應用材料 (AMAT) 2019 Q3 法說會逐字稿

Welcome to the Applied Materials earnings conference call. (Operator Instructions)

歡迎參加應用材料公司財報電話會議。（操作說明）

I would now like to turn the conference over to Michael Sullivan, Corporate Vice President. Please go ahead, sir.

現在我將把會議交給公司副總裁邁克爾·沙利文先生。請繼續，先生。

Good afternoon, and thank you for joining Applied's Third Quarter of Fiscal 2019 Earnings Call, which is being recorded. Joining me are Gary Dickerson, our President and CEO; and Dan Durn, our Chief Financial Officer.

下午好，感謝各位參加應用材料公司 2019 財年第三季財報電話會議，本次會議正在錄音。與我一同出席的有我們的總裁兼執行長 Gary Dickerson，以及我們的財務長 Dan Durn。

Before we begin, I would like to remind you that today's call contains forward-looking statements, which are subject to risks and uncertainties that could cause our actual results to differ. Information concerning the risks and uncertainties is contained in Applied's most recent Form 10-Q and 8-K filings with the SEC.

在開始之前，我想提醒各位，今天的電話會議包含前瞻性陳述，這些陳述存在風險和不確定性，可能導致我們的實際結果與預期有所不同。有關風險和不確定性的資訊包含在 Applied 向美國證券交易委員會提交的最新 10-Q 表格和 8-K 表格文件中。

Today's call also includes non-GAAP financial measures. Reconciliations to GAAP measures are found in today's earnings press release and in our reconciliation slides, which are available on the IR page of our website at appliedmaterials.com.

今天的電話會議還包括非GAAP財務指標。與 GAAP 指標的調節表可在今天的盈利新聞稿和我們的調節表幻燈片中找到，這些幻燈片可在我們網站 appliedmaterials.com 的 IR 頁面上找到。

And now, I'd like to turn the call over to Gary Dickerson.

現在，我想把電話交給加里·迪克森。

Thanks, Mike. Our results for the third fiscal quarter demonstrate strong execution in an environment that remains challenging for the time being. Overall, our view of 2019 is consistent with what we've previously communicated.

謝謝你，麥克。我們第三財季的業績表明，儘管目前環境依然充滿挑戰，但我們依然取得了強勁的執行力。整體而言，我們對 2019 年的看法與我們先前所傳達的觀點一致。

Within our served markets, foundry and logic spending is strong, while investments by memory and display customers are significantly lower than last year. We also remain mindful of the broader macroeconomic risks. During this industry down cycle, my primary focus is ensuring the organization is executing on the initiatives that will put Applied Materials in the best position for the future. I believe the opportunities for Applied are compelling as powerful new demand drivers emerge in the form of IoT, big data and artificial intelligence.

在我們所服務的市場中，晶圓代工和邏輯裝置的支出強勁，而記憶體和顯示器客戶的投資則比去年大幅下降。我們也始終關注更廣泛的宏觀經濟風險。在當前產業低迷時期，我的主要重點是確保公司執行各項舉措，使應用材料公司在未來處於最佳狀態。我認為，隨著物聯網、大數據和人工智慧等強大的新需求驅動因素的出現，應用科技的發展機會非常可觀。

So even though we are prudently managing discretionary spending in the near term, we are fully funding R&D to accelerate customers' roadmaps and building new products and capabilities that will underpin the company's growth in the years ahead.

因此，儘管我們在短期內謹慎管理可自由支配的支出，但我們仍全力投入研發，以加速客戶的路線圖，並開發新產品和新能力，為公司未來幾年的成長奠定基礎。

In today's call, I'll begin with a brief update on the near-term market dynamics, I'll then talk about emerging technology trends and Applied's strategy to address them, then I'll finish by highlighting some of our recent accomplishments.

在今天的電話會議中，我將首先簡要介紹近期市場動態，然後談談新興技術趨勢以及應用材料公司應對這些趨勢的策略，最後重點介紹我們最近取得的一些成就。

Starting with the current environment. Our views of the semiconductor and display markets are largely unchanged. In memory, spending has softened slightly since our May call. On the supply side, we still see customers making disciplined investments, while adjusting factory output to reduce inventory levels. On the demand side, we believe the price elasticity of NAND is starting to take effect in the form of increases in the average bits per box for both smartphones and PCs.

從當前環境開始。我們對半導體和顯示器市場的看法基本上沒有改變。據我們回憶，自五月的電話會議以來，支出略有放緩。在供應方面，我們仍然看到客戶進行有紀律的投資，同時調整工廠產量以降低庫存水準。在需求方面，我們認為 NAND 的價格彈性開始發揮作用，表現為智慧型手機和 PC 的平均每盒比特數增加。

Based on our current visibility, we remain optimistic about 2020, with an expectation that NAND investments will recover ahead of DRAM. In foundry logic, demand has strengthened as the year has progressed as we see customers accelerating the ramps of their leading-edge nodes. Demand for specialty nodes that serve the IoT, communications, automotive, power and image sensor markets is also driving robust investments in capacity and new technology. Taking these factors into account, our view of overall wafer fab equipment spending for 2019 remains the same, down mid- to high-teens on a percentage basis relative to last year. We see 2020 as a more positive set-up for the industry and Applied, with the start of a recovery in memory investment and sustained strength in foundry logic spending.

根據我們目前的情況，我們對 2020 年仍然保持樂觀，預計 NAND 投資的復甦速度將快於 DRAM。從晶圓代工的角度來看，隨著時間的推移，需求增強，因為我們看到客戶正在加速其領先節點的量產。物聯網、通訊、汽車、電力和影像感測器市場對專用節點的需求也推動了產能和新技術的強勁投資。考慮到這些因素，我們對 2019 年晶圓製造設備總支出的看法仍然不變，與去年相比，以百分比計算將下降 15% 到 10% 左右。我們認為 2020 年對於產業和 Applied 來說是一個更積極的局面，記憶體投資開始復甦，代工邏輯支出也保持強勁勢頭。

In display, there are no significant changes to the outlook we provided last quarter, and we still anticipate our 2019 revenue being down by about 1/3 relative to 2018. Just as in semi, we're excited about the inflections taking place in display and the opportunities these create. We're getting ready for the future by ensuring we have the right portfolio of products to help our customers accelerate the introduction of next-generation technologies, including rigid and flexible OLED and larger substrates for manufacturing.

就業成績而言，我們上個季度給出的展望沒有重大變化，我們仍然預計 2019 年的收入將比 2018 年下降約三分之一。就像在半成品領域一樣，我們對展示領域正在發生的轉變以及這些轉變所帶來的機會感到興奮。我們正在為未來做好準備，確保我們擁有合適的產品組合，以幫助我們的客戶加速推出下一代技術，包括剛性和柔性 OLED 以及用於製造的更大基板。

A few weeks ago, Applied hosted our second AI Design Forum with more than 700 attendees, representing leading companies from across the ecosystem. My main take away from this conference is strong alignment around 4 key themes:

幾週前，Applied 舉辦了第二屆人工智慧設計論壇，700 多名與會者代表了整個生態系統中的領先公司。我從這次會議中得到的主要收穫是，大家在以下四個關鍵主題上達成了高度共識：

First, AI and big data are driving new approaches to computing that require new system architectures built from new types of semiconductor devices.

首先，人工智慧和大數據正在推動運算的新方法，這些方法需要由新型半導體元件建構的新系統架構。

Second, at a time when improvements in power, performance, area and cost are paramount, classic Moore's Law scaling is running out of gas.

其次，在功率、性能、面積和成本的改進至關重要的當下，經典的摩爾定律擴展已經後繼乏力。

Third, to address this, new approaches for semiconductor design and manufacturing are needed. In our view, the new industry playbook has 5 elements. New architectures, new devices in 3D structures, new materials, new ways to shrink feature geometries and new ways to connect chips together.

第三，為了解決這個問題，需要新的半導體設計和製造方法。我們認為，新的產業發展藍圖包含 5 個要素。新的架構、3D結構中的新裝置、新材料、縮小特徵幾何形狀的新方法以及將晶片連接在一起的新方法。

Fourth, to accelerate implementation of the new playbook, companies need to connect and work together differently by breaking down traditional silos. At Applied, we're aligning our strategy and investments around this vision of the future.

第四，為了加速新策略的實施，公司需要打破傳統的壁壘，以不同的方式聯繫和合作。在應用材料公司，我們正在圍繞這個未來願景調整我們的策略和投資。

For example, new types of memory, including MRAM, PCRAM and ReRAM are high potential technologies that can enable new architectures and provide significant PPAC benefits at the edge and in the cloud. But these 3D devices are also incredibly challenging to make at high volume and yield. In the case of MRAM, the device is based on a film stack of more than 30 thin layers, some of which are only 8 atoms high. Missing atoms or imperfections in materials have a significant impact on the performance and endurance of the device.

例如，包括 MRAM、PCRAM 和 ReRAM 在內的新型記憶體是具有很高潛力的技術，可以實現新的架構，並在邊緣和雲端提供顯著的 PPAC 優勢。但是，要大規模、高良率地製造這些 3D 裝置也極具挑戰性。以 MRAM 為例，該裝置基於 30 多個薄層的薄膜堆疊而成，其中一些薄層只有 8 個原子高。材料中缺少的原子或缺陷會對裝置的性能和耐久性產生重大影響。

To help drive adoption of these advanced memories, we recently introduced one of the most sophisticated products we've ever created, combining many of our leadership technologies in one integrated system. This new system has 9 different wafer processing locations and each process chamber can deposit up to 5 different materials. The entire process flow takes place under ultra-high vacuum to keep impurities out, and we use cryogenics and heat to vary process temperatures by hundreds of degrees. All of this is critical to optimize material, structures and interfaces.

為了推動這些先進記憶體的普及，我們最近推出了我們迄今為止創造的最複雜的產品之一，將我們的許多領先技術結合在一個整合系統中。這個新系統有 9 個不同的晶圓加工位置，每個加工腔室最多可以沉積 5 種不同的材料。整個製程在超高真空下進行，以防止雜質進入，我們利用低溫技術和熱能將製程溫度改變數百度。所有這些都對優化材料、結構和介面至關重要。

The system also includes unique onboard metrology that allows us to measure key properties of the materials to 1/100 of a nanometer as they are being created and modified. This next generation of equipment that we call Integrated Materials Solutions is one of the ways Applied is bringing to bear our broad technologies and capabilities to address our customers' most complex challenges.

該系統還包含獨特的機載計量技術，使我們能夠在材料被製造和修改的過程中，以奈米級的精度測量其關鍵特性，精確到奈米的百分之一。我們稱之為整合材料解決方案的下一代設備，是應用材料公司運用其廣泛的技術和能力來應對客戶最複雜挑戰的方式之一。

Another area where Applied has unique technology and breadth is advanced packaging. Applied has the most comprehensive portfolio of solutions to support customers' advanced packaging roadmaps and new heterogeneous integration approaches.

應用材料公司擁有獨特技術和廣泛優勢的另一個領域是先進包裝。Applied 擁有最全面的解決方案組合，可支援客戶的先進封裝路線圖和新的異質整合方法。

In the past quarter, we won an important process tool of record positions at leading customers, securing over 80% of the applications we competed for, including CVD, PVD, CMP, and etch where we have highly differentiated new products. Our inflection-focused innovation strategy is also yielding results with our unit process tools that enable new 3D structures, the introduction of new materials and new ways to shrink. For example, we've been building on our strength in conductor etch for memory by winning new steps in both DRAM and NAND, as well as new positions for critical etch applications in foundry logic.

上個季度，我們贏得了領先客戶的重要製程工具記錄地位，在我們競爭的應用領域中獲得了 80% 以上的份額，包括 CVD、PVD、CMP 和蝕刻，我們在這些領域擁有高度差異化的新產品。我們以轉折點為中心的創新策略也透過我們的單元製程工具取得了成果，這些工具能夠實現新的 3D 結構、引入新材料和新的收縮方法。例如，我們透過在 DRAM 和 NAND 領域贏得新的訂單，以及在代工邏輯的關鍵蝕刻應用領域獲得新的職位，不斷鞏固我們在記憶體導體蝕刻方面的優勢。

We're also finding new ways to deliver more value to customers through our service business. One example of this is using advanced metrology sensors, data science and simulation to speed up the transfer of new technologies from Applied's labs to customers' factories, and then reduce the time it takes to optimize yield, output and cost.

我們也正在探索透過服務業務為客戶創造更多價值的新途徑。例如，利用先進的計量感測器、數據科學和模擬技術，加快將新技術從應用材料實驗室轉移到客戶工廠的速度，並縮短優化產量、產出和成本所需的時間。

While growth in Applied Global Services is slightly below our prior expectations, we still anticipate our combined spares and service revenues being up this year, even as customers pull back on their capital spending and operating expenses.

儘管應用全球服務業務的成長略低於我們先前的預期，但我們仍預期今年備件和服務的綜合收入將有所成長，即使客戶削減了資本支出和營運費用。

Before I turn the call over to Dan, I'll quickly summarize. Our view of 2019 is relatively unchanged. Thanks to the hard work of our employees across the company, we are delivering solid performance, even with the current weakness in memory and display demand.

在把電話轉給丹之前，我先快速總結一下。我們對2019年的看法基本上沒有改變。感謝公司全體員工的辛勤工作，即使在當前內存和顯示器需求疲軟的情況下，我們依然取得了穩健的業績。

During this industry down cycle, we are focused on driving R&D programs and building new capabilities that will move the needle for customers and Applied in the AI era. And we remain excited about our long-term opportunities as these powerful secular demand drivers start to take shape.

在當前產業低迷時期，我們專注於推動研發項目，並建立新的能力，以在人工智慧時代為客戶和應用科技公司帶來變革。隨著這些強大的長期需求驅動因素開始形成，我們對未來的長期機會仍然充滿信心。

Now, Dan will provide his perspective on our results and outlook.

現在，丹將對我們的業績和前景發表他的看法。

Thanks, Gary. In Q3, Applied delivered solid financial results with revenue, margins and earnings above the midpoint of our guidance. Our semi-related business continues to feel stable. And while I'm still not ready to call the bottom of the cycle, I see positive leading indicators of future growth.

謝謝你，加里。第三季度，Applied 的財務表現表現穩健，營收、利潤率和收益均高於我們預期的中位數。我們的半相關業務依然保持穩定。雖然我還不認為週期已經觸底，但我看到了未來成長的積極先行指標。

In memory, our customers reported significant output reductions during the quarter. They discussed inventory reductions in their end markets and demand elasticity across smartphones, PCs and servers.

在記憶體方面，我們的客戶反映本季產量大幅下降。他們討論了終端市場的庫存減少情況以及智慧型手機、個人電腦和伺服器的需求彈性。

In foundry logic, demand is strong, both in the leading nodes and in trailing geometries driven by IoT, communications, automotive, power and sensor applications. We believe our markets will become significantly larger as powerful new demand drivers kick in. And we're positioning Applied to generate strong shareholder value by focusing on our 4 financial priorities:

在晶圓代工領域，無論是領先的節點或是受物聯網、通訊、汽車、電力和感測器應用驅動的後續節點，市場需求都很強勁。我們相信，隨著強勁的新需求驅動因素的出現，我們的市場規模將顯著擴大。我們正透過專注於以下四個財務優先事項，為Applied創造強大的股東價值：

One, we are tightly managing our overall spending. While two, fully funding and expanding our product road map and customer technology engagements to fuel growth. Three, increasing the recurring revenue we earned by helping our customers maximize their returns from the installed base. And 4, delivering attractive cash returns to shareholders.

第一，我們正在嚴格控制整體支出。同時，我們正全力投入資金，擴大產品路線圖和客戶技術合作，以推動成長。第三，透過幫助客戶最大限度地提高現有客戶的收益，增加我們獲得的經常性收入。第四，為股東帶來可觀的現金回報。

For example, this quarter we held overall spending flat but increased the R&D portion of non-GAAP OpEx to 69%. This outcome demonstrates how we are controlling our discretionary spending, while fueling innovation and future growth.

例如，本季我們維持了整體支出不變，但將非GAAP營運支出的研發部分增加到69%。這項結果表明，我們在控制可自由支配支出的同時，也能促進創新和未來成長。

We announced plans to acquire Kokusai Electric to expand our presence into batch technology and accelerate innovation for our customers. This will also strengthen our services and customer support capabilities in the memory markets and throughout Asia. And we delivered on our commitment to return cash to shareholders, including while the Kokusai transaction is being reviewed.

我們宣布計劃收購國際電氣，以擴大我們在批量技術領域的業務，並加速為我們的客戶進行創新。這將增強我們在記憶體市場和整個亞洲的服務和客戶支援能力。我們履行了向股東返還現金的承諾，即使在審查 Kokusai 交易期間也是如此。

During the quarter, we paid $0.21 per share in dividends, including the 5% increase our Board approved in March. And we used $528 million to repurchase over 12 million shares at an average price of around $42 per share.

本季度，我們支付了每股 0.21 美元的股息，其中包括董事會在 3 月批准的 5% 的成長。我們用 5.28 億美元回購了超過 1,200 萬股股票，平均價格約為每股 42 美元。

Over the past year, we've repurchased 68 million shares at an average price below $39, and we have $2.4 billion remaining on our buyback authorization. In short, we're excited about our opportunities, and we're focused on taking actions that will generate significant shareholder value in the years ahead.

過去一年，我們以低於每股 39 美元的平均價格回購了 6,800 萬股股票，我們的回購授權額度還剩 24 億美元。簡而言之，我們對未來的機會感到興奮，並將專注於採取行動，在未來幾年為股東創造巨大的價值。

Now, I'll summarize our Q3 results. We delivered company revenue of $3.56 billion, and non-GAAP gross margin of 44%, both above the midpoint of our outlook. We held non-GAAP OpEx to $746 million, and generated non-GAAP earnings of $0.74, which was near the top end of our guidance range.

現在，我將總結我們第三季的業績。公司營收達 35.6 億美元，非 GAAP 毛利率為 44%，均高於我們預期的中位數。我們將非GAAP營運支出控制在7.46億美元，並產生了0.74美元的非GAAP收益，這接近我們預期範圍的上限。

Turning to the segments. Semiconductor Systems revenue was $2.27 billion, which was above the midpoint of our outlook, and non-GAAP operating margin increased to 27.5%.

接下來進入分段部分。半導體系統業務收入為 22.7 億美元，高於我們預期的中位數，非 GAAP 營業利潤率增加至 27.5%。

Global services revenue was $931 million, which was below the midpoint of our outlook, and non-GAAP operating margin declined to 27.8%. I'll take a moment to explain what we're seeing in AGS.

全球服務收入為 9.31 億美元，低於我們預期的中位數，非 GAAP 營業利潤率下降至 27.8%。我花點時間解釋一下我們在AGS中看到的情況。

Last quarter, I explained that we have 2 kinds of service business, long-term agreements that give us subscription-like revenue and transactional parts and services. In Q3 and in our outlook for Q4, long-term service agreement revenue is growing right in line with our forecasts. But our transactional business is being impacted by the output reductions in memory. We still expect a record year for AGS, but we're lowering our growth target to low single-digits.

上個季度，我解釋過我們有兩種服務業務，一種是長期協議，可以為我們帶來類似訂閱的收入；另一種是交易性零件和服務。第三季以及我們對第四季的展望中，長期服務協議收入的成長與我們的預測完全一致。但是，由於記憶體輸出減少，我們的交易業務受到了影響。我們仍然預期AGS今年將創下歷史新高，但我們將成長目標下調至個位數低水準。

Revenue from our overall semi-installed base business, which includes parts and services, along with upgrades and refurbs, will grow even faster and set a new record. Moving to display, Q3 revenue and operating margin both declined slightly, as we expected.

來自我們整體半成品基礎業務（包括零件和服務，以及升級和翻新）的收入將成長得更快，並創下新紀錄。顯示器業務方面，第三季營收和營業利潤率均略有下降，正如我們預期的那樣。

Next, I'll provide our Q4 guidance. We expect company revenue to be approximately $3.685 billion, plus or minus $150 million, and we expect non-GAAP earnings to be in the range of $0.72 to $0.80 per share. Within this outlook, we expect Semiconductor Systems revenue to be approximately $2.25 billion. Services revenue should be about $955 million. And display revenue should be around $455 million, which would be up 34% sequentially. We expect non-GAAP gross margin to be about 43.5%, and non-GAAP OpEx should be about $755 million.

接下來，我將提供我們第四季的業績指引。我們預計公司營收約為 36.85 億美元，上下浮動 1.5 億美元；我們預計非 GAAP 每股收益在 0.72 美元至 0.80 美元之間。在此展望下，我們預期半導體系統業務營收約為 22.5 億美元。服務業收入預計約9.55億美元。顯示器收入應該在 4.55 億美元左右，較上季成長 34%。我們預計非GAAP毛利率約為43.5%，非GAAP營運支出約為7.55億美元。

Looking ahead to 2020, we continue to expect growth across our markets and a gradual U-shaped recovery. While we only guide one quarter at a time, I'll offer you some planning assumptions for the early part of fiscal 2020 to help with your models.

展望 2020 年，我們繼續預期各市場將保持成長，並呈現逐步的 U 型復甦。雖然我們每次只提供一個季度的指導，但我可以提供一些 2020 財年初期的規劃假設，以幫助您建立模型。

On a quarterly basis, we view $2.2 billion as a good baseline for Semiconductor Systems revenue until we see evidence of a recovery. We expect AGS revenue to be flat with our Q4 guidance, which is a bit better than seasonal. And we expect display to be about flat with our Q4 guidance, which demonstrates our expectation that we've passed to the bottom of the display cycle. Gross margin should remain approximately flat versus Q4 on the mix we foresee, and OpEx should increase to around $800 million as we layer in the annual merit increases, along with R&D for new products and the new technology initiatives Gary described.

從季度角度來看，在看到復甦跡象之前，我們認為 22 億美元是半導體系統收入的良好基準。我們預計 AGS 第四季營收將與預期持平，略好於季節性預期。我們預計第四季度的顯示器銷量將與我們的預期基本持平，這表明我們認為顯示器銷量已經度過了周期的底部。根據我們預測的產品組合，毛利率應該與第四季度基本持平，而營運支出應該會增加到 8 億美元左右，因為我們將年度績效獎金、新產品研發以及 Gary 所描述的新技術舉措都納入其中。

In short, we see structural growth in the years ahead, positive leading indicators for 2020 and the opportunity to drive strong shareholder value by investing in breakthrough innovations that Applied Materials is uniquely positioned to deliver.

簡而言之，我們預計未來幾年將實現結構性成長，2020 年的領先指標將向好，並有機會透過投資應用材料公司獨有的突破性創新來推動股東價值的大幅提升。

Now, Mike, let's begin the Q&A.

麥克，現在我們開始問答環節。

Thanks, Dan. (Operator Instructions) Operator, let's please begin.

謝謝你，丹。（操作員指示）操作員，請開始。

(Operator Instructions) And our first question comes from CJ Muse with Evercore.

（操作說明）我們的第一個問題來自 Evercore 的 CJ Muse。

I guess, first question, in your prepared remarks, you talked about expectations for NAND to recover sooner than DRAM. And so, I guess, on that front, how are you thinking about that coming back in terms of both timing and magnitude?

我想問的第一個問題是，在您準備好的發言稿中，您談到了對 NAND 快閃記憶體比 DRAM 快閃記憶體更快復甦的預期。所以，我想，在這方面，您認為它在時間和規模上會如何回歸？

As well as, as we move from single stack to multi-stack and there's clearly clean room availability, how are you thinking about conversions versus new capacity as that comes online into 2020 and beyond?

此外，隨著我們從單堆式設備過渡到多堆式設備，並且潔淨室的可用性也明顯提高，您是如何看待 2020 年及以後新增產能與現有產能的轉換問題的？

CJ, maybe I'll start and see if Gary wants to offer anything from a technology standpoint towards the end. So when we think about the memory market, and you called out NAND specifically. But let me broaden the comments just a little bit more to encompass the entire memory market.

CJ，或許我可以先開始，看看Gary最後是否願意從技術角度提供一些建議。所以當我們談到記憶體市場時，你特別提到了 NAND。但我想稍微擴大討論範圍，將整個記憶體市場涵蓋在內。

We don't expect to see a recovery in 2019. We see it as a 2020 event. And as you pointed out, we expect to see NAND first then followed by DRAM. If we think about where we sit today from an overall WFE standpoint, the memory markets are clearly down in 2019 versus where we were in 2020, so this is clearly a correction year. But we are seeing early signs of improvement.

我們預計2019年不會出現復甦。我們認為這是2020年的一件大事。正如你所指出的，我們預計首先看到的是 NAND，然後是 DRAM。如果我們從整體WFE的角度來看待我們目前的處境，內存市場在2019年明顯低於2020年的水平，因此這顯然是調整之年。但我們已經看到了一些好轉的早期跡象。

Output across the industry has come down. We are under-shipping true end-market demand from a supply standpoint as we exit the year. This is bringing our customers' inventories down. It's bringing our customers' customers' inventories down, and we do see the early signs of demand elasticity beginning to kick in and signs of price stability. When we net all of this together, we definitely see 2020 as a recovery year in the memory market. And again, we see it as a NAND-led event followed by DRAM.

整個產業的產量都下降了。從供應角度來看，隨著年底臨近，我們的出貨量低於終端市場的實際需求。這將降低我們客戶的庫存。它降低了我們客戶的客戶的庫存，我們確實看到了需求彈性開始出現的早期跡象和價格穩定的跡象。綜合所有因素來看，我們絕對認為 2020 年是記憶體市場的復甦之年。我們再次認為，這是一場以 NAND 為主導，隨後 DRAM 跟進的變革。

In terms of magnitude, I think it's premature to be point specific on any individual market right now into 2020, but we like the setup of what we see. When we take a step back and we think about the long-term in these markets beyond 2020, we do see that there is a data explosion as the data economy kicks in and the value of that data is increasingly going up as companies learn how to monetize it. We see capital intensity going up. We see new forms of memories, which really plays to our strengths in materials. We see our customer base being rational and disciplined. We net all that together, we think there's a real opportunity to go structurally larger as a memory market, off of the levels we're currently seeing in the current environment. So we feel good about the long run.

就規模而言，我認為現在對 2020 年的任何單一市場做出具體預測還為時過早，但我們對目前看到的情況感到滿意。當我們退後一步，展望 2020 年以後的這些市場的長期發展時，我們確實看到，隨著數據經濟的興起，數據量正在爆炸式增長，而且隨著企業學會如何將數據貨幣化，數據的價值也在不斷上升。我們看到資本密集度正在上升。我們看到了新的記憶形式，這充分發揮了我們在材料方面的優勢。我們發現我們的客戶群理性且自律。綜合所有因素來看，我們認為在當前環境下，記憶體市場有很大的機會實現結構性擴張，超越我們目前所看到的水平。所以我們對長遠發展感到樂觀。

Yes. Maybe I can add something relative to our position in memory and also in NAND. I think many of you know that we have a much more balanced overall share across memory and foundry logic. In memory, we increased our share of total spending from less than 15% in 2013 to around 20% today, and we're confident we're going to continue to drive gains into the future.

是的。或許我可以補充一些與我們在記憶體和 NAND 中的位置相關的內容。我想你們很多人都知道，我們在記憶體和代工邏輯方面的整體份額要平衡得多。在記憶體領域，我們的支出佔比從 2013 年的不到 15% 增加到如今的 20% 左右，我們有信心在未來繼續取得成長。

Another thing that's really positive for Applied is memory is very much driven by materials-enabled scaling. And I think everyone's aware, capital intensity has been increasing. We are also engaged with all the major memory companies with Integrated Materials Solutions. Again, it's all about new structures, new materials, how far, especially in NAND, you can scale vertically. So we have very strong pull from customers for new materials, new products, to enable their cost and performance roadmaps.

對應用材料來說，另一個非常有利的因素是，記憶體的發展很大程度上得益於材料技術的進步和規模的擴大。我認為大家都意識到，資本密集度一直在提高。我們還與所有主要的記憶體公司合作，提供整合材料解決方案。再說一遍，這一切都與新的結構、新的材料有關，尤其是在 NAND 快閃記憶體領域，垂直擴展的潛力有多大。因此，客戶對新材料、新產品的需求非常強烈，以滿足他們的成本和性能發展規劃。

In NAND, specifically, we're winning new etch applications in NAND. And to get more layers in NAND, one of the most important things is new materials, especially high selectivity hardmasks where we have very strong capability. I talked last quarter about hardmasks that increased etch selectivity by 50%, and we are seeing strong adoption of those new capabilities across multiple customers with new steps that give us significant TAM growth.

具體來說，在 NAND 領域，我們正在贏得 NAND 的新蝕刻應用。要想在 NAND 中獲得更多層，最重要的事情之一是新材料，特別是高選擇性硬掩模，我們在這方面擁有非常強大的能力。我上個季度談到了硬掩模，它將蝕刻選擇性提高 50%，我們看到許多客戶正在大力採用這些新功能，新的步驟為我們帶來了顯著的 TAM 成長。

So again, we've been increasing our share in NAND. We have new materials and new products that make us very optimistic. We're going to continue to drive strong momentum into the future.

所以，我們再次提高了在 NAND 領域的份額。我們擁有新材料和新產品，這讓我們非常樂觀。我們將繼續保持強勁的發展勢頭。

And our next question comes from Toshiya Hari with Goldman Sachs.

下一個問題來自高盛的 Toshiya Hari。

Congrats on the solid execution. Gary, I was hoping you could talk a little bit about what you're seeing in China from a technology progression perspective, both on the DRAM side as well as the NAND side. It continues to be a pretty big part of your business as well as your peers' businesses in the near term as well. So if you can talk about the rate of progress on the technology front as well as your expectations in terms of WFE for 2019 and preliminary thoughts on 2020. That will be helpful, and I've got a follow-up.

恭喜你們出色地完成了任務。Gary，我希望你能從技術發展的角度談談你在中國看到的一些情況，包括DRAM和NAND方面。在短期內，它仍將是貴公司以及同行公司業務的重要組成部分。所以，如果您能談談技術方面的進展速度，以及您對 2019 年 WFE 的預期和對 2020 年的初步想法，那就太好了。那很有幫助，我還有後續問題。

So our view on China is similar to what we communicated before. We don't see any major inflection in spending. 2019, we see relatively flat versus 2018. If you look at domestic China, our view is a little stronger over the past few months with some increases in memory. For the year as a whole, we see slightly higher spending on foundry logic versus memory. With foundry logic focused on IoT, communications, sensors, those types of devices.

所以，我們對中國的看法與我們之前表達的看法類似。我們沒有看到支出出現任何重大轉變。2019 年與 2018 年相比，情況相對穩定。如果觀察中國國內市場，我們的觀點在過去幾個月有所增強，記憶力也有所提升。從全年來看，我們看到代工邏輯晶片的支出略高於記憶體晶片。代工廠的邏輯主要集中在物聯網、通訊、感測器等類型的設備上。

In our -- in display business in China, we believe that's going to be down roughly in line with our global display forecast. Overall, in China, we have a great position, semi-service. We've been in China for 35 years. The display is a great team for us, very, very strong customer relationships and engagements.

就我們在中國顯示器業務而言，我們認為這將大致與我們的全球顯示器預測保持一致。整體而言，我們在中國擁有優越的地位，半服務型企業。我們在中國已經35年了。這個展示團隊對我們來說非常棒，我們與客戶建立了非常強大的關係和互動。

Relative to the technology progression, I don't really think, again, anything has changed from what we communicated before. As I said, we believe the foundry logic on the trailing nodes is where we will see over half of the domestic investment this year. We think that market is going to continue to grow. If you look at image sensors, that's going to be a very strong market. And we see the investment there as being rational and in line with the increase in demand for those types of products.

就技術進步而言，我認為，和我們之前溝通的內容相比，並沒有什麼改變。正如我所說，我們相信今年國內投資的一半以上將集中在後端節點的代工邏輯上。我們認為這個市場將會持續成長。如果你專注於影像感測器，那將是一個非常強勁的市場。我們認為這方面的投資是合理的，符合市場對這類產品日益增長的需求。

Memory is a -- those are very difficult technologies, and it's a long road to be able to produce those technologies at a competitive level for performance and cost. As we've communicated before, we don't see any big hockey sticks. I really don't see much different than what we saw before. We think it's going to be a long journey and incremental spending going forward.

記憶體是——這些都是非常複雜的技術，要達到效能和成本的競爭力水平，還有很長的路要走。正如我們之前溝通過的那樣，我們沒有看到任何重大突破。我真沒看出跟以前有什麼太大差別。我們認為這將是一段漫長的旅程，未來的支出也將逐漸增加。

Great. And as my follow-up, I wanted to ask about market share. If we take your October quarter guide for the Semiconductor Systems business and the guide from Dan into the January quarter, I guess, we get a calendar '19 segment revenue number that's slightly better than what you described for overall WFE. Is the slight market share gain implied in your guidance a function of your SAM acting a little bit better than prior years? Or are you actually picking up share within the markets that you serve?

偉大的。作為後續問題，我想詢問市場份額狀況。如果我們採用您 10 月份對半導體系統業務的季度指引，以及 Dan 對 1 月份季度的指引，我想，​​我們得到的 2019 年全年分部收入數字將略好於您所描述的 WFE 整體收入。您業績指引中暗示的市場佔有率小幅成長，是否是因為您的銷售和行銷（SAM）表現比往年略好？或者，你實際上是否在你所服務的市場中獲得了份額？

Toshiya, so there's no question, 2019 is a more favorable setup for Applied. And I have really very strong confidence that we're in a great position to keep the momentum going into the future.

Toshiya，所以毫無疑問，2019 年對 Applied 來說是更有利的一年。我非常有信心，我們處於非常有利的位置，能夠將這種勢頭保持下去。

If you look at the third-party data for overall spending, you'll see that we've been on a trend of higher or flat share, all the way back to 2012, except last year where the mix was very heavy in places like batch processing, dielectric etch, litho where we don't participate. So absolutely the mix is more favorable for us this year, so we are not going to make any specific predictions. But the set up for sure is much better for us this year.

如果你查看第三方整體支出數據，你會發現自 2012 年以來，我們的份額一直處於上升或持平的趨勢，只有去年例外，因為去年的份額主要集中在批量處理、介質蝕刻、光刻等領域，而我們並未參與這些領域。所以今年的情況對我們更有利，因此我們不會做出任何具體的預測。但今年的安排對我們來說肯定好得多。

We're winning many head-to-heads and especially in applications. We have a very strong pipeline of new products, including products that expand our positions into the markets that we don't currently serve. Some of those products are already gaining traction with major customers. I spent a lot of my time with the customer and R&D leaders, that's what I love to do more than anything else. And in discussions with them, it's clear that they're struggling to deliver improvements in power, performance and cost.

我們在許多直接對決中都取得了勝利，尤其是在應用方面。我們擁有非常強大的新產品儲備，其中包括能夠拓展我們在目前尚未涉足的市場領域地位的產品。其中一些產品已經獲得了主要客戶的青睞。我花了很多時間和客戶及研發負責人在一起，這是我最喜歡做的事。在與他們的討論中，很明顯，他們在功率、性能和成本方面都難以取得進展。

I think it's also clear, and this was evident at the AI Design Forum last month that the future's not going to look like the past. The classic 2D scaling isn't working. In all my interactions with R&D leaders, they talk about new materials, 3D structures, new ways to connect chips together, new ways to drive cost. And I really deeply believe, Applied is in the best position we've ever been in to enable this new playbook with the breadth of products we have to create, shape, modify and analyze new structures. Our combined capability is unique, enables us to deliver Integrated Materials Solutions. We talked last year about 1,000x improvement in leakage current. We talked this year about this amazing MRAM capability, and those are new ways to drive performance in power performance area and cost.

我認為這一點也很明顯，上個月的人工智慧設計論壇也證明了這一點：未來不會像過去一樣。傳統的二維縮放方法行不通。在我與研發負責人的所有交流中，他們都在談論新材料、3D 結構、連接晶片的新方法、降低成本的新方法。我深信，憑藉我們擁有的廣泛產品，Applied 目前處於前所未有的最佳位置，能夠利用這些產品來創建、塑造、修改和分析新的結構，從而實現這一新的戰略目標。我們綜合具備的獨特能力，使我們能夠提供整合材料解決方案。我們去年討論過漏電流降低1000倍的問題。我們今年討論過這種令人驚嘆的 MRAM 功能，這些都是在功耗效能和成本方面提升效能的新方法。

And also, we're currently engaged with all major customers in memory and foundry logic with these new integrated material solutions. So that combination of new IMS solutions, our capability to enable the new playbook, new products, put us in a great position to accelerate roadmaps for customers and drive future growth for Applied. So again, I like the setup for 2019 and also into the future.

此外，我們目前正與記憶體和代工邏輯領域的所有主要客戶合作，推廣這些新的整合材料解決方案。因此，結合新的 IMS 解決方案、我們實施新策略和新產品的能力，我們處於有利地位，可以加快客戶的路線圖，並推動 Applied 的未來成長。所以，我再次強調，我喜歡2019年以及未​​來的發展方向。

Our next question comes from Atif Malik with Citi.

下一個問題來自花旗銀行的阿提夫‧馬利克。

Good job on the execution. Gary, a couple of memory makers have talked about CapEx being down for next year. You sound optimistic on NAND and your peers have said the same. How do you reconcile these 2 and what is your view based on the recovery in memory pricing or share availability?

執行得很好。Gary，有幾家記憶產品製造商談到明年的資本支出將會下降。你對NAND快閃記憶體持樂觀態度，你的同行也持相同看法。您如何調和這兩者？根據記憶體價格或股票可用性的恢復情況，您的看法是什麼？

Atif, this is Dan. I think I'll jump in and take this. So all we can bake into our forecast and the expectations we set into the market are the things we see, the conversations we have with our customers about expectations out into the future as well as the bottom modeling we do from an industry and end-market device standpoint, and the consumption of bits in those boxes as well as top-down economic modeling and forecasting.

阿提夫，這位是丹。我想我還是加入進來吧。因此，我們能夠納入預測和市場預期的，只有我們所看到的、我們與客戶就未來預期進行的對話、我們從行業和終端市場設備角度進行的自下而上的建模、這些設備中的比特消耗量以及自上而下的經濟建模和預測。

And as you can imagine, our forecast comes together, it's a triangulation of those events. But we've spent a lot of time talking to customers and based on all of the information that we have to date, our best view out into the future is for 2020 to be a recovery year in the memory market and for WFE to be up year-over-year.

正如你所想，我們的預測是綜合考慮這些事件而得出的。但是我們花了很多時間與客戶交談，根據我們目前掌握的所有信息，我們對未來最好的展望是 2020 年內存市場將復蘇，WFE 將同比增長。

That said, in this environment, we are setting an expectation. And we think it's prudent to do this, setting an expectation for gradual U-shaped recovery. If the industry does better than we're currently contemplating, then we, as a company, will benefit in a very material way, and we like that setup. But when we net it all out, to us, it's a matter of when, not if. And in our view, it's a 2020 event for memory.

也就是說，在這種環境下，我們正在設定一個預期。我們認為這樣做是明智的，可以預期經濟將逐步呈現 U 型復甦。如果產業發展狀況比我們目前設想的要好，那麼作為一家公司，我們將從中獲得非常實質的利益，我們喜歡這樣的局面。但總的來說，對我們來說，這只是時間問題，而不是會不會發生的問題。在我們看來，這是2020年的一件值得紀念的大事。

Our next question comes from John Pitzer with Credit Suisse.

下一個問題來自瑞士信貸的約翰‧皮策。

Congratulations on solid results, given all the uncertainty in the macro. Gary, wondering if you could spend a little bit more time talking about the market opportunity for sort of the N minus 1 at the foundries being driven by industrial, auto, IoT. How big do you think that is?

鑑於宏觀經濟情勢的種種不確定性，祝賀你們取得如此優異的成績。Gary，我想請你多花一點時間談談工業、汽車、物聯網驅動的鑄造廠中 N-1 的市場機會。你覺得它有多大？

And I guess, importantly, with trailing edge nodes staying stronger longer, what does that do for reuse at the foundries at leading-edge? Is that actually driving a bigger end spend because reuse is slowing down?

而且我認為，更重要的是，由於後緣節點能夠更長時間地保持強度，這對前沿代工廠的重複使用有什麼影響？由於再利用速度放緩，這是否實際上導致了終端支出增加？

Yes. Yes, I think, for sure, we see that this, especially market growth, is going to continue to increase for the future. If you think about -- people talk about a trillion connected devices and generating significant amounts of data, that's right smack dab in the middle of that type of market. And this is a really great growth opportunity for Applied.

是的。是的，我認為可以肯定的是，我們可以看到，尤其是市場成長，未來將會繼續增加。想想看——人們談論著數兆台連網設備，它們正在產生大量數據，而這正是我們正處於這類市場的核心位置。這對應用科技來說是一個非常好的發展機會。

We have a great portfolio of products across 200- and 300-millimeter technology. If you look at foundry logic, again, maybe some people don't understand the dynamics, about 50% is growing in areas like IoT, communications, auto, power devices and sensors and innovation there is really driven by materials innovations. So again, those are areas where Applied has a significant strength. We've increased focus on these markets, and we have a great team of leaders across the company to work with customers to enable their roadmaps. I mean, I personally have visited a lot of these key customers over the last 2 or 3 months, tremendous pull for the technologies that we're developing.

我們在 200 毫米和 300 毫米技術領域擁有豐富的產品組合。如果你看看代工邏輯，也許有些人不了解其中的動態，大約 50% 的成長發生在物聯網、通訊、汽車、電力設備和感測器等領域，而這些領域的創新實際上是由材料創新驅動的。所以，這些領域正是應用材料具有顯著優勢的領域。我們加大了對這些市場的關注，公司內部有優秀的領導團隊，與客戶合作，幫助他們實現發展路線圖。我的意思是，在過去的2到3個月裡，我親自拜訪了許多這樣的重要客戶，他們對我們正在開發的技術有著巨大的需求。

I'll give you one example of a situation that happened this last quarter. We won 2/3 of the revenue opportunities at a major customer in this specialty market where the selections are very sticky over many, many years. Once you're qualified, you're in for a long period of time. So again, that was a case where in terms of the spending, we were winning a huge percentage of those opportunities. And this is, again, all about materials, innovations and structures, and we have a lot of technologies currently that are unique for these particular markets. And we have an increased focus there in developing new technologies.

我舉一個上個季度發生的例子。在這個專業市場中，客戶的選擇多年來都非常穩定，我們贏得了主要客戶三分之二的收入機會。一旦你獲得資格，你就能長期從事這項工作。所以，再一次，就支出而言，我們贏得了很大一部分機會。而這一切，歸根究底，都與材料、創新和結構有關，我們目前擁有許多針對這些特定市場的獨特技術。我們更加重視在那裡開發新技術。

Our culture is really focused on being the preferred strategic partner for all of our different customers, enabling their technology roadmaps, enabling their future for those different markets. Going forward, this is a great opportunity for us to partner with these customers, the breadth of technologies combined with Integrated Materials Solutions, I think really puts us in a really good position.

我們的企業文化真正專注於成為所有不同客戶的首選策略夥伴，協助他們實現技術路線圖，協助他們在不同市場的未來發展。展望未來，這將是我們與這些客戶合作的絕佳機會，廣泛的技術與整合材料解決方案相結合，我認為這真的使我們處於非常有利的地位。

And, John, just a follow-up and add a little bit to what Gary said, which talks about reuse and the implication that has for spend on the leading-edge. I do think we're seeing a different pattern evolve in the industry. When I walked in the front door a couple of years ago, I think we had a point of view on what the total capacity footprint in 28 nanometers was for the industry, and that has gone up significantly in the last couple of years.

約翰，我再補充一下加里剛才說的話，他談到了再利用以及這對尖端技術支出的影響。我認為我們正在看到行業內出現一種不同的發展模式。幾年前我剛進公司的時候，我們對 28 奈米技術在產業中的總產能佔比有一個自己的看法，而近幾年來，這個數字已經大幅成長。

We're looking at mature nodes. And the way the industry used to work, as you know, you'd introduce a new node, you'd have a big investment cycle to put the capacity statement in place. And then, you'd see the investment level falloff on that node. And then, our customers would opportunistically look to reuse equipment as they build out the next node.

我們正在查看成熟節點。如你所知，過去這個行業的運作方式是，當你引入一個新節點時，你需要一個龐大的投資週期來落實產能聲明。然後，你會看到該節點上的投資水準下降。然後，我們的客戶會在建置下一個節點時伺機重複利用設備。

I think what we're seeing is investment profiles, many years after the introduction of the node, being much larger than we've seen historically and I do think that, that's going to impact the rate of reuse as these more mature nodes continue to grow in size relative to our original expectations. So we really like the way the industry is broadening and diversifying, and the implications that has long term on the attractiveness of this market for us.

我認為我們現在看到的是，在節點推出多年之後，投資規模比以往任何時候都要大得多，而且我認為，隨著這些更成熟的節點規模相對於我們最初的預期繼續增長，這將影響節點的再利用率。因此，我們非常看好這個產業的拓展和多元化發展，以及這對我們長期提升市場吸引力所產生的影響。

Just quickly, as my follow-up, I know you guys only guide one quarter out. But you give us some sort of signpost for entering fiscal '20, which would suggest that revenue and gross margin kind of flattish at these levels, but OpEx is going up? I'm just kind of curious, are you clearly signaling to us that op margins start off a little bit weaker in the fiscal year 2020? Or are these more rounding errors? But if it's the former, when do you start to reestablish kind of operating leverage in the model?

我再補充一點，我知道你們只負責一個季度的指導工作。但您能給我們一些關於進入 2020 財年的指示性資訊嗎？這表明收入和毛利率將維持在目前的水平，但營運支出將會上升？我只是有點好奇，你們是否明確地向我們暗示，2020 財年的營業利潤率會略微走弱一些？或者這些只是捨入誤差？但如果是前者，那麼何時才能開始在模型中重新建立某種營運槓桿呢？

John, so just a little perspective on how we view OpEx and operating margin and maybe the commentary gets at the point that you're asking. So this is a company we're very focused on increasing operating margin percentage over time. I think what you saw in the most recent quarter is a very disciplined approach to the OpEx. We're compressing discretionary spend, and we're channeling more of our OpEx towards the R&D engine, things that are going to fuel growth at the company over time. And so 69% is a record high for the company, and we feel good about that discipline.

約翰，我只想稍微談談我們如何看待營運支出和營運利潤率，也許我的評論能解答你的疑問。所以，我們這家公司非常注重隨著時間的推移提高營業利益率。我認為，在最近一個季度中，我們看到的是一種非常嚴謹的營運支出管理方法。我們正在壓縮可自由支配的支出，並將更多的營運支出投入研發領域，這些措施將隨著時間的推移推動公司的發展。因此，69% 是公司創紀錄的高值，我們對這種紀律感到滿意。

What you see profiling into Q1 is the annual merit increase that we get every year, but it's also a statement around the opportunities we see. Moore's Law is hitting a wall. Gary has talked about a new playbook that is going to increasingly define the power performance roadmap of this industry that creates an enormous set of opportunities for us. We are going to invest in R&D. We are going to drive growth and drive leadership into this industry over the next decade as it fundamentally inflects and drives the power performance roadmap in a very different way than we've seen historically.

第一季的概況是我們每年都會獲得的年度績效加薪，但這同時也反映了我們看到的機會。摩爾定律遇到了瓶頸。Gary 談到了一個新的策略，它將日益定義這個產業的功率表現路線圖，為我們創造了巨大的機會。我們將加大研發投入。未來十年，我們將推動該行業的成長並引領產業發展，因為它將從根本上改變和推動電力性能路線圖，這與我們以往所見的截然不同。

The way -- from where we sit today, we expect our semi business to be up year-over-year. We expect our services business to be up off of these levels year-over-year, and we expect our display business to also grow into next year. And as the industry recovers, and we take our company structurally larger, I think you're going to see the operating margins expand as we grow the company and the investments that we're making today to drive that future leadership should allow us to outperform as that industry recovers.

從我們目前的情況來看，我們預計我們的半拖車業務將同比增長。我們預期我們的服務業務將比去年同期有所成長，我們也預期我們的展示業務明年也將成長。隨著產業復甦，以及我們公司結構規模的擴大，我認為隨著公司的發展，營業利潤率將會擴大，而我們今天為推動未來領先地位所做的投資，應該能夠讓我們在行業復甦時取得優異的業績。

Our next question comes from Harlan Sur with JPMorgan.

下一個問題來自摩根大通的哈蘭‧蘇爾。

Nice job on the quarterly execution. On the strong sequential growth outlook in display in Q4 and the sustained levels into early next fiscal year, can you guys just help us understand the mix, large-screen versus mobile OLED? And how do you see that mix as we look into next fiscal year?

季度執行工作做得很好。鑑於第四季度顯示器業務強勁的環比增長前景以及下一財年初期的持續增長勢頭，各位能否幫我們分析一下大屏幕與移動 OLED 顯示器的組合情況？那麼，展望下一個財政年度，您如何看待這種組合？

Sure. Absolutely. Yes. So let me give color on the display business and this gets at your question. As we said in the prepared remarks, we still see display down about 1/3 versus 2019. We don't guide display fab equipment, but this is basically what customers are telling us about next year.

當然。絕對地。是的。那麼，讓我來詳細介紹一下顯示器產業，這就能回答你的問題了。正如我們在準備好的演講稿中所說，我們仍然看到展示量比 2019 年下降了約 1/3。我們不指導顯示器製造設備，但這基本上是客戶告訴我們的關於明年的情況。

We see 2020 for Applied being higher than 2019. We also expect TV investment to be roughly flat next year. Many of these are Gen 10.5, there are long lead times, and so we have pretty good visibility into that part of the market. And we do expect mobile OLED to increase as a percentage of the overall market next year. So we do see the overall display business being up next year. Longer term, we believe the market is still going to be cyclical. But we continue to be optimistic about the market based on trends, including TV size and build-out of Gen 10.5 that's going to take many years, the mobile OLED conversion and eventually innovations like RGB OLED TV, foldable smartphone, all of those different areas.

我們看到 2020 年應用型大學的入學人數高於 2019 年。我們也預計明年電視投資將大致持平。其中許多都是第 10.5 代產品，交貨週期很長，因此我們對這部分市場有相當清楚的了解。我們預計明年行動 OLED 在整個市場中所佔的比例將會上升。因此，我們預計明年整體顯示器業務將會成長。從長遠來看，我們認為市場仍將保持週期性波動。但我們仍然對市場保持樂觀，這基於各種趨勢，包括電視尺寸和第 10.5 代電視的構建（這將需要很多年時間）、移動 OLED 的轉型以及最終像 RGB OLED 電視、可折疊智慧型手機等創新，所有這些不同的領域。

For Applied, the adoption of OLED, I think many of you know, is also more capital-intensive. So as those technologies are adopted in more types of devices, that's good for us from a capital intensity standpoint.

對於應用材料公司而言，OLED 的採用，我想你們很多人都知道，也是一項資本密集的投入。因此，隨著這些技術被更多類型的設備採用，從資本密集度的角度來看，這對我們來說是件好事。

We're also investing to drive new products to expand into very large TAM growth areas. We're not to give any more color today about those specific products. But again, the pull from customers is still very strong, and we're making progress in those areas.

我們也正在投資開發新產品，以拓展到市場潛力巨大的成長領域。今天我們不便透露更多關於這些具體產品的資訊。但是，客戶的需求依然非常強勁，我們在這些領域也取得了進展。

Together, take all this together, we see good opportunities to drive growth in our display business into 2020 and beyond.

綜合以上所有因素，我們看到了在 2020 年及以後推動顯示器業務成長的良好機會。

Great. And then maybe as a follow-up to one of the prior questions. On your new MRAM and storage-class memory PVD platforms, just given the increase in content and microcontrollers, in IoT industrial and automotive applications and a growing need for higher embedded memory density for MCU, seems like there's just as much opportunity on legacy semi MCU processes as there is for high-performance storage class memory architectures. Has the team tried to size the SAM opportunity here for your 2 new platforms, sort of looking out over the next 2 to 3 years?

偉大的。然後，或許可以作為對先前某個問題的後續問題。鑑於物聯網、工業和汽車應用中微控制器和內容的增加，以及MCU對更高嵌入式記憶體密度的需求不斷增長，您新的MRAM和儲存級記憶體PVD平台似乎與高效能儲存級記憶體架構一樣，在傳統半導體MCU製程上也存在著巨大的機遇。團隊是否嘗試評估你們兩個新平台在未來 2 到 3 年內的 SAM 機會？

Yes, thanks for the question. So we think this market is going to start small. It's around $100 million for us so far. But as you mentioned, it's very strategic in future custom applications. We see this type of device moving from NOR flash replacement to bigger applications like L3 cache replacements, especially DRAM replacement. Again it's not something that's going to ramp overnight, but we do see incremental growth in the market.

是的，謝謝你的提問。所以我們認為這個市場一開始規模會比較小。到目前為止，我們已經投入了大約 1 億美元。但正如您所提到的，這在未來的客製化應用中具有非常重要的戰略意義。我們看到這類裝置正從替代 NOR 快閃記憶體轉向更大的應用，例如替代 L3 緩存，尤其是替代 DRAM。這不會在一夜之間迅速增長，但我們確實看到市場正在逐步成長。

And then, I think for us, when I was at Semicon and AIDF, this was one of the things for me, personally, I was most excited to talk about. Because when you think about these new devices, I think many of you know, it takes many, many, many years to go from a single structure that you publish a paper with certain kinds of performance to making billions of those devices at the right cost, high yield, speed, power, endurance, all of those things.

然後，我認為，對我來說，當我在 Semicon 和 AIDF 工作時，這是我個人最興奮想要談論的事情之一。因為當你思考這些新設備時，我想你們很多人都知道，從你發表論文描述的單一結構，到以合適的成本、高良率、高速度、高功率、高耐久性等所有條件製造數十億個這樣的設備，需要很多很多年的時間。

And so talking about the system that we had at Semicon, you have all this amazing technology into 1 Integrated Materials Solution and ultra-high vacuum. You have a structure that's like an atomic layer 3D printer almost, where you're -- you have a structure with more than 30 layers, some only 8 atoms high, 10 different materials, temperatures on the wafer that range about 500 degrees C. And the ability to measure the key properties of the materials as they are being created to 1/100 of a nanometer.

所以，說到我們在 Semicon 上使用的系統，它將所有這些驚人的技術整合到一個整合材料解決方案和超高真空中。你擁有一個類似原子層 3D 列印機的結構，它由 30 多層組成，有些層只有 8 個原子高，使用了 10 種不同的材料，晶圓上的溫度範圍約為 500 攝氏度。而且，它還能夠測量材料在生成過程中的關鍵特性，精度達到奈米的百分之一。

And all of this, all of this is really critical to optimize the material structures and interfaces. So again, certainly, the better you can drive the performance, yield, reliability, the more applications you can win and the faster the market ramps. And so what we're excited about, and certainly, the companies that we're working with, they're very excited about, is being able to scale a technology like this into high-volume, high yield and right cost and right performance.

所有這一切，對於優化材料結構和介面都至關重要。所以，當然，性能、產量、可靠性越好，就能贏得越多的應用，市場擴張速度就越快。因此，我們感到興奮的是，當然，與我們合作的公司也感到非常興奮的是，能夠將這樣的技術擴展到高產量、高收益、合適的成本和合適的性能。

So again, we see this market as small today but certainly, relative to future compute architectures, it is very, very, very important.

所以，我們再次認為，這個市場目前規模很小，但相對於未來的運算架構而言，它肯定非常、非常、非常重要。

Our next question comes from Timothy Arcuri with UBS.

下一個問題來自瑞銀集團的Timothy Arcuri。

I had a question on service. I don't know if, Gary, you want to take it or, Dan, you want to take it. But if I look at July, service was like $60 million light in July. And then October, you have been saying kind of like high single digit for the year. So that would imply that the October number is like coming in at about $150 million light of what you thought it would be. So that's like a $200-million number over a 6-month period. And so that's like 10% of the entire AGS segment revenue.

我有一個關於服務方面的問題。我不知道加里，你想拿走它，還是丹，你想拿走它。但如果我看一下7月的狀況，7月的服務收入就達到了6000萬美元。然後是十月份，你們一直說今年的成長率大概會接近兩位數。所以這意味著 10 月的數字比你預想的要少了約 1.5 億美元。所以，這相當於在6個月內花了2億美元。所以這大約佔整個 AGS 業務部門收入的 10%。

But I think you had also said previously that the spares and service portion of AGS is like half of the revenue. So really, it's like 20% of the spares and service portion. So I get the memory production cuts, but that's a huge number for a business, but I think people consider it to be quite stable. And I think your peers are sort of seeing a little bit better trend there. So I'm wondering if you can talk about that.

但我記得你之前也說過，AGS的備件和服務部分佔了收入的一半左右。所以實際上，它只佔備件和服務部分的 20%。我理解記憶體產量會減少，但這對於一家企業來說是一個很大的數字，但我認為人們認為它相當穩定。我認為你的同行似乎看到了稍微好一點的趨勢。所以我想知道您是否可以談談這件事。

Tim, let me share with you a little bit of my views about the business and hopefully, it gives some color and perspective. If we take a look at our services business, this is a business that the team has really tuned the strategy. We've got a great strategy. Strong execution over the last, call it, 4 years. It's a business we've grown at a compound rate of about 15%. Last year, we grew it at over 20%. This year, expectation coming into the year was high-single digits. As we look at underlying components of the business, there's an element of the business that's long-term service agreements that's more subscription-like in its revenue. As we look at performance of that business in Q3 and Q4, it's profiling exactly like we thought. And so a mid-teens grower into Q3 and Q4.

提姆，讓我跟你分享我對這個行業的看法，希望這能帶給你一些啟發和視角。如果我們看一下我們的服務業務，就會發現團隊已經對這項業務的策略進行了非常精細的調整。我們有一個很棒的策略。過去四年（姑且這麼說吧）執行力強勁。這是一個我們以約 15% 的複合成長率成長的業務。去年，我們的成長率超過 20%。今年年初的預期是接近兩位數。當我們審視業務的基本組成部分時，會發現其中有一個業務要素是長期服務協議，其收入模式更類似於訂閱模式。當我們查看該業務在第三季和第四季的業績時，它的表現完全符合我們的預期。因此，該股在第三季和第四季呈現十幾季的成長動能。

When we look at the other part of the business, the other half of the business being more transactional, spares and service-related, that has a connection to industry utilization and factory outputs. Clearly, we saw a falloff in Q3 and Q4, as the memory industry has structurally brought down its factory output to work through the induced -- inventory correction. We initially thought this was going to be of flattish business for the year. It now looks like it's down low double digits for the year. The combination of the mid-teens grower and down low double digits gets you a low single-digit grower as an overall business, if we were to classify our business similar to others in the industry. In addition to growing low single-digits, added our 300-millimeter refurbs and upgrades to the business. This is an all-time record year for us, and it's something that's growing quite a bit stronger than the segment reported services business.

當我們審視業務的另一部分時，這部分業務更偏向交易、備件和服務，與產業利用率和工廠產量有關。顯然，我們在第三季和第四季看到了下滑，因為記憶體產業已經從結構上降低了工廠產量，以應對由此引發的庫存調整。我們最初認為今年的業務會比較平穩。現在看來，今年的降幅可能只有兩位數了。如果我們要將我們的業務與業內其他業務進行類似的分類，那麼十幾個百分點的成長和兩位數低端的成長結合起來，最終得到的是一個位數低端的成長。除了實現個位數低成長外，我們還為業務增加了 300 毫米翻新和升級服務。今年是我們有史以來業績最好的一年，而且它的成長速度比報告的業務部門成長速度要快得多。

So I wouldn't necessarily look at our absolute performance or relative performance and think that there's something deficient in the way the business is profiling. We think we've got a great business, the team is executing well. And as industry utilization recovers into next year, should provide a nice leg of growth to the business going forward.

因此，我不會僅根據我們的絕對業績或相對業績就認為公司在業績分析方面有缺陷。我們認為我們擁有一個很棒的企業，團隊執行得很好。隨著行業利用率在明年逐步恢復，應該會為公司未來的業務成長提供良好的動力。

Maybe just let me add a little bit color on the service business. As Dan talked about, certainly, there's been a reduction in wafer starts. And you also mentioned this in the question with memory customers, so that's impacting the spares parts business.

或許我可以稍微補充一下關於服務業的一些細節。正如丹所說，晶圓開工量確實有減少。您在與記憶體客戶討論的問題中也提到了這一點，因此這會影響備件業務。

But one thing that's been a major change in our strategy, starting in 2013, was to drive more subscription-type revenue with customers. And that's been very successful. If you go back to '13, we had net 0 adds in terms of -- and service contracts. Since then, that part of the business has been growing very, very fast, Dan talked about even in this year with WFE down a fair amount, that part of our business is still growing at a very high rate and that subscription revenue from longer-term agreements is now larger than our transactional spares and service business. And that's really because we continue to see strong pull from customers, accelerating R&D, accelerating fab ramps, optimizing yield output and cost in high-volume manufacturing.

但從 2013 年開始，我們的策略發生了一項重大變化，那就是透過客戶訂閱來推動更多的收入。而且效果非常顯著。如果回顧 2013 年，我們在－以及服務合約方面淨增加 0%。從那時起，這部分業務就發展得非常非常快。丹談到，即使在今年 WFE 業務大幅下滑的情況下，這部分業務仍然以非常高的速度增長，而且長期協議的訂閱收入現在已經超過了我們的交易備件和服務業務。這主要是因為我們持續看到來自客戶的強烈需求，加速研發，加速晶圓廠產能爬坡，優化大量生產的良率和成本。

We also have a very strong strategy in data analytics. We have over thousands of tools connected in customers' fabs. That's creating value for customers today and that creates a great opportunity for us to continue to drive that data-enabled strategy to create value for customers and also to drive growth for Applied.

我們在數據分析領域也擁有非常強大的策略。我們在客戶的工廠中連接了數千台設備。這為當今的客戶創造了價值，也為我們繼續推進數據驅動策略，為客戶創造價值，並推動 Applied 的成長創造了絕佳的機會。

Just one more data point, if you look at our spares and service business. And again, this is separating out upgrades, refurbishments and other things that are counted by some people, if you look at just our subscription revenue and our spare parts business, transactional business, that business has grown 27% over the last 2 years with wafer fab equipment being flat. So that shows that even in a case where wafer fab equipment is not growing, that service business is growing. So we're very optimistic that we're going to drive this business at a high rate going forward at Applied, and also create more value for our customers.

如果我們看一下我們的備件和服務業務，就會發現還有另一個數據點。再次強調，這裡已經將升級、翻新和其他一些人計入的項目排除在外。如果你只看我們的訂閱收入和備件業務、交易業務，那麼在過去兩年裡，該業務增長了 27%，而晶圓製造設備業務則保持平穩。這表明，即使在晶圓製造設備沒有成長的情況下，服務業務也在成長。因此，我們非常樂觀地認為，Applied公司未來的業務將會快速發展，並為我們的客戶創造更多價值。

Awesome, Gary. Just as follow up, there was a major memory maker in China running around Flash Memory Summit. They were talking about spending $10 billion on WFE between 2019 and '20. Very, very big numbers that I don't think anybody's modeling. Can you talk just more generally about China memory efforts and whether next year could be a pretty big year from the indigenous China guys?

太棒了，加里。作為後續報道，中國一家大型記憶體製造商也出席了快閃記憶體峰會。他們當時正在討論在 2019 年至 2020 年間在 WFE 上花費 100 億美元。數字非常非常大，我認為沒有人對此進行建模。您能否更籠統地談談中國的記憶建設工作，以及明年是否會是中國本土記憶建設工作取得重大進展的一年？

We're not really giving any color on 2020 right now. I think what I had said earlier on the call relative to '19 is that we see '19 relatively flat with '18. And I honestly, don't see a big hockey stick. I've said this in the past over the last few years also, haven't seen a big hockey stick. I think that the spending certainly in foundry logic is rational around IoT sensors, communications all of those kinds of devices. That's a little over 1/2 of the domestic spending this year. And certainly, we believe that there will be some incremental spending but we're not going to give any color on the call today relative to forecasting 2020 for China.

我們現在對2020年不做任何預測。我認為我之前在電話會議上提到的關於 2019 年的情況是，我們認為 2019 年與 2018 年相比相對平穩。說實話，我沒看到什麼大冰球桿。我過去幾年也說過類似的話，沒看過什麼大冰球桿。我認為，在物聯網感測器、通訊等各種設備的代工廠邏輯方面的支出肯定是合理的。這略高於今年國內支出的一半。當然，我們相信支出會有一些成長，但今天在電話會議上，我們不會透露任何關於預測中國2020年的具體資訊。

Our next question comes from Krish Sankar from Cowen and Company.

我們的下一個問題來自 Cowen and Company 的 Krish Sankar。

I have 2 of them. Dan, given that the semi business is stabilizing at these revenue levels, but the mix is shifting more towards foundry logic versus memory, I would have thought your gross margin performance had been better. Can you give us how to eliminate some of that and what's going on the gross margin side?

我有兩個。Dan，鑑於半導體業務的收入水平正在趨於穩定，但業務結構正在從記憶體轉向代工邏輯晶片，我認為你的毛利率表現會更好。您能告訴我們如何消除其中一些問題，以及毛利率方面的情況嗎？

And then as a follow-up, I'll ask it right away. You guys gave some color on FY '20 display revenues relative to 2019. Given the deal was almost 9 months late on visibility, how should we think of FY '20 just relative to FY '18, where you did about $2.5 billion?

然後，我會立即追問。你們詳細介紹了 2020 財年顯示器收入相對於 2019 年的情況。鑑於該交易的可見性比預期晚了近 9 個月，我們該如何看待 2020 財年與 2018 財年（當時你們的業績約為 25 億美元）的對比呢？

Thanks, Krish. Let's take them in order. First, on the gross margin and the foundry logic showing signs of strength. Let me start by saying this is a company that's laser-focused on driving gross margins up over time. And if we were talking about the business mix from maybe a few years ago, I think maybe we'd be seeing incrementally higher gross margins.

謝謝你，克里什。讓我們按順序來看一下。首先，毛利率和鑄造邏輯都顯示出強勁的跡象。首先我想說的是，這家公司始終專注於逐步提高毛利率。如果我們談論的是幾年前的業務組合，我認為我們可能會看到毛利率逐步提高。

But let me help you a little bit with some of the mix factors that we see going into gross margin, given who we are today. So as we take a look at our services in display business and growing it as a part of our portfolio, we know that those 2 businesses, and we've done a great job growing them, those 2 businesses have a gross margin that's lower than the corporate average. But we expect each of those businesses -- and we expect each of those businesses to be up as we look into 2020.

但鑑於我們目前的狀況，讓我來幫您分析一下影響毛利率的一些因素。因此，當我們審視我們在顯示器業務方面的服務，並將其作為我們業務組合的一部分進行發展時，我們知道，這兩個業務（我們在發展這兩個業務方面做得非常出色）的毛利率低於公司平均水平。但我們預期這些企業——而且我們預計這些企業在展望 2020 年時都會成長。

And then within our semi portfolio, our leadership businesses are doing really, really well, but the profile of our semi business is changing as we grow. And there's a couple of things I would point to.

在我們的半導體業務組合中，我們的主導業務表現非常出色，但隨著我們的發展，我們半導體業務的格局也在改變。有幾點我想指出。

First, our etch footprint. These are gross margins, products with gross margins that are not as high as maybe other parts of the portfolio, but we're doing a great job driving that business. We're expanding that business into new opportunities and beyond memory into foundry logic. And that certainly changes the profile of our business as we grow forward.

首先，我們的蝕刻圖案。這些是毛利率，這些產品的毛利率可能不如產品組合中的其他部分那麼高，但我們在推動這項業務方面做得非常出色。我們正在將這項業務拓展到新的領域，並從記憶體擴展到代工邏輯電路。隨著我們不斷發展壯大，這無疑會改變我們業務的格局。

Second thing I'd point to, and we talked about it on this call, is foundry logic spend diversifying. There was a time a decade ago when it was 90% on the leading-edge, and then it evolved to 80-20, 60-40%. And now for, the last 3 years, '17, '18 and '19, it's fully split 50-50 between leading-edge technologies and trailing node geometries. And where we compete in the trailing node geometries with differentiated equipment and our key enablers of some of the technologies and products that are being brought to market, that's super attractive business for us. But there's also opportunities in that market where we compete with 300-millimeter refurbs, 200-millimeter systems. And while those products offer really attractive operating margins and cash flow, the gross margins might be a little bit lower than we see in some of the other businesses we pursue.

第二點我想指出，我們在這次電話會議上也討論過，那就是代工廠邏輯支出多元化。十年前，它有 90% 的時間處於領先地位，然後逐漸演變為 80-20，60-40%。而最近三年（2017、2018 和 2019 年），尖端技術和落後節點幾何形狀完全是 50-50 平分秋色。我們在後節點幾何結構領域憑藉差異化的設備和一些正在推向市場的關鍵技術與產品競爭，這對我們來說是一項極具吸引力的業務。但在這個市場中也存在著機會，我們可以與 300 毫米翻新機和 200 毫米系統競爭。雖然這些產品提供了非常有吸引力的營業利潤率和現金流，但毛利率可能比我們追求的其他一些業務要低一些。

So we're going to continue to stay focused. We're going to continue to drive gross margin over time, particularly as we see the industry recover. We drive revenue higher from this point going forward. We do think we're going to be able to grow the semi business into next year, grow the AGS business into next year and the display business. So we're going to stay focused on execution, and we feel good about how the business is profiling.

所以我們會繼續保持專注。我們將繼續提高毛利率，尤其是在行業復甦的情況下。從現在開始，我們將努力提高收入。我們認為明年我們能夠發展半導體業務、AGS 業務和顯示器業務。因此，我們將繼續專注於執行，我們對業務發展前景感到滿意。

Yes, and then the second part of your question was on display. Could you repeat the question? I apologize, I lost...

是的，然後你問題的第二部分就呈現出來了。您能再說一次問題嗎？抱歉，我輸了…

Yes. I can do it. Basically, on display relative to 2020, what we said earlier is we think 2020 is going to be a little higher than 2019. I don't think we're going to give anything more specific at this point in time.

是的。我能做到。基本上，相對於 2020 年，正如我們之前所說，我們認為 2020 年的數值會比 2019 年略高一些。我認為目前我們不會透露更多細節。

Our next question comes from Vivek Arya with Bank of America Merrill Lynch.

下一個問題來自美國銀行美林證券的維韋克·阿亞。

I think, when you started the call, you mentioned that you're still not comfortable calling the bottom. And I'm curious, what in the environment is preventing you from doing that? Is it order visibility? Is the macro environment? And what do you see -- when do you think your memory customers will start to add incremental capacity?

我認為，你在通話開始時提到過，你仍然不敢斷言底部已經出現。我很好奇，是什麼環境因素阻止了你這麼做？這是訂單可見性問題嗎？這是宏觀環境嗎？那麼，您認為您的記憶體客戶何時會開始增加記憶體容量？

Vivek, I think I'll come back to the comments we made a little earlier that in an environment defined by what we see today, we do think it's an elevated risk profile around some macro environment -- around the macro environment as well as geopolitical. I just think it's prudent in an environment that's characterized like the one we're in to set expectations in a modest way. We have conversations with customers. If I would give a direct read through on those conversations, I think you would see expectations set at a different level. But again, and come back to environment like this, I just don't think that's a prudent place to be.

維韋克，我想回到我們之前提到的評論，即在今天我們所看到的這種環境下，我們認為宏觀環境以及地緣政治方面的風險狀況有所上升。我認為，在像我們目前所處的這種環境下，謹慎的做法是設定適度的期望。我們會與客戶對話。如果我直接解讀這些對話，我想你會發現人們的期望設定在了不同的層次。但話說回來，回到這樣的環境，我覺得待在這裡不明智。

So we want to set expectations in a more modest way. We're setting expectations for gradual and U-shaped off these levels. Certainly, if the industry recovers faster than where we're setting the expectations given our broad portfolio and how we're positioned in all of the markets, this is a company that's going to benefit in a very material way if that happens. So we feel good about the position, we feel good about finding stability in the business and we do think it's just a matter of when, not if. And we'll be ready to take advantage of those opportunities when they materialize.

所以我們希望以更務實的方式設定期望。我們預計價格將從這些水準逐步回落，並呈現U型走勢。當然，如果行業復甦速度超過我們基於自身廣泛的產品組合以及在所有市場中的定位所設定的預期，那麼如果這種情況發生，這家公司將會從中受益匪淺。所以我們對目前的狀況感到滿意，對在業務中找到穩定性感到滿意，我們認為這只是時間問題，而不是會不會發生的問題。我們將做好準備，在機會出現時抓住它們。

Okay. And as a quick follow-up. On the market share side, I know last year, you guys were down 2 point -- but you're starting to recover that in recent quarters. Heading into 2020, which areas do you think AMAT is best positioned to gain share? And what will be the impact of EUV in that share progression and how is that impacted?

好的。作為後續補充。就市場佔有率而言，我知道去年你們的市佔率下降了 2 個百分點——但最近幾個季度你們已經開始回升了。展望2020年，您認為AMAT在哪些領域最有希望獲得市場佔有率？EUV技術將對市場佔有率的成長產生什麼影響？這種影響又是怎樣的呢？

So if you look at EUV, we still see Applied growing in patterning and we also see a growth in overall WFE, even as EUV finds areas of adoption. As we've communicated before, last year, EUV was a headwind.

所以，如果你觀察 EUV 技術，我們仍然可以看到 Applied 在圖案化方面不斷成長，而且我們也看到整體 WFE 不斷成長，即使 EUV 技術也在尋找新的應用領域。正如我們之前溝通過的那樣，去年 EUV 技術對我們來說是一個不利因素。

As we look forward, you have to look at different segments. EUV has a very small impact on memory. When memory recovers, that's going to be very positive for Applied relative to the TAM opportunity. Memory is really about materials enabled scaling, and we have gained share in memory, very deep engagements with our customers and good opportunities to continue to drive share gains.

展望未來，我們需要專注於不同的細分領域。EUV光刻技術對記憶體的影響非常小。當記憶恢復時，對於應用科技來說，相對於其TAM市場而言，這將是一個非常積極的信號。記憶體的真正意義在於材料實現規模化，我們在記憶體領域獲得了市場份額，與客戶建立了非常深入的聯繫，並且有很好的機會繼續推動市場份額的成長。

In NAND, we have a great opportunity to enable 3D scaling. I talked about new hardmasks. Our etch position continues to grow. And DRAM, they're adding metal gate in the periphery, and this is where we have high share as those processes are adopted. I talked earlier about IoT communications, sensors. That's an area where I talked about we won 2/3 of the TAM opportunity here recently with a customer, and that's about 50% of the foundry logic spending. So we have momentum in all of these different areas.

在 NAND 快閃記憶體領域，我們擁有實現 3D 縮放的絕佳機會。我談到了新型硬面罩。我們的蝕刻業務地位持續成長。而 DRAM，他們在外圍添加了金屬閘極，隨著這些製程的採用，我們在這方面擁有很高的市場份額。我之前談到了物聯網通訊和感測器。我之前提到過，我們最近從一位客戶那裡贏得了該地區 2/3 的 TAM 市場機會，這大約佔代工邏輯支出的 50%。因此，我們在所有這些不同領域都取得了進展。

And then other thing I would say is that we've talked about this new playbook. New architectures, new materials, new structures, new ways to connect things together and new ways to shrink. We really have new technologies and new products in many of those different areas. And so I've given color today on the call about many of those different opportunities, and that's also why we're investing more going forward. We have a very strong point of view.

另外，我想說的是，我們已經討論過這套新的策略。新的建築風格、新的材料、新的結構、新的連接方式以及新的縮小尺寸的方法。我們在許多不同領域確實擁有新技術和新產品。因此，今天我在電話會議上詳細介紹了許多不同的機遇，這也是我們未來加大投資的原因。我們有非常堅定的觀點。

The market, driven by AI, big data is going to be strong in the future. We believe that the new playbook, with new structures, new materials, new ways to connect devices, all of those areas are areas where Applied has unique technologies, unique capabilities. We have products that, some of which are already seeing adoption with customers where we have traction, we're going to invest in those areas. And my main focus as CEO is to make sure we're in the right position when those markets grow in the future.

受人工智慧和大數據驅動，市場未來將保持強勁勢頭。我們相信，新的策略，包括新的結構、新的材料、新的設備連接方式，所有這些領域都是應用材料擁有獨特技術和獨特能力的領域。我們有一些產品，其中一些產品已經在客戶中獲得了認可，我們將繼續投資這些領域。作為首席執行官，我的主要目標是確保我們在未來這些市場成長時處於正確的位置。

And we're getting close to the end of our scheduled time. So Dan, would you like to help us close the call?

我們的預定時間快要結束了。丹，你願意幫我們結束這通通話嗎？

Thanks, Mike. Sure. Let me just share a couple of quick comments to end the call.

謝謝你，麥克。當然。通話結束前，我只想簡單說幾點。

First, I'm encouraged. I'm encouraged by the stability we're seeing in our business. I'm encouraged by the positive leading indicators that we're seeing in memory. But I'm still not ready to call the bottom, especially given the macro risks that we need to keep an eye on.

首先，我感到很受鼓舞。我對我們業務目前的穩定性感到鼓舞。我對目前在記憶領域看到的正向領先指標感到鼓舞。但我仍然不敢斷言市場已經觸底，尤其考慮到我們需要密切關注的宏觀風險。

At the same time, we've been in this industry a very long time, and long enough to know that something new and big is happening in computing, and it's happening just as Moore's Law is slowing down. So we see growth coming, and we believe Applied is in a special position to help this industry. So we're going to invest, we're going to create value and grow this company and outperform the market.

同時，我們在這個行業已經待了很長時間，足以讓我們知道電腦領域正在發生一些新的、重大的事情，而這一切恰好發生在摩爾定律放緩之際。因此，我們看到了成長的趨勢，我們相信應用材料公司處於一個特殊的地位，可以幫助這個產業發展。所以我們將進行投資，我們將創造價值，發展壯大這家公司，並超越市場表現。

And finally, we're going to stay close to investors, Gary and I, we're going to be hosting some meetings here in Santa Clara throughout the quarter. And I, personally, look forward to seeing many of you in the beginning of September in New York at the city conference.

最後，我和加里將繼續與投資者保持密切聯繫，我們將在本季在聖克拉拉舉辦一些會議。我個人非常期待在九月初於紐約舉行的城市會議上見到你們中的許多人。

So Mike, let's go ahead and close the call.

麥克，那我們結束通話吧。

Great. Thanks, Dan. And we like to thank everybody for joining us today. A replay of this call will be available on our website by 5:00 Pacific Time, and we would like to thank you for continued interest in Applied Materials.

偉大的。謝謝你，丹。我們衷心感謝今天所有到場的各位。本次電話會議的錄音將於太平洋時間下午 5:00 在我們的網站上提供，感謝您一直以來對應用材料公司的關注。

Ladies and gentlemen, thank you for participating in today's conference. This concludes the program. You may all disconnect. Everyone, have a great day.

女士們、先生們，感謝各位參加今天的會議。節目到此結束。你們可以斷開連結了。祝大家今天過得愉快。