we are monitoring the CapEx for 2010 to be slightly higher than this year. This is 190 million. So next year depending on the ramp up for the 65 and 45, we expect it to be slightly higher, but it'll still be much lower than let's say for 2008. So right now we're still finalizing the CapEx numbers, so we cannot disclose the exact numbers at this point. And I will ask Richard to answer the question on the 12 inch fab.
Richard Chang
So far we observed 8 inch fab with the copper backend demand very high, utilization rate is 100%. But for aluminum backend, we see the utilization rate to be around 80% or a little less, about in the range, about 80% so far. I'm sorry. 80% to 81%. So 8 inch utilization rate, we also observed that customers start to demand higher end of foundry services, which is 0.13 microns and 0.11 microns. Randy?
Randy Abrams – Credit Suisse
Okay. If I could follow-up on the CapEx, if it is just up slightly, how much wafer capacity do you plan to have available for 65 nanometer and 40 nm, either in wafers or a percentage of your capacity next year?
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