Diodes Inc (DIOD) 2018 Q4 法說會逐字稿

Good afternoon, and welcome to Diodes Incorporated's Fourth Quarter and Full Year 2018 Financial Results Conference Call. (Operator Instructions) As a reminder, this conference call is being recorded today, Wednesday, February 13, 2019.

下午好，歡迎參加 Diodes 公司 2018 年第四季和全年財務業績電話會議。（操作員說明）謹此提醒，本次電話會議將於今天（2019 年 2 月 13 日星期三）錄製。

I would now like to turn the call over to Leanne Sievers of Shelton Group Investor Relations. Leanne, please go ahead.

我現在想將電話轉給謝爾頓集團投資者關係部的 Leanne Sievers。莉安，請繼續。

Good afternoon, and welcome to Diodes' Fourth Quarter and Full Year 2018 Financial Results Conference Call. I'm Leanne Sievers, President of Shelton Group, Diodes' Investor Relations firm.

下午好，歡迎參加 Diodes 2018 年第四季和全年財務業績電話會議。我是 Leanne Sievers，Diodes 投資人關係公司 Shelton Group 的總裁。

Joining us today are Diodes' President and CEO, Dr. Keh-Shew Lu; Chief Financial Officer, Rick White; Vice President of Worldwide Sales and Marketing, Emily Yang; and Director of Investor Relations, Laura Mehrl.

今天加入我們的是 Diodes 總裁兼執行長 Keh-Shew Lu 博士；首席財務官，里克懷特；全球銷售與行銷副總裁 Emily Yang；和投資者關係總監 Laura Mehrl。

Before I turn the call over to Dr. Lu, I'd like to remind our listeners that the results announced today are preliminary as they're subject to the company finalizing the closing procedures and customary quarterly and year-end review by the company's independent registered public accounting firm. As such, these results are unaudited and subject to revision until the company files its Form 10-K for the fiscal year 2018.

在我將電話轉接給盧博士之前，我想提醒我們的聽眾，今天公佈的結果是初步的，因為它們取決於公司最終確定的關閉程序以及公司獨立董事的慣例季度和年終審查。註冊會計師事務所。因此，這些結果未經審計，並且在公司提交 2018 財年 10-K 表格之前可能會進行修訂。

In addition, management's prepared remarks contain forward-looking statements, which are subject to risks and uncertainties, and management may make additional forward-looking statements in response to your questions. Therefore, the company claims the protection of the safe harbor for forward-looking statements that's contained in the Private Securities Litigation Reform Act of 1995.

此外，管理層準備的言論包含前瞻性陳述，這些陳述存在風險和不確定性，管理層可能會針對您的問題做出額外的前瞻性陳述。因此，該公司聲稱受到 1995 年《私人證券訴訟改革法案》中包含的前瞻性陳述的安全港保護。

Actual results may differ from those discussed today, and therefore, we refer you to more detailed discussion of the risks and uncertainties in the company's filings with the Securities and Exchange Commission, including forms 10-K and 10-Q. In addition, any projections as to the company's future performance represent management's estimates as of today, February 13, 2019. Diodes assumes no obligation to update these projections in the future as market conditions may or may not change, except to the extent required by applicable law.

實際結果可能與今天討論的結果有所不同，因此，我們建議您參閱公司向美國證券交易委員會提交的文件（包括表格 10-K 和 10-Q）中有關風險和不確定性的更詳細討論。此外，對公司未來業績的任何預測均代表管理層截至今天（2019 年 2 月 13 日）的估計。由於市場條件可能會或可能不會發生變化，Diodes 不承擔在未來更新這些預測的義務，除非適用法律要求。

Additionally, the company's press release and management statements during this conference call will include discussions of certain measures and financial information in GAAP and non-GAAP terms. Included in the company's press release are definitions and reconciliations of GAAP to non-GAAP items, which provide additional details. Also throughout the company's press release and management statements during this conference call, we refer to net income attributable to common stockholders as GAAP net income.

此外，該公司在本次電話會議期間的新聞稿和管理層聲明將包括以公認會計原則和非公認會計原則術語討論某些措施和財務資訊。該公司的新聞稿中包括 GAAP 與非 GAAP 項目的定義和調節，其中提供了更多詳細資訊。此外，在本次電話會議期間公司的新聞稿和管理層聲明中，我們將歸屬於普通股股東的淨利潤稱為 GAAP 淨利潤。

For those of you unable to listen to the entire call at this time, a recording will be available via webcast for 90 days in the Investor Relations section of Diodes' website at www.diodes.com.

對於目前無法收聽整個電話會議的人士，可在 Diodes 網站 www.diodes.com 的投資者關係部分透過網路廣播提供為期 90 天的錄音。

And now I'll turn the call over to Diodes' President and CEO, Dr. Keh-Shew Lu. Dr. Lu, please go ahead.

現在我將把電話轉給 Diodes 總裁兼執行長 Keh-Shew Lu 博士。盧醫生，請講。

Thank you, Leanne. Welcome, everyone, and thank you for joining us today. I'm pleased to report that 2018 represented the best performing year in Diodes' history, with the achievement of record financials, 15% organic revenue growth driven by continued market share gains, and a 75% increase in non-GAAP profitability over the prior year.

謝謝你，莉安。歡迎大家，感謝您今天加入我們。我很高興地向大家報告，2018 年是 Diodes 歷史上表現最佳的一年，財務業績創歷史新高，市場份額持續增長推動有機收入增長 15%，非 GAAP 盈利能力比上年增長 75%年。

Our ongoing focus on automotive and industrial sectors result in annual revenue growth from those target end market of 38% and 29%, respectively, and a combined 35% of total revenue. Additionally, our Pericom business, excluding frequency control product, grew 24% year-over-year to almost 10% of revenue, primarily as a result of our increased content in high-end PC, server, storage and the data center markets.

我們持續關注汽車和工業領域，這些目標終端市場的年收入成長分別為 38% 和 29%，合計佔總收入的 35%。此外，我們的 Pericom 業務（不包括頻率控制產品）年增 24%，佔營收的近 10%，這主要是由於我們在高階 PC、伺服器、儲存和資料中心市場的內容增加。

During 2018, we made significant progress on Diodes' position at key customers and are gaining shares, not only within product line but also across multi-application at the same customer. In fact, some of our largest customer use Diodes content in nearly all products they offer, which provide greater diversification for Diodes as well as a deeper relationship with those customers. Our Pericom products have also provided us greater leverage, creating expanded opportunity in new end equipment and applications as well as additional cross-selling opportunities for our other product offerings.

2018 年，我們在 Diodes 在主要客戶中的地位方面取得了重大進展，並且不僅在產品線內，而且在同一客戶的多應用領域，我們的份額都在增加。事實上，我們的一些最大客戶在他們提供的幾乎所有產品中都使用了 Diodes 內容，這為 Diodes 提供了更大的多樣化，並與這些客戶建立了更深的關係。我們的 Pericom 產品也為我們提供了更大的影響力，為新的終端設備和應用創造了更多的機會，並為我們的其他產品提供了額外的交叉銷售機會。

More recently, I'm also pleased to have announced the proposed acquisition of Texas Instruments' wafer fabrication facility and operation located in Greenock, Scotland or GFAB. This facility is about 320,000 square-foot and has a potential monthly capacity of approximately 256,000 8-inch equipment diodes.

最近，我還很高興地宣布擬收購德州儀器 (TI) 位於蘇格蘭格林諾克 (GFAB) 的晶圓製造設施和業務。該工廠佔地約 32 萬平方英尺，潛在月產能約為 256,000 個 8 英吋設備二極體。

Also as part of the transition, Diodes and TI will enter into a multi-year wafer supply agreement, in which Diodes will continue to manufacture TI's Analog product from GFAB as TI transfers those products into its other wafer fabs. This proposed acquisition align well with our strategic plan for significant revenue and profit dollar growth over the next several years and offers Diodes additional wafer fab capacity to support our product growth, in particularly, our automotive expansion initiatives. It also provides excellent engineering skill and the wafer fab know-how to support our technical and operational performance expectations. Further, this transaction meets our criteria for strategic acquisitions, and that we expect it to be immediately accretive. The closing of the transaction is subject to customary closing conditions and is expected to be completed after the end of first quarter of 2019.

此外，作為過渡的一部分，Diodes 和 TI 將簽署多年晶圓供應協議，其中 Diodes 將繼續從 GFAB 生產 TI 的模擬產品，同時 TI 將這些產品轉移到其其他晶圓廠。此次擬議的收購與我們未來幾年收入和利潤顯著增長的戰略計劃非常吻合，並為 Diodes 提供了額外的晶圓廠產能，以支持我們的產品增長，特別是我們的汽車擴張計劃。它還提供卓越的工程技能和晶圓廠專業知識來支援我們的技術和營運績效預期。此外，這項交易符合我們的策略性收購標準，我們預計它會立即增值。該交易的交割須滿足慣例成交條件，預計將於 2019 年第一季末後完成。

As we look forward to 2019, we expect to continue gaining market share and achieve growth rate that exceeding our served available market, while prioritizing higher-margin opportunity across automotive, industrial and our Pericom product. Underpinning our anticipated growth and the serving as the key theme for Diodes in the coming year are content gains across connected car, high-end servers and the storage, 5G and IoT. We are well positioned both operationally and financially to drive increasing profit and the cash flow on incremental revenue growth and expect to once again reach new record across our business in 2019.

展望 2019 年，我們預計將繼續獲得市場份額並實現超過我們所服務的可用市場的成長率，同時優先考慮汽車、工業和 Pericom 產品的更高利潤機會。互聯汽車、高階伺服器和儲存、5G 和物聯網領域的內容成長支撐著我們的預期成長，並成為 Diodes 來年的關鍵主題。我們在營運和財務上都處於有利地位，可以透過增量收入成長來推動利潤和現金流的增加，並預計 2019 年我們的業務將再次創下新紀錄。

With that, let me now turn the call over to Rick to discuss our fourth quarter financial results and our first quarter 2019 guidance in more detail.

現在，讓我將電話轉給 Rick，更詳細地討論我們第四季的財務表現和 2019 年第一季的指導。

Thanks, Dr. Lu, and good afternoon, everyone. As part of my financial review today, I will focus my comments on a sequential change for the fourth quarter as well as select full year results, and we refer you to our press release for a more detailed review of our results as well as the year-over-year and full year comparisons.

謝謝盧博士，大家下午好。作為今天財務回顧的一部分，我將集中評論第四季度的連續變化以及部分全年業績，我們建議您參閱我們的新聞稿，以更詳細地回顧我們的業績和全年業績- 同比和全年比較。

Revenue for the fourth quarter 2018 was $314.4 million, a 2% decrease from the $320.9 million in the third quarter 2018. This 2% sequential decrease is significantly below our normal seasonality. For the full year 2018, revenue was a record $1.2 billion, an increase of 15.2% over $1.05 billion in 2017, and well over the growth of our served markets.

2018年第四季的營收為3.144億美元，比2018年第三季的3.209億美元下降2%。這 2% 的環比下降明顯低於我們正常的季節性下降。2018 年全年營收達到創紀錄的 12 億美元，比 2017 年的 10.5 億美元成長 15.2%，遠遠超過我們所服務市場的成長。

Gross profit for the fourth quarter was $114.2 million or 36.3% of revenue compared to $115.2 million or 35.9% of revenue in the third quarter 2018. The sequential increase in gross margin was primarily due to improved product mix as well as the continued 8-inch ramp at our Shanghai fabrication facility, SFAB 2. For the full year, gross profit increased 22% to a record $435.3 million or 35.9% of revenue as compared to $356.8 million or 33.8% of revenue in the prior year.

第四季的毛利為 1.142 億美元，佔營收的 36.3%，而 2018 年第三季的毛利為 1.152 億美元，佔營收的 35.9%。毛利率的環比增長主要是由於產品組合的改善以及我們上海製造工廠 SFAB 2 的 8 英寸產能持續提升。全年毛利增長 22%，達到創紀錄的 4.353 億美元，即去年同期的 35.9%。收入相較於去年為3.568 億美元，佔營收的33.8%。

GAAP operating expenses for the fourth quarter 2018 were $70.3 million or 22.4% of revenue and $65.8 million or 20.9% of revenue on a non-GAAP basis, which excludes $4.5 million of amortization of acquisition-related intangible asset expenses. This compares with GAAP operating expenses in the third quarter 2018 of $69.4 million or 21.6% of revenue and $65 million or 20.3% of revenue on a non-GAAP basis.

2018 年第四季的GAAP 營運費用為7,030 萬美元，佔營收的22.4%；以非GAAP 計算，營運費用為6,580 萬美元，佔營收的20.9%，其中不包括450 萬美元的收購相關無形資產費用攤銷。相較之下，2018 年第三季 GAAP 營運費用為 6,940 萬美元，佔營收的 21.6%；非 GAAP 營運費用為 6,500 萬美元，佔營收的 20.3%。

Total other expenses amounted to approximately $1 million for the quarter, including $2.3 million of interest expense.

該季度其他費用總額約為 100 萬美元，其中包括 230 萬美元的利息費用。

Income before taxes and noncontrolling interest in the fourth quarter of 2018 amounted to $42.8 million compared to $44.4 million in the third quarter of 2018.

2018 年第四季稅前和非控股權益前收入為 4,280 萬美元，而 2018 年第三季為 4,440 萬美元。

Turning to income taxes. Our effective income tax rates for the fourth quarter and full year 2018 were approximately 29.9% and 29.7%, respectively. GAAP net income for the fourth quarter 2018 was $29.5 million or $0.58 per diluted share compared to $30.9 million or $0.61 per diluted share in the third quarter 2018. The share count used to compute GAAP diluted EPS for the fourth quarter 2018 is 50.9 million shares. GAAP net income for the full year was a record $104 million or $2.04 per diluted share compared with a GAAP net loss for the full year 2017 of $1.8 million or a loss of $0.04 per share, which included the impact of the 2017 tax reform.

轉向所得稅。我們2018年第四季和全年的有效所得稅率分別約為29.9%和29.7%。2018 年第四季的 GAAP 淨利潤為 2,950 萬美元，即稀釋後每股收益 0.58 美元，而 2018 年第三季的 GAAP 淨利潤為 3,090 萬美元，即稀釋後每股收益 0.61 美元。用於計算 2018 年第四季 GAAP 攤薄每股盈餘的股票數量為 5,090 萬股。全年 GAAP 淨利潤達到創紀錄的 1.04 億美元，即每股攤薄收益 2.04 美元，而 2017 年全年 GAAP 淨虧損為 180 萬美元，即每股虧損 0.04 美元，其中包括 2017 年稅制改革的影響。

Fourth quarter 2018 non-GAAP adjusted net income was $33.2 million or $0.65 per diluted share, which excluded net of tax $3.7 million of noncash acquisition-related intangible asset amortization costs. This compares to non-GAAP adjusted net income of $34.5 million or $0.68 per diluted share in the third quarter 2018.

2018 年第四季非 GAAP 調整後淨利為 3,320 萬美元，或稀釋後每股 0.65 美元，其中不包括稅後 370 萬美元的非現金收購相關無形資產攤銷成本。相比之下，2018 年第三季非 GAAP 調整後淨利為 3,450 萬美元，即稀釋後每股收益 0.68 美元。

Non-GAAP adjusted net income for the full year 2018 increased 75% to a record $121.3 million or $2.38 per diluted share compared to $69.1 million or $1.37 per diluted share in 2017.

2018 年全年非 GAAP 調整後淨利成長 75%，達到創紀錄的 1.213 億美元，即稀釋後每股收益 2.38 美元，而 2017 年為 6,910 萬美元，即稀釋後每股收益 1.37 美元。

We've included in our earnings release a reconciliation of GAAP net income to non-GAAP adjusted net income, which provides additional details.

我們在收益報告中納入了 GAAP 淨利潤與非 GAAP 調整後淨利潤的調整表，其中提供了更多詳細資訊。

EBITDA for the fourth quarter 2018 was $70.5 million or 22.4% of revenue compared with $72 million or 22.4% of revenue in the third quarter 2018. For the full year 2018, EBITDA improved 55% to a record $261.1 million or 21.5% of revenue compared with $168.2 million or 16% of revenue in 2017. We have included in our earnings release a reconciliation of GAAP net income to EBITDA, which provides additional details.

2018 年第四季的 EBITDA 為 7,050 萬美元，佔營收的 22.4%，而 2018 年第三季的 EBITDA 為 7,200 萬美元，佔營收的 22.4%。2018 年全年，EBITDA 成長了 55%，達到創紀錄的 2.611 億美元，佔營收的 21.5%，而 2017 年為 1.682 億美元，佔營收的 16%。我們在收益報告中納入了 GAAP 淨利潤與 EBITDA 的調整表，其中提供了更多詳細資訊。

Cash flow generated from operations was $61.6 million for the fourth quarter 2018 and $185.6 million for the full year. Free cash flow was $46.3 million for the fourth quarter, which included $15.3 million of capital expenditures, and $98.1 million for the full year, which included $87.5 million of capital expenditures.

2018 年第四季營運產生的現金流為 6,160 萬美元，全年營運產生的現金流為 1.856 億美元。第四季自由現金流為 4,630 萬美元，其中包括 1,530 萬美元資本支出；全年自由現金流為 9,810 萬美元，其中包括 8,750 萬美元資本支出。

Net cash flow in the fourth quarter was a positive $90.7 million, including $47.4 million of additional long-term debt to fund a previously committed shareholder equity increase in the company's Chengdu corporate entity. Net cash flow for the full year was a positive $36.6 million, including the pay down of approximately $56.8 million of long-term debt.

第四季的淨現金流量為正 9,070 萬美元，其中包括 4,740 萬美元的額外長期債務，用於為該公司成都公司實體先前承諾的股東股本增加提供資金。全年淨現金流為正 3,660 萬美元，其中包括償還約 5,680 萬美元的長期債務。

Turning to the balance sheet. At the end of the fourth quarter, cash and cash equivalents plus short-term investments totaled approximately $248.6 million. Working capital was $480.8 million and long-term debt, including the current portion, was $213.8 million.

轉向資產負債表。截至第四季末，現金和現金等價物加上短期投資總計約2.486億美元。營運資金為 4.808 億美元，長期債務（包括當前部分）為 2.138 億美元。

At the end of the fourth quarter, inventory decreased approximately $3.7 million from the third quarter 2018 to approximately $215 million. The decrease in inventory reflects a $2.8 million decrease in finished goods, a $2.6 million decrease in raw materials and a $1.7 million increase in work-in process. This is the third consecutive quarter of finished goods inventory decreases, reflecting our focus on reducing finished goods inventory. Finished goods inventory days were 28 in the quarter compared to 30 in the third quarter of 2018. Total inventory days were 100 in the quarter compared to 99 in the third quarter 2018.

截至第四季末，庫存較 2018 年第三季減少約 370 萬美元，至約 2.15 億美元。庫存的減少反映了成品減少了 280 萬美元、原材料減少了 260 萬美元以及在製品增加了 170 萬美元。這是產成品庫存連續第三個季度下降，反映出我們對減少產成品庫存的重視。本季成品庫存天數為 28 天，而 2018 年第三季為 30 天。本季庫存總天數為 100 天，而 2018 年第三季為 99 天。

Capital expenditures on a cash basis for the fourth quarter were $15.3 million or 4.9% of revenue and $87.5 million or 7.2% of revenue for the full year. We expect CapEx for the full year 2019 to remain with our -- within our target model of 5% to 9% of revenue.

第四季現金資本支出為 1,530 萬美元，佔營收的 4.9%；全年資本支出為 8,750 萬美元，佔營收的 7.2%。我們預計 2019 年全年的資本支出將維持在收入的 5% 至 9% 的目標模型內。

Now turning to our outlook. We expect revenue in the first quarter of 2019 to be approximately $302 million, plus or minus 2.5%. At the midpoint, this represents growth of 10% over the prior year period, and down approximately 4% sequentially, which is slightly better than typical seasonality.

現在轉向我們的展望。我們預計 2019 年第一季營收約為 3.02 億美元，正負 2.5%。在中點，這意味著比去年同期成長 10%，比上一季下降約 4%，略好於典型的季節性。

We expect GAAP gross margin to be 36%, plus or minus 1%. Non-GAAP operating expenses, which are GAAP operating expenses adjusted for amortization of acquisition-related intangible assets, are expected to be approximately 21.5% of revenue, plus or minus 1%. We expect interest expense to be approximately $2 million. Our income tax rate is expected to be 25%, plus or minus 3%, and shares used to calculate diluted EPS for the first quarter are anticipated to be approximately 51.2 million.

我們預期 GAAP 毛利率為 36%，上下浮動 1%。非 GAAP 營運費用（即針對收購相關無形資產攤銷進行調整的 GAAP 營運費用）預計約為收入的 21.5%，上下浮動 1%。我們預計利息支出約為 200 萬美元。我們的所得稅稅率預計為25%，正負3%，用於計算第一季攤薄每股收益的股票預計約為5,120萬股。

Please note that purchase accounting adjustments of $3.7 million after tax for Pericom and previous acquisitions are not included in these non-GAAP estimates.

請注意，這些非 GAAP 估算中不包括 Pericom 和先前收購的 370 萬美元稅後收購會計調整。

That said, I will now turn the call over to Emily Yang.

也就是說，我現在將把電話轉給艾米麗·楊。

Thank you, Rick, and good afternoon. Looking more closely at fourth quarter revenues. Distributor POP was down by 6% and POS decreased 9.8% sequentially, but yet POS was up 16% year-over-year. Outside Asia, POS remains strong. Channel inventory increased 5.6% sequentially, driven primarily by Asia region, in preparation for the pre-Chinese New Year build, as is typical at this time of year. Outside of Asia, channel inventory was flat.

謝謝你，瑞克，下午好。更仔細地觀察第四季的收入。經銷商 POP 環比下降 6%，POS 環比下降 9.8%，但 POS 年增 16%。在亞洲以外地區，POS 依然強勁。通路庫存季增 5.6%，主要由亞洲地區推動，為農曆新年前的建設做準備，這在每年的這個時候都是典型的情況。在亞洲以外，通路庫存持平。

Looking at global sales in the fourth quarter. Asia represented 79% of the revenue; Europe, 10%; and North America, 11%. In terms of our end markets, industrial was once again our largest representative end market at 25% of revenue; consumer represented 24%; communication, 24%; computing, 18%; and automotive, 9% of revenue.

看看第四季的全球銷量。亞洲佔收入的 79%；歐洲，10%；和北美，11%。就我們的終端市場而言，產業再次成為我們最大的代表性終端市場，佔營收的25%；消費者佔24%；溝通，24%；計算，18%；和汽車業，佔收入的 9%。

Starting with the automotive market. Growth continues to be strong especially in Asia with 2018 revenue increasing almost 38% over 2017 to 9% of total revenue. Diodes continues to secure new design-ins across multiple products, including MOSFET on the brushless DC motor, electric power steering, water pumps, power windows, electric horn, infotainment, battery management and advanced driver's assistance.

從汽車市場開始。成長持續強勁，尤其是在亞洲，2018 年營收比 2017 年成長近 38%，佔總營收的 9%。Diodes 繼續確保多種產品的新設計，包括無刷直流馬達上的 MOSFET、電動輔助轉向、水泵、電動車窗、電喇叭、資訊娛樂、電池管理和高級駕駛員輔助。

In addition, USB power delivery has been added to automobiles, which is driving design-ins of our solution in infotainment and mobile wire and wireless charging application. Additionally, our diodes and rectifier product has seen solid momentum in the automotive space, driven by the need for a robust electric discharge protection in the connected cars. We also saw strong demand for daytime running lights and body control modules as we continue to introduce new products like bipolar junction transistors and LED linear controllers.

此外，汽車中還增加了 USB 供電功能，這推動了我們在資訊娛樂以及行動有線和無線充電應用中的解決方案的設計。此外，由於連網汽車需要強大的放電保護，我們的二極體和整流器產品在汽車領域取得了強勁的發展勢頭。隨著我們不斷推出雙極結型電晶體和 LED 線性控制器等新產品，我們也看到了對日間行車燈和車身控制模組的強勁需求。

In the industrial market, we also achieved strong full year growth of more than 29%, accounting to approximately 25% of total revenue. During the quarter, we secured multiple new design wins for our normal density Trench MOSFET technology, data line platform, hall sensors, Schottky, SBR and DJT products for our broad range of applications, including brushless DC motors, LED lighting, DC fan, power tools and e-lock applications.

在工業市場，我們全年也實現了超過29%的強勁成長，約佔總營收的25%。本季度，我們的正常密度Trench MOSFET 技術、數據線平台、霍爾感測器、蕭特基、SBR 和DJT 產品贏得了多項新設計，適用於我們廣泛的應用，包括無刷直流馬達、LED 照明、直流風扇、電源工具和電子鎖應用程式。

We also continue to see strong demand for our SASP products. In fact, with the record adoption of high-speed interfaces across multiple end application in the IoT industry. ESD protection is becoming more important for these data links. Diodes' SBR and Schottky product remains strong in the DC fan and lighting market where we offer products suitable for high-temperature environment. We also saw strong momentum for our recently introduced gate drivers designed into battery test systems, regulators into DC fan as well as transistors and synchronized controllers into power applications.

我們也持續看到對我們的 SASP 產品的強勁需求。事實上，物聯網產業中多終端應用對高速介面的採用創歷史新高。ESD 保護對於這些資料鏈路變得越來越重要。Diodes 的 SBR 和肖特基產品在直流風扇和照明市場中保持強勁勢頭，我們提供適合高溫環境的產品。我們還看到了最近推出的用於電池測試系統的柵極驅動器、用於直流風扇的調節器以及用於電源應用的電晶體和同步控制器的強勁勢頭。

In our consumer end-market, 2018 revenue grew 10% over 2017 as we continue to achieve strong momentum across a wide variety of applications such as low-power USB Type C charging and power delivery, wireless power charging, augmented reality, panels, earphone, wearables, portable devices, OLED displays, smart speakers, gaming, Bluetooth as well as Wi-Fi trackers. In addition, USB Type C is gaining market traction and expanding its footprint to new end products, such set-top boxes as well as Type C adapters to convert the Type C back to Type A for the existing installed base. Our Y-signal switching and MUX portfolio covers all these applications need.

在我們的消費終端市場，2018 年營收比 2017 年成長 10%，我們在低功耗 USB Type C 充電和供電、無線充電、擴增實境、面板、耳機等各種應用領域繼續保持強勁勢頭、可穿戴裝置、可攜式裝置、OLED 顯示器、智慧型揚聲器、遊戲、藍牙以及Wi-Fi 追蹤器。此外，USB Type C 正在贏得市場關注，並將其足跡擴展到新的終端產品，例如機上盒以及用於將 Type C 轉換回 Type A 以適應現有安裝基礎的 Type C 適配器。我們的 Y 訊號開關和 MUX 產品組合涵蓋所有這些應用需求。

Additionally, our audio product are achieving significant revenue increases, driven by the high demand for audio alarming features in the Bluetooth and Wi-Fi tracker applications. We also secured key design wins for our gate drivers and synchronous controllers for home appliance applications, such as air conditioner, fans and refrigerators.

此外，由於藍牙和 Wi-Fi 追蹤器應用中對音訊警報功能的高需求，我們的音訊產品收入也實現了顯著增長。我們也為空調、風扇和冰箱等家用電器應用的閘極驅動器和同步控制器贏得了關鍵設計。

In communications, Diodes has been actively engaged in this market with our comprehensive small footprint DFN and CFP MOSFET portfolio and have been achieving design wins and revenue growth. We also continue to expand our portfolio of battery protection MOSFET to address this market and also see strong demand for LDOs and hall sensors in smartphones to help reduce power consumption and increasing battery life. Our design win activity also continued for AC/DC charging solutions for smartphones, chargers and adapters.

在通訊領域，Diodes 憑藉全面的小尺寸 DFN 和 CFP MOSFET 產品組合積極參與該市場，並取得了設計勝利和收入成長。我們也繼續擴展我們的電池保護 MOSFET 產品組合以滿足該市場的需求，並且還看到智慧型手機中對 LDO 和霍爾感測器的強勁需求，以幫助降低功耗並延長電池壽命。我們的設計獲勝活動也持續針對智慧型手機、充電器和適配器的交流/直流充電解決方案。

Also within communications, major data center applications are driving the 100-gig and 400-gig optical transistor market to address the bandwidth need of data communications. High-speed transceivers require high performance and low jitter oscillators as our timing reference. Diodes broad portfolio of small form factor, ultra-low jitter XO products position us well in this growing market.

同樣在通訊領域，主要的資料中心應用正在推動 100G 和 400G 光學電晶體市場的發展，以滿足資料通訊的頻寬需求。高速收發器需要高效能和低抖動振盪器作為我們的時序參考。Diodes 廣泛的小尺寸、超低抖動 XO 產品組合使我們在這個不斷增長的市場中佔據有利地位。

Further, we continue to see strong demand for our MIPI signal switches, along with our strong demand for applications for ultra-fast recovery rectifier in the low-profile package in the mobile phones, base stations, wireless charging applications.

此外，我們持續看到 MIPI 訊號開關的強勁需求，以及手機、基地台、無線充電應用中對薄型封裝超快恢復整流器應用的強勁需求。

Also within communication, we're also seeing very strong design win activities in 5G applications, with a wide range of Pericom product, including PCIe packet switches, clock IC, crystal and crystal oscillators, level shifters and high-speed MOSFET and with Diodes product including low-noise LDOs, buck converters and MOSFET. 5G is only in the beginning stage of the infrastructure build out, and as Dr. Lu mentioned, we see this area as a key growth opportunity for Diodes in 2019 and beyond.

此外，在通訊領域，我們還看到5G 應用中的設計獲勝活動非常強勁，其中包括各種Pericom 產品，包括PCIe 數據包交換器、時脈IC、晶體和晶體振盪器、電平轉換器和高速MOSFET 以及Diodes 產品包括低雜訊 LDO、降壓轉換器和 MOSFET。5G 僅處於基礎設施建設的開始階段，正如陸博士所提到的，我們認為該領域是 Diodes 2019 年及以後的關鍵成長機會。

In computing, during the quarter, we secured new design wins for PCIe gen 4 product from the Pericom product line, including signal MUXs, we drive for it in active markets in the gaming and server applications. We also saw significant opportunities for USB Type C and USB 3.1 ReDrivers in tablet and PC application.

在計算領域，本季度，我們從 Pericom 產品線獲得了 PCIe gen 4 產品的新設計，包括訊號 MUX，我們在遊戲和伺服器應用的活躍市場中推動它。我們還看到了 USB Type C 和 USB 3.1 轉接驅動器在平板電腦和 PC 應用中的巨大機會。

In fact, USB Type C connectors continue to gain market traction as new applications are adopting USB Type C connector options. For example, the latest docking station for commercial notebooks support the USB Type C would require USB and DisplayPort signal MUXs.

事實上，隨著新應用採用 USB Type C 連接器選項，USB Type C 連接器繼續獲得市場關注。例如，最新的商用筆記型電腦擴充座支援 USB Type C，需要 USB 和 DisplayPort 訊號多工器。

Diodes solution supporting USB Type C alternative mode for signal switching and signal integrity continue to expand our designing activity in tablet, notebook and docking station applications. Hall sensors are also gaining traction in the notebook and tablet applications by reducing power consumption, while maintaining reliable performance. Additionally, our broad portfolio of Schottky rectified technology continues to win design-ins using applications such as USB Power Delivery and ATS Power Supply.

Diodes 解決方案支援用於訊號切換和訊號完整性的 USB Type C 替代模式，繼續擴展我們在平板電腦、筆記型電腦和擴充座應用中的設計活動。霍爾感測器還透過降低功耗同時保持可靠的性能，在筆記型電腦和平板電腦應用中獲得了關注。此外，我們廣泛的肖特基整流技術組合繼續贏得使用 USB 供電和 ATS 電源等應用的設計。

In summary, we are very pleased with achievement of record annual results across our business, driven by our past design win momentum, extended product offerings and increased market share and contracted customers.

總而言之，在我們過去的設計獲勝勢頭、擴展的產品供應以及增加的市場份額和簽約客戶的推動下，我們對整個業務取得了創紀錄的年度業績感到非常高興。

Additionally, our continued focus on automotive, industrial and our Pericom product has further contributed to our growth, while also offering additional higher-margin opportunities across a wide variety of applications. We expect this strategy will continue driving profitability growth and cash flow for Diodes in the years to come.

此外，我們對汽車、工業和 Pericom 產品的持續關注進一步促進了我們的成長，同時在各種應用中也提供了額外的更高利潤的機會。我們預計這項策略將在未來幾年繼續推動 Diodes 的獲利成長和現金流。

With that, we now open the floor to questions. Operator?

現在我們開始提問。操作員？

(Operator Instructions) Our first question comes from the line of Gary Mobley of Benchmark.

（操作員說明）我們的第一個問題來自 Benchmark 的 Gary Mobley。

I want to start with a question or a clarification for you, Rick. You mentioned in your prepared remarks, Q1 revenue guidance of $302 million and your press release reads $305 million. So I'm just hoping to midpoint exactly what it is.

我想先向你提出一個問題或澄清一下，里克。您在準備好的發言中提到，第一季營收指引為 3.02 億美元，而您的新聞稿則為 3.05 億美元。所以我只是希望準確地指出它是什麼。

Well, it's $302 million.

嗯，是 3.02 億美元。

$302 million. Okay. So still prompts to my second question, down 4% sequentially is better than seasonal. Nobody in the industry is doing better than seasonal in the first quarter. So why go on a limb with that sort of guidance and if it's truly backed by demand indicators and whatnot. Could you give us a sense of how you guys are faring so much better than the industry right now?

3.02 億美元。好的。所以仍然提示我的第二個問題，連續下降 4% 比季節性下降更好。業內沒有人第一季的表現比季節性更好。那麼，如果這種指導確實得到了需求指標等的支持，為什麼還要冒險呢？您能否讓我們了解一下你們現在的表現如何比整個產業好得多？

Okay. I think we're always talking about the seasonality somewhere around 9%, down 5% to 10%. But similar to last year, we do see a pretty strong demand for our product, especially the winning from content increase. I think during the speech, you can see we are gaining more shares, not just the more new product, but we do actually gaining more shares from a content increase. So even when we see some of the application tools roll on in 1Q, but due to the content increase, our effect by seasonality reduced.

好的。我認為我們總是在談論 9% 左右的季節性，下降 5% 到 10%。但與去年類似，我們確實看到對我們產品的強勁需求，尤其是內容增加帶來的勝利。我認為在演講中，你可以看到我們正在獲得更多的份額，不僅僅是更多的新產品，而且我們實際上確實透過內容的增加獲得了更多的份額。因此，即使我們看到一些應用工具在第一季開始使用，但由於內容的增加，我們受到季節性的影響減少了。

Okay. I did have a follow-up question about your GFAB acquisition. So, obviously, it doesn't -- perhaps it doesn't go with TI strategy and perhaps it's the reason they're willing to sell it. So I'm just wondering what the arbitrage is that you're betting on here? What don't they see in this facility that is going to benefit you strategically or financially?

好的。我確實有一個關於您收購 GFAB 的後續問題。所以，很明顯，它不——也許它不符合 TI 的戰略，也許這就是他們願意出售它的原因。所以我只是想知道你在這裡押注的套利是什麼？他們在這個設施中沒有看到什麼會為您帶來戰略上或經濟上的好處？

Well, I don't want to speak for them, but obviously, they are expanding their 12-inch fab and they are moving to the small geometry. But for Diodes, since we are -- we do have a need for more capacity for 6-inch, but especially, we really don't have enough capacity for our 8-inch products. So this is just the right match between the 2 companies when we move the product portfolio into the 8-inch. It really suit us from the usage point of view. I think during the speech, you can see we do build in significant revenue and profit and GP in the future, and this fab will be able to provide us, the people, the skill, the capacity and also it's going to be very positive to enter to Diodes' operations.

好吧，我不想代表他們說話，但顯然，他們正在擴大 12 英寸晶圓廠，並且正在轉向小型幾何結構。但對於 Diodes 來說，我們確實需要更多的 6 吋產能，但尤其是我們的 8 吋產品確實沒有足夠的產能。因此，當我們將產品組合轉向 8 英寸時，這正是兩家公司之間的正確匹配。從使用的角度來看，它確實很適合我們。我想在演講中，你可以看到我們未來確實會獲得可觀的收入、利潤和總利潤，這家工廠將能夠為我們提供人員、技能、產能，而這對於進入 Diodes 的運作。

Our next question comes from Shawn Harrison of Longbow Research.

我們的下一個問題來自長弓研究中心的肖恩·哈里森。

Dr. Lu, it didn't say in the press release for the TI facility that you're acquiring the purchase price, is that something you can provide to us? I mean, I'm just trying to figure out, did you pay a lot to get the accretion? I know you usually like a bargain.

盧博士，在TI工廠的新聞稿中沒有說您要獲得購買價格，您可以提供給我們嗎？我的意思是，我只是想弄清楚，你為獲得吸積物付出了很多嗎？我知道你通常喜歡討價還價。

Number one, we do have agreement with TI. The detail of the purchase cannot be disclosed, okay? So -- but 2 things I do can -- able to -- can tell you. One is, it meets my M&A criteria. Remember, my -- one of the key M&A criteria is, need to be accretive within 1 year. And fortunately, this acquisition, it provides immediately accretion and accretions. So now that's what I really pay attention. Number two, we already have said, this is insignificant on the material...

第一，我們確實與 TI 達成了協議。購買細節不能透露好嗎？所以——但是我做的兩件事可以——能夠——可以告訴你。一是它符合我的併購標準。請記住，我的關鍵併購標準之一是，需要在一年內實現增值。幸運的是，這次收購，它提供了立即的增值和增值。所以現在這才是我真正關注的。第二，我們已經說過，這對材料來說無關緊要......

Yes, it's immaterial.

是的，這無關緊要。

Immaterial.

無關緊要。

So from both TI and Diodes' perspective, we're classifying this as immaterial, and therefore, the contracts and the details of the negotiation will not be disclosed.

因此，從 TI 和 Diodes 的角度來看，我們將其視為無關緊要，因此，合約和談判細節將不會被披露。

Got you. That's helpful enough. On your current 8-inch capacity, the Fab 2, where you at right now in terms of production versus, kind of, I know that the target level, which is what, 12,000 wafers a month or something like that?

明白你了。這已經夠有幫助了。就你們目前的 8 吋產能而言，Fab 2 的產量與我所知道的目標水準（每月 12,000 片晶圓或類似水準）相比如何？

Yes. If you remember, start from beginning of last year -- or actually we started working on 8-inch capacity in SFAB 2 since 2017. The first production is in March of 2018, and we are able to ramp it up to about 9,000-wafer a month by December 2018. And we're hoping we start to continue ramp it and maximum capacity in SFAB 2 is only 12,000 a month, 8-inch capacity. And so when we're talking about this, this 8-inch capacity is a full MOSFET for SBR, so typically somewhere around the -- probably 5, 6 layers per wafer, okay. So 256,000-wafer 8-inch equipment wafer layers. Yes, it's a good addition to our discrete, especially MOSFET and SBR's capacity increase.

是的。如果你還記得的話，從去年年初開始——或者實際上我們從 2017 年就開始在 SFAB 2 中開發 8 英寸容量。首次生產於 2018 年 3 月進行，到 2018 年 12 月，我們能夠將產量提高到每月約 9,000 片晶圓。我們希望我們開始繼續提高產量，SFAB 2 的最大產能僅為每月 12,000 個 8 英吋產能。因此，當我們談論這個時，這個 8 英寸容量是 SBR 的完整 MOSFET，因此通常約為每個晶圓 5、6 層，好吧。8吋設備晶圓層數為256,000片。是的，這對於我們分立元件，尤其是MOSFET和SBR的產能提升來說是一個很好的補充。

Yes. So in fourth quarter, the goal is to get to between 8,000 and 9,000, and that's actually where we got to in SFAB 2.

是的。因此，第四季度的目標是達到 8,000 到 9,000 之間，這實際上就是我們在 SFAB 2 中達到的目標。

Yes.

是的。

Okay. And then how quickly will you be able to port your customer base into that fab and have it qualified? Is it within the first half of this calendar year?

好的。然後，您能夠多快地將您的客戶群轉移到該晶圓廠並使其合格？是在今年上半年嗎？

No, no way. First, we need to prepare the process, which may not be taking that long. But if you remember on our SFAB 2, we actually took 1 whole year of 2017 to move in the equipment, prepare the process. And fortunately, on this site, equipment is already there, and we probably need like 6 months to implement the process. Then it'll probably take another 3 months to do qualification, to do this one. And so we'll put it up the product notice to the customer and they say probably, currently, I expect maybe end of the year, we will start to notify our customer, give them the sample. But to feature in ramp, the customer need the full pool and all this one. So it will probably take a while. And that's why it's important for us to continue supporting TI, TI's needs and keep the fab loaded, okay? Then at times when TI demand go down, our demand will go up. And it's able to give us accretive immediately and will continue.

不，沒辦法。首先，我們需要準備流程，這可能不會花那麼長時間。但如果你還記得我們的 SFAB 2，我們實際上花了 2017 年一整年的時間來搬進設備、準備流程。幸運的是，在這個網站上，設備已經在那裡，我們可能需要 6 個月的時間來實施這個過程。然後可能還需要 3 個月的時間來進行資格認證，來做這件事。因此，我們將產品通知發布給客戶，他們可能會說，目前，我預計可能在今年年底，我們將開始通知我們的客戶，給他們樣品。但要在坡道上展示，客戶需要完整的泳池和所有這些。所以可能需要一段時間。這就是為什麼我們繼續支持 TI、TI 的需求並保持晶圓廠的負荷非常重要，好嗎？然後，當 TI 需求下降時，我們的需求就會上升。它能夠立即為我們帶來增值，並將持續下去。

Right. So for the customer qualification, it really depends. And I would say, a range probably from 1 quarter to...

正確的。所以對於客戶資格來說，這確實取決於。我想說，範圍可能從四分之一到...

Couple of years.

許多年。

3 to 4 quarters, it depends on the customer. So it's going to take some time.

3到4個季度，這取決於客戶。所以這需要一些時間。

Yes. And especially, this fab, we expect to support automotive and industrial and the design of that ramp for our -- of the acceptance for a customer to agree to convert, it take a while, okay? And some of the automotive require 1 year or 1.5 years. And so it's really a very critical for us to be able to continue support TI, while we take the time to bring in our product, so we don't want to run into a problem of -- the capacity is empty or capacity is wasted.

是的。特別是，這個工廠，我們希望支持汽車和工業以及坡道的設計——接受客戶同意轉換，這需要一段時間，好嗎？有的汽車需要1年或1.5年。因此，在我們花時間引入我們的產品的同時，能夠繼續支持 TI 對我們來說確實非常重要，因此我們不想遇到產能空缺或產能浪費的問題。

Our next question comes from Tristan Gerra of Baird.

我們的下一個問題來自貝爾德 (Baird) 的特里斯坦·格拉 (Tristan Gerra)。

A follow-up question on this fab from TI. What's the margin profile for the foundry business that you are offering to them? Is that below corporate average?

TI 關於該晶圓廠的後續問題。您提供給他們的代工業務的利潤狀況是多少？這是否低於公司平均？

No, I cannot. And so Tristan, like I said, we cannot disclose. And we have agreement with TI, the detail of the operation cannot disclose. But I'm going to emphasize one more time. It's accretive immediately, okay?

不，我不能。所以特里斯坦，就像我說的，我們不能透露。而且我們和TI有協議，具體操作細節不能透露。但我還要再強調一次。立刻就增值了好嗎？

Okay. And then once you get full access to that fab, presumably in a few years, what percentage of increase does that bring relative to your current total production today? How much incremental capacity percentage-wise is this fab going to give you once you have full access in a few years?

好的。然後，一旦您完全進入該工廠（大概在幾年內），相對於您目前的總產量而言，這會帶來多少百分比的成長？一旦您在幾年內獲得完全訪問權，這家晶圓廠將為您帶來多少增量產能百分比？

I cannot -- seriously, like I said, I cannot really give too much of detail, but I can tell you now, today, the 8-inch is almost loaded -- fully loaded, okay? And some of the 6-inch, it probably is not fully loaded. But the key thing is we do not have, with the agreement, we are able to be accretive immediately. Therefore, any additional will be the gain. Any additional loading from Diodes will be the gain. Now I probably cannot tell you how much gain because then we have disclosed too much of the detail. But loading from Diodes will be able to show more profit. That's for sure, right?

我不能——說實話，就像我說的那樣，我真的不能提供太多細節，但我現在可以告訴你，今天，8 英寸幾乎已經滿載了——滿載了，好嗎？而有些6吋的，很可能還沒滿載。但關鍵是我們沒有，有了協議，我們就能立即增值。因此，任何額外的都將是收益。來自二極體的任何額外負載都將是增益。現在我可能無法告訴你有多少收益，因為那時我們披露了太多細節。但從 Diodes 加載將能夠顯示出更多的利潤。這是肯定的，對吧？

Yes. So Tristan, one thing we can disclose and that the GFAB currently has over 8,000 wafers per month of 8-inch capacity plus approximately 13,000 wafers per month of 6-inch capacity. And if you go through that whole process, that's what we put in the press release, which the total capacity is approximately 256,000 8-inch equivalent layers per month, okay?

是的。Tristan，我們可以透露的一件事是，GFAB 目前每月擁有超過 8,000 片晶圓的 8 英寸產能，加上每月約 13,000 片晶圓的 6 英寸產能。如果你經歷了整個過程，這就是我們在新聞稿中所說的，總產能約為每月 256,000 個 8 英吋等效層，好嗎？

And I wanted to mention, when we talk about 8,000-wafer, that use a traditional CMOS wafer like 20 layers. But for Diodes product, especially for MOSFET and for the SBR, it's not the same number of layers. That's why instead of using wafer, 8,000 wafers are used in total 260 layers a month. And the reason is the product is different and typically CMOS analog product number of layer is much higher. In average above 18 to 20 layer, and our discrete, which is much, much less. And that's why easier way to use is using the layer.

我想提一下，當我們談論 8,000 片晶圓時，它們使用的是 20 層等傳統 CMOS 晶圓。但對於 Diodes 產品，尤其是 MOSFET 和 SBR，層數並不相同。這就是為什麼每月不使用晶圓，而是使用 8,000 個晶圓，總共 260 層。原因是產品不同，通常 CMOS 模擬產品的層數要高得多。平均在18到20層以上，而我們的離散型則少得多。這就是為什麼更簡單的使用方法是使用圖層。

Okay, that's useful. And then a quick follow-up on the earlier question. Is it too early or are you able to see initial order activity now that the Chinese New Year is over? And specifically, what type of back-end capacity do you have? Last year, you had more labor coming back from the Chinese New Year that you expected, and therefore, you had probably a bit more capacity than you expected. How is that shaping up while just the demand basically starting this week with post-Chinese New Year?

好的，很有用。然後快速跟進之前的問題。是不是太早了，還是農曆新年已經結束了，您還能看到初步訂單活動嗎？具體來說，您擁有什麼類型的後端能力？去年，你從農曆新年回來的勞動力比你預期的要多，因此，你的產能可能比你預期的要多一些。需求基本上從農曆新年後的本週開始，情況如何？

Okay. Tristan, you can see we gave the guidance today that -- and the Chinese New Year actually just over a couple of days ago. And so we do already know how many people come back during the Chinese, which means last week -- the Chinese New Year is last week. And New Year over -- is already over Sunday, last Sunday. So we give the guidance. And that guidance is already in consideration of the capacity, the support team, and so I think that guidance reflects the people, performance and the people return from the Chinese New Year. My point is, it's not going to be a big surprise anymore.

好的。特里斯坦，你可以看到我們今天給了指導——而中國新年實際上就在幾天前。所以我們已經知道有多少人在中國春節期間回來，這意味著上週——農曆新年就在上週。新年已經結束了——已經是星期日了，上週日。所以我們給予指導。該指導已經考慮到了能力、支援團隊，因此我認為該指導反映了人員、績效以及中國新年帶來的人員回報。我的觀點是，這不再是個大驚喜。

(Operator Instructions) Our next question comes from the line of Edgar Roesch of Sidoti.

（操作員說明）我們的下一個問題來自 Sidoti 的 Edgar Roesch。

I wanted to ask you a little bit on the automotive side. Certainly, some premium growth being seen in newer systems, whether it's ADAS or connected driving applications? I would assume that more traditional automotive systems like power steering, windows and the like would be a good bit slower. But could you just speak about how the growth trended throughout 2018? And what you're seeing going into the first quarter here?

我想問你一些關於汽車方面的問題。當然，無論是 ADAS 還是連網駕駛應用程序，新系統中都出現了一些溢價增長？我認為較傳統的汽車系統，如動力轉向、車窗等，速度會慢一些。但您能談談 2018 年全年的成長趨勢嗎？您對第一季的情況有何看法？

Right. So this is Emily, maybe let me address the question, right? So even with some of the traditional applications that you mentioned like the power steering, the windows and stuff like that, we also see a lot of change over there implemented brushless DC motor. And with this change that which we've been emphasizing for the last few quarters, we start seeing a lot of contact improvement, especially on the Diodes side, so that's really where we're seeing. So now switching from the traditional to the newer models even if the same function, but it really enrich a lot of features and functionality kind of really helping the contact expansion that we've been talking about.

正確的。這是艾米麗，也許讓我回答這個問題，對吧？因此，即使對於您提到的一些傳統應用，如動力轉向、車窗等，我們也看到了無刷直流馬達的許多變化。透過過去幾季我們一直強調的這一變化，我們開始看到很多接觸改進，特別是在二極體方面，所以這確實是我們所看到的。所以現在從傳統的型號切換到更新的型號，即使功能相同，但它確實豐富了許多特性和功能，確實有助於我們一直在談論的聯絡人擴展。

Okay. Terrific. And then, Dr. Lu, just as you continue to mix up in the more complex devices, do you see that 7% R&D budget being adequate, let's say, a couple of years into the future? Or would we expect that to, maybe, grow a little faster than revenue at some point?

好的。了不起。然後，盧博士，當您繼續混合更複雜的設備時，您認為 7% 的研發預算是否足夠，比如說，未來幾年？或者我們會期望在某個時候成長速度比收入成長快一些？

You remember when I go to talking about 2025, we're hoping all will be driving the GP up to 40%, and revenue 2.5% plus or minus. You remember that is the same we're talking about. Diodes are same. I do intend to increase our model of R&D to 6%. And you'll probably say, oh, 1% more. But don't forget, 1% is the 20% of the total R&D numbers, okay? And number two is, we have the growth on both R&D -- on both discrete and analog. So discrete, the R&D will keep the same as the revenue growth. And so therefore, I don't see a need of significant increase of R&D from our business model. And I think 6%.

你還記得當我談到 2025 年時，我們希望所有人都能將 GP 提高到 40%，收入提高或降低 2.5%。你記得我們正在談論的是同一件事。二極體是一樣的。我確實打算將我們的研發模型提高到 6%。你可能會說，哦，多 1%。但別忘了，1%就是研發總量的20%，好嗎？第二是，我們在研發方面都有成長──離散和模擬方面。如此離散，研發將與營收成長一致。因此，我認為我們的商業模式不需要大幅增加研發。我認為是 6%。

7%.

7%。

7%. I'm sorry.

7%。對不起。

7%.

7%。

7%. Yes, from 5% to 7%. So it's a good increase. And I think that the key thing really is efficiency of using the R&D money, okay. I'm doing, you know, I've been driving how to more effectively to using R&D money. And so far, Diodes is able to efficiently increase our -- efficient control of using our R&D money. And I'm going to tell you that we purchased Pericom. And Pericom product, their IC product is in the 20% -- in 50%, 60% GP. And if you look at Pericom, I'm talking about IC, be it in Pericom IC, not including frequency or control product. And in Emily's speech, you already know our Pericom actually grow 24% of the IC. Pericom IC increased 24% last year. So we are not increasing their R&D money. We keep about the same. And you can see that even with that, we are able to grow 24% last year. So to answer your question, I think we are very loyal to utilize our R&D money.

7%。是的，從 5% 到 7%。所以這是一個很好的成長。我認為關鍵是研發資金的使用效率，好吧。我正在做，你知道，我一直在推動如何更有效地使用研發資金。到目前為止，Diodes 能夠有效地提高我們對研發資金使用的有效控制。我要告訴你的是我們收購了 Pericom。而Pericom的產品，他們的IC產品是在20%——50%、60%的GP。如果你看看 Pericom，我說的是 IC，無論是 Pericom IC，不包括頻率或控制產品。而且在Emily的演講中，你已經知道我們的Pericom實際上成長了24%的IC。Pericom IC 去年成長了 24%。所以我們不會增加他們的研發經費。我們保持大致相同。您可以看到，即便如此，我們去年的成長率仍達到 24%。所以回答你的問題，我認為我們非常忠誠地利用我們的研發資金。

Yes. And then one last one. I understand that the additional Chengdu investment was kind of prescribed in the agreement. Is it geared towards eventual expansion of any kind? Or is it just a change in the equity ownership structure?

是的。然後是最後一張。據我所知，成都的額外投資是在協議中規定的。它是否旨在最終實現任何形式的擴張？還是只是股權結構的改變？

He's talking about the Chengdu equity investment that we talked about in the fourth quarter. Whether -- what's that going to be spent on in the future? Expansions or...

他說的是我們第四季談到的成都股權投資。未來這些錢會花在什麼方面？擴充或...

Okay. In that, we do -- we had 2 items. One is constantly CapEx increase to support our needs for the capacity expansion. That will still continue. The another big money is the building. If you remember, at the beginning when we built Chengdu Phase 1, we give up 1 manufacturing building, 1 R&D building and 1 plating building. And we kind of using up all the majority of our manufacturing building. So we do plan to go to next phase, which is building another 5 floor of the manufacturing floor. And that is the one going to consume a big money. And I just think twice to see we can fully use our space and see there a little bit of our building expansions. So it's still ongoing, and when we have a need we'll start building up the next manufacturing building.

好的。在那方面，我們確實有 2 項。一是不斷增加資本支出，以支持我們產能擴張的需求。這種情況仍然會持續下去。另一項大筆資金是建築。大家還記得嗎，我們成都第一期興建之初，我們放棄了1棟生產大樓、1棟研發大樓和1棟電鍍大樓。我們幾乎用完了我們生產大樓的大部分。所以我們計劃進入下一階段，也就是建造另外 5 層樓的生產車間。那就是要消耗一大筆錢的人。我只是想三思而後行，看看我們可以充分利用我們的空間，並在那裡進行一些建築擴建。所以它仍在進行中，當我們有需要時，我們將開始建造下一個製造大樓。

At this time, I'd like to turn the call over to Dr. Lu for any closing remarks. Dr. Lu?

現在我想把電話轉給盧醫師做總結發言。盧醫生？

Thank you for your participation on today's call. We're looking forward to providing another update on our business next quarter. Operator, you may now disconnect.

感謝您參加今天的電話會議。我們期待下季度提供有關我們業務的另一次更新。接線員，您現在可以斷開連接了。

Thank you, sir. Ladies and gentlemen, this concludes today's conference. Thank you for your participation, and have a wonderful day. You may disconnect your lines at this time.

謝謝你，先生。女士們、先生們，今天的會議到此結束。感謝您的參與，祝您有美好的一天。此時您可以斷開線路。