Entegris Inc (ENTG) 2023 Q4 法說會逐字稿

Good morning, and welcome to Entegris' Fourth Quarter Earnings and Analyst Update Webcast. Last night, we released our fourth quarter earnings and we posted the earnings slides and earnings prepared remarks on the IR site. We will not be presenting the prepared remarks for Q4 live in today's session. So please refer to those online if you already have it. In today's session, we will present a brief analyst update presentation, and then we will take Q&A on both the presentation and Q4 earnings.

早安，歡迎收看 Entegris 第四季收益和分析師更新網路廣播。昨晚，我們發布了第四季度的收益，並在投資者關係網站上發布了收益幻燈片和收益準備評論。我們不會在今天的會議上直播為第四季準備的演講。因此，如果您已經擁有，請參考網路上的內容。在今天的會議中，我們將進行簡短的分析師更新演示，然後我們將對演示和第四季度收益進行問答。

We expect the webcast today will be approximately 1 hour and 15 minutes, including the Q&A. Some webcast related housekeeping items. If you're experiencing any technical problems, please click on the little i on the left-hand bar of the screen to troubleshoot or chat with tech support. You can minimize or enlarge your slide window at any time by clicking on the top right corner of the box. The slides will advance automatically throughout the webcast. The Q&A session will be at the end of the presentation. Please submit your questions in the Q&A box located in the bottom left corner of the screen. You can also e-mail questions to Beth and me directly. In the resource box, you will find a copy of today's presentation slides and a few other items of interest.

我們預計今天的網路直播將持續約 1 小時 15 分鐘，包括問答環節。一些與網路廣播相關的家政項目。如果您遇到任何技術問題，請點擊螢幕左側欄上的小 i 進行故障排除或與技術支援人員聊天。您可以隨時透過點擊框的右上角來最小化或放大幻燈片視窗。幻燈片將在整個網路廣播中自動前進。問答環節將在演示結束時進行。請在螢幕左下角的問答框中提交您的問題。您也可以直接透過電子郵件向 Beth 和我發送問題。在資源框中，您將找到今天簡報投影片的副本和一些其他有興趣的項目。

One other item of note, in the appendix of today's presentation, we have included for your reference, consolidated results and divisional results for 2023 that exclude last year's divestitures and the PIM business for the full year and by quarter.

另一件值得注意的事情是，在今天簡報的附錄中，我們提供了 2023 年的綜合業績和部門業績供您參考，其中不包括去年的剝離和全年和按季度的 PIM 業務。

The speakers today are Bertrand Loy, President and CEO; and Linda LaGorga, our CFO. 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 those 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.

今天的演講者是總裁兼執行長伯特蘭·洛伊 (Bertrand Loy)；和我們的財務長 Linda LaGorga。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的預測有重大差異。有關這些風險和不確定性的更多資訊包含在我們向 SEC 提交的最新年度報告和後續季度報告中。請參閱簡報中免責聲明投影片上的資訊。

On this call, we will also refer to non-GAAP financial measures as defined by the SEC in Regulation G. You can find reconciliation tables in the presentation, which is posted on our IR page of our website.

在本次電話會議上，我們也將參考 SEC 在 G 條例中定義的非 GAAP 財務指標。您可以在簡報中找到調整表，該簡報發佈在我們網站的 IR 頁面上。

With that, I'll hand over to Bertrand.

接下來，我會把工作交給 Bertrand。

Good morning, and thank you for joining us. Today's analyst update will be brief. The main purpose is to provide you with a refreshed financial model focused on our core business, and excluding all completed and planned divestitures. Before I move on to the update, a quick recap of our results we posted last night. We are very pleased with the quality of our execution in 2023. Our unit-driven model displayed resilience during the current industry downturn. And we closed 2023 with strong fourth quarter sales and EPS results, both above our guidance.

早安，感謝您加入我們。今天的分析師更新將會很短。主要目的是為您提供一個更新的財務模型，專注於我們的核心業務，不包括所有已完成和計劃中的資產剝離。在繼續更新之前，快速回顧一下我們昨晚發布的結果。我們對 2023 年的執行品質感到非常滿意。我們的單位驅動模型在當前行業低迷時期表現出了韌性。我們以強勁的第四季度銷售額和每股收益結束了 2023 年，均高於我們的指引。

For the year, we outperformed the market by 6 points, driven in large parts by our strong position at the leading-edge technology nodes and the backlog we had entering the year. In addition, we divested 3 noncore businesses and used the proceeds and free cash flow to pay off $1.3 billion of debt.

今年，我們的表現優於市場 6 個百分點，這在很大程度上得益於我們在前沿技術節點的強勢地位以及我們進入今年的積壓訂單。此外，我們還剝離了 3 項非核心業務，並利用所得收益和自由現金流償還了 13 億美元的債務。

In terms of our guidance for 2024, we believe we have taken a prudent view of the industry in the short term while being fully prepared for what we believe is likely to be a significant snapback in the market.

就我們對 2024 年的指導而言，我們認為我們在短期內對該行業採取了審慎的看法，同時為我們認為市場可能出現的大幅反彈做好了充分準備。

On to the agenda for the briefing today. I will talk about Entegris' business model, our sales growth, algorithm and provide an overview of our 3 divisions. Linda will cover our capital structure, capital allocation, priorities, our updated target model and our updated 3-year financial targets. Then we will take questions on both the analyst update presentation and our fourth quarter earnings.

今天的簡報會議程如下。我將討論 Entegris 的業務模式、我們的銷售成長、演算法，並概述我們的 3 個部門。 Linda 將介紹我們的資本結構、資本配置、優先事項、更新的目標模型和更新的 3 年財務目標。然後我們將回答有關分析師更新演示和第四季度收益的問題。

Here is what I would like to impress upon you today. Entegris' unit-driven business model is unique, highly differentiated and has strong competitive moats. While 2023 was a challenging year, we remain as optimistic as ever about the long-term growth prospects for the semiconductor industry. The industry is entering a period of unprecedented technology change and device complexity. Our core value proposition in material science, materials purity and end-to-end solutions has become increasingly enabling and critical for our customers. All of this means the market is moving toward Entegris. And this ultimately translates into a rapidly expanding Entegris content per wafer and strong outperformance for the years to come, reinforcing Entegris as a value compounder with attractive organic sales growth, leading to significant EBITDA and EPS expansion, especially given our commitment to lower our debt.

這就是我今天想給你們留下深刻印象的內容。 Entegris 的單位驅動業務模式獨特、高度差異化並擁有強大的競爭護城河。儘管 2023 年是充滿挑戰的一年，但我們對半導體產業的長期成長前景仍一如既往地樂觀。該行業正進入一個技術變革空前、設備複雜性空前的時期。我們在材料科學、材料純度和端到端解決方案方面的核心價值主張對我們的客戶來說變得越來越重要。所有這些都意味著市場正在朝著 Entegris 方向發展。這最終會轉化為每片晶圓的Entegris 含量快速增長，並在未來幾年表現強勁，從而鞏固Entegris 作為價值複合企業的地位，並具有有吸引力的有機銷售增長，從而導致EBITDA 和EPS 顯著擴張，特別是考慮到我們致力於降低債務。

For the past decades, our mission has not changed. We help our customers improve their productivity, performance and technology by providing enhanced materials and process solutions for the most advanced manufacturing environments. Our platform is now comprised of 3 divisions, and I will provide more detail on each of them in a moment. 75% of our revenue is unit-driven or recurring. These unit-driven products can be chemistries and materials that are used daily in semiconductor manufacturing fabs or there can be advanced filters and other consumable products that are single-use and are replaced frequently. The remaining 25% of our revenue is CapEx-driven products. They can be gas filters, dispense systems and other components that we sell to equipment makers or there can also be wafer carriers, gas purification systems or fluid handling solutions that we sell when new fabs are built.

幾十年來，我們的使命沒有改變。我們透過為最先進的製造環境提供增強的材料和製程解決方案，幫助客戶提高生產力、性能和技術。我們的平台現在由 3 個部門組成，我稍後將提供有關每個部門的更多詳細資訊。我們 75% 的收入是單位驅動的或經常性的。這些單元驅動的產品可以是半導體製造工廠日常使用的化學品和材料，也可以是先進的過濾器和其他一次性且經常更換的消耗品。我們剩餘 25% 的收入來自資本支出驅動的產品。它們可以是我們出售給設備製造商的氣體過濾器、分配系統和其他組件，也可以是我們在建造新工廠時出售的晶圓載體、氣體淨化系統或流體處理解決方案。

You can see in the middle of the slide that our customer base is unique as our solutions are widely used across the broad industry ecosystem. And as you can see, further to the right, when it comes to our fab customers, we have greater exposure to logic and foundry, representing about 70% of our fab revenues, while memory customers represent the rest, approximately 30%. This profile, unique in the industry, provides greater resilience and stability to our business model and financial performance on a cross-cycle basis.

您可以在幻燈片中間看到我們的客戶群是獨一無二的，因為我們的解決方案廣泛應用於廣泛的行業生態系統。正如你所看到的，再往右看，當談到我們的晶圓廠客戶時，我們對邏輯和代工的關注度更高，約占我們晶圓廠收入的70%，而記憶體客戶則佔其餘部分，約佔30%。這項特點在業界是獨一無二的，為我們的業務模式和跨週期的財務表現提供了更大的彈性和穩定性。

On the next slide, I want to touch on the 3 dimensions of our competitive advantage that we have built over decades. No one in the industry comes close to these combined capabilities, especially while being almost exclusively focused on SEMI. First, on the left, the customer value creation flywheel. I am sure that you've read Jim Collins book, Good to Great. So you will recognize the flywheel concept, which is meant to call out the major steps the organization needs to go through to create and compound customer value over time. It starts up to 5 years ahead of new node transitions when a customer asks us to help them solve key challenges they are expecting to face. We then start our development work, share samples and ultimately provide them with a new enabling solution.

在下一張投影片中，我想談談我們幾十年來建立的競爭優勢的三個維度。業內沒有人能夠接近這些綜合能力，尤其是在幾乎完全專注於 SEMI 的情況下。首先，左邊是顧客價值創造飛輪。我相信您已經讀過吉姆‧柯林斯的書《從優秀到卓越》。因此，您將認識到飛輪概念，它旨在指出組織隨著時間的推移創造和複合客戶價值所需經歷的主要步驟。當客戶要求我們幫助他們解決他們期望面臨的關鍵挑戰時，它會在新節點轉換之前提前最多 5 年啟動。然後我們開始開發工作，分享範例並最終為他們提供新的支援解決方案。

Finally, we must quickly ramp production to high volumes at extremely high levels of quality. The point is it is hard to do. And doing it right, time and again, creates customer trust, and this is the virtuous cycle depicted here. The next dimension of our competitive advantage is our commitment to industry leadership in the areas of technology, global infrastructure and operational excellence. On the technology front, we have a very strong foothold but we steadily continue to invest in research and product development to effectively partner with our customers on incrementally more complex challenges requiring earlier involvement.

最後，我們必須以極高的品質水準快速提高產量。重點是這很難做到。一次又一次地正確行事，可以贏得客戶的信任，這就是這裡描述的良性循環。我們競爭優勢的下一個維度是我們致力於在技術、全球基礎設施和卓越營運領域保持行業領先地位。在技​​術方面，我們擁有非常強大的立足點，但我們繼續穩步投資於研究和產品開發，以便與客戶有效合作，以應對需要早期參與的日益複雜的挑戰。

On the global infrastructure front, our customers are increasingly expecting us to be close to them. So we have ramped our investments in local manufacturing and local tech centers in all major markets. These investments are proving to be a great source of differentiation for us, accelerating learnings and customer engagement. The last ring of this graphic is operational excellence. Our customers continue to expect tighter process windows, more process stability and process control, which we achieved with greater automation, process cleanliness and greater control of our supply lines.

在全球基礎設施方面，我們的客戶越來越期望我們能夠貼近他們。因此，我們增加了對所有主要市場的本地製造和本地技術中心的投資。事實證明，這些投資是我們差異化的重要來源，可以加速學習和客戶參與。該圖的最後一環是卓越的營運。我們的客戶繼續期望更嚴格的製程窗口、更高的製程穩定性和製程控制，我們透過更高的自動化、製程清潔度和對供應線的更好控制來實現這些目標。

The final dimension is our end-to-end offering, which obviously has been greatly strengthened by our combination with CMC materials. No other materials companies serving the semiconductor industry comes close to our breadth of technology capabilities. And we believe this brings huge value to our customers and ultimately means better device performance, lower cost of ownership and faster time to solution.

最後一個維度是我們的端到端產品，顯然我們與 CMC 材料的結合大大增強了這一點。沒有其他服務半導體產業的材料公司能與我們的技術能力相提並論。我們相信這會為我們的客戶帶來巨大的價值，並最終意味著更好的設備性能、更低的擁有成本和更快的解決時間。

Despite the recent downturn, our views have not changed. And we continue to expect global semiconductor revenue to reach $1 trillion by 2030. The digitalization of our lives is accelerating. It is reshaping in very fundamental ways, everything around us, which will drive exponential demand for faster, more energy-efficient and more reliable semiconductors. These themes are all well understood, and I do not believe I need to belabor them today.

儘管最近經濟低迷，但我們的觀點並沒有改變。我們仍然預計到 2030 年全球半導體收入將達到 1 兆美元。我們生活的數位化正在加速。它正在以非常根本的方式重塑我們周圍的一切，這將推動對更快、更節能和更可靠的半導體的指數級需求。這些主題都很容易理解，我認為今天不需要贅述。

My message here is simply that the semiconductor industry is a great place to be. And this is particularly true for Entegris, as you will see on the next slide. Our customers have a major overarching goal, and that is to improve chip performance. And to do this, they have 2 major tools in their toolbox, more complex chip architectures and miniaturization of the critical dimensions on the wafer. To enable this, our customers' technology road maps are calling for new materials and ever-greater process purity to achieve optimal yields and optimal cost. At Entegris, we operate at the intersection of material science and materials purity. And this is precisely what our customers need right now. This is what we mean when we say the market is moving to Entegris.

我在這裡要傳達的訊息很簡單：半導體產業是一個很棒的地方。對於 Entegris 來說尤其如此，您將在下一張幻燈片中看到。我們的客戶有一個主要的總體目標，那就是提高晶片性能。為此，他們的工具箱中有兩個主要工具：更複雜的晶片架構和晶圓關鍵尺寸的小型化。為了實現這一目標，我們客戶的技術路線圖要求新材料和更高的製程純度，以實現最佳產量和最佳成本。在 Entegris，我們致力於材料科學和材料純度的交叉領域。這正是我們的客戶現在所需要的。這就是我們所說的市場正在轉向 Entegris 的意思。

From a material science perspective, these more complex structures mean more layers, more process steps and more novel materials. This translates into more material spend per wafer and greater content per wafer for Entegris, particularly in new leading-edge logic and 3D NAND nodes. From a materials purity perspective, greater miniaturization is making yield management exponentially more challenging and more expensive for our customers. The point here is our solutions help our customers improve their yields. And for example, using our advanced filters can positively impact yields in a fab by several points. The punchline of this slide is that the compounding process complexity of our customers' technology roadmaps is making our solutions increasingly valuable to our customers and this is expected to translate into expanding Entegris content per wafer, expanding served market, and ultimately, it is expected to fuel our market outperformance.

從材料科學的角度來看，這些更複雜的結構意味著更多的層數、更多的製程步驟和更新穎的材料。對 Entegris 來說，這意味著每片晶圓的材料支出更多，每片晶圓的內容更多，特別是在新的前沿邏輯和 3D NAND 節點方面。從材料純度的角度來看，更大的小型化使我們的客戶的產量管理更具挑戰性，成本也更高。這裡的重點是我們的解決方案幫助我們的客戶提高產量。例如，使用我們的先進過濾器可以對晶圓廠的產量產生多方面的正面影響。這張投影片的重點是，我們客戶的技術路線圖的複合製程複雜性使我們的解決方案對我們的客戶越來越有價值，這預計將轉化為擴大每片晶圓的Entegris 內容，擴大所服務的市場，最終預計推動我們的市場表現優異。

These more complex chip architectures and demanding applications like AI are requiring new enabling solutions, solutions like the ones listed on this slide. This is great for Entegris because we are engaged on all these fronts, deploying our unique breadth of capabilities in material science and material's purity to develop enabling solutions, unique solutions, which will result in new revenue streams for Entegris.

這些更複雜的晶片架構和人工智慧等要求嚴苛的應用需要新的支援解決方案，例如本投影片中列出的解決方案。這對Entegris 來說是一件好事，因為我們致力於所有這些領域，利用我們在材料科學和材料純度方面獨特的廣泛能力來開發支援解決方案、獨特的解決方案，這將為Entegris 帶來新的收入來源。

So what does that all mean for Entegris? Well, let me summarize this and introduce, in fact, reaffirm our organic growth algorithm. First, we expect our core market, the semiconductor industry to grow at twice GDP growth. And then we continue to expect to outperform the industry by 3 to 6 points. This outperformance will be driven by greater Entegris content per wafer as we have discussed, and market share gains as we continue to capitalize on our unique portfolio of capabilities to create highly differentiated mission-critical solutions for our customers.

那麼這對 Entegris 意味著什麼？好吧，我來總結一下，介紹一下，其實就是重申我們的自然成長演算法。首先，我們預期我們的核心市場—半導體產業將以GDP成長率的兩倍成長。然後我們繼續預計跑贏業 3 至 6 個百分點。正如我們所討論的，這種優異的表現將由每片晶圓上更高的Entegris 含量以及隨著我們繼續利用我們獨特的能力組合為客戶創建高度差異化的關鍵任務解決方案而獲得的市場份額所推動。

We have made and will continue to make significant investments to realize these growth opportunities. Our R&D investments reflect our commitment to support our customers' technology road maps and are critical to winning positions in new nodes. This is why our R&D spending was up last year, even in a challenging industry environment. And going forward, we expect our R&D spending to be approximately 9% of sales. Our investments in production capacity are also vital for us to fully realize our long-term growth. In the last 2 years, our CapEx has been elevated as we invested in 2 new facilities in Taiwan and Colorado. And going forward, we expect our CapEx to come back down to 10% of sales. And, by the way, we should be close to 10% this year in 2024.

我們已經並將繼續進行重大投資來實現這些成長機會。我們的研發投資體現了我們對支持客戶技術路線圖的承諾，對於贏得新節點的地位至關重要。這就是為什麼我們去年的研發支出增加，即使在充滿挑戰的產業環境下也是如此。展望未來，我們預期研發支出將佔銷售額的 9% 左右。我們對產能的投資對於我們充分實現長期成長也至關重要。過去兩年，我們在台灣和科羅拉多州投資了 2 個新工廠，資本支出有所提高。展望未來，我們預計資本支出將回落至銷售額的 10%。順便說一句，到 2024 年，我們的成長率應該會接近 10%。

Moving on to our 3 divisions, and let's start with our newest materials solution. MS is the combination of the SCM and APS divisions to form a single, almost 100% unit-driven platform. With MS, our customers will benefit from a more robust end-to-end solution set, critical to their road maps, a solution set that improves device performance, reduces time to yield and provides superior cost of ownership for our customers.

前往我們的 3 個部門，讓我們從我們最新的材料解決方案開始。 MS 是 SCM 和 APS 部門的組合，形成一個幾乎 100% 單元驅動的平台。借助微軟，我們的客戶將受益於更強大的端到端解決方案集，這對他們的路線圖至關重要，該解決方案集可以提高設備性能，縮短生產時間並為我們的客戶提供卓越的擁有成本。

Some of the major product lines include advanced deposition materials, CMP, slurries and pads, etching and cleaning chemistries and other specialty materials and gases. All 3 of last year's divestitures came out of this division. We believe we can achieve 4 to 6 points of growth in excess of the industry as we unlock the full potential of our platform and execute on some very exciting opportunities in new materials like molybdenum, etching chemistries and CMP slurries.

一些主要產品線包括先進沉積材料、CMP、漿料和墊、蝕刻和清潔化學品以及其他特殊材料和氣體。去年的全部 3 次剝離均來自該部門。我們相信，隨著我們釋放平台的全部潛力，並在鉬、蝕刻化學品和 CMP 漿料等新材料領域中抓住一些非常令人興奮的機會，我們可以實現超過行業 4 到 6 個百分點的增長。

With this growth and a highly differentiated solution set, we believe we can steadily improve MS margins from 16% last year to 22% to 24% over time. The Advanced Materials Handling division, manufactures, fluid and wafer handling products that ensure higher purity levels and ultimately drives higher yields both within our customers' ecosystems as well as within their fab environment. 60% of AMH revenue is related to new fab construction projects and wafer fab equipment. These capital-driven products include wafer carriers, also known as FOUPs, EUV pods, sensing and control solutions and high-purity valves and tubing. 40% of the business is unit-driven and comprised of products such as chemical containers and finished wafer packaging.

憑藉這種成長和高度差異化的解決方案集，我們相信隨著時間的推移，我們可以將 MS 利潤率從去年的 16% 穩步提高到 22% 至 24%。先進材料處理部門生產流體和晶圓處理產品，確保更高的純度水平，並最終在客戶的生態系統及其晶圓廠環境中提高產量。 AMH 收入的 60% 與新晶圓廠建設項目和晶圓廠設備有關。這些資本驅動的產品包括晶圓載體（也稱為 FOUP）、EUV 吊艙、感測和控制解決方案以及高純度閥門和管道。 40% 的業務是單位驅動的，由化學容器和成品晶圓包裝等產品組成。

Going forward, we expect top line growth of 2 to 4 points in excess of the industry and operating margins in the low to mid-20s. The Microcontamination Control division provides products that address a rapidly growing need in the semiconductor industry for purity and consistency of chemicals and materials. These solutions have become essential for our customers in their quest for yield optimization and long-term device reliability. As feature sizes continue to shrink and as new materials are adopted, the permissible sizing and classes of contaminants as well as their concentration levels are becoming exponentially more stringent. As a result, the push to achieve ever greater process purity translates into the need for more advanced filters, greater frequency of replacement of these filters and also includes the introduction of more points of filtration deeper upstream in the fab supply lines. All of this is expected to drive an outperformance of 5 to 7 points for MC. And given the growing value of these solutions for our customers, we expect operating margins to reach 35% to 37%.

展望未來，我們預期營收成長將超過產業 2 至 4 個百分點，營業利潤率將在 20 左右左右。微污染控制部門提供的產品可滿足半導體產業對化學品和材料的純度和一致性快速增長的需求。這些解決方案對於我們的客戶尋求產量優化和長期設備可靠性至關重要。隨著特徵尺寸的不斷縮小和新材料的採用，允許的污染物尺寸和類別及其濃度水平正變得更加嚴格。因此，實現更高製程純度的努力意味著需要更先進的過濾器、更頻繁地更換這些過濾器，還包括在晶圓廠供應線上游更深處引入更多過濾點。所有這些預計將為 MC 帶來 5 至 7 個百分點的優異表現。鑑於這些解決方案為我們的客戶帶來的價值不斷增長，我們預計營業利潤率將達到 35% 至 37%。

I will now hand it over to Linda.

我現在將其交給琳達。

Thank you, Bertrand, and good morning. Today, I plan to cover a few key topics. First, I will focus on our debt structure and our capital allocation priorities. Then I will turn to the forward-looking financial opportunity for Entegris. The punchline of this slide is that our debt structure is rock solid. We ended 2023 with total debt of $4.7 billion after paying down $1.3 billion last year, a tremendous accomplishment. Debt paydown in 2023 was driven by proceeds from the divestitures of QED and Electronic Chemicals, the business we sold to Element Solutions and free cash flow.

謝謝你，伯特蘭，早安。今天，我計劃討論幾個關鍵主題。首先，我將重點放在我們的債務結構和資本配置優先事項上。然後我將談談 Entegris 的前瞻性財務機會。這張投影片的重點是我們的債務結構堅如磐石。繼去年還清了 13 億美元之後，到 2023 年末，我們的債務總額達到了 47 億美元，這是一項巨大的成就。 2023 年的債務償還是由剝離 QED 和電子化學品（我們將其出售給 Element Solutions 的業務）的收益和自由現金流推動的。

The blended interest rate on the portfolio is a very attractive 5.1%. Our debt is comprised of both fixed rate notes and what remains of the term loan after last year's paydown. While the term loan is technically variable, we have hedged almost the entire $1.4 billion. So we currently have close to 0% variable rate debt. Other important points to note, we have no maturities until 2028 and no maintenance covenants on the debt. So again, our current debt is well structured and derisked.

投資組合的混合利率為非常有吸引力的 5.1%。我們的債務包括固定利率票據和去年還款後剩餘的定期貸款。雖然定期貸款在技術上是可變的，但我們幾乎對沖了全部 14 億美元。因此，我們目前的可變利率債務接近 0%。其他需要注意的要點是，我們在 2028 年之前沒有到期日，也沒有債務維持契約。再說一遍，我們目前的債務結構良好且風險較低。

Looking at our capital allocation priorities going forward, our clear near-term priority is to further reduce our debt with a focus on the term loan. We expect gross leverage to be below 4x by the end of 2024 and net leverage to be below 3.5x. Debt paydown is a powerful contributor to our earnings. Each $100 million of debt paydown equals approximately $0.04 of EPS. The focus on debt paydown will continue to be balanced with making critical investments in our future.

看看我們未來的資本配置優先事項，我們明確的近期優先事項是進一步減少債務，重點是定期貸款。我們預計到 2024 年底總槓桿率將低於 4 倍，淨槓桿率將低於 3.5 倍。債務償還是我們收入的重要貢獻者。每償還 1 億美元的債務相當於每股收益約 0.04 美元。對債務償還的關注將繼續與未來的關鍵投資保持平衡。

As Bertrand mentioned earlier, we plan to invest approximately 9% of revenue in R&D and approximately 10% of revenue in capital expenditures. Also, to maximize our debt repayment, we will drive further working capital improvements and continue what we started in 2023. This is an area of particular focus for me. We will also maximize cash repatriations and, in general, minimize our cash levels. This will be another major focus area for us. We also expect to average about $450 million of global cash on our balance sheet over the course of the year.

正如 Bertrand 先前提到的，我們計劃將約 9% 的收入投資於研發，約 10% 的收入用於資本支出。此外，為了最大限度地償還債務，我們將進一步推動營運資本改善，並繼續我們在 2023 年開始的工作。這是我特別關注的領域。我們還將最大限度地增加現金匯回，並總體上最大限度地減少我們的現金水準。這將是我們另一個主要的關注領域。我們也預計今年資產負債表上的全球現金平均約為 4.5 億美元。

Moving past the near term, we will seek to complement our organic growth with strategic acquisitions. We have a track record of creating shareholder value through M&A. So expect us to remain active on that front at the appropriate time. We will, of course, continue to pay a dividend, and we may consider share repurchases in the future. But for now, share repurchases remain on hold. So next, I want to spend some time on the future earnings power of the company. Not only have we shared this target model externally, but we also use this framework to plan and more importantly, to run our business. It's pretty straightforward.

短期內，我們將尋求透過策略性收購來補充我們的有機成長。我們擁有透過併購創造股東價值的記錄。因此，希望我們在適當的時候在這方面保持活躍。當然，我們會繼續支付股息，未來我們可能會考慮回購股票。但目前，股票回購仍處於擱置狀態。那麼接下來我想花一些時間來談談公司未來的獲利能力。我們不僅對外共享這個目標模型，而且我們還使用這個框架來規劃，更重要的是，來經營我們的業務。這非常簡單。

As you can see, the model shows margin and EPS outcomes at different revenue levels. Core to the model is the assumption of 40% flow-through to EBITDA line over time. That flow-through will be driven by gross margin expansion and SG&A leverage over the next several years. A few other critical assumptions in this model. First, we assume an annual interest expense of approximately $230 million that remains constant in all revenue cases. This implies no additional debt paydown going forward. Of course, we do expect to continue to pay down the term loan, but as this is an illustrative model, we simplified the interest assumption by holding it constant. The model also assumes a tax rate of approximately 16%, depreciation of 5.5% and share count of 152 million shares, again, for all scenarios.

正如您所看到的，該模型顯示了不同收入水平下的利潤率和每股盈餘結果。該模型的核心是假設隨著時間的推移，40% 的資金流入 EBITDA 線。未來幾年，這種流量將受到毛利率擴張和銷售、一般行政費用槓桿的推動。該模型中的其他一些關鍵假設。首先，我們假設年度利息支出約為 2.3 億美元，在所有收入情況下保持不變。這意味著未來不會有額外的債務償還。當然，我們確實希望繼續償還定期貸款，但由於這是一個說明性模型，我們透過保持利率不變來簡化利率假設。該模型還假設所有場景的稅率約為 16%、折舊 5.5% 以及股數為 1.52 億股。

Now focusing on our 3-year financial targets. Bertrand spoke earlier about our sales growth algorithm and our demonstrated performance is a value compounder. So what does this mean in numbers? Starting from the left, we expect an approximately 11% sales growth CAGR from 2023 to 2026. The 2023 baseline excludes last year's divestitures and the business we sold to Element Solutions. In addition, we have excluded PIM from the 2023 baseline as we intend to sell the PIM business. That 11% growth rate assumption is essentially the midpoint of the range Bertrand laid out.

現在重點關注我們的三年財務目標。 Bertrand 早些時候談到了我們的銷售成長演算法，我們所展示的業績是一個價值複合器。那麼這在數字上意味著什麼呢？從左開始，我們預計 2023 年至 2026 年的銷售複合年增長率約為 11%。2023 年的基準不包括去年的剝離和我們出售給 Element Solutions 的業務。此外，我們已將 PIM 排除在 2023 年基準之外，因為我們打算出售 PIM 業務。 11% 的成長率假設基本上是伯特蘭設定的範圍的中點。

This top line CAGR, coupled with the 40% EBITDA flow-through leads to an EBITDA margin of approximately 31% by 2026, which amounts to a CAGR of 15%. Key drivers of this, as I mentioned on the previous slide, are gross margin expansion and SG&A leverage. Taking a closer look at the gross margin improvement opportunity. The drivers of this are expected to be volume growth overall, ramping volumes in our Taiwan and Colorado facilities and the benefits of product mix. For your reference, the 2023 gross margin headwind from our Taiwan facility was approximately 70 basis points. We expect that this headwind will start to alleviate as we ramp volume shipments in the second half of this year.

這項營收複合年增長率，加上 40% 的 EBITDA 流通，到 2026 年，EBITDA 利潤率將達到約 31%，複合年增長率為 15%。正如我在上一張投影片中提到的，這趨勢的關鍵驅動因素是毛利率擴張和銷售、管理及行政費用槓桿。仔細研究毛利率改善機會。預計這一成長的驅動因素是整體銷售成長、台灣和科羅拉多工廠銷售的增加以及產品組合的好處。供您參考，我們台灣工廠 2023 年的毛利率逆風約為 70 個基點。我們預計，隨著今年下半年出貨量的增加，這種不利因素將開始緩解。

Next, we expect EPS to be greater than $5 by 2026. This growth is driven by the EBITDA expansion and a few other key assumptions. First, we are assuming that the $1.4 billion term loan is paid off completely and only the existing bonds remain outstanding. This leads to an annual interest expense of approximately $160 million by 2026. This is different than our target model slide I just showed, where we assumed no additional debt paydown. And as I mentioned on the previous slide, we have assumed a tax rate of approximately 16% and a share count of approximately 152 million.

接下來，我們預計到 2026 年每股收益將超過 5 美元。這一增長是由 EBITDA 擴張和其他一些關鍵假設推動的。首先，我們假設 14 億美元的定期貸款已全部還清，只有現有債券尚未償還。這導致到 2026 年每年利息支出約為 1.6 億美元。這與我剛才展示的目標模型幻燈片不同，我們假設沒有額外的債務償還。正如我在上一張投影片中提到的，我們假設稅率約為 16%，股票數量約為 1.52 億股。

Wrapping things up, we believe our model is highly differentiated. We remain very optimistic about the long-term secular growth of the semiconductor industry. The market is moving to us meaning our unique position and value add is leading to higher Entegris content per wafer and outperformance. Our capital structure is very solid and rapidly improving, which gives us a lot of optionality moving forward.

總而言之，我們相信我們的模式是高度差異化的。我們對半導體產業的長期長期成長仍然非常樂觀。市場正在向我們轉移，這意味著我們獨特的地位和附加價值正在導致每片晶圓更高的 Entegris 含量和卓越的性能。我們的資本結構非常穩固並且正在迅速改善，這給了我們前進的許多選擇。

Finally, the market growth and our outperformance leads to attractive sales growth and with the leverage in our model and our commitment to pay down our debt, accelerated EPS growth. Thank you. This concludes our presentation, and I will turn it back to you, Bill, to moderate the Q&A.

最後，市場成長和我們的優異表現帶來了有吸引力的銷售成長，並且透過我們模型的槓桿作用和我們償還債務的承諾，加速了每股盈餘的成長。謝謝。我們的演講到此結束，比爾，我將把它轉回給你，由你來主持問答。

Thank you, Linda. (Operator Instructions) This is a question that came in different forms from different people. So Bertrand, talk about the drivers of the Q4 results above guidance and then the 6 points of outperformance for 2023, what are the drivers?

謝謝你，琳達。 （操作員說明） 這是不同人以不同形式提出的問題。那麼 Bertrand，請談談第四季業績高於指引的驅動因素，然後是 2023 年表現出色的 6 點，驅動因素是什麼？

Obviously, we were very pleased with the way we finished 2023. All 3 divisions performed very well. MC and AMH were in line or slightly above forecast in Q4 and MS had a very strong finish. Remember that the MS division has the most exposure to memory, which was a headwind earlier in the year, but of course, converted into a tailwind as the memory segment started to recover late 2023.

顯然，我們對 2023 年的結束方式感到非常滿意。所有 3 個部門的表現都非常好。 MC 和 AMH 在第四季度的表現符合或略高於預測，而 MS 的表現非常強勁。請記住，MS 部門對記憶體的敞口最大，這在今年早些時候是一個逆風，但當然，隨著記憶體領域在 2023 年底開始復蘇，它轉變為順風。

Another factor impacting the MS performance in Q4 was the existence of some pull-ins, customer pull-ins, customers trying to get or take advantage of rebates available to them during calendar 2023. But overall, very strong finish to what was a very good year for Entegris. To put that in context, remember that we were very busy in 2023. We completed the acquisition of CMC materials, leading a very aggressive integration project, completing this integration within 13 months post-close. As part of this integration, we successfully divested 3 large businesses generating $1.3 billion of proceeds in the process, which we applied to our debt as we had promised to do.

影響 MS 第四季業績的另一個因素是存在一些拉入、客戶拉入、客戶試圖在 2023 年日曆期間獲得或利用可用的回扣。但總體而言，非常好的結果是非常好的Entegris 的一年。從上下文來看，請記住，2023 年我們非常忙碌。我們完成了 CMC 材料的收購，並領導了一個非常積極的整合項目，在交易結束後的 13 個月內完成了這項整合。作為整合的一部分，我們成功剝離了 3 家大型企業，在此過程中產生了 13 億美元的收益，我們按照承諾將其用於償還債務。

We also managed very effectively the slow industry environment while maintaining strong investments into our future. As you saw, we increased R&D spending in 2023, we largely completed the KSP investment in Taiwan, and we initiated a new investment in Colorado. And as you know, all of those significant projects can be the source of a lot of distraction, a lot of defocus in the organization, and that was not the case. We outperformed the industry by 6 points. We also delivered very healthy levels of EBITDA in 2023, 27%, which is in line with our commitment. So we are exiting 2023 with a very strong platform, a platform that obviously we expect to build upon as we presented today. So it bodes well for 2024 and for the years to come.

我們也非常有效地管理了緩慢的產業環境，同時保持對未來的大力投資。正如你所看到的，我們在2023年增加了研發支出，我們基本上完成了在台灣的KSP投資，並且我們在科羅拉多州啟動了新的投資。如您所知，所有這些重要項目都可能成為組織中大量幹擾和分心的根源，但事實並非如此。我們的表現優於業界 6 個百分點。我們還在 2023 年實現了非常健康的 EBITDA 水平，即 27%，這符合我們的承諾。因此，我們將在 2023 年結束時擁有一個非常強大的平台，顯然我們希望在這個平台上繼續發展，就像我們今天介紹的那樣。因此，這對 2024 年和未來幾年來說是個好兆頭。

Okay. So Chris Kapsch from Loop has a little bit of a double down on that question. So looking at the MC performance, MC performed really well last year in a down market. What are the drivers of that? Is it leading edge? Is it mainstream? What are the major drivers of that?

好的。 Loop 的 Chris Kapsch 在這個問題上有一些雙倍的看法。所以從MC的表現來看，MC去年在低迷的市場中表現得非常好。其驅動因素為何？是前沿嗎？是主流嗎？其主要驅動因素為何？

So thank you for asking that follow-on question. I mean, obviously, if the MS division was the start of our Q4 results, the start of the full year 2023 was our MC division. MC benefited from a strong backlog getting into 2023, but that's really not the full story. The demand for product solutions continue to be very strong through the year. And I want to maybe highlight a few of them. Our gas purification system, for example, continues to perform at very elevated level. As a matter of fact, our Q4 revenue for gas purification systems was at a record level. And that is a function of steady fab construction activity and the fact that those systems have become mostly industry standards now for several years.

感謝您提出後續問題。我的意思是，顯然，如果 MS 部門是我們第四季業績的開始，那麼 2023 年全年的開始就是我們的 MC 部門。進入 2023 年，MC 受益於大量積壓訂單，但這並不是故事的全部。今年對產品解決方案的需求仍然非常強勁。我想強調其中的一些。例如，我們的氣體淨化系統繼續以非常高的水平運作。事實上，我們在第四季度氣體淨化系統的收入達到了創紀錄的水平。這是穩定的晶圓廠建設活動的結果，而這些系統多年來已成為主要的行業標準。

The other part of the Microcontamination division that went -- that performed really strongly in 2023 was the Liquid Filtration platform. You heard me, the quest for materials purity is unabated in this industry. Our customers are really trying to chase higher yields and long-term reliability of their devices. And to do that, they need to continue to increase the purity requirements, chasing ever smaller contaminants and making the permissible concentration levels more stringent. So these forces were at work in 2023. And that's the reason why MC essentially outperformed the industry by close to 16 points. So a massive outperformance level in 2023. And that's a trend that we expect to continue going forward. And that's actually the basis for the level of outperformance we expect to see for the next 2 to 3 years, an outperformed level of 5 to 7 points, as I presented earlier.

微污染部門的另一部分在 2023 年表現非常強勁，那就是液體過濾平台。您聽到了，這個產業對材料純度的追求有增無減。我們的客戶確實在努力追求其設備的更高產量和長期可靠性。為此，他們需要繼續提高純度要求，追求更小的污染物並使允許的濃度水平更加嚴格。因此，這些力量在 2023 年發揮了作用。這就是為什麼 MC 基本上領先於行業近 16 個百分點的原因。因此，到 2023 年，業績將大幅提高。我們預計這一趨勢將繼續向前發展。這實際上是我們預計未來 2 到 3 年表現優異的基礎，即 5 到 7 個點的優異表現，正如我之前提到的。

Okay. Next question from Toshiya from Goldman. So if you can break down the 4% industry growth for 2024, MSI versus CapEx end markets?

好的。高盛的 Toshiya 提出了下一個問題。那麼，如果您能將 2024 年 4% 的產業成長率細分為 MSI 與資本支出終端市場嗎？

So remember that 2024 will be a recovery year for the industry. And by that, I mean that different segments of the industry will be recovering at different times and at different rates. The recovery will be led by Advanced logic and DRAM. 3D NAND is expected to stay relatively muted, especially early in the year. And of course, mainstream fabs have just entered the downturn just a few months ago, and we expect fairly significant wafer start reductions and utilization rates, compression, especially in the first quarter of this year.

因此請記住，2024 年將是該行業的復甦年。我的意思是，該行業的不同領域將在不同的時間以不同的速度復甦。復甦將由先進邏輯和 DRAM 引領。 3D NAND 預計將保持相對平靜，尤其是在今年年初。當然，主流晶圓廠在幾個月前才剛進入低迷期，我們預計晶圓開工率和利用率將出現相當顯著的壓縮，尤其是在今年第一季。

So that's the lay of the land, and that's what we took into account when quantifying our expectation for the industry.

這就是實際情況，這也是我們在量化對該行業的期望時所考慮的因素。

So we expect MSI in that context to be up about 5%. And here again, I'm talking about 2024 compared to 2023. And we expect the industry CapEx to be essentially flat. And here again, remember then talking about the total industry CapEx, not just WFE. So if you blend those 2 numbers, you get to that 4% industry growth in 2024.

因此，我們預計 MSI 在這種情況下將上漲約 5%。在這裡，我再次談論的是 2024 年與 2023 年的比較。我們預計產業資本支出將基本持平。再次強調，我們談論的是整個產業的資本支出，而不僅僅是 WFE。因此，如果將這兩個數字結合起來，您將在 2024 年實現 4% 的行業成長。

And then I'll ask a follow-up from Atif from Citi, which would be, okay, that's the market growth, and we talked about our level of our performance for 2024, what are the drivers of that outperformance in 2024?

然後我會詢問花旗 Atif 的後續情況，好吧，這就是市場成長，我們討論了 2024 年的業績水平，2024 年表現出色的驅動因素是什麼？

Well, the drivers are essentially the drivers we called out in the presentation, right? We expect to continue to benefit from greater Entegris content per wafer. We expect some node transitions in 3D NAND, in particular, in 2024. And we also expect a number of advanced logic manufacturers to start getting ready for significant node transitions late in the year and preparing for 2025. So all of that will contribute to that 4 to 5 points of outperformance in 2024.

好吧，驅動程式本質上就是我們在演示中提到的驅動程序，對嗎？我們預計將繼續受益於每片晶圓較高的 Entegris 含量。我們預計3D NAND 會出現一些節點轉變，特別是在2024 年。我們也預計許多先進邏輯製造商將在今年稍後開始為重大節點轉變做好準備，並為2025 年做好準備。因此，所有這些都將有助於實現這一點2024 年表現優於 4 至 5 個百分點。

Next question, John Roberts, Mizuho. So AMH revenue margin decline in Q4. Can you maybe provide some color around the drivers of that? And then maybe put into context how the AMH performance last year.

下一個問題，約翰·羅伯茨，瑞穗。因此AMH第四季的營收利潤率有所下降。您能否提供一些有關其驅動因素的資訊？然後也許可以考慮一下去年 AMH 的表現。

Maybe I can start with the performance, Linda, and then you can add on the margin. So if you think about AMH, as we have mentioned multiple times, AMH had actually a very significant backlog entering 2024. And that really helped them sustain elevated revenue levels in the first half of the year. That backlog disappeared in Q3 of 2023. And that's really the impact that you are seeing in Q4 of 2023. Going forward, we would expect AMH to steadily recover through the year in 2024.

也許我可以從表演開始，琳達，然後你可以添加邊際。因此，如果您考慮 AMH，正如我們多次提到的那樣，進入 2024 年，AMH 實際上有大量積壓訂單。這確實幫助他們在今年上半年維持了較高的收入水平。該積壓在 2023 年第三季消失。這確實是您在 2023 年第四季看到的影響。展望未來，我們預計 AMH 將在 2024 年全年穩步恢復。

Yes. And regarding margins for AMH in Q4, a couple of drivers I'd call out. First, there was some volume deleveraging with -- based on the revenue. And secondly, some onetime impacts, including our rebalancing between our divisions of the variable compensation. So as Bertrand said, very much expecting a recovery of those margins as we go into Q1 and the rest of 2024.

是的。關於第四季 AMH 的利潤率，我要指出幾個驅動因素。首先，根據收入進行了一定程度的去槓桿化。其次，一些一次性影響，包括我們可變薪酬部門之間的重新平衡。正如 Bertrand 所說，我們非常期望在進入第一季和 2024 年剩餘時間時這些利潤率能夠恢復。

Okay. This will be a combined question. So Chris Kapsch from Loop and David Silver. So first on the Chris Kapsch sort of item number 1 is Bertrand, can you talk a little bit about the progress of the sales synergies from CMC? And then David Silver asked a little bit about some examples from the products that we got from that acquisition and how are those doing in the end-to-end solution.

好的。這將是一個綜合問題。 Loop 的 Chris Kapsch 和 David Silver 就是這樣。那麼，Chris Kapsch 中的第 1 號項目是 Bertrand，您能談談 CMC 的銷售協同效應的進展嗎？然後 David Silver 詢問了一些我們從這次收購中獲得的產品範例，以及這些產品在端到端解決方案中的表現如何。

Okay. So we're very pleased with the way the combination with CMC Materials is shaping out. I talked about a few different metrics. But more importantly, the way the 2 teams have come together is extremely gratifying. And I'm also very, very pleased with the quality of the customer engagements that we've seen in the last 18 months. So all of that contributed to actively seeking new opportunities, different ways to combine and co-optimize solutions across our various platforms, ways to optimize our post-CMP cleaning chemistries based on the better understanding of the salary blends and mix. Ways of optimizing our slurry filtration platform based on the better understanding of the slurry. So all of that has been taking place, as you would expect.

好的。因此，我們對與 CMC Materials 的結合方式感到非常滿意。我談到了一些不同的指標。但更重要的是，兩支球隊走到一起的方式非常令人欣慰。我對過去 18 個月中客戶互動的品質也非常非常滿意。因此，所有這些都有助於積極尋求新的機會、跨不同平台組合和共同優化解決方案的不同方法、基於對薪資組合和組合的更好理解來優化 CMP 後清潔化學的方法。基於對漿料的更好理解來優化我們的漿料過濾平台的方法。正如您所期望的，所有這一切都已經發生。

You should know that as a matter of fact, we had a compensable goal last year looking at the opportunity pipeline and the funnel. And you should know that actually, we not only met that particular objective, but we far exceeded that objective. And that is what is giving us confidence when we talk about the potential of the MS platform going forward. And this is why actually we are committed to outperforming the market by 4 to 6 points in MS for the years to come.

你應該知道，事實上，去年我們在機會管道和漏斗方面有一個可補償的目標。您應該知道，實際上，我們不僅實現了該特定目標，而且遠遠超出了該目標。當我們談論 MS 平台的未來潛力時，這就是給我們信心的原因。這就是為什麼我們實際上致力於在未來幾年在 MS 方面跑贏大盤 4 到 6 個百分點。

Okay. Next question for Linda. So Mike Harrison from Seaport. EBITDA margins, 26% in Q4. How do you see the cadence of EBITDA margins as we go into Q1 and then throughout next year? And what are the drivers?

好的。琳達的下一個問題。來自海港的麥克·哈里森。第四季 EBITDA 利潤率為 26%。當我們進入第一季以及整個明年時，您如何看待 EBITDA 利潤率的節奏？驅動因素是什麼？

So as we go into next year, as we said, the guidance for EBITDA margin is approximately 29%. In Q1, the guidance is approximately 27%. Bertrand mentioned, we're expecting a gradual recovery throughout the year. So you'll see a gradual uptick also in our EBITDA margins. As we look at the drivers, first, there's some volume leverage as an aspect of a driver, there's mix. We always are and will remain very focused on productivity, helping with our margins across the board. And one other item I will mention is last year, I talked a bit about the impact of our inventory reductions on margins. This year, we're absolutely still focused on working capital. But that impact as we continue to reduce inventory will not be as great as it was.

因此，正如我們所說，進入明年，EBITDA 利潤率指引約為 29%。第一季的指引約為 27%。伯特蘭提到，我們預計全年將逐步復甦。因此，您會看到我們的 EBITDA 利潤率也逐漸上升。當我們審視驅動程式時，首先，作為驅動程式的一個方面，有一些音量槓桿，有混合。我們始終並將繼續非常關註生產力，幫助我們全面提高利潤。我要提到的另一件事是去年，我談到了庫存減少對利潤率的影響。今年，我們仍然專注於營運資金。但隨著我們繼續減少庫存，這種影響不會像以前那麼大。

Now, all that the positives, we will still have headwinds in 2024 from the ramp of KSP. I mentioned in the comments that in 2023, those headwinds were approximately 70 basis points. You should think of those headwinds in '24 is about the same to slightly more. Now what will happen in 2024 with KSP is the impact will be heavier in the first half, and then we'll start to alleviate that in the second half. Pulling this all together, we're going to continue to balance between investment and cost. And as we talked about, we are going to manage to that 40% EBITDA flow-through. So that gives you the context of how I see 2024 EBITDA margins coming together.

現在，儘管有所有積極因素，但到 2024 年，我們仍將面臨 KSP 成長帶來的阻力。我在評論中提到，到 2023 年，這些阻力大約是 70 個基點。你應該想到 24 年的那些逆風大致相同甚至略多。現在KSP在2024年會發生的情況是，上半年的影響會更大，然後我們會在下半年開始減輕影響。綜上所述，我們將繼續在投資和成本之間取得平衡。正如我們所說，我們將設法實現 40% 的 EBITDA 流通。以上就是我對 2024 年 EBITDA 利潤率的看法。

Okay. Another question for you, Linda, from Bhavesh from BMO is, can you update us, we've obviously presented some information in the presentation, how are you looking at leverage going forward?

好的。來自 BMO 的 Bhavesh 的琳達，另一個問題是，您能否更新我們的最新情況，我們顯然在演示中提供了一些信息，您如何看待未來的槓桿作用？

Yes. So I mentioned in the presentation that by the end of 2024, we expect gross leverage to be less than 4x and we expect our net leverage to be less than 3.5x. As we continue to go forward beyond 2024, we will continue to focus on deleveraging, but we will also retain some optionality. The great news is, as I talked about in the presentation, is we have a rock-solid capital structure. And so as we move forward, we want to balance between the deleveraging and some of the optionality we'll have going forward. The most important thing is we will continue, as we've demonstrated, to be prudent in our capital allocation strategies.

是的。因此，我在演示中提到，到 2024 年底，我們預計總槓桿率將低於 4 倍，淨槓桿率將低於 3.5 倍。 2024年後，我們將繼續專注於去槓桿，但我們也會保留一些選擇性。正如我在演講中談到的，好消息是我們擁有堅如磐石的資本結構。因此，當我們前進時，我們希望在去槓桿化和未來的一些選擇性之間取得平衡。最重要的是，正如我們所證明的那樣，我們將繼續謹慎對待我們的資本配置策略。

Bertrand, this comes from Aleksey from KeyBanc. Guiding to 9% R&D as a percentage of sales. Is this -- why is this critical? And is this part of -- is this a driver for the outperformance? Maybe just put that -- some color around that.

Bertrand，這是來自 KeyBanc 的 Aleksey。研發佔銷售額的比例指引為 9%。這是——為什麼這很重要？這是否是業績優異的驅動因素？也許只是加上一些顏色。

Multiple different noise to actually think about that number and what -- why that number has been growing over time. And the first one is the complexity of the challenges our customers are inviting us to collaborate on is, as I mentioned, growing. You should also know that because of that, we are invited to collaborate with our customers earlier in their technology process development cycle. So all of that contributes to that greater spend. And then there's just the number of new opportunities ahead of us. The fact that we expect the Entegris content per wafer to continue to grow. It's just indicative of the fact that our customers see the value that Entegris can provide, see the value of that end-to-end solution capability that we are marketing.

多種不同的噪音來實際思考這個數字以及為什麼這個數字隨著時間的推移而不斷增長。第一個是，正如我所提到的，我們的客戶邀請我們合作應對的挑戰的複雜性正在增加。您還應該知道，正因為如此，我們被邀請在客戶的技術流程開發週期的早期與他們合作。因此，所有這些都有助於增加支出。我們面前還有大量的新機會。事實上，我們預計每片晶圓的 Entegris 含量將持續成長。這只是表明我們的客戶看到了 Entegris 可以提供的價值，看到了我們正在行銷的端到端解決方案能力的價值。

They understand that it's going to be key to not only device performance, but also time to yield and ultimately, time to node transition, all of which are extremely important for our customers. But to do that and to really realize the opportunities ahead of us, we have to be willing to invest in R&D. And that's something that we did in the current downturn in 2023, and that's the level of investment that we are committed to maintaining an increase for the years to come.

他們明白，這不僅對設備性能至關重要，而且對良率時間以及最終節點過渡時間也至關重要，所有這些對我們的客戶來說都極為重要。但要做到這一點並真正實現我們面前的機遇，我們必須願意投資研發。這就是我們在 2023 年當前經濟低迷時期所做的事情，也是我們致力於在未來幾年保持成長的投資水準。

Okay. Charles Shi, can you talk about the market and revenue progression as we go through '24? And then I'll add a little flavor on that, and he asked about -- okay, so we talked about MSI and CapEx for this year. How do you see that kind of going forward as well?

好的。 Charles Shi，您能談談我們 24 世紀的市場和收入進展嗎？然後我會對此添加一點風味，他問到 - 好吧，所以我們討論了今年的 MSI 和資本支出。您如何看待這種未來的發展？

Yes. So first, let's start with the first quarter, right? I mean we are guiding sequentially down 4%, which is in line with normal seasonal cycles. And again, a reflection of the fact that many of our customers in Advanced Logic and of course, in mainstream logic have indicated a sequential compression in fab utilization. From there on, we expect actually steady sequential increase in revenue as again, we expect growth in advanced logic. We expect further recovery in memory and we expect also more stable conditions at some point in the year from our mainstream customers.

是的。首先，讓我們從第一季開始吧？我的意思是，我們的指導方針是連續下降 4%，這與正常的季節性週期相符。這再次反映了這樣一個事實：我們的許多高階邏輯客戶，當然還有主流邏輯客戶都表示晶圓廠利用率正在連續壓縮。從那時起，我們預計收入實際上會穩步連續成長，我們預計先進邏輯也會成長。我們預計記憶體將進一步恢復，我們預計主流客戶在今年某個時候的情況也會更加穩定。

Excellent. Question from Aleksey on Taiwan, the facility there, the volumes ramping in the second half, what does that mean for the first half? And where are we at with that facility?

出色的。來自台灣的 Aleksey 提出的問題，那裡的設施，下半年銷量的增加，這對上半年意味著什麼？那個設施我們現在處於什麼位置？

Maybe I can take the first part. Linda, if you want to maybe elaborate a little bit on the margin impact. But let me just say that we are very pleased with the progress we have made in the construction phase of our KSP investment. Today, we have about 200 employees on site. Our internal qualifications are progressing rapidly and progressing well. And in a few cases, customer qualifications have already started. So we expect revenue to be generated out of that facility in the second half of the year. I mean, we are already taking some orders, customer orders, but they are actually very small right now. We would expect the level of revenue from the KSP facility to reach somewhere between $40 million to $50 million for the year in 2024.

也許我可以參加第一部分。琳達，如果您想詳細說明一下利潤影響。但我只想說，我們對 KSP 投資建設階段所取得的進展感到非常高興。如今，我們現場約有 200 名員工。我們的內部資格進步很快，進展順利。在某些情況下，客戶資格已經開始。因此，我們預計該設施將在今年下半年產生收入。我的意思是，我們已經接受了一些訂單，客戶訂單，但現在它們實際上很小。我們預計 2024 年 KSP 設施的收入水準將達到 4,000 萬至 5,000 萬美元。

Right. So taking that to the margin side, think about it across the 4 quarters, in the first couple of quarters, we have cost. And then as Bertrand said, the revenues will start ramping up, that will start to offset some of that cost. So we still have a headwind from KSP in 2024, but we're starting to alleviate that as we progress through 2024, and that will continue into 2025.

正確的。因此，從利潤方面來看，考慮這四個季度，在前幾個季度，我們有成本。然後，正如伯特蘭所說，收入將開始增加，這將開始抵消部分成本。因此，2024 年我們仍然面臨 KSP 的阻力，但隨著 2024 年的進展，我們開始緩解這種阻力，這種情況將持續到 2025 年。

And then I will ask a similar question, and you talked a little bit about this Linda already from Toshiya. You talked about EBITDA drivers and trends. So how would you position gross margin trends and improvement opportunities going forward?

然後我會問一個類似的問題，你已經從 Toshiya 那裡談到了 Linda。您談到了 EBITDA 驅動因素和趨勢。那麼，您如何定位未來的毛利率趨勢和改進機會？

Well, a lot of the trends that improved EBITDA I mentioned -- that I mentioned really are around the gross margin aspect. So I mentioned, for example, productivity. A lot of the productivity will come around gross margin. In addition, some of the volume ramps really impact the gross margin. Now volume ramps also, when it comes to EBITDA, give us SG&A leverage. So it's both. But as we grow in that volume ramps, we will get more plant utilization. So those are some of the big drivers that come to my mind as we think about that evolution of gross margin throughout 2024.

嗯，我提到的許多改善 EBITDA 的趨勢實際上都是圍繞著毛利率方面的。例如，我提到了生產力。大部分生產力將圍繞毛利率實現。此外，一些銷量的成長確實影響了毛利率。現在，就 EBITDA 而言，銷售量也在增加，這為我們提供了 SG&A 槓桿。所以兩者都是。但隨著我們產量的成長，我們將獲得更多的工廠利用率。當我們思考 2024 年毛利率的演變時，這些是我想到的一些重要驅動因素。

Bertrand a word from Aleksey, here from KeyBanc. And what's -- how would you qualify the opportunity and gate-all-around?

Bertrand 來自 Aleksey 的一句話，來自 KeyBanc。那麼，您將如何限定機會和全面的大門？

So during the presentation, we highlighted a number of new opportunities, gate-all-around being one of them. And this is just another flavor of those 3D architectures that we expect to proliferate in the industry in the years to come. So specifically around gate-all-around, we expect to see opportunities around, new precursor materials, slurries and other polishing solutions as well as etching chemistries and solutions for ion implant as well. So we believe that we are in the very early innings of the adoption of that particular architecture. And as you saw on the analysis in terms of wafer content, we expect that to be a big driver for the increase we expect to see from 5-nanometer all the way to 1.4 nanometer in Advanced logic.

因此，在演示過程中，我們強調了許多新的機會，gate-all-around 就是其中之一。這只是我們預計未來幾年將在業界普及的 3D 架構的另一種風格。因此，特別是圍繞全柵，我們預計會看到新的前驅材料、漿料和其他拋光解決方案以及蝕刻化學品和離子注入解決方案的機會。因此，我們相信我們正處於採用該特定架構的早期階段。正如您在晶圓含量分析中看到的那樣，我們預計這將成為高級邏輯從 5 奈米一直到 1.4 奈米成長的一大推動力。

A little bit of a follow-up there in terms of applications, silicon carbide, slurry and pads, what -- obviously, for us, silicon carbide did really well this year, slurries, any updates? Any color you can provide there?

在應用方面有一點後續行動，碳化矽，漿料和墊，顯然，對我們來說，今年碳化矽做得非常好，漿料，有什麼更新嗎？你們那裡可以提供什麼顏色嗎？

Yes. So this is a great area of focus for the company. We mentioned that today, it is still a fairly small part of our business. Think about revenue levels in the $40 million to $50 million range on an annual basis. But that business did double from 2022 to 2023. And we expect that business to continue to do extremely well. And here, I'm talking really about slurries, but remember that there are a lot of other opportunities for us around power electronics. So beyond slurries, we have great opportunity for the pad solutions that really work hand in glove with the slurries that we are providing our customers in power electronics. There are also great opportunities in terms of gas purification systems and in terms of post-CMP cleans. So I think this is a market segment that is emerging and that is growing very fast and an area where we are very focused.

是的。因此，這是公司重點關注的領域。我們提到，今天，它仍然只占我們業務的一小部分。考慮每年 4,000 萬至 5,000 萬美元的收入水準。但從 2022 年到 2023 年，該業務確實翻了一番。我們預計該業務將繼續表現出色。在這裡，我真正談論的是漿料，但請記住，圍繞電力電子裝置，我們還有很多其他機會。因此，除了漿料之外，我們還有很好的機會來開發拋光墊解決方案，這些解決方案與我們為電力電子領域的客戶提供的漿料真正緊密結合。在氣體淨化系統和 CMP 後清潔方面也存在巨大的機會。所以我認為這是一個正在興起且成長非常快的細分市場，也是我們非常關注的領域。

Okay. Next question, Linda, Tim Arcuri from UBS. How would you compare the 3-year target from September '22 to the one we provided today, EPS target, how do you compare those on a like-for-like basis?

好的。下一個問題是來自瑞銀的 Linda、Tim Arcuri。您如何將 22 年 9 月的 3 年目標與我們今天提供的 EPS 目標進行比較？您如何在同類基礎上比較這些目標？

Absolutely. Good question. So our current 3-year target, if you look out to 2026, we do have less revenue. It's driven by 2 key factors: Number one, divestitures. So as we said, we had the 2023 divestitures, which we all know about. Also, we exclude PIM as we look at this 3-year target model. Secondly, the 2023 downturn has been longer than expected. So that does impact the long-term revenue number. Now on the good news front, our divestiture program has been ahead of schedule. That's really important here. So got the divestitures done faster, paid down debt faster and have a lower interest rate as a result of that. So that's really critical as we think about where we are when we look at 2026. There's a couple of other key positives. The tax rate is a bit lower and the divestitures give us a bit of EBITDA accretion. So you factor that all in and you look at 2026 and the 3-year target and the punchline is at the same revenue levels, we are delivering more EPS. So it's a very good outcome when we look at this 3-year target model.

絕對地。好問題。所以我們目前的 3 年目標，如果你展望 2026 年，我們的收入確實會減少。它由兩個關鍵因素驅動：第一，資產剝離。正如我們所說，我們在 2023 年進行了資產剝離，這是眾所周知的。此外，在研究這個 3 年目標模型時，我們排除了 PIM。其次，2023年的經濟低迷時間比預期長。所以這確實會影響長期收入數字。現在好消息是，我們的剝離計劃已經提前完成。這裡非常重要。因此，我們更快地完成了資產剝離，更快地償還了債務，並因此降低了利率。因此，當我們思考 2026 年我們所處的位置時，這一點非常重要。還有其他一些關鍵的正面因素。稅率稍微低一點，資產剝離給我們帶來了一些 EBITDA 增加。因此，您將所有因素考慮在內，看看 2026 年和 3 年目標，重點是在相同的收入水平下，我們將提供更多的每股收益。因此，當我們審視這個三年目標模型時，這是一個非常好的結果。

Okay, Bertrand. So David Silver has a question about with these -- we addressed this in the presentation a little bit, but with these more complicated technology road maps, how is our interactions with our customers changing in the leading edge and what do we need to do more with them?

好吧，伯特蘭。因此，大衛·西爾弗對此有一個疑問——我們在演示中稍微解決了這個問題，但有了這些更複雜的技術路線圖，我們與客戶的互動如何在前沿發生變化，以及我們需要做更多的事情跟他們？

So first of all, with the technology road maps becoming more challenging with our customers, in fact, trying to accelerate the transition to new process technology opportunity is really a bond for Entegris. So the level of engagement has increased, as they see Entegris as a very unique partner and, frankly, in many cases, an indispensable partner for them to achieve new levels of device performance, acceptable yields and again compress time to solution. So as I mentioned, we're investing more in R&D. We are more specifically investing a lot in regional tech centers. We already have a very significant investment in Taiwan. We announced late 2023 a similar investment in Korea in order to, again, engage more effectively locally with all of the technology leaders in the space.

因此，首先，隨著技術路線圖對我們的客戶變得越來越具有挑戰性，事實上，嘗試加速向新製程技術機會的過渡對於 Entegris 來說確實是一個紐帶。因此，參與度有所提高，因為他們將Entegris 視為一個非常獨特的合作夥伴，坦率地說，在許多情況下，對於他們實現新水平的設備性能、可接受的產量並再次壓縮解決方案時間來說，這是一個不可或缺的合作夥伴。正如我所提到的，我們正在加大研發投資。更具體地說，我們對區域技術中心進行了大量投資。我們已經在台灣進行了大量投資。我們在 2023 年底宣佈在韓國進行類似投資，以便再次在當地與該領域的所有技術領導者進行更有效的接觸。

Those local investments in tech centers are, in fact, a great differentiator, very few, if any, of our competitors really provide those capabilities and those options for our customers. And I think it really reinforces the quality of the customer interaction. It also speeds up the cycles of learning, both for our customers as well as for Entegris. So we are very focused on continuing to improve the quality of this very symbiotic relation that we have developed with our customers for many years now.

事實上，這些對技術中心的本地投資是一個很大的差異化因素，我們的競爭對手中很少（如果有的話）真正為我們的客戶提供這些功能和選擇。我認為這確實提高了客戶互動的品質。它還加快了我們的客戶和 Entegris 的學習週期。因此，我們非常專注於繼續提高我們與客戶多年來建立的這種共生關係的品質。

Okay. So this is probably for Linda. So Bhavesh from BMO, and I'm going to combine something to this as well. So he's talking about Materials Solutions, down sequentially in the margins post divestiture? And how do you see Materials Solutions margins going forward? Obviously, we presented a pretty significant improvement in the model, so provide some color around that.

好的。所以這可能是給琳達的。來自 BMO 的 Bhavesh，我也將為此結合一些東西。所以他談的是材料解決方案，剝離後利潤率持續下降？您如何看待材料解決方案未來的利潤率？顯然，我們對模型進行了相當顯著的改進，因此請圍繞它提供一些顏色。

Yes, of course. So first of all, I think Bhavesh what you're referring to is from Q3 to Q4, we have somewhat flat margins. This first piece comes back to the divestitures. If you remember, Bertrand mentioned that the divestitures that took place in 2023 were all in the MS division. These divestitures had low OpEx. So while we have gross margin accretion, particularly when you look at MS on its own, with these low OpEx businesses, you don't see the accretion on the division profit line. But as we go forward, MS, as we spoke about earlier, and as Bertrand mentioned, has tremendous opportunity. First, it's a unit-driven business. We are going to see volumes ramp up. We're going to see the benefits of that across the MS portfolio.

是的當然。首先，我認為 Bhavesh 你指的是從第三季到第四季度，我們的利潤率有些持平。第一部分回到資產剝離。如果你還記得的話，Bertrand 提到 2023 年發生的剝離全部是在 MS 部門。這些資產剝離的營運支出較低。因此，雖然我們的毛利率有所增加，特別是當您單獨觀察微軟時，由於這些營運支出較低的業務，您在部門利潤線上看不到毛利率的增加。但隨著我們的前進，正如我們之前談到的，正如 Bertrand 所提到的，MS 擁有巨大的機會。首先，它是一個單位驅動的業務。我們將看到銷量增加。我們將在整個 MS 產品組合中看到這一點的好處。

In addition, we will continue to invest R&D is critical, but we will get SG&A leverage. This applies to the company as well as MS, if you think about the ramp, as sales goes up, something like sales and marketing is not going to increase at the same rate as our sales are increasing, so with all the opportunities around the solution set, really the core of why we brought the divisions together, we really see this opportunity and are comfortable with how we're thinking about the longer-term margin potential for MS.

此外，我們將繼續投資研發，這一點至關重要，但我們將獲得SG&A槓桿。這適用於公司和微軟，如果你考慮一下增長，隨著銷售額的上升，銷售和營銷之類的事情不會以與我們的銷售額增長相同的速度增長，因此圍繞解決方案的所有機會這確實是我們將各個部門合併在一起的核心原因，我們確實看到了這個機會，並且對我們如何考慮MS 的長期利潤潛力感到滿意。

Okay. And then a little bit on this -- on a divisional basis, the progression of MC margins going forward, what are the improvement drivers for MC margins going forward?

好的。然後再談一點——在部門基礎上，MC 利潤率的進展，MC 利潤率的改善驅動因素是什麼？

Well, so MC, there's a lot of similarities across the various divisions. As we said, 2024, gradual recovery, but our long-term view on the market, we've talked about it, and it's very positive. So there's MC will -- again, we have the benefit of the portfolio. And as our customers do need more filtration products, this is a very attractive portfolio, attractive from a mix perspective. And so therefore, we will get that benefit. We'll get the volume leverage. And as KSP ramps, some of that's happening in the second half of '24, more into '25, that's really going to help us from a margin perspective on MC also.

嗯，MC，各部門有很多相似之處。正如我們所說，2024 年將逐步復甦，但我們對市場的長期看法，我們已經討論過，而且非常積極。因此，MC 將再次從該投資組合中受益。由於我們的客戶確實需要更多的過濾產品，因此這是一個非常有吸引力的產品組合，從混合角度來看都很有吸引力。因此，我們將獲得這種好處。我們將獲得成交量槓桿。隨著 KSP 的發展，其中一些發生在 24 年下半年，更多是在 25 年，從 MC 的利潤角度來看，這確實會對我們有所幫助。

So in terms of -- maybe there's a couple of questions around the Chips Act, Bertrand. So maybe you can provide a couple of updates on the progress there and what people should expect.

因此，伯特蘭，也許圍繞著《籌碼法》存在一些問題。因此，也許您可以提供一些有關進展的最新資訊以及人們應該期待什麼。

Yes. So as you'll remember, we made a big announcement last year around an investment in a new facility in Colorado. Multiple phases to this investment. Phase 1 is the one that we initiated last year. Phase 1 is about $280 million. And we believe that this project is very much in line with the overall objectives of the U.S. Chips Act, which, as you know, is trying to promote the development of a domestic supply chain or resilient domestic supply chain and derisk supply chain risks for the many new fabs that are expected to be built here in the U.S. So we've been in dialogue, active dialogue with the Chips program office. We believe that those discussions have been very constructive and very positive, and we will update you when we have more specifics to share.

是的。正如您所記得的，我們去年發布了一項重大公告，投資科羅拉多州的新工廠。這項投資分為多個階段。第一階段是我們去年啟動的階段。第一階段耗資約2.8億美元。我們認為這個項目非常符合美國《晶片法案》的總體目標，正如大家所知，該法案正在努力促進國內供應鏈或彈性國內供應鏈的發展，並為全球企業化解供應鏈風險。預計將在美國建造許多新的晶圓廠。因此，我們一直在與Chips 專案辦公室進行積極的對話。我們相信這些討論非常有建設性和積極性，當我們有更多具體資訊可以分享時，我們會向您通報最新情況。

Okay. Going a little bit on some of the end markets and some of the products here, Bhavesh from BMO. We talk a lot about molybdenum. Anything -- any color you can add around why is that important? And what does it look like going forward?

好的。 BMO 的 Bhavesh 介紹了一些終端市場和這裡的一些產品。我們談了很多關於鉬的話題。任何東西——任何你可以添加的顏色，為什麼這很重要？未來會怎樣？

Yes, we have been talking a lot about molybdenum as an example of the new class of precursor materials that we expect the industry to turn to as they look for thinner film materials with similar or better electrical performance. We expect those materials to be first introduced in the 3D NAND architectures and then at some point, in Advanced logic as well. So we have been spending a lot of time positioning our solution offering with the leading 3D NAND players. Remember that we believe that we have a very unique capabilities around those solid precursors, not just the ability to provide the material, but also to provide an industry-leading delivery system that can very effectively deliver the material onto the wafer at a very attractive total cost of ownership.

是的，我們一直在談論鉬作為新型前驅材料的一個例子，我們預計業界在尋找具有相似或更好電氣性能的更薄薄膜材料時會轉向鉬。我們預計這些材料將首先引入 3D NAND 架構，然後在某個時候引入高級邏輯。因此，我們花了大量時間將我們的解決方案產品定位於領先的 3D NAND 廠商。請記住，我們相信我們在這些固體前驅體方面擁有非常獨特的能力，不僅有能力提供材料，而且還提供行業領先的輸送系統，可以非常有效地將材料以非常有吸引力的總量輸送到晶圓上擁有成本。

So we believe that the 3D NAND players will likely adopt molybdenum, whether they adopt this new molecule at 200 layers or we have to wait until 300 layers remains a question mark. But I think we are very, very close. And I think our confidence level has increased significantly in the last several years. So again, this is exciting. This is one of the reasons why you see the increase in SAM in terms of Entegris content per-wafer opportunity in 3D NAND, essentially double from what it is today at 176 layers. And when we think about what it could be tomorrow at 500 layers.

因此，我們相信3D NAND廠商很可能會採用鉬，但他們是否會在200層採用這種新分子，還是必須等到300層仍然是一個問號。但我認為我們非常非常接近。我認為我們的信心水平在過去幾年中顯著提高。再說一遍，這很令人興奮。這就是您看到 3D NAND 中每晶圓 Entegris 內容機會增加的原因之一，基本上是目前 176 層的兩倍。當我們思考明天 500 層會是什麼樣子。

Yes. And a little -- a follow-up and a few questions that came through. In last Analyst Day, we talked about the filtration benefits or in the content per wafer, similar to what you were just talking about. Is that the same story where the content per wafer in filtration is still very positive going forward? And what are the drivers?

是的。還有一點——後續行動和提出的一些問題。在上一次分析師日，我們討論了過濾優勢或每片晶圓的含量，與您剛才談論的類似。這是否也是同樣的情況，即過濾中每片晶圓的含量仍然非常積極？驅動因素是什麼？

Yes. I mean the story remains the same, and you can actually see evidence of that in the level of outperformance we expect to see in our Microcontamination division. The only reason we have not normalized that opportunity on a per-wafer basis is simply that it's just getting harder to do because the opportunity for us in terms of advanced filtration usage is not just in the fab environment, which is something that we can track fairly precisely. But that opportunity is really expanding upstream in the supply lines, and that gets actually a lot harder to track and to link precisely to a particular device architectures.

是的。我的意思是，故事仍然是一樣的，你實際上可以從我們期望在微污染部門看到的優異表現水平中看到這一點的證據。我們沒有將每個晶圓上的機會標準化的唯一原因是，這變得越來越難，因為我們在先進過濾使用方面的機會不僅僅存在於晶圓廠環境中，這是我們可以追蹤的相當準確。但這種機會確實在供應鏈的上游擴展，而這實際上變得更難追蹤並精確連結到特定的設備架構。

As you know, in order to achieve atomic levels of purity, our fab customers are increasingly asking their bulk chemical manufacturers to achieve significantly higher levels of purity. And as a result of that, we are seeing greater introduction of new points of filtrations, upstream in the supply lines. Those new points of filtrations are using more advanced filters and the frequency of change out is also increasing. So all of that are the fundamental drivers for our Microcontamination business. So nothing has changed. It's just hard for us to pin that to a particular technology node and to normalize that to a wafer number.

如您所知，為了達到原子級的純度，我們的晶圓廠客戶越來越多地要求其散裝化學品製造商實現更高的純度。因此，我們看到供應線上游更多地引入新的過濾點。這些新的過濾點正在使用更先進的過濾器，更換頻率也在增加。因此，所有這些都是我們微污染業務的基本驅動力。所以什麼都沒有改變。我們很難將其固定到特定的技術節點並將其標準化為晶圓編號。

Okay. This will be the final question from Toshiya from Goldman. Obviously, debt paydown is a priority in the near term. M&A historically has been a big driver of growth for the company. So the question Bertrand is what are we looking for when we start to do M&A again, what are the characteristics that we're looking for in a potential target?

好的。這將是高盛 Toshiya 提出的最後一個問題。顯然，償還債務是近期的首要任務。從歷史上看，併購一直是公司成長的重要動力。因此，Bertrand 的問題是，當我們再次開始進行併購時，我們在尋找什麼？我們在潛在目標中尋找的特徵是什麼？

Look, I think we are blessed at Entegris with a very exciting platform, a platform that provides a lot of optionality. I mean, obviously, the organic growth story is very compelling. But on top of that, I think that we can certainly create additional long-term shareholder value by very selectively go after M&A targets. This is what we've done in the past 10 years. This is what you should expect us to continue to do. And we have demonstrated that we are a really good integrator of businesses. And I think what I was mentioning earlier around how well the integration of CMC has gone is probably the latest proof point to that statement.

看，我認為 Entegris 有幸擁有一個非常令人興奮的平台，一個提供許多選項的平台。我的意思是，顯然，有機成長的故事非常引人注目。但最重要的是，我認為我們肯定可以透過非常有選擇性地追求併購目標來創造額外的長期股東價值。這就是我們過去10年所做的事情。這是您應該期望我們繼續做的事情。我們已經證明我們是一個真正優秀的業務整合者。我認為我之前提到的 CMC 整合進展順利可能是該聲明的最新證據。

Having said all of that, I will go back to what Linda said, our first order of priority right now is to bring the debt down. So expect us to do that and to be focused on that. But keep in mind that there are a lot of options available to us to deploy our capital and to create additional value for our shareholders going forward.

說了這麼多，我要回到琳達所說的，我們現在的首要任務是降低債務。因此，期望我們能夠做到這一點並專注於這一點。但請記住，我們有很多選擇可以部署我們的資本並為我們的股東創造額外的價值。

Great. Well, thank you very much for joining us on the webcast today. We will provide -- a recording will go up on our website by the end of the day. If you have any further questions, please reach out to me. We really look forward to seeing many of you in the coming weeks. Thank you again, and have a great day.

偉大的。非常感謝您今天加入我們的網路廣播。我們將在當天結束前在我們的網站上提供錄音。如果您還有任何疑問，請與我聯絡。我們非常期待在接下來的幾週內見到你們中的許多人。再次感謝您，祝您有美好的一天。