格芯 (GFS) 2023 Q2 法說會逐字稿

Good day, and thank you for standing by. Welcome to GLOBALFOUNDRIES Second Quarter 2023 Earnings Conference Call.

美好的一天，感謝您的支持。歡迎參加 GLOBALFOUNDRIES 2023 年第二季度收益電話會議。

(Operator Instructions) Please be advised that today's conference is being recorded. I would now like to hand the conference over to your speaker today, Sam Franklin, VP of Investor Relations. Please go ahead.

（操作員指示）請注意，今天的會議正在錄製中。現在我想將會議交給今天的發言人、投資者關係副總裁薩姆·富蘭克林 (Sam Franklin)。請繼續。

Thank you, operator. Good morning, everyone, and welcome to GLOBALFOUNDRIES Second Quarter 2023 Earnings Call.

謝謝你，接線員。大家早上好，歡迎參加 GLOBALFOUNDRIES 2023 年第二季度財報電話會議。

On the call with me today are Dr. Thomas Caulfield, CEO; David Reeder, CFO; and Niels Anderskouv, Chief Business Officer. A short while ago, we released GF's second quarter financial results, which are available on our website at investors.gf.com along with today's accompanying slide presentation. This call is being recorded, and a replay will be made available on our Investor Relations web page.

今天與我通話的是首席執行官 Thomas Caulfield 博士；大衛·里德，首席財務官；和首席商務官 Niels Anderskouv。不久前，我們發布了 GF 第二季度財務業績，您可以在我們的網站 Investors.gf.com 上查看該業績以及今天隨附的幻燈片演示。本次電話會議正在錄音，我們的投資者關係網頁上將提供重播。

During this call, we will present both IFRS and adjusted non-IFRS financial measures. The most directly comparable IFRS measures and reconciliations for adjusted non-IFRS measures are available in today's press release and accompanying slides. I'd remind you that these financial results are unaudited and subject to change. Certain statements on today's call may be deemed to be forward-looking statements. Such statements can be identified by terms such as believe, expect, intend, anticipate, and may or by the use of the future tense.

在本次電話會議中，我們將介紹 IFRS 和調整後的非 IFRS 財務指標。今天的新聞稿和隨附的幻燈片中提供了最直接可比的國際財務報告準則衡量標準以及調整後的非國際財務報告準則衡量標準的調節表。我想提醒您的是，這些財務結果未經審計，可能會發生變化。今天電話會議上的某些陳述可能被視為前瞻性陳述。此類陳述可以通過相信、期望、打算、預期和可能等術語或通過使用將來時來識別。

You should not place undue reliance on forward-looking statements. Actual results may differ materially from these forward-looking statements, and we do not undertake any obligation to update any forward-looking statements we make today. For more information about factors that may cause actual results to differ materially from forward-looking statements, please refer to the press release we issued today as well as risks and uncertainties described in our SEC filings, including in the section under the caption Risk Factors in our annual report on Form 20-F filed with the SEC on April 14, 2023.

您不應過分依賴前瞻性陳述。實際結果可能與這些前瞻性陳述存在重大差異，我們不承擔更新我們今天做出的任何前瞻性陳述的義務。有關可能導致實際結果與前瞻性陳述存在重大差異的因素的更多信息，請參閱我們今天發布的新聞稿以及我們向SEC 文件中描述的風險和不確定性，包括標題為“風險因素”的部分。我們於 2023 年 4 月 14 日向 SEC 提交的 20-F 表格年度報告。

We'll begin today's call with Tom providing a summary update on the current business environment and technologies, following which Dave will provide details on our end markets and second quarter results and also provide third quarter 2023 guidance. We will then open the call for questions with Tom, Dave and Niels. We request that you please limit your questions to one with one follow-up.

我們將在今天的電話會議中首先由 Tom 提供有關當前業務環境和技術的最新摘要，隨後 Dave 將提供有關我們的終端市場和第二季度業績的詳細信息，並提供 2023 年第三季度的指導。然後我們將開始向 Tom、Dave 和 Niels 提問。我們請求您將問題限制為一對一跟進。

I'll now turn the call over to Tom for his prepared remarks.

我現在將把電話轉給湯姆，讓他準備好發言。

Thank you, Sam, and welcome, everyone, to our second quarter earnings call. I'm pleased to report second quarter results that are at the high end of the guidance we provided in our first quarter update as we continue to deliver consistent financial performance against the backdrop of prolonged macroeconomic and cyclical uncertainty facing our industry.

謝謝山姆，歡迎大家參加我們的第二季度財報電話會議。我很高興地報告第二季度業績，該業績處於我們在第一季度更新中提供的指導的高端，因為在我們行業面臨長期宏觀經濟和周期性不確定性的背景下，我們繼續提供一致的財務業績。

Let me start by providing a brief update on the current business environment. Similar to others in the industry, we believe that semiconductor inventory levels across several end markets are coming down more slowly than previously expected. Certain end markets that we service, such as smart mobile devices, communications infrastructure and data center as well as the lower end of the consumer and home electronics markets are being impacted by a combination of increased inventory levels and lower year-over-year demand.

首先，我簡要介紹一下當前的商業環境。與業內其他公司類似，我們認為多個終端市場的半導體庫存水平下降速度比之前預期的要慢。我們服務的某些終端市場，如智能移動設備、通信基礎設施和數據中心，以及低端消費和家用電子產品市場，正受到庫存水平增加和同比需求下降的影響。

Consistent with the discussion in our first quarter update, we continue to believe that the return to more normalized inventory levels in the consumer-centric end markets is forecast to happen more slowly than previously anticipated and based on our discussions with our customers, will at best occur towards the end of 2023. So we still expect sequential quarter-on-quarter revenue growth throughout 2023. We believe that the rebalancing of demand for these markets will also extend later into the year and will continue to be impacted while the global macroeconomic and consumer demand outlook remain challenged.

與我們第一季度更新中的討論一致，我們仍然相信，以消費者為中心的終端市場恢復到更加正常化的庫存水平的速度預計將比之前預期的要慢，並且根據我們與客戶的討論，充其量也將恢復到更正常的庫存水平。預計到2023 年底，我們仍預計2023 年收入將實現環比連續增長。我們認為，這些市場的需求重新平衡也將持續到今年晚些時候，並將繼續受到影響，同時全球宏觀經濟和消費者需求前景仍然面臨挑戰。

Now despite these headwinds, we continue to see healthy demand in faster growing end markets such as automotive, industrial IoT, and aerospace and defense. We have announced some exciting partnerships, which I will comment on shortly, and we are working closely with our customers to support these critical important markets.

現在，儘管存在這些不利因素，我們仍然看到汽車、工業物聯網、航空航天和國防等快速增長的終端市場的健康需求。我們已經宣布了一些令人興奮的合作夥伴關係，我將很快對此進行評論，我們正在與客戶密切合作，以支持這些至關重要的市場。

Let me now touch briefly on our results, which Dave will discuss in more detail later in his commentary. Revenue in the second quarter increased sequentially to $1.845 billion, which was at the high end of our guidance range. We reported adjusted gross margin of 29.6% in the quarter, which exceeded our guidance range. This better-than-expected performance was primarily driven by the favorable timing of positive manufacturing variance, which is expected to moderate in the second half of 2023. I'm also pleased to report that we delivered adjusted earnings per share of $0.53, which as well was at the high end of our guidance range.

現在讓我簡要談談我們的結果，戴夫將在稍後的評論中更詳細地討論這些結果。第二季度收入環比增長至 18.45 億美元，處於我們指導範圍的高端。我們報告本季度調整後毛利率為 29.6%，超出了我們的指導範圍。這一好於預期的業績主要是由於正製造差異的有利時機推動的，預計這種差異將在2023 年下半年有所緩解。我還很高興地報告，我們的調整後每股收益為0.53 美元，很好，處於我們指導範圍的高端。

Let me now provide you with a brief update on some of our recent customer and partnership activity. Starting with automotive, we remain highly committed to supporting the transition of the industry from internal combustion engine models to ACE, autonomous, connected, electrified vehicles. In addition, our product portfolio is well placed to support the faster pace of uptake from automotive manufacturers seeking to compete on differentiated driver experiences and features as well as on the electronics architecture to comply with evolving safety and security standards.

現在讓我向您簡要介紹一下我們最近的一些客戶和合作夥伴活動。從汽車行業開始，我們仍然高度致力於支持行業從內燃機車型向 ACE（自動駕駛、互聯、電動汽車）的轉型。此外，我們的產品組合能夠很好地支持汽車製造商更快地採用，這些製造商尋求在差異化的駕駛員體驗和功能以及電子架構方面進行競爭，以符合不斷發展的安全和安保標準。

In smart mobile devices, we continue to drive leadership products to remix our business towards the premium tier handset market, where we've seen greater resilience in demand. We also delivered a comprehensive set of features on our [ASW] platform, our leading RF silicon-on-insulator based product line for front-end module components.

在智能移動設備方面，我們繼續推動領先產品，將我們的業務重新整合到高端手機市場，我們在高端手機市場看到了更大的需求彈性。我們還在我們的 [ASW] 平台上提供了一套全面的功能，這是我們領先的基於射頻絕緣體矽的前端模塊組件產品線。

Finally, we delivered enhancements to our 28-nanometer High-K/Metal Gate platform, which is purpose built for the image sensing and processing segment, where we continue to see content growth associated with the trend towards more cameras and pixel processing in mobile devices.

最後，我們對 28 納米 High-K/Metal Gate 平台進行了增強，該平台專為圖像傳感和處理領域而構建，我們繼續看到與移動設備中更多攝像頭和像素處理趨勢相關的內容增長。

Meanwhile, in IoT, we continue to innovate our differentiated technologies, focused on enhanced power efficiency and embedded memory for secure intelligent solutions at the edge. We are also proud to have collaborated with Cadence Design Systems to support the development of the industry's first binaural hearing aid systems-on-chip prototype to create the smart hearing aid processor, which will utilize GF's 22FDX platform.

與此同時，在物聯網領域，我們繼續創新差異化技術，專注於提高能效和嵌入式內存，以實現邊緣安全智能解決方案。我們還很自豪能夠與 Cadence Design Systems 合作，支持業界首款雙耳助聽器片上系統原型的開發，以創建智能助聽器處理器，該處理器將利用格芯的 22FDX 平台。

In communications infrastructure and data center, our customers have indicated they are working through limitary levels more slowly than anticipated, which we expect will continue well into the second half of the year. As a result, we've been able to remix some of our capacity service demand in more durable and growing segments such as automotive.

在通信基礎設施和數據中心方面，我們的客戶表示他們在限制水平上的工作速度比預期要慢，我們預計這種情況將持續到今年下半年。因此，我們能夠將一些產能服務需求重新調整到汽車等更持久和不斷增長的領域。

In June, we also announced a strategic collaboration with Lockheed Martin to advance U.S. semiconductor manufacturing and innovation and to increase the security, reliability and resiliency of domestic supply chains for national security systems. Collaborating with GF will enable Lockheed Martin to more quickly and affordably produce secure solutions that increase the capability and national security of the United States. We are proud to collaborate with Lockheed Martin to address the growing need for a reliable supply of trusted feature-rich semiconductors for mission-critical security systems.

6 月，我們還宣布與洛克希德馬丁公司進行戰略合作，以推進美國半導體製造和創新，並提高國家安全系統國內供應鏈的安全性、可靠性和彈性。與格芯的合作將使洛克希德·馬丁公司能夠更快、更經濟地生產安全解決方案，從而提高美國的能力和國家安全。我們很榮幸能與洛克希德·馬丁公司合作，滿足關鍵任務安全系統對可靠、功能豐富的半導體的可靠供應日益增長的需求。

Additionally, our 300-millimeter Fab in Malta, New York was recently accredited as a Category 1A Trusted Supplier by the U.S. government with the ability to manufacture secure semiconductors for a range of critical aerospace and defense applications.

此外，我們位於紐約馬耳他的 300 毫米晶圓廠最近被美國政府認證為 1A 類可信供應商，能夠為一系列關鍵航空航天和國防應用製造安全半導體。

This week also marks the 1-year anniversary of the signing of the CHIPS Act, and our collaboration with Lockheed Martin directly supports the Act's objectives of increasing traceability, provenance and onshore production of critical semiconductor technologies to strengthen national and economic security and domestic supply chains.

本周也是《CHIPS 法案》簽署一周年，我們與洛克希德馬丁公司的合作直接支持該法案的目標，即提高關鍵半導體技術的可追溯性、來源和陸上生產，以加強國家和經濟安全以及國內供應鏈。

To summarize, I am pleased to report financial performance at the upper end of our guidance range as our dedicated teams around the world continue to execute on the targets that we set out to deliver for our customers and all our stakeholders.

總而言之，我很高興報告財務業績處於我們指導範圍的上限，因為我們在世界各地的專業團隊繼續執行我們為客戶和所有利益相關者設定的目標。

With that, over to you, Dave.

就這樣，交給你了，戴夫。

Thank you, Tom, and welcome to our second quarter earnings call. For the remainder of the call, including guidance, I will reference adjusted metrics, which exclude stock-based compensation and restructuring charges.

謝謝湯姆，歡迎參加我們的第二季度財報電話會議。在電話會議的其餘部分，包括指導，我將參考調整後的指標，其中不包括基於股票的薪酬和重組費用。

As Tom noted, our second quarter results were at the upper end of the guidance range we provided in our last quarterly update. Second quarter revenue grew sequentially to approximately $1.845 billion, a decrease of 7% year-over-year. We shipped approximately 573,000 300-millimeter equivalent wafers in the quarter, a 9% decrease from the prior year period. ASP, where average selling price per wafer declined approximately 1% year-over-year, mainly driven by the changes in the product mix shipped during the quarter.

正如湯姆指出的那樣，我們第二季度的業績處於我們在上一季度更新中提供的指導範圍的上限。第二季度收入環比增長至約18.45億美元，同比下降7%。本季度我們出貨了約 573,000 片 300 毫米等效晶圓，比去年同期下降 9%。平均售價，每片晶圓的平均售價同比下降約 1%，主要是由於本季度出貨產品組合的變化所致。

Our LTAs, or long-term customer agreements, are helping to provide us with greater visibility on pricing dynamics, and we believe that ASPs for the full year will be flat to slightly up compared to 2022. Wafer revenue from our end markets accounted for approximately 89% of total revenue. Non-wafer revenue, which includes revenue from reticles, nonrecurring engineering, expedite fees and other items accounted for approximately 11% of total revenue for the second quarter.

我們的 LTA（即長期客戶協議）正在幫助我們更好地了解定價動態，我們相信全年的 ASP 與 2022 年相比將持平或略有上升。來自終端市場的晶圓收入約佔佔總收入的89%。非晶圓收入包括光罩、非經常性工程、加急費用和其他項目的收入，約佔第二季度總收入的 11%。

Let me now provide an update on our revenues by end markets. Smart mobile devices represented approximately 42% of the quarter's total revenue. Second quarter revenue increased approximately 13% sequentially, but declined roughly 19% from the prior year period principally driven by reduced volumes in the low to mid-tier smartphone segments and a continuation of the well-publicized inventory correction within the broader smart mobile market. Despite these reduced volumes, ASP and mix was flat year-over-year, which can be partially attributed to the framework and pricing certainty provided under our LTAs.

現在讓我介紹一下我們按終端市場劃分的收入的最新情況。智能移動設備約佔該季度總收入的 42%。第二季度收入環比增長約 13%，但較上年同期下降約 19%，主要是由於中低端智能手機市場銷量減少以及更廣泛的智能移動市場持續進行廣為人知的庫存調整。儘管銷量減少，但平均售價和產品組合同比持平，這在一定程度上歸因於我們的長期協議提供的框架和定價確定性。

During the second quarter, shipment volumes increased sequentially, which was primarily due to increased demand for our RF transceiver stand-alone and SoC solutions into premium tier handsets. Based on the conversations with our customers, we believe that inventory levels across smart mobile devices will remain elevated going into the third quarter as the rate and pace of demand growth is slower than previously anticipated.

第二季度，出貨量環比增長，這主要是由於高端手機對我們的獨立射頻收發器和 SoC 解決方案的需求增加。根據與客戶的對話，我們認為，進入第三季度，智能移動設備的庫存水平將繼續保持較高水平，因為需求增長的速度和速度低於之前的預期。

In the second quarter, revenue for the home and industrial IoT markets represented approximately 19% of the quarter's total revenue. Second quarter revenue increased approximately 4% sequentially and 3% from the year prior period. Year-over-year growth in this end market was primarily driven by improvements in ASP and mix, which helped to offset a modest decline in volumes stemming from the consumer-centric portion of home IoT.

第二季度，家庭和工業物聯網市場的收入約佔該季度總收入的 19%。第二季度收入環比增長約 4%，同比增長 3%。該終端市場的同比增長主要是由平均售價和產品組合的改善推動的，這有助於抵消家庭物聯網以消費者為中心的部分導致的銷量小幅下降。

The demand for our smart card technology has continued to grow as applications expand beyond digital payments and into areas such as transportation, government, health, security and access control. As Tom noted in his prepared remarks, aerospace and defense is a segment of growing importance within IoT, where we continue to grow design wins and establish new partnerships to deliver best-in-class semiconductor manufacturing security and traceability.

隨著應用範圍從數字支付擴展到交通、政府、健康、安全和訪問控制等領域，對我們智能卡技術的需求持續增長。正如Tom 在準備好的發言中指出的那樣，航空航天和國防是物聯網中日益重要的一個領域，我們將繼續擴大設計成果並建立新的合作夥伴關係，以提供一流的半導體製造安全性和可追溯性。

As a result, we expect increasing customer demand for our next-generation analog and mixed signal technologies into these end markets to largely offset the midterm inventory correction and market softness and the more consumer-centric portions of the IoT market.

因此，我們預計這些終端市場的客戶對下一代模擬和混合信號技術的需求不斷增加，這將在很大程度上抵消中期庫存調整和市場疲軟以及物聯網市場中以消費者為中心的部分。

Automotive continues to be a strong growth segment for us and represented approximately 13% of the quarter's total revenue. Second quarter revenue increased approximately 36% sequentially and roughly 199% from the year prior period, driven by healthy growth in volumes, ASP and mix as we have continued to ramp production across automotive processing, sensing, vehicle infrastructure and safety applications.

汽車仍然是我們強勁增長的領域，約佔本季度總收入的 13%。由於我們繼續提高汽車加工、傳感、車輛基礎設施和安全應用領域的產量，銷量、平均售價和產品組合的健康增長推動了第二季度收入環比增長約36%，較上年同期增長約199 %。

The designs we won several years ago are now ramping into production and the success of these products across automotive applications, along with our customers' focus on supply chain assurance, has allowed us to invest in significant capacity. As we continue to allocate more capacity to support the continued growth of silicon content across the vehicle architecture, our automotive business is on track to deliver approximately $1 billion of revenue in 2023, consistent with what we communicated at the start of this year.

我們幾年前贏得的設計現已投入生產，這些產品在汽車應用中的成功，加上我們客戶對供應鏈保證的關注，使我們能夠投資大量產能。隨著我們繼續分配更多產能來支持整個車輛架構中矽含量的持續增長，我們的汽車業務有望在 2023 年實現約 10 億美元的收入，這與我們在今年年初傳達的信息一致。

Next, moving on to our communications infrastructure and data center end market, which represented approximately 12% of the quarter's total revenue. Second quarter revenue declined approximately 40% sequentially and roughly 38% year-over-year as a result of declining volumes, principally driven by the prolonged levels of data center inventory and demand softening for enterprise wired infrastructure. We expect to see a decline in revenues for this end market through the second half of 2023. And as mentioned by Tom, we will continue to allocate manufacturing capacity into more durable and accretive markets, such as automotive.

接下來，轉向我們的通信基礎設施和數據中心終端市場，該市場約佔本季度總收入的 12%。由於銷量下降，第二季度收入環比下降約 40%，同比下降約 38%，這主要是由於數據中心庫存水平長期上升和企業有線基礎設施需求疲軟所致。我們預計到 2023 年下半年，該終端市場的收入將下降。正如 Tom 提到的，我們將繼續將製造能力分配到更持久和更具增值性的市場，例如汽車市場。

Finally, our personal computing end market represented approximately 3% of the quarter's total revenue. Second quarter revenue increased approximately 44% sequentially, but declined roughly 45% year-over-year, principally driven by declining volume in this segment. We expect this end market to remain at approximately 3% of total 2023 revenue.

最後，我們的個人計算終端市場約佔本季度總收入的 3%。第二季度收入環比增長約 44%，但同比下降約 45%，主要是由於該細分市場銷量下降。我們預計該終端市場將保持在 2023 年總收入的 3% 左右。

Moving next to gross profit. For the second quarter, we delivered adjusted gross profit of $546 million which was at the high end of our guided range and translates into approximately 29.6% adjusted gross margin. As Tom alluded to, the 160 basis points year-over-year improvement was slightly above the guidance range indicated, which can primarily be attributed to better-than-forecast manufacturing cost and utilization benefits within the second quarter. We expect the benefit of these items to moderate in the second half of 2023 and have guided our third quarter accordingly.

接下來是毛利潤。第二季度，我們實現調整後毛利潤 5.46 億美元，處於我們指導範圍的高端，相當於調整後毛利率約為 29.6%。正如 Tom 提到的，160 個基點的同比改善略高於指導範圍，這主要歸功於第二季度好於預期的製造成本和利用率效益。我們預計這些項目的收益將在 2023 年下半年放緩，並相應地指導了我們的第三季度。

Operating expenses for the second quarter represented approximately 11% of total revenue. R&D for the quarter declined sequentially to $100 million and SG&A increased sequentially to $108 million. Total operating expenses were $208 million, and we continue to prudently manage our costs. We delivered operating profit of $338 million for the quarter, which translates into an approximately 18% adjusted operating margin, roughly 70 bps better than the year ago period and above the high end of our guided range.

第二季度運營費用約佔總收入的11%。該季度的研發費用環比下降至 1 億美元，SG&A 環比增加至 1.08 億美元。總運營費用為 2.08 億美元，我們繼續審慎管理成本。本季度我們實現了 3.38 億美元的營業利潤，調整後的營業利潤率約為 18%，比去年同期高出約 70 個基點，高於我們指導範圍的上限。

Second quarter net interest and other expense was $10 million, and we incurred a tax expense of $31 million in the quarter. We delivered second quarter adjusted net income of approximately $297 million a decrease of approximately $20 million from the year ago period. As a result, we reported adjusted diluted earnings of $0.53 per share for the second quarter.

第二季度淨利息和其他費用為 1000 萬美元，該季度的稅務費用為 3100 萬美元。我們第二季度調整後淨利潤約為 2.97 億美元，比去年同期減少約 2000 萬美元。因此，我們報告第二季度調整後稀釋後每股收益為 0.53 美元。

Let me now provide some key balance sheet and cash flow metrics. Cash flow from operations for the second quarter was $546 million, CapEx for the quarter was $400 million or roughly 22% of revenue. Free cash flow for the quarter, which we define as net cash provided by operating activities less purchases of property, plant, equipment and intangible assets as set out on the statement of cash flows, was $146 million. At the end of the second quarter, our combined total of cash, cash equivalents and marketable securities stood at approximately $3.303 billion. We also have a $1 billion revolving credit facility, which remains undrawn.

現在讓我提供一些關鍵的資產負債表和現金流量指標。第二季度運營現金流為 5.46 億美元，本季度資本支出為 4 億美元，約佔收入的 22%。本季度的自由現金流（我們將其定義為經營活動提供的淨現金減去現金流量表中列出的不動產、廠房、設備和無形資產的採購）為 1.46 億美元。截至第二季度末，我們的現金、現金等價物和有價證券總額約為 33.03 億美元。我們還有 10 億美元的循環信貸額度，目前尚未動用。

Next, let me provide you with our outlook for the third quarter. We expect total GF revenue to be between $1.825 billion and $1.87 billion. Of this, we expect non-wafer revenue to be approximately 11% of total revenue. We expect adjusted gross profit to be between $502 million and $542 million. We expect adjusted operating profit to be between $277 million and $327 million. Excluding share-based compensation for the third quarter, we expect total OpEx to be between $215 million and $225 million.

接下來，讓我為您提供我們對第三季度的展望。我們預計 GF 總收入將在 18.25 億美元至 18.7 億美元之間。其中，我們預計非晶圓收入將佔總收入的約11%。我們預計調整後毛利潤將在 5.02 億美元至 5.42 億美元之間。我們預計調整後營業利潤將在 2.77 億美元至 3.27 億美元之間。不包括第三季度的股權激勵，我們預計總運營支出將在 2.15 億美元至 2.25 億美元之間。

At the midpoint of our guidance, we expect share-based compensation to be approximately $45 million, of which roughly $16 million is related to cost of goods sold and approximately $29 million is related to OpEx. We expect net interest and other expense for the quarter to be between $7 million and $13 million and tax expense to be between $10 million and $18 million. We expect adjusted net income to be between $254 million and $302 million on a fully diluted share count of approximately 556 million shares. We expect adjusted earnings per share for the third quarter to be between $0.46 and $0.54.

在我們指導的中點，我們預計基於股份的薪酬約為 4500 萬美元，其中約 1600 萬美元與銷售商品成本相關，約 2900 萬美元與運營支出相關。我們預計本季度的淨利息和其他費用將在 700 萬美元至 1300 萬美元之間，稅務費用將在 1000 萬美元至 1800 萬美元之間。我們預計調整後淨利潤將在 2.54 億美元至 3.02 億美元之間，完全稀釋後的股數約為 5.56 億股。我們預計第三季度調整後每股收益將在 0.46 美元至 0.54 美元之間。

As previously communicated during our May earnings call, we anticipated that utilization would run in the mid-80s for 2023. Included in our third quarter guidance is the expectation that utilization will be in the low to mid-80s for the full year 2023 as the well-publicized inventory correction flows through the supply chain. For the full year 2023, we now expect CapEx to be approximately $2 billion, which is a reduction from the guidance of $2.25 billion provided in our first quarter update. We anticipate that this CapEx profile will step down sequentially through the second half of the year.

正如我們之前在5 月份的財報電話會議上所傳達的那樣，我們預計2023 年的利用率將在80 多歲左右。我們第三季度的指導中包括預計2023 年全年的利用率將在80 多歲左右，因為廣為人知的庫存修正流經供應鏈。對於 2023 年全年，我們現在預計資本支出約為 20 億美元，這比我們第一季度更新中提供的 22.5 億美元指導有所減少。我們預計這一資本支出將在今年下半年依次下降。

In summary, consistent operational performance from our 13,000 employees and continued efforts to expand our differentiated product offerings in key growth segments enabled us to achieve second quarter results at the high end of the guidance ranges we provided in our first quarter earnings update. Although we are not immune to the cyclical headwinds currently impacting the broader semiconductor industry, we are implementing initiatives to mitigate the impacts on our business, and we remain deeply focused on positioning GF for future growth opportunities.

總之，我們 13,000 名員工的穩定運營業績以及在關鍵增長領域擴大差異化產品供應的持續努力，使我們能夠在第一季度收益更新中提供的指導範圍的高端實現第二季度業績。儘管我們無法免受當前影響更廣泛半導體行業的周期性逆風的影響，但我們正在採取措施減輕對我們業務的影響，並且我們仍然專注於為格芯定位未來的增長機會。

With that, let's open the call for Q&A. Operator?

接下來，讓我們開始問答環節。操作員？

(Operator Instructions) Our first question comes from Ross Seymore of Deutsche Bank.

（操作員指令）我們的第一個問題來自德意志銀行的 Ross Seymore。

One near-term question and one longer-term question for my follow-up. On the near-term side of things, Tom and David, you talked about -- in the last quarter about the total year revenues being down mid- to high single digits. So I wondered if there's any update on that. And perhaps more importantly, how are the LTSAs holding in? And if the inventory has to be burned, what are you guys getting in return for lowering the unit side of the equation per the LTSA agreements?

一個近期問題和一個長期問題供我跟進。就近期而言，湯姆和大衛，你們談到上個季度的年度總收入下降了中等到高個位數。所以我想知道是否有任何更新。也許更重要的是，LTSA 的表現如何？如果庫存必須被銷毀，那麼根據 LTSA 協議降低等式的單位側，你們會得到什麼回報？

Ross, I think I'll start with that question and then maybe, Tom, I'll pass it over to you to build on it with respect to the LTAs. Ross, in our prior earnings calls, we forecast that first quarter revenue in 2023, we believe would be our trough and then that quarter-to-quarter-to-quarter that we expected to grow from there sequentially. So we still expect that sequential profile.

羅斯，我想我會從這個問題開始，然後，湯姆，我可能會把它交給你，讓你在長期協議的基礎上繼續討論。羅斯，在我們之前的財報電話會議中，我們預測 2023 年第一季度的收入將是我們的低谷，然後是我們預計將在此基礎上逐季度增長的收入。所以我們仍然期望順序剖面。

And as you mentioned, for the full year, we forecast that we expected revenue to decline in the mid- to high single digits. We still expect to be in that range. And with our first half results really now in the books and with our third quarter guidance, you can probably infer from that third quarter with the first half that we are expecting to be towards the high end of that year-over-year range.

正如您所提到的，我們預測全年收入將出現中高個位數下降。我們仍然預計會在這個範圍內。根據我們上半年的業績和第三季度的指導，您可能可以從第三季度和上半年推斷出我們預計將達到同比範圍的高端。

Tom, do you want to take the LTA question?

湯姆，你想回答 LTA 問題嗎？

Yes, very good. Look, the premise of the LTAs was to create better balance through a down cycle. It wasn't just to have one side wins and the other side losses, it was to create balance and work through this trough. And I think you see it in our performance quarter-on-quarter, both in revenue and profitability that we've been able to manage inventory and manage underutilization fees in a very pragmatic way with our customers to get through this in partnership. And I dare to imagine what our world would look like if we didn't have those partnership agreements in place in the downturn with this.

是的，很好。看，長期協議的前提是通過下行週期創造更好的平衡。這不僅僅是為了讓一方獲勝而另一方失敗，而是為了創造平衡並度過這個低谷。我認為您可以從我們季度環比的業績中看到這一點，無論是在收入還是盈利能力方面，我們都能夠以非常務實的方式與客戶合作管理庫存和管理未充分利用的費用，以共同解決這一問題。我敢於想像，如果我們在經濟低迷時期沒有製定這些合作夥伴協議，我們的世界將會是什麼樣子。

Ross, did you have a follow-up?

羅斯，你有後續行動嗎？

Yes, I did. This morning, we also had an announcement on the competitive front, TSMC doing a JV with a handful of European either actual or potential customers for GF. Just wondered what your view on that. I can see the positive side is endorsed geographic diversification of manufacturing and the strength the end markets, et cetera. On the negative side, obviously, those are customers you guys would want. And so more competition in those regions, I could see lending some pressure to you guys. So how do you view that announcement from competing foundry?

是的，我做到了。今天早上，我們還宣布了競爭方面的消息，台積電與少數歐洲實際或潛在客戶為 GF 建立合資企業。只是想知道您對此有何看法。我可以看到積極的一面是製造業的地域多元化和終端市場的實力等。從消極的一面來看，顯然，這些是你們想要的客戶。這些地區的競爭更加激烈，我可以看到給你們帶來了一些壓力。那麼您如何看待競爭對手代工廠的這一聲明？

Well, we didn't wake up this morning and just see that happening. This has been in the press, in the news for a long time. I think you hit on one of the points, but let me comment on 3 elements of this. Building this capacity is consistent with the supply of the world we need in the next decade. This is an industry that's going to double. In fact, German automotive associations have talked about the need for 27 fabs alone in Europe to build capacity.

好吧，我們今天早上醒來並沒有看到這一切的發生。這件事已經在新聞界、新聞中出現了很長時間。我認為你說到了其中一點，但讓我評論一下其中的三個要素。建設這種能力與我們未來十年所需的世界供應是一致的。這是一個將翻倍的行業。事實上，德國汽車協會已經討論過僅在歐洲就需要27家工廠來建設產能。

TSMC is not -- GF is not going to go create this capacity and its own. TSMC needs to participate in a meaningful way as well. Yes, those are our customers, but they're also TSMC's customers. No one has a monopoly on any given customer, right? We -- these customers source for many of us on different platforms for different needs.

台積電不會——格芯不會去創建這種產能以及自己的產能。台積電也需要以有意義的方式參與。是的，那些是我們的客戶，但他們也是台積電的客戶。沒有人可以壟斷任何特定客戶，對吧？我們——這些客戶在不同的平台上為我們許多人採購以滿足不同的需求。

I'd also add to that, that, to your point, is in the past, this industry is built on driving huge economies of scale by concentrating supply in one region, and it drove the ultimate in cost capability because of that economies of scale. But it created an unintended consequence of huge issues with supply chain resiliency. And so GF in 2009, when we were launched, we were there to create -- to begin that thesis of the world needed a more diverse geographic manufacturing capacity for semiconductors.

我還想補充一點，就你的觀點而言，在過去，這個行業是建立在通過將供應集中在一個地區來推動巨大的規模經濟的基礎上的，並且由於規模經濟，它推動了最終的成本能力。但它卻因供應鏈彈性的巨大問題而產生了意想不到的後果。因此，格芯在 2009 年成立時，我們就在那裡創造了世界需要更加多樣化的半導體地理製造能力的論點。

We could all argue maybe that was a little bit ahead of its time. But today, it looks like it was a pretty good thought back then. And so what you're seeing is not only our competitors adding capacity that the world needs over the next decade, but they're putting it in a broader footprint to respond to the fact that we need resiliency and supply chain to your point.

我們都可以說這也許有點超前了。但今天看來，這在當時是一個非常好的想法。因此，您看到的不僅是我們的競爭對手增加了未來十年世界所需的產能，而且他們還將其置於更廣泛的範圍內，以回應我們需要彈性和供應鏈這一事實。

But the third thing is greenfield and being able to build in a high degree of concentration in one region and now taking that show on the road as it were to build another locations doesn't come very easy. It's very difficult to get the economies of scale to get the cost. And we see this is putting pressure on cost structures for others that are trying to build a geographically diverse footprint. And that just creates for GF, a better pricing environment going forward. So that's how we feel about it. This is not something that -- this isn't the first and last of something like this. The world, if we really believe, needs that kind of capacity. TSMC will need to do their part, not just you have to do own part. I hope that helps, Ross.

但第三件事是綠地，能夠在一個地區高度集中地建設，現在把這個展覽帶到路上，就像建造另一個地點一樣，這並不是一件容易的事。要想獲得規模經濟來獲得成本是非常困難的。我們看到，這給其他試圖建立地域多元化足蹟的人的成本結構帶來了壓力。這將為格芯創造一個更好的未來定價環境。這就是我們的感受。這不是這樣的事情——這不是第一次也不是最後一次這樣的事情。如果我們真的相信，世界需要這種能力。台積電需要做好他們的部分，而不僅僅是你必須做自己的部分。我希望這有幫助，羅斯。

(Operator Instructions) This question is from Mark Lipacis with Jefferies.

（操作員說明）此問題由 Jefferies 的 Mark Lipacis 提出。

Coming back to the LTAs, I believe last quarter, you noted that you had 5 new LTAs and some of your customers are actually asking for increase in scope. And so I guess I'm wondering, are we -- can you give us an update on that pace? Are we kind of at the point where your customers are kind of putting a pause on signing up for new LTAs or are you still seeing that kind of extension of longer-term agreements from your customers?

回到長期協議，我相信上個季度，您注意到您有 5 個新的長期協議，並且您的一些客戶實際上要求擴大範圍。所以我想我想知道，您能給我們介紹一下進度的最新情況嗎？您的客戶是否已經暫停簽署新的長期協議，或者您是否仍然看到客戶延長長期協議？

No, great question. There's no pause going on. We are in active discussions with a number of customers. Timing is everything. And sometimes for more substantial ones takes a little bit more time for these things that come in place. Again, this comes back to my earlier commentary. It depends what you believe, if you think the industry is done and you have all the capacity you want, then you're not going to look forward, and you stay pat. There are plenty of our customers that see their growth opportunity in automotive, IoT and things of that nature, where they want to make sure they're booking today that certainty of supply for when this industry begins to grow again. And we're working with them in very serious discussions that will eventually come to a close. So LTAs are in our past, and they are certainly in our future. And I think this is the new norm for our industry.

不，很好的問題。沒有任何停頓。我們正在與許多客戶進行積極討論。時機就是一切。有時，對於更實質性的事情來說，需要更多的時間來完成這些事情。這又回到了我之前的評論。這取決於你的信念，如果你認為這個行業已經完成並且你擁有你想要的所有能力，那麼你就不會向前看，並且保持現狀。我們的許多客戶都看到了汽車、物聯網和類似領域的增長機會，他們希望確保今天就預訂這些產品，以便在該行業開始再次增長時獲得供應​​的確定性。我們正在與他們進行非常認真的討論，最終將結束。因此，長期協議已成為我們的過去，也肯定會成為我們的未來。我認為這是我們行業的新規範。

David, anything you'd add to that?

大衛，你還有什麼要補充的嗎？

Yes, I can just build on that briefly. You're right, Mark, we didn't announce that we had signed any new material LTAs this quarter, but we are quite pleased with some of the partnerships that we've announced and that we've developed Lockheed Martin being one of those aerospace and defense being a key market in market for us on a go-forward basis and being a market along with industrial and home and industrial IoT that's performing quite well. We're also very pleased with the progression of our LTA funnel where we have ample opportunities, some of which are quite mature. So stay tuned for more LTAs in the future.

是的，我可以簡單地以此為基礎。你是對的，馬克，我們沒有宣布本季度簽署了任何新材料長期協議，但我們對我們宣布的一些合作夥伴關係感到非常滿意，並且我們已經開發了洛克希德·馬丁公司作為其中之一航空航天和國防是我們未來發展的一個關鍵市場，並且與工業、家庭和工業物聯網一起表現良好。我們也對 LTA 漏斗的進展感到非常滿意，其中我們有充足的機會，其中一些已經相當成熟。因此，請繼續關注未來更多的長期協議。

Great. Do you have a follow-up?

偉大的。你有後續行動嗎？

Yes, please. On the gross margin side, I don't think I fully understood the timing of the variances and how they will moderate going forward. I guess I assume that if you get some progress on your gross margins, you kind of get to keep them. So if you could just provide a little bit more color there, what kind of variances are we talking about? And from the standpoint of timing, where these variances you were expecting to hit in the next quarter, if you just give a little more color on that, that would be helpful.

是的，請。在毛利率方面，我認為我沒有完全理解差異發生的時間以及它們未來將如何緩和。我想我認為如果你的毛利率取得了一些進步，你就可以保持它們。因此，如果您可以在那裡提供更多一點的顏色，我們正在談論什麼樣的差異？從時間的角度來看，您預計在下個季度會出現這些差異，如果您對此提供更多說明，那將會有所幫助。

Can do, Mark. Let me give you some kind of specific second quarter commentary, and then maybe I'll broaden it out a bit as well. And as we mentioned in our prepared commentary, we did benefit a little in the second quarter from some better than expected, quite frankly, unforecasted manufacturing variance. So what is manufacturing variance. It could be anything from reduced input cost. It could be higher utilization. It could be better cost absorption. It could be better pricing that you receive from suppliers. Those would all kind of broadly fall under the category of manufacturing variance, and we received some better-than-expected manufacturing variance in the second quarter.

可以，馬克。讓我給你們一些具體的第二季度評論，然後也許我也會稍微擴展一下。正如我們在準備好的評論中提到的，我們在第二季度確實從一些好於預期的、坦率地說、不可預測的製造差異中受益。那麼什麼是製造差異。它可以是降低投入成本的任何東西。利用率可能會更高。這可能會更好地吸收成本。您從供應商那裡收到的價格可能會更好。這些都大致屬於製造差異的範疇，我們在第二季度收到了一些好於預期的製造差異。

So in the absence of that benefit, we would have been at the high end of our second quarter guidance range. So we don't really expect that manufacturing variance to kind of continue throughout the second half of this year, and so we reflected that in our guidance accordingly.

因此，如果沒有這種好處，我們將處於第二季度指導範圍的高端。因此，我們確實預計製造差異不會在今年下半年持續存在，因此我們在我們的指導中相應地反映了這一點。

But purely from a guidance perspective, when we think about third quarter -- to give third quarter gross margin, to give you some context, our midpoint guidance for third quarter and our upper range for the third quarter is actually higher than what we guided in second quarter. So if you just think about it from a purely guidance perspective, second quarter guidance versus third quarter, we're actually guiding you up guidance to guidance in the third quarter.

但純粹從指導的角度來看，當我們考慮第三季度時——給出第三季度的毛利率，給你一些背景信息，我們對第三季度的中點指導和第三季度的上限實際上高於我們在第二季度。因此，如果您只是從純粹的指導角度考慮，第二季度指導與第三季度的指導，我們實際上是在指導您提高第三季度的指導。

And then if I could just touch briefly on our longer-term gross margin road map, which I know you remember well from both pre-IPO as well as Capital Markets Day. If you recall from those roadshows and from that Capital Markets Day, we put together a pretty specific model and a bridge to go from where we were at the time to our long-term gross margin model of 40%.

然後，我可以簡單地談談我們的長期毛利率路線圖，我知道您對首次公開募股前和資本市場日都記得很清楚。如果你還記得那些路演和資本市場日，我們整合了一個非常具體的模型和一座橋樑，從我們當時的水平走向我們 40% 的長期毛利率模型。

And from a gross margin perspective, barring the current utilization headwinds that we're seeing today, we're actually ahead of that model. We're at about mid-80s in terms of utilization, which, as you know, from a sensitivity perspective, 5 points of utilization is roughly 2 points of gross margin. And yet we've been able to actually not only sustain gross margin, but slightly grow it on a year-over-year basis.

從毛利率的角度來看，除非我們今天看到當前的利用率逆風，否則我們實際上領先於該模型。就利用率而言，我們大約處於 80 年代中期，如您所知，從敏感性角度來看，5 個點的利用率大約相當於 2 個毛利率。然而，我們實際上不僅能夠維持毛利率，而且還能同比略有增長。

So with respect to our long-term gross margin road map still on track, barring the underutilization actually ahead of schedule, but certainly on track to that long-term gross margin commitment that we had made.

因此，就我們的長期毛利率路線圖而言，儘管實際上提前未充分利用，但我們的長期毛利率路線圖仍在按計劃進行，但肯定會實現我們做出的長期毛利率承諾。

This question comes from the line of Chris Danely with Citi.

這個問題來自花旗銀行的 Chris Danely。

Just another couple of questions on the gross margins going forward. Have your pricing assumptions changed at all in the last 3 months for 2023/2024? And if we keep the mid-50s utilization rate going forward, is there any risk that your inventory becomes too high because it jumped up sequentially? So wouldn't we have to have some sort of lowering of utilization rate going forward?

還有幾個關於未來毛利率的問題。您對 2023/2024 年過去 3 個月的定價假設是否發生了變化？如果我們繼續保持 50 年代中期的利用率，是否存在庫存因連續上漲而變得過高的風險？那麼我們未來是否必須降低利用率？

Sure. So let me address a couple of the points there. Let me start with the ASPs. First, let me reiterate that for the full year 2023, we still expect ASPs to be up slightly year-over-year. With respect to the second quarter, obviously, year-over-year ASP was down very slightly. That was really driven by a shift in our product mix as our core pricing has remained mostly contractual and unchanged. The mix shift in our business, it has produced a more accretive adjusted gross margin structure, as you saw with the number that we printed in the second quarter. But on a period basis, that mix shift did produce a slightly lower ASP year-over-year.

當然。讓我談談其中的幾點。讓我從 ASP 開始。首先，我重申，對於 2023 年全年，我們仍然預計平均售價將同比小幅上漲。就第二季度而言，顯然，平均售價同比略有下降。這實際上是由我們產品組合的變化推動的，因為我們的核心定價大部分保持合同規定且沒有變化。正如您在第二季度公佈的數字中看到的那樣，我們業務的混合轉變產生了更具增值性的調整後毛利率結構。但從一段時期來看，這種混合轉變確實導致平均售價同比略有下降。

And the other item I'd like to just talk about briefly before we talk about some of the inventory is that free cash flow. When you look at what we've been able to deliver, both from a gross margin perspective from cash from operations and from a capital efficiency perspective, we were able to deliver $146 million of free cash flow in the quarter. The higher gross margin structure, combined with that operational productivity and capital efficiency enabled us to produce that number despite, as you mentioned, some of the inventory growth that we saw in working capital.

在我們談論一些庫存之前，我想簡單談談的另一個項目是自由現金流。當你看看我們能夠實現的目標時，無論是從運營現金的毛利率角度還是從資本效率的角度來看，我們都能夠在本季度實現 1.46 億美元的自由現金流。較高的毛利率結構，加上運營生產力和資本效率，使我們能夠實現這一數字，儘管正如您提到的，我們在營運資本中看到了一些庫存增長。

On the inventory growth, most of that is related to substrates. We have some agreements with some of our suppliers. And some of those agreements include the purchase of substrates, which we've been able to acquire at some favorable prices. Those substrates are good for many years. And as we look through this current inventory perturbation, we look through this cycle, having the ability in the balance sheet to be able to support acquiring some of -- for what -- what would be for us raw material substrates at some fairly attractive prices, it's a good long-term decision.

在庫存增長方面，大部分與基材有關。我們與一些供應商簽訂了一些協議。其中一些協議包括購買基材，我們能夠以一些優惠的價格獲得這些基材。這些基材可以使用很多年。當我們審視當前的庫存擾動時，我們審視這個週期，資產負債表中有能力支持以相當有吸引力的價格收購一些對我們來說是什麼的原材料基材，這是一個很好的長期決定。

Did you have a follow-up, Chris?

克里斯，你有後續行動嗎？

Yes. Just talk about the 2024 expectations for pricing. Have you guys changed any of the terms of the LTAs for 2024 over the last 3 months?

是的。就說說2024年的定價預期吧。在過去 3 個月內，你們是否更改了 2024 年長期協議的任何條款？

Yes. So I won't delve too far deeply into 2024. But with respect to ASPs, look, we still have very good LTA coverage in 2024. And as you know, those contracts are fixed price, fixed volume, fixed duration. About 90% of our design wins are single sourced, and about 2/3 of our revenue today is also single source. So as we look through into '23, '24 and even into '25, we continue to see it's a relatively constructive pricing environment right now. That's our current expectation.

是的。因此，我不會太深入地探討 2024 年。但就 ASP 而言，我們在 2024 年仍然擁有非常好的 LTA 覆蓋範圍。如您所知，這些合同是固定價格、固定數量、固定期限的。我們大約 90% 的設計勝利都是單一來源，而我們今天約 2/3 的收入也是單一來源。因此，當我們回顧 23 年、24 年甚至 25 年時，我們仍然認為目前是一個相對有建設性的定價環境。這是我們目前的期望。

Our next question comes from the line of Joseph Moore of Morgan Stanley.

我們的下一個問題來自摩根士丹利的約瑟夫摩爾。

I wonder if you could touch on some of the comments upfront about the pace of inventory reduction happening more slowly. I guess what's -- I'm not surprised at the characterization that there's still some correction going on, but the idea that's happening more slowly. Can you talk about what's driving that? Are the LTAs, are there situations where people are taking inventory that they might not take if the LTAs weren't there? And then how much of that is just maybe there's a permanently higher level of inventory, given anxiety about supply chain. Just kind of curious what's underlying that comment that you made.

我想知道您是否可以提前談一下有關庫存減少速度較慢的一些評論。我想是什麼——我對仍在進行一些修正的描述並不感到驚訝，但這個想法發生得更慢。您能談談是什麼推動了這一趨勢嗎？是長期協議嗎？在某些情況下，人們是否會盤點如果沒有長期協議就可能不會盤點的庫存？考慮到對供應鏈的擔憂，其中有多少可能是庫存水平永久較高。只是有點好奇您發表的評論背後的含義是什麼。

Sure. So when we think about inventory, and we track it probably along similar lines as you do, Joe, we look at everything from distributor inventory to customer inventory to OEM inventory and then, of course, to GF as well as our peer inventory. So we look at inventory across a broad spectrum. And so when we say that inventory is depleting more slowly than we are expecting, we're primarily referring to inventory broadly across our customer set as well as across the disti and the OEM channels.

當然。因此，當我們考慮庫存時，我們可能會按照與您類似的方式進行跟踪，Joe，我們會考慮從分銷商庫存到客戶庫存再到 OEM 庫存的所有內容，當然還有 GF 以及我們的同行庫存。因此，我們廣泛關注庫存。因此，當我們說庫存消耗速度比我們預期的要慢時，我們主要指的是我們的客戶群以及分銷商和 OEM 渠道中廣泛的庫存。

When we look at that inventory, I think the glass half full view is that, that inventory is no longer growing. It looks like it has troughed, and it looks like the inventory is continuing to deplete now from this point going forward. We did expect that to happen a little earlier in the year, quite frankly, and it looks like it's pushed out. And so now we're no longer growing inventory in those channels that I just mentioned, but they haven't yet materially come down. And so that's pushed things to the right throughout 2023. So we expect that inventory to come down in the second half.

當我們查看庫存時，我認為庫存不再增長。看起來已經觸底，而且從現在開始，庫存似乎正在繼續減少。坦率地說，我們確實預計這會在今年早些時候發生，但看起來已經被推遲了。因此，現在我們不再增加我剛才提到的那些渠道的庫存，但它們還沒有實質性下降。因此，這將整個 2023 年的情況推向正確的方向。因此，我們預計庫存將在下半年下降。

Now in terms of why the inventory is currently where it is and what was the driver of it, it really is dependent on end market. I think there are some end markets that structurally will just carry higher inventory levels on a go-forward basis because the cost of that inventory is significantly less than their market opportunity loss. And so I think those markets, and I think the electrification of the automobile being an area where they still are unable to get enough inventory.

現在就庫存為何處於當前位置以及其驅動因素而言，它確實取決於終端市場。我認為，有些終端市場在結構上只會在未來的基礎上保持更高的庫存水平，因為庫存成本遠低於其市場機會損失。因此，我認為這些市場，以及汽車的電氣化是他們仍然無法獲得足夠庫存的領域。

And then I think when they do get enough inventory, they'll probably run a little bit heavier than perhaps just in time, which was kind of the traditional route. I think in some other markets like handsets, handsets we're expecting to decline on a year-over-year basis, total handsets kind of mid-ish single digits, I think that's a market where perhaps there was a little bit more inventory sold in 2022 than expected. It's carried into 2023. And while there's different areas within that market that are doing better or worse than others, I think that would be an example of the market uptick just taking a little bit longer.

然後我認為，當他們確實獲得足夠的庫存時，他們的運行量可能會比傳統的路線重一點。我認為在其他一些市場，例如手機，我們預計手機銷量將同比下降，手機總數約為個位數，我認為這個市場的庫存銷售可能會稍微多一點2022年超出預期。它會延續到 2023 年。雖然該市場中的不同領域比其他領域表現得更好或更差，但我認為這將是市場上升的一個例子，只是需要更長的時間。

Did you have a follow-on, Joe?

喬，你有後續嗎？

Yes, just on the specific point of the LTAs. Are there -- I mean, it seems like you're working with customers to ensure that they're not taking inventory that they don't want, but like is there any -- are there situations where that causes the inventory position to be a little stickier?

是的，只是關於長期協議的具體要點。是否存在 - 我的意思是，您似乎正在與客戶合作，以​​確保他們不會獲取他們不需要的庫存，但是否有任何情況 - 是否存在導致庫存狀況的情況有點粘？

I think that -- I'll take that, Dave. I think that's the point. The point is, where do you trade off kind of settling up with an underutilization fee versus taking a little bit more inventory and getting that balance. And that's all part of the muting the amplitude of a cycle like this. You don't want to go down as deep. You want to be more balanced in the peak to trough, but that typically takes the frequency of the time horizon longer. And I don't think anybody is doing anything reckless in taking a lot of inventory not to pay underutilization fees, but it's one of the levers they have and that collective we make those judgments together.

我想——我會接受的，戴夫。我認為這就是重點。關鍵是，你應該在哪裡權衡以未充分利用的費用和增加一點庫存並獲得平衡。這就是像這樣的周期振幅減弱的全部內容。你不想陷得那麼深。您希望在峰谷之間更加平衡，但這通常需要更長的時間範圍頻率。我認為沒有人會魯莽地採取大量庫存來支付未充分利用費用，但這是他們擁有的槓桿之一，也是我們共同做出這些判斷的集體。

And if I could build on that, Tom, let me just maybe talk to a proof point. One of our customers that's in the smart mobile space, actually, when they announced over the last week or so, they actually mentioned GF, they mentioned their LTA with GF. And one of the things that they mentioned was the flexibility that exists within that LTA such that they were able to migrate out of a technology node or a product set that perhaps was not in as much demand to actually a product and add a technology node that was in much more demand where they needed incremental capacity.

如果我可以在此基礎上繼續下去，湯姆，讓我也許談談一個證據點。事實上，我們的一位客戶在智能移動領域，當他們在上週左右宣佈時，他們實際上提到了 GF，他們提到了與 GF 的 LTA。他們提到的一件事是 LTA 中存在的靈活性，這樣他們就能夠從可能對實際產品沒有那麼多需求的技術節點或產品集遷移出來，並添加一個技術節點在需要增加產能的地方，需求量要大得多。

And so I think that's a great example of the framework, the LTA framework being incredibly productive because instead of fixating on one particular product or one particular variable of the engagement, we were able to sit down, have a discussion, identify areas where there are still market opportunities shift production and capacity to satisfy those for the customer, which ultimately helps them fulfill their LTA obligation in a much more comprehensive and collaborative way.

所以我認為這是該框架的一個很好的例子，LTA 框架非常高效，因為我們能夠坐下來，進行討論，確定存在哪些領域，而不是專注於一種特定產品或參與的一個特定變量。市場機會仍然會改變生產和產能以滿足客戶的需求，這最終有助於他們以更全面和協作的方式履行長期協議義務。

Our next question comes from the line of Vivek Arya with BofA Securities.

我們的下一個問題來自 Vivek Arya 與美國銀行證券公司的聯繫。

For my first one, I just wanted to clarify, could you give us a sense of which our end markets in Q3 could be up or down sequentially? And then as I look into Q4, I think your comments suggest sequential growth into Q4. And again, I'm curious what end markets would drive that given the inventory situation in some of your consumer and comms markets?

對於我的第一個問題，我只是想澄清一下，您能否讓我們了解第三季度的終端市場可能會依次上漲或下跌？然後，當我研究第四季度時，我認為您的評論表明第四季度將出現連續增長。再次，我很好奇考慮到一些消費者和通信市場的庫存情況，哪些終端市場會推動這一趨勢？

Thanks for the question, Vivek. I think I'll pass this over to Niels to maybe provide some color on 2 of the end markets, in particular, that not only grew in the second quarter, but that we expect to continue to support our enterprise revenue well into the second half both automotive and home and industrial IoT.

謝謝你的提問，維維克。我想我會將這個問題轉交給尼爾斯，以便為其中兩個終端市場提供一些信息，特別是，這些市場不僅在第二季度有所增長，而且我們預計將在下半年繼續支持我們的企業收入汽車、家庭和工業物聯網。

Niels, do you want to provide some commentary on those end markets.

Niels，您想對這些終端市場提供一些評論嗎？

I could go a little bit deeper on maybe starting with automotive and maybe addressing it in 3 ways: First, actuals this year, our expectations for '23, but also maybe talk a little bit about our long-term expectations. So as of today, we're servicing demand from [de wins] that we had over the recent years. You can see from the numbers that we did approximately $425 million in automotive in the first half and get close to $250 million run rate in the second quarter, and we're expecting sequential growth in third quarter. So we talked about in previous calls achieving $1 billion this year, and we feel confident that we will do that in 2023.

我可以更深入地討論，也許從汽車開始，也許可以通過 3 種方式解決這個問題：首先，今年的實際情況，我們對 23 年的期望，但也可以談談我們的長期期望。因此，截至今天，我們正在滿足近年來來自 [de Wins] 的需求。從數字中可以看出，我們上半年在汽車領域的銷售額約為 4.25 億美元，第二季度的運行率接近 2.5 億美元，我們預計第三季度將實現環比增長。因此，我們在之前的電話會議中談到了今年實現 10 億美元目標，我們有信心在 2023 年實現這一目標。

So in terms of looking at the future and the long-term growth, if you look at the silicon content in automotive, is expected to grow about 6x as you move from ICE to ACE, as Tom mentioned earlier. So probably an ICE about $300 on average to ACE $2,000 to $3,000 in average. So a substantial growth in silicon content. And when you look at that silicon content, what I think is really important to highlight is that the essential chip technologies that we have at GLOBALFOUNDRIES, they're a great fit for this.

因此，就未來和長期增長而言，如果你看看汽車中的矽含量，隨著從 ICE 轉向 ACE，預計將增長約 6 倍，正如 Tom 之前提到的。因此，ICE 的平均價格可能約為 300 美元，ACE 的平均價格約為 2,000 至 3,000 美元。因此矽含量大幅增長。當你查看矽含量時，我認為真正需要強調的是，我們格羅方德公司擁有的基本芯片技術非常適合這一點。

And I'd like to talk just to mention a few of them because I think the diversity and the broadness that you have of our technologies really talks to this long-term opportunity in a very good way. So some examples could be high-performance millimeter wave for radars or high dynamic range processes for the imaging sensing. Both of these 2 technologies are crucial to get good autonomous performance in the cars as we move forward. Low-power, nonvolatile memories for the MCUs, domain controllers, aggregators. We have a very comprehensive power portfolio that supports both the body control, LED lighting, battery management system, onboard charging, traction inverters. And then lastly, strong CMOS for the networking, [CAN, LIN], video, audio and [cluster] segments of the cars.

我只想提及其中的一些，因為我認為我們技術的多樣性和廣泛性確實以一種非常好的方式與這個長期機會相關。因此，一些例子可能是用於雷達的高性能毫米波或用於成像傳感的高動態範圍處理。隨著我們的發展，這兩項技術對於汽車獲得良好的自主性能至關重要。適用於 MCU、域控制器、聚合器的低功耗非易失性存儲器。我們擁有非常全面的電源產品組合，支持車身控制、LED 照明、電池管理系統、車載充電、牽引逆變器。最後，用於汽車網絡、[CAN、LIN]、視頻、音頻和[集群]部分的強大 CMOS。

So really, for us, it looks like a very, very broad future here, and we feel good about where we're going with the technologies longer term. With regards to longer term, we also continue to strengthen our partnership. GM exclusive production capacity that we announced in February '23 is a good example on that. And so really based on these partnerships and the de wins we have, we expect this business to more than double in the second half of this decade.

所以說，對於我們來說，這裡的未來看起來非常非常廣闊，我們對技術的長期發展方向感到滿意。從長遠來看，我們還將繼續加強我們的合作夥伴關係。我們在 23 年 2 月宣布的通用汽車獨家產能就是一個很好的例子。因此，基於這些合作夥伴關係和我們所擁有的成果，我們預計這項業務在本十年後半段將增長一倍以上。

So that will be a little bit of more content around our automotive position.

因此，這將是有關我們汽車行業地位的更多內容。

Maybe just to round that out for you, Vivek. I think what you heard was you heard automotive has grown sequentially for us nicely also year-over-year. We're expecting that to continue to get to that kind of $1 billion revenue estimate that we had forecasted for the year. Home and industrial IoT, we're expecting it obviously, on a sequential basis, we're expecting it to continue to perform well. Smart mobile devices, we had some nice growth sequentially from first quarter to second quarter, but we're kind of expecting to kind of bump around this level.

也許只是為了幫你解決這個問題，Vivek。我想你聽到的是，你聽說我們的汽車業務逐年增長，而且也逐年增長。我們預計今年的收入將繼續達到我們預測的 10 億美元。家庭和工業物聯網，我們顯然預計它會繼續表現良好。智能移動設備，從第一季度到第二季度，我們連續出現了一些不錯的增長，但我們預計會在這個水平附近出現波動。

As we deplete inventory towards the end of the year, and that's probably a true statement, not only for the third quarter for smart mobile devices, but throughout the year. And then both comms infrastructure and data center and PC, we expect them, obviously, to then fill in the gap to the revenue guidance that we provided for third quarter and the full year. So that's how we think about it.

隨著我們在年底耗盡庫存，這可能是一個真實的說法，不僅適用於智能移動設備的第三季度，而且適用於全年。然後，顯然，我們預計通信基礎設施、數據中心和個人電腦將填補我們為第三季度和全年提供的收入指導的空白。這就是我們的想法。

And then the one thing we said just I'll pile on, if you don't mind, is aerospace and defense. We see that foundry portion of that market growing by the end of the decade to about $2.5 billion. And there's no reason we shouldn't get our "fair share or disproportionate share" in that market. And we intend to go do that. And part of the announcement in 2Q with Lockheed Martin is about going after that. Lockheed Martin announced that they acquired a design team. So now they can make their own ASICs, and they want a foundry partner, so who they select GLOBALFOUNDRIES. So [A&D], a lot like automotive, it's you win sockets, they take many years to ramp in production, but they stick around many years. So a strategic play in A&D feels a lot like our strategic play, we kicked off 3, 4 years ago in automotive to get to a growth engine for us. So stay tuned on that.

如果你不介意的話，我們剛才說的一件事就是航空航天和國防。我們預計到本世紀末，該市場的代工部分將增長至約 25 億美元。我們沒有理由不在這個市場上獲得“公平份額或不成比例的份額”。我們打算這樣做。洛克希德·馬丁公司在第二季度宣布的部分內容就是要追隨這一目標。洛克希德馬丁公司宣布他們收購了一個設計團隊。所以現在他們可以製造自己的 ASIC，並且他們想要一個代工合作夥伴，所以他們選擇了 GLOBALFOUNDRIES。所以[A&D]，就像汽車一樣，你需要贏得插座，它們需要很多年才能提高產量，但它們會堅持很多年。因此，A&D 的戰略佈局感覺很像我們的戰略佈局，我們三四年前就開始涉足汽車領域，為我們創造增長引擎。所以請繼續關注。

Vivek, did you have a follow-up?

Vivek，你有後續行動嗎？

Yes, please. On pricing, I think from what I heard, it seems there is somewhat of a positive bias in the second half, and I'm Curious what's driving that. And I think as we look forward, I know you're not giving specific '24 or '25 outlook, but do your LTA suggest the pricing trend to be up, down, flat as we look over the next few years?

是的，請。關於定價，我認為從我所聽到的情況來看，下半年似乎存在一些積極的偏見，我很好奇是什麼推動了這一趨勢。我認為，當我們展望未來時，我知道您沒有給出具體的“24”或“25”前景，但您的長期協議是否表明我們未來幾年的定價趨勢是上升、下降、持平？

Sure. So we've stated really for a long time that our expectation is that pricing in '23 -- again, I'm talking about the full year 2023, we're expecting pricing to be up slightly from 2022. What you're hearing from us today is that we continue to expect that to occur, and that's our current forecast, and we feel quite good about that. And so kind of some product mix period by period aside, which will always make the decision to move to accretive product mix if it's accretive to gross margin versus purely focusing on ASP. But from a global statement with full year ASP in '23, we expect to be up slightly from 2022.

當然。因此，我們長期以來一直表示，我們的預期是 23 年的定價 - 再說一遍，我說的是 2023 年全年，我們預計定價將比 2022 年略有上漲。您所聽到的今天我們的預測是，我們繼續期望這種情況發生，這就是我們目前的預測，我們對此感覺很好。因此，把一些產品組合放在一邊，如果它能增加毛利率，而不是純粹專注於平均售價，那麼它總是會決定轉向增值產品組合。但從 23 年全年平均售價的全球聲明來看，我們預計將比 2022 年略有上升。

With respect to pricing longer term, I think what you've seen happen is, one, you've seen customers sign a lot of LTAs. And as we've spoken about, those have fixed price, fixed volume, fixed duration. The pricing is very solid. I also think more broadly speaking, that you've seen the industry put on new capacity. And the economic models to support putting on new capacity require the higher ASPs and the ASPs to be quite sticky at those levels. And so that's not only a GF statement, that's kind of an industry statement. And so based on both the LTAs as well as the incremental capacity that's been added, we're expecting ASPs to be quite stable and to be in a pretty conducive environment to have stable ASPs through 2024.

關於長期定價，我認為您所看到的情況是，第一，您看到客戶簽署了很多長期協議。正如我們所說，這些都有固定的價格、固定的數量、固定的期限。定價非常紮實。我還認為更廣泛地說，您已經看到該行業增加了新產能。支持新增產能的經濟模型需要更高的平均售價，並且平均售價必須在這些水平上具有相當的粘性。因此，這不僅是 GF 的聲明，也是行業聲明。因此，根據長期協議以及新增產能，我們預計平均售價將相當穩定，並處於一個非常有利的環境中，到 2024 年保持穩定的平均售價。

Our next question comes from the line of Harlan Sur with JPMorgan.

我們的下一個問題來自哈蘭·蘇爾 (Harlan Sur) 與摩根大通 (JPMorgan) 的對話。

Maybe following up on Vivek's. So on your outlook for full year wafer pricing, you mentioned blended average pricing flat to slightly up. But on a like-for-like, is pricing up better than that? I just want to make sure that the team is maintaining its fairly strong pricing power profile.

也許會跟進維韋克的。因此，在您對全年晶圓定價的展望中，您提到混合平均定價持平或略有上漲。但在同等情況下，定價會比這更好嗎？我只是想確保團隊保持其相當強大的定價能力。

Sure. Let me perhaps be a little bit more specific. And it depends on the period that you're looking at when you look back into 2022. And as we've spoken about before, and I know you know, Harlan, we put on a pretty fair amount of capacity in 2022. And with that incremental capacity came the ramp of specific LTAs and those LTAs ramped at higher prices.

當然。讓我說得更具體一點。這取決於您回顧 2022 年時所考慮的時期。正如我們之前談到的，我知道您知道，Harlan，我們在 2022 年投入了相當多的產能。增量產能來自特定長期協議的增加，而這些長期協議以更高的價格增加。

And so when you really look at the pricing for the second half of '22 versus the pricing in '23, that pricing is relatively flat year-over-year. But when you look at the pricing in the first half of 2022 versus 2023, that pricing, particularly in the first quarter, was significantly lower. And so the ramp of pricing was really tied with the capacity and the ramp of the LTAs.

因此，當您真正查看 22 年下半年的定價與 23 年的定價時，會發現該定價與去年同期相對持平。但當你對比 2023 年上半年的定價時，會發現定價（尤其是第一季度）明顯較低。因此，定價的上漲實際上與長期協議的容量和上漲有關。

And so the short answer to your question is, on a like-for-like basis, as those LTAs kicked in, pricing is very flat. I think on a year-over-year basis, from a full year blended effect, you're going to see a slight increase in full year ASP in '22 versus '23.

因此，對你的問題的簡短回答是，在同等基礎上，隨著這些長期協議的生效，定價非常平穩。我認為，與去年同期相比，從全年混合效應來看，您將看到 22 年全年 ASP 與 23 年相比略有增加。

Hopefully, that answered the question. Did you have a follow-on?

希望這回答了問題。你有後續嗎？

Yes, it did. So your large secure smart card access business and RFID tagging business, right, that appears to be holding up relatively strong here through second half of the year. And I think you and your large customer are now able to sort of redirect their wafer starts to support the backlog of demand that I think was unmet in this segment over the prior 3 years. I assume other of your customers are able to redirect their wafer starts to product segments where capacity has been tight until just recently, right? It's a good reflection, I think, of the product diversity of your customers that's helping to sustain their business, your business, auto is another good example. Any other good examples of the product diversity helping to backfill some of the areas where there might be some excess customer inventories?

是的，它確實。因此，您的大型安全智能卡訪問業務和 RFID 標籤業務在今年下半年似乎表現相對強勁。我認為您和您的大客戶現在能夠重新調整他們的晶圓生產方向，以支持積壓的需求，我認為在過去的三年裡，這一領域尚未得到滿足。我認為你們的其他客戶能夠將他們的晶圓開始轉向直到最近產能一直緊張的產品領域，對嗎？我認為，這很好地反映了客戶的產品多樣性，有助於維持他們的業務，您的業務，汽車是另一個很好的例子。產品多樣性是否有助於補充某些可能存在過剩客戶庫存的領域，還有其他好的例子嗎？

Yes. So I think that's a really good point. I'll take this one, David. So 2 pieces. One, you talked about a particular end market, smart cards. Well, if you think about smart cards, it's more than just your credit card when you wave it past a machine -- point of sales for transaction, touchless, it's not health -- it's health care. It's government security. It's credentials for your car. So it's a broadening market.

是的。所以我認為這是一個很好的觀點。我要這個，大衛。所以2塊。第一，您談到了一個特定的終端市場：智能卡。好吧，如果你想到智能卡，當你在機器上揮動它時，它不僅僅是你的信用卡——交易的銷售點，非接觸式，它不是健康——而是醫療保健。這是政府安全。這是您汽車的憑證。所以這是一個不斷擴大的市場。

But the bigger point you make is really important. It's -- you have to have 2 things. You have to have a diversity of technology platforms, and you have to have capacity that you can fund so that you can move for, hey, I need more 40-nanometer embedded memory versus a 55 solution because this customer wants to buy here. We've worked hard and long on creating that Fungibility within fabs and across our global network. And that allows us to respond to the some of the lumpiness in these market segments to some customer moving of their products as they see opportunities. And so you need both the platforms that you can address these markets and you need the fungible capacity. And that's something we'll continue to invest in across our 300- and 200-millimeter Fab network.

但你提出的更重要的觀點確實很重要。這是——你必須有兩件事。你必須擁有多樣化的技術平台，並且必須擁有可以資助的容量，以便你可以採取行動，嘿，我需要更多的 40 納米嵌入式內存而不是 55 納米解決方案，因為該客戶想在這裡購買。我們長期致力於在晶圓廠內和全球網絡中創建可替代性。這使我們能夠應對這些細分市場中一些客戶在看到機會時轉移其產品的混亂情況。因此，您既需要可以應對這些市場的平台，也需要可替代的容量。我們將繼續在 300 毫米和 200 毫米晶圓廠網絡中進行投資。

And Harlan, to give you some proof points that you're looking for. Obviously, you mentioned smart card. On the automotive side, we've been able to move some of the comms infrastructure and data center capacity to support more of the automotive business. On the smart mobile device side, we had a customer that actually provided that example for us. I won't mention their name, but you could go back to those notes and look at them mentioning the GF LTA and how they were able to migrate from one product to another. And we have multiple other examples where we've been able to utilize that flexibility that Tom mentioned to be able to not only quickly move on customer demand, but also do it in a very capital efficient way, which is going to help us accelerate our path to free cash flow in the future.

哈倫，給你一些你正在尋找的證據。顯然，您提到了智能卡。在汽車方面，我們已經能夠轉移一些通信基礎設施和數據中心容量來支持更多的汽車業務。在智能移動設備方面，我們有一位客戶實際上為我們提供了這個示例。我不會提及他們的名字，但您可以返回這些註釋並查看其中提到的 GF LTA 以及他們如何能夠從一種產品遷移到另一種產品。我們還有多個其他例子，我們已經能夠利用湯姆提到的靈活性，不僅能夠快速滿足客戶需求，而且還能以非常資本有效的方式做到這一點，這將幫助我們加快我們的速度未來自由現金流的路徑。

Our next question comes from the line of Mehdi Hosseini with SIG.

我們的下一個問題來自 SIG 的 Mehdi Hosseini。

Yes. The first one, last earning conference call, you talked about revenues for '23 flat to down high single digit. And I'm not asking for Q4 guide, but unless there is a significant improvement on a sequential basis in December, your '23 revenue would come at the low end. Is that a fair read through of what you reported on your guide for September in the context of the whole year?

是的。第一個，最後一次收益電話會議，您談到了 23 年的收入持平到下降高個位數。我並不是要求第四季度的指南，但除非 12 月份環比有顯著改善，否則您的 23 年收入將處於低端。這是您在全年背景下對 9 月份指南的報導的公正解讀嗎？

That is, Mehdi. So what we reiterated was we still believe we'll be down mid- to high single digits for the year. And given that we've already kind of posted the first half and guided the third quarter that would imply that for the fourth quarter and the full year that we would be at the high end of that year-over-year decline range.

那就是邁赫迪。因此，我們重申，我們仍然相信今年的業績將下降到中高個位數。鑑於我們已經發布了上半年業績並指導了第三季度，這意味著第四季度和全年我們將處於同比下降範圍的高端。

Sure. And then with their targeted gross margin of 40%, I just want to better understand if this is a gross or net or in other words, to what extent, it includes all the subsidies. And in that context, if there is any update on the CHIPS Act that would impact to gross margin looking into next year?

當然。然後，他們的目標毛利率為 40%，我只是想更好地了解這是毛利率還是淨利率，或者換句話說，它在多大程度上包括所有補貼。在這種情況下，《CHIPS 法案》是否有任何更新會影響明年的毛利率？

Dave, You take the CapEx. I'll take the CHIPS Act.

戴夫，你承擔資本支出。我會採納《CHIPS 法案》。

Sure. So when we originally contemplated our long-term gross margin of 40%, what that contemplated was capital intensity of about -- on an ongoing basis, steady-state basis, if you will, of 20%. And so that in other words, D&A would be about 20% of the P&L there. I think what you're hearing from us and potentially from others is that the capital intensity should be slightly offset by some of the various government support around the world. And so we haven't updated our long-term gross margin model, but the assumptions that went into it were 20% capital intensity.

當然。因此，當我們最初考慮 40% 的長期毛利率時，考慮的是資本密集度約為 20%（如果你願意的話，在持續的基礎上，在穩態基礎上）。換句話說，D&A 大約佔損益的 20%。我認為您從我們以及其他人那裡聽到的消息是，資本密集度應該會被世界各地政府的一些支持稍微抵消。因此，我們還沒有更新我們的長期毛利率模型，但其中的假設是資本密集度為 20%。

Tom, did you want to...

湯姆，你想...

And part of that -- and 20% is a net number. And so that's why these co-investments or incentives by governments around the world, including the U.S., are important. Remember, just for way of context, there's 2 ways you qualify for incentives is the ITC, which is already in flight, which is $0.25 on the dollar for capital investment in semiconductor. And then the CHIPS billed and beginning of 2022 was the year of creating the need and the program, and 2023 is the year of vetting applicants and beginning the allocation for execution.

其中一部分——20% 是一個淨數字。因此，包括美國在內的世界各國政府的共同投資或激勵措施非常重要。請記住，僅供參考，您有兩種方式可以獲得激勵措施：ITC，它已經在實施中，半導體資本投資的價格為 0.25 美元。然後 CHIPS 開始計費，2022 年初是創建需求和計劃的一年，2023 年是審查申請人並開始分配執行的一年。

But look, for us, nothing has changed. It's not about our capital allocation. It's all about how we approach the market with certainty, durability and profitability. We will never put capacity on independent of how many subsidies they are there to help us if we don't have certainty to demand by our customers. And we're not -- this isn't a game of chasing dollars, it's a game about certainty of demand. And when we add that capacity, we want to do it in durable markets, markets that we talked about earlier today that have long view into the future and stability and then of course, profitability. We're not going to invest if we can't get competitive returns on investment.

但看，對我們來說，什麼都沒有改變。這與我們的資本配置無關。這完全取決於我們如何以確定性、持久性和盈利能力進入市場。如果我們不確定客戶的需求，無論他們有多少補貼來幫助我們，我們都永遠不會增加產能。我們不是——這不是追逐美元的遊戲，而是關於需求確定性的遊戲。當我們增加產能時，我們希望在耐用市場中做到這一點，我們今天早些時候談到的市場對未來和穩定性有長遠的眼光，當然還有盈利能力。如果我們無法獲得有競爭力的投資回報，我們就不會投資。

Now bills like the CHIPS Act and ITC help close that economic equation, which helps. But it doesn't -- if there's no demand, there's no reason to leverage all that. So the key here is to get customers lined up to leverage that capacity we could put on for their products for their needs over the longer term and then use government incentives to create that capacity in our global footprint.

現在，《CHIPS 法案》和《ITC》等法案有助於縮小這一經濟方程式，這很有幫助。但事實並非如此——如果沒有需求，就沒有理由利用這一切。因此，這裡的關鍵是讓客戶排隊利用我們為他們的產品提供的產能，以滿足他們的長期需求，然後利用政府激勵措施在我們的全球足跡中創造這種產能。

And Mehdi, let me just provide you an additional contextual point related specifically to CHIPS Act, specifically the ITC. So in 2022, in the U.S., we believe that we've got about $450 million of investment that qualifies for the ITC that would imply -- at about 25% rate, that would imply something like about $120 million of potential benefit on that $450 million of qualified investment.

Mehdi，讓我為您提供一個與 CHIPS 法案（特別是 ITC）相關的額外背景知識。因此，到2022 年，在美國，我們相信我們有大約4.5 億美元的投資符合ITC 的資格，這意味著，按照大約25% 的利率，這將意味著這450 美元的潛在收益約為1.2 億美元。萬元合格投資。

And so the way that would flow through the P&L, if you assumed a steady state 10-year depreciation, the $450 million of investment would be [D&A] of about $45 million a year, but you would net out the $120 million benefit. And so instead of being $45 million a year hitting the P&L, you'd get something more like $33 million a year that would hit the P&L. So that would be a real life proof point, both of the benefit from ITC as well as how it would flow through the P&L.

因此，按照損益表的流動方式，如果假設 10 年折舊處於穩定狀態，則 4.5 億美元的投資將是每年約 4500 萬美元的 [D&A]，但您將扣除 1.2 億美元的收益。因此，您將獲得每年 3300 萬美元左右的金額，而不是每年 4500 萬美元的損益表。因此，這將成為現實生活中的證明點，包括 ITC 的收益以及它將如何流經損益表。

Kathy, we'll take one more question.

凱西，我們再問一個問題。

This question comes from the line of Krish Sankar with TD Cowen.

這個問題來自 Krish Sankar 和 TD Cowen 的對話。

I have 2 of them. Dave, you mentioned about ASPs down 1% in June quarter year-over-year, mainly due to product mix. I'm just wondering how to think about ASP trends within different verticals, like smart mobile, IoT, auto, et cetera, given the fact that we do seem to have a positive bias on ASPs into next year, should the mix shift change into next year? And then I have a follow-up.

我有 2 個。 Dave，您提到 6 月份季度的平均售價同比下降 1%，這主要是由於產品組合所致。我只是想知道如何考慮不同垂直領域（如智能移動、物聯網、汽車等）的 ASP 趨勢，考慮到我們似乎確實對明年的 ASP 抱有積極的偏見，如果混合轉變為明年？然後我有一個後續行動。

Sure, sure. Look, I think, broadly speaking, ASPs are primarily predicated on how much GF kind of differentiated technology and content is kind of included in the product set or the solution. So you could go literally within any end market, and you could find products that either average you up or average you down with respect to pure ASP. What we really focus on is, we really focus on the product mix that is most accretive to us from a profitability perspective. And while globally, I think you could probably make a statement like on average comms infrastructure and data center, on average, probably has a slightly higher ASP than maybe an end market like automotive.

一定一定。我認為，從廣義上講，ASP 主要取決於產品集或解決方案中包含多少 GF 類型的差異化技術和內容。因此，您實際上可以進入任何終端市場，並且您可以找到相對於純 ASP 而言平均水平較高或較低的產品。我們真正關注的是，我們真正關注從盈利角度來看最能增加我們收益的產品組合。在全球範圍內，我認為您可能會發表這樣的聲明：平均而言，通信基礎設施和數據中心的平均售價可能略高於汽車等終端市場。

Obviously, you've seen comm infrastructure and data center kind of decline for us given some of the inventory challenges in that particular end market, and you've seen automotive grow in a really meaningful way at globally, probably at slightly lower ASP, but yet you've seen us accrete from a gross margin perspective.

顯然，考慮到特定終端市場的一些庫存挑戰，您已經看到我們的通信基礎設施和數據中心有所下降，並且您已經看到汽車在全球範圍內以真正有意義的方式增長，可能以略低的平均售價，但是然而，您已經看到我們從毛利率的角度來看是在不斷增長的。

And so I think, in general, ASP largely tied to how much total content is in the solution. Does it have nonvolatile memory? Does it have BCD? Is it on an FDX or an SOI-type of wafer? So I think, obviously, that plays an important role, but even more important role is the product accretive miss from a gross margin perspective.

因此，我認為，一般來說，ASP 在很大程度上與解決方案中的總內容量有關。它有非易失性存儲器嗎？有BCD碼嗎？是在 FDX 還是 SOI 類型的晶圓上？所以我認為，顯然，這起著重要作用，但更重要的作用是從毛利率的角度來看產品增值的缺失。

Do you a quick follow-up?

你能快速跟進嗎？

Yes. I had a quick follow-up. How much of your 2024 capacity is covered by LTAs?

是的。我進行了快速跟進。長期協議涵蓋了您 2024 年產能的多少？

Yes. So with respect to 2024 capacity, I'll just -- let me provide some brief context. Originally, we committed that we were going to increase our capacity from about 2 million wafers in 2020 to about 2.4 million wafers in '21, about 2.6 million wafers in '22 to about 2.8 million wafers this year to north of 3 million wafers in 2024. We're very much on track to deliver on that plan, although obviously, we've slowed some of the installation of that capacity based on some of the well-known challenges with respect to channel inventory in the market. If you go back to our Capital Markets Day presentation, you'll see how much of that capacity plan was reflected and covered by LTAs. And I would say that we're still largely consistent with what we showed at Capital Markets Day.

是的。因此，關於 2024 年的產能，我將提供一些簡短的背景信息。最初，我們承諾將產能從2020 年的約200 萬片晶圓增加到21 年的約240 萬片晶圓，從22 年的約260 萬片晶圓增加到今年的約280 萬片晶圓，到2024 年將增加到300 萬片晶圓以上我們正在按計劃實現該計劃，但顯然，由於市場上渠道庫存方面存在一些眾所周知的挑戰，我們已經放慢了部分容量的安裝速度。如果您返回我們的資本市場日演示，您將看到長期協議反映和涵蓋了該容量計劃的多少。我想說，我們仍然與我們在資本市場日所展示的情況基本一致。

All right. Thanks, Cathy. Appreciate it, and thank you, everyone, for joining the call today.

好的。謝謝，凱茜。感謝大家今天加入電話會議。

This concludes today's conference call. Thanks for participating. You may now disconnect.

今天的電話會議到此結束。感謝您的參與。您現在可以斷開連接。