Diodes Inc (DIOD) 2020 Q3 法說會逐字稿

Good Afternoon and welcome to Diodes Incorporated Third Quarter 2020 Financial Results Conference Call. (Operator Instructions) As a reminder, this conference call is being recorded today, Monday, November 9, 2020.

下午好，歡迎參加 Diodes 公司 2020 年第三季財務業績電話會議。（操作員說明）謹此提醒，本次電話會議將於今天（2020 年 11 月 9 日星期一）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' Third Quarter 2020 Financial Results Conference Call. I'm Leanne Sievers, President of Shelton Group Diodes Investor Relations firm. Joining us today are Diodes' Chairman, President and CEO, Dr. Keh-Shew Lu, who is joining us from Taiwan; Chief Financial Officer, Brett Whitmire; Vice President of Worldwide Sales and Marketing; Emily Yang; and Director of Investor Relations, Laura Mehrl.

下午好，歡迎參加 Diodes 2020 年第三季財務業績電話會議。我是 Leanne Sievers，Shelton Group Diodes 投資者關係公司總裁。今天加入我們的是 Diodes 董事長、總裁兼執行長盧克秀 (Keh-Shew Lu) 博士，他來自台灣；財務長布雷特·惠特米爾；全球銷售與行銷副總裁；艾米莉楊；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 are subject to the company finalizing 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 third quarter 2020. 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.

在我把電話轉給盧博士之前，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結算程序和公司獨立註冊會計師事務所的慣例季度審查。因此，這些結果未經審計，並且在公司提交 2020 年第三季的 10-Q 表格之前可能會進行修訂。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 a more detailed discussion of the risks and uncertainties in the company's filings with the SEC, 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, November 9, 2020. 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，我們建議您參閱本公司向 SEC 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（2020 年 11 月 9 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。

Additional to 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.

除了公司在本次電話會議期間發布的新聞稿和管理層聲明外，還將包括以 GAAP 和非 GAAP 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 Chairman, President and CEO, Dr. Keh-Shew Lu. Dr. Lu, please go ahead.

現在我將把電話轉給 Diodes 董事長、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. Third quarter revenue was better than expected. And increased 7.2% sequentially, driven by a strong recovery in Asia, followed by North America, contributing to record revenue in automotive, consumer and computer end markets. Total worldwide point-of-sale revenue increased 19% sequentially and that reached a record in the quarter driven by record POS revenue in Asia at 20%, and 16% growth in both Europe and North America. Our record sales in the automotive market grew 18% sequentially and over 5% year-over-year to 11% of total revenue, reflecting Diodes' continued success in expanding application opportunities across new and existing customers, while further increasing diode semiconductor content per vehicle.

謝謝你，莉安。歡迎大家，感謝您今天加入我們。第三季營收優於預期。在亞洲強勁復甦的推動下，環比增長 7.2%，其次是北美，為汽車、消費和電腦終端市場創紀錄的收入做出了貢獻。全球銷售點總營收季增 19%，本季創下歷史新高，其中亞洲 POS 營收創紀錄成長 20%，歐洲和北美成長 16%。我們在汽車市場的創紀錄銷售額連續成長18%，年成長超過5%，佔總營收的11%，反映出Diodes 在擴大新舊客戶應用機會方面的持續成功，同時進一步增加每輛車的二極管半導體含量。

Additionally, we continued to gain strong momentum with our Pericom IC products in both the automotive and computing markets. And we also saw a resurgence in the consumer market, which has increased approximately 30% from the first quarter of this year.

此外，我們的 Pericom IC 產品在汽車和運算市場上持續保持強勁勢頭。我們也看到消費市場的復甦，比今年第一季成長了約30%。

In fact, our total revenue has increased 10% from the first quarter of 2020 at the onset of the pandemic with net income increasing approximately 35%, demonstrating both the resiliency of our business as well as the solid leverage in our operating model. We expect to further extend our growth momentum as we continue to see broad-based improvements across our target end markets and geographies, which at the mid-point of our fourth quarter guidance represents the highest quarterly revenue in the Company's history. These expectations exclude any contribution from our proposed acquisition of Lite-On Semiconductor that is expected to close at the end of November.

事實上，我們的總收入較 2020 年第一季疫情爆發時增長了 10%，淨利潤增長了約 35%，這既證明了我們業務的彈性，也證明了我們營運模式的堅實槓桿。隨著我們繼續看到目標終端市場和地區的廣泛改善，我們預計將進一步擴大我們的成長勢頭，這在我們第四季度指導的中點代表了公司歷史上最高的季度收入。這些預期不包括我們擬議收購光寶半導體（預計將於 11 月底完成）的任何貢獻。

With that, let me now turn the call over to Brett to discuss our third quarter financial results and our fourth quarter 2020 guidance in more detail.

現在，讓我將電話轉給 Brett，更詳細地討論我們第三季的財務業績和 2020 年第四季的指導。

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

謝謝盧博士，大家下午好。作為今天財務審查的一部分，我將集中評論每個項目的連續變化，我們將向您推薦我們的新聞稿，以更詳細地審查我們的業績以及同比情況-年比較。

Revenue for the third quarter 2020 was $309.5 million, an increase of 7.2% as compared to $288.7 million in the second quarter of 2020. Gross profit for the third quarter was $111.1 million or 35.9% of revenue, an increase of 9.5% or 70 basis points compared to the second quarter 2020 of $101.5 million or 35.2% of revenue.

2020年第三季的營收為3.095億美元，較2020年第二季的2.887億美元成長7.2%。第三季毛利為 1.111 億美元，佔營收的 35.9%，較 2020 年第二季的 1.015 億美元，佔營收的 35.2% 成長 9.5%，即 70 個基點。

GAAP operating expenses for the third quarter 2020 were $73.2 million or 23.7% of revenue and, on a non-GAAP basis, were $68.9 million or 22.3% of revenue, which excluded $4 million of amortization of acquisition-related intangible expense and $0.3 million of acquisition-related costs. This compares to non-GAAP operating expenses in the prior quarter of $64.5 million or 22.3% revenue.

2020 年第三季的GAAP 營運費用為7,320 萬美元，佔營收的23.7%，以非GAAP 計算，營運費用為6,890 萬美元，佔營收的22.3%，其中不包括400 萬美元的收購相關無形費用攤銷和30 萬美元的無形資產攤銷。採購相關成本。相比之下，上一季的非 GAAP 營運費用為 6,450 萬美元，佔營收的 22.3%。

Total other expense amounted to approximately $4.6 million for the quarter including $2.6 million in foreign currency loss and $3.7 million in interest expense, partially offset by $1.6 million of other income and $138,000 of interest income.

本季其他費用總額約為 460 萬美元，包括 260 萬美元的外匯損失和 370 萬美元的利息費用，部分被 160 萬美元的其他收入和 138,000 美元的利息收入所抵銷。

Income before taxes and noncontrolling interest in the third quarter 2020 was $33.3 million compared to $26.1 million in the previous quarter.

2020 年第三季稅前及非控股權益前收入為 3,330 萬美元，上一季為 2,610 萬美元。

Turning to income taxes. Our effective income tax rate for the third quarter was approximately 17.7%.

轉向所得稅。我們第三季的有效所得稅率約為 17.7%。

GAAP net income for the third quarter 2020 was $27.2 million or $0.51 per diluted share, compared to GAAP net income of $21 million, or $0.40 per diluted share, in the second quarter 2020. The share count used to compute GAAP diluted EPS for the third quarter 2020 was 52.7 million shares.

2020 年第三季的 GAAP 淨利潤為 2,720 萬美元，即稀釋後每股 0.51 美元，而 2020 年第二季的 GAAP 淨利潤為 2,100 萬美元，即稀釋後每股 0.40 美元。用於計算 2020 年第三季 GAAP 攤薄每股盈餘的股票數量為 5,270 萬股。

Non-GAAP adjusted net income in the third quarter was $32.8 million or $0.62 per diluted share. We excluded $3.3 million of noncash acquisition-related intangible expense and $2.4 million of acquisition-related financing and other costs. This compares to non-GAAP adjusted net income of $28.6 million or $0.54 per diluted share in the previous quarter.

第三季非 GAAP 調整後淨利為 3,280 萬美元，或攤薄後每股收益 0.62 美元。我們排除了 330 萬美元的非現金收購相關無形費用以及 240 萬美元的收購相關融資和其他成本。相比之下，上一季非 GAAP 調整後淨利潤為 2,860 萬美元，即稀釋後每股收益 0.54 美元。

EBITDA for the third quarter was $63.3 million or 20.5% of revenue compared to $55.3 million or 19.2% of revenue in the prior quarter.

第三季的 EBITDA 為 6,330 萬美元，佔營收的 20.5%，而上一季的 EBITDA 為 5,530 萬美元，佔營收的 19.2%。

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.

我們在收益報告中納入了 GAAP 淨利潤與非 GAAP 調整後淨利潤以及 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 $39.7 million for the third quarter 2020. Free cash flow was $21.9 million for the third quarter, which included $17.8 million of capital expenditures. Net cash flow in the third quarter was a positive $85.2 million, including an additional $105 million drawdown of debt and the paydown of long-term debt by $49.7 million.

2020 年第三季營運產生的現金流為 3,970 萬美元。第三季自由現金流為 2,190 萬美元，其中包括 1,780 萬美元的資本支出。第三季淨現金流為正 8,520 萬美元，其中包括額外提取 1.05 億美元的債務以及償還 4,970 萬美元的長期債務。

Turning to the balance sheet. At the end of the third quarter, cash and cash equivalents plus short-term investments totaled approximately $591 million. Working capital was $893 million and long-term debt, including the current portion, was $346 million.

轉向資產負債表。截至第三季末，現金和現金等價物加上短期投資總計約5.91億美元。營運資金為 8.93 億美元，長期債務（包括當前部分）為 3.46 億美元。

Both our cash and debt balances increased in the quarter as a result of actions we took to prepare for our pending acquisition of Lite-On semiconductor, which is expected to close at the end of November.

由於我們為準備收購光寶半導體（預計將於 11 月底完成）而採取的行動，本季我們的現金和債務餘額均有所增加。

Similar to last quarter, we took advantage of the low interest rate environment and drew down on our credit line as we continued to purchase New Taiwan dollars as a natural hedge against the U.S. dollar since the transaction will be funded in new Taiwan dollars. As of the end of the third quarter, we had borrowed and converted the equivalent of USD $305 million, resulting in our debt and cash balances increasing accordingly.

與上季類似，我們利用低利率環境並提取了信貸額度，繼續購買新台幣作為對美元的自然對沖，因為交易將以新台幣融資。截至三季末，我們已借入並兌換了等值3.05億美元，導致我們的債務和現金餘額相應增加。

In terms of inventory, at the end of the third quarter, total inventory days increased slightly to approximately 120 in the quarter compared to 119 last quarter. Finished goods inventory days were 32 compared to 30 in the second quarter of 2020. Total inventory dollars increased $4.5 million to approximately $260.3 million, which reflects a $2.6 million increase in raw materials and a $2.1 million increase in work in process and a $200,000 decrease in finished goods.

庫存方面，第三季末，總庫存天數小幅增加至本季約120天，上季為119天。成品庫存天數為 32 天，而 2020 年第二季為 30 天。庫存總額增加了 450 萬美元，達到約 2.603 億美元，其中原材料增加了 260 萬美元，在製品增加了 210 萬美元，製成品減少了 20 萬美元。

Capital expenditures on a cash basis for the third quarter 2020 were $17.8 million or 5.8% of revenue, which remains at the low end of our target model of 5% to 9%.

2020 年第三季以現金為基礎的資本支出為 1,780 萬美元，佔營收的 5.8%，仍處於我們目標模式 5% 至 9% 的低端。

Now turning to our outlook. Building on our growth momentum in the third quarter and record POS results, we expect fourth quarter revenue to increase to a record of approximately $324 million, plus or minus 3%, which, at the midpoint, represents growth of 4.7% sequentially and 7.6% year-over-year, which is significantly above typical seasonal results over the past 5 years of down 4%. These revenue expectations exclude any contribution from Lite-On Semiconductor acquisition, which is expected to close at the end of November.

現在轉向我們的展望。基於第三季的成長動能和創紀錄的 POS 業績，我們預計第四季營收將增至創紀錄的約 3.24 億美元，正負 3%，按中點計算，季增 4.7%，季增 7.6%年比下降，明顯高於過去5 年下降4% 的典型季節性結果。這些收入預期不包括光寶半導體收購的任何貢獻，該收購預計將於 11 月底完成。

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 22% of revenue, plus or minus 1%. We expect non-GAAP net interest expense to be approximately $1.5 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 22%，上下浮動 1%。我們預計非 GAAP 淨利息支出約為 150 萬美元。

Our income tax rate is expected to be 18%, plus or minus 3%, and shares used to calculate diluted EPS for the fourth quarter are anticipated to be approximately $53 million.

我們的所得稅稅率預計為 18%，正負 3%，用於計算第四季攤薄每股收益的股票預計約為 5,300 萬美元。

Please note that purchasing accounting adjustments of $3.3 million after-tax for Pericom and previous acquisitions is not included in these non-GAAP estimates. Also not included is $3.3 million of Lite-On acquisition-related financing costs.

請注意，這些非 GAAP 估計中不包括 Pericom 和先前收購的 330 萬美元稅後採購會計調整。還沒有包括與光寶收購相關的 330 萬美元融資成本。

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

話雖如此，我現在將電話轉給艾蜜莉楊。

Thank you, Brett, and good afternoon. In the third quarter, revenue increased 7.2% sequentially, which was at the high end of our guidance due to better-than-expected demand recovery in Asia, followed by North America. Of particular note, Worldwide POS revenue increased 19% sequentially, led by record POS in Asia at 20% and up 16% in both Europe and North America. Channel inventory is the lowest it's been since the end of 2018, with distributor inventory in terms of weeks decreasing quarter-over-quarter and within our defined range of 11 to 14 weeks. We expect distributor inventory to remain within our normal range of 11 to 14 weeks in the near term.

謝謝你，布雷特，下午好。第三季度，營收季增 7.2%，由於亞洲需求復甦優於預期，其次是北美，因此處於我們指引的高端。特別值得注意的是，全球 POS 營收季增 19%，其中亞洲 POS 營收成長 20%，創歷史新高，歐洲和北美成長 16%。通路庫存處於 2018 年底以來的最低水平，分銷商庫存週數環比下降，且在我們定義的 11 至 14 週範圍內。我們預計經銷商庫存近期將保持在 11 至 14 週的正常範圍內。

Looking at the global sales in the third quarter. Asia represented 79% of revenue; Europe, 13%; and North America, 8%.

看看第三季的全球銷量。亞洲佔收入的 79%；歐洲，13%；北美為 8%。

In terms of our end market, consumer represents 27% revenue, mainly driven by consumer pre-Christmas builds; industrial, 22%; communication, 21%; computing, 19%; and automotive, 11% of revenue. We achieved record revenue in automotive, computing and consumer end markets.

就我們的終端市場而言，消費者佔收入的 27%，主要是由消費者聖誕節前的消費推動的；工業，22%；溝通，21%；計算機，19%；和汽車業，佔收入的 11%。我們在汽車、計算和消費終端市場實現了創紀錄的收入。

Now let me review the end market in greater detail...

現在讓我更詳細地回顧一下終端市場...

Beginning with automotive market, as mentioned, Diodes achieved record revenue increasing 5.2% over the prior year period and 18% sequentially, driven by strong sales growth in Asia, followed by North America and Europe. This growth reflects the success achieved by Diodes' total solution sales approach and demand-creation efforts in penetrating new and existing automotive customers and applications, in addition to the steady increase in semiconductor content per vehicle.

如前所述，從汽車市場開始，在亞洲、其次是北美和歐洲的強勁銷售成長的推動下，Diodes 實現了創紀錄的營收比去年同期成長 5.2%，比上一季成長 18%。這一增長反映了 Diodes 整體解決方案銷售方法以及在滲透新的和現有的汽車客戶和應用方面的需求創造努力所取得的成功，以及每輛車的半導體含量的穩步增長。

We're also able to secure several new design wins and grow our automotive business for products, including SBR, Zener diode, switching diodes, power transistors and TVS. High-demand applications, including battery management system, Powertrain, oil pump, 48-volt battery power, automotive lighting and lighting controllers as well as emerging applications like mini-electric vehicle and micro-hybrid also drove our growth.

我們還能夠贏得多項新設計並發展我們的汽車產品業務，包括 SBR、齊納二極體、開關二極體、功率電晶體和 TVS。高需求應用，包括電池管理系統、動力總成、油泵、48伏特電池電源、汽車照明和照明控制器以及微型電動車和微混合動力等新興應用也推動了我們的成長。

Newly released automotive compliance, 40-volt and 5.5-volt DC-DC product family, and LDO has gained increasing market attention with new opportunities and design-ins for infotainment to add ADAS applications. Gate driver ICs and new data line protection products comprising single-, dual- and quad-channel TVS in small package has been successfully designed into various end applications, including infotainment systems, wireless chargers, USB chargers and user interface system.

新發布的汽車合規性 40 伏特和 5.5 伏特 DC-DC 產品系列以及 LDO 憑藉資訊娛樂系統添加 ADAS 應用的新機會和設計，贏得了越來越多的市場關注。閘極驅動器IC 和新型數據線保護產品（包括小型封裝的單通道、雙通道和四通道TVS）已成功設計到各種終端應用中，包括資訊娛樂系統、無線充電器、USB 充電器和使用者介面系統。

Also during the quarter, we continued to gain market share in brushless DC motor controllers, wireless charging, reverse battery and protected load switching applications. We are seeing strong momentum on design-ins for our bipolar junction transistors and LED drivers in LED-based automotive retrofit lamps to replace halogen lamps. We are also seeing BJT design wins in both interior and exterior vehicle lighting, with applications ranging from headlight to the taillight and mood lighting modules.

同樣在本季度，我們繼續獲得無刷直流馬達控制器、無線充電、反向電池和受保護負載開關應用的市場份額。我們看到雙極結型電晶體和基於 LED 的汽車改裝燈中 LED 驅動器的設計勢頭強勁，以取代鹵素燈。我們還看到 BJT 設計在車輛內部和外部照明方面取得了成功，其應用範圍從前燈到尾燈以及情緒照明模組。

In the industrial market, revenue increased over 7% sequentially as customer factories begin to reopen throughout the quarter in both North America and Europe but yet still remain below full production output compared to a year ago. One area of focus for Diodes in the industrial market is providing innovative solutions to support customers in reducing their carbon footprint. Additionally, our switching diode products continue to be used in personal protective equipment by the first responders and health care providers. Similarly, our MOSFET, diodes, crystal, crystal oscillators has been adopted in a number of medical applications, ranging from testing equipment to ventilators, especially those to fight COVID-19.

在工業市場，隨著北美和歐洲的客戶工廠在整個季度開始重新開業，收入環比增長了 7% 以上，但與去年同期相比仍低於全部產量。Diodes 在工業市場的重點領域之一是提供創新解決方案，支援客戶減少碳足跡。此外，我們的開關二極體產品繼續被急救人員和醫療保健提供者用於個人防護設備。同樣，我們的 MOSFET、二極體、晶體、晶體振盪器已被用於許多醫療應用，從測試設備到呼吸機，特別是那些對抗 COVID-19 的應用。

Our switching diodes are also being used in many additional industrial applications, including smart power, high-efficiency HVAC, security and controls, smart energy metering, factory automation, elevators and moving sidewalk control system. In addition, we've seen strong growth for our LDO product family as we continue to see new design wins in industrial, LED lighting, eMeter and power tool applications.

我們的開關二極體也用於許多其他工業應用，包括智慧電源、高效能 HVAC、安全和控制、智慧電能計量、工廠自動化、電梯和自動人行道控制系統。此外，隨著我們不斷在工業、LED 照明、電子錶和電動工具應用中看到新設計的成功，我們的 LDO 產品系列也實現了強勁成長。

We also secured several new design-ins for our linear LED drivers in applications such as defibrillator, ATM UV light, factory automation and LED strip lighting. Our SBR and gate driver products also saw a high level of design activities in embedded systems and in high-performance fans using telecom power systems, medical equipment and industrial control systems.

我們還為線性 LED 驅動器在除顫器、ATM 紫外線燈、工廠自動化和 LED 燈條照明等應用中獲得了多項新設計。我們的 SBR 和閘極驅動器產品還在嵌入式系統和使用電信電源系統、醫療設備和工業控制系統的高性能風扇中進行了高水準的設計活動。

In the consumer market, we achieved record revenue in the quarter as a result of strong recovery in Asia. We saw strong demand for our Boost LED drivers for applications such as earphones, skin beauty masks, UV sanitizer boxes and handheld devices. We also saw tremendous growth for our AC-DC products mainly driven by 25-volt phone charges, small appliances and power adapters as well as new design wins for LDOs, rectifiers and BJTs in charging, TV and set-top box applications.

在消費市場，由於亞洲的強勁復甦，我們在本季實現了創紀錄的收入。我們看到耳機、美容面膜、紫外線消毒盒和手持設備等應用程式對我們的升壓 LED 驅動器的強勁需求。我們也見證了 AC-DC 產品的巨大成長，主要由 25 伏特手機充電、小家電和電源轉接器以及充電、電視和機上盒應用中的 LDO、整流器和 BJT 的新設計成果推動。

We also achieved significant revenue growth for our Haptics controller and headphone amplifier products in portable gaming and consumer smart speaker applications. We also continued to see strong demand for our TVS and switching diodes in the consumer segment, where growth was driven by the white goods, including high-efficiency washing machines, dishwashers, dryers, vacuum cleaners and stoves.

我們的觸覺控制器和耳機擴大機產品在便攜式遊戲和消費性智慧揚聲器應用中也實現了顯著的收入成長。我們也繼續看到消費領域對 TVS 和開關二極體的強勁需求，該領域的成長是由白色家電推動的，包括高效能洗衣機、洗碗機、烘乾機、吸塵器和爐灶。

Turning to communication market, 5G infrastructure continue to be a key focus area, and we are continuing to see expanding opportunities for our products. Due to 5G's high-frequency and limited distance, Small Cells have become increasingly common to improve the coverage and capacity of the network. Our low jitter, high-performance crystal oscillators are needed in certain modules for precision timing needs. In the CPE space, our PCI Express packet switches and clock buffers are finding wide acceptance in many 5G boxes.

談到通訊市場，5G 基礎設施仍然是重點關注領域，我們的產品將繼續看到不斷擴大的機會。由於5G的高頻和有限的距離，Small Cell變得越來越普遍，以提高網路的覆蓋範圍和容量。某些模組需要我們的低抖動、高效能晶體振盪器來滿足精確度時的需求。在 CPE 領域，我們的 PCI Express 封包交換器和時脈緩衝器在許多 5G 裝置中已被廣泛接受。

We also saw strong momentum for PMOS in remote radio units and NMOS for 1KW or larger boost power in 5G base stations to save power consumption. Low voltage Hall sensors, TVS and LDOs also saw increasing design-ins and design wins in smartphone and 5G router application.

我們還看到遠端無線電單元中的 PMOS 以及 5G 基地台中用於 1KW 或更大升壓功率的 NMOS 的強勁勢頭，以節省功耗。低壓霍爾感測器、TVS 和 LDO 在智慧型手機和 5G 路由器應用中的設計和設計也不斷增加。

Lastly, in the computing market, revenue increased over 7% sequentially and also 14% year-over-year to record levels as work-from-home and shelter-in-place continue to drive momentum in notebooks, motherboards, servers and storage applications, in particular, for our Pericom product family.

最後，在計算市場，由於在家工作和就地避難繼續推動筆記型電腦、主機板、伺服器和儲存應用的發展勢頭，收入環比增長超過 7%，同比增長 14%，創下歷史新高。 ，特別是對於我們的Pericom 產品系列。

This quarter, we released 20 output PCI Express Gen 4 and Gen 5 clock buffers, building up on our previous release family of clock buffers and clock generators and enabling us to now offer the most comprehensive clock solutions for server and data center applications. These clock solutions and our frequency control products position us well for the next major server platforms with PCI Express Gen 4 deployment.

本季度，我們發布了20 個輸出PCI Express Gen 4 和Gen 5 時脈緩衝器，它們建立在我們之前發布的時脈緩衝器和時脈產生器系列的基礎上，使我們現在能夠為伺服器和資料中心應用提供最全面的時鐘解決方案。這些時脈解決方案和我們的頻率控制產品使我們能夠在下一代採用 PCI Express Gen 4 部署的主要伺服器平台上佔據有利地位。

Momentum for our Pericom products continued in the quarter, and revenue remained at the second-highest quarterly level since the acquisition. These products continue to dominate in the signal integrity space with PCI Express Gen 4 ReDrivers, passive MUX, and USB [3.1] (corrected by company after the call), Gen 2 interface in PC and motherboard applications. We're also seeing tractions for our fully integrated active MUX for PCI Express Gen 4 and USB 3.2 Gen 2x2 ReDriver Solutions for USB Type-C applications.

Pericom 產品的勢頭在本季度持續，收入保持在收購以來第二高的季度水準。這些產品繼續在訊號完整性領域佔據主導地位，包括 PCI Express Gen 4 ReDrivers、被動 MUX 和 USB [3.1]（由公司在通話後更正）、PC 和主機板應用中的 Gen 2 介面。我們也看到了針對 USB Type-C 應用的 PCI Express Gen 4 和 USB 3.2 Gen 2x2 ReDriver 解決方案的完全整合主動式 MUX 的吸引力。

We also continued to increase market share for switching diodes and TVS products used in desktop and notebook applications, as notebook, PC and Chromebook business continue to be strong, primarily driven by work-from-home, remote education and e-learning demands due to COVID-19.

We also continued to increase market share for switching diodes and TVS products used in desktop and notebook applications, as notebook, PC and Chromebook business continue to be strong, primarily driven by work-from-home, remote education and e-learning demands due to COVID-19.

Our USB Power Switch product line achieved record-high quarterly revenue, and we are seeing more USB type-C adoption with many design wins using our popular cross bar switch products. We have also seen growth momentum for SBR, MOSFET and SKY product in applications like USB Type-C Power Delivery and ATX power charging adopters.

我們的 USB 電源開關產品線實現了創紀錄的季度收入，我們看到越來越多的 USB Type-C 得到採用，並使用我們廣受歡迎的交叉開關產品贏得了許多設計勝利。我們也看到 SBR、MOSFET 和 SKY 產品在 USB Type-C 供電和 ATX 電源充電採用者等應用中的成長動能。

In summary, we're very pleased with another quarter of strong results and continued growth despite the current environment. Our record results in the automotive, consumer and computing markets, combined with record worldwide POS are setting the stage for Diodes to potentially set a new quarterly revenue record next quarter, in what is typically a seasonally down quarter. We look forward to reporting our continued progress and closing our Lite-On Semiconductor acquisition at the end of November to further enhance our future opportunities.

總之，我們對另一個季度的強勁業績和在當前環境下的持續成長感到非常滿意。我們在汽車、消費和計算市場上創紀錄的業績，加上創紀錄的全球 POS，正在為 Diodes 在下個季度（通常是季節性下降的季度）創下新的季度收入紀錄奠定基礎。我們期待報告我們的持續進展並在 11 月底完成對建興半導體的收購，以進一步增強我們未來的機會。

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 Wells Fargo Securities.

（操作員指示）我們的第一個問題來自富國銀行證券公司的加里‧莫布里（Gary Mobley）。

I want to start out asking for a clarification from you, Emily. You mentioned that point-of-sale was up 19% versus revenue being up only 7%. But I think you mentioned that just distributor channel inventory was up sequentially. I'm just trying to reconcile that difference.

我想先要求你做出澄清，艾蜜莉。您提到銷售點成長了 19%，而營收僅成長了 7%。但我認為您提到只有分銷商通路庫存連續上升。我只是想調和這種差異。

Right. Gary, definitely POS increased globally 19%, and Asia has actually increased 20% and North America and Europe increased 16%. Our channel inventory has actually decreased to our lowest ever since the end of 2018. So it's really at a lower end that we define as a normal range.

正確的。加里，POS 在全球範圍內確實增長了 19%，亞洲實際上增長了 20%，北美和歐洲增長了 16%。我們的通路庫存實際上已降至 2018 年底以來的最低水準。所以它實際上處於我們定義的正常範圍的較低端。

Okay. I must have misheard that. Right. And as it relates to your gross margin outlook for the fourth quarter, roughly 36%, and that's on a record quarterly revenue level. And so you've been at 37% or 38% gross margin in the past at a lower revenue level. So I'm wondering what the difference is there? Is it lower utilization? Is it a lower mix of industrial?

好的。我一定是聽錯了。正確的。因為它與第四季度的毛利率前景相關，約為 36%，這是創紀錄的季度收入水準。因此，過去您的毛利率為 37% 或 38%，但收入水準較低。所以我想知道有什麼區別？利用率低嗎？工業的混合程度較低嗎？

Gary, let me address this question, right? So if you really look at the region shift, from the ratio point of view, changed a little bit compared to I would say 2019 Q3, Q2 range, Asia definitely contributing a lot more. And usually, this is the region also that have a little bit lower gross margin percentage. And this also directly impacted pretty much the automotive, industrial, because automotive, industrial usually have been more allocated to Europe and also in North America. So yes, as COVID-19 continue to improve, North America and Europe recover more, we believe that will help us.

加里，讓我來回答這個問題，對嗎？因此，如果你真正觀察地區變化，從比率的角度來看，與 2019 年第三季、第二季範圍相比，亞洲的變化肯定更大。通常，這也是毛利率較低的地區。這也直接影響了汽車和工業，因為汽車和工業通常更多地分配給歐洲和北美。所以，是的，隨著 COVID-19 的持續改善，北美和歐洲的復甦更多，我們相信這將對我們有所幫助。

Our next question comes from the line of Shawn Harrison of Loop Capital.

我們的下一個問題來自 Loop Capital 的 Shawn Harrison。

My first question has to do with distribution. I'm just wondering if you're getting any signs from distributors. Let's say, in Asia first and then in the Western world next, if they'd like to add additional inventory given that you're seeing strong demand -- I don't know what your lead times are doing, maybe you could discuss that -- and channel inventory is at the lowest level in 2 years. So it seems like there's the potential for restocking to occur at some point in time in the near future.

我的第一個問題與分發有關。我只是想知道你是否從經銷商那裡得到了任何跡象。比方說，首先在亞洲，然後在西方世界，如果他們想增加額外的庫存，因為你看到了強勁的需求——我不知道你的交貨時間是多少，也許你可以討論一下——渠道庫存處於兩年來最低水平。因此，似乎有可能在不久的將來的某個時間點進行補貨。

Shawn, nice to talk to you. So definitely, if you look at our channel inventory, it's really more on the lower end. As you can see, based on our Q4 guidance, we actually definitely look closely to our booking trend, to our backlog situation as well as channel inventory and the POS trend, right? So that's the reason we actually guided Q4, what you're seeing right now. So definitely, we look closely to all these things combined and take the strategy from there.

肖恩，很高興和你說話。所以，如果你看看我們的渠道庫存，你會發現它確實更多處於低端。正如您所看到的，根據我們第四季度的指導，我們實際上肯定會密切關注我們的預訂趨勢、積壓情況以及通路庫存和 POS 趨勢，對嗎？這就是我們實際指導第四季度的原因，正如您現在所看到的那樣。因此，我們肯定會密切關注所有這些因素的結合，並從中製定策略。

Emily, do you think distributors will continue to work down your inventory in the fourth quarter? Or will they try to at least hold it steady?

Emily，您認為經銷商會在第四季繼續減少您們的庫存嗎？或者他們會嘗試至少保持穩定嗎？

Our strategy is keeping within the normal range, 11 to 14 weeks. And definitely, if the inventory channel is too low, it's not beneficial to Diodes. So we're definitely not planning to lower more of the distribution inventory. So again, we try to maintain within the 11 to 14 weeks range that we define as a normal range.

我們的策略是維持在正常範圍內，11到14週。當然，如果庫存渠道太低，對 Diodes 不利。因此，我們絕對不打算減少更多的分銷庫存。因此，我們再次嘗試將其維持在我們定義的正常範圍內 11 至 14 週範圍內。

Great. And then as a follow-up, Brett, if my math is right, I think you said you borrowed $305 million so far. So is there another, I don't know, $125 million, $150 million that you still have to borrow or transfer over for the deal to close, and that's what we should base kind of the go-forward interest expense off of?

偉大的。然後，作為後續行動，Brett，如果我的數學正確的話，我想你說你到目前為止借了 3.05 億美元。那麼，是否還有另外一個，我不知道，1.25 億美元、1.5 億美元，你仍然需要藉入或轉讓才能完成交易，這就是我們應該以此為基礎的遠期利息支出？

Yes, Shawn. That's right. Yes, you got it exactly right, so...

是的，肖恩。這是正確的。是的，你說得完全正確，所以...

$100 million or $150 million, sorry.

抱歉，1 億美元或 1.5 億美元。

It's $150 million is what we would expect to borrow in fourth quarter.

我們預計第四季借款額為 1.5 億美元。

Our next question comes from Matt Ramsay of Cowen.

我們的下一個問題來自 Cowen 的 Matt Ramsay。

I don't know for Dr. Lu or for Emily, maybe you could walk us through a little bit in more detail by end market segment, the strength of your fourth quarter guidance, it's up, I think, pretty materially versus where the consensus had modeled it. Obviously, the POS revenue is strong, and you called that out. But maybe you could walk us through a little bit, by division, particularly talking a little bit about automotive, where we've seen a marked acceleration as that industry has recovered.

我不知道陸博士或艾米麗，也許您可以透過終端細分市場向我們詳細介紹一下您第四季度指導的強度，我認為，與共識相比，它已經大幅提高對其進行了建模。顯然，POS 收入很強勁，您也指出了這一點。但也許你可以按部門引導我們了解一下，特別是談論一下汽車行業，隨著該行業的復甦，我們看到了明顯的加速。

Sure, Matt. Yes, let me start with automotive, right, segment I see very strong momentum in Asia, and we definitely see that momentum will continue into our fourth quarter. We also start seeing North America and Europe regions started with a good momentum of recovery, and we do expect that momentum continues, right? At the same time, we've been working on the content expansion, and that will continue to be our strategy to expand our dollar content. And then I will go into the industrial. I think overall, factory closure in North America and Europe, we start seeing a lot of improvement. We also start seeing the production output getting close to 100%. And we also -- I mean from all this data with regional improvement from North America and Europe, we're also pretty upbeat about the industrial for the fourth quarter.

當然，馬特。是的，讓我從汽車領域開始，我看到亞洲的勢頭非常強勁，而且我們肯定看到這種勢頭將持續到第四季度。我們也開始看到北美和歐洲地區開始出現良好的復甦勢頭，我們確實預計這種勢頭會持續下去，對嗎？同時，我們一直致力於內容擴展，這將繼續成為我們擴展美元內容的策略。然後我將進入工業領域。我認為總體而言，北美和歐洲的工廠關閉後，我們開始看到很多改善。我們也開始看到產量接近 100%。我的意思是，從所有這些數據以及北美和歐洲地區的改善來看，我們對第四季的工業也非常樂觀。

And then for communication, like I explained before, our smartphone is actually in the communication and with a smartphone, especially 5G smartphone market, the cycle shifted a little bit. So we're actually seeing continued strong momentum into this segment together with 5G infrastructure. We continue to see a really strong design-in and also design win momentum in this area. And then for the computing, this is an area of a lot of shelter-in-place. We've seen a lot of good resell in the fourth quarter -- third quarter and second quarter already. And now we do expect some of the momentum will continue to carry through. And for the consumer, right, usually, fourth quarter is not a strong quarter, but we also noticed the shelter-in-place continued to drive some of the gaming consoles that I talked about last quarter and also anything related to fitness and health. I think the IoT-related, I would say, applications that we're still seeing good growth momentum in this area.

然後對於通信，就像我之前解釋的那樣，我們的智慧型手機實際上是在通訊中，並且有了智慧型手機，特別是5G智慧型手機市場，週期發生了一些變化。因此，我們實際上看到了這一領域以及 5G 基礎設施的持續強勁勢頭。我們繼續看到這一領域非常強勁的設計導入和設計獲勝勢頭。對於計算來說，這是一個有很多就地避難所的區域。我們在第四季、第三季和第二季已經看到了很多良好的轉售。現在我們確實預期一些勢頭將繼續延續。對於消費者來說，通常情況下，第四季度並不是一個強勁的季度，但我們也注意到，就地避難繼續推動了我上季度談到的一些遊戲機以及與健身和健康相關的任何事情。我認為與物聯網相關的應用程式在該領域仍然具有良好的成長勢頭。

So across the board, we're seeing almost every single end market segment showing some momentum to grow and also across all the regions.

因此，總的來說，我們看到幾乎每個終端細分市場都顯示出一定的成長勢頭，而且在所有地區也是如此。

That's really helpful. I guess the next follow-on question to that is, as we go into maybe the first half of next year, and we wouldn't -- you guys aren't going to guide that yet, obviously. But if you can maybe remind us what would normal seasonality look like in the first and second quarters for your business and if there's any particular things given we're still in the recovery from COVID. And maybe you could talk a little bit about if there's anything that might be different this year that we should flag for seasonality in the first half of next year.

這真的很有幫助。我想下一個後續問題是，當我們進入明年上半年時，我們不會——顯然，你們還不會指導這一點。但如果您能提醒我們，您的業務第一季和第二季的正常季節性情況會是什麼樣子，以及考慮到我們仍處於從新冠疫情中恢復的過程中，是否有任何特殊情況。也許你可以談談今年是否有任何不同，我們應該在明年上半年標記季節性。

I think right now, it's very difficult to predict seasonality. We -- now we still go ahead and assume the seasonality like before, which is 1Q go down, probably, say, 3% to 5%; then 2Q going back up, 5% to 10%; 3Q, so we're probably 5%; then 4Q going down. We just go ahead assume that normal seasonality. Now it may be very strange like 4Q this year instead of going down average 4%, 5%, we were actually going up 4%, 5%. So if you go to look at it,, it's very difficult due to the virus issues. And another thing is the Europe and U.S., the virus has not really settled down yet. And -- but the Asia look like it's more settled now, okay? So at this moment, we're just thinking the seasonality will be the same. But since Diodes, majority of our business is in Asia, and therefore, we -- even automotive, industrial, we still have a lot of the business in Asia. Therefore, our thinking is it will benefit more than our competitors.

我認為現在很難預測季節性。現在我們仍然繼續假設季節性因素，就像以前一樣，即第一季下降，可能會下降 3% 到 5%；然後第二季回升，5%到10%；第三季度，所以我們可能是 5%；然後第四季下降。我們繼續假設正常的季節性。現在可能很奇怪，就像今年第四季一樣，我們實際上上漲了 4%、5%，而不是平均下降 4%、5%。所以如果你去看它，由於病毒問題，這是非常困難的。還有一點就是歐洲和美國，病毒還沒有真正平息下來。而且──但亞洲現在看起來更穩定了，好嗎？所以目前，我們只是認為季節性會是一樣的。但自 Diodes 以來，我們的大部分業務都在亞洲，因此，我們——甚至汽車、工業領域，我們在亞洲仍然有很多業務。因此，我們認為它將比我們的競爭對手受益更多。

Just one more quick one from me, and then I'll jump back in the queue. I noticed that the folks at Lite-On have reported their revenue for the September quarter, and I think it's up 3% year-over-year, maybe 4% sequentially versus the June quarter. For the pieces of the business that you plan on acquiring by the end of the month, Dr. Lu, anything unusual or different to call out in their business conditions? Just -- I know it's a volatile time for everyone. So I just -- if there was anything unusual there that was worth calling out. We'd appreciate it.

只要我再快一點，然後我就會跳回隊伍中。我注意到光寶公司的人員已經報告了 9 月份季度的收入，我認為同比增長了 3%，與 6 月份季度相比可能連續增長 4%。盧博士，對於您計劃在本月底收購的業務部分，他們的業務狀況有什麼不尋常或不同的地方嗎？只是——我知道這對每個人來說都是一個動盪的時期。所以我只是——如果有什麼不尋常的事情值得指出。我們將不勝感激。

I think when we acquired LSC, we had certain assumptions. And then when we see it now, we really can't see not much of difference, okay? The one we're looking for more is long-term. I think we -- from a synergy point of view, we have a much longer-term view, which is like market synergy, product synergy, customer synergy and manufacturing synergies. And from the first 3 synergies, it takes a long time, much longer time to be able to mature or to get it, okay, because you are talking about design-in and all those activities, it takes 1 to 2 years especially automotive, it could be get 2 to 3 years before we can get that synergy. So, the one short-term one where we can get the synergy is the loading manufacturing synergies. If you -- currently, their manufacturing is way underloaded probably 40% to 50% loading. And we quickly try to qualify our Diodes product to be able to manufacture with their manufacturing.

我認為當我們收購LSC時，我們有一定的假設。當我們現在看到它時，我們真的看不出有多大區別，好嗎？我們尋求更多的是長期的。我認為，從協同的角度來看，我們有更長遠的觀點，例如市場協同、產品協同、客戶協同和製造協同。從前 3 個協同效應來看，需要很長、更長的時間才能成熟或獲得它，好吧，因為你談論的是設計和所有這些活動，需要 1 到 2 年的時間，尤其是汽車領域，我們可能需要兩到三年的時間才能獲得這種協同效應。因此，我們能夠獲得綜效的一個短期綜效是裝載製造綜效。如果你——目前，他們的製造負載嚴重不足，可能有 40% 到 50% 的負載。我們很快就嘗試驗證我們的 Diodes 產品是否能夠與他們的製造一起生產。

And we think that ramping will be starting from second quarter next year and probably will be up to about 70% loaded by the end of next year. Okay. So, this is much quicker, we can bring the synergy in. But one thing, we know is their product GP due to the loading issue, the product -- their GP is about 13%, 14%. So it will really pull down our total GP next year, but we will try to bring it up. And one thing is it will be accretive immediately. This is the key thing, even their GP is not as good as the Diodes GP and -- and the wafer fab, the manufacturing is underloaded, but we're still hoping -- or we still can see they will be breakeven next year at the end or the total year will be breakeven with the improvement of the manufacturing loading. And the total -- we believe that from the share purchase back and the interest payment, those 2 at the end, we should be able to be accretive, probably improve our EPS about $0.30, 2021.

我們認為，擴容將從明年第二季開始，到明年年底負載率可能會達到 70% 左右。好的。所以，這要快得多，我們可以發揮協同作用。但有一件事，我們知道他們的產品 PP 由於加載問題，他們的產品 G​​P 約為 13%、14%。因此，這確實會降低我們明年的總大獎賽總成績，但我們會努力提高它。有一件事是它會立即增值。這是關鍵，即使他們的 GP 不如 Diodes GP，而且晶圓廠、製造負荷不足，但我們仍然希望，或者我們仍然可以看到他們明年將實現盈虧平衡。隨著製造負荷的改善，年底或全年將實現損益平衡。總的來說，我們相信，透過股票回購和利息支付，最後這兩項，我們應該能夠實現增值，到 2021 年，我們的每股盈餘可能會提高約 0.30 美元。

(Operator Instructions) Our next question comes from the line of Tristan Gerra of Baird.

（操作員說明）我們的下一個問題來自 Baird 的 Tristan Gerra。

A quick question on your manufacturing overall. What do you expect your utilization rates to be in Q4? And are you looking at acquiring more capacity given the trends that we see low inventories, some pockets of price increases?

關於您的整體製造的一個簡短問題。您預計第四季的使用率是多少？鑑於我們看到庫存較低、部分價格上漲的趨勢，您是否正在考慮獲得更多產能？

Can you repeat the question one more time?

你能再重複一次這個問題嗎？

Yes. So the question is, what do you expect your utilization rates to be this coming quarter? And also given the backdrop of very lean distributor inventories, and we're also seeing some pockets of price increases for products like MOSFET, which all points to strong demand, so are you looking at acquiring potentially more capacity ahead given those trends.

是的。所以問題是，您預計下個季度的使用率是多少？此外，考慮到分銷商庫存非常精簡的背景，我們還看到 MOSFET 等產品的價格出現一些上漲，所有這些都表明需求強勁，因此考慮到這些趨勢，您是否正在考慮未來獲得更多的產能。

So Brett, do you like -- go ahead, Dr. Lu.

那麼布雷特，你願意嗎－－繼續吧，盧博士。

Well, that is really the growth for next year, we're going to focus on is Diodes growth, okay? And the reason is LSC gross margin is very low, okay? So next year, we'll focus on design-ins for both Diodes and automotive -- and LSC products. But for the revenue, we're thinking most of them will be coming from the growth of Diodes product. We don't think the LSC product will be growing that much, okay? And therefore, the utilization for Diodes manufacturing would be improved because if we see the growth and we see that the Diodes manufacturing utilization will be improved. For the LSC manufacturing, what we want to do will be qualify some products from -- capable produced by LSC -- qualified Diodes products capable produced by LSC and majority of the utilization improvement will be coming from non-Diodes manufacturers. We still have a lot of wafer and at some AT (assembly/test) outside of Diodes. And therefore, that is the portion -- that would be the products we're going to focus on, to bring in those products from outside Diodes' operation into LSC operations, to improve utilization.

嗯，這確實是明年的成長，我們將重點放在 Diodes 的成長，好嗎？原因是LSC毛利率很低，好嗎？因此，明年，我們將重點關註二極體和汽車以及 LSC 產品的設計。但就收入而言，我們認為其中大部分將來自 Diodes 產品的成長。我們認為 LSC 產品不會成長那麼多，好嗎？因此，二極體製造的利用率將會提高，因為如果我們看到成長，我們就會看到二極體製造的利用率將會提高。對於 LSC 製造，我們想要做的是使一些產品符合 LSC 能夠生產的合格 Diodes 產品的要求，並且大部分利用率的改進將來自非 Diodes 製造商。我們仍然有很多晶圓和 Diodes 之外的一些 AT（組裝/測試）。因此，這就是我們將重點關注的產品，將這些產品從 Diodes 外部運營引入 LSC 運營，以提高利用率。

Right. So Tristan, let me -- yes, let me add a little bit on top of Dr. Lu's comment, right? So remember, we actually acquired GFAB in Scotland, and we're also ramping up additional capacity at Fab 8-inch in-house as well. And in addition to what Dr. Lu just mentioned, LSC, both in the fabrication capacity and also assembly capacity, we believe with all this combined plan that we have in place should be really good to support our 2021 target growth year. So that's pretty much our internal capacity strategy for a longer term. So it fitted really well with our past few acquisitions and positioned really well for our growth.

正確的。那麼特里斯坦，讓我——是的，讓我在陸博士的評論之上補充一點，對嗎？所以請記住，我們實際上收購了蘇格蘭的 GFAB，我們還在內部增加 8 吋晶圓廠的額外產能。除了陸博士剛才提到的之外，LSC 無論是在製造能力還是組裝能力方面，我們相信，透過我們制定的所有這些綜合計劃，應該能夠很好地支持我們 2021 年的目標增長年。這基本上就是我們的長期內部產能策略。因此，它非常適合我們過去的幾次收購，並且非常有利於我們的成長。

Okay. Great. And then a quick follow-up. You mentioned Pericom ramping in automotive. Are we at the early inning of that ramp? And what's the content and market share implications because Pericom has had, over the past, I would say, 18, 24 months, a very successful ramp in server. So is automotive incremental at this point?

好的。偉大的。然後快速跟進。您提到 Pericom 進軍汽車領域。我們正處於坡道的早期階段嗎？內容和市場份額的影響是什麼，因為 Pericom 在過去的 18、24 個月裡在伺服器方面取得了非常成功的成長。那麼汽車產業目前是否處於增量階段？

Yes. I think like I mentioned before, all these applications is really at a very early stage of adoption and a lot of new applications I talked before related to Pericom product family are more in the next generation of ADAS infotainment systems and stuff like that. So yes, to answer your question, it's at the beginning of this whole cycle.

是的。我認為就像我之前提到的，所有這些應用程式確實處於採用的非常早期的階段，我之前談到的與Pericom 產品系列相關的許多新應用程式更多地出現在下一代ADAS 資訊娛樂系統等中。所以，是的，回答你的問題，現在是整個週期的開始。

At this time, I'd like to turn the call over to Diodes' management for any closing remarks.

此時，我想將電話轉給 Diodes 管理層以供結束發言。

Thank you for your participation on today's call. Operator, you may now disconnect.

感謝您參加今天的電話會議。接線員，您現在可以斷開連接了。

Thank you. Ladies and gentlemen, this concludes the conference call. You may disconnect your lines at this time.

謝謝。女士們、先生們，電話會議到此結束。此時您可以斷開線路。