應用材料 (AMAT) 2023 Q4 法說會逐字稿

Welcome to the Applied Materials Earnings Conference Call. (Operator Instructions)

歡迎參加應用程式材料收益電話會議。 （操作員指令）

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

現在，我想將會議交給公司副總裁 Michael Sullivan。先生，請繼續。

Good afternoon, everyone, and thank you for joining Applied's Fourth 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財年第四季財報電話會議。和我一起參加的是我們的總裁兼執行長 Gary Dickerson；以及我們的財務長布萊斯希爾（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.

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性的影響，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資訊包含在應用材料公司向美國證券交易委員會提交的最新 10-Q 表中。

Today's call also includes non-GAAP financial measures. Reconciliations to GAAP measures are found in today's earnings press release and in our quarterly earnings materials, which are available on our website at ir.appliedmaterials.com.

今天的電話會議還包括非公認會計準則財務指標。與 GAAP 指標的對帳表可在今天的收益新聞稿和我們的季度收益資料中找到，這些資料可在我們的網站 ir.appliedmaterials.com 上找到。

Before we begin, I have a calendar announcement. On Tuesday evening, December 12, Applied will lead a panel on the future of logic near the IEDM Conference in San Francisco. Joining us will be leading technology executives from Intel, Samsung and TSMC, along with Google, Qualcomm, Synopsys and the EV Group. There won't be a webcast, so we hope you'll join us in San Francisco.

在我們開始之前，我有一個日曆公告。 12 月 12 日星期二晚上，應用材料公司將在舊金山 IEDM 會議附近舉辦一個關於邏輯未來的小組討論會。與我們一起參加的還有來自英特爾、三星、台積電、谷歌、高通、新思科技和 EV 集團的頂尖技術高管。不會有網路直播，所以我們希望您能來舊金山加入我們。

And with that introduction, I'd like to turn the call over to Gary Dickerson.

介紹完畢後，我想將電話轉給加里·迪克森 (Gary Dickerson)。

Thank you, Mike. Before we begin, I'd like to speak briefly about Israel. As many of you know, Applied Materials has had a significant presence in Israel for nearly 30 years. We were shocked by the terrorist attacks of October 7 and the outbreak of war with its a measurable suffering and loss. Our team in Israel is proving their resilience at this dangerous time and Applied Materials is committed to do our part to help our families stay safe until more peaceful conditions return.

謝謝你，麥克。在我們開始之前，我想先簡單談談以色列。大家可能都知道，應用材料公司在以色列已經佔有重要地位近 30 年。 10月7日的恐怖攻擊和戰爭的爆發令我們震驚，給我們帶來了巨大的痛苦和損失。我們在以色列的團隊正在這危險時刻證明他們的韌性，應用材料公司致力於盡我們的一份力量幫助我們的家人保持安全，直到更加和平的局勢恢復。

Now, turning to our results. We delivered a strong finish to fiscal 2023 with record earnings in our fourth quarter and record revenue, earnings and cash flow for the year as a whole. I would like to recognize the hard work and commitment of our global team to deliver these outstanding results.

現在，來談談我們的結果。我們在 2023 財年取得了強勁成績，第四季度的收益創下了歷史新高，全年的收入、收益和現金流也創下了歷史新高。我要讚揚我們的全球團隊為取得這些傑出成果所付出的辛勤工作和奉獻精神。

As this is our year-end call, I'll begin my prepared remarks by reviewing our performance and key accomplishments over the past 12 months. I'll then talk about our longer-term growth thesis for the industry and Applied before concluding with our outlook and priorities for 2024.

因為這是我們的年終電話會議，所以我將首先回顧我們過去 12 個月的表現和主要成就。然後，我將談談我們對產業和應用的長期成長論點，最後總結我們對 2024 年的展望和優先事項。

While semiconductor and wafer fabrication equipment spending were both down in 2023, Applied was able to demonstrate the strength of our broad portfolio as well as the central role we play enabling major industry inflections. Our Semiconductor Systems business delivered mid-single-digit growth for the fiscal year and remains on track for growth in calendar 2023, which will be the fifth consecutive year that we've outperformed the wafer fab equipment market.

儘管 2023 年半導體和晶圓製造設備支出均有所下降，但應用材料公司仍能展現出我們廣泛產品組合的實力，以及我們在推動產業重大變革中所發揮的核心作用。我們的半導體系統業務在本財年實現了中等個位數成長，並預計在 2023 年繼續保持成長勢頭，這將是我們連續第五年超越晶圓廠設備市場。

We believe we can sustain this outperformance over the coming years, thanks to the leadership positions we've established at the major technology inflections that will enable our customers' road maps.

我們相信，憑藉我們在重大技術轉折點上確立的領導地位，我們將能夠在未來幾年內保持這種優異的表現，這將使我們的客戶的路線圖成為可能。

In the past 12 months, many of our business units delivered new records and major milestones, including etch, where we passed 10,000 shipments of our Sym3 chamber. We also released new products and secured incremental production-tool-of-record positions in gate-all-around, backside power delivery, patterning, advanced DRAM and high-bandwidth memory and heterogeneous integration.

在過去的 12 個月中，我們的許多業務部門都創下了新紀錄和重要里程碑，其中蝕刻部門的 Sym3 腔體出貨量已突破 10,000 台。我們還發布了新產品，並在環柵、背面供電、圖案化、先進 DRAM 和高頻寬記憶體以及異質整合等領域獲得了增量生產工具記錄的地位。

At the same time, we strengthened our ICAPS business that serves IoT, communications, auto, power and sensor customers, with new products and application wins in etch, epitaxy, implant as well as metrology and inspection.

同時，我們加強了服務於物聯網、通訊、汽車、電力和感測器客戶的ICAPS業務，並在蝕刻、外延、注入以及計量和檢測領域取得了新產品和應用勝利。

In services, we delivered low single-digit revenue growth in fiscal 2023, overcoming headwinds including lower fab utilization rates and trade restrictions. In this period, our total installed base increased 5%. In fact, our installed base of process chambers is now more than twice as big as our nearest competitor.

在服務領域，我們克服了包括晶圓廠利用率下降和貿易限制在內的不利因素，在 2023 財年實現了低個位數的收入成長。在此期間，我們的總安裝基數增加了 5%。事實上，我們現在安裝的工藝室基數是我們最接近的競爭對手的兩倍多。

In addition, there are more than 14,000 tools that are not chamber-based, including CMP, implant and metrology and inspection. We grew the number of tools under long-term subscription agreements, which now generate 63% of our total parts and service revenues. We also maintained the renewal rate of these subscriptions at 90%.

此外，還有超過 14,000 種非基於腔室的工具，包括 CMP、注射、計量和檢查。我們增加了長期訂購協議下的工具數量，目前這些工具占我們總零件和服務收入的 63%。我們也將這些訂閱的續訂率維持在 90%。

In 2023, we continue to focus on our operations and supply chain, and we've made significant and sustainable improvements. Compared to this time last year, we are providing customers with better on-time delivery and shipment quality while normalizing our inventory levels. More importantly, our operations are ready to scale as the industry grows over the years to come.

2023年，我們繼續專注於我們的營運和供應鏈，並取得了重大且可持續的改進。與去年同期相比，我們在使庫存水準正常化的同時，為客戶提供了更好的準時交貨和裝運品質。更重要的是，隨著未來幾年產業的發展，我們的業務也準備好擴大規模。

Across the company, we're in a great position to enable our customer success and profitably grow Applied Materials as this next era of industry expansion takes shape. Looking to the future, there are 4 key components of our growth thesis. First, we believe that semiconductors will outgrow GDP as the digital transformation of the global economy progresses. Second, we expect the market for wafer fab equipment to grow as fast or faster than the market for semiconductors. This is because the industry road map is becoming more complex and chipmakers need to deploy more technology to move from one node to the next. Third, we believe that Applied will outperform wafer fab equipment because the key technology inflections are enabled by materials science and materials engineering where Applied has the broadest, most connected and most enabling portfolio of solutions. And fourth, we believe we can grow our service business as fast or faster than our equipment business by providing customers with advanced service solutions that accelerate technology transfer from R&D to high-volume manufacturing and optimize device performance, yield and cost in their fabs.

隨著新一輪產業擴張時代的到來，整個公司都處於有利地位，可以幫助客戶取得成功，並實現應用材料公司的獲利成長。展望未來，我們的成長理論有四個關鍵要素。首先，我們相信隨著全球經濟數位轉型的推進，半導體的成長速度將超過GDP。其次，我們預期晶圓廠設備市場的成長速度將與半導體市場一樣快，甚至更快。這是因為產業路線圖變得越來越複雜，晶片製造商需要部署更多的技術才能從一個節點轉移到下一個節點。第三，我們相信應用材料公司的表現將優於晶圓廠設備，因為關鍵技術的轉變是由材料科學和材料工程所推動的，而應用材料公司在材料科學和材料工程領域擁有最廣泛、連接性最強、支持力最強的解決方案組合。第四，我們相信，透過為客戶提供先進的服務解決方案，加速技術從研發到大批量製造的轉移，並優化其晶圓廠的設備性能、產量和成本，我們的服務業務的增長速度可以與設備業務一樣快甚至更快。

By identifying major industry inflections early and making strategic, multiyear investments in our product portfolio and capabilities, Applied Materials is best positioned to benefit from this exciting period of industry innovation and growth. We have, by far, the broadest portfolio of unit process technology to address our customers' high-value problems in transistor, interconnect, 3D memory, specialty devices and heterogeneous integration.

透過及早發現產業的主要變化，並對我們的產品組合和能力進行多年的策略性投資，應用材料公司最有可能從這段令人興奮的產業創新和成長時期中獲益。到目前為止，我們擁有最廣泛的單元製程技術組合，以解決客戶在電晶體、互連、3D 記憶體、專用設備和異質整合方面的高價值問題。

We're able to combine these technologies in unique ways to create co-optimized and integrated solutions, and we are seeing strong pull from our customers to work on higher-value module and device integration problems. At no time in our history have we been closer to our customers. We have built a unique platform for collaborative innovation and commercialization of next-generation technologies. We will significantly expand this collaboration platform with EPIC, enabling Applied and our partners to innovate the way we innovate.

我們能夠以獨特的方式結合這些技術來創建共同優化和整合的解決方案，並且我們看到客戶對解決更高價值的模組和設備整合問題有著強烈的吸引力。在我們的歷史上，我們從未如此接近我們的客戶。我們建立了一個獨特的平台，用於下一代技術的協作創新和商業化。我們將與 EPIC 大幅擴展這項合作平台，使應用材料公司和我們的合作夥伴能夠以我們的方式進行創新。

And our advanced technology-enabled service offerings are seen by customers as increasingly valuable, especially during technology transfer and fab ramp. These advanced services also provide growing subscription revenue streams for Applied.

我們基於先進技術的服務產品被客戶視為越來越有價值，特別是在技術轉移和晶圓廠建設期間。這些先進的服務也為應用材料公司提供了不斷成長的訂閱收入來源。

Moving to our near-term outlook and priorities for the year ahead. While we are mindful of the complex macroeconomic and geopolitical environment, we see demand for Applied's products remaining robust with some changes within the mix. In 2024, we expect demand from our leading-edge foundry-logic customers to be stronger year-on-year underpinned by higher PC, cloud and AI data center spending as well as the initial build-out of gate-all-around nodes.

轉向我們對未來一年的近期展望和優先事項。雖然我們注意到宏觀經濟和地緣政治環境複雜，但我們看到應用材料公司產品的需求仍然強勁，產品組合發生了一些變化。 2024 年，我們預計，由於 PC、雲端和 AI 資料中心支出的增加以及環柵節點的初步建設，我們領先的代工邏輯客戶的需求將比去年同期更加強勁。

We see demand for our ICAPS business being lower, mainly due to softness in the industrial automation and automotive end markets. In DRAM, both pricing and utilization are improving for our customers and we see demand for Applied's products remaining strong. And we believe NAND spending will be up year-on-year, but still far below 2022, and less than 10% of wafer fab equipment spending overall. We expect NAND to remain a lower percentage of the wafer fab equipment mix moving forward.

我們發現 ICAPS 業務的需求正在下降，主要是由於工業自動化和汽車終端市場疲軟。在 DRAM 方面，我們的客戶的定價和利用率都在提高，我們看到對應用材料公司產品的需求仍然強勁。我們認為 NAND 支出將年增，但仍遠低於 2022 年的水平，且佔晶圓廠設備總支出的不到 10%。我們預計，未來 NAND 在晶圓廠設備組合中所佔的比例仍會較低。

In terms of the global trade environment, the October 2023 export control rule changes in the U.S. were primarily focused on alignment with other countries. The rules are complex, and while we are working with the government to clarify certain details, we see no incremental material impact to Applied at this time.

就全球貿易環境而言，美國2023年10月的出口管制規則變化主要著重於與其他國家保持一致。這些規則非常複雜，雖然我們正在與政府合作澄清某些細節，但我們認為目前不會對應用材料產生實質的影響。

As I look ahead, I strongly believe that Applied Materials has the right capabilities, strategy and partnerships. In fiscal 2024, our major focus areas include; driving R&D programs to further differentiate our portfolio and extend our leadership as the key inflections that enable future industry growth; continuing to make operational and supply chain improvements to better serve customers, capture economies of scale and drive productivity across the enterprise; and ensuring that as we scale the company, we continue to reduce our environmental impact in line with Applied's collaborative Net Zero Playbook as announced earlier this year.

展望未來，我堅信應用材料擁有正確的能力、策略和合作關係。在 2024 財年，我們主要的關注領域包括；推動研發項目，進一步區分我們的產品組合，擴大我們的領導地位，作為推動未來產業成長的關鍵轉捩點；持續改善營運和供應鏈，以更好地服務客戶、實現規模經濟並提高整個企業的生產力；並確保隨著公司規模的擴大，我們將繼續按照今年稍早宣布的應用材料公司的合作淨零計畫減少對環境的影響。

Before I hand over to Brice, let me summarize. In fiscal 2023, Applied grew our semiconductor equipment and service businesses, even though our markets were down year-on-year. For calendar 2023, we're on track to outperform the wafer fab equipment market for the fifth year in a row. We believe this outperformance is sustainable, thanks to our strong positions at all the key industry inflections, the strength of our customer collaborations and growing demand for our advanced services.

在交給 Brice 之前，讓我先總結一下。 2023 財年，儘管我們的市場年減，應用材料公司仍實現了半導體設備和服務業務的成長。預計到 2023 年，我們預計將連續第五年超越晶圓廠設備市場。我們相信，這種優異表現是可持續的，這得益於我們在所有關鍵行業拐點上的強勢地位、強大的客戶合作能力以及對我們先進服務日益增長的需求。

And we remain positive about our long-term growth opportunities where we expect semiconductors to grow faster than GDP, wafer fab equipment to grow as fast or faster than semiconductors, Applied to outperform the wafer fab equipment market and our service business to grow as fast or faster than equipment sales.

我們對長期成長機會的樂觀，我們預計半導體的成長速度將超過 GDP，晶圓廠設備的成長速度將與半導體一樣快或更快，應用將超越晶圓廠設備市場，而我們的服務業務的成長速度將與設備銷售一樣快或更快。

Now I'll hand over to Brice.

現在我將麥克風交給布萊斯。

Thank you, Gary. I'd like to start by thanking our teams for delivering record results this year and for making sustainable operational improvements in our inventory management, manufacturing linearity and on-time delivery performance.

謝謝你，加里。首先，我要感謝我們的團隊今年取得的創紀錄業績，並在庫存管理、製造線性和準時交貨績效方面取得了可持續的營運改善。

On today's call, I'll summarize our results for the fiscal year and Q4 as well as provide our guidance for Q1.

在今天的電話會議上，我將總結我們本財年和第四季的業績並提供第一季的指導。

Before going into the results, I'll share my perspective on our unique business model and how it creates attractive returns for our long-term shareholders. Applied creates value by directing nearly $3 billion of annualized R&D into one of the most important markets of the world, semiconductors. Because we have the broadest and deepest equipment portfolio and expertise, we are invited to work closely with our customers as a trusted partner to identify and holistically solve their most valuable technical challenges.

在介紹業績之前，我將先分享我對我們獨特商業模式的看法，以及它如何為我們的長期股東創造可觀的回報。應用材料公司每年投入近 30 億美元的研發資金到全球最重要的市場之一——半導體，從而創造價值。由於我們擁有最廣泛和最深入的設備組合和專業知識，我們受邀作為值得信賴的合作夥伴與客戶密切合作，以識別並全面解決他們最有價值的技術挑戰。

Our R&D spending helps customers modify materials at atomic levels, and on an industrial scale to deliver better semiconductors and end products for strategic growth markets like artificial intelligence. Our unique relationships with our customers provide us with insights into end market and technology road map trends and allow us to focus our spending on projects that have a high probability of commercial adoption and strong financial returns.

我們的研發支出可協助客戶在原子層級和工業規模上修改材料，為人工智慧等策略性成長市場提供更好的半導體和最終產品。我們與客戶的獨特關係為我們提供了對終端市場和技術路線圖趨勢的洞察，並使我們能夠將支出集中在具有高商業應用可能性和豐厚財務回報的專案上。

As a result of the R&D invested in our customers' success, we now have line of sight to market share leadership and growth across the key semiconductor manufacturing inflections, including gate-all-around, backside power, heterogeneous integration, high-bandwidth memory and 3D DRAM.

由於我們為客戶的成功而投入的研發，我們現在可以在關鍵的半導體製造技術拐點中佔據市場份額領先地位並實現增長，包括環柵、背面電源、異構集成、高頻寬記憶體和 3D DRAM。

The strategies we use to help solve challenges in leading-edge logic and memory are also being deployed in the ICAPS markets, where our growth in 2023 more than offset weakness in NAND and leading-edge logic. ICAPS is also a strategic growth market fueled by powerful trends like edge computing and renewable energy.

我們用來幫助解決尖端邏輯和記憶體挑戰的策略也正在 ICAPS 市場中部署，我們在 2023 年的成長足以抵消 NAND 和尖端邏輯的疲軟。 ICAPS 也是一個策略性成長市場，受到邊緣運算和再生能源等強大趨勢的推動。

Applied's focused and effective R&D investments have led to fantastic results for our shareholders. Over the past 10 years, we've grown revenue at a compound rate of over 13%, non-GAAP EPS at nearly 30% and free cash flow at 33%. We've increased our quarterly dividend per share at a compound rate of more than 12% over this period. And earlier this year, we announced our belief that our free cash flow can support doubling our previous dividend per share over the next several years.

應用材料公司專注且有效的研發投資為我們的股東帶來了豐厚的回報。在過去的 10 年裡，我們的營收複合成長率超過 13%，非 GAAP 每股盈餘成長率接近 30%，自由現金流成長率為 33%。在此期間，我們以超過 12% 的複合成長率增加了每股季度股息。今年早些時候，我們宣布，我們相信我們的自由現金流可以支持我們在未來幾年內將每股股息翻倍。

Looking ahead to the next 10 years, we expect semiconductors to grow faster than GDP. We expect the equipment market to grow as fast or faster than semiconductors due to increasing technical complexity. We expect Applied's equipment business to outgrow the market due to our strong portfolio of products and solutions that are squarely targeted at the highest value inflections. And we expect our services business to grow as fast or faster than our equipment business as we help our customers generate increasing value from the industry's largest installed base of more than 48,000 tools.

展望未來10年，我們預期半導體的成長速度將超過GDP。由於技術複雜性不斷增加，我們預計設備市場的成長速度將與半導體一樣快甚至更快。我們預計，應用材料公司的設備業務將超越市場，因為我們擁有強大的產品和解決方案組合，並且直接瞄準最高價值轉折點。我們預計，隨著我們幫助客戶從業內最大的超過 48,000 個工具的安裝基數中創造越來越多的價值，我們的服務業務將比我們的設備業務增長得一樣快甚至更快。

Next, I'll summarize our fiscal year results. On a year-over-year basis, revenue increased nearly 3% to a record $26.5 billion. Non-GAAP gross margin increased 20 basis points to 46.8% as our value-based pricing and cost-improvement actions more than offset the impact of inflation. Non-GAAP OpEx increased 13% to $4.69 billion, with the majority of the increase in R&D. Non-GAAP operating profit declined 2% to $7.72 billion, and non-GAAP operating margin decreased 140 basis points to 29.1%. Non-GAAP EPS increased 4.5% to $8.05 per share.

接下來，我將總結我們的財政年度業績。與去年同期相比，營收成長了近 3%，達到創紀錄的 265 億美元。由於我們基於價值的定價和成本改進措施抵消了通貨膨脹的影響，非公認會計準則毛利率增加了 20 個基點至 46.8%。非公認會計準則營運支出成長 13% 至 46.9 億美元，其中大部分成長來自研發。非公認會計準則營業利潤下降 2% 至 77.2 億美元，非公認會計準則營業利潤率下降 140 個基點至 29.1%。非公認會計準則每股收益成長 4.5% 至每股 8.05 美元。

We generated record operating cash flow of $8.7 billion and record free cash flow of $7.6 billion. Shareholder distributions were approximately $3.16 billion. We paid $975 million in cash dividends and used approximately $2.2 billion to repurchase 18 million shares at an average price below $123 per share. We remain committed to returning 80% to 100% of free cash flow to shareholders over time and returned 87% over the past 3 years.

我們創造了 87 億美元的創紀錄營運現金流和 76 億美元的創紀錄自由現金流。股東分配約31.6億美元。我們支付了 9.75 億美元的現金股息，並使用約 22 億美元以平均每股低於 123 美元的價格回購了 1,800 萬股。我們仍然致力於隨著時間的推移向股東返還 80% 至 100% 的自由現金流，過去 3 年的回報率為 87%。

Now I'll summarize our Q4 results. On a year-over-year basis, net sales of $6.72 billion were slightly lower. Non-GAAP EPS rose 4% to a record $2.12. Non-GAAP gross margin increased 130 basis points to 47.3% and non-GAAP OpEx grew 8.8% to $1.19 billion, with around 2/3 of the increase in R&D.

現在我將總結我們第四季的業績。與去年同期相比，淨銷售額 67.2 億美元略有下降。非公認會計準則每股收益上漲 4%，達到創紀錄的 2.12 美元。非 GAAP 毛利率增加 130 個基點至 47.3%，非 GAAP 營運支出成長 8.8% 至 11.9 億美元，其中約 2/3 的成長來自研發。

Turning to the segments. Semi Systems revenue declined 3% year-over-year to $4.88 billion, and segment non-GAAP operating margin was flat at 36.9%. For the full year, Semi Systems grew revenue by 5% and outperformed the market, delivering record net sales overall and in foundry-logic as well as in implant, packaging, metal deposition and CVD.

轉向各個部分。半導體系統業務收入較去年同期下降 3% 至 48.8 億美元，分部非 GAAP 營業利潤率持平於 36.9%。全年來看，Semi Systems 的營收成長了 5%，表現優於市場，在整體、代工邏輯以及注入、封裝、金屬沉積和 CVD 方面均實現了創紀錄的淨銷售額。

Applied Global Services revenue grew 4% year-over-year in Q4 to a record $1.47 billion, and segment non-GAAP operating margin grew 100 basis points to 29.3%. For the full year, AGS revenue increased 3%, demonstrating how the underlying growth drivers of the business more than compensated for the trade restrictions enacted in October of 2022, along with fab utilization rates that declined over the past year.

應用全球服務部門第四季營收年增 4%，達到創紀錄的 14.7 億美元，部門非 GAAP 營業利潤率成長 100 個基點，達到 29.3%。全年而言，AGS 收入成長了 3%，顯示業務的潛在成長動力足以彌補 2022 年 10 月實施的貿易限制以及過去一年晶圓廠利用率下降的影響。

AGS growth is a function of 3 things: the number of tools in the installed base; the increase in service intensity as process complexity increases; and the number of subscription agreements, which increased revenue per tool. In 2023, we increased the installed base by 5%. And we increased the percentage of tools under service agreement by 3 percentage points to 16,600. An important catalyst for AGS is that we are adding entirely new kinds of subscription agreements, including sensor and AI-based solutions in areas like tool matching for fab ramp acceleration.

AGS 成長由三個因素決定：安裝基數中的工具數量；隨著流程複雜性的增加，服務強度也隨之增加；以及訂閱協議的數量，這增加了每個工具的收入。 2023年，我們的安裝基數增加了5%。我們將服務協議下的工具百分比提高了 3 個百分點，達到 16,600 套。 AGS 的一個重要催化劑是我們正在增加全新類型的訂閱協議，包括用於晶圓廠加速生產的工具匹配等領域的感測器和基於人工智慧的解決方案。

In Q4, we signed a unique environmental services agreement under which a large number of process tools and subfab resources are connected to applied eco-efficiency hardware and software products, all delivered as a service that helps our customers reduce electricity consumption and carbon emissions. In addition, we recently signed our largest global comprehensive service agreement ever.

在第四季度，我們簽署了一項獨特的環境服務協議，根據該協議，大量的製程工具和廠下資源將與應用的生態效率硬體和軟體產品相連，所有這些都以服務的形式提供，幫助我們的客戶減少電力消耗和碳排放。此外，我們最近簽署了迄今為止最大的全球綜合服務協議。

Finally, AGS continues to produce more than enough operating profit to pay the company's dividend.

最後，AGS 繼續產生足夠的營業利潤來支付公司的股息。

Moving now to Display. Q4 revenue increased to $298 million, and segment non-GAAP operating margin increased to 22.5%. We continue to expect the display cycle and Applied's Display business to improve modestly in 2024. And we look forward to our opportunity to drive OLED technology into the laptop and tablet markets in 2025.

現在移至顯示。第四季營收增至 2.98 億美元，分部非 GAAP 營業利潤率增至 22.5%。我們繼續預計顯示週期和應用材料的顯示業務將在 2024 年略有改善。

Turning to cash flows in Q4. We generated nearly $1.6 billion in operating cash flow and nearly $1.25 billion in free cash flow. We distributed nearly $968 million to shareholders, including $268 million in dividends and $700 million in buybacks. We repurchased 5 million shares at an average price of $138.54.

轉向第四季的現金流。我們產生了近 16 億美元的營運現金流和近 12.5 億美元的自由現金流。我們向股東分配了近 9.68 億美元，其中包括 2.68 億美元的股息和 7 億美元的回購。我們以平均價格 138.54 美元回購了 500 萬股。

Next, I'll discuss our business in China. As Gary indicated, we do not expect an incremental material impact from the recently updated trade rules. Our business in China grew as expected in Q4, largely due to an increase in trailing-edge DRAM shipments that contributed close to $500 million in revenue. In Q4, our overall revenue in China was 44% of company sales. For the full year, revenue in China was 27% of sales, with Semi Systems sales in China composing 20% and AGS and Display sales in China, the remaining 7%.

接下來我將討論我們在中國的業務。正如加里所指出的，我們預計最近更新的貿易規則不會帶來實質的增量影響。我們在中國的業務在第四季度如預期般成長，這主要歸功於後端 DRAM 出貨量的增加，貢獻了近 5 億美元的收入。第四季度，我們在中國的整體營收占公司銷售額的44%。全年而言，中國市場收入佔銷售額的27%，其中半導體系統在中國市場的銷售額佔20%，AGS和顯示器在中國市場的銷售額佔剩餘的7%。

We believe equipment demand in China is likely to remain healthy for an extended period because China's domestic manufacturing capacity remains significantly below its share of worldwide semiconductor demand. In addition, while nameplate fab capacity is growing in China, effective capacity is likely to remain below industry averages for some time until product and process yields gradually improve.

我們認為，中國的設備需求可能在較長時間內保持健康，因為中國國內製造產能仍遠低於其在全球半導體需求的份額。此外，雖然中國晶圓廠的產能正在成長，但在產品和製程良率逐步提高之前，有效產能可能仍將在一段時間內低於產業平均。

Now I'll share our guidance for Q1. We expect our revenue to be $6.47 billion, plus or minus $400 million, and we expect non-GAAP EPS of $1.90, plus or minus $0.18. Within this outlook, we expect Semi Systems revenue to be $4.7 billion with ongoing strength in trailing edge DRAM. We expect AGS revenue to be $1.46 billion, and Display revenue should be around $235 million. We expect non-GAAP gross margin to be approximately 47%, and non-GAAP operating expenses to be around $1.23 billion. we are modeling a tax rate of 13%.

現在我將分享我們對第一季的指導。我們預計營收為 64.7 億美元，上下浮動 4 億美元，預計非 GAAP 每股收益為 1.90 美元，上下浮動 0.18 美元。在此展望下，我們預計 Semi Systems 的營收將達到 47 億美元，且後端 DRAM 將持續保持強勁成長。我們預計 AGS 收入為 14.6 億美元，Display 收入應在 2.35 億美元左右。我們預計非 GAAP 毛利率約為 47%，非 GAAP 營業費用約為 12.3 億美元。我們模擬的稅率是13%。

Thank you. And now, Mike, let's begin the Q&A.

謝謝。現在，麥克，我們開始問答環節。

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

謝謝，布萊斯。 (操作員指令) 操作員，請開始。

Certainly. (Operator Instructions) Our first question comes from the line of Stacy Rasgon from Bernstein Research.

當然。 （操作員指示）我們的第一個問題來自伯恩斯坦研究公司的 Stacy Rasgon。

I'm sure you saw the news report that came out pretty much coincident with your earnings release, from Reuters, that talked about a potential investigation into your China shipments to SMIC. It also mentioned, though, that you have already disclosed on October -- in October '22 a potential subpoena.

我相信您已經看到了路透社與您發布收益報告同時發布的新聞報道，該報道談到了對您在中國向中芯國際發貨的產品可能進行的調查。不過，它也提到，你已經在 10 月——即 22 年 10 月披露了一份潛在的傳票。

I was just wondering. Can you tell us like what is going on here? What have you actually disclosed around potential legal issues related to your shipments in China around the export controls at this point? And I mean, I don't know what you can comment on this report or not, but any comments that you might have on the result would be helpful. I don't think you had much time to put it in the script.

我只是想知道。能告訴我們這裡發生了什麼事嗎？目前，對於你們向中國出口的貨物在出口管制方面可能遇到的法律問題，你們實際上披露了哪些資訊？我的意思是，我不知道您對這份報告有何評論，但您對結果的任何評論都會有所幫助。我認為你沒有太多時間將其放入腳本中。

Stacy, it's Brice. Thanks for the question. We did disclose last year in our K that we received a subpoena from the U.S. Attorney's Office and they are requesting information related to certain shipments to China. What we would say is we're fully cooperating with the government on this matter. And of course, we remain committed to complying to all of the trade rules. And as you can imagine, because this is an ongoing legal matter, we can't add to any of the comments that are out there at this point, but it's been a regular disclosure for us.

史黛西，我是布萊斯。謝謝你的提問。我們去年確實在 K 中披露過，我們收到了美國檢察官辦公室的傳票，他們要求提供有關某些運往中國的貨物的資訊。我們想說的是，我們將在這問題上全力配合政府。當然，我們仍然致力於遵守所有貿易規則。你可以想像，因為這是一個正在進行的法律問題，我們無法對目前存在的任何評論作出補充，但這對我們來說是一個常規披露。

So there's nothing new though? This is all related to whatever was already going on?

那麼，沒什麼新鮮事嗎？這一切都與已經發生的事情有關嗎？

Yes. I just can't add any comment to this, but yes, we did disclose this last October, I believe.

是的。我對此無法發表任何評論，但我相信我們確實在去年 10 月披露了這一點。

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

我們的下一個問題來自美國銀行的 Vivek Arya。

You mentioned that you expect China demand to stay healthy. And I'm trying to understand what that means because you did have these incremental DRAM shipments. So I guess the first specific question is, what are you assuming for those DRAM shipments in your January quarter outlook?

您提到預計中國需求將保持健康。我試圖理解這意味著什麼，因為你確實有這些增量的 DRAM 出貨量。所以我想第一個具體問題是，您對 1 月季度 DRAM 出貨量的預期是什麼？

And should we understand from your China strength comment that your China sales conceptually, could say at least flattish next year? Or could they even grow? Just high level, what does stay strong mean to you as it comes to the sales impact in fiscal '24?

並且，從您對中國市場實力的評論中，我們是否可以理解為，從概念上講，明年您在中國的銷售至少會持平？或者它們還能生長嗎？只是高層次，就 24 財年的銷售影響而言，保持強勁對您來說意味著什麼？

Vivek, yes, so for Q1 -- in particular, as you highlighted, we did see elevated shipments to China in Q4. It was 44% of our sales mix. In Q1, we expect it to be elevated again. We'll continue to ship DRAM products at a high level in Q1. And when we think about the mix for China for the rest of '24, we're not ready to give a guide yet, but most of this business is ICAPS business. And it's been very strong growth for '22 and '23 for us.

Vivek，是的，對於第一季而言——特別是，正如您所強調的，我們確實看到第四季度對中國的出貨量有所增加。它占我們銷售額的44%。我們預計第一季該數字將再次上升。我們將在第一季繼續以高水準出貨 DRAM 產品。當我們考慮24年剩餘時間中國的業務組合時，我們還沒有準備好給予指導，但大部分業務是ICAPS業務。對我們來說，22年和23年的成長非常強勁。

For '24, we expect it to be a strong -- still strong. It may not be as strong as it was in '23, but China is the largest component to that. So again, we're not ready to guide that, but in our Q1 guide, you'll still see an elevated mix for China.

對於24年，我們預計它會很強勁——仍然很強勁。它可能不如23年那麼強大，但中國是其中最大的組成部分。因此，我們還沒有準備好對此做出指導，但在我們的第一季指南中，您仍然會看到中國市場的比例上升。

Vivek, this is Gary. Just also what Brice said on the prepared remarks, was for the full year, China was 27%. Actually, it's down a little bit, but really pretty much same ZIP Code as it was in the previous year. And as we go through the year, we would think it gets more back to the historical averages.

維韋克，這是加里。正如布里斯在準備好的演講中所說的那樣，全年來看，中國佔了 27%。實際上，它有所下降，但郵政編碼實際上與前一年基本相同。我們認為，隨著時間的推移，它會逐漸回到歷史平均值。

And our next question comes from the line of Chris Caso from Wolfe Research.

我們的下一個問題來自 Wolfe Research 的 Chris Caso。

Just another question on the ICAPS, just unpacking some of what you said. So perhaps you could talk to the non-China part of the ICAPS business. It sounds like that's where you're seeing a little bit of incremental weakness, again, in line with some of your customers.

這只是關於 ICAPS 的另一個問題，只是解讀您所說的一些內容。所以也許您可以談談 ICAPS 業務的非中國部分。聽起來，您再次看到了一些漸進式的疲軟，這與您的一些客戶的情況一致。

And then I guess along with that, with what you just said is China coming back to the historic averages, is that a function of just other business growing as opposed to China going down?

然後我想，正如您剛才所說，中國經濟正在回到歷史平均水平，這是不是其他行業在成長，而不是中國經濟在下滑的結果？

Okay. Thanks, Chris. On the second part, I think the reason China comes back to its normal averages, around 30%, it's just because the elevated DRAM shipments will normalize after Q1. So we had high DRAM in Q4. We expect that in Q1, and that should slow down after that and it will be mostly ICAPS business again.

好的。謝謝，克里斯。關於第二部分，我認為中國恢復到正常平均值（30％左右）的原因只是因為DRAM出貨量的增加將在第一季後恢復正常。因此我們在第四季的 DRAM 產量很高。我們預計，在第一季度，這一成長將會放緩，並將再次以 ICAPS 業務為主。

And then thinking of ICAPS in general, what I would say again is we had significant growth in '22; significant, even higher growth in '23. So when we think long term, we're expecting mid- to high single digits of growth for ICAPS across several years.

然後總體考慮 ICAPS，我想再說一遍，我們在 22 年實現了顯著成長； 23年將實現顯著甚至更高的成長。因此，當我們進行長期考慮時，我們預計 ICAPS 在未來幾年內將實現中高個位數的成長。

And to your point, looking right now this year, Q1 is actually a strong guide for ICAPS. But we do see lower utilization. We have seen some pushouts from different customers as they re-time some of their fab projects. And we did see the lower utilization in Q4.

正如您所說，從今年目前的情況來看，第一季實際上是 ICAPS 的強大指引。但我們確實看到利用率較低。我們看到不同客戶在重新安排部分晶圓廠專案時推遲了一些生產。我們確實看到第四季的利用率較低。

So we do think that Q -- or '24 will be a strong year for ICAPS, it may not be as strong as '23. But again, it's much higher than it was in '22 because of the growth cycle that it's gone through.

因此，我們確實認為，2024 年對 ICAPS 來說將是強勁的一年，但可能不如 2023 年強勁。但由於經歷了成長週期，它現在比22年的水平要高得多。

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

我們的下一個問題來自高盛的Toshiya Hari。

Gary, I had a question on '24 WFE. You gave really good color by application in your prepared remarks, leading-edge, foundry and logic and NAND up. DRAM, it sounded like you're thinking flattish and ICAPS may be down a little bit. Curious if you can perhaps quantify how you're thinking about these different applications and perhaps the overall WFE market into next year?

加里，我有一個關於‘24 WFE’的問題。您在準備好的評論中透過應用、前沿技術、代工和邏輯以及 NAND 給出了非常好的闡述。 DRAM，聽起來你認為它會持平，而 ICAPS 可能會下降一點。好奇您是否可以量化您對這些不同應用程式以及明年整體 WFE 市場的看法？

And more importantly, you highlighted how you guys have outperformed the market for 5 consecutive years. Is it fair to assume that '24 could be the sixth consecutive year given what you see in your backlog today?

更重要的是，你們強調了你們如何連續五年跑贏大盤。從您今天所看到的積壓情況來看，是否可以合理地假設 24 年將是連續第六年？

Toshiya, I would say that relative to Applied's performance, I'm very optimistic. In leading foundry-logic, we're really well positioned for the major inflections that our customers will be ramping gate-all-around and backside power delivery. Gate-all-around, we'll see some revenue in '24, but that's going to be ramping more significantly in the future years. And backside power, we'll see some revenue also in '24, but also a significant ramp in the coming years.

Toshiya，我想說，相對於應用材料公司的表現，我非常樂觀。在領先的代工邏輯方面，我們已做好準備迎接客戶將要推動的環繞閘極和背面電源傳輸的重大轉變。總體而言，我們將在24年看到一些收入，但未來幾年收入將更加顯著成長。而對於後勁方面，我們在24年也會看到一些收入，未來幾年也會有顯著的成長。

And each one of those inflections is a $1 billion incremental opportunity for Applied, and we can capture more. We're on track to capture more than 50% of the overall spend for those major inflections. So really good position in foundry-logic. For Applied overall, as we said in the prepared remarks, we think that business will be healthy in '24.

對於應用材料公司來說，上述每一個轉變都意味著 10 億美元的增量機會，而我們還可以獲得更多。我們預計將獲得這些重大變化帶來總支出的 50% 以上。因此，我們在代工邏輯方面的地位確實很好。對於應用材料公司整體而言，正如我們在準備好的評論中所說，我們認為 2024 年的業務將會健康。

DRAM is another case where we're really well positioned for the major inflections. We've gained 10 points of overall DRAM share in the last 10 years. And again, going forward, we feel like we're well positioned. We have design wins for those future inflections in DRAM, and we see opportunities to continue to drive share there.

DRAM 是另一個我們已為重大轉折做好準備的案例。在過去的 10 年裡，我們的整體 DRAM 份額增加了 10 個百分點。再次，展望未來，我們感覺我們已經做好了充分準備。我們在 DRAM 未來發展的設計上取得了勝利，並且我們看到了繼續提高市場份額的機會。

In packaging, that business is $1 billion for us today. And we're in a very good position for all of the different architecture inflections in packaging. And there, again, we have an opportunity to gain over 50% share in packaging inflections as that goes forward.

目前，包裝業務為我們帶來了 10 億美元的收入。我們在包裝領域所有不同的架構變化方面都處於非常有利的地位。隨著時間的推移，我們再次有機會在包裝領域獲得超過 50% 的份額。

So all of those areas that we talked about, the leading-edge foundry-logic, DRAM, packaging, all of those areas are very strong for us. And as we said, ICAPS will be weaker in '24, but those opportunities, those markets will offset some of the weakness in ICAPS.

所以，我們所討論的所有領域，包括前沿的代工邏輯、DRAM、封裝，所有這些領域對我們來說都非常強大。正如我們所說，ICAPS 在 24 年將會變得更弱，但這些機會、這些市場將抵消 ICAPS 的一些弱點。

And Brice, I don't know if you want to add anything on the overall market?

布萊斯，我不知道您是否想為整體市場做些補充？

No, I think that's good. We just -- It's better for us to give you insights into each of the end markets and tell you what we see, and that's the best way we can communicate what we see going forward.

不，我認為那很好。我們只是——我們最好向您提供對每個終端市場的見解，並告訴您我們所看到的，這是我們傳達未來所見的最佳方式。

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

我們的下一個問題來自 TD Cowen 的 Krish Sankar。

This is [Stephen] calling on behalf of Krish. I guess the question I have is on gross margins. Just given the comments about normalization of China revenues in the coming quarters and also sort of the ICAPS dynamics, what are sort of the certainly longer-term or medium-term implications to gross margins if the mix of China goes down?

我是 [Stephen]，代表 Krish 來電。我想我的問題是關於毛利率的。鑑於有關未來幾季中國收入正常化的評論以及 ICAPS 動態，如果中國的收入結構下降，對毛利率會有什麼長期或中期影響？

Thanks for the question. Yes, thank you. So for gross margins, first, I would say to investors, we're still committed to what we had modeled, although we delayed it for a year. So we're modeling 48% to 48.5%. That's what we're committed as an interim goal to raising our margins.

謝謝你的提問。是的，謝謝。因此，對於毛利率，首先，我想對投資者說，儘管我們將其推遲了一年，但我們仍然致力於實現我們所模擬的目標。因此我們的模型是 48% 到 48.5%。這就是我們致力於提高利潤率的中期目標。

As you highlighted, in Q4, we had 47.3%. It was buoyed by the 44% mix of China. If you strip that away, it's probably 100 basis points worth of uplift. Last quarter, we highlighted that our underlying gross margin today, if not benefited or impacted by something specific in the market, is probably 46.6% or 46.7%. And we do expect to make gradual improvements toward that goal in 2025 as we move forward. That will be primarily continued progress in value pricing as we work to offset high inflation impacts across all of our expenses and then cost reductions.

正如您所強調的，在第四季度，我們達到了 47.3%。其主要得益於中國 44% 的市佔率。如果去掉這個數字，它可能相當於 100 個基點的提升。上個季度，我們強調，如果不受到市場特定因素的受益或影響，我們今天的基本毛利率可能是 46.6％ 或 46.7％。我們確實期望在 2025 年逐步實現這一目標。這將主要是價值定價的持續進步，因為我們致力於透過所有費用來抵消高通膨的影響，然後降低成本。

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

我們的下一個問題來自摩根大通的 Harlan Sur。

The key services business continues to drive strong year-over-year trends. Great to see the subscription attach continuing to rise. Utilizations are still depressed across your customer base, but have they stabilized, especially across advanced, foundry-logic and memory?

關鍵服務業務持續推動強勁的同比趨勢。很高興看到訂閱量持續上漲。您的客戶群的利用率仍然較低，但是是否已經穩定下來，特別是在先進的、代工邏輯和記憶體方面？

And then just as a quick one, operating margins in AGS are still about 200 basis points below the 30%, 31% that you drove for 6 consecutive quarters through fiscal Q3 of last year. Are inflationary pressures still the biggest factor? Or is it mix related? Is your 200-millimeter ICAPS shipments to continue to remain strong? And any line of sight on getting back into that sort of low 30% range on AGS?

然後簡單說一下，AGS 的營業利潤率仍然比去年第三財季連續 6 個季度實現的 30%、31% 低約 200 個基點。通膨壓力仍是最大因素嗎？或與混合有關？你們的 200 毫米 ICAPS 出貨量會繼續保持強勁嗎？有沒有跡象顯示 AGS 會重新回到 30% 左右的低點？

Okay, Harlan. Thanks for the question. First question on stabilized utilization rates. I think in general, I would say no because we did see lower utilization rates in ICAPS, as I just highlighted, in Q4. And so there is some digestion there in ICAPS at this point.

好的，哈蘭。謝謝你的提問。第一個問題是關於穩定利用率。我認為總體而言，我會說不是，因為正如我剛才強調的那樣，在第四季度我們確實看到 ICAPS 的利用率較低。目前 ICAPS 正在進行一些消化工作。

Otherwise, as I look across the rest of the segments, if you think about the memory components and you think about leading logic, I would say that's been fairly stable.

否則，當我查看其餘部分時，如果您考慮內存組件並考慮領先邏輯，我會說它相當穩定。

On the operating margin side for AGS, and thanks for highlighting the business, because we did grow this year despite the setback at removing some of the China tools from our ability to service going forward. That's really what set us back from a margin perspective and shrank the business in the year and removed some of the smaller customer better margin products that we had.

關於 AGS 的營業利潤率方面，感謝您對業務的關注，因為儘管在未來的服務能力中移除一些中國工具遭遇挫折，但我們今年確實實現了成長。這確實從利潤率的角度阻礙了我們，導致我們今年的業務縮減，並且取消了一些針對小客戶、利潤率較高的產品。

But going forward, we will be improving margins in that business, and we're committed to that low double-digit growth rate for our services business. And again, just the components of that will be a growing installed base, a more intense tool need for services and spares and information services and then the ability to have the win-win with subscription agreements with our customers for those services.

但展望未來，我們將提高該業務的利潤率，並致力於維持服務業務的低兩位數成長率。再說一遍，其中的組成部分包括不斷增長的安裝基礎，對服務、備件和資訊服務更強烈的工具需求，以及透過與客戶簽訂服務訂閱協議實現雙贏的能力。

And our next question comes from the line of Srini Pajjuri from Raymond James.

我們的下一個問題來自 Raymond James 的 Srini Pajjuri。

My question is on ICAPS as well. Gary, I think in the past, you talked about ICAPS being about 1/2 of your business. And given the slowdown you're expecting, a couple of things. I guess you talked about China slowing down a bit in the short term. How do you see the non-China ICAPS business over the next 12 months? And where do you see ICAPS versus the other business mix, I guess, exiting, let's say, fiscal '24?

我的問題也是關於 ICAPS 的問題。加里，我想過去你曾說過 ICAPS 約佔你業務的一半。考慮到您預期的經濟放緩，有幾件事。我想你談到的是中國經濟短期內會放緩。您如何看待未來 12 個月非中國 ICAPS 業務的發展？您認為 ICAPS 與其他業務組合相比，在 24 財政年度會處於什麼位置？

Srini, thanks for the question.. So ICAPS is 1/2 of the total foundry-logic business. So historically, that's -- it's been in that ZIP Code. So foundry-logic is about 1/3; ICAPS is about 1/3; memory is about 1/3, with the compute memory, DRAM being stronger than storage memory NAND, so that's the mix.

Srini，謝謝你的提問。所以從歷史上看，它一直位於那個郵政編碼中。因此代工邏輯約佔1/3； ICAPS約為1/3；記憶體大約佔 1/3，其中計算記憶體 DRAM 比儲存記憶體 NAND 強，所以這就是混合。

And I would expect that, that mix will continue going forward. I mean in any point in time, you could have some small changes in the mix, but we see foundry-logic still remaining very strong going forward with that about 2/3 of our overall business split between the leading edge and ICAPS.

我希望這種組合能夠持續下去。我的意思是在任何時間點，你都可能會在組合中做出一些小的改變，但我們看到代工邏輯在未來仍然保持非常強勁的勢頭，我們整體業務的約 2/3 分佈在前沿技術和 ICAPS 之間。

So if you think about the big inflections, there's AI for high-performance computing, but there's a lot of growth in edge computing across many different industries. So when we look at the markets, we think that mix is going to be pretty much similar to what we've talked about before: 1/3 foundry-logic, leading; 1/3 ICAPS; 1/3 memory.

因此，如果你考慮大的轉折點，你會發現有用於高效能運算的人工智慧，但許多不同行業的邊緣運算都有很大的成長。因此，當我們觀察市場時，我們認為這種組合將與我們之前談論的非常相似：1/3 代工邏輯，領先； 1/3 ICAPS； 1/3內存。

And then did you have another question? Or Brice, did you want to add anything?

您還有其他問題嗎？或是 Brice，想加什麼嗎？

Yes. I'll just add on. Just, Srini, just a reminder for investors here. Our longer-term view is mid- to high single digits for ICAPS as well as the whole semi component. But mid- to high single digits and we do expect that to be consistent for China. We do expect that to be consistent for non-China. And we saw -- as we communicated in our prior quarter, we did see several geographies growing faster than China. So this is definitely a global market, not just a China market, and China isn't even 1/2 of the market as we communicated.

是的。我只是補充一下。只是，Srini，只是提醒這裡的投資者。我們對 ICAPS 以及整個半導體組件的長期預期是中高個位數。但成長率將在中高個位數之間，我們確實預期中國的成長速度將保持穩定。我們確實期望這對中國以外的國家也是一致的。正如我們在上一季所溝通的那樣，我們確實看到幾個地區的成長速度比中國更快。所以這絕對是一個全球市場，而不僅僅是中國市場，而且正如我們所傳達的，中國甚至還不到全球市場的一半。

And then as far as the slowness goes or any lighter year, what I would say is our guide in Q1 includes an ICAPS that's very strong and continues to be very strong. So the way we're thinking about it is '22 was very strong, '23 was even stronger. We may take a breath here with a lower utilization, but we expect this market to continue to grow.

然後就經濟放緩或任何較輕的年份而言，我想說的是，我們在第一季的指南包括非常強勁且持續強勁的 ICAPS。所以我們的想法是，22 年非常強勁，23 年甚至更強。由於利用率較低，我們可能會稍事休息，但我們預計這個市場將繼續成長。

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

我們的下一個問題來自瑞銀的提摩西‧阿庫裡。

I know you guys have been pretty reticent to provide a 2023 WFE number. Everyone else's, first, they said 75 -- well, first, they said 70, then they said 75, and now they're saying 80, but it really can't be 80 because if you add up all 5 suppliers, it's more like flat year-over-year. So can you give a sense of what you think WFE will be this year? I mean I do agree even if it's 90 billion, you're going to still gain share this year. But -- so I guess the first part of the question is, what is the baseline this year for WFE?

我知道你們一直不願意提供 2023 年 WFE 的數字。其他人的，首先，他們說是 75 — — 嗯，首先，他們說是 70，然後他們說 75，現在他們說是 80，但實際上不可能是 80，因為如果你把所有 5 家供應商加起來，它更像是同比持平。那麼您能否簡單說一下今年的 WFE 會是什麼樣子呢？我的意思是，我確實同意，即使是 900 億美元，今年你的份額仍然會增加。但是——所以我想問題的第一部分是，今年 WFE 的基準是什麼？

And then I want to find out what's the message on 2024? I hear the message about mix changing. But are you -- but are you committing to WFE being up next year? Or you're not willing to make that commitment yet?

然後我想知道 2024 年的信息是什麼？我聽到了有關混合變化的消息。但你——但你承諾明年 WFE 會繼續舉辦嗎？還是您還不願意做出這個承諾？

Tim, thanks for the question. So for '23, we've heard all of those numbers also, and we just feel it's best for us to report what we see from our seat. And for us, '23 was a growth year. We highlighted as we went through the last few quarters, how strong DRAM and ICAPS were and how having exposure to those 2 markets and a leadership position in those markets helped us offset weakness that were in some of the other markets, NAND and leading logic primarily. So definitely, everybody can do the math. They can see what our numbers will be with the guide and that should help with your calculation of what the overall market would be.

提姆，謝謝你的提問。因此，對於 23 年，我們也聽到了所有這些數字，我們只是覺得最好報告我們從實際情況中看到的情況。對我們來說，23年是成長的一年。我們在過去幾季中強調了 DRAM 和 ICAPS 的強勁表​​現，以及進入這兩個市場並在這些市場中佔據領導地位如何幫助我們抵消了其他一些市場（主要是 NAND 和領先邏輯）的疲軟。所以，毫無疑問，每個人都可以算出來。他們可以透過指南看到我們的數字，這將有助於您計算整體市場狀況。

And then for '24, we're not calling the total. Again, we're trying to characterize what we're seeing in each market. We do think DRAM will continue to be strong. We think NAND will come up off of a low position. We think leading logic will grow through the year, especially as gate-all-around begins to ship. And we think ICAPS, it's strong in Q1 still, but ICAPS may take a breath with lower utilization. So we'll have to see how that plays out. And then packaging was strong in '23, and we expect that to continue.

對於 24 ，我們不會計算總數。再次，我們試圖描述我們在每個市場看到的情況。我們確實認為 DRAM 將持續保持強勢。我們認為 NAND 將從低位回升。我們認為領先的邏輯技術將在今年內實現成長，特別是當環柵技術開始出貨時。我們認為 ICAPS 在第一季仍表現強勁，但隨著利用率降低，ICAPS 可能會稍微喘息。所以我們必須看看事情會如何發展。包裝業在23年表現強勁，我們預期這種勢頭將持續下去。

And our next question comes from the line of Joe Quatrochi from Wells Fargo.

我們的下一個問題來自富國銀行的喬‧夸特羅奇 (Joe Quatrochi)。

I was wondering if you could help us understand just relative to that long-term mid- high single-digit growth for ICAPS. What did it grow in fiscal '23? And then as we look into '24, how do you think about just leading-edge recovery of spending offsetting the decline in ICAPS?

我想知道您是否可以幫助我們了解 ICAPS 的長期中高個位數成長情況。 23財年成長了多少？然後，當我們展望24年時，您如何看待前沿支出復甦能夠抵消ICAPS的下降？

What was the second part? Joe, can you repeat the second part?

第二部分是什麼？喬，你能重複第二部分嗎？

Yes, just the recovery of leading-edge foundry-logic offsetting the weakness in ICAPS?

是的，光是尖端代工邏輯的復甦就抵銷了 ICAPS 的弱點嗎？

Okay. So on the first part, I think we're still hearing different estimates of what semiconductors might be in 2023 from a growth perspective. What we've been saying from an equipment perspective is the growth was very high. So we described that in '22 at 40% plus. And we've said it was faster in '23 from an equipment perspective.

好的。因此，就第一部分而言，我認為從成長角度來看，我們仍然聽到 2023 年半導體市場的不同估計。從設備角度來看，我們一直在說成長非常高。所以我們在 22 年就描述了 40% 以上的情況。我們已經說過，從設備角度來看，23 年的速度更快。

So the actual semiconductor is obviously not growing that fast, but the equipment market, in preparing for the growth going forward, that's the approximate rate that we see. And then on the leading-logic side, and offsetting ICAPS, again, our Q1 guidance -- actually, ICAPS is very strong, continues to be strong in our Q1 from a sales perspective. We do see lower utilization. We have seen some pushouts. So we're expecting that it won't be as strong a year as it was in '23, although still very strong.

因此，實際的半導體成長速度顯然沒有那麼快，但設備市場在為未來的成長做準備時，我們看到的大致速度就是如此。然後在領先邏輯方面，以及抵消 ICAPS，再次，我們的第一季指引 - 實際上，ICAPS 非常強勁，從銷售角度來看，在我們的第一季度繼續保持強勁。我們確實看到利用率較低。我們已經看到了一些推遲的情況。因此，我們預計今年的表現不會像23年那麼強勁，儘管它仍然非常強勁。

And where we'll see some offset is growing leading logic because leading logic has been lower the past few quarters. And we expect that to pick up through the year as new node investments, especially with gate-all-around, start to ship in earnest.

我們會看到一些抵銷是領先邏輯的成長，因為過去幾季領先邏輯一直較低。我們預計，隨著新節點投資（尤其是環柵技術）開始積極出貨，這一趨勢將在今年內回升。

Yes. The other thing I would add is that, as I said earlier, we're really well positioned for the major inflections. If you look at foundry-logic, gate-all-around spending starts to ramp in '24. We've been gaining share in DRAM, and we're well positioned for those inflections.

是的。我想補充的另一件事是，正如我之前所說，我們已經為應對重大轉變做好了充分準備。如果你看一下代工邏輯，你會發現環繞閘極的支出在'24年開始增加。我們的 DRAM 份額不斷擴大，並且已為這些變化做好了準備。

And as Brice said, packaging was strong at '23. We believe it will still be strong at '24, and we're positioned to capture more than 50% of the spend in all of those different packaging architectures as they ramp in '24. So again, all of those areas will continue to be strong for Applied in '24 and beyond.

正如 Brice 所說，23 年的包裝實力很強。我們相信它在2024年仍將保持強勁，隨著2024年所有這些不同封裝架構的擴張，我們有能力佔據其中超過50%的支出。所以，對於應用材料公司來說，所有這些領域在2024年及以後都將繼續保持強勁勢頭。

And our next question comes from the line of Joseph Moore from Morgan Stanley.

我們的下一個問題來自摩根士丹利的約瑟夫·摩爾。

Great. You've talked about seeing some of these trends in ICAPS that have you thinking that there might be some deceleration. And you talked about China being good in DRAM and DRAM coming down. The China portion of ICAPS, should we be thinking about the utilization of those foundries to the extent that we've seen that? It was already low and they were spending a lot, the utilization's coming down. They still seem to be spending a lot. Do you see that as a lead indicator for your part of the business?

偉大的。您談到在 ICAPS 中看到的一些趨勢讓您認為可能會出現一些減速。您剛才談到中國在 DRAM 領域表現良好，而 DRAM 領域正在下滑。對於 ICAPS 的中國部分，我們是否應該考慮這些代工廠的使用率？它本來就很低，而且他們花費很多，利用率正在下降。他們似乎仍花費很多。您是否認為這是您所在業務領域的領先指標？

Joe, thanks for the question. I think utilization in China and utilization for ICAPS in general did come down a little bit this cycle. That's definitely visible from a global perspective. When we think about what's happening in China, we have a broad customer base that are serving all of the different end markets. And so our perspective is -- our perspective is they are working on ramping their yields and coming up to mature product yields over time. So I think this is partly just a statement of where they are in the maturity curve of each of these product -- or projects.

喬，謝謝你的提問。我認為，本週期內中國的利用率以及 ICAPS 的整體利用率確實有所下降。從全球角度來看，這是顯而易見的。當我們思考中國正在發生的事情時，我們擁有廣泛的客戶群，他們服務於所有不同的終端市場。因此，我們的觀點是——我們的觀點是，他們正在努力提高產量，並隨著時間的推移提高成熟產品的產量。所以我認為這只是他們在每個產品或專案的成熟度曲線中所處位置的一個陳述。

When we think about the market as a total, it's a long list of customers. It's a number of fab projects that are being installed across the country. We think about the total capacity that's being put in place and the goal of being self-sufficient from a chip production perspective, and they're a long way from that, but we think they're committed to that as a whole. They have incentives in place to do it. So we view that market will be a stable part of our portfolio going forward.

當我們把市場看作一個整體時，它有一個很長的客戶名單。這是全國各地正在建造的多個晶圓廠項目。我們考慮了目前已經投入的總產能以及從晶片生產角度實現自給自足的目標，他們距離這個目標還有很長的路要走，但我們認為他們總體上致力於實現這一目標。他們有動力去做這件事。因此我們認為該市場將成為我們未來投資組合中穩定的一部分。

Yes, Joe, this is Gary. Also, as Brice said, if you look at the efficiency of the spending, it's going to be less, especially with those new customers for many years. So the wafer starts versus the output, the yields are going to be much less from a device standpoint. So again, that's going to impact the overall output. And we think, again, the gap there with their domestic demand will keep that market healthy for a number of years.

是的，喬，這是加里。此外，正如布萊斯所說，如果你看看支出的效率，你會發現支出將會減少，尤其是對於那些多年的新客戶而言。因此，從設備的角度來看，晶圓的起始產量與產出相比，產量將會低得多。所以，這又會影響整體產出。我們認為，那裡與國內需求的差距將使該市場在未來幾年保持健康發展。

Yes. Joe, just to finish the -- my thoughts. Sorry, I missed one point. We do think the lower utilization, and we've seen some pushouts in the ICAPS business, this is a global statement. We do think that that's a signal that it will be slightly less than the roaring growth we've seen the last 2 years. And that's why we're saying it will be a strong year. It just won't be as strong as what we saw in '22 and '23.

是的。喬，我只是想說完我的想法。抱歉，我忽略了一點。我們確實認為利用率較低，我們已經看到 ICAPS 業務的一些延遲，這是一個全球性的聲明。我們確實認為，這是一個訊號，表明成長速度將略低於過去兩年的迅猛成長。這就是為什麼我們說這將是強勁的一年。它只是不會像我們在22年和23年看到的那麼強勁。

And our next question comes from the line of Sidney Ho from Deutsche Bank.

我們的下一個問題來自德意志銀行的 Sidney Ho。

Great. I want to double-click on the comments on your DRAM business. If I just look at your Semi Systems revenue for DRAM this year, it's tracking to grow 10% to 20% and even exceed the last peak year in '21. But the market is still down quite a bit. The question I have is how much of this outperformance comes from the market being maybe a lot better than we thought versus maybe share gains that you may have? Are you seeing anything structural that drives the capital intensity of that -- your business to be higher?

偉大的。我想雙擊有關您的 DRAM 業務的評論。如果我只看今年半導體系統的 DRAM 收入，它將成長 10% 至 20%，甚至超過 21 年的上一個高峰。但市場仍然低迷不少。我的問題是，這種優異表現有多少來自於市場可能比我們想像的要好得多，而不是你可能獲得的股價上漲？您是否看到任何結構性因素推動您的業務資本密集度的提高？

And my last part of it is just to clarify. You talked about expecting demand for your DRAM products to remain strong, which are assuming roughly flat in '24. Is that also true for the DRAM market in terms of WFE spend?

我的最後一部分只是為了澄清。您談到預計 DRAM 產品的需求將保持強勁，預計 24 年需求將基本持平。就 WFE 支出而言，DRAM 市場也是如此嗎？

Yes. Thanks for the question, Sidney. So we do think the DRAM business was strong this year, partially strong because of some of the shipments to China customers where the process they're running was recently clarified to be within the rules, within the allowed trade rules. So that's a partial explanation.

是的。謝謝你的提問，西德尼。因此，我們確實認為今年的 DRAM 業務表現強勁，部分原因是部分運往中國客戶的貨物最近被澄清為符合規定，符合允許的貿易規則。這僅是部分解釋。

But I think we -- when we think of that market, we think that it actually looks like a normal year, even without those China shipments, that the DRAM market was fairly strong from an equipment perspective. And that matches recent years where a lot of the spending is technology upgrades, not necessarily new capacity, and we expect that to continue over time.

但我認為，當我們考慮那個市場時，我們認為它實際上看起來像是一個正常的年份，即使沒有中國的出貨量，DRAM 市場從設備角度來看也相當強勁。這與近年來的情況相符，其中許多支出用於技術升級，而不一定是新增產能，我們預計這種情況將持續下去。

Yes. Sidney, just talking with customers, certainly, the forecast from them, for compute memory, is stronger than storage memory. And if you look just at one example on an AI server, the DRAM content there is much higher than an industry standard server. So again, just I've spent a lot of time on the road this last 3 months and the customers are pretty optimistic about DRAM longer term and compute memory demand.

是的。西德尼，剛才與客戶交談，當然，他們對計算記憶體的預測要強於儲存記憶體。如果您只看 AI 伺服器上的一個例子，那裡的 DRAM 含量比行業標準伺服器高得多。所以，過去 3 個月我花了很多時間在路上，客戶對 DRAM 的長期發展和計算記憶體需求非常樂觀。

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

我們的下一個問題來自 Stifel 的 Brian Chin。

One of your peers recently stated that AI could account for $6 billion of WFE next year, I think more than double the contribution of this year. I know it's difficult to benchmark against these figures. But can you provide a reference point on how you see AI augmenting WFE spending this year, next year or even beyond?

您的一位同行最近表示，人工智慧明年可能會為 WFE 貢獻 60 億美元，我認為這將是今年貢獻的兩倍多。我知道很難與這些數字進行比較。但是，您能否提供一個參考點，說明您如何看待人工智慧將在今年、明年甚至以後增加 WFE 支出？

And just kind of maybe a two-parter, but just a clarification, but advanced foundry-logic spending, it's clearly dipped in calendar second half. But tying in your earlier comments, it sounds like you expect foundry-logic to improve off these lower levels in calendar first half of next year. Is that correct?

可能分為兩部分，但需要澄清的是，先進代工邏輯支出在下半年明顯下降。但結合您先前的評論，聽起來您預計代工邏輯將在明年上半年從這些較低水平上得到改善。那正確嗎？

Okay. Thanks, Brian. On the first part for AI, last cycle, we provided some data points that I think are the relevant data points. We believe about 5% of our WFE is supporting AI workloads. That's not just gen AI, but all AI workloads. And we did highlight that we expect that to grow at probably a 30% or higher CAGR going forward. And I think that's fair.

好的。謝謝，布萊恩。在上個週期的 AI 第一部分中，我們提供了一些我認為是相關的數據點。我們相信大約 5% 的 WFE 支援 AI 工作負載。這不僅僅是一代人工智慧，而是所有人工智慧工作負載。我們確實強調，我們預計未來該領域的複合年增長率可能達到 30% 或更高。我認為這是公平的。

So whatever WFE number you're using, I think if you use 5% and use your 30% growth rate, that's what we think in our equations, and that would be true for leading logic and that would be true for HBM on the DRAM side.

因此，無論您使用什麼 WFE 數字，我認為如果您使用 5% 並使用 30% 的成長率，這就是我們在方程式中所想的，這對於領先邏輯來說是正確的，對於 DRAM 方面的 HBM 也是如此。

And then on the second question, it's really the advanced logic, we're expecting to accelerate in the second half of '24. In our first half guidance -- sorry, in our first quarter guidance, it will really be another quarter of strong ICAPS and strong DRAM. Note not -- it will be similar in strength from a leading logic and NAND to prior quarter. So you still have that dynamic in Q1. So it would really be second half that we see improving leading logic.

然後關於第二個問題，這確實是一種先進的邏輯，我們預計在24年下半年將會加速。在我們的上半年指引中 - 抱歉，在我們的第一季指引中，這實際上將是另一個強勁的 ICAPS 和 DRAM 的季度。請注意——領先邏輯和 NAND 的實力將與上一季相似。因此，在第一季度，您仍然擁有這種動態。因此，我們真正看到領先邏輯在下半年得到改善。

And our next question comes from the line of Charles Shi from Needham & Company.

我們的下一個問題來自 Needham & Company 的 Charles Shi。

I think you mentioned in your prepared remarks, you expect WFE to grow as fast or faster than semiconductors, which kind of implies you're thinking WFE intensity, which probably is already at the roughly 20-year high this year to go -- there may be upside to go higher.

我記得您在準備好的發言中提到過，您預計 WFE 的增長速度將與半導體一樣快甚至更快，這在某種程度上意味著您認為 WFE 的強度今年可能已經達到了大約 20 年來的最高水平——可能還有上升空間。

So really, I just want to understand your thinking behind where could the upside be? For example, I think your largest customer in Taiwan is expecting their capital intensity from the current 40-something percent level to go to what they think is a normalized level in the 30s. How do I reconcile your statement versus their statement?

所以實際上，我只是想了解您認為上行潛力在哪裡？例如，我認為你們在台灣的最大客戶預計他們的資本密集度將從目前的40%左右上升到他們認為的30%左右的正常水平。我該如何調和你的陳述與他們的陳述？

Okay. Thanks, Charles. It's hard to -- we probably won't compare with anybody else's comments. But from our perspective, it has been growing. One of the reasons it's been growing is because ICAPS, that particular business, the mature product technologies, as we've described before, there used to be available used facilities and available used equipment and it's really no longer the case. The industry is growing. And without that, just new investments have to be made in wafer starts and capacity, and that's raised the overall intensity level.

好的。謝謝，查爾斯。這很難——我們可能不會與任何人的評論進行比較。但從我們的角度來看，它一直在成長。它不斷增長的原因之一是，因為 ICAPS 這個特定的業務，擁有成熟的產品技術，正如我們之前所描述的，過去有可用的二手設施和可用的二手設備，但現在情況已經不再如此了。該行業正在成長。如果沒有這些，就必須對晶圓的啟動和產能進行新的投資，這會提高整體強度水準。

When we think to the other types of equipment processes, DRAM, NAND and leading logic, we expect those to be more intensive with more steps from an equipment perspective, requiring new capabilities and new technologies. And that's actually what our R&D is engaged in. So it's more than intuition that we expect that intensity to go up over time.

當我們考慮其他類型的設備流程，DRAM、NAND 和領先邏輯時，我們預期從設備角度來看，這些流程將更加密集，步驟更多，需要新的能力和新技術。這實際上就是我們的研發所從事的工作。

One moment for our next question.

請稍候，回答下一個問題。

Yes. And operator, we have time for 2 more. Thank you.

是的。接線生，我們還有時間再做 2 件事。謝謝。

Certainly. Our next question is a follow-up question from the line of Stacy Rasgon from Bernstein Research.

當然。我們的下一個問題是來自伯恩斯坦研究公司的 Stacy Rasgon 的後續問題。

I wanted to explore just a little more the trade-off between the leading edge and the ICAPS next year. So I know you said ICAPS is down, foundry-logic or leading edge foundry-logic, strong, but you said it would sort of offset some of it. Are you thinking that the overall foundry-logic, at least from a WFE standpoint, is up, down, or flat in '24 versus the '23 levels given those dynamics?

我想進一步探討明年前沿技術和 ICAPS 之間的權衡。所以我知道您說 ICAPS 下降了，而代工邏輯或前沿代工邏輯則強勁，但您說它會抵消其中的一些影響。您是否認為，至少從 WFE 的角度來看，考慮到這些動態，24 年的整體代工邏輯與 23 年的水平相比是上升、下降還是持平？

Stacy, it's Brice. Yes, we didn't make a call on that. You kind of heard probably the components. I know probably everybody wants us to make a call. But what we're saying is we have a very strong Q1 still in ICAPS. The dynamics in Q1, assuming things play out as we're forecasting, will be similar to Q4. You'll have a strong DRAM market, you'll have a strong ICAPS market. But we know that there have been some pushouts and there is lower utilization in ICAPS. So we're expecting that market to not be the same -- as strong as it was in '23.

史黛西，我是布萊斯。是的，我們並沒有對此作出決定。您可能已經聽說過這些組件。我知道可能每個人都希望我們打個電話。但我們要說的是，ICAPS 的第一季表現仍然非常強勁。假設事情按照我們預測的那樣發展，第一季的動態將與第四季類似。你將擁有一個強大的 DRAM 市場，你將擁有一個強大的 ICAPS 市場。但我們知道，已經出現了一些延遲的情況，且 ICAPS 的使用率較低。因此，我們預期市場將不再像23年那樣強勁。

When we flip and look at leading logic, leading logic is weak in Q4, and it's weak in Q1 also, that same dynamic. And we know that new technologies will be ramping, including gate-all-around. So we're expecting that to help throughout the year. Whether that's bigger or smaller than, whatever happens with ICAPS, we can't tell yet, but we'll just have to let that play out.

當我們翻轉並查看領先邏輯時，領先邏輯在 Q4 中很弱，在 Q1 中也很弱，同樣的動態。我們知道新技術將會不斷湧現，包括環柵技術。因此我們希望這對全年有所幫助。無論 ICAPS 發生什麼，它都會更大還是更小，我們現在還無法判斷，但我們只能讓它發揮作用。

It sounds like neither one is dominating over the other, though. Is that a fair way to characterize it?

但聽起來，似乎沒有哪一方佔據主導地位。這是公平的描述方式嗎？

Yes. I don't think you can make -- yes, it's not easy to make a call at this point.

是的。我認為你無法做出決定——是的，現在做出決定並不容易。

Then our final question. One moment our final question. And for our final question, we have the line of Jed Dorsheimer from William Blair.

這是我們的最後一個問題。稍等片刻，這是我們最後一個問題。我們的最後一個問題來自威廉布萊爾公司的傑德·多斯海默。

Just a quick two-part. I just want to confirm the pushouts that you started to see in ICAPS, do you -- can you comment on the end market? Was that auto related?

只需快速分為兩部分。我只是想確認您在 ICAPS 中開始看到的推出情況，您能對終端市場發表評論嗎？那與汽車有關嗎？

And then second, the investigation. I know you don't want to get into any detail or can't there, but it seems like that's also in the ICAPS. Can you confirm those 2?

第二，調查。我知道您不想或不能深入細節，但這似乎也在 ICAPS 中。能確認這兩個嗎？

Yes. On the second -- Jed, thanks for the questions. On the second, I just can't add any commentary to what we previously discussed with respect to the legal matter.

是的。第二個問題——傑德，謝謝你的提問。關於第二點，我無法對我們之前討論的法律問題發表任何評論。

On the first one, there's definitely mixed inventory situations and mixed reports on all the different ICAPS markets. Actually, where we would point as probably being the slowest at this point is industrial.

首先，各個 ICAPS 市場上的庫存狀況和報告肯定是混雜的。實際上，我們認為目前最慢的可能是工業領域。

What -- just to add a comment for you. On the auto side, I would say that it may be slower from a unit perspective, but because of the density of chips in EVs and even newer cars, we're not expecting much weakness in the auto market. So I guess that's the way I would think of that.

什麼——只是為您添加一條評論。在汽車方面，我想說從單位角度來看可能會比較慢，但由於電動車甚至新型汽車的晶片密度，我們預計汽車市場不會出現太大的疲軟。所以我想這就是我的想法。

Okay. Thanks, Jed, for your question. And Brice, with that, would you like to give us your closing thoughts?

好的。謝謝傑德的提問。布萊斯，您能給我們講一下最後的想法嗎？

Thanks, Mike. From a year-end and closing perspective, I really like the sustainable operational progress our teams have made. Our Semi Systems business grew in a down year, and our services business also had a record year, proving its resilience just like it did in 2019.

謝謝，麥克。從年終和結業的角度來看，我非常喜歡我們的團隊所取得的永續營運進度。我們的半導體系統業務在低迷的一年中實現了成長，而我們的服務業務也創下了創紀錄的一年，就像 2019 年一樣證明了其韌性。

The R&D investments we've been making in collaboration with our customers put us in a great position for the next wave of inflection spending. We now have a line of sight to market share of over 50% across gate all-around, backside power and advanced packaging. At the same time, we're increasing gross margins and generating strong free cash flow, and this sets us up for increasing shareholder distributions.

我們與客戶合作的研發投資使我們在下一波拐點支出中佔據了有利位置。現在，我們在閘極周圍、背面電源和先進封裝領域的市佔率已超過 50%。同時，我們正在提高毛利率並產生強勁的自由現金流，這為我們增加股東分配做好了準備。

I hope I get to see many of you at the Wells Fargo Conference in Southern California. In the meantime, for those of you in the U.S., we hope you enjoy a safe and happy Thanksgiving.

我希望能在南加州富國銀行會議上見到你們。同時，我們希望身在美國的你們度過一個安全快樂的感恩節。

Now Mike, thank you, and let's close the call.

現在，謝謝麥克，讓我們結束通話。

All right. Great. 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 05:00 o'clock Pacific Time.

好的。偉大的。謝謝，布萊斯。我們感謝大家今天的參與。今天的電話會議重播將於太平洋時間 05:00 點之前在我們網站的 IR 頁面上提供。

Thank you for your continued interest in Applied Materials.

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，感謝大家參加今天的會議。該計劃確實結束了。您現在可以斷開連線。再會。