Diodes Inc (DIOD) 2024 Q2 法說會逐字稿

Good afternoon, and welcome to the Diodes Incorporated second quarter 2024 financial results conference call. (Operator Instructions) And as a reminder, this conference call is being recorded today, Thursday, August 8, 2024.

下午好，歡迎參加 Diodes Incorporated 2024 年第二季財務業績電話會議。(操作員指示) 提醒一下，本次電話會議於今天（2024 年 8 月 8 日，星期四）錄製。

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

現在，我想將電話轉給 Shelton Group 投資者關係部的 Leanne Sievers。Leanne，請繼續。

Good afternoon, and welcome to Diodes second quarter fiscal 2024 financial results conference call. I'm Leanne Sievers, President of Shelton Group, Diodes Investor Relations firm.

下午好，歡迎參加 Diodes 2024 財年第二季財務業績電話會議。我是 Diodes 投資者關係公司 Shelton Group 總裁 Leanne Sievers。

Joining us today are Diodes' President, Gary Yu; Chief Financial Officer, Brett Whitmire; Senior Vice President of Worldwide Sales and Marketing, Emily Yang; and Director of Investor Relations, Gurmeet Dhaliwal.

今天與我們一起參加的有 Diodes 總裁 Gary Yu；財務長 Brett Whitmire；全球銷售與行銷資深副總裁 Emily Yang；以及投資者關係總監 Gurmeet Dhaliwal。

I'd like to remind our listeners that the results announced today are preliminary as they are subject to company finalizing its closing procedures and customary quarterly 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-Q for its fiscal quarter ending June 30, 2024.

我想提醒我們的聽眾，今天宣布的結果是初步的，因為它取決於公司最終完成其結案程序以及公司獨立註冊會計師事務所的例行季度審查。因此，這些結果未經審計，並且在本公司提交截至 2024 年 6 月 30 日的財政季度的 10-Q 表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 is contained in the Private Securities Litigation Reform Act of 1995.

此外，管理層準備好的評論包含前瞻性陳述，這些陳述受風險和不確定性的影響，管理層可能會針對您的問題做出額外的前瞻性陳述。因此，該公司要求受到 1995 年私人證券訴訟改革法案中前瞻性聲明安全港的保護。

Actual results may differ from those discussed today. And therefore, we refer you to a 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, August 8, 2024. 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不同。因此，我們請您參閱本公司向美國證券交易委員會提交的文件中有關風險和不確定性的更詳細討論，包括 10-K 表和 10-Q 表。此外，對公司未來業績的任何預測均代表管理層截至 2024 年 8 月 8 日的估計。Diodes 不承擔將來更新這些預測的義務，因為市場條件可能會或可能不會改變，除非適用法律要求。

Additionally, the company's press release and management's statements during this conference call will include discussions of certain measures and financial information and 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，公司新聞稿和管理層在本次電話會議中的聲明將包括對某些指標和財務資訊以及 GAAP 和非 GAAP 條款的討論。該公司的新聞稿中包括 GAAP 與非 GAAP 項目的定義和對照表，提供了更多詳細資訊。此外，在本次電話會議期間的公司新聞稿和管理層聲明中，我們將歸屬於普通股股東的淨收入稱為 GAAP 淨收入。

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.

對於那些此時無法收聽整個電話會議的用戶，Diodes 網站 www.diodes.com 的投資者關係部分將透過網路廣播提供 90 天的錄音。

And now I'll turn the call over to Diodes President, Gary Yu. Gary, please go ahead.

現在我將電話轉給 Diodes 總裁 Gary Yu。加里，請繼續。

Welcome, everyone. Thank you for joining this conference call today. As reported earlier today, second quarter results exceeded our prior expectations as Diodes demand began to recover from the low point in the first quarter, especially in the computing market in Asia. Additional positive indicators included improvement in distributor inventory levels with a sequential decrease in channel inventory weeks.

歡迎大家。感謝您參加今天的電話會議。正如今天早些時候報導的那樣，第二季度的業績超出了我們之前的預期，因為二極管的需求開始從第一季度的低點回升，尤其是在亞洲的計算市場。其他正面指標包括經銷商庫存水準改善，通路庫存週數連續減少。

Demand improvement during the quarter was most prominent in our computing end market, where Diodes is increasingly participating in the growth of AI servers. In fact, POS across the 3C markets increased significantly over the prior quarter, and Diodes was able to maintain automotive and industrial product revenue at 41% of total due to the content increases in both markets, even though the recovery remains slow due to the ongoing inventory adjustments.

本季的需求改善在我們的運算終端市場最為突出，Diodes 越來越多地參與 AI 伺服器的成長。事實上，3C 市場的 POS 較上一季大幅增加，儘管持續進行庫存調整，復甦仍然緩慢，但 Diodes 仍能將車用與工業產品營收維持在 41% 左右，歸功於兩大市場內容的增加。

As we look to the third quarter, we are guiding for strong revenue growth of over 8% at the midpoint, supported by overall POS growth of more than 7% in the second quarter. Our near-term expectation for gross margin continues to reflect factory underloading related to our wafer service agreements as well as our internal demand.

展望第三季度，我們預計中期營收將強勁成長 8% 以上，這得益於第二季整體 POS 成長 7% 以上。我們對毛利率的近期預期繼續反映與我們的晶圓服務協議以及內部需求相關的工廠負載不足。

However, we expect to continue market expansion toward our target model of 40% as loading improves, combined with the resumption of growth in the automotive and industrial end markets. As global demand strengthens, as we remain focused on driving further operational improvements to deliver increased earnings and cash flow.

然而，隨著裝載量的提高，加上汽車和工業終端市場的恢復成長，我們預計市場將繼續擴大，朝著 40% 的目標模式發展。隨著全球需求增強，我們將繼續致力於推動進一步的營運改進，以實現更高的收益和現金流。

With that, let me now turn the call over to Brett to discuss our second quarter financial results as well as our third quarter guidance in more detail.

說完這些，現在我將電話轉給布雷特，更詳細地討論我們的第二季財務表現以及第三季指引。

Thanks, Gary, and good afternoon, everyone. Revenue for the second quarter 2024 was $319.8 million compared to $302 million in the first quarter of 2024 and $467.2 million in the second quarter 2023. Gross profit for the second quarter was $107.4 million or 33.6% of revenue, which reflects factory underloading at our manufacturing facilities related to our wafer service agreements as well as internal demand. This compares to $99.6 million or 33% of revenue in the prior quarter and $195.4 million or 41.8% of revenue in the prior year quarter.

謝謝，加里，大家下午好。2024 年第二季的營收為 3.198 億美元，而 2024 年第一季的營收為 3.02 億美元，2023 年第二季的營收為 4.672 億美元。第二季的毛利為 1.074 億美元，佔營收的 33.6%，這反映了我們製造工廠與晶圓服務協議相關的工廠負荷不足以及內部需求。相較之下，上一季的營收為 9,960 萬美元，佔營收的 33%，去年同期的營收為 1.954 億美元，佔營收的 41.8%。

GAAP operating expenses for the second quarter were $103.7 million or 32.4% of revenue and on a non-GAAP basis were $90.9 million or 28.4% of revenue, which excludes an $8.3 million restructuring charge, $3.9 million amortization of acquisition related intangible asset expenses, and $0.6 million for officer retirement. This compares to GAAP operating expenses in the prior quarter of $86.6 million or 28.7% of revenue, and in the second quarter 2023 of $105.8 million or 22.7% of revenue. Non-GAAP operating expenses in the prior quarter were $87.6 million or 29% of revenue.

第二季的 GAAP 營業費用為 1.037 億美元，佔營收的 32.4%，非 GAAP 營業費用為 9,090 萬美元，佔營收的 28.4%，其中不包括 830 萬美元的重組費用、390 萬美元的收購相關無形資產攤銷費用以及 60 萬美元的高階主管退休金。相較之下，上一季的 GAAP 營業費用為 8,660 萬美元，佔營收的 28.7%，2023 年第二季的 GAAP 營業費用為 1.058 億美元，佔營收的 22.7%。上一季非公認會計準則營業費用為 8,760 萬美元，佔營收的 29%。

Total other income amounted to approximately $9.1 million for the quarter consisting of $4.2 million of interest income, $4.4 million in unrealized gains from investments, $0.8 million of foreign currency gain, $0.6 million of other income, and $0.9 million in interest expense. Income before taxes and non-controlling interest in the second quarter 2024 was $12.8 million compared to $18.8 million in the previous quarter and $101 million in the prior year quarter.

本季其他總收入約為 910 萬美元，其中包括 420 萬美元的利息收入、440 萬美元的投資未實現收益、80 萬美元的外匯收益、60 萬美元的其他收入和 90 萬美元的利息支出。2024 年第二季稅前和非控股權益前收入為 1,280 萬美元，而上一季為 1,880 萬美元，去年同期為 1.01 億美元。

Turning to income taxes, our effective income tax rate for the second quarter was approximately 20.6%. GAAP net income for the second quarter was $8 million or $0.17 per diluted share compared to $14 million, or $0.30 per diluted share last quarter and $82 million or $1.77 per diluted share in the prior year quarter. Share count used to compute GAAP diluted EPS in the second quarter was 46.3 million shares.

談到所得稅，我們第二季的有效所得稅率約為 20.6%。第二季 GAAP 淨收入為 800 萬美元，即每股攤薄收益 0.17 美元，而上季為 1,400 萬美元，即每股攤薄收益 0.30 美元，去年同期為 8,200 萬美元，即每股攤薄收益 1.77 美元。用於計算第二季 GAAP 稀釋每股盈餘的股票數量為 4,630 萬股。

Non-GAAP adjusted net income in the second quarter was $15.4 million, or $0.33 per diluted share, which excluded net of tax, $7.2 million in restructuring charges, $3.5 million non-cash mark-to-market investment value adjustment, $3.1 million of acquisition related intangible asset costs, and $0.5 million in officer retirement. This compares to $13 million or $0.28 per diluted share in the prior quarter and $73.3 million or $1.59 per diluted share in the second quarter 2023.

第二季非公認會計準則調整後淨收入為 1,540 萬美元，或每股攤薄收益 0.33 美元，其中不包括稅後淨收入、720 萬美元的重組費用、350 萬美元的非現金以市價投資價值調整、310 萬美元的收購相關無形資產成本以及 50 萬美元的高階主管退休金。相較之下，上一季的利潤為 1,300 萬美元，即每股攤薄收益 0.28 美元，2023 年第二季的利潤為 7,330 萬美元，即每股攤薄收益 1.59 美元。

Excluding non-cash share-based compensation expense of $3.4 million GAAP and $2.8 million non-GAAP net of tax for the second quarter, GAAP earnings per share would have increased $0.07 per share and non-GAAP adjusted EPS by $0.06 per share.

若不計第二季 GAAP 非現金股權激勵費用 340 萬美元及非 GAAP 稅後淨額 280 萬美元，GAAP 每股盈餘將增加 0.07 美元，非 GAAP 調整後每股盈餘將增加 0.06 美元。

EBITDA for the second quarter was $41.1 million or 12.8%, of revenue, compared to $48.3 million or 16% of revenue, in the prior quarter and $133.5 million or 28.6%, of revenue in the second quarter 2023. We have included in our earnings release, a reconciliation of GAAP net income to non-GAAP adjusted net income and GAAP net income to EBITDA, which provides additional details.

第二季的 EBITDA 為 4,110 萬美元，佔營收的 12.8%，而上一季為 4,830 萬美元，佔營收的 16%，2023 年第二季為 1.335 億美元，佔營收的 28.6%。我們在收益報告中納入了 GAAP 淨收入與非 GAAP 調整後淨收入以及 GAAP 淨收入與 EBITDA 的對賬，以提供更多詳細資訊。

Cash flow provided by operations was $14.4 million for the second quarter. Free cash flow was a negative $3.5 million, which included $17.9 million for capital expenditures. Net cash flow was a negative $2.9 million, including the paydown of $22.2 million of total debt.

第二季經營活動產生的現金流為 1,440 萬美元。自由現金流為負 350 萬美元，其中包括 1,790 萬美元的資本支出。淨現金流為負 290 萬美元，其中包括償還 2,220 萬美元的總債務。

Turning to the balance sheet, at the end of second quarter, cash, cash equivalents, restricted cash plus short-term investments totaled approximately $277 million. Working capital was approximately $860 million and total debt, including long-term and short-term, was approximately $47 million.

談到資產負債表，截至第二季末，現金、現金等價物、受限現金加上短期投資總額約 2.77 億美元。營運資金約 8.6 億美元，包括長期和短期在內的總債務約為 4,700 萬美元。

In terms of inventory at the end of second quarter, total inventory days were approximately 191 as compared to 184 last quarter. Finished goods inventory days were 79 compared to 67 last quarter. Total inventory dollars increased $32.2 million from the prior quarter to $461.5 million. Total inventory in the quarter consisted of a $27.1 million increase in finished goods, a $3.2 million increase in raw materials, and a $1.9 million increase in work in process. Capital expenditures on a cash basis were $17.9 million for the second quarter or 5.6% of revenue and within our target range of 5% to 9%.

就第二季末的庫存而言，總庫存天數約為 191 天，而上季為 184 天。成品庫存天數為 79 天，上一季為 67 天。總庫存金額較上一季增加 3,220 萬美元，達到 4.615 億美元。本季總庫存包括成品增加 2,710 萬美元、原料增加 320 萬美元以及在製品增加 190 萬美元。第二季現金資本支出為 1,790 萬美元，佔營收的 5.6%，在我們 5% 至 9% 的目標範圍內。

Now, turning to our outlook. For the third quarter of 2024, we expect revenue to be approximately $346 million, plus or minus 3%, representing an 8.2% sequential increase at the midpoint, which is the highest sequential growth in the last 14 quarters.

現在，談談我們的展望。對於 2024 年第三季度，我們預計營收約為 3.46 億美元，上下浮動 3%，中位數為環比增長 8.2%，這是過去 14 個季度中的最高環比增長。

GAAP gross margin is expected to be 34% 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 27.5% of revenue, plus or minus 1%.

預估 GAAP 毛利率為 34%（正負 1%）。非 GAAP 營業費用，即根據收購相關無形資產攤銷進行調整的 GAAP 營業費用，預計約為收入的 27.5%，上下浮動 1%。

We expect net interest income to be approximately $2.5 million. Our income tax rate is expected to be 18.5% plus or minus 3%, and shares used to calculate EPS for the third quarter are anticipated to be approximately $46.6 million. Not included in these non-GAAP estimates is amortization of $3.1 million after tax for previous acquisitions.

我們預計淨利息收入約為 250 萬美元。我們的所得稅率預計為 18.5% 加減 3%，用於計算第三季每股收益的股票預計約為 4,660 萬美元。這些非 GAAP 估算中未包括先前收購的 310 萬美元稅後攤銷費用。

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

說完這些，我現在將電話轉給 Emily Yang。

Thank you, Brett, and good afternoon. Revenue in the second quarter increased 5.9% sequentially and was higher than the midpoint of our guidance. Our global POS increased more than 7% in the quarter and our distributor inventory decreased. As Gary mentioned, we are excited to see continuous improvement in the demand going into the third quarter with stronger beginning backlog and book-to-bill ratio, especially in Asia.

謝謝你，布雷特，下午好。第二季營收季增 5.9%，高於我們預期的中位數。本季度，我們的全球 POS 成長了 7% 以上，而經銷商庫存減少了。正如加里所提到的，我們很高興看到第三季的需求持續改善，期初積壓訂單和訂單出貨比更加強勁，尤其是在亞洲。

Looking at the global sales in the second quarter, Asia represented 77% of revenue, Europe, 15%, and North America 8%. In terms of our end markets, industrial was 23% of Diodes product revenue; automotive, 18%; computing, 26%; consumer 19%; and communications 14% of the product revenue. Our automotive and industrial end markets combined totaled 41%, which is comparable to the last quarter on a percentage basis, but slightly higher on the dollar basis. This is the ninth consecutive quarter above our target model of 40%.

綜觀第二季的全球銷售額，亞洲佔營收的77%，歐洲佔15%，北美佔8%。就我們的終端市場而言，工業佔 Diodes 產品收入的 23%；汽車，18%；計算，26%；消費者19%；以及通訊佔產品收入的14%。我們的汽車和工業終端市場合計佔 41%，按百分比計算與上一季相當，但以美元計算略高。這是連續第九個季度高於我們 40% 的目標模型。

Now, let me review the end markets in greater detail. Starting with automotive market, revenue was 18% of our total product revenue, which was flat with the last quarter on a percentage basis, but 7.6% sequential increase in product revenue.

現在，讓我更詳細地回顧一下終端市場。從汽車市場開始，營收占我們總產品營收的 18%，以百分比計算與上一季持平，但產品營收季增 7.6%。

Inventory rebalancing continued in the second quarter, and we expect this will extend into the third quarter. However, we also see some customer’s inventory getting to healthier levels and demand is more stabilized with some new programs starting to ramp, so we expect a gradual recovery throughout the second half of the year.

庫存再平衡在第二季度繼續進行，我們預計這種趨勢將延續到第三季。不過，我們也看到一些客戶的庫存正在恢復到更健康的水平，而且隨著一些新項目的開始，需求也更加穩定，因此我們預計今年下半年將逐步復甦。

Our demand creation momentum remained strong throughout the quarter with expanding design-ins and design wins across all focus areas, including connected driving, comfort, style, safety, and electrification.

整個季度，我們的需求創造動能依然強勁，所有重點領域的設計和設計均不斷擴大，包括連網駕駛、舒適性、風格、安全性和電氣化。

From a product perspective, our LDO product family, DC-DC, buck converters, transistors, and gate drivers received strong demand from power supply, wireless charging, infotainment, telematics, and lighting applications.

從產品角度來看，我們的 LDO 產品系列、DC-DC、降壓轉換器、電晶體和閘極驅動器在電源、無線充電、資訊娛樂、遠端資訊處理和照明應用方面受到強烈需求。

We also secured design wins for USB PD Type-C charging and video controls for EV cars. Our silicon carbide Schottky diodes and MOSFETs are also gaining traction for inductive charging systems. We are also seeing traction for our linear LED controllers, in taillights and aftermarket applications.

我們還贏得了電動車 USB PD Type-C 充電和視訊控制的設計勝利。我們的碳化矽肖特基二極體和 MOSFET 也在感應充電系統中得到越來越廣泛的應用。我們也看到我們的線性 LED 控制器在尾燈和售後市場應用方面的吸引力。

Diodes SBR products continue to experience strong momentum from our car display, headlight systems, infotainment, and sensor lighting applications. Also during the quarter, our TVS Diodes and transistors won designs and are ramping up volume in DC fans, protection, ADAS, and battery management systems.

Diodes SBR 產品繼續在我們的汽車顯示器、頭燈系統、資訊娛樂和感測器照明應用方面獲得強勁發展勢頭。此外，在本季度，我們的瞬態抑制二極管和電晶體贏得了設計，並且在直流風扇、保護、ADAS 和電池管理系統中的銷售正在增加。

We also continue to see opportunities for automotive clock buffers and PCI Express clocks, along with USB Type-C switches, USB Type-C DisplayPort retimers and active crossbar Muxes in rear seat entertainment, infotainment, ADAS, smart cockpit applications. Additionally, our Hall sensor growth momentum continued this quarter with wins in multiple applications, including fans for the car seats, engine cooling system valves, and window lift motors.

我們也繼續看到汽車時鐘緩衝器和 PCI Express 時鐘以及 USB Type-C 開關、USB Type-C DisplayPort 重定時器和主動交叉多路復用器在後座娛樂、資訊娛樂、ADAS、智慧駕駛艙應用中的機會。此外，本季我們的霍爾感測器繼續保持成長勢頭，並在多個應用領域獲得成功，包括汽車座椅風扇、引擎冷卻系統閥門和車窗升降馬達。

Diodes also continued to focus on expanding our product portfolio with the introduction of 130 new automotive-compliant products in the second quarter covering power protection, battery management systems, brushless DC motors, motor control, infotainment, smart cockpit, ADAS, data line I/O, ESD protection, power management, backlighting, and LED lighting applications.

Diodes 也持續專注於擴大我們的產品組合，第二季推出了 130 種符合汽車標準的新產品，涵蓋電源保護、電池管理系統、無刷直流馬達、馬達控制、資訊娛樂、智慧駕駛艙、ADAS、數據線 I/O、ESD 保護、電源管理、背光和 LED 照明應用。

In the industrial market, second quarter revenue represented 23% of total product, which was flat to the last quarter, but up on the dollar basis. Similar to the auto market, the recovery remains slow due to ongoing inventory rebalancing and slower than expected demand recovery, which may last until the end of the year. While the overall demand is still soft, we are also seeing pockets of growth in areas like medical and aerospace, which are experiencing improving demand.

在工業市場，第二季營收佔總產品的23％，與上一季持平，但以美元計算有所上升。與汽車市場類似，由於庫存再平衡仍在進行中，且需求復甦慢於預期，復甦速度仍然緩慢，可能持續到年底。雖然整體需求仍然疲軟，但我們也看到醫療和航空航太等領域的需求不斷改善。

Despite the market softness, we continue to make progress and gain momentum across a number of products, including our Silicon Carbide products that are gaining traction in the Power Factor Correction, energy storage systems, heating, ventilation, air conditioning, as well as server power supply applications.

儘管市場疲軟，我們仍在多個產品領域繼續取得進展並獲得發展動力，包括我們的碳化矽產品，這些產品在功率因數校正、儲能係統、暖氣、通風、空調以及伺服器電源應用領域越來越受歡迎。

Also in the industrial market, our Schottky and rectifier products are winning in the power products, while bipolar transistors are being designed into solar inverter applications. And our LDO, saw solid demand for fans, Power Tools, and E-meter applications. We also secured a number of design wins for our Contact Image Sensor products in the Automated Optical Inspection, printers, panels, printed circuit board, and battery film inspection applications.

同樣在工業市場，我們的肖特基和整流器產品在電源產品中獲勝，而雙極電晶體則被設計到太陽能逆變器應用中。我們的 LDO 在風扇、電動工具和電子電錶應用方面的需求強勁。我們的接觸式影像感測器產品還在自動光學檢測、印表機、面板、印刷電路板和電池薄膜檢測應用領域獲得了多項設計大獎。

In the computing market, revenue increased approximately 12% sequentially with healthy channel inventory and signs of stronger backlog in Asia. A key highlight in the computing market is Diodes growing content in the AI server area, as the AI datacenter volume continues to expand. We are excited to share that our PCI Express packet switches have been designed into Tier-1 AI data center projects. Along with our PCI Express clock buffers, level translators, standard logic, as well as other discrete products that started to ramp into production.

在計算市場，由於通路庫存充足且亞洲積壓訂單增加，營收季增約 12%。隨著人工智慧資料中心規模的不斷擴大，運算市場的一個關鍵亮點是 Diodes 在人工智慧伺服器領域的不斷增長的內容。我們很高興地告訴大家，我們的 PCI Express 分組交換器已經被設計到 Tier-1 AI 資料中心專案中。我們的 PCI Express 時脈緩衝器、電平轉換器、標準邏輯以及其他分立產品也開始投入生產。

Recently, a Tier-1 EMS customer also named Diodes as one of the key suppliers supporting their AI ecosystem. Due to the rapidly increasing, power requirement in the AI data center applications, we also have additional content opportunities with our power MOSFETs and other discrete products that are being designed into power supply units, backup battery units, thermal DC fans as well as DC-DC s and hybrid switched capacitor units. Diodes timing solutions including crystal oscillators, PCI Express clock ICs, and power management solutions are also seeing traction in AI computing applications.

最近，一家一級 EMS 客戶也將 Diodes 列為支援其 AI 生態系統的關鍵供應商之一。由於人工智慧資料中心應用中的功率需求迅速增長，我們的功率 MOSFET 和其他分立產品也擁有額外的內容機會，這些產品被設計成電源裝置、備用電池裝置、熱直流風扇以及 DC-DC 和混合開關電容器裝置。二極體定時解決方案（包括晶體振盪器、PCI Express 時脈 IC 和電源管理解決方案）也在 AI 運算應用中受到關注。

As one of the industry’s major suppliers of PCI Express Gen5/Gen6 clocks, Diodes has been benefiting from the worldwide data center infrastructure build out. Our SSD switches and power switches, both have solid demand from SSD/HDD in the storage, and in the data center applications.

作為業界 PCI Express Gen5/Gen6 時鐘的主要供應商之一，Diodes 一直受益於全球資料中心基礎設施的建設。我們的 SSD 開關和電源開關在儲存和資料中心應用中都具有來自 SSD/HDD 的強勁需求。

We are also seeing increased adoption of our HDMI ReDrivers, USB crossbar Muxes, and MIPI ReDrivers for laptops, desktop PCs, while our linear ReDrivers are being adapted for GPU cards and gaming notebooks. Also, in the computing market, our Schottky rectifiers has been receiving strong demand from notebook adapters, thin DC fans, and power applications while our high surge TVS and ESD protection devices are winning designs in the DRAM modules.

我們也看到，我們的 HDMI ReDriver、USB 交叉多工器和 MIPI ReDriver 在筆記型電腦和桌上型電腦中的應用日益增多，而我們的線性 ReDriver 也正逐漸應用於 GPU 卡和遊戲筆記型電腦。此外，在運算市場，我們的蕭特基整流器一直受到筆記型電腦適配器、薄型直流風扇和電源應用的強烈需求，而我們的高浪湧 TVS 和 ESD 保護裝置正在 DRAM 模組中獲得設計勝利。

Turning to communications market, on the enterprise side due to slower than expected demand, the inventory depletion rate has been slow, and we expect this may last into the second half before returning to the healthy levels. Within the smartphone market, even though inventory is clean, the recovery will likely be gradual over the coming quarters due to slower than expected demand.

談到通訊市場，企業方面由於需求低於預期，庫存去化速度緩慢，我們預計這種情況可能持續到下半年才恢復到健康水準。在智慧型手機市場，儘管庫存已經清理完畢，但由於需求成長低於預期，未來幾季的復甦可能會比較緩慢。

On the design wins in the communications market, our ultra-low jitter crystal oscillators are being designed into gigabit switches and optical modules for AI networking and datacenter applications. And Diodes protection devices are being adopted in the mobile phone applications, while our low-voltage MOSFETs are also being designed into mobile phones for battery management applications.

在通訊市場的設計勝利方面，我們的超低抖動晶體振盪器被設計到用於人工智慧網路和資料中心應用的千兆交換器和光模組中。而二極體保護元件正在被行動電話應用所採用，而我們的低壓MOSFET也被設計到行動電話中用於電池管理應用。

And lastly, in the consumer market, similar to the PC market, inventory is relatively clean. Although the overall demand in this market was not as strong as we expected, we anticipate some of the new designs will start to ramp in the third quarter.

最後，在消費市場中，與個人電腦市場類似，庫存相對乾淨。儘管該市場的整體需求不如我們預期的那麼強勁，但我們預計一些新設計將在第三季開始增加。

In terms of design momentum, our adjustable current limit power switches and LED controllers saw solid demand in the large screen TVs as well as USB and HDMI applications in TVs and monitors. We’re also seeing solid traction for boost converters in point of sale machines and portable devices. Additionally, we are securing increasing design wins and ramping production of our LED and low-power PCI Express clock generators in sports cameras, smart watches, and home security cameras.

在設計動能方面，我們的可調電流限制電源開關和 LED 控制器在大螢幕電視以及電視和顯示器中的 USB 和 HDMI 應用中表現出強勁的需求。我們也看到升壓轉換器在銷售點機器和便攜式設備中的強勁發展勢頭。此外，我們正在確保越來越多的設計成功，並提高運動相機、智慧手錶和家庭安全攝影機中 LED 和低功耗 PCI Express 時脈產生器的產量。

In summary, as indicated by our comments today, we are encouraged by the signs of improving demand, especially in Asia and in the 3C markets. Coming off the low point in the first quarter, we are guiding for continued strengthening of demand into the third quarter, which at the midpoint of our revenue guidance represents over 8% growth and the highest sequential increase in the last 14 quarters for Diodes. And when combined with our strong design momentum across our end markets, we are well positioned for increasing growth and margin expansion as the global market recover.

總而言之，正如我們今天的評論所表明的那樣，需求改善的跡象令我們感到鼓舞，尤其是在亞洲和 3C 市場。走出第一季的低谷後，我們預計第三季需求將繼續增強，按照我們收入預期的中位數計算，第三季成長超過 8%，是二極體在過去 14 個季度中的最高連續增幅。結合我們在終端市場強勁的設計勢頭，隨著全球市場的復甦，我們完全有能力實現成長和利潤的擴大。

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

現在，我們開始回答問題。操作員？

(Operator Instructions) William Stein, Truist Securities.

（操作員指示）William Stein，Truist Securities。

Congrats on the good quarter and especially the above seasonal revenue guidance. And that's what I wanted to ask about. The sequential that you're guiding to are, as you highlighted, strongest in a while and certainly above typical seasonality. It sounds like either all of that or the majority of it is in the compute end market specifically for data center AI applications. Is that the right way to interpret the guidance or is the better than seasonal guide more broad based than that?

恭喜本季取得良好業績，尤其是上述季節性收入預期。這正是我想問的。正如您所強調的，您所指導的順序是一段時間內最強的，並且肯定高於典型的季節性。聽起來不是全部，就是大部分都在運算端市場，特別是針對資料中心 AI 應用。這是解讀指導的正確方法嗎？

Hi Will, this is Emily. Let me address the question. First of all, thank you.

你好，威爾，我是艾米莉。讓我來解答一下這個問題。首先謝謝你。

I think the 8% guidance is actually based on a couple of areas we look at, right? So we did mention second quarter POS came in very strong and we expect similar momentum into the third quarter. We look at beginning of the backlog, we look at book-to-bill ratio. I think you are right. Majority of the growth is driven by the computing, especially on the AI server data center area with some of the design wins and the ramping of the production. But at the same time, right, if you look at consumer, usually 3Q is the peak for consumer because of the holiday build.

我認為 8% 的指引實際上是基於我們關注的幾個領域，對嗎？因此，我們確實提到第二季的 POS 表現非常強勁，我們預計第三季也將保持類似的勢頭。我們來看看積壓訂單的開始，我們來看看訂單出貨比。我認為你是對的。大部分成長是由運算驅動的，特別是在人工智慧伺服器資料中心領域，一些設計獲得了成功並且產量不斷提升。但同時，如果你看看消費者，通常第三季是消費者的高峰期，因為假期的緣故。

And if you look specifically under communication, the smartphone area, it's also followed a similar pattern, right. So based on all these assumptions, that's the reason we actually came up with that 8.2% guidance growth for the third quarter.

如果你特別關注通訊、智慧型手機領域，它也遵循了類似的模式，對吧。因此，基於所有這些假設，這就是我們實際上得出第三季 8.2% 成長預期的原因。

And then a question about channel inventory. Can you maybe offer us a bit more detail in terms of what that level of inventory is currently and maybe where you expect it to be at the end of next quarter and how long before it's normalized, and it's less of a well, let's say no longer a drag? Thank you.

然後是關於渠道庫存的問題。您能否向我們提供更多細節，例如目前的庫存水準是多少，您預計下個季度末的庫存水準會是多少，以及多久才能恢復正常，不再造成拖累？謝謝。

Yeah, definitely. So, I mentioned, right, first of all, we have a strong POS growth and we also have a decrease in terms of channel inventory and it is still higher than our defined normal range of 11 to 14 weeks. So we actually -- definitely want to continue to focus the POS growth for the third quarter and continue to drive the channel inventory down to the normal level.

是的，確實。所以，我提到，首先，我們的 POS 成長強勁，通路庫存也有所減少，但仍高於我們定義的 11 至 14 週的正常範圍。因此，我們實際上——肯定希望繼續專注於第三季的 POS 成長，並繼續將通路庫存降至正常水平。

It is a little bit hard to estimate the timeframe. But on the other hand, just assume the inventory dollar is the same amount as soon as the POS start growing the channel inventory weeks will change or decrease significantly, right? So that's really where our focus.

估計時間範圍有點困難。但另一方面，只要假設庫存金額相同，一旦 POS 開始成長，通路庫存週數就會顯著變化或減少，對嗎？所以這確實是我們的重點。

At the same time because of the dynamic market situation, we also start seeing a lot more urgent orders or short lead time orders. And in order for us to better serve our customers, it also feels like a little bit higher channel inventory or internal inventory actually better positions us and gives us the flexibility to gain just quick order and market share.

同時，由於市場情勢的動態，我們也開始看到更多的緊急訂單或短交貨期訂單。為了讓我們更好地服務客戶，通路庫存或內部庫存稍微高一點似乎實際上對我們更有利，讓我們能夠靈活地快速獲得訂單和市場份額。

The expedite -- expedited orders?

加急－加急訂單？

I'm sorry. So as you say expedite? So yes, we start seeing a lot of expedites, pull-ins of the orders. and also a very short lead time orders or urgent orders from customers more now than before. So, we view that as also a very positive indicator of the market turning around.

對不起。那麼正如你所說加快速度？所以是的，我們開始看到很多訂單的加速和減少。而且現在客戶的短交貨期訂單或緊急訂單也比以前更多了。因此，我們認為這也是市場好轉的一個非常正面的指標。

David Williams, Benchmark.

大衛威廉斯，基準。

Congrats on the execution and the growth here. It's good to see that return and the strength there.

祝賀這裡的執行和發展。很高興看到他的回歸和實力。

Thank you.

謝謝。

I guess, maybe first, Emily, just thinking about the strength that you're pointing the AI server, particularly in Asia. Do you get a sense that we're seeing any -- maybe orders that are stockpiling ahead of other restrictions that may come down later on this year? Or do you feel like you are shipping maybe to end consumption for consumption that's happening more near term, not something for this just being built?

我想，也許首先，艾米麗，只是考慮一下你所指向的 AI 伺服器的實力，特別是在亞洲。您是否感覺到我們看到了任何東西——也許是在為今年晚些時候可能出台的其他限制措施而囤積的訂單？或者您覺得您運送的東西可能是為了終止近期的消費，而不是為了剛建成的消費？

Yeah. So David, we actually work with the customer very closely and we manage closely with their actual forecast. So, we believe this is actually a real build instead of advanced builds or stuff like that. So, we also have the forecast more than just this month; next month the forecast extended to next year. So, we do see a good momentum. This is just the beginning of the ramp, so we are actually pretty confident that this will continue.

是的。所以，大衛，我們實際上與客戶密切合作，並密切管理他們的實際預測。因此，我們相信這實際上是一個真正的構建，而不是高級構建或類似的東西。所以，我們的預測不只限於這個月；下個月的預測延續到明年。因此，我們確實看到了良好的動力。這只是個開始，因此我們實際上非常有信心這種情況將會持續下去。

And then maybe just on the computing side, if you look across the demand trends you're seeing there, obviously, AI server is doing well. But if you think about your AI or your -- excuse me, your server versus client side mix, how do you think about that? And then maybe as well, if you think about growth, not just in the coming quarter, but longer term, how do you see those two performing over the next several quarters? Thank you.

然後可能僅在計算方面，如果你觀察那裡的需求趨勢，顯然人工智慧伺服器表現良好。但是如果你考慮你的人工智慧或你的——對不起，你的伺服器與客戶端的混合，你會怎麼想？那麼也許同樣，如果您考慮成長，不僅是在下一季度，而是從更長期來看，您認為這兩家公司在未來幾季的表現會如何？謝謝。

Yes, I think overall, AI server or data center will ramp up the volume definitely faster than the regular server. I think even with a regular server we see a lot of stability and it's going to be a slower ramp. But taking into account that inventory is really clean, so any of the improvement from the demand is going to drive additional momentum of the orders and the backlog and the revenues.

是的，我認為總體而言，AI伺服器或資料中心的容量提升速度肯定會比常規伺服器更快。我認為，即使是常規伺服器，我們也能看到很大的穩定性，而且速度會比較慢。但考慮到庫存確實很乾淨，因此需求的任何改善都將推動訂單、積壓和收入的額外成長。

So overall AI servers are still a very small percentage among the overall server market. And we also see the continuous of increasing the percentage overall. So I think the next big one would be more into the edge AI area and that would definitely continue to drive a lot more momentum as well as a faster refresh of the generations. So that's really what we are counting on.

因此總體而言，AI 伺服器在整個伺服器市場中所佔的比例仍然很小。我們也看到整體比例持續增加。因此，我認為下一個重大事件將更多地進入邊緣 ​​AI 領域，這肯定會繼續推動更多的發展勢頭以及更快的更新換代。這正是我們所期望的。

Matt Ramsay, TD Cowen.

馬特·拉姆齊（Matt Ramsay），TD Cowen。

Emily, not that we can't have three sentences on an earnings call this day without talking about AI. So I'll double click on that again.

艾米莉，今天我們在財報電話會議上，不談論人工智慧，也無法說出三句話。因此我將再次雙擊它。

I wonder if you could spend a little bit of time. It's one thing to emphasize, maybe unit dynamics and demand dynamics for AI servers. But I wondered if you might be able to be a little bit more granular and talk about content. Just what -- is this AI server content with one or two server makers or ODMs? Or is it much broader than that across the board? Maybe you could give us a little bit of an idea of the specific components that you're selling in. And if you think about at the server level, what dollar content are we talking about? Ballpark like the --

我想知道您是否可以花一點時間。需要強調的一件事，也許是 AI 伺服器的單位動態和需求動態。但我想知道您是否可以更詳細地談論內容。那麼，這個 AI 伺服器內容是否與一兩家伺服器製造商或 ODM 有關？或者說它的範圍比這廣泛得多？也許您可以向我們稍微介紹一下您所銷售的特定組件。如果你從伺服器層面考慮，我們談論的是什麼美元內容？棒球場就像--

Just anything to calibrate investor expectations because when folks hear AI server wins, they can let their imaginations do a lot of different things, and I just wanted to be a little bit more precise there, if we could? Thank you.

任何事情都可以校準投資者的預期，因為當人們聽到人工智慧伺服器獲勝時，他們可以發揮自己的想像力做很多不同的事情，我只是想更精確一點，如果可以的話？謝謝。

Yes, definitely, right. Where components (inaudible), so we definitely support the -- I would say, complementary chips surrounding the main chipsets and the memory modules and stuff like that.

是的，絕對正確。其中組件（聽不清楚），所以我們絕對支持 - 我想說，圍繞主晶片組和內存模組等的補充晶片。

So I did mention a little bit earlier, we are really, really excited, especially for a key win that is actually on the PCI Express we call the Packet Switch. Some of the other competitors are called the PCI Express Switches. So this is actually with the function to expanding additional PCI Express Ports. So this is really exciting.

我之前確實提到過，我們真的非常興奮，尤其是對於 PCI Express 上我們稱之為分組交換器的一個關鍵勝利。其他一些競爭對手被稱為 PCI Express 交換器。因此，這實際上具有擴展額外 PCI Express 連接埠的功能。這真的非常令人興奮。

It's actually definitely a new momentum that we didn't see before. And so this is definitely more on the content expansion. So on top of the PCI Express Package Switch, we're also see like our PCI Express Clock, Clock Generators and buffers, crystal oscillators, and there's a wide range of different discrete products being used. And this is not just on the GPU card or the main board, this is actually beyond. It can be a power supply unit supporting the AI servers. It can be a backup battery unit, thermal DC fans, or even the DC-DC brick. So, this is really expanding more just on one board. I think that's really exciting.

這實際上絕對是我們以前從未見過的新勢頭。所以這肯定更多的是內容擴充。因此，除了 PCI Express 封裝交換器之外，我們還可以看到 PCI Express 時脈、時脈產生器和緩衝器、晶體振盪器，以及正在使用的各種不同的分立產品。這不僅發生在 GPU 卡或主機板上，實際上還超出了這一點。它可以作為支援AI伺服器的電源單元。它可以是備用電池組、熱直流風扇、甚至是直流-直流電源塊。因此，這實際上只是在一塊板上進行了更多的擴展。我認為這真的非常令人興奮。

So like I said, overall, AI servers or data center, still a small percentage overall, but we do expect the percentage will continue to ramp and when the GPU supply continues to improve, we actually start getting a lot of momentum on the inquiry as well as the design ins and design wins and all of this will be ramping next year. So like I said, this is the initial traction that we’ve seen and we do expect this is what we continue to expect.

所以就像我說的，總的來說，AI 伺服器或資料中心仍然只佔很小的比例，但我們確實預計這一比例將繼續上升，當 GPU 供應繼續改善時，我們實際上開始在詢價以及設計輸入和設計中標方面獲得很大的動力，所有這些都將在明年上升。所以就像我說的，這是我們看到的初步跡象，而我們確實預期這也是我們持續期待的。

I guess is my follow-up question for the team. I'd like to dig in a little bit to the gross margin. We've had obviously a period where cyclicality of the industry had been pretty violent over the last, I don't know, 36 months, we went way up and then we went way down and now we're coming back out, which is great to see. Maybe has there anything changed at all with the rules of thumb about ways to model gross margin as the revenue continues to recover for the company? Any new or different variables there. Any comments on utilization. I just want to make sure we were understanding how the margin impact will be as the company grows forward from the recovery here.

我想這是我要向團隊提出的後續問題。我想稍微深入探討一下毛利率。顯然，我們經歷了一個行業週期性非常劇烈的時期，我不知道，在過去的 36 個月裡，我們一路上漲，然後一路下跌，現在我們又回升了，這是很高興看到的。隨著公司收入的持續恢復，關於毛利率建模方法的經驗法則是否發生了任何變化？那裡有任何新的或不同的變數嗎？關於使用情況的任何評論。我只是想確保我們了解隨著公司從復甦中向前發展，利潤率將受到怎樣的影響。

Yeah, Matt. Hey, this is Brett. Make a few comments. I think Gary may follow up on it. Is -- I think that some of the principal things we've used in the past still definitely apply. The biggest knob that clearly is a part of what we're driving is the mix of our product and the influence that has on margin. And I think something to point to that you see is that we've reiterated foundationally we've gotten and provided stability to this over 40%, this auto and industrial.

是的，馬特。嘿，這是布雷特。提出幾點評論。我認為加里可能會跟進此事。是——我認為我們過去使用過的一些主要方法仍然適用。顯然，我們所推動的最大因素是我們的產品組合及其對利潤的影響。我認為需要指出的是，我們已經從基礎層面重申，我們已經獲得併為汽車和工業領域 40% 以上的業務提供了穩定性。

But if you look back a year ago, that percentage was probably 6% or 7% higher than we are today. And understandable given we're still going through that auto industrial correction. And we're actually quite pleased that in the midst of that we've been able to maintain that above 40%. And as we go forward, what our expectation is that there'd be multiple tailwinds that would support our margin improving over time.

但如果回顧一年前，該比例可能比今天高出 6％ 或 7％。考慮到我們仍在經歷汽車工業的調整，這是可以理解的。我們實際上非常高興，在此期間我們能夠將這一比例維持在 40% 以上。隨著我們不斷前進，我們預計將有多重順風推動我們的利潤率隨著時間的推移而提高。

You'd have the mix of auto and industrial that continues to maintain and grow. The regions that drive a lot of that will continue to strengthen. We're continuing to see the correction and the strength that's particularly in Asia today. I think we'll see that more broadly as we go forward.

汽車和工業的混合體將會繼續維持和成長。那些對此起到很大推動作用的地區將會繼續增強。我們今天繼續看到尤其是在亞洲的調整和走強。我認為，隨著我們不斷前進，我們會更廣泛地看到這一點。

We also will see the overall demands and the volumes that we're driving be able to increase that will improve our utilization. And we're also making a lot of progress in getting a morebroad portfolio of things qualified in some of the factories that we bought over the last four or five years. Particularly pointing to our SPFAB and our GFAB, which is really to get flexibility across our hybrid model across our analog portfolio and our discrete portfolio. And I think each of those elements has a fairly significant impact to firing on all cylinders and continuing to drive growth as we march back to our business model in total.

我們還將看到整體需求和我們推動的數量能夠增加，從而提高我們的利用率。並且，我們在使過去四五年來收購的一些工廠的合格產品範圍更加廣泛方面也取得了很大進展。特別指出我們的 SPFAB 和 GFAB，這實際上是為了在我們的模擬投資組合和離散投資組合的混合模型中獲得靈活性。我認為，當我們全面回歸商業模式時，上述每個因素都對全力以赴和持續推動成長有著相當大的影響。

So Gary, you want to follow that?

那麼 Gary，你想跟進嗎？

Yes, actually, I think Brett brings a very good point here. As for the ultimate automotive industrial, I think we're driving a lot for the content increase in those two areas. We released a lot of new products quarter by quarter in those two areas, which can increase our content in the near future. I'm very confident on that.

是的，實際上，我認為布雷特在這裡提出了一個很好的觀點。至於最終的汽車工業，我認為我們正在大力推動這兩個領域內容的增加。我們在這兩個領域每季都會發布許多新產品，這可以在不久的將來增加我們的內容。我對此非常有信心。

The second here is for the loading. As Brett mentioned about is on process and product porting from external foundry is what we're driving for the couple quarters already. So far the qualification progress is very well and achieved several key milestones.

此處第二個用於加載。正如 Brett 所提到的那樣，我們已經在幾個季度內推動從外部代工廠進行流程和產品的移植。到目前為止，資格進展順利，並實現了幾個關鍵的里程碑。

So we do see our product and also qualifying several key customer side and we're starting to receive EPO in short time. So I got a pretty good confidence on the loading for those two major wafers in the future.

因此，我們確實看到了我們的產品，並且也滿足了幾個關鍵客戶的資格要求，並且我們很快就開始收到 EPO。所以我對未來這兩款主要晶圓的裝載量非常有信心。

(Operator Instructions) Tristan Gerra, Baird.

（操作員指令）Tristan Gerra，Baird。

So for Q3 you've talked about AI content and PC demand. How do you -- and PC demand, notably in Asia? You also talked about consumer potentially peaking and part of that is seasonality. How do you see the overall demand environment in China? There was -- there's been some companies this week talking about incremental weakness in the automotive China market. Are you seeing those trends? And what are the divergent trends that you see in Asia currently from an end demand standpoint for this coming quarter?

因此，對於第三季度，您談到了 AI 內容和 PC 需求。您如何看待個人電腦需求，尤其是在亞洲？您還談到了消費者可能達到峰值，其中一部分是季節性。您如何看待中國整體的需求環境？本周有一些公司談論中國汽車市場的逐漸疲軟。您看到了這些趨勢嗎？從最終需求的角度來看，您認為未來一個季度亞洲目前的不同趨勢是什麼？

Yeah, hi Tristan, this is Emily. So let me address this question.

是的，嗨，特里斯坦，我是艾蜜莉。因此讓我來回答一下這個問題。

In Asia, in China specifically, we continue to focus on content expansion, especially on the auto industrial side as well so overall the demand is a little bit soft, especially on the 3C area from the end consumer consumption point of view. But we’re also seeing some improvement as well. So, I would say all in all.

在亞洲，特別是在中國，我們繼續專注於內容擴展，特別是在汽車工業方面，因此總體需求有點疲軟，特別是從終端消費者消費的角度來看，在3C領域。但我們也看到了一些進步。所以，我想說，總而言之。

We actually view China still a really good potential territory for us. And we actually -- looking at the customer, they really look at, it's called cost, performance value, CP value. As long as Diodes continues to focus and driving the technology and introducing new products, focus on features and functions, walking away from a lot of deep commodity products, which we see most of the competition from the local suppliers, we still see there's a really strong and positive path for Diodes overall to be successful in China and also in Asia overall.

我們實際上認為中國對我們來說仍然是一個非常有潛力的市場。而我們實際上——看著客戶，他們真正看的是，這被稱為成本、績效價值、CP 值。只要 Diodes 繼續專注並推動技術發展、推出新產品、專注於特性和功能，遠離大量深度商品產品（我們看到這些產品主要面臨來自本地供應商的競爭），我們仍然認為 Diodes 在中國乃至整個亞洲都有一條非常強勁和積極的道路可以取得成功。

And then in the past, I think it's fair to say that most of the M&A that you've done was centered around increasing capacity. And I'm assuming that it's probably not on the table even for next year. Are there any technologies, where you feel that could be incremental from a mix standpoint? And how should we be looking at your M&A strategy overall, medium term?

然後在過去，我認為可以公平地說，你們所做的大部分併購都是為了增加產能。我估計明年也可能不會再討論這個話題。您認為從混合角度來看，有哪些技術可以實現漸進式發展？那我們該如何看待您的中期併購策略呢？

Well, actually, no. Hi, Tristan, this is Gary again. Nice to talk to you.

嗯，事實上不是。你好，特里斯坦，我又是加里。很高興和你談話。

So basically, as there's a two wafer fabs we acquired in the past couple of years. One is GFAB in Scotland, the other one is SPFAB in US. And basically, we identify our GFAB as our discrete wafer fab and as well as SPFAB as our analog wafer fab. So we got quite a few technologies like (inaudible), Battery FET and trans MOSFET kind of porting from our external wafer foundry into this wafer fab in Scotland, and also very advantaged China and on the process foundry as well externally, and porting it internally into the fab in South Portland.

基本上，過去幾年我們收購了兩家晶圓廠。一個是蘇格蘭的GFAB，另一個是美國的SPFAB。基本上，我們將 GFAB 定義為我們的分立晶圓廠，將 SPFAB 定義為我們的類比晶圓廠。因此，我們將很多技術，例如（聽不清楚）、電池場效電晶體（FET）和傳輸場效電晶體（MOSFET）等從我們的外部晶圓代工廠移植到蘇格蘭的晶圓廠，同時也將非常有利的中國和外部製程代工廠移植到南波特蘭的晶圓廠。

So I would say that those two kind of big projects probably will be the most important project in Diodes. Try to make sure the technology and process wise and we can cap that internally. At the same time, our design team also develop a newer process and the product within this two wafer, those two wafer fab. Instead of just supporting process.

所以我想說這兩個大項目可能是 Diodes 最重要的項目。嘗試確保技術和流程的合理性，並且我們可以在內部對其進行限制。同時，我們的設計團隊也在這兩個晶圓廠內開發了更新的製程和產品。而不僅僅是支援流程。

Well, I think, Tristan, to add to that in terms of the M&A that you would most likely see us looking at, would be things that would help enable top line and be complementary to the manufacturing footprint we can provide. And so I think over the past, we've had a combination of organic and acquisition related growth. That activity of Gary and Dr. Lu continues, and we actively are continuing to look in that area.

好吧，特里斯坦，我認為，就我們最有可能關注的併購而言，應該包括那些有助於實現營收並補充我們所能提供的製造足蹟的事情。所以我認為，在過去，我們實現了有機成長和收購相關成長相結合。加里和盧博士的活動仍在繼續，我們也積極地繼續觀察該地區。

Yeah, actually. We are very, very careful about us to let the right target for the M&A. And we not only looking for the size, and we're also looking for any synergy, can help that, Diodes more gross revenue and achievement wise like that. So definitely, we're looking forward to that.

是的，確實如此。我們非常非常謹慎，以便為併購找到正確的目標。我們不僅尋求規模，而且還尋求任何協同效應，以幫助二極體獲得更多的總收入和成就。所以我們對此非常期待。

This will conclude our question and answer session. I'd like to turn the conference back over to Gary Yu for any closing remarks.

我們的問答環節將結束。我想將會議交還給 Gary Yu 做結束語。

Thank you, everyone, for participating on today's call. We look forward to reporting our progress on next quarter's conference call. Operator, you may now disconnect.

感謝大家參加今天的電話會議。我們期待在下個季度的電話會議上報告我們的進展。接線員，您現在可以斷開連接了。

The conference has now concluded. Thank you for attending today's presentation, and you may now disconnect your lines at this time.

會議現已結束。感謝您參加今天的演示，現在您可以斷開線路了。