應用材料 (AMAT) 2023 Q2 法說會逐字稿

Welcome to the Applied Materials Earnings Conference Call. (Operator Instructions) I would now like to turn the conference over to Michael Sullivan, Corporate Vice President. Please go ahead, sir.

歡迎參加應用材料公司的收益電話會議。 （操作員說明）我現在想將會議轉交給公司副總裁 Michael Sullivan。請繼續，先生。

Good afternoon, everyone, and thank you for joining Applied's Second Quarter of Fiscal 2023 Earnings Call. Joining me are Gary Dickerson, our President and CEO; and Brice Hill, our Chief Financial Officer.

大家下午好，感謝您參加應用材料公司 2023 財年第二季度的收益電話會議。加入我的是我們的總裁兼首席執行官加里·迪克森 (Gary Dickerson)；和我們的首席財務官 Brice Hill。

Before we begin, I'd 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 filing with the SEC. Today's call also includes non-GAAP financial measures. Reconciliations to GAAP measures are found in today's earnings press release and in our quarterly earnings materials, which are available on the IR page of our website at appliedmaterials.com.

在我們開始之前，我想提醒您，今天的電話會議包含前瞻性陳述，這些陳述受風險和不確定因素的影響，可能導致我們的實際結果有所不同。有關風險和不確定性的信息包含在 Applied 最近向美國證券交易委員會提交的 10-Q 表格中。今天的電話會議還包括非 GAAP 財務指標。在今天的收益新聞稿和我們的季度收益材料中可以找到與 GAAP 措施的調節，這些材料可在我們網站 appliedmaterials.com 的 IR 頁面上找到。

Before we begin, I have a calendar announcement. On July 11, Applied plans to host the Semicon West Technology Breakfast from 7:30 to 9:00 a.m. Pacific Time. We plan to announce a major new platform and lead a heterogeneous integration panel, featuring executives from AMD, Intel and Qualcomm, along with Besi and the EV Group. You can register by visiting the Events page of our IR website. There won't be a webcast, so we hope you'll join us in San Francisco. And with that introduction, I'd like to turn the call over to Gary Dickerson.

在我們開始之前，我有一個日曆公告。 Applied 計劃於 7 月 11 日太平洋時間上午 7:30 至 9:00 舉辦 Semicon West 技術早餐會。我們計劃宣布一個主要的新平台並領導一個異構集成小組，成員包括來自 AMD、英特爾和高通的高管，以及 Besi 和 EV Group。您可以通過訪問我們 IR 網站的活動頁面進行註冊。不會有網絡廣播，所以我們希望您能在舊金山加入我們。有了這個介紹，我想把電話轉給加里迪克森。

Thank you, Mike. Applied Materials delivered strong results in our second fiscal quarter with revenues in the high end of our guidance range. Across the business, our teams are executing well, successfully managing a dynamic near-term environment, making progress with our longer-term strategic initiatives and introducing enabling new products and solutions for our customers.

謝謝你，邁克。應用材料公司在我們的第二財季取得了強勁的業績，收入處於我們指導範圍的高端。在整個業務中，我們的團隊執行良好，成功地管理了動態的近期環境，在我們的長期戰略計劃方面取得了進展，並為我們的客戶推出了新產品和解決方案。

Despite macro headwinds, our outlook remains favorable, and we expect to outperform our markets in 2023, thanks to our balanced market exposure, our strong position at key technology inflections, which is driving demand for our differentiated products, especially in metal deposition, CVD, etch, implant, thermal processing and e-beam and our growing service business, which is increasingly subscription-based. In my prepared remarks today, I'll cover our perspective on the market, both the near-term dynamics and our longer-term secular growth thesis, how Applied is positioned to outgrow the industry this year and over the longer term and finally, the investments we are making to create more value for our customers and productively scale the company.

儘管存在宏觀逆風，但我們的前景仍然看好，我們預計 2023 年的表現將優於我們的市場，這要歸功於我們均衡的市場敞口、我們在關鍵技術轉變方面的強勢地位，這推動了對我們差異化產品的需求，尤其是在金屬沉積、CVD、蝕刻、植入、熱處理和電子束以及我們不斷增長的服務業務，該業務越來越基於訂閱。在我今天準備好的發言中，我將介紹我們對市場的看法，包括近期動態和我們的長期長期增長論點，應用材料公司如何在今年和長期內超越該行業，最後，我們正在進行的投資是為了為我們的客戶創造更多價值並有效地擴大公司規模。

In 2023, challenging and evolving macro conditions are impacting the semiconductor industry, both negatively and positively. Demand that is directly driven by consumer electronics is clearly weak, while demand driven by inflections in technology and strategic regional supply chain investments remains robust. This contrast can be seen in our customers' investment levels. Weakness in PCs and smartphones is a key factor for memory customers who have significantly reduced their investments in 2023. Measured as a percentage of total wafer fab equipment, memory spending is tracking at its lowest level in more than a decade. In leading-edge foundry logic, we also have seen customers trimming their spending plans for the year. We see these changes as timing adjustments as these companies remain fully committed to their long-term road maps to win the race for technology leadership in this market. Push-outs in leading-edge investments are being offset by increased strength from customers who serve the IoT, communications, automotive, power and sensors markets.

2023 年，充滿挑戰和不斷變化的宏觀環境正在對半導體行業產生負面和正面影響。由消費電子產品直接驅動的需求明顯疲軟，而由技術變化和戰略性區域供應鏈投資驅動的需求依然強勁。這種對比可以從我們客戶的投資水平上看出。個人電腦和智能手機的疲軟是內存客戶在 2023 年大幅減少投資的一個關鍵因素。以佔晶圓廠總設備的百分比衡量，內存支出正處於十多年來的最低水平。在前沿代工邏輯中，我們也看到客戶削減了他們今年的支出計劃。我們將這些變化視為時間調整，因為這些公司仍然完全致力於其長期路線圖，以贏得該市場的技術領先地位。服務於物聯網、通信、汽車、電力和傳感器市場的客戶的實力增強抵消了前沿投資的推出。

Over the past quarter, we revised our 2023 ICAPS forecast upwards with demand being driven by 2 interconnected factors. First, ICAPS customers are delivering critically enabling technology for large global inflections that will play out over the next decade. These include clean energy, electric vehicles and industrial automation. These inflections are driving significant innovation. At Applied, we have released more than 20 major new ICAPS products since we formed our ICAPS group 4 years ago.

在上個季度，我們上調了 2023 年 ICAPS 預測，需求受到兩個相互關聯的因素的驅動。首先，ICAPS 客戶正在為將在未來十年發揮作用的大規模全球變化提供關鍵支持技術。其中包括清潔能源、電動汽車和工業自動化。這些變化正在推動重大創新。在 Applied，自 4 年前我們成立 ICAPS 小組以來，我們已經發布了 20 多種主要的新 ICAPS 產品。

Second, there is a clear trend towards regionalization of supply chains as countries seek to build resilient local capacity to support industry verticals that are central to their economies. We currently see around $400 billion of government incentives being deployed globally over the next 5 years, a significant portion of which will be directed towards ICAPS markets. While China currently leads in ICAPS spending, we see other countries increasing their investments at a higher rate. In fact, the fastest-growing regions for our ICAPS business in 2023 are the U.S., Europe and Japan.

其次，隨著各國尋求建立有彈性的本地能力以支持對其經濟至關重要的垂直行業，供應鏈區域化的趨勢很明顯。我們目前看到，未來 5 年全球將部署約 4000 億美元的政府激勵措施，其中很大一部分將用於 ICAPS 市場。雖然中國目前在 ICAPS 支出方面處於領先地位，但我們看到其他國家的投資增長速度更快。事實上，2023 年我們 ICAPS 業務增長最快的地區是美國、歐洲和日本。

Looking beyond 2023, our long-term growth thesis for the industry remains unchanged. Semiconductors are the foundation of the digital economy, which is driving demand and puts the industry on a path to become a $1 trillion market by the end of the decade. At the same time, chip technology complexity is increasing significantly as traditional 2D scaling slows and the industry transitions to a new PPACt playbook to drive improved performance, power, area cost and time to market. Increasing complexity means that wafer fab equipment can grow at a higher rate than semiconductor revenues. And then within equipment spending, major technology inflections are increasingly enabled by materials engineering, expanding the available market for Applied Materials.

展望 2023 年以後，我們對該行業的長期增長論點保持不變。半導體是數字經濟的基礎，它正在推動需求，並使該行業有望在本十年末成為一個價值 1 萬億美元的市場。與此同時，隨著傳統 2D 縮放速度放緩以及行業向新的 PPACt 劇本過渡以推動改進的性能、功耗、面積成本和上市時間，芯片技術的複雜性正在顯著增加。複雜性的增加意味著晶圓廠設備的增長速度可能高於半導體收入的增長速度。然後在設備支出中，材料工程越來越多地推動重大技術變革，從而擴大了應用材料公司的可用市場。

I'll highlight a few examples of how major materials engineering inflections contribute to our growth. First, gate-all-around transistors are a great example of a new 3D device structure that is enabled by materials engineering in areas where Applied has leadership products, including epi and selective removal. In addition, we've developed differentiated conductor etch solutions specifically for gate-all-around applications. We expect shipments of our gate all-around products to begin ramping in 2024, as leading customers move into high-volume production. For Applied, this inflection creates an incremental opportunity of around $1 billion for every 100,000 wafer starts of capacity. And we expect to gain 5 points of transistor market share in the overall transition from FinFET to gate-all-around.

我將重點介紹幾個主要材料工程變化如何促進我們發展的例子。首先，環柵晶體管是新 3D 器件結構的一個很好的例子，它通過材料工程在 Applied 擁有領先產品的領域實現，包括外延和選擇性去除。此外，我們還專門為環柵應用開發了差異化的導體蝕刻解決方案。隨著領先客戶進入大批量生產，我們預計我們的全能門產品的出貨量將在 2024 年開始增加。對於應用材料公司而言，這種變化為每 100,000 個晶圓啟動產能創造了約 10 億美元的增量機會。我們預計在從 FinFET 到 gate-all-around 的整體過渡中獲得 5 個百分點的晶體管市場份額。

Second, in wiring, we're seeing significant innovation in new materials, adoption of new low-resistance metals for contact and interconnect enabled us to grow our PVD revenues at 3x the rate of wafer fab equipment in 2022. High-speed data connectivity remains a key focus for all our customers, fueling further growth at future nodes.

其次，在佈線方面，我們看到了新材料的重大創新，接觸和互連採用新的低電阻金屬使我們的 PVD 收入在 2022 年以晶圓廠設備速度的 3 倍增長。高速數據連接仍然存在我們所有客戶的一個重點，推動未來節點的進一步增長。

Third, Applied Technology is providing our customers with new tools to drive their scaling road map. Recently, we launched Sculpta, a breakthrough pattern-shaping technology, which provides a simpler, faster and more cost-effective alternative to EUV double patterning. It decreases customers' capital cost by about $250 million for each layer of adoption per 100,000 wafer starts. We are already shipping repeat systems and expect this business to grow to multiple hundreds of millions of dollars of annual revenue in the next several years. The final example is Advanced Packaging. While we are still in the early phases of industry adoption, this inflection is already a great growth area for us. Our packaging revenue has doubled in the past 3 years to over $1 billion. We have strong leadership positions in key enabling technologies, including through-silicon via, microbumping and hybrid bonding. We believe we can double revenues again in the next few years with further adoption of 3D multi-die packaging.

第三，Applied Technology 正在為我們的客戶提供新工具來推動他們的擴展路線圖。最近，我們推出了 Sculpta，這是一項突破性的圖案成形技術，它為 EUV 雙圖案成形提供了一種更簡單、更快速且更具成本效益的替代方案。對於每 100,000 個晶圓啟動的每一層採用，它可以將客戶的資本成本降低約 2.5 億美元。我們已經在運送重複系統，並期望這項業務在未來幾年內增長到數億美元的年收入。最後一個例子是先進封裝。雖然我們仍處於行業採用的早期階段，但這種轉變對我們來說已經是一個巨大的增長領域。我們的包裝收入在過去 3 年翻了一番，超過 10 億美元。我們在關鍵支持技術方面擁有強大的領導地位，包括矽通孔、微凸塊和混合鍵合。我們相信，隨著 3D 多管芯封裝的進一步採用，我們可以在未來幾年內將收入再次翻一番。

The increasingly complex solutions our customers are deploying to move from one technology node to the next are also a key growth driver for our service business. Customers are seeing value in our solutions to support their R&D, rapidly transfer and ramp new technologies and drive device performance, yield, output and cost in high-volume manufacturing. Our service business is on track to grow in 2023, even with lower utilization rates in certain nodes and after absorbing the impact of U.S. Export Control Rules. More than 60% of our service revenue is generated from subscriptions in the form of long-term agreements.

我們的客戶正在部署越來越複雜的解決方案，以從一個技術節點轉移到下一個技術節點，這也是我們服務業務的主要增長動力。客戶在我們的解決方案中看到了價值，可以支持他們的研發、快速轉移和推廣新技術，並在大批量製造中提高設備性能、產量、產出和成本。我們的服務業務有望在 2023 年實現增長，即使某些節點的利用率較低並且在吸收了美國出口管制規則的影響之後也是如此。我們超過 60% 的服務收入來自長期協議形式的訂閱。

These agreements are growing at a faster rate than the installed base and have a high renewal rate of more than 90%. Given our confidence in the trajectory of the industry and Applied Materials, we are taking actions and making associated investments to support our growth, accelerate our customers' road maps and drive productivity and efficiency as the industry scales. On May 22, we will formally announce a major strategic investment in a new high-velocity innovation platform focused on next-generation equipment and process technologies. As innovation in the industry is increasingly driven by new materials, structures and devices, our goal is to change the way we collaborate with customers, universities, suppliers and other partners to bring new manufacturing technologies to market faster and optimize the overall economic returns.

這些協議的增長速度快於安裝基數，續約率高達 90% 以上。鑑於我們對行業和 Applied Materials 發展軌蹟的信心，我們正在採取行動並進行相關投資以支持我們的增長，加快客戶的路線圖並隨著行業規模的擴大而提高生產力和效率。 5 月 22 日，我們將正式宣布對專注於下一代設備和工藝技術的新型高速創新平台進行重大戰略投資。隨著新材料、結構和設備越來越多地推動行業創新，我們的目標是改變我們與客戶、大學、供應商和其他合作夥伴的合作方式，以更快地將新製造技術推向市場並優化整體經濟回報。

We look forward to sharing more details next week. Before I hand over to Brice, let me quickly summarize. While 2023 is a challenging year for the economy and areas of the semiconductor market, Applied's business performance remains resilient, thanks to our broad exposure to secular trends, strong product positions at key technology inflections and our growing service business. Our longer-term outlook is very positive as semiconductors become a larger and more strategically important market globally, and industry trends create outsized opportunities for Applied. To position ourselves for the opportunities ahead, we are making strategic investments in R&D and infrastructure, while driving improvements in productivity and speed across the organization. Now Brice, it's over to you.

我們期待下週分享更多細節。在我交給 Brice 之前，讓我快速總結一下。雖然 2023 年對經濟和半導體市場領域來說是充滿挑戰的一年，但應用材料公司的業務表現仍然保持彈性，這要歸功於我們對長期趨勢的廣泛接觸、在關鍵技術轉變方面的強大產品地位以及我們不斷增長的服務業務。我們的長期前景非常樂觀，因為半導體在全球範圍內成為一個更大、更具戰略重要性的市場，而且行業趨勢為 Applied 創造了巨大的機會。為了迎接未來的機遇，我們正在對研發和基礎設施進行戰略投資，同時推動提高整個組織的生產力和速度。現在，Brice，輪到你了。

Thank you, Gary. On today's call, I'll summarize our Q2 results, provide our guidance for Q3 and discuss the investment we're making in our R&D infrastructure. Before covering the near term, I'd like to remind you of 4 key points. First, the semiconductor industry is on track for secular growth with expectations of a $1 trillion market by 2030; second, materials engineering is increasingly critical to our customers' roadmaps; third, Applied's broad and differentiated portfolio, market diversity and growing services business make us more resilient today than in the past and set us up to outperform our markets; and fourth, we have an efficient business model that generates strong profitability and free cash flow, which enables us to invest in growth and provide attractive shareholder returns.

謝謝你，加里。在今天的電話會議上，我將總結我們第二季度的結果，為第三季度提供指導，並討論我們在研發基礎設施方面的投資。在介紹近期之前，我想提醒您 4 個要點。首先，半導體行業有望實現長期增長，預計到 2030 年市場規模將達到 1 萬億美元；其次，材料工程對我們客戶的路線圖越來越重要；第三，Applied 廣泛而差異化的產品組合、市場多元化和不斷增長的服務業務使我們今天比過去更具彈性，並使我們能夠跑贏市場；第四，我們擁有高效的商業模式，可產生強勁的盈利能力和自由現金流，這使我們能夠投資於增長並提供有吸引力的股東回報。

In fact, in March, we (inaudible) our confidence in the long-term growth of the semiconductor market and in our ability to deliver the new materials and manufacturing innovations required to drive the industry. The Board of Directors approved a 23% dividend per share increase, which is the largest increase in 5 years and supplemented our share buyback program with a new $10 billion repurchase authorization. We believe our free cash flow can continue to grow and support increasing the dividend at an accelerated rate over the next several years, which would double our previous dividend per share.

事實上，在 3 月份，我們（聽不清）對半導體市場的長期增長以及我們提供推動行業發展所需的新材料和製造創新的能力充滿信心。董事會批准每股股息增加 23%，這是 5 年來的最大增幅，並通過新的 100 億美元回購授權補充了我們的股票回購計劃。我們相信我們的自由現金流可以繼續增長，並支持在未來幾年內以更快的速度增加股息，這將使我們之前的每股股息翻一番。

As our services business grows along with our installed base of equipment, it alone produces more than enough operating profit to pay the company's dividend.

隨著我們的服務業務隨著我們的設備安裝基礎的增長而增長，單是它產生的營業利潤就足以支付公司的股息。

Moving now to Q2 business highlights. Our team did a great job navigating supply and schedule challenges during the quarter, enabling us to grow revenue and earnings per share on a year-over-year basis. We mitigated most of the supplier cybersecurity situation we described last quarter, and this helped us deliver higher-than-expected revenue in both semi systems and AGS. Most of our businesses caught up to demand and our lead times and inventory levels declined. Growth in our ICAPS business helped to offset year-over-year declines in memory as it did in Q1. And our services business generated record revenue, growing year-over-year and offsetting headwinds created by the trade rules announced last October.

現在轉到第二季度的業務亮點。我們的團隊在本季度應對供應和進度挑戰方面做得很好，使我們的收入和每股收益同比增長。我們緩解了上個季度描述的大部分供應商網絡安全狀況，這幫助我們在半系統和 AGS 方面實現了高於預期的收入。我們的大部分業務都滿足了需求，我們的交貨時間和庫存水平下降了。與第一季度一樣，我們的 ICAPS 業務的增長幫助抵消了內存的同比下降。我們的服務業務創造了創紀錄的收入，同比增長並抵消了去年 10 月宣布的貿易規則帶來的不利影響。

Now I'll summarize our Q2 financial results. Company revenue in Q2 was $6.63 billion, up 6% year-over-year, and non-GAAP EPS was $2, up 8% year-over-year. These results were in the upper end of our guidance range and only slightly below last quarter's near-record results. Non-GAAP gross margin was flat sequentially at 46.8%, remaining resilient as we offset headwinds related to trade restrictions, inflation, supply chain and logistics. Non-GAAP OpEx rose slightly quarter-over-quarter to $1.17 billion.

現在我將總結我們第二季度的財務業績。公司第二季度收入為 66.3 億美元，同比增長 6%，非 GAAP 每股收益為 2 美元，同比增長 8%。這些結果處於我們指導範圍的上限，僅略低於上一季度接近創紀錄的結果。非 GAAP 毛利率環比持平，為 46.8%，由於我們抵消了與貿易限制、通脹、供應鍊和物流相關的不利因素，因此保持彈性。非 GAAP 運營支出環比小幅上升至 11.7 億美元。

Turning to the segments. Semi Systems revenue grew 12% year-over-year to $4.98 billion. Segment non-GAAP operating margin was 35.6%. AGS revenue grew 3% year-over-year to nearly $1.43 billion. In fact, this was AGS' 15th consecutive quarter of year-over-year growth. Segment non-GAAP operating margin increased sequentially to 29%. In display, revenue was approximately flat sequentially at $168 million, and segment non-GAAP operating margin increased sequentially to 12.5%. Turning to cash flows. We generated $2.3 billion in operating cash flow during the quarter, which is nearly 35% of revenue. We produced over $2 billion in free cash flow, which is nearly 31% of revenue, which demonstrates the efficiency of our business model. Shareholder returns in the quarter were over $1 billion, including $219 million in dividends and $800 million in share buybacks. Now I'll share our guidance for Q3. We expect company revenue to be $6.15 billion, plus or minus $400 million. We expect non-GAAP EPS of $1.74 plus or minus $0.18.

轉向細分市場。 Semi Systems 收入同比增長 12% 至 49.8 億美元。部門非 GAAP 營業利潤率為 35.6%。 AGS 收入同比增長 3% 至近 14.3 億美元。事實上，這是 AGS 連續第 15 個季度實現同比增長。該部門的非 GAAP 營業利潤率環比增長至 29%。在展示中，收入環比基本持平，為 1.68 億美元，部門非 GAAP 營業利潤率環比增長至 12.5%。轉向現金流。本季度我們產生了 23 億美元的運營現金流，幾乎佔收入的 35%。我們產生了超過 20 億美元的自由現金流，佔收入的近 31%，這證明了我們商業模式的效率。本季度的股東回報超過 10 億美元，其中包括 2.19 億美元的股息和 8 億美元的股票回購。現在我將分享我們對第三季度的指導。我們預計公司收入為 61.5 億美元，上下浮動 4 億美元。我們預計非 GAAP 每股收益為 1.74 美元上下浮動 0.18 美元。

Within this guidance, we expect semi systems revenue to be around $4.5 billion, which is down nearly 5% year-over-year. We expect AGS revenue to be about $1.43 billion, which is up 1% year-over-year Display revenue should be around $170 million. We expect Applied's non-GAAP gross margin to be about 46.3%. And we expect non-GAAP operating expenses to be approximately flat sequentially at $1.17 billion. We are modeling a tax rate of 12.3%.

在此指導下，我們預計半導體系統收入約為 45 億美元，同比下降近 5%。我們預計 AGS 收入約為 14.3 億美元，同比增長 1% 顯示收入應約為 1.7 億美元。我們預計 Applied 的非 GAAP 毛利率約為 46.3%。我們預計非 GAAP 運營費用將大致持平，為 11.7 億美元。我們正在模擬 12.3% 的稅率。

Finally, I'll comment on the new innovation platform Gary discussed in his remarks. We're planning to make a multibillion dollar investment in new infrastructure over the next several years, to significantly expand our capacity to collaborate more closely and productively with our customers as we develop next-generation materials, process technologies and equipment. We'll provide more details about the amount and timing next week. What I'd like you to note today is that the investment is consistent with our company's existing long-term strategic plans. Also, the scale will depend on our ability to secure government support. While we expect our capital expenditures to be higher over the next several years, there is no change to our longer-term financial model and our strong commitment to shareholder returns.

最後，我將評論 Gary 在他的發言中討論的新創新平台。我們計劃在未來幾年內對新基礎設施進行數十億美元的投資，以顯著提高我們的能力，以便在我們開發下一代材料、工藝技術和設備時與客戶進行更緊密、更高效的合作。我們將在下週提供有關金額和時間的更多詳細信息。今天我想請大家注意的是，這項投資符合我們公司現有的長期戰略計劃。此外，規模將取決於我們獲得政府支持的能力。雖然我們預計未來幾年我們的資本支出會更高，但我們的長期財務模式和我們對股東回報的堅定承諾沒有改變。

In summary, Applied Materials is executing well and demonstrating the advantages of our broad and diverse portfolio, markets and customer base. This year demonstrates how our business has become less volatile and more resilient. We are growing year-over-year in semiconductor systems and services and generating healthy profitability. We are in a great position to invest for technology leadership and growth, generate strong free cash flow and increase shareholder returns. Mike, please begin the Q&A.

總而言之，應用材料公司表現良好，展示了我們廣泛而多樣化的產品組合、市場和客戶群的優勢。今年展示了我們的業務如何變得不那麼不穩定且更具彈性。我們在半導體系統和服務方面逐年增長，並產生了可觀的盈利能力。我們處於投資於技術領導地位和增長、產生強大的自由現金流和增加股東回報的有利位置。邁克，請開始問答。

Thanks, Brice. To help us reach as many people as we can, please ask just one question on today's call. If you have another question, please requeue and we'll do our best to come back to you later in the session. Operator, let's please begin.

謝謝，布萊斯。為了幫助我們接觸到盡可能多的人，請在今天的電話會議上只問一個問題。如果您有其他問題，請重新排隊，我們將盡最大努力在會議後期回复您。接線員，讓我們開始吧。

(Operator Instructions) Our first question comes from the line of C.J. Muse from Evercore ISI.

（操作員說明）我們的第一個問題來自 Evercore ISI 的 C.J. Muse。

Yes. So I was hoping you could speak to the sustainability of spending for (inaudible) in China. There are many players that I think we're all aware of, like SMIC (inaudible), et cetera. But it sure sounds like there are 20, 30 emerging new players that are in their first 3 rounds of DC funding. And the question we get often is how sustainable is that spending beyond 2023? So I would love to hear the visibility that you have (inaudible) plans and how you're thinking about that spending beyond this year?

是的。所以我希望你能談談在中國（聽不清）支出的可持續性。我認為我們都知道有很多參與者，例如 SMIC（聽不清）等。但聽起來確實有 20、30 個新興參與者處於前 3 輪 DC 融資中。我們經常遇到的問題是，2023 年以後的支出有多可持續？所以我很想听聽您有（聽不清）計劃的可見性，以及您如何考慮今年以後的支出？

Great. C.J., thanks for the question. We've looked into this ourselves quite in-depth. We're very bullish and the customers are bullish about the end markets that are driving the investments that are being made in China. So specifically, we've looked at the equipment that we're selling. We've looked to see that it's being installed. We've looked to see that it's actually being ramped. And that's what we do see in China. So people have asked us about, is there preordering or stocking of equipment? We don't see that.

偉大的。 C.J.，謝謝你的提問。我們自己對此進行了非常深入的研究。我們非常看好，客戶也看好推動在中國進行投資的終端市場。具體來說，我們查看了我們銷售的設備。我們已經看到它正在安裝。我們已經看到它實際上正在增加。這就是我們在中國看到的。所以人們問我們，是否有設備預購或庫存？我們看不到這一點。

You're right that it's mostly ICAPS, and it's mostly focused on the end markets that we all know that are growing, the power markets, the video processors, the sensors and power -- those types of end markets. We also think about the government incentives in China. So a lot of -- there is a long tail of investors in China. They are being incentivized but they are ramping and installing the equipment, and we don't see any unused areas. Anything to add there, Gary?

你是對的，它主要是 ICAPS，它主要集中在我們都知道正在增長的終端市場，電力市場、視頻處理器、傳感器和電力——這些類型的終端市場。我們還考慮了中國政府的激勵措施。所以很多 - 中國有很多投資者。他們受到激勵，但他們正在爬坡和安裝設備，我們沒有看到任何未使用的區域。有什麼要補充的嗎，加里？

No. Thank you.

不，謝謝。

One moment for our next question. And our next question comes from the line of Stacy Rasgon from Bernstein Research.

稍等一下我們的下一個問題。我們的下一個問題來自 Bernstein Research 的 Stacy Rasgon。

I guess to follow up on that, I know you said that like the non-Chinese regions are growing faster, but is that because just they're smaller? Like how big -- how much like even qualitatively is China as a percentage of your total ICAPS revenue? And like how much is the China piece of it growing relative to those other regions that are growing faster?

我想跟進一下，我知道你說非中國地區增長得更快，但那是因為它們更小嗎？中國在 ICAPS 總收入中所佔的比例有多大——甚至在質量上有多相似？相對於其他增長較快的地區，中國的增長幅度有多大？

Yes. Thanks, Stacy. It is the largest country in the ICAPS space, but I think there are 3 other countries that are growing faster, and it's not because it's a law of small numbers. They're pretty significant. So if you think of North America, China, Europe, people will recognize a lot of the investments that are being made in the mature technologies in those spaces.

是的。謝謝，斯泰西。它是 ICAPS 空間中最大的國家，但我認為還有其他 3 個國家增長更快，這並不是因為它是小數定律。它們非常重要。因此，如果你想到北美、中國、歐洲，人們就會認識到在這些領域的成熟技術上進行的大量投資。

So China is not the fastest grower, but they're the largest country. And when we look across the world and we look at all those investments, there are government stimulus programs that help encourage the customers to make those investments, but we believe there's real demand behind that. When we look at utilization in the ICAPS space, we see utilization to be in a healthy range. So this looks like an ongoing trend. When we think forward, we had -- if we look back to '22, we had 40-plus percent growth rate in ICAPS. It's only accelerated this year. And our view from all the accounts is that it won't grow at the same rate. It won't accelerate at the same rate, but that demand is stable. We expect over the coming years that, that market will stay about the same size.

所以中國不是增長最快的國家，但他們是最大的國家。當我們放眼世界並審視所有這些投資時，會發現政府的刺激計劃有助於鼓勵客戶進行這些投資，但我們相信這背後有真正的需求。當我們查看 ICAPS 空間的利用率時，我們發現利用率處於健康範圍內。所以這看起來是一個持續的趨勢。當我們向前看時，我們有——如果我們回顧 22 年，我們的 ICAPS 增長率超過 40%。今年才加速。從所有賬戶來看，我們的觀點是它不會以同樣的速度增長。它不會以同樣的速度加速，但需求是穩定的。我們預計在未來幾年，該市場將保持大致相同的規模。

Yes. Stacy, this is Gary. Especially, I would say in the U.S. and Europe, when I talk to those CEOs and those companies, they're in a very strong position. And those investments that they're making will be sustainable over the next several years. And they are, as Brice said, meaningful.

是的。斯泰西，這是加里。特別是，我想說在美國和歐洲，當我與那些 CEO 和那些公司交談時，他們處於非常有利的地位。他們所做的這些投資將在未來幾年內持續下去。正如布賴斯所說，它們是有意義的。

One moment for our next question. And our next question comes from the line of Vivek Arya from Bank of America.

稍等一下我們的下一個問題。我們的下一個問題來自美國銀行的 Vivek Arya。

Maybe kind of 2 very related ones. What's your backlog in semi systems? And where does it get to exiting the year? And then a number of your peers have suggested that the second half of the calendar year, so essentially your Q4 and Q1 could be better than the first half. Is that similar to the trends Applied is seeing? Or what would create that difference between you and your peer group?

也許有兩個非常相關的。您在半系統中的積壓情況是什麼？它從哪裡退出這一年？然後你的一些同行建議下半年，所以基本上你的第四季度和第一季度可能會比上半年更好。這與 Applied 看到的趨勢相似嗎？或者什麼會造成你和你的同齡人之間的差異？

Okay. Thanks, Vivek. First of all, backlog, we still have an elevated backlog. What we've tried to talk about last quarter and this quarter is the dynamics under that. We have caught up in most of the business groups to the underserved demand that we had from the prior year. So that's a good thing. Our lead times are returning to more normal. Having said that, the backlog is still elevated. We think that's because many customers are placing orders over a longer period of time. They're planning longer in the future than they have in the past.

好的。謝謝，維維克。首先，積壓，我們的積壓仍然很高。我們在上個季度和本季度試圖談論的是其下的動態。我們已經趕上了大多數業務部門，以滿足我們從前一年開始的服務不足的需求。所以這是一件好事。我們的交貨時間正在恢復正常。話雖如此，積壓仍然很高。我們認為這是因為許多客戶下訂單的時間更長。他們對未來的規劃比過去更長。

So we -- when you see our backlog published at the end of the year, it will probably still be at an elevated level. On the second half, we're not guiding the second half, but the story for Applied has been that the ICAPS business has grown so much this year that it's offset weakness in the memory market and any slowness that we've seen in the leading logic market, and we expect that dynamic to continue. You can see in the next quarter that we don't have growth in the next quarter. But overall, we expect that dynamic that we've seen for the business to continue in future quarters. So we can't call that second half or even '24 yet because the large markets of memory and leading logic are pretty exposed to macros and pretty exposed to consumer end markets. We'll just have to see how that looks for Q4 and for next year.

所以我們——當你看到我們在年底發布的積壓工作時，它可能仍處於較高水平。下半年，我們不會指導下半年，但 Applied 的故事是 ICAPS 業務今年增長如此之快，抵消了內存市場的疲軟以及我們在領先市場看到的任何放緩邏輯市場，我們預計這種動態將繼續下去。你可以在下個季度看到我們在下個季度沒有增長。但總的來說，我們預計我們所看到的業務動態將在未來幾個季度繼續下去。因此，我們還不能稱之為下半年甚至 24 年，因為內存和領先邏輯的大型市場非常容易受到宏的影響，並且非常容易受到消費者終端市場的影響。我們只需要看看第四季度和明年的情況。

One moment for our next question. And our next question comes from the line of Krish Sankar from TD Cowen.

稍等一下我們的下一個問題。我們的下一個問題來自 TD Cowen 的 Krish Sankar。

Other big picture and a quick clarification for Brice. One is for Gary. When you look at all these leading-edge spending and all the regionalization, it seems like, is it all tied to really CHIPS Act Funding or other factors in play like the permitting orders might be that's causing some relative delay in those leading-edge investments? And Brice, did you say anything about some of the China export control recovery that some of your peers have spoken about in the back half?

Brice 的其他大圖和快速說明。一個是給加里的。當您查看所有這些前沿支出和所有區域化時，似乎這一切都與真正的 CHIPS 法案資助或其他因素有關，例如許可令可能導致這些前沿投資相對延遲？ Brice，你有沒有說一些關於你的一些同行在後半部分談到的中國出口管制恢復的事情？

Yes, Krish, thanks for the question. On the leading edge, there is an intense competition for leadership, so all of those companies are trying to drive their road maps as fast as they can on power performance and cost. So we certainly see that continuing to play out over the next few years. What I would say also is that the perspective that we have right now is that 3-nanometer is going to be a big node, where there's a lot of tape-outs and customer demand. So we think that's going to be pretty robust.

是的，Krish，謝謝你的提問。在前沿領域，領導地位的競爭非常激烈，因此所有這些公司都在努力以盡可能快的速度推動他們在電源性能和成本方面的路線圖。所以我們肯定會看到這種情況在未來幾年繼續發揮作用。我還要說的是，我們現在的觀點是 3 納米將成為一個大節點，那裡有很多流片和客戶需求。所以我們認為這將非常強大。

For Applied, we're in a really good position as our customers move to 3-nanometer. The number of steps for us go up to more than 20% in that transition from 5- to 3-nanometer. Again, you have this really significant competition in that leading edge that -- again, we continue to see that that's going to be sustainable going forward. And then relative to government incentives, there's also a lot of competition there. So you see every region where we do business today, a significant amount of incentives that are being supplied really for leading-edge and for ICAPS. But I think that -- so that's definitely true, that will be an adder for our systems and service business over the next few years. But I think the bigger factor in the leading-edge is just there is pretty significant demand and you have significant competition for leadership. And I'll let Brice answer the next question.

對於 Applied，隨著我們的客戶轉向 3 納米，我們處於非常有利的位置。在從 5 納米到 3 納米的過渡中，我們的步驟數增加了 20% 以上。再一次，你在領先優勢方面有著非常重要的競爭——再一次，我們繼續看到這將是可持續的。然後相對於政府激勵措施，那裡也有很多競爭。因此，您會看到我們今天開展業務的每個地區，都為前沿和 ICAPS 提供了大量激勵措施。但我認為 - 這絕對是真的，這將在未來幾年內成為我們系統和服務業務的補充。但我認為領先優勢中更大的因素只是有相當大的需求，而且你在領導地位方面存在激烈的競爭。我會讓 Brice 回答下一個問題。

Thanks, Gary. And Krish, on the China export controls, we see the same thing as our peers do. We'll be able to ship to some factories in the second half that were clarified recently.

謝謝，加里。而 Krish，在中國出口管制方面，我們看到了與同行相同的事情。我們將能夠在下半年向最近澄清的一些工廠發貨。

One moment for our next question. And our next question comes from the line of Atif Malik from Citi.

稍等一下我們的下一個問題。我們的下一個問題來自花旗的 Atif Malik。

Gary, I have a question on your comments on gate-all-around, and you talked about gaining 5 points of transistor share from FinFET to gate-all-around. My question is the share gain, is that because the TAM is growing or are the dollars coming out from other areas like lithography? And does that statement include contribution from (inaudible)?

加里，我對你對環繞柵極的評論有疑問，你談到從 FinFET 到環繞柵極獲得 5 個晶體管份額。我的問題是份額增加，是因為 TAM 正在增長，還是美元來自光刻等其他領域？該聲明是否包括來自（聽不清）的貢獻？

Yes. Thanks for the question. So I would say gate-all-around, there's both higher process complexity of existing steps plus addition of new steps -- if I -- and we've said that's again a $1 billion opportunity for Applied, and we're really in a great position because the steps that are growing, the increased complexity is in areas where we have very, very strong products and technology. And again, we're deeply engaged with every single one of those companies. So in any of those areas for deposition, selective removal, we have very good visibility relative to overall competitive positions and not just in the first generation of gate-all-around but subsequent generations.

是的。謝謝你的問題。所以我想說全盤考慮，現有步驟的流程複雜性更高，加上新步驟的添加——如果我——我們已經說過，這對 Applied 來說又是一個 10 億美元的機會，我們真的處於很好的位置，因為在我們擁有非常非常強大的產品和技術的領域中，步驟正在增長，複雜性也在增加。再一次，我們與這些公司中的每一家都有深入的接觸。因此，在任何沉積、選擇性去除的領域，我們在整體競爭地位方面都有很好的知名度，不僅在第一代全環柵，而且在後續幾代。

And so again, I think we still see the same thing relative to the size of the market, and the share gains really are relative to FinFET. So what customers were spending for the -- we're spending as a percentage of total transistor from FinFET to gate-all-around, that's where the 5 points of share comes from.

因此，我認為我們仍然看到與市場規模相關的相同情況，而份額增長確實與 FinFET 相關。那麼客戶的支出是多少——我們在從 FinFET 到全柵極的總晶體管支出中所佔的百分比，這就是 5 個份額的來源。

And then relative to the road maps going forward, what I would say is that we definitely see an increasing relative contribution in materials engineering. So if you look at certainly the transistor innovation, wiring resistance is one of the biggest issues in the whole industry. That's an area that's growing very fast. I talked about the (inaudible) growth earlier. So again, that wiring is a really great opportunity for us. Backside power distribution will be coming. There you can get up to 30% area savings without changing the feature size and also improvements in power and performance. In the future, you'll see people stacking nanosheets for another transistor technology in future nodes. So again, more and more of those dollars are moving to materials engineering as we go forward.

然後相對於未來的路線圖，我要說的是，我們肯定會看到材料工程的相對貢獻正在增加。因此，如果您肯定地看一下晶體管創新，佈線電阻是整個行業中最大的問題之一。這是一個增長非常快的領域。我之前談到了（聽不清）增長。再次重申，佈線對我們來說是一個非常好的機會。背面配電即將到來。在不改變特徵尺寸的情況下，您可以獲得高達 30% 的面積節省，並且還可以提高功率和性能。將來，您會看到人們在未來的節點中為另一種晶體管技術堆疊納米片。因此，隨著我們的前進，越來越多的資金轉向材料工程。

One moment for our next question. And our next question comes from the line of Mark Lipacis from Jefferies.

稍等一下我們的下一個問題。我們的下一個問題來自 Jefferies 的 Mark Lipacis。

Gary, for you. You guys got it seems way ahead of the curve on ICAPS. It's been a phenomenally successful investment for you guys, it's really paying off. What -- on these calls, you always talk about all these other investments that you made, I think you went through 3, 4 or 5 of them. Which one of those has the chance to be the biggest? Is there -- does one of this have a chance to be the size of ICAPS is right now? How should we think about the next big driver for you guys, if you were to single out one, if you could?

加里，給你。你們明白了，它似乎領先於 ICAPS 的曲線。對你們來說，這是一項非常成功的投資，它真的得到了回報。什麼——在這些電話中，你總是談論你所做的所有這些其他投資，我想你經歷了其中的 3、4 或 5 項。其中哪一個有機會成為最大的？有沒有——其中之一是否有機會成為 ICAPS 現在的規模？如果可以的話，我們應該如何考慮你們的下一個重要驅動力？

So Mark, just -- thanks for the question, but I just want to understand, are you talking about within ICAPS or are you talking beyond ICAPS?

所以馬克，只是 - 感謝您提出這個問題，但我只想了解，您是在 ICAPS 內談論還是在 ICAPS 之外談論？

Beyond ICAPS, all the things that you guys are investing in right now, you guys -- you made a great decision to invest heavily in ICAPS and is paying off in a major way. So that was (inaudible) investment from my view, and I'm trying to understand like you're making a lot of investments. You talk about a lot of things that you're investing in. Does -- of the 4 or 5 things that you talked about on the calls that you've been investing in, what -- do any of these have the chance to be as big as ICAPS or what has the chance to be as close to ICAPS in terms of the amount of revenue and profitability it could deliver to Applied Materials?

除了 ICAPS 之外，你們現在正在投資的所有東西，你們——你們做出了重大投資 ICAPS 的偉大決定，並且正在以一種重要的方式獲得回報。所以從我的角度來看，這是（聽不清）投資，我試圖理解你正在進行大量投資。你談論了很多你正在投資的事情。在你一直在投資的電話中談到的 4 或 5 件事中，有什麼 - 這些中的任何一個都有機會成為與 ICAPS 一樣大，或者在它可以為 Applied Materials 帶來的收入和盈利能力方面，有什麼機會與 ICAPS 一樣接近？

Okay. Yes. Thanks, Mark. I would say 2 things. One, as customers are going forward, I mentioned this on the previous question. Materials engineering, I think if you look at the percentage of spending going forward, just really tremendous, -- everybody knows that 2D Moore's Law scaling is challenged. And so the innovations in transistor, innovations in wiring, innovations in memory technologies, all of those areas -- and I mentioned the increase in the number of steps and the increase in complexity from one technology node to the next, we're in a really great position, again, relative to what's going to drive our customers' road maps in the future.

好的。是的。謝謝，馬克。我會說兩件事。第一，隨著客戶的發展，我在上一個問題中提到了這一點。材料工程，我認為如果你看一下未來支出的百分比，真的非常巨大，——每個人都知道 2D 摩爾定律縮放受到挑戰。因此，晶體管的創新、佈線的創新、內存技術的創新，所有這些領域——我提到了從一個技術節點到下一個技術節點的步驟數量的增加和復雜性的增加，我們處於相對於未來推動我們客戶路線圖的因素而言，這確實是一個非常好的位置。

And there's tremendous innovations that will bring (inaudible) Sculpta was one example of another way that you can achieve area scaling at a much, much lower cost with this directional etch technology -- so -- and there's many material modification steps, double-digit numbers going from one technology node to the next that are growing, those are areas where we have extremely high share. And we're innovating to drive performance and power and cost for customers. So that would be one area, I would say.

並且有巨大的創新將帶來（聽不清）Sculpta 是另一種方式的一個例子，你可以通過這種定向蝕刻技術以非常非常低的成本實現面積縮放 - 所以 - 並且有許多材料修改步驟，兩位數從一個技術節點到下一個技術節點的數字正在增長，這些是我們擁有極高份額的領域。我們正在通過創新來為客戶提高性能、功率和成本。所以那將是一個領域，我會說。

The other one that I'm pretty excited about longer term is packaging and all the innovation is going to happen going from system-on-chip to system-in-package. And I think that's going to be a tremendous inflection. That's about a $1 billion business for us today. I mentioned earlier that we could see that doubling in the next few years. I think that -- and there's -- we have a very strong position in the served markets that we have today. We have pretty high share. And there are other areas we're focused on. We mentioned hybrid bonding as one, but there are others that we're focused on that will create really big opportunities. So that would be the other area, I think that, that whole movement to chiplets and heterogeneous integration.

另一個讓我對長期感到非常興奮的是封裝，所有的創新都將發生在從片上系統到系統級封裝的過程中。我認為這將是一個巨大的轉變。這對我們今天來說是一項價值 10 億美元的業務。我之前提到過，我們可以看到在未來幾年內翻一番。我認為 - 而且 - 我們在今天的服務市場中擁有非常強大的地位。我們有相當高的份額。我們還關注其他領域。我們提到混合鍵合是其中之一，但我們關注的其他鍵合將創造真正巨大的機會。所以那將是另一個領域，我認為，整個向小芯片和異構集成的轉變。

One moment for our next question. And our next question comes from the line of Toshiya Hari from Goldman Sachs.

稍等一下我們的下一個問題。我們的下一個問題來自高盛的 Toshiya Hari。

Gary, I had a question on your memory business. Clearly, it's going through a pretty rough patch at the moment, consistent with industry trends. I'm curious both in terms of your AGS business as well as your systems business, at what point do you expect your memory business to recover? I know you're pretty close and you're going back and forth with CEOs and CTOs. -- but just curious on the timing there. And -- as a quick follow-up, your business in Korea in the quarter was quite strong, if I'm not mistaken. Korea, obviously over-indexed to memory. So I was hoping you could reconcile the weakness you're seeing in memory, but the strength in Korea.

加里，我有一個關於你的內存業務的問題。顯然，它目前正在經歷一段相當艱難的時期，這與行業趨勢是一致的。我很好奇您的 AGS 業務和系統業務，您希望您的內存業務在什麼時候恢復？我知道你們非常接近，而且你們會與 CEO 和 CTO 來回交流。 - 但只是對那裡的時間感到好奇。而且 - 作為快速跟進，如果我沒記錯的話，你在本季度在韓國的業務非常強勁。韓國，顯然過度索引記憶。所以我希望你能調和你在記憶中看到的弱點，但韓國的力量。

Toshi, it's Brice. I'll just say a couple of things, and Gary can add on that. So on the memory side, we do think it's at sort of historical lows. We've thought about our long-term balance of memory and logic over time. We do think the market from an equipment perspective should be about 1/3 memory and 2/3 logic over time. That 2/3 would be split between relatively evenly between ICAPS and leading-edge. So on the memory, we do think it's at a low. However, in the quarter, we monitor pricing, we monitor utilization, we monitor inventories. Those are still moving in the wrong direction in this past quarter. So it hasn't quite turned yet, but we do think with the ICAPS business growing and with an outlook, long-term outlook strong for leading-edge, we do think memory will have to turn around. It's hard to call the exact moment but we expect that to happen. And then Korea, I think it's just good shipments in the quarter. I don't think it portends anything unique from a trend perspective. We see -- we do still see weakness in the market.

Toshi，是Brice。我只想說幾件事，Gary 可以補充。因此，在內存方面，我們確實認為它處於某種歷史低點。隨著時間的推移，我們已經考慮過我們的記憶和邏輯的長期平衡。我們確實認為，從設備的角度來看，隨著時間的推移，市場應該是大約 1/3 的內存和 2/3 的邏輯。這 2/3 將在 ICAPS 和前沿之間相對平均地分配。所以在內存方面，我們確實認為它處於低位。但是，在本季度，我們監控定價、監控利用率和庫存。在上個季度，這些仍然在朝著錯誤的方向發展。所以它還沒有完全轉變，但我們確實認為隨著 ICAPS 業務的增長和前景，前沿的長期前景強勁，我們確實認為內存必須扭轉。很難說出確切的時間，但我們預計會發生。然後是韓國，我認為該季度的出貨量不錯。從趨勢的角度來看，我不認為它預示著任何獨特之處。我們看到 - 我們確實看到市場疲軟。

Yes. I don't really have too much to add. Again, we do see long-term foundry logic. We've mentioned this before, 2/3, 1/3, certainly continuing strength in the race for leadership in the leading-edge and sustainable strength in ICAPS going forward. We don't think it comes back to that 2/3, 1/3 soon. But longer term, that's kind of where we think that's going to end up.

是的。我真的沒有太多要補充的。同樣，我們確實看到了長期代工邏輯。我們之前已經提到過這一點，2/3，1/3，當然是在 ICAPS 未來的領先地位和可持續實力的競爭中繼續保持實力。我們認為它不會很快回到 2/3、1/3。但從長遠來看，這就是我們認為最終會出現的情況。

One moment for our next question. And our next question comes from the line of Harlan Sur from JPMorgan.

稍等一下我們的下一個問題。我們的下一個問題來自摩根大通的 Harlan Sur。

Yes. Typically, doing periods of spending weakness, you start off with the first couple of quarters, driving a lot of customer push-outs, rescheduling, cancellation activity, then that activity stabilizes and your shipments soon follow that stable trend. I know last earnings, you were still seeing quite a bit of rescheduling and push-out activity on the backlog. Has this activity stabilized?

是的。通常，在支出疲軟時期，您從前幾個季度開始，推動大量客戶推出、重新安排、取消活動，然後該活動穩定下來，您的出貨量很快就會遵循該穩定趨勢。我知道上次的收益，你仍然看到積壓的大量重新安排和推出活動。這個活動穩定了嗎？

Harlan, thank you. I don't think so. We still saw in this quarter, we still saw weakness in NAND, and we saw weakness (inaudible) push-outs on the leading-edge, and that's partly why you see our guide for the next quarter, a little bit bumpy, taking into account some of those push-outs. So I think customers are still reacting to the current environment and checking the road maps and trying to optimize those road maps. And for us, just to sort of reiterate, over the course of this year, the ICAPS business has been so strong that it overcame most of that noise. The growth of ICAPS overcame most of that noise. Plus we had several business units that we're still catching up on back orders. The first part, the ICAPS strength, we expect to continue as the year goes on, as we've said, and be an important component of demand going forward, and the business units that were behind have mostly caught up with the exception of implant, which we are still working to catch up. .

哈蘭，謝謝你。我不這麼認為。我們仍然在這個季度看到，我們仍然看到 NAND 的疲軟，我們看到領先優勢的疲軟（聽不清）推出，這就是為什麼你看到我們下一季度的指南有點顛簸，考慮到考慮其中一些推出。所以我認為客戶仍在對當前環境做出反應並檢查路線圖並嘗試優化這些路線圖。對我們來說，只是重申一下，在今年的過程中，ICAPS 業務非常強大，它克服了大部分噪音。 ICAPS 的發展克服了大部分噪音。此外，我們有幾個業務部門仍在處理延期交貨訂單。第一部分，ICAPS 實力，正如我們所說，我們預計隨著時間的推移將繼續保持下去，並成為未來需求的重要組成部分，落後的業務部門大部分都趕上了，植入除外，我們仍在努力趕上。 .

One moment for our next question. And our next question comes from the line of Timothy Arcuri from UBS.

稍等一下我們的下一個問題。我們的下一個問題來自瑞銀的 Timothy Arcuri。

I just kind of wanted to go back to this China (inaudible) topic. And you guys do such good demand modeling. And I'm kind of wondering what you think the underlying demand that's kind of backing all this? The kind of easy conclusion is that this just all kind of coincided with the leading-edge bands, and so they're just pivoting to pouring money into (inaudible). So when you think about the demand backing this, was this just demand that like wasn't being met by the U.S. and the European chip guys? I asked because EV is not new and penetration is actually pretty high in China already, and it haven't been great anyway. So that's the first part of the question. And then also, is that really like this year (inaudible) all more going to be part of next year...

我只是想回到這個中國（聽不清）話題。你們做了很好的需求建模。我有點想知道你認為支持這一切的潛在需求是什麼？一種簡單的結論是，這與前沿樂隊完全吻合，因此他們只是轉向向（聽不清）投入資金。所以當你考慮支持這一點的需求時，這只是美國和歐洲芯片廠商沒有滿足的需求嗎？我問是因為電動汽車並不是新事物，而且在中國的普及率實際上已經很高，而且還不是很好。這是問題的第一部分。然後，真的像今年一樣嗎（聽不清）明年會更多......

Okay. Great. The second part of the question first. So we definitely think it will be a continuing trend. So we raised our expectations of demand in China during the quarter, and we raised our expectations over time from China during the quarter.

好的。偉大的。先說第二部分的問題。所以我們絕對認為這將是一個持續的趨勢。因此，我們在本季度提高了對中國需求的預期，並且隨著時間的推移，我們在本季度提高了對中國需求的預期。

And as I may have said in the first question, when we track fab projects in China, there's quite a number. The overall list for the globe is approximately 100 now, and there's a significant amount in China. So when it's mostly in the ICAPS space -- and when we think about the end markets, I guess the perspective I have is that they are localizing as much of the supply to these ICAPS end markets as they can. And so they are building local supply for if you think of sensors, power chips, analog chips, microcontrollers, we believe they're building out those capabilities internally, and I think there's been confirmation recently that some of the imports of those components to China have declined even though demand is growing. So our perspective is the capacity that's being put in place in China, it isn't extraordinary at this point. If you think of China trying to build a local ecosystem of capacity that matches their demand function, if you will, over time, they're not there yet. So these investments make sense if that's the goal, and we know they have government incentives to accomplish that.

正如我在第一個問題中所說的那樣，當我們跟踪中國的晶圓廠項目時，有很多。現在全球的總名單大約有 100 個，中國的數量也很大。因此，當它主要在 ICAPS 領域時——當我們考慮終端市場時，我想我的觀點是他們正在盡可能多地本地化這些 ICAPS 終端市場的供應。因此，如果你想到傳感器、電源芯片、模擬芯片、微控制器，他們正在建立本地供應，我們相信他們正在內部建立這些能力，而且我認為最近已經確認，這些組件中的一些進口到中國儘管需求在增長，但已經下降。所以我們的觀點是中國正在建立的能力，在這一點上並不特別。如果你認為中國試圖建立一個與他們的需求功能相匹配的本地容量生態系統，如果你願意的話，隨著時間的推移，他們還沒有做到這一點。因此，如果這是目標，那麼這些投資就有意義，而且我們知道他們有政府激勵措施來實現這一目標。

Yes, Tim, this is Gary. One other thing I would say is -- and we do, as you said, a lot of modeling of each one of those vertical markets within ICAPS, we look at fab utilization, wafer starts, all of those things. The one other thing I would say is that we look at good chips out for each one of these different factories. And so when you look at yield as another factor, that's -- when we look at the overall market, it's roughly in line with what we see relative to our assumptions of the growth rates in those different segments. But again, I would look at also the good chips out.

是的，蒂姆，這是加里。我要說的另一件事是——正如你所說，我們對 ICAPS 中的每個垂直市場進行了大量建模，我們研究了晶圓廠利用率、晶圓啟動，所有這些事情。我要說的另一件事是，我們會為這些不同的工廠中的每一家尋找好的芯片。因此，當你將收益率視為另一個因素時，那就是——當我們審視整個市場時，它與我們對這些不同領域增長率的假設大致一致。但同樣，我也會看看好的籌碼。

One moment for our next question. Our next question comes from the line of Joe Quatrochi from Wells Fargo.

稍等一下我們的下一個問題。我們的下一個問題來自富國銀行的 Joe Quatrochi。

Yes. And kind of as a follow-up to Gary's comment, I guess, how do we think about -- if you were to look at like domestic China's capital intensity for mature nodes relative to maybe some of your more experienced customers, is that a multiple higher than your more experienced customers? And I guess, how do you think about that kind of normalizing over time?

是的。作為加里評論的後續行動，我想，我們如何思考——如果你要看中國國內對成熟節點的資本密集度，相對於你的一些更有經驗的客戶，是不是倍數高於更有經驗的客戶？我想，您如何看待隨著時間的推移這種正常化？

Yes, I can start, Joe. The capital intensity, since it's mostly ICAPS, what we see in ICAPS is the capital intensity is sort of like (inaudible) 5 or 8 years ago. So that whole discussion about there being a lack of reuse, especially in China, those are mostly greenfield sites. They are new equipment sets. So the capital intensity is fairly high. And we think that's consistent by the way with most of the ICAPS additions going on across the globe. And that's a major factor as to why overall intensity as we measure intense WFE intensity to semiconductors, it is going up over time as the fact that ICAPS is so much higher.

是的，我可以開始了，喬。資本密集度，因為它主要是 ICAPS，我們在 ICAPS 中看到的是資本密集度有點像（聽不清）5 或 8 年前。因此，關於缺乏再利用的整個討論，尤其是在中國，主要是綠地。它們是新設備。所以資本密集度還是比較高的。順便說一下，我們認為這與全球範圍內正在進行的大多數 ICAPS 添加是一致的。這是為什麼當我們測量半導體的強烈 WFE 強度時整體強度隨著時間的推移而上升的一個主要因素，因為 ICAPS 高得多。

One moment for our next question. Our next question comes from the line of Sidney Ho from Deutsche Bank.

稍等一下我們的下一個問題。我們的下一個問題來自德意志銀行的 Sidney Ho。

I wanted to ask about the AGS business. Gary, you talked about AGS still growing this year despite the many different headwinds. And if you kind of just look at the upside and the AGS in the quarter, can you speak to what drove the upside given the underutilization across foundry logic and memory. And also to ask about how do you expect the segment to perform in the second half of the year, now that all the memory suppliers have been taking down the utilization? And is there a range of AGS growth we should be thinking about this year? .

我想問一下AGS業務。加里，你談到儘管有許多不同的逆風，但今年 AGS 仍在增長。而且，如果您只看一下本季度的上行空間和 AGS，您能否談談在代工邏輯和內存未得到充分利用的情況下推動上行空間的原因。還要問一下，既然所有內存供應商都在降低利用率，您預計下半年該部門的表現如何？今年我們應該考慮一系列的 AGS 增長嗎？ .

Yes, thanks for the question. So AGS, if you look at the way that business breaks out, about 85% is spares and service. And a significant percentage, over 60% is long-term agreements, subscription types of agreements with a length of 2.6 years. We're still seeing very, very high renewal rates. So one thing that helps us in this type of market environment is a lot of that business is still based on those longer-term agreements. So that's helping giving us a level of stability in this type of a market. And then the other part of AGS, kind of mid-teens is the 200-millimeter business, that's really focused on ICAPS. And that business is very robust. So I would say that our business, again, relative to the agreements, pretty stable, continuing to grow, strong renewal rates, and then the 200-millimeter business is also very stable and growing in 2023. I don't know, Brice, if you want to add anything else?

是的，謝謝你的提問。所以 AGS，如果你看看業務爆發的方式，大約 85% 是備件和服務。其中很大一部分（超過 60%）是長期協議，訂閱類型的協議期限為 2.6 年。我們仍然看到非常非常高的續訂率。因此，在這種類型的市場環境中對我們有幫助的一件事是，很多業務仍然基於那些長期協議。因此，這有助於我們在此類市場中保持一定程度的穩定性。然後是 AGS 的另一部分，十幾歲的孩子是 200 毫米業務，它真正專注於 ICAPS。而且這項業務非常強勁。所以我要說的是，我們的業務，相對於協議，非常穩定，持續增長，續約率很高，然後 200 毫米業務也非常穩定，並在 2023 年增長。我不知道，布萊斯，如果您想添加其他內容？

I think that's a major thing, and we've said that we expect it to grow for the year. So it's growing year-over-year, and we expect it to grow for the year. And our outlook does include -- you see it's slower growth in Q3. So our outlook does assume that there'll be lower utilization in some of the factories. So we've accounted for that Sidney, but we do expect it to grow year-over-year.

我認為這是一件大事，我們已經說過我們預計今年會增長。所以它逐年增長，我們預計它今年會增長。我們的前景確實包括——你會看到第三季度增長放緩。因此，我們的展望確實假設一些工廠的利用率會降低。所以我們已經考慮到了 Sidney，但我們確實預計它會同比增長。

Yes. And I guess the other thing I would add is that we -- certainly, we're growing this year. And we still -- we're still on track to this model that we had talked about a couple of years ago with low double-digit growth for AGS longer term.

是的。我想我要補充的另一件事是我們 - 當然，我們今年正在增長。而且我們仍然 - 我們仍然在走上我們幾年前討論過的這種模式的軌道，AGS 的長期低兩位數增長。

One moment for our next question. And our next question comes from the line of Brian Chin from Stifel.

稍等一下我們的下一個問題。我們的下一個問題來自 Stifel 的 Brian Chin。

I guess sort of doubling back on sort of ICAPS for the year. Obviously, it's almost like a one-for-one offset to some of the industry weakness in memory and advanced logic foundry. But I guess can you talk maybe to linearity a bit? Because you have talked about how backlog did increase this quarter but still at pretty robust levels. Lead times have sort of normalized. And I think the expectation was that there'd be a little bit of a gearing towards the calendar first half in terms of that business. So I'm kind of curious how you see that still for calendar second half, and whether there's some of this China that's been discussed as part of maybe a wildcard relative to how you view that second half?

我想今年的 ICAPS 有點加倍。顯然，這幾乎就像是對內存和高級邏輯代工方面的一些行業弱點的一對一抵消。但我想你能談談線性度嗎？因為您已經談到了本季度積壓如何增加，但仍處於相當強勁的水平。交貨時間已經正常化。而且我認為，就該業務而言，預計上半年會有一些調整。所以我很好奇你如何看待下半年的日曆，以及是否有一些中國被討論為與你如何看待下半年有關的通配符的一部分？

Yes. Thanks, Brian. Without getting specific about trends quarter-over-quarter, it has been gradually increasing. So if we look back to, I think, Q3 of last year, Q3, Q4, Q1, Q2, I think we have an increased trend across each of those quarters. And so we're not going to guide the second half, but I don't think there's a front-loaded phenomenon in ICAPS.

是的。謝謝，布萊恩。在沒有具體說明季度趨勢的情況下，它一直在逐漸增加。因此，如果我們回顧去年的第三季度、第三季度、第四季度、第一季度、第二季度，我認為我們在每個季度都有增長趨勢。所以我們不打算指導下半年，但我認為 ICAPS 中不存在前置現象。

Yes, Brian, the other thing I would add is that implant, as Brice mentioned earlier, is one of our most supply-constrained businesses. We have very significant demand. We've launched around 10 new products in ICAPS over the last few years. So that business is going to continue to ramp through the year as we close that supply/demand gap. So that is a significant portion of ICAPS, an area where we have real strength with the customers, the demand there for the inflections is very strong. So again, that's another factor driving our ICAPS strength.

是的，Brian，我要補充的另一件事是，正如 Brice 之前提到的，植入物是我們供應最受限制的業務之一。我們有非常大的需求。在過去的幾年裡，我們在 ICAPS 中推出了大約 10 種新產品。因此，隨著我們縮小供需缺口，該業務將在今年繼續增長。所以這是 ICAPS 的重要部分，我們在客戶方面擁有真正的實力，那裡對變化的需求非常強烈。同樣，這是推動我們 ICAPS 實力的另一個因素。

One moment for our next question. And our next question comes from the line of Quinn Bolton from Needham.

稍等一下我們的下一個問題。我們的下一個問題來自 Needham 的 Quinn Bolton。

I guess I have a clarification and a question. Just a clarification on the China export clarifications that we received. I think some of your larger cap peers have talked about benefits of $200 million to $300 million in the second half. You have higher market share, I think in China. Can we expect that those export clarifications probably have at least a $300 million benefit for you in the second half?

我想我有一個澄清和一個問題。只是對我們收到的中國出口澄清的澄清。我認為你的一些大盤股同行已經談到下半年 2 億至 3 億美元的收益。你有更高的市場份額，我認為在中國。我們是否可以預期這些出口澄清可能在下半年為您帶來至少 3 億美元的收益？

Quinn, since it's a small number of customers, we're not going to be specific about the number, but we definitely see the same situation. We have factories that we will be able to ship to in the second half. And at least for Q3, that's in our guide.

Quinn，由於客戶數量很少，我們不會具體說明具體數字，但我們肯定會看到相同的情況。我們有工廠，我們將能夠在下半年發貨。至少對於第三季度，這是我們的指南。

Okay. And then the question just with the ICAPS strength and relative weakness in advanced foundry logic. I think you've talked about ICAPS being about the half of foundry logic. I assume for '23 that's probably more than half of the business, but wondering if you might be able to give us a range where you think ICAPS falls out for '23, given the relative strength?

好的。然後問題只是 ICAPS 的優勢和先進代工邏輯的相對弱點。我認為您已經談到 ICAPS 是鑄造邏輯的一半。我假設 23 年這可能佔業務的一半以上，但想知道您是否可以給我們一個範圍，您認為 ICAPS 會在 23 年下降，考慮到相對實力？

Yes, it is larger. The growth has been significant, both last year and this year, as we talked about, and we think it's stable. And then the only thing we've really guided is long term, we think foundry logic is a little bit weak in this year. So we think that gets in more of a balance in the long term on the logic side of WFE. But -- so long term, we would say it's relatively equal. This year, ICAPS is the largest market.

是的，它更大。正如我們所說，去年和今年的增長都很顯著，我們認為它是穩定的。然後我們唯一真正指導的是長期，我們認為代工邏輯在今年有點薄弱。因此，我們認為從長遠來看，這在 WFE 的邏輯方面取得了更多的平衡。但是——從長遠來看，我們會說它是相對平等的。今年，ICAPS 是最大的市場。

(Operator Instructions)

（操作員說明）

One moment for our next question. And our next question comes from the line of Blayne Curtis from Barclays.

稍等一下我們的下一個問題。我們的下一個問題來自巴克萊銀行的 Blayne Curtis。

Maybe just a follow-up on that last one. I was curious (inaudible). If you could just walk us through the extent of the push-outs and really just trying to figure out, you're still seeing quite low utilizations at (inaudible). Some of the markets may recover in the second half. But I'm just kind of curious your visibility into when that leading-edge segment may rebound?

也許只是最後一個的後續行動。我很好奇（聽不清）。如果您可以帶我們了解推出的範圍並且真的只是想弄清楚，您仍然會看到（聽不清）的利用率很低。部分市場可能會在下半年復蘇。但我只是有點好奇你對這個前沿領域何時可能反彈的看法？

Blayne, for the low utilization, it is relatively low. I think it's -- for leading-edge factories, I saw somebody quoting around 70%. I think that's probably a good range right now for leading-edge. And the push-outs are really site-specific and project-specific. I don't think they sense or signal a change in direction of any of our customers in terms of their intent to build out new process technologies. And what's ahead for us that's most important is this transition to gate-all-around, and we think that will start in earnest as we get into 2024, and that's one of the big inflections that we think will drive value for Applied. So anyway, that's what I would say on the push-outs.

布萊恩，對於低利用率，它是比較低的。我認為這是——對於領先的工廠，我看到有人引用了大約 70%。我認為這可能是目前前沿領域的一個很好的範圍。推出的內容確實是特定於站點和特定於項目的。我認為他們沒有感覺到或發出信號表明我們任何客戶在構建新工藝技術方面的意圖發生了變化。對我們來說，最重要的是向全方位門的過渡，我們認為這將在我們進入 2024 年時真正開始，這是我們認為將推動 Applied 價值的重大轉變之一。所以無論如何，這就是我在推出時要說的。

Yes, Blayne, I would say that a couple of things. One, the 3-nanometer, we still -- everything that we see -- that's going to be an important technology node. And so certainly, next year, we think that's going to be a meaningful contribution to revenue for Applied. And then as Brice said, for gate-all-around, we'll see the initial ramping of that spending in a meaningful way also in 2024.

是的，布萊恩，我想說幾件事。一，3 納米，我們仍然 - 我們看到的一切 - 這將成為一個重要的技術節點。所以當然，明年，我們認為這將對 Applied 的收入做出有意義的貢獻。然後正如布賴斯所說，對於全能門，我們也將在 2024 年以有意義的方式看到該支出的初步增長。

One moment for our next question. And our next question comes from the line of Vijay Rakesh from Mizuho.

稍等一下我們的下一個問題。我們的下一個問題來自 Mizuho 的 Vijay Rakesh。

Just a quick question on the government funding. I know you mentioned $400 billion. How much do you expect that to add to global WFE if you look at '23 or second half '23 or '24?

只是一個關於政府資金的快速問題。我知道你提到了 4000 億美元。如果您查看 23 年或 23 年下半年或 24 年下半年，您預計這會給全球 WFE 增加多少？

That's the right number, global phenomenon, as you talked about. The way we think about it is it will add about 3% to 7% of WFE over the next 5 years. We don't think $400 billion will be incremental WFE. What we think it does is set the locations, our customers will be putting their assets in place. And because some of those locations will be new, you won't have quite the economies of scale as they might have in their larger facility areas, and that will drive a small amount of incremental equipment since there's a little bit less economies of scale. So we estimate that to be 3% to 7% over the next 5 years. And then in the very short term, we do see companies that are starting to accrue for some of the tax benefits that were included in that group. So I think the incentives are already starting to encourage investment.

正如你所說，這是正確的數字，全球現象。我們認為它會在未來 5 年內增加約 3% 至 7% 的 WFE。我們認為 4000 億美元不會是 WFE 的增量。我們認為它所做的是設置位置，我們的客戶將把他們的資產放在適當的位置。而且因為其中一些地點是新的，你不會像他們在更大的設施區域那樣擁有相當的規模經濟，這將推動少量增量設備，因為規模經濟稍微少一點。因此，我們估計未來 5 年的增長率為 3% 至 7%。然後在很短的時間內，我們確實看到公司開始獲得該組中包含的一些稅收優惠。所以我認為激勵措施已經開始鼓勵投資。

Got it. And then on the China side, would it be fair to assume that next year, ICAPS continue to hold up, but might be memory spending could be down again year-on-year for China?

知道了。然後在中國方面，假設明年 ICAPS 繼續保持堅挺，但中國的內存支出可能再次同比下降是否公平？

On the ICAPS side, we do expect it to hold up. And then memory, I think memory is more market-driven. So what we're seeing for both the memory and the leading-edge logic for next year, it's going to be more dependent on macro and some of those consumer markets. So TBD on that piece. .

在 ICAPS 方面，我們確實希望它能站穩腳跟。然後內存，我覺得內存更多的是市場驅動。因此，我們看到明年的內存和前沿邏輯將更加依賴宏觀和其中一些消費市場。所以待定那篇文章。 .

One moment for our next question. And our next question comes from the line of Mehdi Hosseini from SIG.

稍等一下我們的下一個問題。我們的下一個問題來自 SIG 的 Mehdi Hosseini。

For Brice, I'm just trying to better think about earnings (inaudible) opportunities with ICAPS and other areas. And in that context, should I assume that like if I were to use FY '22, WFE was closer to $100 billion. And you guys did almost (inaudible) in earnings. In looking forward, can you hit those kind of revenue targets without having WFE well above 90 billion? And then for Gary, I understand the government incentives, so that is very good for the (inaudible) industry. But in the longer term, don't you think that these subsidies could make the cycles actually more volatile? And perhaps I could reference what happened in the past few years, demand (inaudible) and then we had some (inaudible) want to understand how you think about the subsidies in the context of the shape of the cycles and volatilities?

對於 Brice，我只是想更好地考慮 ICAPS 和其他領域的盈利（聽不清）機會。在這種情況下，我是否應該假設，如果我使用 FY '22，WFE 接近 1000 億美元。你們幾乎（聽不清）收入。展望未來，如果 WFE 不超過 900 億美元，您能否實現這些收入目標？然後對於加里，我了解政府的激勵措施，這對（聽不清）行業非常有利。但從長遠來看，你不認為這些補貼實際上會使周期更加不穩定嗎？也許我可以參考過去幾年發生的事情，需求（聽不清）然後我們有一些（聽不清）想了解你如何看待週期和波動形狀背景下的補貼？

Mehdi, on the earnings question, I think if I understand that, yes, 90 billion would support larger earnings as we go forward because our AGS business will continue to grow. We expect upsides in our display business as we go forward. So if you're looking to model those, I would look at modeling the continued growth in AGS and thinking about upsides in display on top of where we are today. And that should give you a perspective on if there's no growth in WFE where the model could get to over the next couple of years. And then, Gary, on subsidies.

Mehdi，關於收益問題，我想如果我理解的話，是的，隨著我們前進，900 億美元將支持更大的收益，因為我們的 AGS 業務將繼續增長。隨著我們的發展，我們預計我們的顯示器業務會出現上升空間。因此，如果你想對這些進行建模，我會考慮對 AGS 的持續增長進行建模，並考慮在我們今天所處的位置之上展示的優勢。這應該讓你了解 WFE 是否沒有增長，該模型在未來幾年內可能會達到。然後，加里，關於補貼。

Yes. I think that Brice talked about 3% to 7%, Mehdi, incremental spending over the next several years. Certainly, there's a tremendous amount of competition between different geographies. But customers, we think, will invest based on where they see the demand -- so the timing of those investments, I don't think they're going to be significantly different than the way they thought about it in the past.

是的。我認為 Brice 談到了 3% 到 7%，Mehdi，未來幾年的增量支出。當然，不同地區之間存在著巨大的競爭。但我們認為，客戶將根據他們看到需求的地方進行投資——所以這些投資的時機，我認為它們不會與他們過去的想法有很大不同。

The one thing I would say that should be a benefit is that as these companies move into new regions and they're starting up new factories, the initial efficiency of those factories is going to be lower. For sure, as they're moving into the new locations, and that's also incremental help for our service business because they don't have all the trained personnel and all of the infrastructure in place in those new locations. So anyway, that's the way we think about it.

我要說的一件事應該是一個好處，就是隨著這些公司進入新的地區並開辦新工廠，這些工廠的初始效率將會降低。可以肯定的是，隨著他們搬到新地點，這對我們的服務業務也有增量幫助，因為他們沒有在這些新地點配備所有訓練有素的人員和所有基礎設施。所以無論如何，這就是我們思考它的方式。

And operator, I think we have time for one more question or a follow-up, please.

接線員，我想我們還有時間再問一個問題或跟進。

Certainly. Then our final question for today is a follow-up question from the line of Stacy Rasgon from Bernstein Research.

當然。那麼我們今天的最後一個問題是來自 Bernstein Research 的 Stacy Rasgon 的後續問題。

I had a question on the investment plans that you're going to be talking about next week. I know you gave us the details then, but I was wondering if you could give us just a little bit of (inaudible) here on what the purpose of this is. You talked about gains in the gate-all-around like 5 points. Do you need these kind of investments to get those market share gains? Or is this something that kind of gives you an edge like into the second half of the decade, with like resources and support that you can offer that others are not going to be able to offer. Just anything you could tell us in advance of maybe the details of the next week, that would be helpful.

我有一個關於你下週將要談論的投資計劃的問題。我知道你當時向我們提供了詳細信息，但我想知道你是否可以在這裡向我們介紹一下（聽不清）這樣做的目的是什麼。你談到了全能門的收益，比如 5 分。您是否需要此類投資來獲得這些市場份額收益？或者這是否會給你帶來優勢，比如進入下半年，你可以提供其他人無法提供的資源和支持。您可以提前告訴我們下週的任何細節，這將很有幫助。

Yes. Stacy, thanks for the question. So what I would say is that one of the most important factors for any company is the time to innovation, time to commercialization and innovation success rate. So we've been -- and as you know, it takes many, many years from concept to high-volume manufacturing. And that's somewhat of a serial process. And so working with some of our largest customers, we think there's opportunities to drive some of those steps in parallel and significantly accelerate time to innovation. So that's what we're going to be talking about next week. It's really exciting. Again, I definitely do think there's opportunities there. And I do believe that materials inflections, new structures, some of the things I've talked about, that's going to be a bigger and bigger percentage of gains. Some of our big customers talk about design technology co-optimization, becoming a much bigger part of their road map for energy-efficient computing -- so I think, Stacy, we'll cover more of this next week, but we have been working with our largest customers on some of these concepts.

是的。斯泰西，謝謝你的提問。所以我要說的是，對於任何公司來說，最重要的因素之一就是創新時間、商業化時間和創新成功率。所以我們一直 - 正如你所知，從概念到大批量製造需要很多很多年。這有點像一個串行過程。因此，與我們一些最大的客戶合作，我們認為有機會並行推動其中一些步驟並顯著加快創新時間。這就是我們下週要討論的內容。這真的很令人興奮。同樣，我確實認為那裡有機會。我確實相信，材料的變化、新的結構，以及我剛才談到的一些事情，將成為越來越大的收益百分比。我們的一些大客戶談論設計技術協同優化，成為他們節能計算路線圖的重要組成部分——所以我想，Stacy，我們下週會討論更多，但我們一直在努力與我們最大的客戶就其中一些概念進行交流。

And I definitely think there's ways to accelerate innovation. And as you know, if you think about how much money companies spend on each R&D dollars on each technology node, there's a tremendous opportunity for economic optimization, both on cost and then value creation. Anyway, we'll cover more of that next week. And then we will also cover this at the Semicon event that Mike talked about earlier.

我絕對認為有加速創新的方法。如您所知，如果您考慮一下公司在每個技術節點上的每項研發資金上花費了多少錢，就會發現經濟優化的巨大機會，包括成本和價值創造。無論如何，我們將在下週討論更多內容。然後我們還將在 Mike 之前談到的 Semicon 活動中介紹這一點。

So is this just like a new maiden fab? Or is it more than that?

那麼這就像一個新的處女晶圓廠嗎？還是不止於此？

I'd say it's more than that. The concepts, certainly, the scale of what we're talking about is pretty significantly bigger than what we're doing today. And the concept of how we're going to work through the entire ecosystem, I think, are pretty exciting.

我想說的不止於此。這些概念，當然，我們正在談論的規模比我們今天正在做的要大得多。我認為，我們將如何在整個生態系統中開展工作的概念非常令人興奮。

Brice, would you like to help us close out the call today?

Brice，你願意幫我們結束今天的通話嗎？

Thank you, Mike. My takeaway today is while there are areas of weakness in our markets this year, Applied is making good operating progress and outperforming the markets, thanks to our unique breadth and diversity. We're confident about the industry's long-term growth opportunity, and we're in a great position to make significant investments in our future and increase cash returns to shareholders. On Monday, we look forward to detailing the strategic investment we're making to collaborate closely and productively with our customers that Gary just described. Gary will see many of you at the Bernstein Conference in New York on June 1, and I hope to see you at the BofA conference in San Francisco, June 7. Mike, please go ahead and close the call.

謝謝你，邁克。我今天的收穫是，雖然今年我們的市場存在一些薄弱環節，但由於我們獨特的廣度和多樣性，應用材料公司正在取得良好的運營進展並跑贏市場。我們對該行業的長期增長機會充滿信心，我們有能力對未來進行重大投資並增加股東的現金回報。週一，我們期待詳細介紹我們為與 Gary 剛才描述的客戶密切和富有成效地合作而進行的戰略投資。加里將於 6 月 1 日在紐約的伯恩斯坦會議上見到你們中的許多人，我希望在 6 月 7 日在舊金山舉行的美國銀行會議上見到你們。邁克，請繼續並結束電話會議。

Okay. Thanks, Brice. And we'd like to thank everybody for joining us today. A replay of today's call is going to be available on the IR page of our website by about 5:00 Pacific Time. We'd like to thank you for your continued interest in Applied Materials.

好的。謝謝，布萊斯。我們要感謝大家今天加入我們。太平洋時間 5:00 左右，我們網站的 IR 頁面將提供今天電話會議的重播。我們要感謝您對應用材料的持續關注。

Thank you, ladies and gentlemen, for your participation in today's conference. This does conclude the program. You may now disconnect. Good day.

女士們，先生們，感謝你們參加今天的會議。這確實結束了程序。您現在可以斷開連接。再會。