Entegris Inc (ENTG) 2021 Q4 法說會逐字稿

Good day, and welcome to the Entegris Fourth Quarter 2021 Earnings Release Conference Call. Today's call is being recorded. At this time, I would like to turn the call over to Mr. Bill Seymour, VP of Investor Relations. Please go ahead, sir.

美好的一天，歡迎參加 Entegris 2021 年第四季度收益發布電話會議。今天的電話正在錄音。此時，我想將電話轉給投資者關係副總裁 Bill Seymour 先生。請繼續，先生。

Good morning, everyone. Earlier today, we announced the financial results for our fourth quarter and full year 2021. Before we begin, I would like to remind listeners that our comments today will include some forward-looking statements. These statements involve a number of risks and uncertainties, and actual results could differ materially from those projected in the forward-looking statements. Additional information regarding these risks and uncertainties is contained in our most recent annual report and subsequent quarterly reports that we have filed with the SEC. Please refer to the information on the disclaimer slide in the presentation.

大家，早安。今天早些時候，我們公佈了 2021 年第四季度和全年的財務業績。在開始之前，我想提醒聽眾，我們今天的評論將包括一些前瞻性陳述。這些陳述涉及許多風險和不確定性，實際結果可能與前瞻性陳述中預測的結果大不相同。有關這些風險和不確定性的其他信息包含在我們最近提交給 SEC 的年度報告和隨後的季度報告中。請參閱演示文稿中免責聲明幻燈片上的信息。

On this call, we will also refer to non-GAAP financial measures as defined by the SEC and Regulation G. You can find reconciliation tables in today's news release as well as on the IR page of our website at entegris.com.

在本次電話會議中，我們還將參考 SEC 和 G 條例定義的非 GAAP 財務指標。您可以在今天的新聞稿以及我們網站 entegris.com 的 IR 頁面上找到對賬表。

On the call today are Bertrand Loy, our CEO; and Greg Graves, our CFO. With that, I'll hand the call over to Bertrand.

今天的電話會議是我們的首席執行官 Bertrand Loy；還有我們的首席財務官 Greg Graves。有了這個，我會把電話交給 Bertrand。

Thank you, Bill, and good morning to all. I will start by saying that I am extremely pleased with our fourth quarter results, which capped off another record year for Entegris. I'm very proud of what our team achieved in 2021, especially in light of the challenging operating environment we faced throughout the year.

謝謝你，比爾，大家早上好。首先，我對我們第四季度的業績感到非常滿意，這為 Entegris 又一個創紀錄的年份畫上了句號。我為我們的團隊在 2021 年取得的成就感到非常自豪，特別是考慮到我們全年面臨的充滿挑戰的運營環境。

During the fourth quarter, sales of $635 million grew 23% year-on-year and 10% sequentially. Our growth was strong across all 3 divisions as we benefited from robust industry growth and record demand for our products and solutions. EBITDA margin increased significantly to over 31% of sales and non-GAAP EPS of $0.96 was up 35% year-over-year. These fourth quarter results exceeded expectations and were driven in large part by our team successfully fighting through many of the supply chain hurdles that impacted us last year.

第四季度，銷售額為 6.35 億美元，同比增長 23%，環比增長 10%。由於我們受益於強勁的行業增長以及對我們的產品和解決方案的創紀錄需求，我們在所有 3 個部門的增長都非常強勁。 EBITDA 利潤率顯著增長至銷售額的 31% 以上，非公認會計原則每股收益 0.96 美元同比增長 35%。這些第四季度的業績超出了預期，很大程度上是由於我們的團隊成功克服了去年影響我們的許多供應鏈障礙。

Looking at the full year 2021, we achieved record sales of $2.3 billion, up 24%, all 3 of our divisions experienced strong top line growth and delivered significant margin expansion in 2021. Our outperformance for the year in semiconductor applications was driven in large part by our strong position and wins with leading-edge solutions like liquid filtration, advanced deposition materials, selective edge and other areas of increasing importance to our customers across the semiconductor ecosystem.

縱觀 2021 年全年，我們實現了創紀錄的 23 億美元銷售額，增長了 24%，我們所有 3 個部門均實現了強勁的收入增長，並在 2021 年實現了顯著的利潤率增長。我們在半導體應用領域的出色表現在很大程度上受到了推動憑藉我們的強勢地位，並憑藉液體過濾、先進沉積材料、選擇性邊緣和其他對我們整個半導體生態系統的客戶越來越重要的領域等領先的解決方案贏得勝利。

In addition to our semiconductor-focused solutions during 2021, sales of the Aramus high-purity bags used for COVID-19 vaccines exceeded $50 million. And looking further ahead, we are generating strong interest for these solutions for use with non-COVID biologics.

除了我們在 2021 年以半導體為重點的解決方案外，用於 COVID-19 疫苗的 Aramus 高純度袋的銷售額超過 5000 萬美元。展望未來，我們對這些用於非 COVID 生物製劑的解決方案產生了濃厚的興趣。

Wrapping up the financial results for 2021. Gross margins increased, albeit modestly due to the COVID-related cost pressures, but we once again showcased the leverage in our model with EBITDA up 29% and non-GAAP EPS up 35% year-on-year.

總結 2021 年的財務業績。毛利率有所增加，儘管由於與 COVID 相關的成本壓力而有所增加，但我們再次展示了我們模型中的槓桿作用，EBITDA 同比增長 29%，非 GAAP 每股收益同比增長 35%年。

During 2021, we allocated $489 million of capital, which included reinvestments in our business of $211 million in CapEx and $168 million in R&D, and we'll return $111 million to shareholders in dividends and buybacks. On top of that, we repaid $150 million of net debt.

2021 年，我們分配了 4.89 億美元的資本，其中包括 2.11 億美元的資本支出和 1.68 億美元的研發再投資，我們將向股東返還 1.11 億美元的股息和回購。最重要的是，我們償還了 1.5 億美元的淨債務。

Our 2021 corporate social responsibility program was another highlight for the year. Some of our accomplishments include publishing our first CSR annual report, contributing an additional $3 million to the Entegris Foundation, which is focused on providing stem scholarships to women and individuals from underrepresented communities. To date, Entegris has contributed $5 million to the fund with the goal of investing more than $30 million in stem scholarships and internships by 2030.

我們的 2021 年企業社會責任計劃是今年的另一個亮點。我們的一些成就包括發布了我們的第一份企業社會責任年度報告，向 Entegris 基金會額外捐款 300 萬美元，該基金會專注於為來自代表性不足的社區的女性和個人提供幹獎學金。迄今為止，Entegris 已向該基金捐款 500 萬美元，目標是到 2030 年投資超過 3000 萬美元用於 Stem 獎學金和實習。

During the year, the percentage of diverse members of our Board of Directors increased to almost 40%, well on our way to our 2030 goal of 50%. And from an ESG ratings point of view, we increased our EcoVadis rating to silver and our MSCI score to an A rating.

在這一年裡，我們董事會多元化成員的比例增加到近 40%，我們正在朝著 2030 年 50% 的目標邁進。從 ESG 評級的角度來看，我們將 EcoVadis 評級提高到銀牌，將 MSCI 評分提高到 A 級。

On the M&A front, we completed the acquisition of BASF's Precision Micro chemicals business, which we have already migrated to our SAP platform. We are currently running 100% of our global operations on 1 single instance of SAP, which allows greater end-to-end process optimization and visibility. These advantages have served us very well in the past 2 years as we have effectively managed complex supply chain risks very effectively across our global platform. With all of our recent tuck-in acquisitions integrated into SAP, this provides, obviously, a great foundation for the future integration of CMC Materials.

在併購方面，我們完成了對巴斯夫精密微化學品業務的收購，我們已經將其遷移到我們的 SAP 平台。我們目前在 1 個 SAP 實例上運行 100% 的全球運營，這可以實現更大的端到端流程優化和可見性。這些優勢在過去 2 年中為我們提供了很好的服務，因為我們在我們的全球平台上非常有效地管理了複雜的供應鏈風險。隨著我們最近的所有收購都集成到 SAP 中，這顯然為 CMC 材料的未來集成奠定了良好的基礎。

Which then leads me to our pending acquisition of CMC Materials. As I said, when we announced this transaction, we have long had tremendous respect for CMC Materials technology, its team and its reputation for operational excellence. We are very excited about the potential of this transaction to meaningfully expand our served markets, enhance our customer relationships and create new value for our customers.

這讓我想到了我們即將收購的 CMC Materials。正如我所說，當我們宣布這項交易時，我們長期以來一直非常尊重 CMC Materials 技術、其團隊及其卓越運營的聲譽。我們對此次交易的潛力感到非常興奮，這將有意義地擴大我們所服務的市場、加強我們的客戶關係並為我們的客戶創造新價值。

As a reminder, the combined company will have a resilient business model with approximately 80% of unit-driven revenue. And we expect the transaction to be significantly accretive to non-GAAP earnings in the first year following close. We continue to expect the transaction will close in the second half of 2022 once we satisfy all of the customary closing conditions, including approval by CMC Materials shareholders and approvals on the United States and certain foreign antitrust and competitive laws.

提醒一下，合併後的公司將擁有一個彈性的商業模式，大約 80% 的單位驅動收入。我們預計該交易將在交易完成後的第一年顯著增加非公認會計原則的收益。我們繼續預計，一旦我們滿足所有慣例成交條件，包括 CMC Materials 股東的批准以及美國和某些外國反壟斷和競爭法的批准，該交易將在 2022 年下半年完成。

On that point, last week, the mandatory waiting period on the U.S. antitrust laws expired without any objection to the acquisition. And the date for the CMC shareholder vote to approve the transaction was set for March 3.

就在上週，美國反壟斷法的強制等待期到期，對收購沒有任何異議。 CMC 股東投票批准該交易的日期定為 3 月 3 日。

In addition, we have started to focus on integration planning so we can hit the ground running immediately after the close. During the period between sign and close, we will be spending a great deal of time analyzing the various parts of CMC's portfolio of businesses to assess their respective long-term strategic fit to the combined platform, actively identify areas of revenue synergies and potential candidates for sale.

此外，我們已經開始專注於整合規劃，這樣我們就可以在交易完成後立即開始運作。在簽署和關閉期間，我們將花費大量時間分析 CMC 業務組合的各個部分，以評估它們各自與合併平台的長期戰略契合度，積極確定收入協同效應領域和潛在候選人銷售。

No final determination has been made as of today on this final point. And of course, as you know, until closing, Entegris and CMC will continue to operate as 2 completely separate businesses.

截至今天，尚未就這最後一點做出最終決定。當然，如您所知，在關閉之前，Entegris 和 CMC 將繼續作為兩個完全獨立的業務運營。

Wrapping up 2021, our excellent operating performance showcased the strength of our team's execution in our highly differentiated, unit-driven business model. As I said throughout last year, given the persistent supply chain issues, I cannot say enough how proud and grateful I am of the dedication, resilience and perseverance of our team.

結束 2021 年，我們出色的運營業績展示了我們團隊在高度差異化、單位驅動的業務模式中的執行力。正如我去年所說的那樣，鑑於持續存在的供應鏈問題，我對我們團隊的奉獻精神、韌性和毅力感到非常自豪和感激。

Looking ahead to 2022, semi market demand is expected to remain very strong driven by robust chip demand and high industry CapEx. All of this bolstered by accelerated digitalization, smartphones, IoT and high-performance computing, to name just a few.

展望 2022 年，在強勁的芯片需求和高行業資本支出的推動下，半導體市場需求預計將保持強勁。所有這一切都得益於加速的數字化、智能手機、物聯網和高性能計算等。

The semiconductor industry ecosystem was tested in 2021 and responded well given the circumstances. We expect 2022 will likely be another year where the industry will struggle to meet the strong demand. And while the supply chain issues are expected to ease, we expect they will persist to some degree, for most of 2022 as a result of the lingering COVID-induced supply chain inefficiencies.

半導體行業生態系統在 2021 年進行了測試，並在當時的情況下反應良好。我們預計 2022 年可能又是該行業難以滿足強勁需求的一年。雖然供應鏈問題預計會緩解，但我們預計，由於 COVID 引發的供應鏈效率低下揮之不去，在 2022 年的大部分時間裡，它們將在一定程度上持續存在。

Looking at our business, we expect our sales growth in 2022 to range from 15% to 17%. Let me unpack that for you. To start, for the full year 2022, we expect the market based on our unit CapEx mix will be up approximately 10%. And given our strong position and wins in the new logic and memory nodes, we expect to outperform the market by approximately 3 to 5 points, consistent with what we laid out during our recent Analyst Day.

縱觀我們的業務，我們預計 2022 年的銷售額增長將在 15% 至 17% 之間。讓我為你打開包裝。首先，對於 2022 年全年，我們預計基於我們單位資本支出組合的市場將增長約 10%。鑑於我們在新邏輯和內存節點中的強勢地位和勝利，我們預計將跑贏市場約 3 到 5 個百分點，這與我們在最近的分析師日期間所製定的一致。

In addition, we expect a little bit more than 2 points of growth from the impact of the BASF Precision Micro chemicals business acquisition and continued growth in our Life Sciences high-purity bag business. We also expect EBITDA flow through to continue to be in line with our target model, and we expect to achieve a full year 2022 non-GAAP EPS in excess of $4.10. To be clear, the guidance I just provided does not include the impact from the pending CMC acquisition.

此外，我們預計巴斯夫精密微化學品業務收購的影響和我們生命科學高純度袋業務的持續增長將帶來超過 2 個百分點的增長。我們還預計 EBITDA 流量將繼續符合我們的目標模型，我們預計 2022 年全年非 GAAP 每股收益將超過 4.10 美元。需要明確的是，我剛剛提供的指導不包括即將進行的 CMC 收購的影響。

In summary, this is an exciting time for Entegris. We have increased conviction in the secular growth of the semiconductor market, demand for our products and solutions continues to be at record levels and our relevance in the value chain has never been higher. In addition, the pace of no transitions for both logic and memory continue to be strong, and device architectures are becoming much more complex. This is great news, as you know, for Entegris because the unique set of capabilities we have built around process materials and materials purity will be key enablers of these new chip architectures. And as we have laid out, this will translate into a steadily expanding Entegris content per wafer.

總之，對於 Entegris 來說，這是一個激動人心的時刻。我們對半導體市場的長期增長更加堅信，對我們產品和解決方案的需求繼續處於創紀錄水平，我們在價值鏈中的相關性從未如此高。此外，邏輯和內存的無轉換步伐繼續強勁，設備架構變得更加複雜。如您所知，這對 Entegris 來說是個好消息，因為我們圍繞工藝材料和材料純度構建的獨特功能集將成為這些新芯片架構的關鍵推動力。正如我們所闡述的，這將轉化為每片晶圓的 Entegris 含量穩步擴大。

Finally, I want to take a moment to thank our customers for the trust and confidence they place in Entegris. And once again, thank the Entegris teams around the world for their incredible work and grit in such dynamic times. Now let me turn the call to Greg. Greg?

最後，我想花一點時間感謝我們的客戶對 Entegris 的信任和信心。再次感謝世界各地的 Entegris 團隊在如此充滿活力的時代所做的令人難以置信的工作和勇氣。現在讓我把電話轉給格雷格。格雷格？

Thank you, Bertrand, and good morning, everyone. Our fourth quarter capped off another record year for Entegris. Our sales in Q4 were $635 million, up 23% year-over-year and up 10% sequentially. GAAP and non-GAAP gross margins were both 46.5%, above our guidance and up 90 basis points sequentially.

謝謝你，伯特蘭，大家早上好。我們的第四季度結束了 Entegris 的又一個創紀錄的年份。我們第四季度的銷售額為 6.35 億美元，同比增長 23%，環比增長 10%。 GAAP 和非 GAAP 毛利率均為 46.5%，高於我們的預期，並連續上升 90 個基點。

For the full year, gross margins were just over 46%, up versus 2020, driven by volume leverage, which more than offset the well-documented headwinds from COVID and the related supply chain inefficiencies.

在銷量槓桿的推動下，全年毛利率略高於 46%，與 2020 年相比有所上升，這足以抵消 COVID 帶來的有據可查的不利因素以及相關的供應鏈效率低下。

We expect gross margin to be approximately 46.5% both on a GAAP and non-GAAP basis in Q1. We also expect gross margins will improve throughout the year and be approximately 47% for all of 2022.

我們預計第一季度按公認會計原則和非公認會計原則計算的毛利率約為 46.5%。我們還預計毛利率將全年提高，到 2022 年全年約為 47%。

GAAP operating expenses were $136 million in Q4 and included $17 million of non-GAAP items from amortization of intangible assets, transaction and other costs. Non-GAAP operating expenses in Q4 were $119 million. We expect GAAP operating expenses will be $150 million to $152 million and non-GAAP operating expenses will be $126 million to $128 million in Q1. Q4 GAAP operating income was $160 million.

第四季度 GAAP 運營費用為 1.36 億美元，其中包括來自無形資產攤銷、交易和其他成本的 1700 萬美元非 GAAP 項目。第四季度的非公認會計原則運營費用為 1.19 億美元。我們預計第一季度 GAAP 運營費用將在 1.5 億美元至 1.52 億美元之間，非 GAAP 運營費用將在 1.26 億美元至 1.28 億美元之間。第四季度 GAAP 營業收入為 1.6 億美元。

Non-GAAP operating income was $177 million or 28% of revenue, up 39% year-on-year and up 16% sequentially. Q4 adjusted EBITDA was approximately $200 million and over 31% of revenue. EBITDA margin for the year was over 30%, up over 100 basis points compared to 2020.

非美國通用會計準則營業收入為 1.77 億美元，佔收入的 28%，同比增長 39%，環比增長 16%。第四季度調整後的 EBITDA 約為 2 億美元，佔收入的 31% 以上。全年 EBITDA 利潤率超過 30%，與 2020 年相比上升超過 100 個基點。

Moving to below the operating line. Our GAAP and non-GAAP tax rate was 20% for the quarter, higher than our guidance of 18.5%, in part driven by less favorable geographic income mix. For the full year 2022, we expect both our GAAP and non-GAAP tax rate to be approximately 17%. It's worth noting for modeling purposes that the first quarter typically has the lowest tax rate of the year. To be clear, we have not assumed any impact from potential tax reform in the 17% tax rate guidance.

移動到操作線下方。本季度我們的 GAAP 和非 GAAP 稅率為 20%，高於我們 18.5% 的指導，部分原因是地理收入組合不利。對於 2022 年全年，我們預計我們的 GAAP 和非 GAAP 稅率均約為 17%。值得注意的是，出於建模目的，第一季度的稅率通常是一年中最低的。需要明確的是，在 17% 的稅率指導中，我們並未假設潛在的稅制改革有任何影響。

Q4 GAAP diluted EPS was $0.87 per share. Non-GAAP EPS of $0.96 per share was up 35% year-over-year and 4% sequentially.

第四季度 GAAP 攤薄後每股收益為 0.87 美元。每股 0.96 美元的非公認會計原則每股收益同比增長 35%，環比增長 4%。

Turning to our performance by division. Q4 sales of $188 million for SCEM were up 11% year-over-year and 7% sequentially. Growth was primarily driven by advanced deposition materials, formulated cleans and selective etch chemistries. As we referenced last quarter, SCEM was the most impacted by supply chain constraints during the year. Adjusted operating margin for SCEM was 25% for the quarter. The sequential increase in margin was driven primarily by the higher volumes. The significant year-over-year margin increase was driven by the volume improvement and the impact of a discrete inventory valuation adjustment taken in Q4 of 2020 that did not recur in Q4 2021.

轉向我們按部門劃分的表現。 SCEM 第四季度銷售額為 1.88 億美元，同比增長 11%，環比增長 7%。增長主要由先進的沉積材料、配方清潔劑和選擇性蝕刻化學物質推動。正如我們上個季度提到的，SCEM 在這一年中受供應鏈限制的影響最大。本季度 SCEM 調整後的營業利潤率為 25%。利潤率的連續增長主要是由於銷量增加。利潤率同比顯著增長是由銷量改善和 2020 年第四季度進行的離散庫存估值調整的影響推動的，該調整在 2021 年第四季度沒有再次發生。

Q4 sales of $259 million for MC were up 26% from last year and up 15% sequentially. Growth was strong across all product lines in MC in 2021, especially in liquid filtration driven by strong traction in advanced logic and memory nodes and in gas filtration and purification which benefited from strong activity in new fab construction and strong demand from our OEM customers.

MC 第四季度銷售額為 2.59 億美元，比去年增長 26%，環比增長 15%。 2021 年，MC 的所有產品線都實現了強勁增長，特別是在先進邏輯和內存節點的強勁牽引力推動的液體過濾和氣體過濾和淨化方面，這得益於新晶圓廠建設的強勁活動和我們 OEM 客戶的強勁需求。

Adjusted operating margin for MC was 36% for the quarter, up year-over-year and sequentially, also driven primarily by higher volumes.

本季度 MC 調整後的營業利潤率為 36%，同比和環比增長，這也主要受銷量增長的推動。

Q4 sales of $198 million for AMH were up 30% versus last year and up 6% sequentially. Year-on-year growth was strongest in wafer handling and fluid handling. In addition, sales of Aramus products significantly contributed to the growth in AMH during 2021. Adjusted operating margin for AMH was 23%, up slightly year-over-year and up over 100 basis points sequentially. The AMH margin improvement was driven primarily by higher volumes.

AMH 第四季度銷售額為 1.98 億美元，比去年增長 30%，環比增長 6%。晶圓處理和流體處理的同比增長最為強勁。此外，Aramus 產品的銷售對 2021 年 AMH 的增長做出了重大貢獻。AMH 調整後的營業利潤率為 23%，同比小幅增長，環比增長超過 100 個基點。 AMH 利潤率的提高主要是由於銷量增加。

Fourth quarter cash flow from operations was $116 million and was $400 million for the full year. Free cash flow was $39 million in Q4 and $190 million for the full year. Our 2021 free cash flow reflects our choice to invest in new capacity to support future growth and in working capital to support customer demand and protect our supply chain. CapEx for the quarter was $77 million, and for the full year was $211 million.

第四季度運營現金流為 1.16 億美元，全年為 4 億美元。第四季度的自由現金流為 3900 萬美元，全年為 1.9 億美元。我們 2021 年的自由現金流反映了我們選擇投資新產能以支持未來增長和營運資本以支持客戶需求和保護我們的供應鏈。本季度的資本支出為 7700 萬美元，全年為 2.11 億美元。

Consistent with what we outlined in the Analyst Day, in 2022, we expect to spend approximately $500 million in total CapEx with $225 million for our new facility in Taiwan. 2022 is expected to be our peak year for overall CapEx spending.

根據我們在分析師日中概述的內容，我們預計 2022 年的總資本支出約為 5 億美元，其中 2.25 億美元用於我們在台灣的新設施。預計 2022 年將是我們整體資本支出支出的高峰年。

During Q4, we distributed approximately $11 million for our quarterly dividend, and we repurchased $17 million of our shares. As we said when we announced the acquisition of CMC Materials, we are suspending our share buyback program, but we are maintaining our quarterly dividend, which we have recently increased 25% to $0.10 per share.

在第四季度，我們為季度股息分配了大約 1100 萬美元，並回購了 1700 萬美元的股票。正如我們在宣布收購 CMC Materials 時所說的那樣，我們將暫停股票回購計劃，但我們將維持季度股息，最近我們將股息提高了 25% 至每股 0.10 美元。

Now for our Q1 outlook. We expect sales to range from $630 million to $650 million. We expect GAAP EPS to be $0.81 to $0.86 per share and non-GAAP EPS to be $0.96 to $1.01 per share.

現在來看我們的第一季度展望。我們預計銷售額將在 6.3 億美元到 6.5 億美元之間。我們預計 GAAP 每股收益為 0.81 至 0.86 美元，非 GAAP 每股收益為 0.96 至 1.01 美元。

In summary, I would like to express my gratitude to the entire Entegris team for a great year in 2021 and look forward to another record year in 2022. I would also like to take this opportunity to say we look forward to closing the CMC acquisition and welcoming our new colleagues to the Entegris team.

綜上所述，我要感謝整個 Entegris 團隊在 2021 年的偉大一年，並期待 2022 年再創紀錄。我也想藉此機會說，我們期待完成對 CMC 的收購和歡迎我們的新同事加入 Entegris 團隊。

Operator, we'll now open up for questions.

接線員，我們現在開始提問。

(Operator Instructions) We'll take our first question from Toshiya Hari with Goldman Sachs.

（操作員說明）我們將向高盛的 Toshiya Hari 提出第一個問題。

Congratulations on a very strong year. Bertrand, as my first question, I wanted to ask about your 2022 outlook. You mentioned that expectation for the market is for the market to be up 10%. Can you differentiate between MSI wafer starts and the CapEx side of your business? And perhaps more importantly, you noted that you expect your outperformance to be somewhere in the 3% to 5% range on an organic basis. I was hoping you could unpack that for us a little bit, which segments, which product areas do you expect to be the biggest drivers? And then I have a quick follow-up.

祝賀這一年非常強勁。伯特蘭，作為我的第一個問題，我想問一下您對 2022 年的展望。您提到市場的預期是上漲 10%。您能否區分 MSI 晶圓啟動和您業務的資本支出方面？也許更重要的是，您指出您預計您的優異表現在有機基礎上會在 3% 到 5% 的範圍內。我希望你能為我們解開一點，哪些細分市場，哪些產品領域你認為是最大的驅動力？然後我有一個快速跟進。

Toshiya. So 10% indeed is the blend for the industry going into 2022. We are expecting MSI to be in the mid- to high-single digits. And right now, we are thinking about CapEx to be in the mid-teens for 2022. So the outperformance, as you know, will be driven mostly by many more transitions that we expect both in logic and in memory. The timing of those node transitions is still something that needs to be confirmed by some of our customers. And that's why we have this range of about 3 to 5 points of outperformance, and that's really more of a function of the timing of those node transitions.

俊哉。所以 10% 確實是進入 2022 年的行業混合比例。我們預計 MSI 將處於中高個位數。現在，我們正在考慮到 2022 年資本支出將保持在十幾歲左右。因此，如您所知，出色的表現將主要由我們預期的邏輯和內存方面的更多轉變推動。這些節點轉換的時間仍然需要我們的一些客戶確認。這就是為什麼我們有大約 3 到 5 點的優異表現，這實際上更多是這些節點轉換時間的函數。

The products that will be driving that outperformance are products that we've been discussing, most recently with you during our Analyst Day in early December. So the surprise here. It will be our advanced liquid filters. It will be our new deposition materials and our selective edge chemistries for the most part. I mean, we expect all products to do well, but those 3 platforms will be the ones leading the outperformance in semiconductor applications. And as we mentioned, outside of semi, we expect our high-purity bag offering to continue to grow strongly in 2022 and to contribute about 1 point of growth in 2022. And you said you had a second question, Toshiya.

將推動這種優異表現的產品是我們一直在討論的產品，最近一次是在 12 月初的分析師日期間與您討論的。所以這裡的驚喜。這將是我們先進的液體過濾器。在很大程度上，它將是我們的新沉積材料和我們的選擇性邊緣化學物質。我的意思是，我們預計所有產品都會表現良好，但這三個平台將在半導體應用中領先。正如我們所提到的，除了半成品之外，我們預計我們的高純度袋產品將在 2022 年繼續強勁增長，並在 2022 年貢獻大約 1 個百分點的增長。你說你有第二個問題，Toshiya。

Yes, I do. And then my second question is on gross margin, perhaps one for Greg. Sorry if I missed this, but what were some of the key drivers in the Q4 beat? Revenue obviously came in above. So I'm guessing volume. But to the extent there was anything else, if you could speak about that, that would be helpful. And then expectations for Q1 and how to think about the balance of '22 from a gross margin perspective. I'm sure there's a lot going on in terms of cost inflation on the negative side, higher volume mix and perhaps pricing on the positive side. But if you can discuss the puts and takes, that would be super helpful.

是的，我願意。然後我的第二個問題是關於毛利率的，也許是 Greg 的問題。抱歉，如果我錯過了這一點，那麼第四季度節拍中的一些關鍵驅動因素是什麼？收入顯然在上面。所以我猜音量。但就其他方面而言，如果您可以談論這一點，那將是有幫助的。然後是對第一季度的預期，以及如何從毛利率的角度考慮 22 年的餘額。我敢肯定，在負面的成本通脹、更高的銷量組合以及可能的正面定價方面，都會發生很多事情。但是，如果您可以討論看跌期權，那將非常有幫助。

Yes. So for the quarter, I mean, you're right. I mean, the additional volume certainly helped us on the gross margin. I mean, and that was the primary driver. That was offset by -- we didn't -- our mix was not as good as we initially expected. And then we continue to experience a number of sort of supply chain inefficiencies as well as you mentioned, higher material inputs. But given the volumes we had, we were able to offset all of those things.

是的。所以對於本季度，我的意思是，你是對的。我的意思是，額外的銷量肯定有助於我們提高毛利率。我的意思是，那是主要的驅動力。這被 - 我們沒有 - 我們的組合不如我們最初預期的那麼好所抵消。然後我們繼續經歷一些供應鏈效率低下以及你提到的更高的材料投入。但鑑於我們擁有的數量，我們能夠抵消所有這些東西。

As we go into 2022, our margin expectation for Q1 is 46.5%. Our margin expectation for the full year is 47%. The primary drivers there. We expect, a, improving mix; and b, the higher volumes will certainly play into it. We're -- there's no hiding the fact that we are facing headwinds in a number of categories on the raw material input side. But like we expect that we'll be able to overcome them. And then we do continue to experience inefficiencies around supply chain-related things related to COVID, things like labor, specifically absenteeism is creating a little better headwind for us as well.

進入 2022 年，我們對第一季度的利潤率預期為 46.5%。我們對全年的利潤率預期為 47%。那裡的主要驅動因素。我們期望，a，改善組合； b，更高的音量肯定會發揮作用。我們 - 沒有隱藏我們在原材料輸入方面的許多類別中面臨逆風的事實。但是就像我們期望的那樣，我們將能夠克服它們。然後，我們確實繼續在與 COVID 相關的供應鏈相關的事情上遇到效率低下的問題，比如勞動力，特別是曠工，這也給我們帶來了更好的逆風。

And not enough. Pricing, we have implemented selective pricing increases and Bertrand might want to comment a little bit more on that.

而且還不夠。定價，我們已經實施了選擇性的定價增加，Bertrand 可能想對此發表更多評論。

Yes. I think we mentioned that in the previous call that we were in the process of taking a close look at some of the input cost increases and trying to pass between what was transient and what was more permanent in nature and to take appropriate measure to offset that with targeted price increases. We don't expect to see the benefits of those increases probably until later in 2022, and that's consistent with the picture that Greg was drawing for you, which is steady improvement of the margins through the year in 2022.

是的。我想我們在之前的電話會議中提到，我們正在仔細研究一些投入成本的增加，並試圖在本質上是短暫的和更持久的之間過渡，並採取適當的措施來抵消它有針對性的漲價。我們預計可能要到 2022 年晚些時候才能看到這些增長的好處，這與 Greg 為您繪製的圖景一致，即到 2022 年全年利潤率穩步提高。

I would just summarize by saying, overall, when I look at 2021, I was pretty pleased with the margin. I mean the stability of the margin through the year, I mean we were plus or minus about 40 basis points to 46%. Every quarter of the year, we didn't experience. And we had our fair share of headwinds for sure. And so I don't view that 46% as kind of a steady-state type margin at all. But I mean, our team really performed well. We avoided any sort of major catastrophic things that would negatively impact the margin in a quarter. So like I said, overall, felt quite good about it and feel good about our operational capabilities as we move into '22.

我只想總結說，總的來說，當我回顧 2021 年時，我對利潤率感到非常滿意。我的意思是全年利潤率的穩定性，我的意思是我們上下浮動約 40 個基點至 46%。一年中的每個季度，我們都沒有經歷過。當然，我們也有相當多的逆風。所以我根本不認為 46% 是一種穩態類型的保證金。但我的意思是，我們的團隊確實表現得很好。我們避免了任何會對季度利潤率產生負面影響的重大災難性事件。所以就像我說的，總的來說，當我們進入 22 年時，我們對此感覺非常好，並且對我們的運營能力感覺良好。

And sorry, the potential increase in depreciation on the back of the investments that you're making in Taiwan. Is that more of a '23, '24 dynamic? Or should we expect depreciation to creep higher throughout the year?

抱歉，由於您在台灣進行的投資，折舊可能會增加。這更像是'23，'24動態嗎？還是我們應該預計全年貶值會攀升？

I mean it will creep higher this year for sure. And that's why we'll see more improvement in the EBITDA margin than we will in the operating margin because of those higher depreciation levels this year as a result of the significant investment in 2020 and 2021, especially 2021. Any headwinds from depreciation related to the Taiwan facility won't come into play until 2023 -- or excuse me, yes, 2023.

我的意思是今年肯定會走高。這就是為什麼我們會看到 EBITDA 利潤率比我們的營業利潤率有更多的改善，因為由於 2020 年和 2021 年，尤其是 2021 年的重大投資，今年折舊水平更高。台灣設施要到 2023 年才能投入使用——或者對不起，是的，2023 年。

We'll take our next question from Sidney Ho at Deutsche Bank.

我們將向德意志銀行的 Sidney Ho 提出下一個問題。

I'll add my congratulations to the team. First question I have is on the revenue outlook, just following on the previous question. Well, now every company in the supply chain, in the semicap supply chain has talked about very strong demand. Last quarter, you mentioned you expect exiting the year, you have unmet demand of roughly $50 million. Can you give us an update there from what you've seen -- do these revenues just get pushed out? Or will customers able to satisfy the demand from a different supplier?

我將向團隊表示祝賀。我的第一個問題是關於收入前景的，就在上一個問題之後。好吧，現在供應鏈中的每家公司，在半導體供應鏈中都談到了非常強勁的需求。上個季度，你提到你預計今年退出，你有大約 5000 萬美元的未滿足需求。您能否根據您所看到的情況向我們提供最新信息-這些收入是否只是被擠出了？或者客戶能否滿足不同供應商的需求？

Yes. So Sidney, I think obviously, with the strong finish that we had in Q4, we have reduced significantly the difference between the actual demand for our products and the constraint demand for -- only unconstrained demand for our products. So there's still a number of lingering supply chain issues, and we are going to be obviously very focused in 2022 with the goal to permanently put the supply chain limitations behind us. But we expect to see some lingering impact of those supply chain issues in the first half of 2022. And we have obviously taken that into account in our Q1 guidance and our full year guidance.

是的。所以西德尼，我認為顯然，隨著我們在第四季度的強勁表現，我們顯著減少了對我們產品的實際需求與對我們產品的無約束需求之間的差異。因此，仍然存在許多揮之不去的供應鏈問題，我們顯然將在 2022 年非常專注，目標是永久消除供應鏈限制。但我們預計這些供應鏈問題會在 2022 年上半年產生一些揮之不去的影響。顯然，我們在第一季度的指導和全年指導中已經考慮到了這一點。

Great. Maybe just follow-up, Bertrand. So based on the comments you just mentioned, does that mean the revenue profile this year will be more back-end loaded than the normal year, which I think typically is what 48-52 kind of split in the past 5, 6 years?

偉大的。也許只是跟進，伯特蘭。所以根據你剛才提到的評論，這是否意味著今年的收入概況將比正常年份更多地加載後端，我認為這通常是過去 5、6 年的 48-52 種拆分？

Yes, that's correct, Sidney. You should expect a fairly steady increase throughout the year. We don't expect any meaningful seasonality at this point in the year. So expect a steady growth throughout the year.

是的，這是正確的，西德尼。您應該預計全年會有相當穩定的增長。我們預計今年這個時候不會出現任何有意義的季節性。因此，預計全年穩定增長。

Okay. Great. Maybe a follow-up question is related to CMC Materials deal. I understand it's probably too early for you to talk about any financial projection post close. But based on the disclosure and the perspective, it looks like the deal came together pretty quickly. Can you talk about what gives you confidence about the deal and the premium that you paid? And how should we think about the timing of all these regulatory approval process for countries that listed there? You talked about U.S. obviously, but also particularly around the antitrust concern given the combined portfolio addressing the entire CMC process.

好的。偉大的。也許後續問題與 CMC Materials 交易有關。我知道您在收盤後談論任何財務預測可能還為時過早。但根據披露和觀點，這筆交易看起來很快就達成了。你能談談是什麼讓你對這筆交易和你支付的溢價有信心嗎？我們應該如何考慮所有這些國家的監管審批程序的時間安排？您顯然談到了美國，但也特別談到了反壟斷問題，因為合併後的投資組合解決了整個 CMC 流程。

Look, Sidney, I think as we said in the prepared remarks, we are obviously very focused as a team on moving the process along, and we are very pleased with our progress so far. I talked about the S-4 filing becoming effective last week. The date of the CMC shareholders' vote is now set for March 3, which is, frankly, very fast, and that's evidence of the quality of the work by both teams.

聽著，西德尼，我認為正如我們在準備好的評論中所說，作為一個團隊，我們顯然非常專注於推動這一進程，我們對迄今為止的進展感到非常滿意。我談到上週 S-4 申請生效。 CMC 股東投票的日期現在定在 3 月 3 日，坦率地說，這是非常快的，這證明了兩個團隊的工作質量。

Last week, we also received HSR clearance in the U.S., which actually confirms our view that the 2 platforms are very complementary, with where virtually no competitive overlap, something that we described to you when we announced the transaction in mid-December last year. And as we've said, integration planning is for swing. So I mean that, all of that tells you that the joint teams are very busy and very effective. And that's the reason why we continue to expect to be in a position to close the transaction in the second half of 2022. And I'm not going to go into a lot of updates by country on the regulatory front because I would be speculating, and I just don't want to be speculating.

上週，我們還在美國獲得了 HSR 許可，這實際上證實了我們的觀點，即這兩個平台非常互補，幾乎沒有競爭重疊，這是我們在去年 12 月中旬宣布交易時向您描述的。正如我們所說，整合規劃是為了搖擺不定。所以我的意思是，所有這些都告訴你，聯合團隊非常忙碌且非常有效。這就是為什麼我們繼續期望能夠在 2022 年下半年完成交易的原因。而且我不會在監管方面按國家/地區進行大量更新，因為我會猜測，我只是不想投機。

Our next question will come from Kieran De Brun at Mizuho.

我們的下一個問題將來自瑞穗的 Kieran De Brun。

I think you mentioned during the fourth quarter, your tax rate was a little bit higher than expected due to regional sales mix. Can you just parse out which regions saw stronger demand during the quarter? And what your outlook is as we progress throughout '22 by region?

我想你在第四季度提到過，由於區域銷售組合，你的稅率比預期的要高一點。您能否分析一下本季度哪些地區的需求強勁？隨著我們在 22 年各地區取得進展，您的前景如何？

Yes. And it's probably an overstatement to say that -- I mean, it ties directly to the revenue. It really ties to the profitability of the region and the profitability, frankly, is impacted heavily by intercompany pricing. So I wasn't trying to make an insinuation that 1 region or the other was stronger from a revenue perspective.

是的。這麼說可能有點言過其實——我的意思是，它與收入直接相關。它確實與該地區的盈利能力有關，坦率地說，盈利能力受到公司間定價的嚴重影響。因此，我並沒有試圖暗示從收入的角度來看，一個地區或另一個地區更強大。

I mean, there obviously were differences through the year. I mean if you look at -- in the current quarter, Taiwan was up 12%, Korea was up 7%. I mean all on a sequential basis. North America was up 6%, but the tax rate really isn't driven directly by the revenue.

我的意思是，這一年顯然存在差異。我的意思是，如果你看一下——在本季度，台灣增長了 12%，韓國增長了 7%。我的意思是全部按順序進行。北美上漲了 6%，但稅率實際上並不是由收入直接驅動的。

Great. And then I think SCEM seems to be a little bit more impacted by some of these supply and raw headwinds. If you can just help us parse out in SCEM specifically how we should be thinking about the potential margin uplift that these ease throughout the year and in '22 in general.

偉大的。然後我認為 SCEM 似乎受到一些供應和原始逆風的影響更大。如果您可以幫助我們在 SCEM 中具體解析，我們應該如何考慮這些在全年和 22 年總體上緩解的潛在利潤率提升。

I can talk about the supply issues at high level, and then, Greg, if you want to add to it on the margin front. But I mean the truth is that if you go back and look at 2021. I mean the supply issues impacted all 3 divisions in different degrees at different times during the year, but all divisions were impacted. As we exit 2021 and as we into 2022, as I mentioned, we're still dealing with a few lingering supply chain issues. I think the most significant is probably indeed in our SCEM division, and we've talked about specifically the availability of substrates for our coating solutions. That has been a severe constraint for us through 2021 and I think will likely remain a pain point in the first half of the year.

我可以談談高層的供應問題，然後，格雷格，如果你想在保證金方面補充一下。但我的意思是，如果你回頭看看 2021 年。我的意思是，供應問題在一年中的不同時間以不同程度影響了所有 3 個部門，但所有部門都受到了影響。正如我所提到的，隨著我們退出 2021 年並進入 2022 年，我們仍在處理一些揮之不去的供應鏈問題。我認為最重要的可能確實在我們的 SCEM 部門，我們已經專門討論了我們塗層解決方案的基材可用性。到 2021 年，這對我們來說是一個嚴重的限制，我認為這可能仍然是今年上半年的一個痛點。

But the other 2 divisions are still facing some level of supply chain issues as well. I mean for micro contamination, it's mostly around component availability for liquid filters. That remains a concern. And then for AMH, the attention will be on materials availability and price capacity. So again, it's been a hard fought for year. I think the team has done extremely well, and I'm very thankful for the work done by OPs teams and our supply chain partners. But we're not entirely out of the woods. And that's why, as I said, I think our focus in 2022 will be to make systemic improvements to permanently put those supply chain limitations behind us and the margin inefficiencies that goes with that. But Greg, I don't know if there's anything you want to add on the margin front specifically. You may be on mute, Greg?

但其他兩個部門也仍面臨一定程度的供應鏈問題。我的意思是對於微污染，它主要與液體過濾器的組件可用性有關。這仍然是一個問題。然後對於 AMH，關注點將放在材料可用性和價格能力上。再說一次，這是一場艱苦的戰鬥。我認為團隊做得非常好，我非常感謝 OPs 團隊和我們的供應鏈合作夥伴所做的工作。但我們還沒有完全走出困境。這就是為什麼，正如我所說，我認為我們在 2022 年的重點將是進行系統性改進，以永久地將這些供應鏈限制以及隨之而來的利潤率低效拋在腦後。但是 Greg，我不知道您是否想在邊距前面特別添加任何內容。你可能靜音了，格雷格？

We expect to see continued improvements in mix within that business, and that business probably more than any is -- any of the 3 is mix plays a role. We also have a number of smaller businesses within that division, where I expect to see operational improvements through 2022, all of which will benefit the gross margin, which in turn will benefit the operating margin.

我們希望看到該業務中的組合持續改進，並且該業務可能比任何業務都更重要——這三個組合中的任何一個都發揮著作用。我們在該部門也有一些較小的業務，我預計到 2022 年運營會有所改善，所有這些都將有利於毛利率，進而有利於營業利潤率。

I'll move next to Patrick Ho with Stifel.

我會和 Stifel 一起搬到 Patrick Ho 旁邊。

Bertrand, maybe first off for you, in terms of a lot of these moving pieces with the supply chain, higher input costs, a center that's going on right now. How do you find the balance in terms of passing on these costs to your customers, while at the same time, continuing to face these supply chain challenges where I'm sure freight and logistic costs are still high, things of that nature. How do you find the balance on that?

Bertrand，也許首先對你來說，就供應鏈中的許多這些移動部件而言，更高的投入成本，一個正在發生的中心。您如何在將這些成本轉嫁給客戶方面找到平衡，同時繼續面臨這些供應鏈挑戰，我確信貨運和物流成本仍然很高，這種性質的事情。你如何找到平衡？

Well, it's something that we've been monitoring, obviously, very closely through 2020 and 2021. I think there was a view early in 2021 that are not of the input price increases that we saw were mostly transient. And as we progressed deeper into the year in 2021, it became apparent that some of those increases were here to stay. And that led us to take some action on the pricing front.

嗯，很明顯，這是我們一直在密切關注的事情，直到 2020 年和 2021 年。我認為，在 2021 年初，我們看到的投入價格上漲並不是我們看到的主要是短暫的。隨著我們深入到 2021 年，很明顯，其中一些增長將持續存在。這導致我們在定價方面採取了一些行動。

We have never been opportunistic when it comes to pricing. We have always been very strategic and deliberate in what we're doing. And that's what we did in 2021, trying to find an offset for some permanent increases in certain types of commodities that we're buying. And again, as we said, given the lead times for some of our products, we won't expect to see the benefits of those price increases until probably later in 2022.

在定價方面，我們從不投機取巧。在我們所做的事情上，我們一直非常具有戰略性和深思熟慮。這就是我們在 2021 年所做的，試圖為我們購買的某些類型的商品的一些永久性增長找到抵消。同樣，正如我們所說，鑑於我們某些產品的交貨時間，我們預計可能要到 2022 年晚些時候才能看到這些價格上漲的好處。

Great. That's helpful. And maybe, Greg, just as a follow-up question. When looking at your 1Q guidance on OpEx, it's still below the percentages that you highlighted at your Analyst Day. Should we expect OpEx to kind of steadily rise as we progress through 2022 to kind of get to the target model that you've talked about at your Analyst Day?

偉大的。這很有幫助。也許，格雷格，只是作為一個後續問題。在查看您對運營支出的第一季度指導時，它仍然低於您在分析師日強調的百分比。隨著我們到 2022 年達到您在分析師日談到的目標模型，我們是否應該期望 OpEx 穩步上升？

I mean, OpEx in Q1 will be lower than the other second, third and fourth quarter. We continue to really focus on making the investments in the R&D. And so we'd expect to see continued increases in R&D, and we continue to work hard to do what we can to keep the SG&A line relatively -- it's not going to be flat, but certainly growing at considerably less than revenue. That would be our goal as we move through the year. But like -- but your point is as it does move up as we move through the year.

我的意思是，第一季度的運營支出將低於其他第二、第三和第四季度。我們將繼續真正專注於對研發的投資。因此，我們預計研發將持續增長，我們將繼續努力盡我們所能保持 SG&A 線的相對穩定——它不會持平，但肯定會以遠低於收入的速度增長。這將是我們全年的目標。但是就像 - 但你的觀點是隨著我們這一年的發展，它確實會上升。

We'll go next to Aleksey Yefremov with KeyBanc.

我們將與 KeyBanc 一起前往 Aleksey Yefremov。

I wanted to ask you about the pace of node transitions in '22 or '23. Is there any sign that these supply chain issues are resulting in slower node transitions? Or is everything on track?

我想問你 22 年或 23 年節點轉換的速度。是否有任何跡象表明這些供應鏈問題正在導致節點轉換速度變慢？還是一切都在軌道上？

It's a good question, and that's something that we will obviously paying close attention to. As of right now, we don't see any significant risk, but that certainly is something to watch for. And that's why, again, we were putting that outperformance range at about 3 to 5. 3 points of outperformance would be if some of those node transitions get delayed a bit. And 5 points would be what you should be expecting if the node transitions announced by a number of our logic and memory customers take place on time.

這是一個很好的問題，我們顯然會密切關注這一點。截至目前，我們沒有看到任何重大風險，但這當然值得關注。這就是為什麼我們再次將這一優異表現範圍設定在大約 3 到 5 之間。如果其中一些節點轉換被延遲一點，則表現優異的 3 個點。如果我們的一些邏輯和內存客戶宣布的節點轉換按時進行，那麼您應該期望得到 5 分。

Bertrand, and as a follow-up, your mid-single-digit wafer start assumption for this year, some may say could be conservative. I don't know if you agree and are you thinking about some level of inventory correction perhaps in the back half of this year?

Bertrand，作為後續行動，您對今年晶圓開工率中位數的假設，有人可能會說可能是保守的。我不知道您是否同意，您是否正在考慮可能在今年下半年進行某種程度的庫存調整？

I think I said mid to high, so it's a little bit higher than mid. But look, I mean, this is -- I mean we typically continue to update you on our views about the industry, both in terms of CapEx growth and wafer start growth, we will obviously do that in 2022 as well as we have greater visibility. I think it's fair to say that, as we mentioned, during the Analyst Day, we have a high degree of conviction in the secular growth potential of the semiconductor industry. Most of our customers, fab customers have their capacity essentially fully committed for the year. So we expect a high degree of fab utilization, which is obviously very good for us and should, to your point, lead to very healthy levels of wafer starts. So for now, our projection is mid-to high-single digit for wafer starts. And if it's better than that, then we will update our guidance accordingly.

我想我說的是中到高，所以它比中高一點。但是看，我的意思是，我的意思是，我們通常會繼續向您更新我們對行業的看法，無論是在資本支出增長和晶圓開工增長方面，我們顯然會在 2022 年做到這一點，並且我們有更大的知名度.我認為公平地說，正如我們所提到的，在分析師日期間，我們對半導體行業的長期增長潛力有高度的信心。我們的大多數客戶，晶圓廠客戶今年的產能基本上都已完全投入。因此，我們預計晶圓廠的利用率很高，這顯然對我們非常有利，並且應該會導致非常健康的晶圓開工水平。因此，就目前而言，我們的預測是晶圓啟動的中高個位數。如果它比這更好，那麼我們將相應地更新我們的指導。

We'll go next to Amanda Scarnati with Citi.

我們將和花旗一起去阿曼達斯卡納蒂旁邊。

Can you just quantify the growth by leading edge versus the support you've been getting from greater utilization on the lagging edge? And how that ties into sort of what your expectations are going forward?

您能否僅通過領先優勢與您從落後優勢的更高利用率中獲得的支持來量化增長？以及這與您對未來的期望有何联系？

Yes. I mean it's the first and -- it's not something that we track in that fashion, Amanda. So I don't want to try to make up numbers on the fly. But I just want to confirm what is embedded in your question, which is we have seen strength across wafer sizes. So our 200-millimeter business had a great year in 2021. We expect a similar type of performance in 2022. And as we've said throughout the year, we expect, again, strength across all segments, be it memory and logic. So we expect to see growth everywhere. But in terms of the outperformance, the outperformance will be driven by the leading edge and will be driven by the greater Entegris content per wafer that we expect to enjoy as more customers in 3D NAND, for instance, transition to higher account architectures or in logic and foundry when more wafers are produced at smaller line weight. So again, I think the setup for the year for 2022 is actually pretty positive for us across segments.

是的。我的意思是它是第一個而且 - 它不是我們以那種方式追踪的東西，阿曼達。所以我不想試圖在飛行中編造數字。但我只想確認您的問題中包含的內容，即我們已經看到晶圓尺寸的優勢。因此，我們的 200 毫米業務在 2021 年表現出色。我們預計 2022 年也會有類似的表現。正如我們全年所說的那樣，我們再次期待所有領域的實力，無論是內存還是邏輯。因此，我們希望到處都能看到增長。但就卓越表現而言，卓越表現將受到領先優勢的推動，並將受到每片晶圓更高 Entegris 含量的推動，隨著 3D NAND 的更多客戶（例如，過渡到更高級別的架構或邏輯），我們預計將享受到更高的 Entegris 含量當更多的晶圓以更小的線重生產時，代工。再說一次，我認為 2022 年的設置實際上對我們各個細分市場都非常有利。

And then could you just talk about sort of the deposition chemicals that you've highlighted in the past as being a big driver on 3D NAND. Can you talk about the traction that you've been gaining on that? It's part of the strategic rationale, I think, for the CMC deal. Have conversations changed at all since you've announced that deal?

然後您能否談談您過去強調的沉積化學品，它們是 3D NAND 的主要驅動力。你能談談你在這方面獲得的牽引力嗎？我認為，這是 CMC 交易的戰略理由的一部分。自從你宣布這筆交易後，談話內容是否發生了變化？

Look, I mean, I think it's early for us to talk about what the combination between the 2 companies could mean in terms of growth and opportunity per wafer. I would just say that conversations with customers have been very positive, but remember that until we close, we're still 2 independent companies, and we won't really be able to really work on the potential of the combined platform. As we've said, we expect to provide a little bit more color around synergies, and that includes revenue synergies after we close the transaction, which we expect to be in the second half of 2022. So we'll be asking you for a little bit of patience with that question, Amanda.

聽著，我的意思是，我認為現在談論兩家公司的合併在每個晶圓的增長和機會方面可能意味著什麼還為時過早。我只想說與客戶的對話非常積極，但請記住，在我們關閉之前，我們仍然是兩家獨立的公司，我們將無法真正發揮合併平台的潛力。正如我們所說，我們希望圍繞協同效應提供更多色彩，其中包括我們完成交易後的收入協同效應，我們預計將在 2022 年下半年完成。所以我們會要求您提供對這個問題有點耐心，阿曼達。

Our next question comes from Paretosh Misra of Berenberg.

我們的下一個問題來自 Berenberg 的 Paretosh Misra。

So you guys probably had $300 million to $400 million sales to China last year. Can you talk about the competitive landscape and how it's evolving? Are you still mostly competing against the western companies or increasingly seeing more local Chinese competitors?

所以你們去年對中國的銷售額可能在 3 億到 4 億美元之間。您能談談競爭格局以及它是如何演變的嗎？您是否仍然主要與西方公司競爭，或者越來越多地看到更多的中國本土競爭對手？

Yes. So China is about a 50% country for us. I mean, so very stable at that level now for quite a number of years. The competitive landscape has not really meaningfully evolved over the last 3 years, and we compete mostly with foreign competitors.

是的。所以中國對我們來說大約是50%的國家。我的意思是，在這個水平上非常穩定已經有很多年了。在過去的 3 年中，競爭格局並沒有真正有意義地發展，我們主要與外國競爭對手競爭。

And then typically, you have seen about, I guess, about 100 basis points deflation in legacy products. Can you talk about what you saw last year? Because I think the year before that, it was much lower than that typical 100 basis points.

然後通常，你已經看到，我猜，遺留產品大約有 100 個基點的通貨緊縮。你能談談你去年看到的嗎？因為我認為在那之前的一年，它遠低於典型的 100 個基點。

Yes. I think we have become more disciplined and more strategic in our pricing practices that applies to setting the price right for the new products that we introduced when we have an opportunity to capture some of the value that we create for our customers. But that discipline extends also to managing pricing over the life cycle of the products. And that price erosion, in many cases, it's been managed more effectively over the last few years as well. So the net portfolio of that is that -- in 2021, we didn't see the price erosion that we would typically see or we would have seen in the past.

是的。我認為，當我們有機會獲得為客戶創造的一些價值時，我們在定價實踐中變得更加自律和更具戰略性，適用於為我們推出的新產品設定合適的價格。但這一原則也延伸到產品生命週期內的定價管理。在許多情況下，這種價格侵蝕在過去幾年中也得到了更有效的管理。因此，淨投資組合是——在 2021 年，我們沒有看到我們通常會看到或過去會看到的價格侵蝕。

Got it. And last one for me. In your SCEM business, can you discuss what you saw in some of the other product categories like graphite and specialty gases?

知道了。最後一個給我。在您的 SCEM 業務中，您能談談您在石墨和特種氣體等其他一些產品類別中看到的情況嗎？

Yes. So first of all, the performance in SCEM was really driven in 2021 by a very, very strong performance in deposition materials, which grew 26% year-on-year. The other areas of growth were specialty gases and specialty coating in spite of the supply chain issues that we you're mentioning, which grew in the mid- to high teens. Graphite did recover. Graphite grew in the high teens in 2021. Graphite is not back to pre-COVID levels quite yet but is in a healthy situation. If you go back 3 years ago, our graphite business was both a headwind from a top line growth standpoint and a headwind from a margin standpoint. That's no longer the case. It grew again in the high-teens and the margins are favorable. So I think, again, a lot of good foundational work took place in SCEM during 2021.

是的。因此，首先，SCEM 的表現在 2021 年真正受到沉積材料非常非常強勁的表現的推動，同比增長 26%。其他增長領域是特種氣體和特種塗料，儘管我們提到了供應鏈問題，這些問題在中高年級增長。石墨確實恢復了。石墨在 2021 年以青少年時期的速度增長。石墨尚未恢復到 COVID 之前的水平，但處於健康狀況。如果你回到 3 年前，我們的石墨業務從收入增長的角度來看既是逆風，也是從利潤率的角度來看的逆風。情況不再如此。它在十幾歲時再次增長，利潤率很高。因此，我再次認為，2021 年，SCEM 進行了許多良好的基礎工作。

We will go next to Mike Harrison, Seaport Research Partners.

我們將在 Seaport Research Partners 的 Mike Harrison 旁邊。

I was wondering if you could talk a little bit about the -- you've been in the process of adding shifts and trying to expand manufacturing capacity. It seems to be progressing fairly well based on your performance, but maybe just give an update on your ability to find labor? And are the returns on some of the investments you've made in additional capacity in line with expectations, better or worse?

我想知道你是否可以談談 - 你一直在增加班次並試圖擴大製造能力。根據你的表現，它似乎進展得相當好，但也許只是更新一下你找勞動力的能力？您在額外產能方面所做的一些投資的回報是否符合預期，是更好還是更差？

Yes. Yes, it's true that so much has happened in 2021 that we almost forgot how we got to that strong finish. And you're right that we made very significant and steady progress throughout the year in terms of adding manufacturing capacity. For context, in 2021, we added about 1,500 manufacturing jobs at Entegris. And to your point, we are running most manufacturing cells at 24/7 right now. We also successfully added a number of new PCs of equipment in the second half of the year. That came online really smoothly. Once again, kudos to our Ops teams. And I was particularly helpful to our liquid filtration product lines, and we can obviously see the results of that output maximization focus in the Q4 results.

是的。是的，2021 年確實發生了太多事情，以至於我們幾乎忘記了我們是如何取得如此強勁的成績的。你說得對，我們在增加製造能力方面全年取得了非常顯著和穩定的進展。就背景而言，2021 年，我們在 Entegris 增加了約 1,500 個製造業工作崗位。就您而言，我們現在正在 24/7 全天候運行大多數製造單元。下半年我們還成功增加了一批新的PC設備。上線真的很順利。再次感謝我們的 Ops 團隊。我對我們的液體過濾產品線特別有幫助，我們可以在第四季度的結果中清楚地看到輸出最大化的結果。

So as I said, I think we are in a very good place as we start 2022 in terms of internal capacity. We have a few projects for 2022 that will be required for us to be able to fulfill the demand for the strong demand we expect for 2022. But of course, the focus is also around the large investment we're making in Taiwan. The investment that will be very important to add capacity required for demand we expect -- the strong demand we expect for our products in 2023 and beyond as we presented during the Analyst Day. So a lot of good work by the upstreams in 2021, but 2022 and 2023 will be 2 busy years for our upstreams as well.

正如我所說，我認為我們在 2022 年開始時的內部能力非常好。我們在 2022 年有幾個項目需要我們滿足我們對 2022 年預期的強勁需求的需求。但當然，重點也在於我們在台灣進行的大量投資。這項投資對於增加我們預期的需求所需的產能非常重要——正如我們在分析師日所展示的那樣，我們預計 2023 年及以後對我們產品的強勁需求。因此，2021 年上游有很多出色的工作，但 2022 年和 2023 年對於我們的上游來說也將是忙碌的 2 年。

Well, my other question is actually about that Taiwan investment. You announced that you were expanding that investment pretty meaningfully from $200 million to $500 million. Can you talk about what drove that decision to expand? Maybe what additional capabilities you're going to be adding? And I don't know if this is a dumb question, but it sounds like the size of the facility is doubling but the cost is more than doubling. So maybe help us understand why that is?

嗯，我的另一個問題實際上是關於台灣的投資。你宣布你正在將投資從 2 億美元大幅擴大到 5 億美元。你能談談是什麼推動了這一決定的擴大嗎？也許您要添加哪些附加功能？我不知道這是不是一個愚蠢的問題，但聽起來設施的規模翻了一番，但成本卻翻了一番多。所以也許可以幫助我們理解為什麼會這樣？

Yes. I mean I think it's a very -- first of all, remember that we needed and we need to add capacity because we expect very strong growth across a number of product lines. So we have already today a significant manufacturing capacity in the U.S. The second largest country for us is Taiwan. So it was a very natural choice for us to decide to expand manufacturing presence in Taiwan, which was not sufficient, I mean, to be clear. So that is really the basis for that decision. And then we expect a lot of growth and a lot of new opportunities on the island. And so finally to your question about the correlation between the size and the CapEx level.

是的。我的意思是我認為這是一個非常 - 首先，請記住我們需要並且我們需要增加產能，因為我們預計許多產品線的增長非常強勁。因此，我們今天在美國已經擁有重要的製造能力。對我們來說，第二大國家是台灣。所以我們決定擴大在台灣的製造業務是一個非常自然的選擇，我的意思是說，這還不夠。因此，這確實是該決定的基礎。然後我們預計島上會有很多增長和很多新機會。最後是關於規模與資本支出水平之間相關性的問題。

I mean it has to do with the desire to really invest in state-of-the-art manufacturing capabilities. We want to bring a new level of automation, cleaner manufacturing processes. The goal is to shorten our lead times and to be obviously, better manufacturers than our competitors. And we also have very ambitious environmental goals with this investment. Just -- for example, we expect to be reusing and recycling 85% of the water that we consume on the site. So all of that obviously requires some level of upfront investment, but I have no doubt that if we pay off big dividends over time.

我的意思是，這與真正投資於最先進的製造能力的願望有關。我們希望帶來更高水平的自動化、更清潔的製造流程。我們的目標是縮短我們的交貨時間，並明顯地成為比我們的競爭對手更好的製造商。通過這項投資，我們還制定了非常雄心勃勃的環境目標。只是——例如，我們希望重複使用和回收我們在現場消耗的 85% 的水。因此，所有這些顯然都需要一定程度的前期投資，但我毫不懷疑，如果我們隨著時間的推移支付大筆股息。

We will take our final question from Josh Silverstein at Wolfe Research.

我們將向 Wolfe Research 的 Josh Silverstein 提出最後一個問題。

I was just going to stick with the Taiwan facility. You mentioned CapEx of about $500 million this year with about half of that coming from that facility alone. Would you expect the kind of stand-alone Entegris CapEx to stay at that level in 2023 before potentially falling off in '24? And then along the same lines, you mentioned potentially a $500 million-plus revenue number when fully ramped up. How long will it take that facility to ramp up to that level?

我只是堅持使用台灣工廠。您提到今年的資本支出約為 5 億美元，其中大約一半來自該設施。您是否期望獨立的 Entegris 資本支出在 2023 年保持在該水平，然後可能在 24 年下降？然後沿著同樣的思路，你提到了在完全增加時可能會超過 5 億美元的收入數字。該設施需要多長時間才能達到該水平？

Greg, do you want to take the first part of that question? I can (inaudible). You may be on mute, Greg?

格雷格，你想回答這個問題的第一部分嗎？我可以（聽不清）。你可能靜音了，格雷格？

Yes. I'm on mute. And can you -- I caught the revenue part, but what was the -- I'm sorry, the first point?

是的。我靜音了你能--我抓住了收入部分，但是--對不起，第一點是什麼？

Just on the spending level this year is about $500 million, roughly kind of half of that from the Taiwan facility. Would you expect CapEx to remain at that level in 2023? I know the facility has played for initial output next.

今年的支出水平約為 5 億美元，大約是台灣工廠支出的一半。您是否期望資本支出在 2023 年保持在該水平？我知道該設施接下來已經進行了初始輸出。

Okay. Yes, I'm sorry. I got it. I got it. Yes. I'm sorry, I didn't fully understand. No. So our expectation is that 2022 will be our peak spending year for overall CapEx, it will also be the peak year for what we spend in Taiwan. So when we look forward, we would expect by 2024 our free cash flow levels will be back to the levels that we saw in 2020.

好的。是的，我很抱歉。我得到了它。我得到了它。是的。對不起，我沒有完全理解。沒有。所以我們的預期是，2022 年將是我們整體資本支出的峰值支出年，這也將是我們在台灣支出的峰值年。因此，當我們展望未來時，我們預計到 2024 年，我們的自由現金流水平將回到 2020 年的水平。

And when it comes....

而當它來臨時......

As CapEx as a percentage of revenue comes down.

隨著資本支出佔收入的百分比下降。

And when it comes to the revenue picture. We expect the bulk of the customer qualifications to take place in the first half of 2023, and we expect to start ramping up high volume production in the second half of 2023. So expect this fab to really continue to ramp into 2024 and 2025.

當談到收入情況時。我們預計大部分客戶資格將在 2023 年上半年進行，我們預計將在 2023 年下半年開始增加大批量生產。因此，預計這家晶圓廠將真正繼續增長到 2024 年和 2025 年。

Got it. And then last one for me. I know you were being a little bit quiet around potential asset divestitures around the transaction. But would you still consider any sort of small bolt-on deals like the BAS kind of $750 million acquisitions while you're going through this process?

知道了。然後給我最後一個。我知道你對圍繞交易的潛在資產剝離有點沉默。但是，在您進行此過程時，您是否仍會考慮任何類型的小型附加交易，例如 BAS 的 7.5 億美元收購？

I think it's fair to say right now that the focus for us would be #1, to not allow the CMC integration to be a distraction and to execute on the strong organic growth plan. And I think that statement probably applies for France at CMC Materials as well. Next priority will be to work on integration planning and be ready, day 1 after close to hit the ground running. And I think it's going to leave us with very little time to really think about additional small M&A, at least for the foreseeable future.

我認為現在可以公平地說，我們的重點是第一，不允許 CMC 整合分散注意力並執行強大的有機增長計劃。我認為這種說法可能也適用於 CMC Materials 的法國。下一個優先事項將是進行整合規劃並做好準備，在接近開始運行的第一天。而且我認為至少在可預見的未來，我們幾乎沒有時間真正考慮額外的小型併購。

And that will conclude today's question-and-answer session as well as today's fourth quarter 2021 earnings release conference call. We thank you for your participation. You may disconnect at this time and have a great day.

這將結束今天的問答環節以及今天的 2021 年第四季度財報電話會議。我們感謝您的參與。此時您可能會斷開連接並度過美好的一天。