Alpha and Omega Semiconductor Ltd (AOSL) 2022 Q2 法說會逐字稿

Good evening. Thank you for attending today's Alpha and Omega Semiconductor Fiscal Q2 2022 Earnings Call. My name is Bethany, and I will be your moderator for today's call. (Operator Instructions)

晚安.感謝您參加今天的 Alpha and Omega Semiconductor 2022 年第二季財報電話會議。我叫貝瑟尼，我將擔任今天電話會議的主持人。 （操作員說明）

I would now like to pass the conference over to our host, Gary Dvorchak with Alpha and Omega. Please go ahead.

現在我想將會議交給我們的主持人 Gary Dvorchak 以及 Alpha 和 Omega。請繼續。

Good afternoon, everyone, and welcome to Alpha and Omega Semiconductor's conference call to discuss fiscal 2022 second quarter financial results. I'm Gary Dvorchak, Investor Relations representative for AOS. With me today are Dr. Mike Chang, our CEO; Stephen Chang, our President; and Yifan Liang, our CFO. This call is being recorded and broadcast live over the web. A replay will be available for 7 days following the call via the link in the Investor Relations section of our website.

大家下午好，歡迎參加 Alpha 和 Omega Semiconductor 的電話會議，討論 2022 財年第二季財務業績。我是 AOS 投資者關係代表 Gary Dvorchak。今天與我在一起的有我們的執行長 Mike Chang 博士；史蒂芬·張，我們的總裁；和我們的財務長梁一帆。這次通話正在錄製並透過網路直播。電話會議後 7 天內可透過我們網站投資者關係部分的連結進行重播。

Our call will proceed as follows: Mike will begin with strategic highlights, then Stephen will provide business updates and a detailed segment report. After that, Yifan will review the financial results and provide guidance for the March quarter. Finally, we'll have the question-and-answer session.

我們的電話會議將按如下方式進行：麥克將從策略要點開始，然後史蒂芬將提供業務更新和詳細的分部報告。此後，一帆將審查財務業績並為三月季度提供指導。最後，我們將進行問答環節。

The earnings release was distributed over the wire services today, February 7, 2022, after the close of the market. The release is also posted on the company's website. Our earnings release and this presentation include certain non-GAAP financial measures. We use non-GAAP measures because we believe they provide useful information about our operating performance that should be considered by investors in conjunction with the GAAP measures that we provide. A reconciliation of these non-GAAP measures to comparable GAAP measures is included in the earnings release.

該財報於今天（2022 年 2 月 7 日）收盤後透過通訊社發布。新聞稿也發佈在該公司的網站上。我們的收益發布和本簡報包括某些非公認會計準則財務指標。我們使用非公認會計準則衡量標準是因為我們相信它們提供了有關我們經營業績的有用信息，投資者應將這些信息與我們提供的公認會計準則衡量標準結合起來考慮。這些非公認會計準則衡量指標與可比較公認會計準則衡量指標的調整表包含在收益發布中。

We remind you that during this conference call, we will make certain forward-looking statements, including discussions of the business outlook and financial projections. These forward-looking statements are based on management's current expectations and involve risks and uncertainties that could cause our actual results to differ materially from such expectations. For a more detailed description of these risks and uncertainties, please refer to our recent and subsequent filings with the SEC. We assume no obligation to update the information provided in today's call.

我們提醒您，在本次電話會議中，我們將做出某些前瞻性陳述，包括對業務前景和財務預測的討論。這些前瞻性陳述是基於管理階層目前的預期，涉及可能導致我們的實際結果與此類預期有重大差異的風險和不確定性。有關這些風險和不確定性的更詳細描述，請參閱我們最近和隨後向 SEC 提交的文件。我們沒有義務更新今天電話會議中提供的資訊。

Now I will turn the call over to our CEO, Dr. Mike Chang, to provide strategic highlights. Mike?

現在我將把電話轉給我們的執行長張麥克博士，他將提供策略要點。麥克風？

Thank you, Gary. I would like to welcome everyone to today's call. It is a pleasure to be speaking with all of you again today. To begin, I would like to briefly summarize some of the major achievements from last year and outline why we believe we have achieved a critical milestone in our operations and are in a very strong position to deliver growth and value to our shareholders in the years to come.

謝謝你，加里。我謹歡迎大家參加今天的電話會議。很高興今天再次與大家交談。首先，我想簡要總結去年的一些主要成就，並概述為什麼我們相信我們已經在營運中實現了一個重要的里程碑，並且處於非常有利的地位，可以在未來幾年為我們的股東帶來成長和價值。

Looking back, calendar year 2021 was an exceptional year for AOS, both in terms of our business execution as well as our financial results. Due to the global semiconductor supply shortage, we focused on executing our three-pronged production capacity strategy. First, we made a significant investment to expand our capacity and further enhance our R&D capabilities at our Oregon facility.

回顧過去，2021 年對 AOS 來說都是非凡的一年，無論是我們的業務執行還是財務表現。由於全球半導體供應短缺，我們專注於實施三管齊下的產能策略。首先，我們進行了大量投資，以擴大我們的產能並進一步增強我們在俄勒岡州工廠的研發能力。

Second, the joint venture in Chongqing completed Phase 1 of its capacity ramp in September, and in December, we sold 3.2% of our equity interest in the JV for approximately $26 million. The strategic intent of this transaction was to reduce our shareholding below 50% to allow the JV more flexibility to one, raise capital as a more independent company; two, accelerate further expansion plans; and three, pave the way for an eventual IPO on Shanghai's STAR market or S-T-A-R market. Additionally, I am delighted to see that less than 2 months after our initial sales transaction, the JV successfully raised $80 million from outside investors as part of Phase 2 of its expansion plan, which the JV expects to complete sometime in 2023.

其次，重慶合資企業於 9 月完成了產能提升的第一階段，並於 12 月以約 2,600 萬美元的價格出售了合資企業 3.2% 的股權。此次交易的策略意圖是將我們的持股比例減少到50%以下，以使合資公司更加靈活，作為一家更獨立的公司籌集資金；二、加快進一步擴張計劃；第三，為最終在上海科創板或S-T-A-R市場IPO鋪路。此外，我很高興看到，在我們首次銷售交易後不到2 個月，合資企業成功從外部投資者籌集了8000 萬美元，作為其擴張計劃第二階段的一部分，該合資企業預計將於2023年某個時候完成。

To see the first part of our original plan for the JV Company come to fruition has been a joy. One of the core tenets of our three-pronged capacity strategy is ensuring our supply security, Not only do we need to expand our capacity to meet our aggressive growth business plan, but we also need to manage unforeseen risks associated with today's uncertain world, such as natural disasters and geopolitical risks through diversification. In this regard, the JV Company will be one of our important foundry partners. And on the flip side, AOS will continue to be a key customer of the JV Company. Lastly, but not the least, we are also actively expanding our relationships with multiple third-party foundry partners for additional capacity to meet the increasing demand for our products.

看到我們最初的合資公司計劃的第一部分得以實現，我們感到很高興。我們三管齊下的產能策略的核心原則之一是確保我們的供應安全，我們不僅需要擴大產能以滿足我們積極成長的業務計劃，而且我們還需要管理與當今不確定的世界相關的不可預見的風險，例如透過多樣化來應對自然災害和地緣政治風險。就此而言，合資公司將成為我們重要的代工夥伴之一。另一方面，AOS 將繼續成為合資公司的主要客戶。最後但並非最不重要的一點是，我們也積極擴大與多個第三方代工合作夥伴的關係，以獲得額外的產能，以滿足對我們產品日益增長的需求。

Another dimension of our business that has undergone significant change over the past year that may not be as obvious is the quality of the customers that we are serving. As an example, in our Computing business, we sell to the world's leading PC brand. In our Communications segment, we sell to the #1 smartphone brand in the United States, the #1 smartphone brand in Korea and all the leading smartphone OEMs in China. In our other business segments, we sell to the #1 graphics card maker, the #1 gaming console manufacturer, the #1 global home appliance manufacturer and the #1 power tools provider.

我們業務的另一個方面在過去一年中發生了重大變化，但可能不那麼明顯，那就是我們所服務的客戶的品質。舉個例子，在我們的運算業務中，我們向世界領先的個人電腦品牌銷售產品。在我們的通訊部門，我們向美國排名第一的智慧型手機品牌、韓國排名第一的智慧型手機品牌以及中國所有領先的智慧型手機原始設備製造商銷售產品。在我們的其他業務領域，我們向排名第一的顯示卡製造商、排名第一的遊戲機製造商、全球排名第一的家用電器製造商和排名第一的電動工具供應商銷售產品。

In summary, Tier 1 OEMs now make up the majority of our revenue mix. The effect of this dynamic makes our business much more resilient to downturns because during difficult economic conditions, consumer demand typically decline faster for lower-tier brands than it does for premium brands. In addition, due to the uncertainty created by COVID pandemic, we have worked tirelessly with our customers over the past 2 years to avoid interruptions to their production lines. As a result of our efforts, our customers trust and respect for us as a strategic partner has deepened and our relationship with them has never been stronger.

總之，一級原始設備製造商現在構成了我們收入組合的大部分。這種動態的影響使我們的業務更能抵禦經濟衰退，因為在困難的經濟條件下，低線品牌的消費者需求通常比高端品牌下降得更快。此外，由於新冠疫情帶來的不確定性，過去兩年我們與客戶不懈地合作，以避免他們的生產線中斷。經過我們的努力，客戶對我們作為策略夥伴的信任和尊重不斷加深，我們與他們的關係也變得更加牢固。

Also in 2021, through multiple well-planned initiatives and diligent precise execution, our Power IC business finally has emerged to become a significant portion of our business, representing nearly $200 million annual revenue run rate. This greatly helped AOS pursue our utmost goal of providing system level total power solutions to our customers, going beyond our traditional pattern of just offering component sales. This not only offers more convenience and value to our customers but also improves our margin, while enabling stickier design wins.

同樣在2021年，透過多項精心策劃的舉措和勤奮精確的執行，我們的電源IC業務終於成為我們業務的重要組成部分，年收入運行率接近2億美元。這大大幫助 AOS 超越我們僅提供組件銷售的傳統模式，實現為客戶提供系統級整體電源解決方案的終極目標。這不僅為我們的客戶提供了更多便利性和價值，還提高了我們的利潤，同時實現更具黏性的設計勝利。

2021 was also a record year in each of our business segments financially. A few years ago, we set out to achieve a target annual revenue of $600 million in calendar year 2021. Today, our business has the product portfolio, customer relationships and the production capacity to deliver well over our original revenue target. In addition, because end market demand was strong across the board, we strategically optimized our product mix, which resulted in gross margin expansion in each consecutive quarter, with the December quarter coming in at 36.7% on a non-GAAP basis, which is a record.

2021 年也是我們每個業務部門的財務創紀錄的一年。幾年前，我們制定了在 2021 年實現 6 億美元年收入的目標。此外，由於終端市場需求全面強勁，我們策略性地優化了產品組合，導致毛利率連續每個季度都在增長，其中按非公認會計準則計算，12 月份季度的毛利率為36.7%，這是一個非常高的水平。

All these factors significantly contributed to us crossing $1 quarterly non-GAAP EPS milestone in the last quarter. This quarter, we are happy to report non-GAAP earnings per share of $1.20 which further reinforce our company's strong earnings power of $4 to $5 annual EPS.

所有這些因素都對我們在上個季度突破 1 美元季度非 GAAP 每股盈餘里程碑做出了重大貢獻。本季度，我們很高興地報告非 GAAP 每股收益為 1.20 美元，這進一步增強了我們公司每年 4 至 5 美元每股收益的強勁盈利能力。

In summary, we achieved record results in 2021, thanks to our long-term planning and execution, our extensive product portfolio driven by our R&D capabilities and by serving as a dedicated and trusted partner to our customers. Our confidence in our business model and the strategic positioning has never been greater than it is today. Now with most of our revenue coming from Tier 1 OEMs, I am proud to say that we believe we have crossed the chasm as an established company and are now a leading global power semiconductor supplier.

總而言之，我們在 2021 年取得了創紀錄的業績，這要歸功於我們的長期規劃和執行、由我們的研發能力驅動的廣泛產品組合以及作為客戶專注且值得信賴的合作夥伴。我們對我們的商業模式和策略定位的信心從未像現在這樣大。現在，我們的大部分收入來自一級原始設備製造商，我很自豪地說，我們相信我們已經跨越了作為一家老牌公司的鴻溝，現在是全球領先的功率半導體供應商。

I want to thank our customers, business partners and shareholders for their support and confidence in the company. I also want to acknowledge our employees for an outstanding job and for staying focused and engaged with our customers, while we navigated this challenging macro environment, especially in the midst of the continuing adversity of the pandemic. I'm proud of the way we have come together while placing our employees' health and their safety at the center of our objectives in achieving our success.

我要感謝我們的客戶、業務夥伴和股東對公司的支持和信任。我還要感謝我們的員工，他們在應對這一充滿挑戰的宏觀環境時，特別是在疫情持續的逆境中，做出了出色的工作，並保持專注並與客戶保持密切聯繫。我對我們團結一致的方式感到自豪，同時將員工的健康和安全置於我們成功的目標的中心。

As we look to the future, we now have our sights set on actively planning and marching towards $1 billion annual revenue, with much stronger and a more sophisticated R&D capability and the supply chain operations, and with most of our customer base consisting of the world's leading OEMs in the market that we serve. We are excited about our growth trajectory.

展望未來，我們的目標是積極規劃，向年收入10億美元邁進，擁有更強大、更成熟的研發能力和供應鏈運營，我們的客戶群大部分來自全球我們所服務的市場中領先的原始設備製造商。我們對我們的成長軌跡感到興奮。

Now I will turn the call over to Stephen for the updates on our business and the detailed segment report. Stephen?

現在我將把電話轉給史蒂芬，了解我們業務的最新情況和詳細的分部報告。史蒂芬？

Thank you, Mike, and good afternoon, everyone. I will start with an update on our business and then provide color on our segment results. In the December quarter, demand for our products remained extremely strong, and we continue to set new records in our revenues and profitability. We continue to work closely with our customers to strategically allocate our production capacity to help them avoid disruptions in the midst of a difficult environment and at the same time, optimized for revenue and gross margins. While we do see some signs that historical seasonal patterns are beginning to return, which is healthy, at least for the remainder of this year, we expect global demand for semiconductors to remain stronger than the industry's ability to meet it.

謝謝麥克，大家下午好。我將從我們業務的最新情況開始，然後為我們的部門結果提供顏色。在十二月季度，對我們產品的需求仍然非常強勁，我們的收入和獲利能力繼續創下新紀錄。我們繼續與客戶密切合作，策略性地分配我們的產能，幫助他們避免在困難的環境中中斷，同時優化收入和毛利率。雖然我們確實看到一些跡象表明歷史季節性模式開始回歸，這是健康的，至少在今年剩餘時間內是如此，但我們預計全球對半導體的需求仍將強於該行業滿足需求的能力。

Regarding our capacity plans, we continue to focus on strategically strengthening and diversifying our production capacity. Our Oregon fab is currently undergoing a $100 million R&D facilities upgrade and capacity expansion project, which is expected to be completed in the December quarter of 2022. Equipment has already been ordered and the clean room expansion is already in progress. When completed, we estimate the incremental revenue based on this new capacity to be approximately $70 million annually.

關於我們的產能計劃，我們繼續專注於策略性地加強和多元化我們的產能。我們的俄勒岡工廠目前正在進行耗資 1 億美元的研發設施升級和產能擴建項目，預計將於 2022 年第 1 季完成。竣工後，我們預計基於這項新產能的增量收入每年約為 7,000 萬美元。

As Mike already mentioned, we reduced our equity ownership in our joint venture fab in Chongqing below the controlling threshold of 50%, effectively allowing the joint venture to legally separate its operation as its own independent entity. Yifan will provide more details on this in his section of this call. This transaction marks an important step for both us and our joint venture. For the JV, this means greater flexibility in future capital raises to expand its manufacturing capabilities. For AOS, it allows us to focus our attention towards executing our Oregon fab expansion plans and further diversifying our supply chain across other foundry partnerships. In the years to come, we are looking forward to continuing to work closely with the JV as one of its key customers.

正如麥克已經提到的，我們將我們在重慶合資工廠的股權減少到50%以下的控制門檻以下，有效地允許合資公司在法律上將其業務獨立為獨立實體。一帆將在本次電話會議的部分中提供更多詳細資訊。此次交易對我們和我們的合資企業來說都標誌著重要的一步。對於合資企業來說，這意味著未來籌集資金以擴大其製造能力的靈活性更大。對於 AOS 來說，它使我們能夠集中精力執行俄勒岡州晶圓廠擴張計劃，並透過其他代工合作夥伴關係進一步實現供應鏈多元化。在未來的幾年裡，我們期待繼續與該合資企業作為其主要客戶之一密切合作。

Finally, we are focusing on expanding partnerships and increasing wafer supply from existing foundries as well as bringing on new foundries. In summary, these efforts are all part of our long-term strategy for sustainable growth. With current challenges in the semiconductor industry, especially the global capacity shortages, we are thankful to own and control much of our supply chain, while also being strategic about our risk management and capital allocation decisions by diversifying our supply chain with contract foundries. We believe this strategy provides the right balance of flexible capacity that allows us to be nimble during periods of industry overcapacity and economic slowdowns.

最後，我們致力於擴大合作夥伴關係、增加現有代工廠的晶圓供應以及引進新的代工廠。總而言之，這些努力都是我們永續成長長期策略的一部分。面對當前半導體產業的挑戰，特別是全球產能短缺，我們很高興擁有並控制著我們的大部分供應鏈，同時也透過與合約代工廠實現供應鏈多元化來對我們的風險管理和資本分配決策採取策略性措施。我們相信，這項策略提供了靈活產能的適當平衡，使我們能夠在產業產能過剩和經濟放緩時期保持靈活性。

Now let me drill down into each of our business segments. Unless otherwise noted, the following figures refer to the December quarter of 2021. Let's start with Computing. Revenue was up 35.9% year-over-year and up 11.9% sequentially. This segment represented 45.5% of our total revenue. As expected, end demand for our products was strong. To best allocate capacity, we shifted resources and production to support the Computing segment, especially notebook and desktop applications as well as graphic cards.

現在讓我深入探討我們的每個業務部門。除非另有說明，以下數據均指 2021 年 12 月季度。營收年增 35.9%，季增 11.9%。該部門占我們總收入的 45.5%。正如預期的那樣，我們產品的最終需求強勁。為了最好地分配產能，我們轉移了資源和生產來支援計算領域，特別是筆記型電腦和桌上型電腦應用程式以及顯示卡。

Looking ahead into the March quarter, which is typically our seasonally slowest quarter following strong holiday shipments, we expect Computing revenue to be slightly lower to about flat. We expect strong demand to continue at our ODM customers for notebooks and desktop applications. This will be partially offset by a slight decline in graphics cards following a strong shipment in calendar Q4 as we reallocate our resources to support demand in other areas such as client computing.

展望三月季度，這通常是我們在假期出貨量強勁之後季節性最慢的季度，我們預計計算收入將略有下降至持平。我們預計 ODM 客戶對筆記型電腦和桌上型電腦應用程式的強勁需求將持續存在。由於我們重新分配資源以支援客戶端運算等其他領域的需求，第四季度出貨量強勁，顯示卡銷量略有下降，這將部分抵消這一影響。

Turning to the Consumer segment. Revenue grew 9.9% year-over-year and declined 4.6% sequentially and represented 20.1% of our total revenue. The year-over-year growth was primarily driven by strong demand in home appliances and share gains in gaming, both at Tier 1 OEMs. The sequential results were lower than our original target, primarily due to timing of shipments in gaming as one of our major customers pushed out orders for our MOSFET and Power IC products to the March quarter due to component delays from another supplier. Our total company revenue was not affected as we were able to quickly shift wafer capacity to other parts of the business.

轉向消費者領域。營收年增 9.9%，季減 4.6%，佔總營收的 20.1%。年比成長主要是由一級原始設備製造商對家用電器的強勁需求和遊戲市場份額的成長所推動的。連續業績低於我們最初的目標，主要是由於遊戲領域的發貨時間，因為我們的一個主要客戶由於另一家供應商的組件延遲而將我們的 MOSFET 和電源 IC 產品的訂單推遲到了 3 月份季度。我們的公司總收入沒有受到影響，因為我們能夠快速將晶圓產能轉移到業務的其他部分。

Accordingly, we expect our Consumer segment will achieve strong double-digit sequential growth in the March quarter as we reaccelerate shipment to this particular gaming customer after they resolve their other supply shortages.

因此，我們預計我們的消費者部門將在三月份季度實現強勁的兩位數連續增長，因為我們在解決其他供應短缺問題後重新加速向該特定遊戲客戶的發貨。

Next, let's discuss the Communications segment, which was 13.2% of total revenue, down 5.1% year-over-year and down 0.8% sequentially. This segment played out better than we anticipated last quarter as we saw stronger demand from the world's 2 leading smartphone makers in the U.S. and Korea, which helped offset some weakness that we expected from our China OEMs. We continue to believe we are in an excellent position for growth in battery protection over the next couple of quarters as we have secured designs at all the major global smartphone makers.

接下來我們來討論一下通訊業務，佔總營收的13.2%，年減5.1%，季減0.8%。該細分市場的表現好於我們上季度的預期，因為我們看到美國和韓國的全球兩大智慧型手機製造商的需求更加強勁，這有助於抵消我們預期的中國 OEM 廠商的一些疲軟。我們仍然相信，我們在未來幾季的電池保護成長方面處於有利地位，因為我們已經獲得了全球所有主要智慧型手機製造商的設計。

Finally, let's talk about the Power Supply and Industrial segments, which accounted for 19.5% of total revenue. This segment was up 30.7% year-over-year and down 0.5% sequentially, which was largely in line with our expectations. In the December quarter, we slightly reduced allocation to our AC-DC power supply business following 2 consecutive quarters of strong shipments. However, demand for our power supplies, particularly laptops, remained strong relative to the prior year. Further, we resumed shipments to a top U.S. solar microinverter maker and increased allocation to support the growing demand for our industrial solutions with a Tier 1 U.S. power tool manufacturer. Power tools is an emerging application for us with great synergy, given our product strengths in low- and medium-voltage products, targeting battery management and brushless DC motors.

最後，我們來談談電源和工業領域，佔總收入的19.5%。該細分市場年增 30.7%，季減 0.5%，基本上符合我們的預期。在連續兩季出貨量強勁後，我們在 12 月季度略微減少了對 AC-DC 電源業務的配置。然而，對我們的電源（尤其是筆記型電腦）的需求與去年相比仍然強勁。此外，我們恢復了對美國頂級太陽能微型逆變器製造商的發貨，並增加了分配，以支持美國一級電動工具製造商對我們工業解決方案不斷增長的需求。鑑於我們在中低壓產品、電池管理和無刷直流馬達方面的產品優勢，電動工具對我們來說是一個具有巨大協同效應的新興應用。

Looking ahead, we expect our Power Supply and Industrial segment to decrease slightly in the March quarter due to a temporary slowdown in our AC-DC power supply business due to allocation, while our recently ramped solar and power tool business remain elevated.

展望未來，由於我們的交直流電源業務因分配而暫時放緩，我們預計我們的電源和工業業務將在三月份季度略有下降，而我們最近成長的太陽能和電動工具業務仍保持在高水準。

To wrap up, it was another outstanding quarter for AOS and our business continues to fire on all cylinders. We continue to work diligently to deliver products to our customers on time and stay laser-focused on executing our capacity expansion and diversification plans.

總而言之，這是 AOS 又一個出色的季度，我們的業務繼續全速前進。我們繼續努力工作，按時向客戶交付產品，並專注於執行我們的產能擴張和多元化計劃。

With that, I will now turn the call over to Yifan for a discussion of our fiscal second quarter financial results and our outlook for the next quarter.

現在，我將把電話轉給一帆，討論我們第二季的財務表現和下一季的前景。

Thank you, Stephen. Good afternoon, everyone, and thank you for joining us. Before I start to discuss the financial results for the quarter, I would like to say a few words about the changes of our equity interest in the JV Company and related accounting and financial reporting.

謝謝你，史蒂芬。大家下午好，感謝您加入我們。在開始討論本季的財務表現之前，我想先簡單介紹一下我們在合資公司的股權變動以及相關的會計和財務報告。

As discussed previously on our Form 8-K, we completed a sale of 2.1% of our equity interest in the JV Company for $16.9 million on December 2, 2021, which resulted in the deconsolidation of the financial statements of the JV Company as we were no longer controlling shareholder. Subsequently, in December, we completed another sale of 1.1% equity interest for $9.4 million and the JV Company also issued approximately 4% equity interest to its employee stock ownership plan. With the above transactions, our equity interest in the JV Company at the end of December was 45.8% and our equity investment recorded on the balance sheet was $376.1 million.

如同先前在8-K 表格中所討論的，我們於2021 年12 月2 日以1,690 萬美元的價格完成了對合資公司2.1% 股權的出售，這導致合資公司的財務報表不再合併為我們的財務報表。隨後，12月，我們以940萬美元的價格完成了1.1%股權的出售，合資公司也向員工持股計畫發行了約4%的股權。透過上述交易，截至12月底，我們在合資公司的股權為45.8%，資產負債表上記錄的股權投資為3.761億美元。

In addition, an after-tax net gain of $358.7 million was recognized on the income statement for the quarter, and we excluded such gain from our non-GAAP financials as it was not related to our ongoing business and operations. Nevertheless, the gain indicated the equity value that we created during the last few years, while we built up the JV Company as one of our major suppliers. Subsequent to the December quarter, the JV Company completed an equity financing transaction of $80 million, representing approximately 7.82% of post-transaction outstanding equity of the JV Company, which further diluted our equity interest to 42.2% as of January 26, 2022.

此外，本季損益表中確認了 3.587 億美元的稅後淨收益，我們從非 GAAP 財務數據中排除了此類收益，因為它與我們正在進行的業務和營運無關。儘管如此，收益表明了我們在過去幾年中創建的股權價值，同時我們將合資公司建立為我們的主要供應商之一。 12月季度之後，合資公司完成了8,000萬美元的股權融資交易，約佔交易後合資公司已發行股本的7.82%，這進一步稀釋了我們截至2022年1月26日的股權至42.2%。

In our financial reports, beginning with the month of December, we now account for our equity interest in the JV Company under the equity method of accounting. We also elected to record our pro-rata share of the JV's net earnings on a 1 quarter lagging basis. We will exclude it from our non-GAAP results so it's easier for our shareholders to see the financial performance of our ongoing business and operations. Finally, going forward, because we are now a minority shareholder in the JV Company, we will no longer discuss the operations of the JV Company.

在我們的財務報告中，從12月份開始，我們現在按照權益會計法核算我們在合資公司的股權。我們也選擇以滯後一季度的比例記錄我們在合資企業淨利潤中的份額。我們會將其排除在我們的非公認會計準則業績之外，以便我們的股東更容易看到我們正在進行的業務和營運的財務表現。最後，展望未來，由於我們現在是合資公司的少數股東，因此我們將不再討論合資公司的營運情況。

With that, let's discuss the financial results for the quarter. Unless otherwise noted, the following figures refer to the December quarter of 2021. Revenue was $193.3 million, up 3.4% from the prior quarter and up 21.7% from the same quarter last year. In terms of product mix, DMOS revenue was $135 million, up 3.3% sequentially and up 13.9% year-over-year. Power IC revenue was $55.1 million, up 5.3% from the prior quarter and up 47.4% from a year ago. Assembly service revenue was $3.2 million as compared to $4 million last quarter and $2.9 million for the same quarter last year.

接下來，讓我們討論一下本季的財務表現。除非另有說明，以下數據指的是 2021 年 12 月季度。從產品結構來看，DMOS營收為1.35億美元，季增3.3%，年增13.9%。電源IC收入為5,510萬美元，較上季成長5.3%，較去年同期成長47.4%。組裝服務收入為 320 萬美元，上季為 400 萬美元，去年同期為 290 萬美元。

Non-GAAP gross margin was 36.7%, up from 35.3% in the prior quarter and up from 31.4% in the same quarter last year. The quarter-over-quarter increase in non-GAAP gross margin was mainly driven by better product mix. Non-GAAP gross margin excluded $0.8 million of amortization of purchased IP for the December quarter, the prior quarter and the same quarter last year, respectively. In addition, non-GAAP gross margin excluded $1.7 million of share-based compensation charges as compared to $0.6 million for the prior quarter and $0.4 million for the same quarter last year.

非 GAAP 毛利率為 36.7%，高於上一季的 35.3%，高於去年同期的 31.4%。非公認會計準則毛利率的環比成長主要是由更好的產品組合所推動的。非 GAAP 毛利率不包括 12 月所在季度、上一季和去年同期 80 萬美元的購買智慧財產權攤銷。此外，非公認會計準則毛利率不包括 170 萬美元的股權激勵費用，而上一季的毛利率為 60 萬美元，去年同期的毛利率為 40 萬美元。

Non-GAAP operating expenses were $33.5 million compared to $35.1 million for the prior quarter and $31.5 million for the same quarter last year. The quarter-over-quarter decrease was primarily due to the deconsolidation of 1 month of the JV Company's operating expenses and lower variable compensation accruals this quarter.

非 GAAP 營運費用為 3,350 萬美元，上一季為 3,510 萬美元，去年同期為 3,150 萬美元。環比下降主要是由於本季合資公司1個月的營運費用取消合併以及應計可變薪酬減少。

Non-GAAP income tax expense was $1.3 million, which excluded $32.8 million of tax expense on the gain of our equity interest in the JV Company compared to $1.3 million for the prior quarter and $0.7 million for the same quarter last year. In sum, non-GAAP EPS attributable to AOS was $1.20 per share as compared to $1.06 for the prior quarter and $0.65 for the same quarter last year.

非公認會計準則所得稅費用為 130 萬美元，其中不包括因獲得合資公司股權而產生的 3,280 萬美元稅務費用，而上一季為 130 萬美元，去年同期為 70 萬美元。總而言之，AOS 的非 GAAP 每股收益為 1.20 美元，上一季為 1.06 美元，去年同期為 0.65 美元。

Now let's look at the cash flow. Consolidated operating cash flow was $50.8 million, including $11.2 million net customer deposits. Our operating cash flow in the prior quarter was $80.6 million, which included $40.2 million customer deposits. Operating cash flow a year ago was $36.1 million, which included $10 million customer deposits. Consolidated EBITDAS was $46.7 million compared to $45.3 million for the prior quarter and $31.6 million for the same quarter last year.

現在讓我們來看看現金流。合併經營現金流為 5,080 萬美元，其中客戶存款淨額為 1,120 萬美元。上一季我們的營運現金流為 8,060 萬美元，其中包括 4,020 萬美元的客戶存款。一年前的營運現金流為 3,610 萬美元，其中包括 1,000 萬美元的客戶存款。綜合息稅折舊攤銷前利潤 (EBITDAS) 為 4,670 萬美元，上一季為 4,530 萬美元，去年同期為 3,160 萬美元。

Let's move on to the balance sheet. Please note that the balance sheet accounts at December 31, 2021, no longer consolidated the JV Company anymore. We completed the December quarter with a cash balance of $269.3 million compared to $252.5 million at the end of last quarter, which included $20.9 million cash balance at the JV Company. The cash balance a year ago was $181 million, which included $38.7 million at the JV Company.

讓我們繼續看資產負債表。請注意，截至2021年12月31日的資產負債表帳戶不再合併合資公司。截至 12 月季度，我們的現金餘額為 2.693 億美元，而上季末為 2.525 億美元，其中包括合資公司的 2,090 萬美元現金餘額。一年前的現金餘額為 1.81 億美元，其中包括合資公司的 3,870 萬美元。

You will note that our bank borrowing balance was $22.7 million compared to $159.2 million a quarter ago, which included $137 million from the JV Company. During the quarter, we repaid $2.1 million of existing term loans and borrowed $2.5 million of working capital loan.

您會注意到，我們的銀行借款餘額為 2,270 萬美元，而上一季為 1.592 億美元，其中包括來自合資公司的 1.37 億美元。本季度，我們償還了 210 萬美元的現有定期貸款，並借入了 250 萬美元的流動資金貸款。

In terms of trade receivables and inventory, Days Sales Outstanding for the quarter was 27 days, flat as compared to the prior quarter. Average days in inventory were 105 days for the quarter compared to 117 days in the prior quarter. The reduction in inventory days was mainly due to the deconsolidation of the JV Company.

在應收帳款及庫存方面，本季應收帳款週轉天數為27天，與上季持平。本季平均庫存天數為 105 天，而上一季為 117 天。庫存天數減少主要是由於合資公司的解除合併所致。

Finally, our fixed asset balance was significantly reduced, again, primarily due to the deconsolidation. Net property, plant and equipment was $196.7 million, down from $441.3 million last quarter and down from $430.8 million last year. AOS capital expenditures for the quarter were $22.7 million. The deconsolidation of our JV financials really shines a light on the strength of our balance sheet, which has relatively low fixed assets compared to our earnings power and very low debt.

最後，我們的固定資產餘額再次大幅減少，這主要是由於取消合併所致。財產、廠房和設備淨額為 1.967 億美元，低於上一季的 4.413 億美元，也低於去年的 4.308 億美元。本季 AOS 資本支出為 2,270 萬美元。我們合資企業財務狀況的分拆確實凸顯了我們資產負債表的實力，與我們的獲利能力相比，資產負債表的固定資產相對較低，債務也非常低。

Now I would like to discuss March quarter guidance. We expect revenue to be approximately $194 million, plus or minus $3 million. GAAP gross margin to be 35.1% plus or minus 1%. We anticipate non-GAAP gross margin to be 36% plus or minus 1%. Non-GAAP gross margin excludes $0.8 million amortization of acquired IP and $1 million of estimated share-based compensation charges. GAAP operating expenses to be in the range of $41.9 million, plus or minus $1 million.

現在我想討論三月季度指引。我們預計營收約 1.94 億美元，上下浮動 300 萬美元。 GAAP 毛利率為 35.1% 正負 1%。我們預期非 GAAP 毛利率為 36% 正負 1%。非 GAAP 毛利率不包括 80 萬美元的收購智慧財產權攤銷和 100 萬美元的估計股權補償費用。 GAAP 營運費用將在 4,190 萬美元上下浮動 100 萬美元之間。

Non-GAAP operating expenses are expected to be in the range of $34.5 million, plus or minus $1 million. Non-GAAP operating expenses exclude $7 million of estimated share-based compensation charges and $0.4 million of estimated legal expenses relating to the government investigation. Interest expense to be approximately $0.5 million and income tax expense to be in the range of $1.2 million to $1.4 million.

非 GAAP 營運費用預計在 3,450 萬美元上下浮動約 100 萬美元。非 GAAP 營運費用不包括 700 萬美元的預期股權激勵費用和 40 萬美元的與政府調查相關的預期法律費用。利息支出約 50 萬美元，所得稅支出在 120 萬至 140 萬美元之間。

With that, we will open the call for questions. Operator, please start the Q&A session.

至此，我們將開始提問。接線生，請開始問答環節。

(Operator Instructions) The first question is from the line of David Williams with Benchmark.

（操作員說明）第一個問題來自 Benchmark 的 David Williams。

Congrats on another really solid quarter. So one quick thing, which is on the gross margin. There's a lot of -- they're obviously better than guidance and what we were expecting. Just wondering, I know you pointed to mix as being the big driver there. But can you be any more specific maybe in terms of is it more mix related, be it product or a segment? Or is it more of the IC that grew a little bit? But what do you think in terms of overall mix? And are there -- do you feel that this is all structural and can be maintained throughout the cycle?

恭喜又一個非常穩定的季度。一件簡單的就是毛利率。有很多——它們顯然比指導和我們的預期更好。只是想知道，我知道您指出混合是那裡的主要推動力。但您能否更具體地說，也許它與混合相關，無論是產品還是細分市場？還是更多的是IC的成長一點點？但您對整體組合有何看法？您是否認為這都是結構性的並且可以在整個週期中維持？

Sure, David. Yes, in the December quarter, the gross margin increase was primarily due to the better product mix. We are selling more and more higher value and higher margin products. For example, Power IC product line carries a higher margin for us. Our Power IC product line has been growing nicely. In the December quarter, Power IC product line grew 47% year-over-year and the quarter before, I think it grew over 50% year-over-year. So we are doing well with those Power IC products.

當然，大衛。是的，在十二月季度，毛利率的成長主要是由於更好的產品組合。我們正在銷售越來越多的更高價值和更高利潤的產品。例如，Power IC產品線為我們帶來了更高的利潤。我們的電源IC產品線一直成長良好。在12月季度，電源IC產品線年增47%，而上一季度，我認為年增超過50%。所以我們在這些電源 IC 產品方面做得很好。

Right now, the Power IC product line already crossed the $200 million annual revenue run rate. That's very significant to our business. Even within our DMOS product line, we are replacing older products with more advanced products, which provide higher margin for us as well. So more and more of our MOSFET products, industry-leading products in the markets that we serve.

目前，Power IC產品線的年收入已突破2億美元。這對我們的業務非常重要。即使在我們的 DMOS 產品線中，我們也在用更先進的產品取代舊產品，這也為我們提供了更高的利潤。因此，我們服務的市場中越來越多的 MOSFET 產品、產業領先產品。

So overall, I think I see our gross margin trend is positive and we're happy to see our non-GAAP gross margin improved to 36.7% this quarter, which is well within our current target of mid-30% range. So I would expect that yes, as we continue to grow our business and then our gross margin should play well.

因此，總的來說，我認為我們的毛利率趨勢是積極的，我們很高興看到本季度我們的非 GAAP 毛利率提高到 36.7%，這完全在我們目前 30% 中間的目標範圍之內。所以我希望是的，隨著我們業務的不斷發展，我們的毛利率應該會表現良好。

Yes. Well, perhaps I'm getting the margin that it's impressive to see. On the other side, you talked a little bit about the gaming console being softer than expected. And I guess I'm just surprised that you could have that maybe a little softer there, but it didn't impact the revenue. How should we think about your ability to really reallocate resources that quickly? And is this maybe just from the inventory build? Or is there some cost shipping of components? Or just any around the ability to fulfill, I guess, other markets when you have a shortfall in one?

是的。好吧，也許我得到了令人印象深刻的利潤。另一方面，您談到了遊戲機比預期要軟的情況。我想我只是很驚訝你可能會稍微軟一點，但這並沒有影響收入。我們應該如何看待您如此快速地重新分配資源的能力？這可能只是來自庫存建設嗎？或者是否有一些組件運輸成本？或者只是當你在某個市場出現短缺時，是否有能力滿足其他市場的需求？

Sure. So this is Stephen. Good question. So the gaming console business is a good business for us. We have been prioritizing that. And unfortunately, our customer has been having production issues. And this has been a pretty common story situation that we've seen, even at leading Tier 1 customers, that they have a difficulty procuring all the materials they need to produce these consoles.

當然。這就是史蒂芬。好問題。所以遊戲機業務對我們來說是一個很好的業務。我們一直優先考慮這一點。不幸的是，我們的客戶一直遇到生產問題。這是我們看到的一個非常常見的情況，即使在領先的一級客戶中，他們也很難採購生產這些遊戲機所需的所有材料。

So this is not new to us. We know this issue has been there throughout most of last year. So we've always been kind of watching the demand situation and their production schedules very closely so that we can internally make sure that we position our production accordingly and to shift into other places.

所以這對我們來說並不新鮮。我們知道這個問題在去年的大部分時間裡一直存在。因此，我們一直在密切關注需求情況及其生產計劃，以便我們能夠在內部確保我們相應地定位我們的生產並轉移到其他地方。

So the best thing to -- best way to be able to be more agile in shifting production is to have a closer understanding of the demand and what's happening at the customer situation.

因此，能夠更敏捷地轉移生產的最佳方法是更深入地了解需求和客戶狀況。

Sure. Okay. And one more quickly, if you don't mind. But with the new structure of the JV, what does the Phase 2 opportunity look like in terms of capacity and maybe even the economics? Will it be as attractive as the prior phase? And does it change anything in relation to pricing from the first phase? And I guess if you think about the long-term security agreement, do you have one in place? Just anything around that, the JV would be helpful.

當然。好的。如果你不介意的話，再快一點。但隨著合資企業的新結構，第二階段的機會在產能甚至經濟方面會是什麼樣子？它會像前一階段一樣有吸引力嗎？與第一階段相比，它是否改變了與定價相關的任何內容？我想如果你考慮長期安全協議，你是否已經制定了一份協議？只要是與此相關的任何事情，合資企業都會有所幫助。

Sure. I mean this -- we are happy to see the JV Company ramped up in their Phase 1. And also, we are happy to see the JV also raised $80 million capital in January for the step 1 of the Phase 2 expansion. So I mean managing suppliers is a relationship business. And I mean we have a good relationship with the JV Company. We don't see any changes in the relationship just because of the deconsolidation.

當然。我的意思是，我們很高興看到合資公司在第一階段的擴張。 。所以我的意思是管理供應商是一項關係業務。我的意思是我們與合資公司有著良好的關係。我們認為這種關係不會因為解體而有任何改變。

So as a matter of fact, the deconsolidation provided more flexibility for the JV Company to raise money from outside investors for their further expansion and clear the path to their intended potential listing on the Shanghai STAR market. So overall, we are executing our three-pronged capacity expansion strategy to ensure our supply securities by diversifying our foundry mix and subcontractor mix. So we are confident that we can continue to grow.

事實上，此次分拆為合資公司提供了更大的靈活性，使其能夠從外部投資者籌集資金以進一步擴張，並為其在上海科創板上市掃清道路。因此，總體而言，我們正在執行三管齊下的產能擴張策略，透過多元化代工組合和分包商組合來確保我們的供應安全。因此，我們有信心能夠繼續發展。

Great. Best luck on the quarter end, I look forward to seeing the next...

偉大的。祝本季末好運，我期待看到下一個...

This is Mike Chang, I'll just add a few words. Yes. Yes, this is Mike Chang. Yes, the relationship with the JV, of course, is long-term. We've been working with them for so long. But the relationship is good there. Even though relationship is good there, we do have the agreement, the contract to secure our future supply. So I just want to make sure that we don't just count on the relationship, which we do very hard to maintain, but we also have official commitment, yes. Thank you.

我是Mike Chang，我簡單補充幾句。是的。是的，這就是張麥克。是的，與合資企業的關係當然是長期的。我們已經與他們合作了很長時間。但那裡的關係很好。儘管那裡的關係很好，但我們確實有協議和合約來確保我們未來的供應。所以我只是想確保我們不僅僅指望這種我們非常努力維持的關係，而且我們也有官方承諾，是的。謝謝。

The next question comes from the line of Michael Mani with B. Riley Securities.

下一個問題來自 Michael Mani 與 B. Riley Securities 的對話。

This is Michael on for Craig. To start, I was wondering if you could maybe give us an update on the contour of the Oregon ramp and how you anticipate capacity coming online? Maybe that's following the necessary installations. Could we ramp to most of that $70 million annual potential revenue in the fourth quarter of this year? Or do you anticipate it more spread out across 2 or 3 quarters into 2023? And then a follow-up.

這是麥可替克雷格發言。首先，我想知道您是否可以向我們介紹俄勒岡坡道輪廓的最新情況以及您對上線容量的預期如何？也許這是必要的安裝之後的事情。我們能否在今年第四季實現 7,000 萬美元年度潛在收入中的大部分？或者您預計這種情況會在 2023 年之前的 2 到 3 個季度內發生？然後是後續行動。

Right, sure. I mean we are undergoing the Oregon fab expansion right now. As Stephen mentioned, we have already placed orders for equipment and clean room expansion is under way. And we expect that we can get new additional capacity online in the December quarter of this year. The ramp up for that additional capacity, we expect to ramp it up relatively quickly. So probably by the first quarter of 2023, I would think that we can ramp up to that $70 million annual revenue run rate.

對，當然。我的意思是，我們現在正在進行俄勒岡州晶圓廠的擴建。正如史蒂芬所提到的，我們已經下了設備訂單，潔淨室擴建正在進行中。我們預計我們可以在今年第四季獲得新的額外產能。對於額外產能的增加，我們預計會相對快速地增加。因此，我認為到 2023 年第一季度，我們的年收入運行率可能會達到 7,000 萬美元。

Great. That's helpful. I appreciate that. I guess my next question is on customer deposits. I know we received around $11 million this quarter, falling around $40 million last quarter. The question is this, given that customers are still largely supply anxious, how much further customer deposit activity do you expect this year? And could a return maybe to the same volume you saw towards the second half of last fiscal year? Or do you see it sort of waning off as you go through the year and things in the supply chain start to normalize?

偉大的。這很有幫助。我很欣賞這一點。我想我的下一個問題是關於客戶存款的。我知道本季我們收到了大約 1100 萬美元，上個季度減少了大約 4000 萬美元。問題是，鑑於客戶在很大程度上仍然對供應感到焦慮，您預計今年客戶存款活動會進一步增加多少？是否會恢復到上一財年下半年的相同數量？還是您認為隨著這一年的過去，供應鏈中的事情開始正常化，這種情況會逐漸減弱？

Sure, Michael. Yes, in the December quarter, we received about $11 million of customer deposits. Yes, overall, we are kind of right now hesitate to receive customer deposits, not because all those deposits earmarked with a commitment of supply. So largely, right now, our Oregon fab expansion already pretty much allocated that out already. So I would not see a large customer deposits from now on.

當然，邁克爾。是的，在 12 月季度，我們收到了大約 1,100 萬美元的客戶存款。是的，總的來說，我們現在對接受客戶存款有點猶豫，並不是因為所有這些存款都指定了供應承諾。目前，我們俄勒岡州晶圓廠的擴建基本上已經將其分配出去了。所以從現在開始我不會看到大量的客戶存款。

The next question comes from the line of Jeremy Kwan with Stifel.

下一個問題來自 Jeremy Kwan 和 Stifel 的台詞。

Yes. Let me add my congratulations on the strong execution and the record gross margins. I wanted to dig a little deeper into the -- into basically your overall capacity that's available to you in calendar '22. And I guess there are some questions already been asked about the Oregon ramp and when you can get equipment in place. So it sounds like initial revenue won't be able to -- you won't be able to get initial revenue until March of 2023 in Oregon. And with the JV, just starting to place orders now, is that a similar time frame for them to see their next step up in capacity?

是的。讓我對強勁的執行力和創紀錄的毛利率表示祝賀。我想更深入地挖掘一下——基本上是你在 22 日曆中可用的整體能力。我想已經有人問過一些關於俄勒岡坡道以及何時可以將設備安裝到位的問題。因此，聽起來初始收入將無法實現——在俄勒岡州，直到 2023 年 3 月您才能獲得初始收入。對於合資企業來說，現在才開始下訂單，他們是否有一個類似的時間框架來看到下一步產能的提升？

Sure. I mean this and -- remember, we are executing on three-pronged approach. I mean yes, we expect that our Oregon fab to have some capacity online in December quarter of this year. And at the same time, we are also expanding our relationship with foundry partners. So we are working with them. We have been working with them. So we should see some capacities and additional ones during the year, I mean, along the way.

當然。我的意思是——記住，我們正在採取三管齊下的方法。我的意思是，是的，我們預計我們的俄勒岡工廠將在今年 12 月季度擁有一些產能。同時，我們也在擴大與代工夥伴的關係。所以我們正在與他們合作。我們一直在與他們合作。因此，我們應該在這一年中看到一些能力和額外的能力，我的意思是，一路走來。

So on the other hand, we're not standing still. So though we are managing our product mix and also continue to do the business process and operations process improvements at our factories and so all those can contribute to additional revenue growth.

因此，另一方面，我們也沒有停滯不前。因此，儘管我們正在管理我們的產品組合，並繼續在我們的工廠進行業務流程和營運流程改進，因此所有這些都可以促進額外的收入成長。

Very good. And maybe a question in terms of the pricing. So firstly, on the pricing that you're providing to your customers, is that something that is baked into some of your -- this revenue target that you have for March? And how much are you counting on for pricing being a potential tailwind for calendar '22?

非常好。也許是定價方面的問題。首先，關於您向客戶提供的定價，這是否已納入您三月的收入目標？您對定價作為 22 年日曆的潛在推動力有多大期望？

Right now, for the March quarter guidance, as Stephen mentioned, we are on allocation. So that guidance is more based on our production. So as you know, in the March quarter, there is -- there was actually Lunar New Year holidays, so that would sometimes -- it will have some pressure on our production. So overall, our March quarter is looking strong, and then we are comfortable with our guidance.

目前，正如史蒂芬所提到的，對於三月季度的指導，我們正在進行分配。因此，該指導更多地基於我們的生產。如你所知，在三月的季度，實際上有農曆新年假期，所以有時會對我們的生產造成一些壓力。因此，總的來說，我們三月的季度看起來很強勁，我們對我們的指導感到滿意。

So in terms of pricing pressure, I mean, there's -- right now, the industry is still in shortage and dynamic. So the -- so -- we have, in some instances, seen some input cost increases, and we have selectively adjusted some of our ASP to pass on the increase in the cost. So at the same time, we don't want to gouge our customers. So...

因此，就定價壓力而言，我的意思是，目前該行業仍處於短缺和充滿活力的狀態。因此，在某些情況下，我們看到一些投入成本增加，並且我們有選擇地調整了一些平均售價，以轉嫁成本的增加。因此，同時，我們不想欺騙我們的客戶。所以...

Fair enough. And I guess on the -- to build off the input pricing, is that -- in your discussions with the JV, has contract pricing come up? The industry has been -- I mean we've seen leading foundries raised prices 20% plus. And is this something that you've encountered yet? And is this something that is being discussed going forward?

很公平。我想，為了建立投入定價，在您與合資企業的討論中，合約定價是否出現了？我的意思是，我們已經看到領先的代工廠將價格提高了 20% 以上。您有遇過這種情況嗎？這是未來正在討論的事情嗎？

So our pricing with JV Company is to go with the market price. I mean we pay the market pricing tool to the JV Company.

所以我們和合資公司的定價是按照市場價格來定價。我的意思是我們向合資公司支付市場定價工具。

And so I would assume that your pricing has gone up since market price seems to have gone up?

所以我認為你們的定價已經上漲，因為市場價格似乎上漲了？

Well, that's -- Yes. I mean from quarter-to-quarter, from time to time, I mean, that's just the same as what we do with other foundries and subcontractors.

嗯，那就是──是的。我的意思是，每個季度，有時，這與我們與其他鑄造廠和分包商所做的一樣。

Okay. And in terms of the capacity allocation that the JV has going forward, I would assume that they would want to diversify their customer base. And is that something that in terms of the growth of capacity available to you? Have -- can you give us some more intent to kind of the discussions around future capacity?

好的。就合資企業未來的產能分配而言，我認為他們希望實現客戶群多元化。這是否與您可用的容量成長有關？您能給我們一些關於未來容量的更多討論的意圖嗎？

Sure. I mean, definitely, the JV Company wants to diversify their customer base as well going forward, so does AOS. So we also want to diversify our foundry mix and subcontractor mix as well. I mean, overall, we are comfortable with the supply from the JV Company, and we are working with other foundries and with our own Oregon fab as well.

當然。我的意思是，合資公司肯定希望未來能實現客戶群多元化，AOS 也是如此。因此，我們也希望使我們的代工組合和分包商組合多樣化。我的意思是，總的來說，我們對合資公司的供應感到滿意，並且我們正在與其他代工廠以及我們自己的俄勒岡工廠合作。

Let me add up a couple of words. Jeremy, this is Mike Chang, by the way. You know what, as I mentioned ago, okay, friendship is friendship, which is definitely needed. Well, however, business is business, right? So we all have -- to all the partner, we always have the firm agreement. They know what their obligation, we know what are our obligations, okay? So this business cannot just buy by goodwill, okay? So yes, okay, you want goodwill, but then also you need agreement. So to answer your question, maybe also clarify, I think, the situation agreement, we do have a clear commitment. Yes.

讓我補充幾句話。傑里米，順便說一句，這是麥克張。你知道嗎，正如我之前提到的，好吧，友誼就是友誼，這絕對是需要的。然而，生意就是生意，對吧？因此，對於所有合作夥伴，我們始終達成堅定的協議。他們知道他們的義務是什麼，我們知道我們的義務是什麼，好嗎？所以這個企業不能只靠善意購買，好嗎？所以，是的，好吧，你需要善意，但你也需要同意。所以回答你的問題，也許也澄清一下，我認為，就情況協議而言，我們確實有一個明確的承諾。是的。

Great. Mike, I really appreciate that. And just one last question, if I could, before I hand it back. I guess the -- looking at the Hillsborough -- or sorry, the Oregon expansion, is this -- is that mostly being spent on the front-end equipment? Or is there some back end also taking place? Can you help us get a split for what the spending is going to be?

偉大的。麥克，我真的很感激。在我把它還回去之前，如果可以的話，還有最後一個問題。我想 - 看看希爾斯伯勒 - 或者抱歉，俄勒岡州的擴建，是 - 大部分都花在前端設備上嗎？或者是否也有一些後端發生？您能幫我們分攤支出嗎？

Sure. For the Oregon fab, it's entirely for the front end. I mean, not on the fab only. We are also expanding some capacity in our Shanghai assembly and test facilities as well.

當然。對於俄勒岡州晶圓廠來說，它完全是針對前端的。我的意思是，不僅僅是在晶圓廠。我們也擴大了上海組裝和測試工廠的部分產能。

Great. And is there going to be any impact to gross margins as you spend for the new equipment and ramp things up?

偉大的。當您購買新設備並提高產量時，會對毛利率產生任何影響嗎？

Right now, our estimate is we can maintain within our targeted range of mid-30% range.

目前，我們的估計是我們可以維持在 30% 中間的目標範圍內。

There are no additional questions waiting at this time. I would now like to pass it back to the management team for any closing remarks.

目前沒有其他問題等待。現在我想將其轉交給管理團隊以供結束語。

This concludes our earnings call today. Thank you for your interest in AOS, and we look forward to talking with you again next quarter. Thank you.

我們今天的財報電話會議到此結束。感謝您對 AOS 的關注，我們期待下季再次與您交談。謝謝。

Thank you.

謝謝。

Yes. Thank you, and God bless you all.

是的。謝謝你們，願上帝保佑你們大家。

That concludes the Alpha and Omega Semiconductor Fiscal Q2 2022 Earnings Call. I hope you all enjoy the rest of your day. You may now disconnect your lines.

Alpha 和 Omega 半導體 2022 年第二季財報電話會議到此結束。我希望你們都度過愉快的一天。現在您可以斷開線路。