Entegris Inc (ENTG) 2024 Q4 法說會逐字稿

Welcome to the Entegris fourth quarter and full year 2024 earnings conference call. (Operator Instructions)

歡迎參加 Entegris 2024 年第四季和全年財報電話會議。（操作員指令）

I would now like to turn the call over to Bill Seymour, Vice President of Investor Relations.

現在我想將電話轉給投資者關係副總裁比爾·西摩 (Bill Seymour)。

Good morning, everyone. Earlier today, we announced the financial results for our fourth quarter of 2024. 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.

大家早安。今天早些時候，我們公佈了 2024 年第四季的財務業績。在我們開始之前，我想提醒聽眾，我們今天的評論將包括一些前瞻性的陳述。這些聲明涉及許多風險和不確定性，實際結果可能與前瞻性聲明中的預測有重大差異。

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. 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.

有關這些風險和不確定性的更多資訊包含在我們向美國證券交易委員會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幻燈片中的資訊。在本次電話會議上，我們還將參考美國證券交易委員會 (SEC) 和 G 條例定義的非公認會計準則財務指標。

As we referenced in last quarter's call, we have combined our MC and AMH division. The name of the new division is Advanced Purity Solutions, or APS. To assist you in your modeling, we have provided in the appendix of the earnings slides recast financials for this new division going back eight quarters.

正如我們在上個季度的電話會議中提到的，我們合併了 MC 和 AMH 部門。新部門的名稱是 Advanced Purity Solutions（APS）。為了幫助您進行建模，我們在收益幻燈片的附錄中提供了該新部門過去八個季度的財務重述。

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

今天參加電話會議的有我們的執行長 Bertrand Loy；以及我們的財務長 Linda LaGorga。說完這些，我會把電話交給伯特蘭。

Thank you, Bill, and good morning. I am pleased that we were able to cap off 2024 with strong performance. In the fourth quarter, our revenue excluding divestitures grew 11% year-on-year and was above our guidance range. This performance was driven by highest quarterly sales for Materials Solutions in over two years and all-time high quarterly sales for Advanced Purity Solutions. Profitability was also solid in the quarter. Gross margin and EBITDA margin were within guidance, and non-GAAP EPS was above our guidance.

謝謝你，比爾，早安。我很高興我們能夠以出色的表現結束 2024 年。第四季度，我們的不包括資產剝離在內的營收年增11%，高於我們的預期範圍。這一業績得益於材料解決方案部門兩年多來最高的季度銷售額以及高級純度解決方案部門歷史最高的季度銷售額。本季的獲利能力也很穩健。毛利率和 EBITDA 利潤率均在預期範圍內，非 GAAP EPS 則高於我們的預期。

Looking at the full year. Our semiconductor customers with significant exposure to advanced logic and AI performed very well, but the rest of the industry remained weak throughout 2024. In addition, there were no significant technology node transitions in logic or memory, which limited our opportunity to further increase our content per wafer.

放眼全年。我們在先進邏輯和人工智慧方面有大量投入的半導體客戶表現非常出色，但整個 2024 年，該行業的其他部分仍然表現疲軟。此外，邏輯或記憶體方面沒有重大的技術節點轉變，這限制了我們進一步增加每個晶圓內容的機會。

With this industry backdrop, I am very pleased with our overall results. During the year, excluding divestitures and the impact of currency, our revenue grew more than 5%, yielding an estimated market outperformance of 3 to 4 points. Sales of our Materials Solutions divisions were up 11% for the year, excluding divestitures. For AMS, growth was particularly strong in CMP consumables, advanced deposition materials, and selective etching chemistries.

在這樣的產業背景下，我對我們的整體業績非常滿意。這一年，除去資產剝離和貨幣影響，我們的收入成長了 5% 以上，預計比市場表現高出 3 到 4 個百分點。不包括資產剝離，我們材料解決方案部門的銷售額全年成長了 11%。對於 AMS 而言，CMP 耗材、先進沉積材料和選擇性蝕刻化學品的成長尤為強勁。

For additional context, I would like to highlight that last year, CMP slurry revenue grew 14% and CMP pads grew 24%. We are also encouraged by new ethical POR positions, including more than doubling our slurry content from N3 to N2. This performance is a testament to the great work the team has done since our combination with CMC. There's still more to be done to harvest the full benefits of the CMC deal, but the team is making excellent progress.

為了補充背景訊息，我想強調的是，去年，CMP 漿料收入成長了 14%，CMP 墊收入成長了 24%。我們也受到新的道德 POR 立場的鼓舞，其中包括將我們的泥漿含量從 N3 增加一倍以上至 N2。這一表現證明了我們與 CMC 合併以來團隊所做的出色工作。要充分利用 CMC 交易的利益，還有很多工作要做，但團隊正在取得良好的進展。

Advanced Purity Solutions division sales were flat in 2024 driven by difficult comparisons from the significant backlog we were working through during 2023 and mirroring the performance of the overall semi market. Strong growth in advanced logic and advanced packaging for APS was offset by weakness in mainstream and memory. However, APS ended the year strong, as expected, with sequential growth in most product areas.

2024 年，高階純度解決方案部門的銷售額持平，這是由於與我們在 2023 年處理的大量積壓訂單相比存在困難，並且反映了整個半導體市場的表現。APS 先進邏輯和先進封裝的強勁成長被主流和記憶體的疲軟所抵消。然而，APS 正如預期那樣，以強勁的勢頭結束了這一年度，大多數產品領域都實現了連續成長。

Moving back to our consolidated results. From a profitability point of view, both our gross margin and EBITDA margin were up in 2024, excluding divestitures. Our EBITDA margin expanded more than 100 basis points year-on-year to reach 28.7%, slightly above our target commitment.

回到我們的綜合業績。從獲利能力的角度來看，不包括資產剝離，我們的毛利率和 EBITDA 利潤率在 2024 年均有所上升。我們的 EBITDA 利潤率年增超過 100 個基點，達到 28.7%，略高於我們的目標承諾。

We were able to improve our bottom line leverage while increasing our R&D investments by 14% in 2024. These investments are critical to winning new POR positions, such as moly deposition, moly etch in next-generation 3D NAND, and partofus photoresist filters in advanced logic. These new POR wins drive the increase of Entegris content per wafer and ultimately fuel our top line market outperformance.

我們能夠提高我們的底線槓桿，同時在 2024 年將我們的研發投資增加 14%。這些投資對於贏得新的 POR 地位至關重要，例如鉬沉積、下一代 3D NAND 中的鉬蝕刻，以及先進邏輯中的 partofus 光阻過濾器。這些新的 POR 勝利推動了每片晶圓中 Entegris 含量的增加，並最終推動了我們的頂線市場表現優異。

There are a few additional items I would like to highlight. Last year, we paid down almost $625 million of debt, a portion of that coming from the proceeds of the divestiture of the Pipeline and Industrial Materials business in early March 2024. Debt reduction will continue to be a focus area for us in 2025, and Linda will expand on that shortly.

我還想強調幾點。去年，我們償還了近 6.25 億美元的債務，其中一部分來自 2024 年 3 月初剝離管道和工業材料業務的收益。2025 年，減債將繼續成為我們關注的領域，Linda 很快就會對此進行詳細說明。

Our new facility in Kaohsiung, Taiwan continues to make progress. We have completed qualifications for products, including drums, tubing, deposition materials, and some liquid filters. We expect to complete most of the remaining critical product qualifications by the end of this year.

我們位於台灣高雄的新工廠不斷取得進展。我們已經完成了包括桶、管、沉積材料和一些液體過濾器在內的產品的資格認證。我們預計今年底前完成大部分剩餘關鍵產品的認證。

We are also progressing rapidly at our new Colorado site. Related to that, in December, we finalized an agreement with the US Department of Commerce that provides us up to $77 million in funding under the CHIPS and Science Act. Tools have started to go into the facility, and we expect to initiate customer qualifications in the second half of this year.

我們在科羅拉多州的新工廠也正在快速發展。與此相關，12 月，我們與美國商務部達成協議，根據《晶片與科學法案》，該協議為我們提供高達 7,700 萬美元的資金。工具已經開始進入工廠，我們預計將在今年下半年啟動客戶資格認證。

Moving on to 2025. As we enter the year, we have yet to see evidence of a significant semi market rebound. And our customers' visibility outside of advanced logic and AI-driven applications continues to be limited. In that context, for the full year 2025, we expect the market, based on our unit and CapEx mix, will be up between 1% and 3%. We believe that this is a prudent view of the industry at this point in the year until we see concrete evidence of a sustained market recovery across major end markets.

邁向 2025 年。進入今年，我們尚未看到半導體市場明顯反彈的證據。而且，我們的客戶在高級邏輯和人工智慧驅動的應用之外的可見性仍然受到限制。在此背景下，我們預計，根據我們的單位和資本支出組合，到 2025 年全年，市場將上漲 1% 至 3%。我們認為，這是今年目前對該行業的審慎看法，直到我們看到主要終端市場持續復甦的具體證據。

On top of this industry growth, we expect to outperform the market by 4 to 5 points in 2025. This outperformance will be largely driven by additional content opportunities in new logic and memory nodes. This outperformance also includes the negative impact of the latest restrictions on sales to China, which we estimate to be an annual incremental loss of revenue of $30 million to $40 million in 2025.

除了產業成長之外，我們預計 2025 年的表現將比市場高出 4 到 5 個百分點。這種優異的表現主要得益於新邏輯和記憶體節點中的額外內容機會。這一優異表現還包括最新對華銷售限制的負面影響，我們估計，到 2025 年，這將導致每年的收入損失增加 3,000 萬至 4,000 萬美元。

Putting it all together, we expect our sale 2025 will be approximately $3.4 billion at the midpoint of our guidance range, up approximately 6.5% on a pro forma basis. We expect EBITDA will be slightly above our target model or just over 29% of revenue, and we expect non-GAAP EPS to be at or above $3.25.

綜合考慮所有因素，我們預計 2025 年的銷售額將達到約 34 億美元，處於指導範圍的中點，預計將成長約 6.5%。我們預計 EBITDA 將略高於我們的目標模式或略高於收入的 29%，我們預計非 GAAP EPS 將達到或超過 3.25 美元。

Let me now turn the call over to Linda. Linda?

現在讓我把電話轉給琳達。琳達？

Good morning and thank you, Bertrand. Our sales in the fourth quarter of $850 million were up approximately 11% year-over-year, excluding the impact of divestitures. On a reported basis, our sales were up approximately 5% year-over-year and sequentially. Foreign exchange negatively impacted revenue by $4 million year-over-year and negatively impacted revenue by $2 million sequentially in Q4.

早安，謝謝你，伯特蘭。除去資產剝離的影響，我們第四季的銷售額為 8.5 億美元，年增約 11%。據報道，我們的銷售額年增約 5%。外匯對第四季度的收入產生了 400 萬美元的同比負面影響，對第四季度的收入產生了 200 萬美元的環比負面影響。

On a full year basis, FX negatively impacted revenue by $23 million, reducing our 2024 sales growth by almost 1 point. Gross margin on a GAAP and non-GAAP basis was 45.6% in the fourth quarter, within our guidance range. Operating expenses on a GAAP basis were $237 million in Q4. Operating expenses on a non-GAAP basis in Q4 were $188 million, in line with our guidance. Adjusted EBITDA in Q4 was 29.2% of revenue, also in line with our guidance.

從全年來看，外匯對收入產生了 2,300 萬美元的負面影響，導致我們 2024 年的銷售成長降低了近 1 個百分點。第四季根據 GAAP 和非 GAAP 計算的毛利率為 45.6%，在我們的預期範圍內。根據 GAAP 計算，第四季的營業費用為 2.37 億美元。第四季非 GAAP 基礎的營業費用為 1.88 億美元，符合我們的預期。第四季調整後的 EBITDA 佔營收的 29.2%，也符合我們的預期。

The GAAP tax rate in Q4 was approximately 9% and the non-GAAP tax rate was 12%. The lower-than-expected tax rate was driven by favorable income mix. GAAP diluted EPS was $0.67 per share in the fourth quarter. Non-GAAP EPS was $0.84 per share, above our guidance range.

第四季的 GAAP 稅率約為 9%，非 GAAP 稅率為 12%。低於預期的稅率是由有利的收入組合推動的。第四季 GAAP 稀釋每股收益為 0.67 美元。非公認會計準則每股收益為 0.84 美元，高於我們的指導範圍。

Sales for our Materials Solutions division in Q4 were $361 million, up 14% year-on-year, excluding the impact of divestitures. Sales were up 4% sequentially. The largest contributors to the sales increase both year-on-year and sequentially were CMP consumables, advanced deposition materials, and etching chemistries. Adjusted operating margin for MS was 21.7% for the quarter. The 100 basis point sequential margin increase was driven by operating expense leverage.

第四季度，材料解決方案部門的銷售額為 3.61 億美元，不包括資產剝離的影響，較去年同期成長 14%。銷售額比上一季成長了 4%。與去年同期和上一季相比，銷售成長的最大貢獻者是 CMP 耗材、先進沉積材料和蝕刻化學品。本季微軟調整後的營業利益率為 21.7%。利潤率連續 100 個基點的成長是由營業費用槓桿推動的。

Sales for the new Advanced Purity Solutions division in Q4 were $491 million, up 9% year-on-year and up 6% sequentially. From a product perspective, the year-on-year sales increase was driven by fluid handling, wafer handling, and gas purification. The sequential sales increase was driven by growth in liquid and gas filters and dispense pumps used in advanced packaging applications. Adjusted operating margin for APS was 27.9% for the quarter. The modest sequential increase in margin was primarily driven by volume leverage.

新的高階純度解決方案部門第四季的銷售額為 4.91 億美元，年增 9%，季增 6%。從產品角度來看，銷售額年增主要是由於流體處理、晶圓處理和氣體淨化等產品推動。銷售額的連續成長主要得益於先進封裝應用中使用的液體和氣體過濾器以及分配泵浦的成長。APS 本季調整後營業利益率為 27.9%。利潤率環比小幅成長主要得益於銷售槓桿。

Moving on to cash flow. CapEx for the year was $316 million, in line with our expectations and was approximately 10% of sales. We expect to spend approximately $325 million in total CapEx in 2025, in line with our ongoing target of approximately 10% of sales.

繼續討論現金流。全年資本支出為 3.16 億美元，符合我們的預期，約佔銷售額的 10%。我們預計 2025 年的總資本支出約為 3.25 億美元，與我們目前約佔銷售額 10% 的目標一致。

Full year free cash flow was also $316 million, and free cash flow margin was almost 10% in 2024. This is a significant improvement relative to the last few years, which were negatively impacted by the industry downturn and higher CapEx spending from our KSP and Colorado investments.

全年自由現金流也為 3.16 億美元，2024 年自由現金流利潤率接近 10%。與過去幾年相比，這是一個顯著的改善，過去幾年受到行業低迷以及 KSP 和科羅拉多州投資資本支出增加的負面影響。

We are committed to improving our free cash flow margin. We have actually made free cash flow a compensable goal for the management team and the rest of the organization starting this year. We expect our free cash flow margin to return to the mid- to high-teens percent in the next few years, similar to our prepandemic levels. This will be driven by EBITDA leverage in line with our target model and working capital optimization.

我們致力於提高我們的自由現金流利潤率。實際上，從今年開始，我們已將自由現金流作為管理團隊和組織其他成員的可補償目標。我們預計，未來幾年我們的自由現金流利潤率將恢復到百分之十幾到十幾的水平，與疫情前的水平相似。這將由符合我們的目標模式和營運資本優化的 EBITDA 槓桿推動。

Looking at our capital structure. During the fourth quarter, we paid down $150 million of the term loan from cash on hand, which means to date, we have paid down $2 billion of our total debt since the close of the CMC acquisition in July 2022.

看看我們的資本結構。在第四季度，我們用庫存現金償還了 1.5 億美元的定期貸款，這意味著自 2022 年 7 月 CMC 收購結束以來，我們迄今已償還了 20 億美元的總債務。

At the end of the year, our gross debt was approximately $4 billion and our net debt was approximately $3.7 billion. Gross leverage was 4.3 times and net leverage was 4 times. The blended interest rate on our debt portfolio is approximately 4.9%. And since the term loan is fully hedged, currently, 100% of our debt is fixed.

截至年底，我們的總債務約為 40 億美元，淨債務約為 37 億美元。總槓桿率為4.3倍，淨槓桿率為4倍。我們的債務組合的混合利率約為4.9%。由於定期貸款已完全對沖，目前，我們的債務 100％ 是固定的。

We will continue to use our free cash flow to pay down debt, and we remain committed to reducing our leverage. Based on the timing of our cash flows, including CapEx, our debt repayment will be weighted to the second half of 2025. We expect to meet our gross leverage commitment of below 4 times before the end of the year.

我們將繼續利用我們的自由現金流來償還債務，並且我們仍然致力於降低我們的槓桿率。根據我們的現金流量（包括資本支出）的時間安排，我們的債務償還將集中在 2025 年下半年。我們預計在年底前實現低於4倍的總槓桿承諾。

Moving on to our Q1 outlook. We expect sales to range from $775 million to $805 million. This equates to year-on-year revenue growth of approximately 7% to the midpoint, excluding divestitures; gross margin of 45.5% to 46.5%, both on a GAAP and non-GAAP basis; GAAP operating expenses of $236 million to $240 million; and non-GAAP operating expenses of $188 million to $192 million, up slightly at the midpoint compared to Q4 2024.

繼續討論我們的第一季展望。我們預計銷售額在 7.75 億美元至 8.05 億美元之間。相當於不包括資產剝離在內的收入年增約 7%；毛利率為 45.5% 至 46.5%，不論是依照 GAAP 或非 GAAP 計算；根據美國通用會計準則 (GAAP)，營業費用為 2.36 億美元至 2.4 億美元；非 GAAP 營業費用為 1.88 億美元至 1.92 億美元，與 2024 年第四季相比中位數略有上升。

We expect the EBITDA margin to range from 28% to 29%; net interest expense of approximately $50 million; non-GAAP tax rate of approximately 15%; GAAP EPS to be $0.38 to $0.45 per share; and non-GAAP EPS to be $0.64 to $0.71 per share. We also expect depreciation to be approximately $53 million in Q1.

我們預期 EBITDA 利潤率在 28% 至 29% 之間；淨利息支出約5000萬美元；非公認會計準則稅率約為 15%； GAAP EPS 為每股 0.38 美元至 0.45 美元；非 GAAP 每股收益為 0.64 美元至 0.71 美元。我們也預計第一季折舊額約為 5,300 萬美元。

And in addition to the annual outlook Bertrand shared, I'd like to provide a few additional modeling items for the full year 2025. We expect net interest expense will be approximately $200 million for the full year, down modestly compared to 2024. And we also expect the non-GAAP tax rate to be approximately 15% for 2025.

除了伯特蘭分享的年度展望之外，我還想為 2025 年全年提供一些額外的建模項目。我們預計全年淨利息支出約為 2 億美元，與 2024 年相比略有下降。我們也預期 2025 年非 GAAP 稅率約為 15%。

I'll now hand it back over to Bertrand for some closing remarks.

現在我將把發言權交還給伯特蘭，請他作一些結束語。

Thank you, Linda. In closing, in this dynamic industry environment, I am very proud of our team's resilience, steady execution, and the strong quarter we ended the year on. As we enter 2025, I believe we have taken an appropriately prudent view of the industry given the continued lack of visibility outside of advanced logic and AI applications.

謝謝你，琳達。最後，在這個充滿活力的行業環境中，我為我們團隊的韌性、穩健的執行力以及我們在今年年底的強勁表現感到非常自豪。當我們進入 2025 年時，我相信，鑑於高級邏輯和人工智慧應用之外的可見性仍然缺乏，我們對該行業採取了適當的審慎看法。

We remain focused on delivering strong market outperformance and profitability, improving free cash flow, and paying down our debt while funding critical investments that improve our long-term competitiveness and position us for the upturn.

我們將繼續專注於實現強勁的市場表現和盈利能力、改善自由現金流、償還債務，同時為關鍵投資提供資金，以提高我們的長期競爭力，為經濟復甦做好準備。

Looking further out, we continue to have high hopes in the strong long-term growth outlook of the semiconductor industry. In addition, the industry's technology road maps continue to be opportunity-rich for Entegris that our customers drive for more complex device architectures and further miniaturization.

放眼未來，我們仍然對半導體產業強勁的長期成長前景抱有很高的希望。此外，該行業的技術路線圖繼續為 Entegris 帶來豐富的機遇，我們的客戶推動更複雜的設備架構和進一步的小型化。

The resulting process complexity is making our expertise in material science and materials purity increasingly valuable. And the R&D investments we are making are positioning us very well for the upcoming technology node transition, all of which are expected to generate incremental content per wafer opportunities and fuel our market outperformance in the years to come.

由此產生的工藝複雜性使我們在材料科學和材料純度方面的專業知識變得越來越有價值。我們正在進行的研發投資為我們即將到來的技術節點轉型做好了充分準備，所有這些都有望產生每個晶圓的增量內容機會，並推動我們在未來幾年實現市場優異表現。

Before we open the line for questions, I would like to announce that Bill Seymour, our VP of IR and Communications, recently announced his decision to leave Entegris to pursue a new opportunity at the end of Q1. I would like to take a moment to recognize Bill for the quality of his work and his invaluable advice over the past six years. Linda and I will miss him greatly.

在我們開始提問之前，我想宣布，我們的投資者關係和通訊副總裁比爾·西摩 (Bill Seymour) 最近宣布，他決定在第一季末離開 Entegris，尋求新的機會。我想花點時間來表揚比爾，感謝他過去六年來的出色工作和提供的寶貴建議。琳達和我都會非常想念他。

With that, operator, let's open the line for questions.

接線員，現在讓我們開始回答問題。

(Operator Instructions)

（操作員指令）

Toshiya Hari, Goldman Sachs.

高盛的 Toshiya Hari。

Hi, good morning. Thank you, Bill, for all the help over the past several years. My first question is on the market outlook and your outperformance, Bertrand, so the market growing 1% to 3%. I was hoping you could delineate between the wafer start side of the house and the CapEx side of the house, what you're thinking. And if you can sort of provide a little bit of color by application, that would be really helpful. And then the outperformance of 4 to 5 percentage points in the past, I think you've talked extensively about M2 and molybdenum. I'm curious what the key drivers are for you guys in '25.

嗨，早安。謝謝比爾（Bill）過去幾年來給我的所有幫助。我的第一個問題是關於市場前景和您的優異表現，伯特蘭，所以市場成長 1% 到 3%。我希望您能區分出晶圓啟動部分和資本支出部分，您是怎麼想的。如果您可以透過應用程式提供一點顏色，那將會非常有幫助。然後是過去 4 到 5 個百分點的優異表現，我想您已經廣泛討論了 M2 和鉬。我很好奇你們在 25 年的主要動力是什麼。

Sure. So when it comes to the market assumption for 2025, as we said in the -- in our comments, visibility continues to be fairly limited outside of advanced logic and AI-related applications. So as we start the year and without any concrete evidence of a rebound across the industry, we think it's prudent to assume wafer starts being up in the low single digit and the industry CapEx to be essentially flat, right?

當然。因此，當談到 2025 年的市場假設時，正如我們在評論中所說，除了高級邏輯和 AI 相關應用之外，可見性仍然相當有限。因此，在新年伊始，如果還沒有任何確鑿證據表明整個行業出現反彈，我們認為明智的做法是假設晶圓開工率將以個位數低位上升，而行業資本支出將基本持平，對嗎？

So if I want to double-click on those two components, wafer start, low single digit. We expect, obviously, very strong wafer starts in advanced logic and everything that is AI-related. But as of right now, as I mentioned, I think there is very limited visibility in mainstream and traditional memory. So that's what's behind the wafer start assumption.

所以如果我想雙擊這兩個組件，晶圓啟動，低個位數。顯然，我們預期先進邏輯和所有與人工智慧相關的晶圓將有非常強勁的起步。但就目前而言，正如我所提到的，我認為在主流和傳統記憶中的可見性非常有限。這就是晶圓啟動假設背後的原因。

When it comes to CapEx, probably no surprise to you. We expect elevated WFE in advanced foundry and advanced packaging. We expect increased spend in NAND ahead of some expected technology transitions. But that's going to be offset by slow WFE pretty much everywhere else and then slower new fab construction projects in 2025.

當談到資本支出時，您可能並不感到驚訝。我們預計先進代工和先進封裝領域的 WFE 將會提升。我們預計在某些預期的技術轉變之前，NAND 方面的支出將會增加。但這一增長將被其他地方的 WFE 放緩以及 2025 年新晶圓廠建設項目放緩所抵消。

So when it comes to the outperformance, as you know well, Toshiya, the performance -- the outperformance of Entegris is really driven by how many nodes are taking place in any given year, and of course, the more, the better. And the other big driver is the timing of those node transitions. So in other words, when those nodes are already put in high-volume manufacturing. And for us, the sooner, the better, right?

因此，當涉及優異表現時，正如您所知，Toshiya，Entegris 的優異表現實際上是由每年發生的節點數量決定的，當然，越多越好。另一個重要驅動因素是節點轉換的時間。換句話說，這些節點已經投入大量生產。對我們來說，越早越好，對嗎？

So when you look at 2025, the good news is that we expect a lot of important node transitions. In logic, we're going to be obviously watching carefully N2, 18A. And then in 3D NAND, we expect to see the adoption of moly as a replacement to tungsten in 300-plus-layer devices. Now so that's -- those are the important node transitions that we will be watching.

因此，展望2025年，好消息是我們預期會出現許多重要的節點轉變。從邏輯上講，我們顯然會密切關注 N2、18A。然後在 3D NAND 中，我們預計將看到在 300 層以上的設備中採用鉬來取代鎢。這就是我們將要關注的重要節點轉換。

And then if you think about that from a timing point of view, all of those transitions are really expected in the second half of the year. So it's good, but not as good as if they were happening in the first half this year, obviously. In other words, we're not getting the full benefit of those transitions in 2025.

如果你從時間的角度來考慮，所有這些轉變預計都會在今年下半年發生。所以這是好事，但顯然不如今年上半年好。換句話說，我們無法在 2025 年充分享受這些轉變所帶來的好處。

The other final point maybe on the outperformance is, as I mentioned in my comments, remember that 1 point of top line growth is expected to be taken away by the recent China restriction. So that's the context for the overall top line outperformance in 2025 of 4 to 5 points. And just to be clear, our long-term outperforming goal remains [3 to 6], as we have mentioned many times before.

關於優異表現的另一個最後一點可能是，正如我在評論中提到的那樣，請記住，最近的中國限制預計將帶走 1 個百分點的營收成長。這就是 2025 年整體營收表現超出預期 4 到 5 個百分點的背景。需要明確的是，我們的長期超越目標仍然是 [3 到 6]，正如我們之前多次提到的。

Great, that's really clear and really helpful. And my follow-up, maybe one for Linda. Interesting comments around working capital optimization and sort of your aspirational goal to improve free cash flow margins to sort of the mid- to high teens. I was hoping you could sort of expand on what the key initiatives are internally. You gave guidance for CapEx for calendar '25, but how we should be thinking about CapEx perhaps in '26 and beyond. And again, is it primarily inventory when you speak to capital improvements? Or is there something else going on? Thank you.

太好了，非常清楚，非常有幫助。我的後續問題可能是針對琳達 (Linda) 的。關於營運資本優化和將自由現金流利潤率提高到中高水準的目標，有有趣的評論。我希望您能詳細說明一下內部的主要舉措。您給出了 25 年資本支出的指導，但我們應該如何考慮 26 年及以後的資本支出。再說了，當您談到資本改善時，主要是指庫存嗎？或者還有其他事情發生？謝謝。

Absolutely. Thanks for that question, Toshiya. Very excited, and free cash flow is going to be a very high priority, as I discussed during the call. And as I mentioned, it will be a compensable goal for the team. We really made a lot of progress in 2024 with the 10% outcome for free cash flow margin. And think about it, it's a very significant improvement over 2023 being about 5% and 2022 being negative.

絕對地。謝謝你的提問，Toshiya。非常興奮，正如我在通話中所討論的那樣，自由現金流將成為非常優先的事項。正如我所提到的，這對球隊來說是一個可補償的進球。我們確實在 2024 年取得了很大進展，自由現金流利潤率達到了 10%。想想看，這比 2023 年的 5% 和 2022 年的負成長有了非常顯著的改善。

So to address your point, CapEx, we still, over time, think of it as about 10%. So that would be somewhat stable. Therefore, the drivers are going to be that EBITDA leverage as we get that growth and the market recovers, and then working cap. So clearly, inventory can have the biggest impact. The team did a good job again this year with some improvement in our days on hand, and we're going to continue to drive that. We also made some improvement on the other metrics like payables.

因此，為了解決您的問題，資本支出，我們仍然認為，隨著時間的推移，它約為 10%。這樣的話就會比較穩定。因此，隨著我們實現成長和市場復甦，驅動因素將是 EBITDA 槓桿，然後是營運上限。顯然，庫存會產生最大的影響。今年，團隊再次表現出色，在現有基礎上取得了一些進步，我們將繼續努力。我們也對應付款等其他指標做出了一些改進。

So overall, we're going to just keep optimizing our working cap overall and continue to drive more cash flow from the working cap. And as we said, we expect this to return to the mid- to high teens, which is our prepandemic levels over the next several years.

因此總的來說，我們將繼續優化我們的整體營運能力，並繼續從營運能力中獲得更多現金流。正如我們所說的，我們預計這一數字將在未來幾年內恢復到中高水平，即大流行前的水平。

Thank you.

謝謝。

Melissa Weathers, Deutsche Bank.

德意志銀行的梅莉莎‧韋瑟斯。

Hi there, thank you for letting me ask a question. So, Bill, best of luck on your new endeavors. I guess, for my first question, can we dig a little bit deeper into the March quarter guidance? You now only have two segments, but are there any moving pieces that we should be contemplating? It seems like it's a little bit below what you've seen historically in that quarter. So any moving pieces within the segments for March would be helpful.

您好，感謝您讓我提問。所以，比爾，祝你在新的事業中好運。我想，對於我的第一個問題，我們能否更深入地了解三月季度的指引？您現在只有兩個片段，但是是否有任何我們應該考慮的移動部分？它似乎比該季度的歷史記錄略低一些。因此，三月片段中的任何移動部分都會有所幫助。

So I can certainly start and describe a little bit about the drivers behind the top line. I think we think -- we view our guidance at the midpoint to be pretty much in line with normal seasonal market decline. I mean we expect sequential decline in wafer starts, frankly, across all customer segments in Q1. And we also expect a fairly slow start to CapEx in the first quarter of the year. And we expect that to, frankly, impact most of our product lines and our two divisions.

因此，我可以先稍微描述一下營收背後的驅動因素。我認為我們認為我們的中間指引與正常的季節性市場下滑基本一致。坦白說，我們預計第一季所有客戶領域的晶圓開工量都會季減。我們也預計今年第一季的資本支出開局將會相當緩慢。坦白說，我們預計這將影響我們的大部分產品線和兩個部門。

So I think we think that our guidance is pretty much in line with normal seasonality. And if you look at it against Q1 of last year, it's actually up 7%. So it's in line with the overall growth target that we have for the year.

因此，我認為我們的指導與正常季節性基本一致。如果與去年第一季相比，它實際上增長了 7%。因此，這符合我們今年的整體成長目標。

Got it. Thanks for that. And then I wanted to call out one thing that you mentioned in your slides and in your prepared remarks, some momentum in the advanced packaging side of things. You haven't spent too much time focusing on this part of the business, and I know it's a strong grower for the industry right now. So could you give us a little bit of color on how you're supporting that industry, what trends you're seeing and maybe how much it could grow this year?

知道了。謝謝。然後我想指出您在幻燈片和準備好的演講中提到的一件事，即先進封裝方面的一些發展勢頭。您沒有花太多時間關注這部分業務，但我知道這是目前產業成長強勁的領域。那麼您能否向我們稍微介紹一下您是如何支持該行業的，您看到了哪些趨勢，以及今年該行業可能增長多少？

Well, thanks for asking that follow-on question, Melissa. I was hoping that somebody would. And certainly, as we've been mentioning over the last two years, advanced packaging has been historically a very, very small part of our portfolio. But as we have said, we've been working very closely now for two years with customers to better understand their technology road maps and to develop solutions for the emerging process challenges that they are facing.

好吧，謝謝你提出這個後續問題，梅麗莎。我希望有人能這麼做。當然，正如我們過去兩年一直提到的那樣，先進封裝從歷史上看只是我們產品組合中非常非常小的一部分。但正如我們所說，兩年來我們一直與客戶密切合作，以便更好地了解他們的技術路線圖，並為他們面臨的新興流程挑戰開發解決方案。

I mean they're all trying to drive additional automation, greater process precision in advanced packaging, and we have solutions to help them do that. So today, in 2024, advanced packaging-related revenues are approaching about $100 million. So it's not so small anymore. And by the way, we expect that part of our business to grow significantly in 2025 as more investments continue to pour into advanced packaging capacity.

我的意思是，他們都在嘗試推動先進封裝的進一步自動化和更高的製程精度，而我們有解決方案可以幫助他們做到這一點。所以今天，也就是2024年，先進封裝相關的收入將接近1億美元。所以它不再那麼小了。順便說一句，隨著更多投資繼續湧入先進封裝產能，我們預計這部分業務將在 2025 年大幅成長。

So today, from a product standpoint, most of the opportunities are within Advanced Purity Solutions, so think about carriers for thin and thick wafers. And the other side of the opportunity would be around fluid management solutions, in particular, high-viscosity dispense parts.

因此今天，從產品的角度來看，大多數機會都在高級純度解決方案中，因此請考慮薄晶圓和厚晶圓的載體。而機會的另一個面向是流體管理解決方案，特別是高黏度分配部件。

But we still have opportunities in Material Solutions as well. And we have actually very successfully introduced some dielectric service in these processes. It's still smaller set, single digits of millions of dollars of revenue in 2025, but we expect that to grow rapidly. Actually, for that particular platform, we expect that to grow by a factor of 3x in 2025. So as we've said many times before, I mean, it's been historically a small part of our business. We've been focusing on it. We are uncovering a lot of new opportunities, and it looks very, very promising going forward.

但我們在材料解決方案方面仍然有機會。而且我們實際上已經非常成功地在這些過程中引入了一些介電服務。它仍然是一個較小的集合，到 2025 年的收入將只有數百萬美元，但我們預計它將快速成長。實際上，對於該特定平台，我們預計到 2025 年其規模將成長 3 倍。正如我們之前多次說過的，從歷史上看，這只是我們業務的一小部分。我們一直關注此事。我們正在發現許多新的機遇，未來的前景非常光明。

Thank you.

謝謝。

Thank you.

謝謝。

Bhavesh Lodaya, BMO Capital Markets.

Bhavesh Lodaya，BMO資本市場。

Hi, good morning, Bertrand. Let me also extend thanks to Bill and best wishes moving forward. Bertrand, you mentioned some very strong numbers for CMP pads and slurries for 2024. Could you add some more detail around what factors drove that? Was it [China-related] new fabs, some other drivers? And then do you see this as a leading indicator for some of your other platforms for this year?

你好，早安，伯特蘭。我也要向比爾表示感謝，並祝福他未來一切順利。伯特蘭，您提到了 2024 年 CMP 墊和漿料的一些非常強勁的數據。能否詳細說明一下造成這現象的因素？是（與中國相關的）新晶圓廠還是其他一些驅動因素？那麼您是否認為這是今年其他一些平台的領先指標？

Yes. So I think, again, I mean, overall, very, very pleased with the way our Material Solutions platform has been performing, and in particular, very pleased with the CMP suite of product. I think it's actually a great success story and a story that really validates all of the expectations that we had when we chose to combine with CMC Materials, right?

是的。所以我認為，總的來說，我們對我們的材料解決方案平台的表現非常非常滿意，尤其是對 CMP 產品套件非常滿意。我認為這實際上是一個偉大的成功故事，它真正驗證了我們選擇與 CMC Materials 合併時的所有期望，對嗎？

If you think about the types of revenue synergies we were expecting to generate, it came down to cross-selling opportunities, engaging with the customer differently, and creating a pipeline of innovation-driven opportunities, and then more broadly, trying to really drive a solution-selling strategy across the materials platform.

如果你考慮我們期望產生的收入綜效類型，它就歸結為交叉銷售機會、以不同的方式與客戶接觸、創造創新驅動的機會管道，然後更廣泛地嘗試真正推動整個材料平台的解決方案銷售策略。

And in 2024, we started to see evidence of success. So as I mentioned, slurry and pads grew very significantly. But post-CMP cleans did as well and so did CMP filters, Actually, all of those CMP products, that suite of CMP products, grew in the high teens or higher in 2024. So again, the cross-selling strategy is absolutely working, and we expect to see more momentum going in 2025.

2024年，我們開始看到成功的證據。正如我所提到的那樣，泥漿和墊塊的增長非常顯著。但 CMP 後清洗也同樣如此，CMP 過濾器也是如此，實際上，所有這些 CMP 產品，即那套 CMP 產品，在 2024 年都實現了高成長率或更高。所以，交叉銷售策略絕對有效，我們預期 2025 年將會有更大的發展動能。

As I said, we're also engaging differently and better with our strategic customers with a great focus on innovation. We mentioned the progress in slurry content in advanced foundry. And I was just mentioning in the previous question what we have accomplished in terms of uncovering new opportunities in advanced packaging.

正如我所說，我們也以不同的、更好的方式與我們的策略客戶接觸，並且高度重視創新。我們提到了先進鑄造中漿料含量的進展。我在上一個問題中剛才提到了我們在發掘先進封裝新機會方面所取得的成就。

And then finally, when it comes to solution selling, we believe that the proof point will be on the success that we expect to see in moly deposition, moly etch, in 3D NAND applications. And at some point in time, as moly gets adopted in logic, we expect to see also the introduction of moly-polishing solutions. And that's kind of new opportunities for Entegris.

最後，當談到解決方案銷售時，我們相信證明點將在於我們期望在鉬沉積、鉬蝕刻和 3D NAND 應用中看到的成功。並且在某個時間點，隨著鉬在邏輯上被採用，我們也期望看到鉬拋光解決方案的引入。這對 Entegris 來說是一個新的機會。

So feel very good about the progress that we're making. I think it's validating the value of this combination, and I'm very pleased with the way the team has been coming together and executing in [2025 -- '24].

所以對於我們所取得的進展感到非常高興。我認為這證實了這個組合的價值，我對團隊的團結和執行方式感到非常滿意[2025--24年]

Got it. And as a follow-up, currency has moved in the wrong direction? Do you hedge some of that? And if possible, could you quantify the year-over-year impact for 2025 earnings based on where things stand? Thank you.

知道了。隨後，貨幣走勢是否也出現了錯誤？您是否對其中的一些進行了對沖？如果可能的話，您能否根據目前的情況量化 2025 年收益的年比影響？謝謝。

Bhavesh, can you repeat that question? Sorry, it was blurred.

Bhavesh，你能重複這個問題嗎？抱歉，拍得模糊了。

Yeah. Just the impact of how FX has [changed]. I mean over the past few months, it has gone in the wrong direction for some of the Asian currencies. If you're able to quantify that for this year.

是的。外匯的影響[已改變]。我的意思是，在過去幾個月裡，一些亞洲貨幣走向了錯誤的方向。如果你能量化今年的情況的話。

So the good news is as we -- the way we have our facility set up in our manufacturing, a lot of the costs are hedged location. So really, when we quantify the FX as we do, we mentioned the FX impact on a revenue line. But as you go down to gross margin, there can be a slight delay, but overall, a minimal impact on the gross margin line. So that's why you don't hear about it gross margin as much from a cost perspective.

因此，好消息是，正如我們在製造過程中設置設施的方式一樣，許多成本都是對沖位置的。因此，實際上，當我們量化外匯時，我們提到了外匯對收入線的影響。但隨著毛利率的下降，可能會出現輕微的延遲，但總體而言，對毛利率的影響很小。所以這就是為什麼從成本角度來說你聽不到太多關於毛利率的資訊。

Thank you.

謝謝。

Timothy Arcuri, UBS.

瑞銀的提摩西·阿庫裡。

Hi, Bertrand, so I would go back to what the TAM is growing this year. So I heard your assumption on CapEx. I think you said flat. I mean all the equipment companies are guiding up at least 5% WFE. So I know that you use CapEx to [knock] WFE, but it seems like, certainly, WFE is going to grow this year, likely even higher than mid-single digits.

你好，Bertrand，我想回顧一下今年 TAM 的成長情況。所以我聽到了你對資本支出的假設。我認為你說的是平的。我的意思是所有設備公司都指導 WFE 至少上漲 5%。所以我知道你使用資本支出來打擊 WFE，但看起來，WFE 今年肯定會成長，甚至可能高於中位數個位數。

So I guess, where is the assumption that CapEx is only flat coming from? Is there going to be a big mix shift? Is sort of underlying your assumptions a big mix shift from CapEx toward equipment this year? Is that what's actually happening?

所以我想問一下，資本支出持平的假設是從何而來？是否會發生大的混合轉變？您的假設是否暗示今年的支出結構將從資本來源向設備支出發生重大轉變？這是真實發生的事嗎？

Yeah. So Tim, the assumption we're using right now is the WFE will be up in the low single digits, and then construction will be essentially down in the low single digits. So that's -- the net effect of that is that assumption for CapEx.

是的。所以提姆，我們現在使用的假設是 WFE 將以個位數低位上升，然後建築業基本上會以個位數低位下降。所以這就是 — — 其淨效應就是對資本支出的假設。

As we said, there are different views of how the market could evolve this year. When we talk to all of our customers, and that includes all of the large equipment makers, I think there is really not perfect visibility in the second half of the year. And we're choosing maybe to be a little bit more prudent than some. But I think based on what we went through in 2024, we think it's a prudent way to approach the '25.

正如我們所說，對於今年市場將如何發展，存在著不同的看法。當我們與所有客戶（包括所有大型設備製造商）交談時，我認為下半年的前景確實不太樂觀。我們的選擇也許比其他人更謹慎。但我認為，根據我們在 2024 年的經歷，我們認為這是實現 25 年目標的明智之舉。

So I think -- I mean, for you, I think the key takeaway -- I mean, remember that we are breaking down our annual in two components. One is the industry component, and we understand that they have different opinions around that. And then the other component is the outperformance. The one piece we really control is the outperformance, and that's really our commitment to outpace the industry by 4 to 5 points.

所以我認為 — — 我的意思是，對你來說，我認為關鍵的一點是 — — 我的意思是，記住我們將年度分為兩個部分。一個是行業因素，我們知道他們對此有不同的看法。然後另一個因素是優異表現。我們真正控制的是超越表現，這確實是我們超越行業 4 到 5 個百分點的承諾。

I'm sure that our views of the industry will evolve as we gain more visibility and as we progress through the year. And hopefully, there will be a basis to be a little bit more constructive, a little bit more optimistic over the industry assumptions as we proceed in the year. But honestly, there is not enough visibility as of right now.

我相信，隨著我們知名度的提高和一年來的進步，我們對這個行業的看法將會改變。而且希望，隨著今年的發展，我們能夠對產業假設更有建設性、更樂觀一些。但老實說，截至目前還沒有足夠的可見性。

Yeah. I guess just the degree that you outperformed depends on what your assumption is for the underlying market. That's why I was asking. But -- so I had a question, Linda, on gross margin for December. So you came in at the high end on revenue, but gross margin was at the low end. I know that the gross margin is being guided up a little bit for March, but was there something specific that happened in December that caused that because you think the gross margin could have been a touch better?

是的。我猜，你的表現超出預期的程度取決於你對基礎市場的假設。這就是我問的原因。但是 — 琳達，我有一個關於 12 月份毛利率的問題。因此，您的收入處於高端，但毛利率卻處於低端。我知道 3 月份的毛利率被略微上調了，但是 12 月份是否發生了某些特殊情況導致了這種情況，因為您認為毛利率本來可以更高一些？

Yeah. Overall -- first, it's a good opportunity to just talk about gross margin overall, and I will answer your question around December. Just broadly speaking with our gross margin, think of that as part of our cost structure, part of our annualized cost structure and in the context of our Analyst Day target model, which delivers the 40% flow-through.

是的。總體而言 - 首先，這是一個很好的機會來談論整體毛利率，我將在 12 月左右回答您的問題。廣義上講，就我們的毛利率而言，可以將其視為我們成本結構的一部分、年度成本結構的一部分，並結合我們的分析師日目標模型，實現 40% 的流通率。

So when you think about December, it was primarily product mix. So -- but over time -- I want to take a step back and talk about the overall 2024 gross margin. We had a 2024 gross margin of 46% for the year, up 70 basis points year-over-year ex-divestitures. And we achieved that gross margin expansion while running our plants at the appropriate levels. So it was a really great performance by the team.

因此，當您想到十二月時，它主要是產品組合。所以——但隨著時間的推移——我想退一步來談談 2024 年的整體毛利率。我們 2024 年的毛利率為 46%，扣除資產剝離後較去年同期成長 70 個基點。我們在適當水準運作工廠的同時，實現了毛利率的擴大。所以這支球隊的表現確實很出色。

And to give you some color as we look into 2025, we expect gross margin to be up about 25 to 50 basis points, and there's puts and takes in that. We've talked about the puts and takes as it relates to '24, and they're similar in '25. You have volume leverage. We're going to continue to focus on productivity. And we will have some of the inefficiencies related to Taiwan and Colorado.

展望 2025 年，我們預期毛利率將上升約 25 至 50 個基點，其中有得有失。我們已經討論了與'24 相關的得失，它們在'25 中也類似。您具有數量槓桿。我們將繼續專注於生產力。而且我們也會遇到與台灣和科羅拉多州相關的一些效率低下的問題。

But again, think about the gross margins and the puts and takes as we look into '25 similar to '24, that this is all in the context of our Analyst Day target model. And we're going to make sure our cost structure works with our Analyst Day target model, which is in line with, when you look at '25, our full year guidance for '25 and the 40% EBITDA flow-through.

但是，再想想毛利率以及當我們展望25年與24年時的相似之處時，這一切都在我們的分析師日目標模型的背景下。我們將確保我們的成本結構與分析師日目標模型相適應，這與我們對 25 年的全年指引和 40% 的 EBITDA 流轉相一致。

Okay, Linda, thank you.

好的，琳達，謝謝你。

Christopher Parkinson, Wolfe Research.

克里斯多福·帕金森（Christopher Parkinson），沃爾夫研究公司。

This is Harris Fein on for Chris. I know you said $30 million to $40 million of impact from the new China restrictions. Maybe if you could just give a little bit more color on where exactly that's affecting you, that would be helpful.

以下是哈里斯費恩 (Harris Fein) 代替克里斯的報告。我知道您說過，新的中國限制措施將帶來 3,000 萬至 4,000 萬美元的影響。如果您可以更詳細地說明這究竟在哪裡影響了您，那可能會有所幫助。

Yes. So I mean, I think it's going to impact both divisions. I'm not going to specifically assign the decline to a more -- higher degree of specificity. But I think the restrictions are essentially adding 30 of our domestic customers to the entity list. And the result of that is that it's going to limit our exports of US-made products to those customers. So we are complying with the new rules as that impact of $30 million to $40 million of annual revenue loss, which is about 1 point of growth. And as I mentioned earlier, again, our outperformance target of 4 to 5 points is inclusive of the impact of the China restrictions.

是的。所以我的意思是，我認為這將影響兩個部門。我不會具體將這種下降歸因於更高程度的特殊性。但我認為這些限制實際上是將我們的 30 家國內客戶添加到實體名單中。結果是，這將限制我們向這些客戶出口美國製造的產品。因此，我們遵守新規定，因為這將造成每年 3,000 萬至 4,000 萬美元的收入損失，這大約是 1 個成長點。正如我之前提到的，我們的超出目標 4 到 5 個百分點已經包含了中國限制措施的影響。

Got it. That's helpful. And then regarding the ramp of the Taiwan facility and the early impacts of Colorado, in the past, you've quantified what sort of gross margin drag you expect just from underutilization as the asset ramp. Maybe how long do you think it will take to get to what you would consider a normal operating rate in Taiwan? And any early thoughts about the impact on Colorado for 2025 gross margin would be helpful.

知道了。這很有幫助。然後關於台灣工廠的擴張和科羅拉多州的早期影響，過去，您已經量化了由於資產擴張而導致的利用不足所預期的毛利率拖累。您認為台灣需要多長時間才能達到正常的營運率？任何關於 2025 年科羅拉多州毛利率影響的早期思考都會有所幫助。

Yes. Thanks for the question. Again, I would think about gross margin for 2025 in the context of our overall guidance and the target model. As I mentioned earlier, there'll be puts and takes, but we did include any inefficiencies relative to ramping Colorado and KSP in our guidance.

是的。謝謝你的提問。再次，我會根據我們的整體指導和目標模型來考慮 2025 年的毛利率。正如我之前提到的，會有得有失，但我們確實將與擴大科羅拉多和 KSP 相關的任何低效率納入了我們的指導範圍。

Even with these headwinds, we do expect that gross margin in '25 to expand a bit 20 to 50 basis points. But as we look forward with KSP and Colorado and the ramp inefficiencies, we do expect this to be mostly behind us by the second half of '26. But again, circle back to the target model and think of the inefficiencies as encompassed in that target model and our guidance.

即使面臨這些不利因素，我們預計25年的毛利率將擴大20至50個基點。但是，當我們展望 KSP 和科羅拉多以及坡道效率低下的問題時，我們確實預計到 26 年下半年這些問題將基本解決。但是，再次回到目標模型，並思考該目標模型和我們的指導中所包含的低效率。

Atif Malik, Citi.

花旗銀行的阿蒂夫馬利克 (Atif Malik) 說：

Thank you for taking my questions, and Bill, you will definitely be missed. I have two questions. Bertrand, on the last earnings call, you guys had talked about some supply constraints that impacted your September and December quarter. Are those supply constraints completely behind you? Or there some lingering effect on the March quarter?

感謝您回答我的問題，比爾，我們一定會想念您的。我有兩個問題。伯特蘭，在上次財報電話會議上，你們談到了一些影響 9 月和 12 月季度的供應限制。這些供應限制已經完全成為過去了嗎？或者這對三月季度還會產生一些持續影響嗎？

Thanks for following up on that. Much appreciated. So good news, the supplier issues we discussed last quarter are essentially behind us. So on the contaminated batch of HCL impacting the liquid filtration products, this was resolved in Q4 as we expected. And then on the valve constraints impacting the gas purification platform, this is improving and expected to be resolved in Q1 as planned.

感謝您對此的關注。非常感謝。好消息是，我們上個季度討論的供應商問題基本上已經過去了。因此，對於影響液體過濾產品的受污染 HCL 批次的問題，正如我們預期的那樣，在第四季度得到了解決。至於影響氣體淨化平台的閥門限制問題，目前正在改善，預計將在第一季解決。

Most importantly, we continually look to reduce our supply chain risk and minimize single-source suppliers and also work very hard to have our suppliers close to our manufacturing facilities where possible. And the team has made great progress on this over the last two years, and we'll continue to work to optimize our supply chain.

最重要的是，我們不斷尋求降低供應鏈風險，盡量減少單一來源供應商，並盡可能努力讓我們的供應商靠近我們的製造工廠。團隊在過去兩年在這方面取得了巨大進展，我們將繼續努力優化我們的供應鏈。

Thanks, Linda, And then a follow-up for you on tariffs. I know you guys are mostly US manufacturing. But should there be any impact from the tariff situation, particularly in China, from any of your supply chain sources?

謝謝，琳達，接下來是關於關稅的後續問題。我知道你們主要是美國製造業。但是，關稅狀況（特別是在中國）會對您的任何供應鏈來源產生影響嗎？

So we're closely monitoring any impact on tariffs from the America First Trade Policy directives across Canada, Mexico, China. We've completed our assessment on the newly announced tariffs, and they'll be immaterial impact to our raw material costs.

因此，我們正在密切關注美國優先貿易政策指令對加拿大、墨西哥和中國的關稅產生的影響。我們已經完成對新宣布的關稅的評估，它們對我們的原材料成本的影響微乎其微。

Over the last several years, as I just mentioned, we've been bolstering that resiliency in the supply chain and establishing local supply chains to better serve our regional customers, and -- which this strategy is helping us mitigate some of the impact of the tariffs. But we'll continue to evaluate the impact as new information comes out and evaluate that impact on our business.

正如我剛才提到的，在過去幾年中，我們一直在增強供應鏈的彈性並建立本地供應鏈，以更好地服務於我們的區域客戶，而這項策略正在幫助我們減輕關稅的一些影響。但隨著新資訊的出現，我們將繼續評估其影響，並評估其對我們業務的影響。

Thank you.

謝謝。

Charles Shi, Needham.

查爾斯·施（Charles Shi），尼德漢姆。

Hi, good morning. I have a question, a little bit higher level, on the wafer starts side. So 2024 looks like the MSI, that's something reported by the third parties, are going to be a down year. But you just -- you did expect MSI wafer starts to be up for you. But this year, the third party seems to be forecasting pretty much close to 10% MSI growth. But Bertrand, you are seeing a little bit lower wafer starts growth.

嗨，早安。我有一個稍微高一點的問題，關於晶圓啟動方面。因此，根據第三方的報告，2024 年看起來 MSI 將會是下滑的一年。但您只是——您確實預計 MSI 晶圓將為您開始生產。但今年，第三方似乎預測 MSI 成長率將接近 10%。但 Bertrand，你看到晶圓起步成長略有下降。

Mind if you walk us through where the disconnect between what you see and what the third-party reports come strong and I suppose really think about '26 and beyond -- I mean the first thing that people are going to look at is the third-party forecast for MSI going forward.

請您告訴我們，您所看到的和第三方報告之間的差距在哪裡，我想真正思考一下 26 年及以後——我的意思是人們首先要看的是第三方對 MSI 未來的預測。

Sure. I think we had the beginning of that discussion in a previous call, but what third-party reports track are really the shipments of bare wafers from the wafer growers to the fabs. And that's what that MSI index tracks. And typically, there is a pretty good correlation between wafer starts and MSI, except when you have very high levels of wafer inventories sitting in the fab. It was the case in '24, and that's why MSI was is essentially reported as being down. There was -- and you can track that with -- or you can correlate that with the reports from the wafer growers.

當然。我認為我們在之前的電話會議中已經開始了這一討論，但第三方報告追蹤的實際上是從晶圓生產者到晶圓廠的裸晶圓出貨量。這就是 MSI 指數所追蹤的內容。通常情況下，晶圓開工與 MSI 之間有良好的相關性，除非晶圓廠中的晶圓庫存量非常高。這是 24 年的情況，這也是為什麼 MSI 基本上被報告為處於下滑狀態。有——你可以追蹤這一點——或者你可以將其與晶圓種植者的報告進行關聯。

But the flip side of that is that you're going to -- we expect to see the reverse of that play out in 2025 as those inventories have been consumed and safety stocks get rebuilt, we expect shipments of bare wafers to exceed the actual wafer start activity in the fabs.

但另一方面，我們預計 2025 年會出現相反的情況，因為這些庫存已經被消耗，安全庫存得到重建，我們預計裸晶圓的出貨量將超過晶圓廠的實際晶圓開工活動。

So to put that in context, as I said, I think our wafer start number for 2024 is low single digit, 1% to 2%, essentially for '24 compared to an MSI number that is negative mid- to high single digits. And we expect to see the flip side of that in 2025 with MSI number, to your point, probably in the high single digit, maybe even in the low teens. The actual wafer start is expected to be a little bit less than that.

所以，正如我所說，我認為我們 2024 年的晶圓開工數量是低個位數，基本上是 1% 到 2%，而 MSI 的數字是負中到高個位數。我們預計 2025 年 MSI 數值將出現相反的情況，正如您所說，可能處於高個位數，甚至可能處於低十位數。預計實際晶圓產量會比這個略少。

Thanks. The other question, right, the annual guidance you provided plus the Q1 guidance seems to imply '25 is going to be another second half-weighted year for you and -- because last year it was second half-weighted. I would say, probably [48 to 52] split between first half and second half in '24. Based on the current visibility, do you expect something similar in that range or less second half-weighted or more second half-weighted? And what will be the reasons?

謝謝。另一個問題，對吧，您提供的年度指導加上第一季的指導似乎意味著 25 年對您來說將是另一個下半年加權年——因為去年是下半年加權。我想說，可能[48到52]分為'24年的上半年和下半年。根據目前的可見性，您是否預期該範圍內會出現類似情況，或第二個半權重較少，或第二個半權重較多？原因又是什麼？

Yes. It's a good question. I think we expect certainly steady quarterly sequential growth through the year. And we expect the level of outperformance to increase in the second half of the year as we benefit from some of the node transitions I was mentioning in advanced logic and 3D NAND. So second half certainly would be stronger than the first half.

是的。這是個好問題。我認為我們預計全年季度將環比增長肯定是穩定的。我們預計，由於我們受益於我在先進邏輯和 3D NAND 中提到的一些節點轉換，下半年的優異表現水準將會提高。因此下半年肯定會比上半年強勁。

Thank you.

謝謝。

Aleksey Yefremov, KeyBanc.

阿列克謝·葉夫列莫夫，KeyBanc。

Bertrand, I'll maybe ask you a longer-term question. Any views on the level of outperformance in 2026? Do you think you'll stay at about this level, a little higher, or lower versus what you've see in '25?

伯特蘭，我可能會問你一個長期的問題。對於 2026 年的表現水準有何看法？您認為會保持在這個水平，比 25 年的水平稍微高一點還是低一點？

So Aleksey, let's go through '25 first, and then I will comment on 2026. But as a backdrop, I would say that I'm very, very pleased with the progress that we've been making, developing the suite of solutions I was mentioning in 3D NAND in particular. And as those device architectures become more challenging, I would expect the magnitude of the moly deposition opportunity, the moly etch opportunity to continue to grow.

所以阿列克謝，我們先回顧 2025 年，然後我再評論 2026 年。但作為背景，我想說，我對我們所取得的進展感到非常非常高興，特別是開發我在 3D NAND 中提到的解決方案套件。隨著這些設備架構變得越來越具有挑戰性，我預期鉬沉積機會和鉬蝕刻機會的規模將持續成長。

So -- but let's first see a few of the large memory makers transition away from tungsten to moly for the word line, and then let's see how the industry is also starting to adopt moly etch as a wet chemistry and moving away from the dry etch process that they are currently using. I think we'll have a lot more data points later in 2025. And I think I would be in a much better position to answer your question.

所以——但是讓我們先看看一些大型記憶體製造商如何從字線中的鎢轉向鉬，然後讓我們看看該行業如何開始採用鉬蝕刻作為濕化學工藝，並逐漸放棄目前正在使用的干蝕刻工藝。我認為到 2025 年稍後我們將擁有更多的數據點。我認為我可以更適合回答您的問題。

Thanks, Bertrand, and I also wanted to wish best of luck to Bill and thank him for all the help. And for my second question, I want to ask you about China. I think now about 20% of sales -- and I believe in the past, you were talking about China being 20% to 25%. So perhaps you were looking at some growth in China. With these latest restrictions, how do you think this evolving? Do you think China is still a growth market? Or you'll be around the 20% mark?

謝謝，伯特蘭，我也想祝比爾好運，並感謝他的所有幫助。第二個問題，我想問關於中國的問題。我認為現在中國市場的銷售額約佔 20% —— 而我相信過去您所說的中國市場佔比是 20% 到 25%。所以或許你正在關注中國的一些成長。有了這些最新的限制，您認為情況將如何發展？您認為中國仍是成長市場嗎？還是你會在 20% 左右？

So the way we think about it is that -- first of all, you're right. I mean, today, in 2024, China represents about 21% of our revenue. It's up from 16% in 2023. So we've seen the growth we were expecting to see in China. Clearly, we are facing some new headwinds from those regulations. So we'd expect that to be deterrent to additional growth in 2025. But I would expect China to continue to be a growth area for us.

所以我們的想法是──首先，你是對的。我的意思是，今天，也就是2024年，中國約占我們收入的21%。較 2023 年的 16% 上升。因此，我們看到了中國市場預期的成長。顯然，我們正面臨這些法規帶來的一些新的阻力。因此，我們預計這將阻礙 2025 年的進一步成長。但我預計中國將繼續成為我們的成長領域。

We have a large number of mainstream fabs that are starting operation, and I would expect them to continue to process more and more wafers over time. And we have done actually a really good job at staying competitive in China. We continue to create significant value for customers and helping them improve their device performance, helping them improve their yields. And I expect China to continue to be a growth market for us as more mainstream fab increased their productions domestically.

我們有大量主流晶圓廠開始運營，我預計隨著時間的推移，它們將繼續處理越來越多的晶圓。我們實際上在保持中國市場的競爭力方面做得非常好。我們持續為客戶創造巨大價值，幫助他們提高設備性能，幫助他們提高產量。隨著越來越多主流晶圓廠在國內增加產量，我預期中國將繼續成為我們的成長市場。

Thanks a lot.

多謝。

John Roberts, Mizuho.

瑞穗的約翰羅伯茲。

Thank you and best wishes as well, Bill. If you split your business, Bertrand, into advanced logic and AI versus mainstream, how would you characterize mainstream? Is it stable? Is it declining still, declining single digit, double digit?

謝謝你，比爾，我也致以最良好的祝愿。Bertrand，如果將您的業務分為高階邏輯和人工智慧與主流業務，您會如何描述主流業務？它穩定嗎？它還在下降嗎？

Yeah. I mean clearly advanced logic for us has been an area of significant growth last year, and mainstream was an area of weakness. I think you will see when we file our 10-K evidence of that as we report our revenue with our largest customer. So -- and I expect that to continue -- that trend to continue in 2025. We expect advanced logic to remain very strong driven by our AI application. And I expect at least the beginning of the year to be relatively muted for mainstream logic. So that ratio will continue to tilt toward advanced logic, which is positive for us because we have actually a much larger content per wafer opportunity in advanced logic as compared to mainstream logic.

是的。我的意思是，顯然高級邏輯是去年我們取得顯著成長的領域，而主流邏輯則是我們的弱點。我想，當我們向最大客戶提交 10-K 報告收入時，您就會看到這一點。所以 — — 我預期這種趨勢將會持續到 2025 年。我們預計，在我們的人工智慧應用的推動下，先進邏輯將保持強勁。我預計至少在今年年初主流邏輯會相對平靜。因此，該比例將繼續向先進邏輯傾斜，這對我們來說是正面的，因為與主流邏輯相比，先進邏輯的每片晶圓內容機會實際上要大得多。

Thank you.

謝謝。

Mike Harrison, Seaport Research Partners.

麥克‧哈里森（Mike Harrison），海港研究夥伴。

Hi, good morning, best wishes to Bill. Wanted to see if we could discuss the margin cadence for the year. The EBITDA margin for Q1, it looks like maybe a little bit of a seasonal dip. And I believe that typically, you guys have some incentive comp payouts or equity payouts during Q2 that would lead Q2 EBITDA margin to be relatively weaker as well. But maybe just kind of discuss what our expectations should be in terms of the cadence and some of the key margin drivers for the second half of the year.

嗨，早上好，向比爾致以最良好的祝愿。想看看我們是否可以討論一下今年的利潤節奏。第一季的 EBITDA 利潤率看起來可能有點季節性下降。而且我相信，通常情況下，你們在第二季度會有一些激勵性薪資支出或股權支出，這也會導致第二季的 EBITDA 利潤率相對較弱。但也許只是討論一下我們對下半年的節奏和一些關鍵利潤驅動因素的預期應該是什麼。

Mike, thank you for that question and very good memory back to last year. So you are right that the timing of our equity awards are in the second quarter. So the way I'd recommend thinking about it is look at that cadence in 2024 of how margins played out and expect a very similar pattern in 2025.

麥克，謝謝你的提問，我對去年的記憶非常深刻。所以您說得對，我們的股權獎勵時間是在第二季。因此，我建議的思考方式是觀察 2024 年利潤率的演變節奏，並預期 2025 年會出現非常相似的模式。

All right, thank you. And then was hoping -- we talked a little bit about the CMC consumables, and it's great to hear that you're seeing good momentum there. Was hoping we could talk about silicon carbide opportunities within CMP. I think last year, you had expected a really nice pickup in silicon carbide, but maybe it wasn't as good as you anticipated, but still a growth year in that part of the business. Where did we end the year in terms of revenue or, I guess, relative to your expectations? And what should we be thinking for growth in silicon carbide, CMP consumables for 2025?

好的，謝謝。然後希望 - 我們談論了一些關於 CMC 消耗品的問題，很高興聽到您看到那裡的良好勢頭。希望我們可以談談CMP內的碳化矽機會。我認為去年您曾預期碳化矽的銷量會有一個非常好的增長，但可能沒有您預期的那麼好，但對於該業務部分來說仍然是一個增長的一年。就收入而言，或相對於您的預期，我們今年的業績如何？那麼，我們該如何看待2025年碳化矽、CMP耗材的成長呢？

Yes. So you're right, I mean, silicon carbide was a very significant growth factor in 2023 compared to 2022. We were hoping to see significant incremental growth in 2024. It just didn't happen. And I think you follow this industry closely and you understand that most players in the industry didn't really grow very much in 2024, and that did impact our opportunity there. So essentially, our revenue for silicon carbide applications were flat year-on-year.

是的。所以你是對的，我的意思是，與 2022 年相比，碳化矽是 2023 年的一個非常重要的成長因素。我們希望在 2024 年看到顯著的增量成長。這根本就沒有發生。我認為你密切關注這個行業，你會明白，2024 年該行業中的大多數參與者實際上並沒有太大的成長，這確實影響了我們在那裡的機會。因此，從本質上講，我們的碳化矽應用收入比去年同期持平。

Having said that, that remains a very promising area because we are enjoying a very significant share for slurries and pads and planes. And this is another example of where this solution-selling approach has been working really well. I mean, as you know, our customers are really trying to move from 6-inch to 8-inch silicon carbide substrates. Key to that transition will be to have the right total cost of ownership, and our solutions are uniquely enabling that.

話雖如此，這仍然是一個非常有前景的領域，因為我們在泥漿、墊片和刨片方面佔有非常大的份額。這是解決方案銷售方法確實有效的另一個例子。我的意思是，如你所知，我們的客戶正努力從 6 英寸轉向 8 英寸碳化矽基板。這項轉變的關鍵在於擁有正確的總擁有成本，而我們的解決方案可以獨特地實現這一點。

I mean we have slurries offering much better removal rates, think about something 40% to 50% better than competitors. We have CMP pads that have superior lifetime, essentially lasting about 30% longer than the alternatives. And all of that translates into a significant improvement in cost of ownership in the range of up to 50% to 60%.

我的意思是我們的泥漿具有更好的去除率，比競爭對手好 40% 到 50%。我們的 CMP 墊具有更長的使用壽命，基本上比其他替代品的使用壽命長 30% 左右。所有這些都意味著擁有成本將顯著降低 50% 至 60%。

So I think we are very well positioned. We just hope that this industry actually recovers quickly. And if and when it does, you're going to start hearing us talk more about those SiC opportunities because we are very well positioned there.

因此我認為我們處於非常有利的位置。我們只是希望這個產業能夠真正快速復甦。如果確實如此，您就會開始聽到我們更多地談論 SiC 機會，因為我們在該領域處於非常有利的位置。

All right, thanks very much.

好的，非常感謝。

Thank you. The question-and-answer session has concluded. I will now turn the program back over to Bill Seymour for closing remarks.

謝謝。問答環節已經結束。現在我將節目交還給比爾·西摩，請他作結語。

Thank you for joining our call today. Please reach out to me directly if you have any follow-ups. Have a good day, and you can now disconnect.

感謝您今天參加我們的電話會議。如果您有任何後續事宜，請直接與我聯絡。祝您有美好的一天，現在您可以斷開連接了。

Thank you. This concludes today's Entegris' fourth quarter and full year 2024 earnings conference call. Please disconnect your line at this time, and have a wonderful day

謝謝。今天的 Entegris 第四季和 2024 年全年收益電話會議到此結束。請立即斷開您的線路，祝您有美好的一天