格芯 (GFS) 2024 Q1 法說會逐字稿

Good day, and thank you for standing by. Welcome to the GlobalFoundries conference call to review the first quarter of fiscal year 2024 financial results. (Operator Instructions) Please be advised that today's conference is being recorded. I would now like to hand the conference over to your first speaker today, Sam Franklin, VP of Business Finance and Investor Relations. Please go ahead.

您好，感謝您的支持。歡迎參加 GlobalFoundries 電話會議，回顧 2024 財年第一季的財務表現。 （操作員指示）請注意，今天的會議正在錄音。現在，我想將會議交給今天的第一位發言者、商業財務和投資者關係副總裁 Sam Franklin。請繼續。

Thank you, operator. Good morning, everyone, and welcome to GlobalFoundries' First Quarter 2024 Earnings Call. On the call with me today are Dr. Thomas Caulfield, CEO; John Hollister, CFO; and Niels Anderskouv, Chief Business Officer. A short while ago, we released GF's first quarter financial results, which are available on our website at investors.gf.com, along with today's accompanying slide presentation.

謝謝您，接線生。大家早安，歡迎參加 GlobalFoundries 2024 年第一季財報電話會議。今天與我一起通話的有執行長 Thomas Caulfield 博士；約翰·霍利斯特（John Hollister），財務長；以及首席商務官 Niels Anderskouv。不久前，我們發布了 GF 第一季的財務業績，您可以在我們的網站 investor.gf.com 上查看該業績，同時還可以查看今天的幻燈片演示。

This call is being recorded and a replay will be made available on our Investor Relations web page. During this call, we will present both IFRS and non-IFRS financial measures. The most directly comparable IFRS measures and reconciliations for non-IFRS measures are available in today's press release and accompanying slides. I would 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.

本次通話正在錄音，重播將發佈在我們的投資人關係網頁上。在本次電話會議中，我們將介紹 IFRS 和非 IFRS 財務指標。今天的新聞稿和隨附的幻燈片提供了最直接可比較的 IFRS 指標和非 IFRS 指標的對帳表。我要提醒您，這些財務結果未經審計，可能會有所變動。今天電話會議上的某些聲明可能被視為前瞻性聲明。此類陳述可以透過相信、期望、打算、預期、可能等術語或將來時態的使用來識別。

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 sections under the caption Risk Factors in our annual report on Form 20-F filed with the SEC on April 29, 2024.

您不應過度依賴前瞻性陳述。實際結果可能與這些前瞻性陳述有重大差異，我們不承擔更新今天所做的任何前瞻性陳述的任何義務。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美國證券交易委員會提交的文件中描述的風險和不確定性，包括我們於 2024 年 4 月 29 日向美國證券交易委員會提交的 20-F 表年度報告中“風險因素”標題下的部分。

We will begin today's call with Tom providing a summary update on the current business environment and technologies, following which John will provide details on our end markets and first quarter results and also provide second quarter 2024 guidance. We will then open up the call for questions with Tom, John and Niels. We request that you please limit your questions to one with one follow-up. I'll now turn the call over to Tom for his prepared remarks.

今天的電話會議將由湯姆首先介紹當前商業環境和技術的摘要更新，隨後約翰將介紹我們的終端市場和第一季度業績的詳細信息，並提供 2024 年第二季度的指引。然後我們將開始與湯姆、約翰和尼爾斯進行提問。我們請求您將問題限制為一個，並進行一次跟進。現在我將電話轉給湯姆，請他發表準備好的發言。

Thank you, Sam, and welcome, everyone, to our first quarter earnings call. We believe our industry is beginning to emerge from a challenging period of inventory correction, albeit in a very cautious manner. For GF, I'm pleased to report first quarter results that exceeded the guidance ranges we indicated in our fourth quarter earnings call. The continued efforts of our employees are positioning GF to support our customers over the long term in the markets where they excel, on the technology platforms they want and across the regions where they need us, both globally and locally.

謝謝你，山姆，歡迎大家參加我們的第一季財報電話會議。我們相信，儘管方式非常謹慎，但我們的產業正開始走出充滿挑戰的庫存調整期。對於 GF，我很高興地報告第一季的業績超出了我們在第四季度財報電話會議上指出的指導範圍。我們員工的持續努力使 GF 能夠在客戶擅長的市場、他們所需的技術平台以及他們需要的地區（全球和本地）為客戶提供長期支援。

So before I move on to the business update, let me give a shout out and thank you to all our teams across the world. I'm proud of how well they are partnering with our customers and executing to our plans, particularly as we begin to see signs of channel inventory in absolute dollars decline in some of the key end markets that we serve. Having said this, certain end markets remain challenged, mostly related to macroeconomic conditions, and the rate of inventory reduction is much slower than anticipated as we began 2024.

因此，在我開始介紹業務更新之前，請允許我先向我們在世界各地的所有團隊表示感謝。我為他們與我們的客戶合作良好並執行我們的計劃而感到自豪，特別是當我們開始看到我們所服務的一些主要終端市場的通路庫存絕對美元下降的跡象時。話雖如此，某些終端市場仍然面臨挑戰，主要與宏觀經濟條件有關，庫存減少的速度比我們 2024 年初預期的要慢得多。

I'm confident in the resilience and commitment of our teams to keep winning new opportunities and innovating our technology offerings as we continue to build our future together. With this in mind, let me start with providing a brief update on the current business landscape. Like many others across the industry, we expect macroeconomic and geopolitical uncertainties to persist through 2024.

我相信，我們團隊的韌性和承諾將在我們繼續共同建立未來的過程中不斷贏得新的機會並創新我們的技術產品。考慮到這一點，我首先簡要介紹一下當前的商業狀況。與業內的許多其他公司一樣，我們預計宏觀經濟和地緣政治的不確定性將持續到 2024 年。

Although we're seeing signs of inventory levels trending down among some of our customers in core end markets such as smart mobile devices, other customers have indicated to us that inventory levels have remained higher in end markets such as IoT and automotive. The combination of elevated inventory levels and the uncertain demand environment has led to some of our customers seeking to adjust their near-term volume requirements under their agreements with us.

儘管我們看到智慧行動裝置等核心終端市場的部分客戶的庫存水準出現下降跡象，但其他客戶向我們表示，物聯網和汽車等終端市場的庫存水準仍然較高。庫存水準上升和需求環境不確定已導致我們的一些客戶尋求根據其與我們達成的協議調整近期的產量需求。

We have continued to collaborate closely with these customers to find mutually beneficial outcomes while seeking to safeguard the long-term economic value of our relationships. In some instances, the conclusion of these discussions has resulted in underutilization or restructuring payments, which John will comment on further.

我們繼續與這些客戶密切合作，尋求互利的結果，同時尋求維護我們關係的長期經濟價值。在某些情況下，這些討論的結論導致了利用不足或重組付款，約翰將對此進一步評論。

Importantly, the dialogue with our customers has been very constructive as we work together to accelerate the channel inventory depletion and continue to find new ways to partner together going forward. Based on the progress of these discussions and as we set out during our last earnings call, we still anticipate that our first quarter revenue will represent the low point for 2024 with quarter-to-quarter sequential growth through the year.

重要的是，我們與客戶的對話非常有建設性，我們共同努力加速通路庫存消耗，並繼續尋找新的合作方式。根據這些討論的進展以及我們在上次財報電話會議上所述的情況，我們仍然預計第一季度的收入將代表 2024 年的最低點，並且全年將實現逐季增長。

Let me now touch briefly on our first quarter results, which John will discuss in more detail later in his commentary. Revenue in the quarter decreased sequentially to $1.549 billion, which was above the high point of our guidance range. We reported non-IFRS gross margin of 26.1% in the quarter, which again exceeded our guidance range.

現在讓我簡單談談我們的第一季業績，約翰將在後面的評論中更詳細地討論。本季營收季減至 15.49 億美元，高於我們預期範圍的高點。我們報告本季的非國際財務報告準則毛利率為 26.1%，再次超出了我們的預期範圍。

We delivered a fourth consecutive quarter of positive non-IFRS free cash flow, which continues our disciplined approach to capital deployment while preserving our strategic capacity expansion objectives. I am also pleased to report that we delivered non-IFRS diluted earnings per share of $0.31, which exceeded the high end of our guidance range.

我們連續第四個季度實現了非國際財務報告準則下的正自由現金流，這延續了我們嚴謹的資本配置方式，同時保持了我們的策略產能擴張目標。我還很高興地報告，我們實現的非國際財務報告準則攤薄每股收益為 0.31 美元，超過了我們預期範圍的高端。

Let me now provide you a brief update on some of our recent customer and partnership activity. After a milestone year for our automotive end market in 2023, in which we delivered over $1 billion of revenue, we are continuing to partner with our customers to identify long-term opportunities to expand share and content in the vehicles of today and the future.

現在讓我向您簡要介紹我們最近的一些客戶和合作夥伴的活動。 2023 年是我們汽車終端市場具有里程碑意義的一年，實現了超過 10 億美元的收入，我們將繼續與客戶合作，尋找長期機會，以擴大當前和未來的汽車份額和內容。

GF technologies are key enablers to the silicon content growth in vehicles, including 12LP+, our FinFET platform widely used in infotainment and navigation systems, to 40-nanometer microcontrollers with and without embedded nonvolatile memory for safety, powertrain and comfort applications, and all the way through our power technologies at 130- and 180-nanometer technologies.

GF 技術是推動汽車矽片含量成長的關鍵因素，包括廣泛用於資訊娛樂和導航系統的 12LP+（我們的 FinFET 平台），用於安全、動力傳動系統和舒適性應用的具有和不帶有嵌入式非揮發性記憶體的 40 奈米微控制器，以及我們的 130 奈米電源和 180 奈米電源技術。

Continuing this trend through the first quarter, our teams closed key design wins on our 40 ISP technology, this is for image sensor processor, and 130 BCD power platforms, delivering critical ADAS, motor controllers and sensor applications at automotive-grade standards. The semiconductor content of automobiles continues to expand. And although we expect a period of automotive demand moderation in 2024, we still expect full year revenue in this end market to grow meaningfully on a year-over-year basis.

在整個第一季度，我們的團隊延續了這一趨勢，在 40 個 ISP 技術（用於影像感測器處理器）和 130 個 BCD 電源平台方面取得了關鍵設計勝利，按照汽車級標準交付了關鍵的 ADAS、馬達控制器和感測器應用。汽車的半導體含量不斷擴大。儘管我們預計 2024 年汽車需求將出現一段放緩期，但我們仍預期該終端市場的全年營收將較去年同期大幅成長。

Turning now to smart mobile devices. As I alluded to in my introduction, we are beginning to see positive indicators across the smart mobile device ecosystem as excess inventories are drawing down on an absolute dollar basis across several of our customers. Although inventories remain above normal levels, we expect the rate and pace of the drawdown to progress throughout 2024.

現在來談談智慧型行動裝置。正如我在介紹中提到的，我們開始看到整個智慧行動裝置生態系統的積極指標，因為我們的幾個客戶的過剩庫存在絕對美元基礎上正在減少。儘管庫存仍高於正常水平，但我們預計庫存下降的速度和步伐將在整個 2024 年持續。

We have excellent traction with our RF front-end offerings, especially our 9SW RF SOI platform, which features low standby currents for longer battery life. Our 22FDX millimeter wave technology for smartphone connectivity has ramped to volume production and we're also engaged with key OLED display driver makers with design wins ramping in 2024.

我們的射頻前端產品具有出色的吸引力，尤其是我們的 9SW RF SOI 平台，其特點是待機電流低，可延長電池壽命。我們用於智慧型手機連接的 22FDX 毫米波技術已實現量產，我們還與主要的 OLED 顯示器驅動器製造商合作，預計將在 2024 年獲得設計勝利。

These features drive increased silicon content, which in turn drives the need for higher-performance connectivity and low-power technologies, which GF is well placed to serve. In IoT, we continue to see long-term opportunities as the number and complexity of smart connected devices continues to grow. This is driven by the need to sense, acquire, process and communicate data.

這些特性推動了矽含量的增加，進而推動了對更高效能連接和低功耗技術的需求，而 GF 則完全有能力滿足這些需求。在物聯網領域，隨著智慧互聯設備的數量和複雜性不斷增長，我們繼續看到長期機會。這是由感知、獲取、處理和傳遞資料的需求所驅動的。

This also translates into new requirements for more efficient power management, connectivity and AI at the edge functionalities, as the number of wirelessly connected and battery-operated products continues to broaden. In the first quarter, we closed a key design win on our 22FDX+ platform, which will be used to enable high-speed wireless interfaces for IoT applications. Our 22FDX ecosystem supports design enablement, IP and design services to a wide range of our customers to develop wireless IoT products with improved efficiency at the lowest possible power.

隨著無線連接和電池供電產品的數量不斷增加，這也對更有效率的電源管理、連接和邊緣功能人工智慧提出了新的要求。第一季度，我們完成了 22FDX+ 平台的重要設計，該平台將用於為物聯網應用提供高速無線介面。我們的 22FDX 生態系統為廣泛的客戶提供設計支援、IP 和設計服務，以開發具有更高效率和盡可能低的功率的無線物聯網產品。

We expect inventories to remain elevated across IoT during at least the first half of 2024. However, the requirements for speed, security and inference at the edge are all long-term drivers for our next-generation analog and mixed-signal technologies. Furthermore, we continue to see traction in aerospace and defense, where we are addressing key needs across harsh environments, such as satellite and space avionics and terrestrial applications with our resilient, secure and performance-optimized products.

我們預計至少在 2024 年上半年，整個物聯網的庫存仍將保持高位。此外，我們在航空航太和國防領域繼續保持發展勢頭，我們透過有彈性、安全且性能優化的產品滿足惡劣環境下的關鍵需求，例如衛星和太空航空電子設備以及地面應用。

Finally, our communications infrastructure and data center segment continued to show weakness in the first quarter amidst the sustained node migration of data center and digital-centric customers to single-digit nanometer platforms, which we discussed in our prior earnings call. We expect this end market to remain challenged in 2024, with quarterly revenue expected to be roughly in line with what we have reported for in the first quarter.

最後，由於資料中心和數位中心客戶持續向個位數奈米平台進行節點遷移，我們的通訊基礎設施和資料中心部門在第一季度繼續表現出疲軟，我們在先前的財報電話會議上討論過這一點。我們預計該終端市場在 2024 年仍將面臨挑戰，預計季度收入與我們第一季報告的收入大致相當。

However, over the long term, we expect the transition to generative AI will increase the demand for high bandwidth communication and efficient power conversions, a trend that GF is well positioned to address through our silicon photonics and power delivery solutions. To that end, I am pleased to report an important Q1 design win using our 130 [NSX] platform, which will support ground terminal infrastructure for satellite communications. As we ramp these programs, we continue to execute opportunities to [remix] some of our excess capacity to service FinFET demand in more durable segments, such as automotive and smart mobile devices.

然而，從長遠來看，我們預計向生成式人工智慧的轉變將增加對高頻寬通訊和高效電源轉換的需求，而 GF 可以透過我們的矽光子學和電力傳輸解決方案很好地應對這一趨勢。為此，我很高興地報告，我們在第一季贏得了一項重要的設計勝利，該平台採用 130 [NSX] 平台，將為衛星通訊的地面終端基礎設施提供支援。隨著我們擴大這些項目，我們將繼續抓住機會，重新利用部分過剩產能，以滿足汽車和智慧型行動裝置等更耐用領域的 FinFET 需求。

We are also diversifying our manufacturing footprint by accelerating the transfer of technologies such as 22FDX, 28-nanometer high voltage and 40-nanometer ESF3 into our Fab 8 facility in Malta, New York. This diversification will offer even more choice to our customers across multiple end markets here in the U.S. and enable a broader end market participation.

我們也透過加速將 22FDX、28 奈米高壓和 40 奈米 ESF3 等技術轉移到位於紐約馬耳他的 Fab 8 工廠，實現了製造足跡的多元化。這種多樣化將為我們在美國多個終端市場的客戶提供更多選擇，並使更廣泛的終端市場參與成為可能。

To that end, we are delighted with the announcement from the Department of Commerce to award $1.5 billion in proposed funding for GF as part of the U.S. CHIPS and Science Act, in addition to the over $600 million proposed by New York State under its Green CHIPS Program.

為此，我們很高興看到美國商務部宣布根據美國《晶片與科學法案》為 GF 提供 15 億美元的資金，此外紐約州還根據其綠色晶片計劃提議提供超過 6 億美元的資金。

We're very excited to be working closely with the federal and state governments on these grants, which will enable us to add critical semiconductor manufacturing capacity and construction jobs in our U.S. locations while supporting our customers where they need us.

我們非常高興能與聯邦政府和州政府就這些撥款展開密切合作，這將使我們能夠在美國各地增加關鍵的半導體製造能力和建築崗位，同時在客戶需要的地方為他們提供支持。

To summarize, I am proud of our teams around the world as they executed to plan, and we delivered first quarter revenue, gross profit and EPS which all exceeded the high end of our guidance ranges. With that, over to you, John.

總而言之，我為我們遍布全球的團隊感到自豪，他們按照計劃執行，我們第一季的收入、毛利和每股收益均超出了我們預期範圍的高端。現在，就交給你了，約翰。

Thank you, Tom, and welcome, everyone, to our first quarter earnings call. For the remainder of the call, including guidance, other than revenue, cash flow, CapEx, tax expense and net interest and other expense, I will reference non-IFRS metrics, which exclude stock-based compensation and restructuring charges.

謝謝你，湯姆，歡迎大家參加我們的第一季財報電話會議。對於電話會議的剩餘部分，包括除收入、現金流量、資本支出、稅金支出和淨利息及其他費用以外的指導，我將參考非國際財務報告準則指標，這些指標不包括股票薪酬和重組費用。

As Tom noted, our first quarter results exceeded the upper end of the guidance ranges we provided in our last quarterly update. We delivered first quarter revenue of $1.549 billion, a decrease of 16% year-over-year, principally due to lower shipments and utilization levels in the low to mid-70s, consistent with the commentary on our last earnings call. We shipped approximately 463,000 300-millimeter equivalent wafers in the quarter, a 9% decrease from the prior year period.

正如湯姆所指出的，我們的第一季業績超出了我們在上次季度更新中提供的指導範圍的上限。我們第一季的營收為 15.49 億美元，較去年同期下降 16%，主要原因是出貨量下降及利用率處於 70 年代中低段，這與我們上次財報電話會議上的評論一致。本季我們出貨了約 463,000 片 300 毫米當量晶圓，較去年同期下降 9%。

ASP or average selling price per wafer declined approximately 6% year-over-year, mainly driven by changes in the product mix shipped during the quarter. We expect that the pricing environment will remain constructive through 2024, and we believe that ASPs for the full year will be roughly flat compared to 2023.

每片晶圓的平均銷售價格 (ASP) 年減約 6%，主要由於本季出貨的產品組合變化所致。我們預計到 2024 年定價環境仍將保持良好，並且我們認為全年平均售價將與 2023 年基本持平。

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 first quarter.

來自我們終端市場的晶圓收入約佔總收入的89%。非晶圓收入包括來自光罩、非經常性工程、加急費和其他項目的收入，約佔第一季總收入的 11%。

Let me now provide an update on our revenues by end markets. Smart mobile devices represented approximately 44% of the quarter's total revenue. First quarter revenue decreased approximately 2% from the prior year period, principally driven by reduced shipments as customers continue to draw down inventory. This decline was partially offset by slightly higher ASPs, premium tier mix growth and continued content growth and value capture in 5G RF front-end content as well as imaging and display applications. As Tom discussed, we believe that inventory levels in this end market will begin to normalize through the first half of 2024, with some of our customers signaling demand growth in the second half of the year.

現在讓我提供一下我們按終端市場劃分的收入最新情況。智慧型行動裝置約佔本季總營收的44%。第一季營收較去年同期下降約 2%，主要原因是客戶持續減少庫存導致出貨量減少。這一下降被略微上漲的平均售價、高端產品組合的增長、以及 5G RF 前端內容以及成像和顯示應用的持續內容增長和價值獲取部分抵消。正如湯姆所討論的，我們相信這個終端市場的庫存水準將在 2024 年上半年開始正常化，我們的一些客戶表示下半年需求將會成長。

In the first quarter, revenue for the home and industrial IoT markets, which now includes revenue from our legacy PC end market, represented approximately 20% of the quarter's total revenue. First quarter revenue decreased approximately 19% from the year prior period as our customers in the consumer and industrial IoT segments continue to focus on bringing down channel inventory, which remains elevated compared to recent years. Reduced shipments in the consumer-centric and industrial portions of IoT were partially offset by year-over-year improvements in ASP and mix as well as increased volumes in our aerospace and defense segment.

第一季度，家庭和工業物聯網市場的收入（現在包括來自我們傳統PC端市場的收入）約佔本季總收入的20％。第一季營收較去年同期下降約 19%，因為我們的消費和工業物聯網領域的客戶繼續致力於降低通路庫存，而與近年來相比，通路庫存仍然較高。物聯網中以消費者為中心和工業部分的出貨量減少，被平均售價和產品組合的同比改善以及航空航天和國防部門的銷售增加部分抵消。

Automotive continues to be a key growth segment for us and represented approximately 17% of the quarter's total revenue. First quarter revenue grew approximately 48% from the year prior period principally due to higher volumes as semiconductor content and features increased across the vehicle architecture and our designs continue to ramp at key customers, which were partially offset by reductions in ASP and mix. As Tom noted, we expect automotive revenue growth to continue in 2024 as we support our customers across a diverse range of automotive applications in both internal combustion engine and autonomous connected electrified vehicles.

汽車仍然是我們的主要成長領域，約佔本季總收入的 17%。 第一季營收較去年同期成長約 48%，主要原因是由於整個車輛架構中半導體內容和功能的增加以及我們的設計繼續針對主要客戶進行推廣導致銷量增加，但這被 ASP 和產品組合的降低部分抵消。 正如湯姆所說，我們預計 2024 年汽車收入將繼續成長，因為我們為內燃機和自動連網電動車等各種汽車應用客戶提供支援。

Finally, moving on to our communications infrastructure and data center end market, which represented approximately 8% of the quarter's total revenue, first quarter revenue declined approximately 66% year-over-year as a result of declining volumes and the key drivers outlined by Tom in his prepared remarks, while ASP and mix remained roughly flat in this end market. As Tom noted, we will continue to allocate manufacturing capacity in order to diversify our footprint with the additional allocation targeted to markets such as automotive and premium smart mobile applications.

最後，談到我們的通訊基礎設施和資料中心終端市場，該市場約佔本季總收入的 8%，由於銷量下降和湯姆在其準備好的發言中概述的關鍵驅動因素，第一季度收入同比下降約 66%，而該終端市場的平均售價和產品組合基本上保持平穩。正如湯姆所說，我們將繼續分配製造能力，以實現業務多元化，並將額外分配用於汽車和高端智慧行動應用等市場。

Moving next to gross profit. For the first quarter, we delivered gross profit of $405 million, which was above the high end of our guidance range and translates into approximately 26.1% gross margin. Gross margin exceeded the guidance range indicated, and as Tom alluded to in his prepared remarks, includes $82 million in revenue associated with the execution of customer volume adjustments. Looking ahead to the second quarter of 2024, we expect additional customer volume adjustments, which have been reflected in our second quarter guidance ranges.

接下來是毛利。第一季度，我們的毛利為 4.05 億美元，高於我們預期範圍的高位，相當於毛利率約為 26.1%。毛利率超出了預期範圍，正如湯姆在準備好的演講中所提到的，其中包括與執行客戶數量調整相關的 8,200 萬美元收入。展望 2024 年第二季度，我們預計客戶數量將進一步調整，這已反映在我們的第二季度指導範圍內。

Operating expenses for the first quarter represented approximately 14% of total revenue. R&D for the quarter increased sequentially to $117 million and SG&A increased sequentially to $101 million. Total operating expenses increased sequentially to $218 million in the quarter and incorporated an advanced manufacturing investment tax credit of $10 million. As we discussed on our last earnings call, as we continue to spend on qualifying U.S. expenses and capitalized assets in 2024 and beyond, we expect to continue to receive these benefits through the life of the program.

第一季的營業費用約佔總收入的14%。本季研發費用較上季增加至 1.17 億美元，銷售、一般及行政開支較上月增加至 1.01 億美元。本季總營運費用較上季增加至 2.18 億美元，並納入了 1,000 萬美元的先進製造業投資稅收抵免。正如我們在上次財報電話會議上所討論的那樣，隨著我們在 2024 年及以後繼續在合格的美國費用和資本化資產上支出，我們預計在整個計劃期間將繼續獲得這些好處。

We delivered operating profit of $187 million for the quarter, which translates into approximately 12.1% operating margin, above the high end of our guidance range and 560 basis points below the prior year period. First quarter net interest income and other income and expense was $8 million and we incurred a tax expense of $21 million in the quarter.

本季度，我們實現了 1.87 億美元的營業利潤，相當於約 12.1% 的營業利潤率，高於我們預期範圍的高位，比去年同期低 560 個基點。第一季的淨利息收入和其他收入和支出為 800 萬美元，本季我們的稅費為 2,100 萬美元。

We reported first quarter net income of $174 million, a decrease of approximately $116 million from the year ago period. As a result, we reported diluted earnings of $0.31 per share for the first quarter, which was above the high end of our guidance range.

我們報告第一季淨收入為 1.74 億美元，較去年同期減少約 1.16 億美元。因此，我們報告第一季每股攤薄收益為 0.31 美元，高於我們預期範圍的高點。

Let me now provide some key balance sheet and cash flow metrics. Cash flow from operations for the first quarter was $488 million. CapEx for the quarter was $227 million or roughly 15% of revenue. Free cash flow for the quarter, which we define as net cash provided by operating activities, plus the proceeds from government grants related to capital expenditure, less purchases of property, plant and equipment and intangible assets, as set out on the statement of cash flows, was $261 million. At the end of the first quarter, our combined total of cash, cash equivalents and marketable securities stood at approximately $4.164 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指標。第一季經營活動現金流為4.88億美元。本季的資本支出為 2.27 億美元，約佔營收的 15%。本季的自由現金流為 2.61 億美元，我們將其定義為經營活動提供的淨現金，加上與資本支出相關的政府補助所得，減去現金流量表所列的物業、廠房和設備以及無形資產的購買額。截至第一季末，我們的現金、現金等價物及有價證券總額約為 41.64 億美元。我們還有 10 億美元的循環信貸額度，尚未動用。

Next, let me provide you with our outlook for the second quarter of 2024. We expect total GF revenue to be between $1.59 billion and $1.64 billion. Of this, we expect non-wafer revenue to be approximately 10% of total revenue. We expect gross profit to be between $382 million and $426 million.

接下來，讓我為您提供我們對 2024 年第二季的展望。其中，我們預期非晶圓收入約佔總收入的10%。我們預計毛利在 3.82 億美元至 4.26 億美元之間。

Excluding share-based compensation, but including the benefit related to the advanced manufacturing investment tax credit, for the second quarter, we expect total OpEx to be between $213 million and $233 million. We expect operating profit to be between $149 million and $213 million. At the midpoint of our guidance, we expect share-based compensation to be approximately $50 million, of which roughly $14 million is related to cost of goods sold and approximately $36 million is related to OpEx.

不包括股權激勵，但包括與先進製造業投資稅收抵免相關的收益，我們預計第二季的總營運支出將在 2.13 億美元至 2.33 億美元之間。我們預計營業利潤在 1.49 億美元至 2.13 億美元之間。在我們的指導中點，我們預計股權激勵費用約為 5000 萬美元，其中約 1400 萬美元與銷售成本有關，約 3600 萬美元與營運支出有關。

We expect net interest and other income and expense for the quarter to be between negative $4 million and positive $4 million and tax expense to be between $12 million and $26 million. We expect net income to be between $133 million and $191 million. On a fully diluted share count of approximately 561 million shares, we expect earnings per share for the second quarter to be between $0.24 and $0.34.

我們預計本季的淨利息和其他收入和支出將在負 400 萬美元至正 400 萬美元之間，稅費將在 1,200 萬美元至 2,600 萬美元之間。我們預計淨收入在 1.33 億美元至 1.91 億美元之間。基於約 5.61 億股的完全攤薄股數，我們預計第二季每股收益將在 0.24 美元至 0.34 美元之間。

Consistent with our commentary on our last earnings call, our second quarter guidance reflects the expectation that utilization will be in the low to mid-70s, as some of our core end markets start to emerge from the ongoing inventory correction during the first half of 2024. For the full year 2024, we continue to expect CapEx to be approximately $700 million, and as Tom commented during our last earnings call, we expect this to provide GF an opportunity to focus on delivering free cash flow generation 2 to 3x higher than 2023.

與我們在上次財報電話會議上的評論一致，我們對第二季度的指引反映了這樣的預期：隨著我們的一些核心終端市場在 2024 年上半年開始擺脫持續的庫存調整，利用率將在 70% 左右。 。

In summary, the dedication from our 12,000 employees across the world and their continued efforts to expand our differentiated product offerings in key growth segments while navigating a challenging cyclical backdrop enabled us to achieve first quarter results above the high end of the guidance ranges we provided in our fourth quarter earnings update.

總而言之，我們遍布全球的 12,000 名員工的奉獻精神以及他們在充滿挑戰的周期性背景下不斷努力擴大我們在關鍵增長領域的差異化產品供應，使我們第一季度的業績高於我們在第四季度收益更新中提供的指導範圍的高端。

We remain focused on winning opportunities in critical end markets and partnering with our customers to position them and GF for long-term growth opportunities. With that, let's open the call for Q&A. Operator?

我們將繼續專注於在關鍵終端市場贏得機遇，並與客戶合作，幫助他們和 GF 獲得長期成長機會。現在，讓我們開始問答環節。操作員？

(Operator Instructions) Our first question comes from the line of Vivek Arya of Bank of America Securities.

（操作員指示）我們的第一個問題來自美國銀行證券的 Vivek Arya。

Tom, it seems your trends at GF are kind of bottoming about a quarter before some of the downstream customers in industrial and RF markets. I was hoping you could talk more to that contrast. What is helping you kind of emerge from this roughly a quarter before?

湯姆，看來 GF 的趨勢比工業和射頻市場的一些下游客戶提前一個季度左右觸底。我希望您能多談談這種對比。大約一個季度前，什麼幫助您擺脫了這種困境？

And then you mentioned Q1 could be the bottom and I was hoping you could give us a sense for how you're looking at sequential growth through the rest of the year. Should we assume that Q3, Q4 can kind of grow the way you're growing from Q1 to Q2? Or are there other seasonal or mix factors we should keep in mind?

然後您提到第一季可能是底部，我希望您能讓我們了解您如何看待今年剩餘時間的連續成長。我們是否應該假設 Q3、Q4 能夠像 Q1 到 Q2 一樣成長？或者我們還應該考慮其他季節性或混合因素嗎？

Good morning, Vivek. Let me break the -- so the answer is yes, we're going to continue to grow quarter-on-quarter. Let me give you some context around that. So let's first start with overall inventory. Inventory, we look at it in 2 dimensions: Days of inventory and then absolute dollars of inventory. While in some cases, days of inventory has gotten worse, the actual dollar amounts have come down, and that's an important indicator.

早上好，維韋克。讓我來解釋一下——答案是肯定的，我們將繼續實現季度環比成長。讓我來跟你介紹一下相關背景。因此我們首先從整體庫存開始。我們從兩個維度來看庫存：庫存天數和庫存絕對美元數。雖然在某些情況下，庫存天數變得更糟，但實際金額卻下降了，這是一個重要指標。

And so clearly, as this year rolls on, more and more of this inventory will come down, especially in dollar amount, and we'll get closer to the natural demand. So from a macro level, as long as inventory continues to, to come down in the dollar amount, we're going to get to a point somewhere where we get closer to natural demand, a macro quick topic.

顯然，隨著今年的到來，越來越多的庫存將下降，特別是以美元金額計算，我們將更接近自然需求。因此，從宏觀層面來看，只要庫存繼續以美元金額下降，我們就會達到更接近自然需求的水平，這是一個宏觀快速話題。

Now let's think about GF and we'll about 4 end markets and what that looks like for the balance of the year. We'll start with our comms infrastructure and data center. In our prepared remarks, we talked about that level of revenue is roughly going to be flat as we look forward over the coming quarters. So we have CID, flat.

現在讓我們考慮一下 GF，我們將討論 4 個終端市場以及它們在今年餘下的時間內的情況。我們將從通訊基礎設施和資料中心開始。在我們準備好的評論中，我們談到展望未來幾個季度，收入水準大致將保持穩定。因此我們有 CID，平坦的。

We go next to our home and industrial IoT. The levels we had in Q1 represent more or less flat for at least 1 to 2 quarters with the opportunity back-tied to that macro inventory situation for it to become growth for us in the back end of this year.

我們接下來將討論家庭和工業物聯網。 我們在第一季的水平至少在接下來的一到兩個季度內基本持平，但有機會與宏觀庫存狀況掛鉤，並在今年年底實現增長。

And then we have auto and smart mobile devices. There's a lot of talk about inventory in automotive growing. If you think about GF, last year was a really big ramp year for us, where some of our design wins that were years in the making really started to ramp. So we didn't have a lot of time for those key products to build inventory in the channel, right? And as we said in the first -- in our first quarter, our previous call, we talked about automotive is going to have meaningful growth this year for us and we still see that. So there's automotive is growth as we go sequentially quarter-on-quarter.

然後我們有汽車和智慧移動設備。關於汽車庫存成長的討論很多。如果您想一想 GF，就會知道去年對我們來說是真正重要的成長年，我們多年來累積的一些設計成果真正開始獲得成長。 所以我們沒有太多時間在通路中為這些關鍵產品建立庫存，對嗎？正如我們在第一季的電話會議上所說的那樣，我們談到汽車產業今年將實現有意義的成長，我們仍然看到這一點。因此，隨著季度環比成長，汽車銷量呈成長趨勢。

And then the last is smart mobile devices. Look, we see -- a bunch of our customers have seen and you've heard during earnings seasons, that this is a -- handsets up low, low single digits this year, with a disproportionate amount of that growth coming in premium-tier smartphones, where we play. So there's the opportunity for growth again on a sequential basis for our company. And if you think about it, automotive, smart model devices, 60-plus percent of our revenue in Q1, that's where our growth is coming from.

最後是智慧型移動設備。你看，我們看到——我們的許多客戶已經看到，而且你們在收益季節也聽過，今年手機銷量增長很慢，個位數較低，而其中大部分增長來自我們主打的高端智慧型手機。因此，我們公司再次有機會實現連續成長。如果你仔細想想，汽車、智慧模型設備占我們第一季營收的 60% 以上，這就是我們的成長來源。

And so this gives us the confidence to really feel solid about Q1 being the low point of revenue and then growth coming from there. The real question is back to the macro economy, how much growth will there be? Will it be the kind of growth we all want to write home about? Or is it going to be muted growth? But again, Q1 is the low point for us. Any follow-up questions?

因此，這讓我們有信心確信第一季是營收的低點，隨後將出現成長。真正的問題又回到宏觀經濟上，會有多少成長？這是否會成為我們都想大書特書的成長？或者說將會呈現緩慢成長？但同樣，第一季對我們來說仍是低潮。還有其他後續問題嗎？

Yes. Thank you, Tom. So for my follow-up, maybe one on gross margins. How much did Q1 gross margins benefit from some of the restructuring and underutilization payments? How much is that effect in your Q2 outlook? And then how are you feeling about the shape of gross margins from here, given all the pricing and mix trends? So let's say if GF does conceptually grow roughly in this range, in Q3 and Q4, how should we think about the shape of gross margins for the rest of the year?

是的。謝謝你，湯姆。因此，對於我的後續問題，可能有一個關於毛利率的問題。第一季的毛利率因部分重組和未充分利用付款而受益多少？這對您對第二季的展望有多大影響？那麼，考慮到所有的定價和組合趨勢，您對目前的毛利率狀況有何看法？那麼，假設 GF 在第三季和第四季確實在這個範圍內概念性地成長，我們應該如何看待今年剩餘時間的毛利率形態？

Yes, I'm going to pass it to John, but I think you're on an important point about sometimes there's timing in some of these events. And so the precision around -- tight precision around gross margin has something -- a lot to do about timing. But John, I want to let you do that.

是的，我會把它傳給約翰，但我認為你提到了一個重要觀點，有時這些事件中的一些有時間安排。因此，毛利率的精確度與時機有很大關係。但是約翰，我想讓你這樣做。

Yes. This is John. So we had a business plan at the beginning of the year, of course, which formed the foundation of our first quarter guidance. And as Tom was just indicating, timing can vary on business outcomes. And we saw some favorability in Q1 that helped our gross margins. So we're pleased with that. The customer volume adjustment factor was also at play there. We did comprehend that in our guidance. The outcomes there were a bit better than we had anticipated.

是的。這是約翰。因此，我們當然在年初制定了商業計劃，這構成了我們第一季指引的基礎。正如湯姆剛才所說，時間可能會因業務成果的不同而改變。我們在第一季看到了一些有利因素，這對我們的毛利率有幫助。我們對此感到很高興。顧客數量調整因素也發揮了作用。我們在指導中確實理解了這一點。結果比我們預期的要好一些。

So it's really a result of those 2 factors, Vivek, with driving the gross margin outcome for first quarter. As we look ahead into second quarter, similar dynamics at work. There are some customer payment adjustments planned in Q2, albeit not at the level of Q1. And that's starting to come in as we're settling through various customer volume discussions that we're having constructively with our customers to address business conditions and move ahead.

所以，Vivek，這實際上是這兩個因素共同作用的結果，推動了第一季的毛利率。展望第二季度，我們發現類似的情況正在發生。儘管不如第一季那麼高，但第二季計劃進行一些客戶付款調整。隨著我們與客戶就各種客戶量進行建設性討論以解決業務狀況並向前發展，這一點開始顯現。

I will note that the guidance for Q2 is 100 basis points above the guidance for Q1. And just a reminder, the single biggest factor affecting our gross margin is factory utilization. And a good rule of thumb is that every 5 points of utilization influences gross margin by roughly 200 basis points. So as one would expect, as loadings can pick up through the course of growth onward, we would expect improvement in gross margin over time here.

我要指出的是，第二季的指引比第一季的指引高出 100 個基點。需要提醒的是，影響我們毛利率的最大因素是工廠利用率。一個好的經驗法則是，每 5 個使用率點都會影響毛利率約 200 個基點。因此，正如人們所預料的那樣，隨著負載在成長過程中逐漸增加，我們預計毛利率會隨著時間的推移而提高。

Our next question comes from the line of Chris Caso of Wolfe Research.

我們的下一個問題來自 Wolfe Research 的 Chris Caso。

Good morning. I guess first question is regarding pricing. In your prepared remarks, you gave some indication of where you thought pricing would be for the year. But I guess if you could expand on that a little bit, because we have heard of some of the Tier 2 foundries being a little more aggressive on pricing as the utilization comes down. And specifically for new business that you're signing outside of the existing LTAs that have been kind of helping your pricing, where has the pricing been for new contracts that you're signing today?

早安.我想第一個問題是關於定價。在您準備好的發言中，您已經表明了您認為今年的定價水準。但我想如果你可以稍微擴展一下這一點，因為我們聽說隨著利用率下降，一些二級代工廠在定價方面會更積極一些。具體來說，對於您在現有長期協議之外簽署的新業務，這些協議對您的定價有所幫助，您今天簽署的新合約的定價是多少？

Yes. So consistent with our prepared remarks, a lot of what you'll see in our ASP is dominated by what the particular mix is for that quarter. So year-on-year, we talked about being down 6%, but all of 2024, we see a normalizing pricing flat year-on-year, '24 to '23. What that means is, one, the pricing environment remains constructive, and I don't think we're telling -- saying anything new here. You heard that from our peer foundries or competitors on their earnings call, that they see the same environment.

是的。因此，與我們的準備好的評論一致，您在我們的 ASP 中看到的許多內容都取決於該季度的具體組合。因此，我們談到了同比下降 6%，但在整個 2024 年，我們看到價格將同比持平（從 24 年到 23 年）。這意味著，首先，定價環境仍然具有建設性，而且我認為我們在這裡沒有說任何新的東西。您可以從我們的同行代工廠或競爭對手的財報電話會議上了解到，他們看到了同樣的環境。

The second thing is a big fraction of our revenue is single source business. And so you really can do is service true demand. There's no elasticity in pricing. So more price doesn't give more opportunity. And so constructive environment, differentiated business, keeps the pricing, we believe, flat year-on-year 2024 to 2023. Changes quarter-to-quarter mostly mix related. John, would you add anything to add?

第二件事是，我們的收入很大一部分來自單一來源業務。因此你真正能做的就是滿足真正的需求。定價沒有彈性。因此，更高的價格並不會提供更多的機會。因此，我們認為，建設性的環境和差異化的業務將使 2024 年至 2023 年的價格與去年同期持平。約翰，你還有什麼要補充的嗎？

Yes, I would. Chris, I think it's important to not conflate absolute ASP with profitability as well. In other words, just because our products may have a higher ASP doesn't necessarily mean it would have higher gross profit. Obviously, it affects wafer account and top line. I just wanted to make that point.

是的，我會的。克里斯，我認為不要將絕對 ASP 與盈利能力混為一談，這一點很重要。換句話說，我們的產品可能有更高的平均售價並不一定意味著它會有更高的毛利。顯然，這會影響晶圓帳戶和營業收入。我只是想說明這一點。

Did you have a follow-up, Chris?

克里斯，你有後續消息嗎？

I do. If I could come back to your earlier comments on gross margins as well. And just more specifically, presumably, if revenue continues to grow during the year, some of these volume adjustments will continue to come down. What does that mean for the pace of gross margins as you go into the second half and into '25? Just the improvement in utilization, will that be enough to offset some of the reduced volume adjustments, presumably as that happens and gives you an increase in gross margin profile as we go through the year?

我願意。如果我也可以回顧一下您之前對毛利率的評論。更具體地說，如果年內收入持續成長，那麼一些數量調整將會繼續下降。這對於進入下半年和25年的毛利率速度意味著什麼？僅僅是利用率的提高，是否足以抵銷部分產量調整的減少，大概當這種情況發生時，會在全年帶來毛利率的增加？

Yes, Chris, this is John again. So I would call it modest and stable, in a stable environment for gross margin in light of those dynamics. Yes, those are -- those are a put and a take around how that's all playing out. The flip side to the customer volume adjustment economics is that that's really in lieu of what would have otherwise been there as far as wafer shipments and better utilization. So I mean that's the purpose of those economics. So they are kind of offsetting one another. You can think of it that way. But the long and short of it, as we can get to higher levels of utilization, that will be the large driver over time.

是的，克里斯，我又是約翰。因此，考慮到這些動態，我認為毛利率處於適度且穩定的環境。是的，這些都是——這些都是關於這一切如何發生的結果。客戶產量調整經濟學的另一面是，這實際上取代了晶圓出貨量和更好的利用率。所以我的意思是這就是這些經濟學的目的。因此它們在某種程度上是互相抵消的。你可以這樣想。但總而言之，隨著我們能夠達到更高的利用率，這將成為長期的強大推動力。

Look, and we've also, Chris, taken a lot of structural cost out. We've used -- leveraged this downturn to hold the line to become more and more efficient. And we see the opportunity for every dollar of revenue, as we start to get back into growth, having a higher degree of flow-through than any dollar we have today. And so a lot of the things we've been able to do as a business weathering this prolonged downturn is positioning us structurally to be a better company as growth returns.

你看，克里斯，我們也削減了大量結構成本。我們利用這次經濟衰退來維持效率。隨著我們開始恢復成長，我們看到每一美元的收入都蘊藏著機會，其流通程度比今天任何一美元都要高。因此，作為一家度過長期低迷期的企業，我們所做的許多事情都使我們在結構上處於有利地位，從而隨著成長的恢復成為更好的公司。

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

我們的下一個問題來自摩根大通的 Harlan Sur。

Good morning. Nice job to the team on the quarterly execution. December quarter, you guys had $79 million of this high gross margin sort of customer utilization and restructuring fees. It was $82 million in the March quarter. So it looks like core product gross margins were about 22%. Is that fair?

早安.團隊在季度執行方面表現出色。 12 月季度，你們獲得了 7,900 萬美元的高毛利率，包括客戶利用率和重組費用。 3 月季度的數字為 8,200 萬美元。因此看起來核心產品的毛利率約為22％。這樣公平嗎？

And you said on the utilization fees would be lower in Q2. Can you just quantify, John, is that $50 million, $60 million, $70 million? And then given your fab cycle times, your wafer starts this quarter are shipments in the second half, right, which typically is seasonally stronger, especially for your smart mobile customers. So I would have assumed utilizations would have been up in the June quarter, but it sounds like they're staying flattish. So why is that and how do you see utilizations trending for the remainder of the year?

您說過第二季的使用費會更低。約翰，您能量化一下嗎，是 5000 萬美元、6000 萬美元還是 7000 萬美元？然後考慮到你們的晶圓廠週期時間，你們本季開始的晶圓出貨量是在下半年，這通常是季節性的，特別是對於你們的智慧型手機客戶來說。因此，我原本認為 6 月季度的利用率會上升，但聽起來利用率似乎保持穩定。那麼，為什麼會出現這種情況？

Yes, Harlan. So yes, we didn't specify the level of customer volume adjustment in Q2. We'll have to see how it plays out. There's a few open items that we're continuing to address in that -- in that regard. As we work through the balance of the year, we'll see how the second half ramps.

是的，哈蘭。是的，我們沒有指定第二季的客戶量調整水準。我們將拭目以待事情將如何發展。在這方面，我們還在繼續解決一些未解決的問題。當我們完成今年的平衡工作時，我們將看到下半年的情況如何。

Clearly, if we can see a more robust second half ramp, and there is some seasonality. As Tom indicated, a lot of that is just around the rate and pace of the recovery of the global economy and inventory drawdown and improvement with our customers. But those are -- those are the signs we're looking for to see our loadings come up, see the utilization come up. And again, it's -- you can look at it that one is an offset or it's additional gross profit from customer volume adjustments or really, the way we think about it, it's really in lieu of what would have otherwise been higher utilization.

顯然，如果我們看到下半年成長更加強勁，那麼就會存在一些季節性。 正如湯姆所指出的，這在很大程度上取決於全球經濟復甦的速度和步伐以及我們客戶的庫存減少和改善。但這些都是我們正在尋找的跡象，以查看我們的負載是否上升，查看利用率是否上升。再說一次，你可以把它看作是一種抵消，或者是來自客戶數量調整的額外毛利，或者實際上，按照我們的想法，它實際上是替代了原本更高的利用率。

Yes, so as one goes down, because the revenue will be going up in the natural way.

是的，隨著人數減少，收入自然會上升。

Tom, you took us through some of the dynamics around sort of diversifying the technology mix for Malta, Fab 8. It's a very smart strategy, right, you talk about 40-nanometer embedded MCU, RF SOI, fully depleted SOI capabilities. And even on the mainstream 12-nanometer FinFET capacity, right, mixing in new customers and applications as older programs phase out. Maybe you can just expand on this a little bit, maybe time lines on phasing in new technologies and success in backfilling the FinFET technology.

湯姆，您向我們介紹了馬耳他 Fab 8 技術組合多樣化的一些動態。甚至在主流的 12 奈米 FinFET 容量上，隨著舊專案的逐步淘汰，也會加入新的客戶和應用程式。也許您可以稍微擴展一下這一點，也許是逐步引入新技術和成功填補 FinFET 技術的時間軸。

Yes, Harlan, first of all, thanks for this question, because I think we've not done this topic justice. I used to watch this show with my son growing up, MythBusters, and I think there's a lot of myths around what we do and don't do in Fab 8 and what diversification looks like.

是的，哈蘭，首先，感謝您的提問，因為我認為我們對這個主題還不夠公正。我小時候經常和兒子一起看《流言終結者》 (MythBusters) 這個節目，我認為裡面有很多關於我們在 Fab 8 做什麼和不做什麼以及多樣化是什麼樣子的迷思。

So let's take Fab 8 and think about it in 2 dimensions of diversification, the first being end markets we serve with our 12-nanometer platform. And then we'll talk about diversification for the fab and the technology portfolio we will bring there in the customers, what that means to GF and also to our global footprint.

因此，讓我們以 Fab 8 為例，從兩個多樣化維度來思考它，第一個維度是我們透過 12 奈米平台服務的終端市場。然後，我們將討論晶圓廠的多樣化以及我們將為客戶帶來的技術組合，這對 GF 以及我們的全球影響力意味著什麼。

So think about 4 end markets, our comms infrastructure data center, auto, IoT and smart mobile devices. The baseload, right, is data center. And that is almost equivalent to what we have as automotive load in the fab.

所以考慮一下四個終端市場，我們的通訊基礎設施資料中心、汽車、物聯網和智慧行動裝置。對的，基載是資料中心。這幾乎與我們工廠中的汽車負載相當。

Next up is IoT, which is 1.5x more load than either the automotive -- I'm sorry, either the automotive or data center. And then smart mobile devices is 1.5x more than the other 3 end markets combined. So there's a broad diversification. So when we think of data center clients moving to single-digit nanometer, that represents a fraction of what we do in Fab 8 on 12-nanometer. So we need to dispel the fact that Fab 8 means data center, data center business goes down, we're going to struggle.

接下來是物聯網，它的負載比汽車（對不起，無論是汽車還是資料中心）高 1.5 倍。智慧型行動裝置的規模是其他三個終端市場總規模的 1.5 倍。因此存在著廣泛的多樣化。因此，當我們想到資料中心客戶轉向個位數奈米時，這只代表了我們在 Fab 8 在 12 奈米上所做工作的一小部分。所以我們需要消除這樣的事實：Fab 8 意味著資料中心，如果資料中心業務下滑，我們就會陷入困境。

Now diversification, you pointed out, you said it better than I did. We have 12-nanometer technology plus the features we're adding on that, serves like we said, smart mobile devices, 1.5x more than any other combination of all our other markets. We have 22FDX that's being currently qualified and brought up, 28-nanometer high-voltage, 40-nanometer embedded memory for automotive, 45 RF SOI, silicon photonics.

現在，您指出了多樣化，您說得比我好。我們擁有 12 奈米技術，加上我們在此基礎上添加的功能，就像我們所說的那樣，智慧型行動裝置的功能比我們所有其他市場任何其他組合的功能高出 1.5 倍。我們目前正在認證和開發 22FDX、28 奈米高壓、40 奈米汽車嵌入式記憶體、45 RF SOI、矽光子學。

This diversification will play out for us in qualification this year, customers starting to tape out towards the end of this year into next year and then ramping in 2026 to bring this full diversification. Now why is diversification important? And this is a point that I think we all need to understand. Having a global footprint means more than just having a location where you can produce one thing.

這種多樣化將在今年的資格認證中發揮作用，客戶將在今年年底到明年開始推出產品，然後在 2026 年加大力度，實現全面多樣化。那為什麼多樣化很重要？我認為我們大家都需要理解這一點。擁有全球影響力不僅意味著擁有一個可以生產某種產品的地點。

I call it a mailing address, a fab in any location that can make one technology is a mailing address. Because the by and large, most of your customers' demand can't be served there. What GF has done and we've done over the last decade and accelerated in the last 5 to 6 years, was making sure every one of our global sites had diversification, so our customers can source globally and locally. It's great to have a global footprint, but it has to have a broad range of technologies.

我把它叫做郵寄地址，任何能夠生產一項技術的工廠都是郵寄地址。因為總的來說，您的大多數客戶的需求無法在那裡滿足。 GF 所做的以及我們在過去十年中所做的，以及在過去五、六年間加速推進的，就是確保我們全球的每個站點都具有多樣化，以便我們的客戶能夠進行全球和本地採購。擁有全球影響力固然很好，但必須擁有廣泛的技術。

When we complete this journey with Fab 8 and its diversification, we'll have Singapore, European Union in GF, with a lot of overlap in the technology platforms. So it's important for us as a strategic value of our global footprint, to diversify Fab 8. And clearly, it's important for diversification to make sure our Fab 8 facility stays full.

當我們完成 Fab 8 及其多元化的旅程後，我們將在 GF 中擁有新加坡、歐盟，並且在技術平台上有許多重疊。因此，作為我們全球佈局的戰略價值，實現 Fab 8 的多元化對我們來說非常重要。

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

我們的下一個問題來自摩根士丹利的喬·摩爾 (Joe Moore)。

Great, thank you. So a little over a year ago, you guys had a partnership with an automotive OEM with General Motors. Before that, you had some discussions with Ford. We found this really interesting. We haven't really seen OEMs work with foundries more directly like that.

太好了，謝謝。大約一年多前，你們與通用汽車的一家汽車原始設備製造商建立了合作關係。在此之前，您與福特進行了一些討論。我們發現這真的很有趣。我們還沒有真正看到 OEM 與代工廠如此直接地合作。

Those automotive shortages are behind us. So I wonder if you could kind of talk to the commitment, the focus that those guys have on geographic diversification of their foundry and how that might help you.

汽車短缺的現像已經成為過去。所以我想知道您是否可以談談這些傢伙對其代工廠地理多樣化的承諾和關注點，以及這對您有何幫助。

So maybe I can take that one. This is Niels Anderskouv. I'd like to take a little bit of a background on the LTA in general. And remember that the LTA is still a relatively new feature within the foundry model, but I want to emphasize that they have been a key feature of our business since 2021 and really have enabled us to invest more than $7 billion into new capacity to support our customers.

所以也許我可以選擇那個。這是 Niels Anderskouv。我想簡單介紹一下 LTA 的整體背景。請記住，LTA 在代工模式中仍然是一個相對較新的功能，但我想強調的是，自 2021 年以來，它們一直是我們業務的關鍵功能，並且確實使我們能夠投資超過 70 億美元用於新產能以支持我們的客戶。

So you'll recollect from prior earning calls, earnings calls, that we've entered into more than 40 of these LTAs, including the ones you just mentioned, and with over $30 billion of lifetime revenue coming out of those for the LTAs. Fast forward to the end of 2023, and you may recall, we had approximately 2/3 of that lifetime revenue remaining.

您可能從先前的財報電話會議中記得，我們​​已經簽訂了 40 多個長期協議，包括您剛才提到的那些，這些協議為我們帶來了超過 300 億美元的終身收入。快進到 2023 年底，您可能還記得，我們​​還剩下大約 2/3 的終身收入。

And then again, with the announcement of a significant LTA extension in January this year with Infineon, that continues to be a very, very important part of our future business model. So the [main] point here is that the LTAs have benefited both GF and our customers through a number of lenses: Number one, they provided a level of certainty for both supply and demand; two, they demonstrate durability in the application to all end markets we serve; and three, they provide greater visibility and profitability to our business through a challenging market backdrop.

此外，隨著今年 1 月與英飛凌宣布延長重要的 LTA，這將繼續成為我們未來商業模式中非常非常重要的一部分。因此，這裡的 [主要] 觀點是，長期協議從多個角度使 GF 和我們的客戶都受益：首先，它們為供需雙方提供了一定程度的確定性；二、它們在我們所服務的所有終端市場應用中都表現出了耐用性；第三，它們在充滿挑戰的市場背景下為我們的業務提供了更高的可見度和獲利能力。

So clearly, our customers are essential to this and so is the longevity of our relationships with our customers. So notwithstanding some of the recent discussions with our customers on their near-term volume adjustments, it's fair to say that LTAs remain a very important feature of our business model. So if I take those and comment a little bit to the current quarter, take Q1 here, for example. Clearly, given the inventory levels across certain end markets, the rate and pace of entering new LTAs has slowed as our customers are working through the inventory in the channel. But by no means are LTAs less important to us or our customers, as evident by the fact that we in Q1 again announced the extension of one of our largest LTAs with Infineon. And that one was to support the long-term supply requirements of automotive-grade 40-nanometer microcontrollers.

顯然，我們的客戶對此至關重要，我們與客戶的關係的長久性也同樣重要。因此，儘管我們最近與客戶就近期產量調整進行了一些討論，但公平地說，長期協議仍然是我們商業模式的一個非常重要的特徵。因此，如果我利用這些並對當前季度發表一些評論，就以這裡的第一季為例。顯然，考慮到某些終端市場的庫存水平，由於我們的客戶正在處理通路中的庫存，簽訂新長期協議的速度和步伐已經放緩。但長期協議對我們或我們的客戶來說絕不是不那麼重要，這一點從我們在第一季再次宣布與英飛凌延長我們最大的長期協議之一就可以看出。這個專案是為了支援汽車級 40 奈米微控制器的長期供應需求。

So as you heard on the call today, there have been a couple instances where we work with our customers on adjusting their near-term volume requirements. And I would highlight that these have been highly constructive conversations and we work together on finding a balanced outcome based on the common features of our LTAs, namely fixed price, fixed volume and fixed duration.

正如您在今天的電話會議上聽到的那樣，我們曾與客戶合作調整過他們的近期產量需求。我想強調的是，這些都是非常有建設性的對話，我們共同努力，在長期協議的共同特點，即固定價格、固定數量和固定期限的基礎上，找到一個平衡的結果。

So these are the key features that we've been able to flex in order to preserve these relationships and strike the right long-term balance with our customers. So what's the outlook? Well, what's most encouraging is actually how well our customers have responded to these discussions.

因此，這些是我們能夠靈活運用的關鍵特徵，以便維護這些關係並與我們的客戶達成正確的長期平衡。那麼前景如何？嗯，實際上最令人鼓舞的是我們的客戶對這些討論的回應如何很好。

For example, in one instance, we mutually agreed on terminating an agreement, but that was primarily to align with our customer's long-term supplier requirements. And just to demonstrate the resilience of the relationship, the very next week, that same customer taped out a new design with us.

例如，有一次，我們雙方同意終止一項協議，但這主要是為了符合我們客戶的長期供應商要求。為了證明這種合作關係的韌性，第二週，同一位客戶就與我們一起推出了新的設計。

So what you're hearing from us today is that we continue to believe the LTA framework offers a mutual -- mutually beneficial arrangement for both us and our customers to partner together over the long term.

所以您今天從我們這裡聽到的是，我們仍然相信 LTA 框架為我們和我們的客戶提供長期合作的互惠互利的安排。

And looking forward, I would expect to see the LTAs remaining very key to serve our customers across various end markets, automotive included, and also including the OEMs. So I think you should expect to see more on that front. But however, it is reasonable to assume that the terms and duration of the agreements will vary according to the end markets and what we are supporting.

展望未來，我希望看到 LTA 繼續發揮關鍵作用，為包括汽車和原始設備製造商在內的各個終端市場客戶提供服務。因此我認為你應該會看到更多這方面的資訊。但是，我們可以合理地假設，協議的條款和期限將根據終端市場和我們所支持的內容而有所不同。

Great. That's helpful. And I guess to follow up on that, there's obviously one reason to do LTAs and those types of relationships is because of tactical supply concerns, but there's also the sort of bigger picture OEM concern that maybe we're too reliant on certain geographies. So just like how strategic do you think those relationships can be?

偉大的。這很有幫助。我想進一步說的是，簽訂長期協議和建立此類關係顯然有一個原因，是出於戰術供應方面的考慮，但也有更大的原始設備製造商 (OEM) 擔憂，即我們可能過於依賴某些地區。那麼您認為這些關係具有多大的戰略意義呢？

And I guess I'm just trying to make sure people don't, with the [shortage space], people sort of forget about some of the reasons that they came to you guys in the first place. Are you still having those strategic discussions in terms of bigger picture geographic diversification?

而且我想我只是想確保人們不會因為空間短缺而忘記最初來找你們的一些原因。你們是否還在就更大的地理多樣化進行那些戰略討論？

Joe, I think you're hitting on a really important point. One of the things that we learned is not all end markets -- this is back to the -- there's no such thing as macro in our world anymore. There's no such thing as just a semiconductor industry. There's a lot of different components to it that have different behaviors. And I want to go back to the kind of discussions that we're having with auto players, why that's different with some of the other end markets.

喬，我認為你指出了一個非常重要的觀點。我們學到的一件事是，並非所有終端市場——這又回到了——我們的世界不再存在宏觀經濟了。並不存在所謂的半導體產業。它有很多不同的元件，它們有不同的行為。我想回到我們與汽車製造商的討論上，為什麼這與其他一些終端市場有所不同。

So what's unique about auto, these are long-term supply agreements. When they qualify a part, they're going to use it for 5 to 10 years. So having long-term visibility and long-term certainty on supply pricing is really important for automotive makers because they're making commitments for a long time. The discussions we started with them continue, but they continue in a different fashion.

汽車的獨特之處在於，這些都是長期供應協議。當他們確認某個零件合格後，他們會使用它5到10年。因此，對於汽車製造商來說，擁有長期的可見性和長期的供應定價確定性非常重要，因為他們必須做出長期承諾。我們與他們開始的討論仍在繼續，但方式不同。

Since we don't design and they don't design, there's a third party of one of our customers in the middle, and we sit down, collectively talk about what we're going to do to make sure they have the level of certainty and durability and supply for their future. In more markets that have much quicker product life cycles, what we're finding is the LTA durations don't need to be as long. It doesn't mean customers don't want LTAs, they just want them on a much shorter duration so they can be nimble and flexible.

由於我們不設計，他們也不設計，所以我們的一個客戶作為第三方介於兩者之間，我們坐下來，共同討論我們要做什麼，以確保他們在未來擁有一定的確定性、耐用性和供應。在更多產品生命週期較快的市場中，我們發現 LTA 持續時間不需要那麼長。這並不意味著客戶不想要長期協議，他們只是希望協議期限更短，以便能夠靈活應對。

They still need, like all of us, certainty that when they need their product, they can have it. And so what we're all learning as an industry is to make sure that the terms and conditions of these LTAs reflect the uniqueness of each market. Long-term markets or segments that last a long time, want long-term certainty.

像我們所有人一樣，他們仍然需要確定性，即當他們需要他們的產品時，他們能夠得到它。因此，作為一個行業，我們正在學習的是確保這些長期協議的條款和條件能夠反映每個市場的獨特性。長期市場或持續很長時間的領域需要長期的確定性。

In markets that have fast product transitions, they want near-term certainty, but recognizing commitments for the longer term will have to be renegotiated every year. And I think that's the one learning we're all getting out of this. And at the end of all of this for you, you started the question with how are discussions going with the auto -- the automotive OEMs?

在產品轉型快速的市場中，他們希望獲得短期的確定性，但承認長期承諾必須每年重新協商。我想這就是我們從這件事中得到的唯一教訓。在回答所有這些問題之後，您開始問與汽車—汽車原始設備製造商的討論進展如何？

We continually sit down and make sure we're aligning technology road maps, first and foremost, that we're brought into conversations with our customers so that we can make sure we're all serving the same purposes. And I think there's another entrant into this marketplace, the Tier 1s are also starting to think about doing their own designs. And we need to and continue to partner with them as well.

我們不斷地坐下來，確保我們的技術路線圖保持一致，首先，我們要與客戶進行對話，這樣我們才能確保我們都服務於相同的目的。我認為這個市場還有另一個進入者，一級供應商也開始考慮進行自己的設計。我們也需要並將繼續與他們合作。

Yes, maybe I can just comment on the long life cycle. This is an essential part of our strategy from a technology standpoint. Essential chip technology is all about supporting long life cycles. And we are seeing continued momentum building across the automotive space. You just heard us talk about 17% of our revenue here in Q1 came from automotive and it continues to be a strong growth driver for us.

是的，也許我可以評論一下長生命週期。從技術角度來看，這是我們策略的重要組成部分。基本晶片技術都是為了支援長生命週期。我們看到汽車領域的發展動能持續增強。您剛剛聽到我們說，第一季我們 17% 的收入來自汽車業務，這繼續成為我們強勁的成長動力。

So strong fit to the strategy. I also want to mention, Tom alluded a little bit to it earlier, that our strategy is that we will have -- we will qualify all our process nodes for automotive. And when you get back to what Tom just discussed about Fab 8, automotive is going to become a very, very integral factory for our automotive strategy, and that's something that's been very well perceived by the OEMs as well, having a U.S. supply within that space.

非常符合該策略。我還想提一下，湯姆之前稍微提到過，我們的策略是，我們將使所有工藝節點都符合汽車標準。回到湯姆剛才討論的 Fab 8，汽車工廠將成為我們汽車戰略中非常重要的工廠，而這一點也得到了 OEM 的充分認可，並在美國擁有供應領域。

Our next question comes from the line of Chris Danely of Citi.

我們的下一個問題來自花旗的 Chris Danely。

I guess just a question on CHIPS Act and the money there. So $1.5 billion, that's great, but that's -- I think that's over a year's worth of CapEx. So you're getting all this money, but utilization rates are in the 70s and you have plenty of inventory and we're sitting here coming out of a downturn. So I guess how do we allocate all of that capacity and not have like some sort of overcapacity or some sort of pricing problem? How is that going to work?

我想這只是一個有關 CHIPS 法案及其資金的問題。所以 15 億美元，這很棒，但 — — 我認為這超過了一年的資本支出。所以你得到了所有這些錢，但利用率卻在 70% 左右，而且你有大量庫存，而我們正走出經濟低迷。所以我想問我們該如何分配所有的產能，避免產能過剩或定價問題呢？這將如何進行？

Yes, Chris, we don't build capacity ahead of its need. There's nothing worse than that, to overshoot the target. And there's nothing worse than government programs with the right intention to get diversification and resiliency in supply chain, to have companies get ahead of themselves and build empty factories.

是的，克里斯，我們不會提前建造產能。沒有什麼比超出目標更糟糕的了。沒有什麼比政府計畫更糟糕的了，政府計畫的初衷是實現供應鏈的多樣化和彈性，但企業卻過於自負，建造空置的工廠。

And so when I think about our global footprint, our investments going forward, we talked about at the end of this year, we'll have capacity, roughly 3 million wafers a year of output. That's the 300-millimeter equivalent. You could do the math on our ASPs and you can see between wafers and non-wafer revenue, that gets us to a company that's $9 billion to $10 billion in revenue. And you see where we are this year, the $6 billion, $8 billion, $7 billion.

因此，當我考慮我們的全球足跡和未來的投資時，我們在今年年底談到，我們的產能將達到每年約 300 萬片晶圓。這是 300 毫米的等效值。您可以計算我們的 ASP，可以看到晶圓和非晶圓收入之間的差異，這使我們公司的收入達到了 90 億至 100 億美元。你知道我們今年的預算是多少嗎？

So plenty of growth ahead within our current footprint. Now securing your future and the optionality to build capacity is what we're doing with the CHIPS Act in the European Union with the CHIPS Act in the U.S. It's to make sure that we have proper funding so that when we need to invest again, we can and we can do it in the most capital efficient way.

因此，在我們目前的業務範圍內，未來仍有很大發展空間。現在，我們正在透過歐盟的《CHIPS 法案》和美國的《CHIPS 法案》來確保您的未來和建立能力的選擇。

And it really comes back to your belief if you think the industry is done, there's no growth, then you wouldn't need any of this. We happen to believe, like many others, that this industry will double. And it's a question if it does it 6 years, 8 years, but we need to be ready for that growth so that we can answer that for our customers. And we need to do it in the most economic, efficient way, and that's where these government funding partnerships come into play.

這實際上又回到了你的信念上，如果你認為這個行業已經完蛋了，沒有成長，那麼你就不需要這些了。我們和許多其他人一樣，相信這個行業將會翻倍。問題是它是否會持續 6 年或 8 年，但我們需要為這種成長做好準備，以便能夠為我們的客戶解答這個問題。我們需要以最經濟、最有效的方式來實現這一目標，這就是政府資助夥伴關係發揮作用的地方。

And we talk about the CHIPS bill at $1.5 billion. The CHIPS bill will only fund up to roughly 15% of a project. The ITC covers another 25%. So in combination, you're seeing a high mix of government participation in these investments. Sure, the lion's share comes to foundries like GF. But I'm not worried about -- well, I'm certainly not worried about GF putting more capacity on than we need to serve our customers.

我們討論了 15 億美元的 CHIPS 法案。 CHIPS 法案只會為一個項目提供最多約 15% 的資金。 ITC 覆蓋另外 25%。所以，綜合起來，你會看到政府高度參與這些投資。當然，最大份額歸屬於 GF 這樣的代工廠。但我並不擔心——好吧，我當然不擔心 GF 投入的產能會超過我們為客戶提供服務所需的產能。

But I'm not worried about the rest of the EU and U.S. manufacturers overshooting because they'll plan their capacity adds with the true demand for our industry.

但我並不擔心歐盟和美國其他製造商的產能過剩，因為他們會根據我們行業的真實需求來規劃產能的增加。

Thanks for that clarification, Tom. And then my follow-up is on the LTAs and the contracts. Can you let us know what percentage of say, '24 and '25 are covered by LTAs? And in terms of these customer revenue adjustments, is it that they come to you and say, "Hey, we need to renegotiate." And so you say, "If you want to renegotiate, you just have to pay us this money," and is it all 100% gross margin? Just any insight into the machinations of all this.

謝謝你的澄清，湯姆。然後我的後續工作是關注長期協議和合約。您能否告訴我們，比如說，'24 和 '25 年中有多少比例的合約受到 LTA 的覆蓋？就這些客戶收入調整而言，他們是否會來找你說：“嘿，我們需要重新談判。”所以你說，“如果你想重新談判，你只需要付給我們這筆錢”，這都是 100% 的毛利率嗎？只是對所有這一切陰謀的任何洞察。

Yes, Chris, this is John. We have identified how much LTA total value we have, which is approximately $20 billion. And that's disclosed in our 20-F that we recently filed. The specific time domain of that is not called out. That's lifetime revenue, you've got time -- product life cycles that vary by the end market. But that gives you a sense of the coverage level, if you will.

是的，克里斯，這是約翰。我們已經確定了長期協議的總價值，約 200 億美元。這在我們最近提交的 20-F 中披露。其具體時間範圍並未透露。這就是終身收入，你有時間——產品生命週期因最終市場而異。但如果您願意的話，這可以讓您了解覆蓋範圍的水平。

I mean look, the economics may flow in with customer volume adjustments, but the fundamental purpose of these LTAs, as Niels just spelled out, to provide that surety to customers and to give, give the confidence that they'll have the supply in a resilient manner when they need it. So that's really the purpose.

我的意思是，經濟因素可能會隨著客戶數量的調整而變化，但正如尼爾斯剛才所說，這些長期協議的根本目的是為了向客戶提供保證，並讓他們相信，當他們需要時，他們會以有彈性的方式獲得供應。這就是真正的目的。

Our next question comes from the line of Ross Seymore of Deutsche Bank.

我們的下一個問題來自德意志銀行的羅斯·西摩。

Couple questions. The first one is on the node transition risk. I know, Tom, you talked about what's happening in the comm infrastructure and data center segment, but how would you characterize that node transition risk entering this year versus exiting this year? How do we think about that as a headwind over time? And I know you're diversifying away from it as well.

幾個問題。第一個是節點轉型風險。我知道，湯姆，你談到了通訊基礎設施和資料中心領域正在發生的事情，但你如何描述今年進入和今年退出時的節點轉換風險？我們如何看待它隨著時間的推移而產生的不利因素？我也知道你也正在多元化。

Yes, I think, as I said before, how we serve that market, we're pretty much at the low end of that revenue. And the real question is how do we build this back to the business we want it to be, through our technology platforms for power delivery and solving the bandwidth challenges. And so that's the growth opportunity for us back into this end market. We can hold the line of where we are today at that level of revenue that we spoke about.

是的，我認為，正如我之前所說的，我們如何服務該市場，我們的收入幾乎處於低端。真正的問題是我們如何透過我們的電力傳輸技術平台和解決頻寬挑戰，將其重建為我們想要的業務。這是我們重返終端市場的成長機會。我們可以把目前談論的收入水準維持在目前的水準。

Well, I guess as a quick follow-up, is there something beyond that? Do you have a similar problem in smart mobile devices, not just limiting the original question to the comm infrastructure side of things.

好吧，我想快速跟進一下，除此之外還有什麼嗎？您在智慧型行動裝置中是否存在類似的問題，而不僅僅將原始問題限制在通訊基礎架構方面。

I think there's a fundamental element to which single-digit nanometer does and what it doesn't do. If you're able to have an application where it doesn't make a difference that the cost per transistor goes higher, but the power used per transition -- transistor is a premium, then those applications will pay that for that transistor.

我認為個位數奈米能做什麼、不能做什麼有一個基本要素。如果你能夠擁有一個應用程序，其中每個晶體管的成本增加沒有什麼區別，但每個轉換晶體管使用的功率是額外的，那麼這些應用程式將為該晶體管支付費用。

And so that creates a real moat around not wanting to go to single-digit nanometer unless the application actually requires that. And so you're seeing it in data center. You're seeing it in where power is the key metric and minimizing power use. So we think the moat is if this was the old days of Moore's Law, where you've got a lower cost per transistor, right, we'd all have to move.

因此，這形成了一個真正的護城河，除非應用程式確實需要，否則我們不願意將其降至個位數奈米。您可以在資料中心看到它。您會看到，功率是關鍵指標，並且盡量減少功率使用。因此，我們認為，如果這是摩爾定律的舊時代，即每個電晶體的成本更低，那麼我們都必須採取行動。

Now we sit in an area where customers are, are working with us with the expressed intent, save us from having to go to single-digit nanometer and pay more per transistor. And that's what is the barrier and that's why we need to continue to innovate and drive features on our platforms to prevent our customers needing to have to pay more for the products to service the markets they want.

現在，我們處於客戶所在的位置，他們正與我們明確合作，這讓我們不必進入個位數奈米的規模，也不必為每個電晶體支付更高的價格。這就是障礙所在，因此我們需要不斷創新，推動平台功能的發展，以避免我們的客戶需要為產品支付更多費用來服務他們想要的市場。

If I may add to that, we actually -- we're seeing it today on 22FDX. We're seeing several of our customers asking for us to continue to innovate on the process nodes so they can stay on it longer. And we're seeing the early same trend happening on 12-nanometer. In our road maps, we have newer versions of 12-nanometer that gives you a much better power performance ratio out in time. So if you think about the essential chip technology strategy we put in place across the 4 product lines, it really is about extending the life cycles of these process nodes and continue to make sure that they stay competitive so we continue to win new businesses.

如果我可以補充一點的話，我們實際上——我們今天在 22FDX 上看到了它。我們看到有幾位客戶要求我們繼續在製程節點上進行創新，以便他們能夠堅持更久。我們看到同樣的趨勢在 12 奈米上也出現。在我們的路線圖中，我們擁有 12 奈米的更新版本，可以及時為您提供更好的功率性能比。因此，如果您考慮我們在 4 條產品線上實施的基本晶片技術策略，它實際上就是延長這些製程節點的生命週期，並繼續確保它們保持競爭力，以便我們繼續贏得新業務。

And I think the example of smart mobile devices being the biggest end market in 12-nanometer today exactly just illustrates that. It's a great fit to that segment and we'll continue to optimize for it and make it even better.

我認為智慧型行動裝置作為當今 12 奈米最大的終端市場恰好說明了這一點。它非常適合該細分市場，我們將繼續對其進行最佳化，使其變得更好。

Our next question comes from the line of C.J. Muse of Cantor Fitzgerald.

我們的下一個問題來自 Cantor Fitzgerald 的 C.J. Muse。

Good morning. I guess first question on auto, down 16% sequentially. I think it came in a little bit worse than what we were thinking when you initially guided. Curious, maybe what changed in the quarter in terms of product or subsegment? And then I guess as you think about the recovery into June and beyond, what are the key drivers that we should be focused on there?

早安.我想第一個問題是關於汽車的，環比下降了 16%。我認為結果比你最初指導時我們想像的要糟糕一些。好奇，本季在產品或細分市場方面發生了什麼變化？然後我想，當您考慮 6 月及以後的復甦時，我們應該關注哪些關鍵驅動因素？

Look, I think this quarterly seasonality, those things, we don't pay a lot of attention to in this segment given the fact that it's a very long duration. What we're highly confident in is that this is a business that will continue to grow, not only in the out years, but this year, and meaningful growth in the mid- to high-single digits for us in 2024.

看，我認為這個季度季節性，這些東西，我們不會在這個部分投入太多的關注，因為它的持續時間很長。我們非常有信心，這項業務不僅在未來幾年會持續成長，今年也會如此，而且到 2024 年還將實現中高個位數的有意義的成長。

So we see it. We see it in the order book and we see it in our business plans. So I wouldn't read too much into a quarter and quarter down in automotive, especially given last year was a year of over $1 billion, growing from $375 million the year before.

所以我們看到了。我們在訂單簿中看到它，我們也在我們的商業計劃中看到它。因此，我不會對汽車產業季度和季度的下滑進行過多的解讀，尤其是考慮到去年的銷售額超過 10 億美元，而前年的銷售額為 3.75 億美元。

Do you have a follow-up, C.J.?

您還有後續消息嗎，C.J.？

Yes. I guess maybe a question on smart mobile. Maybe kind of similar type of question. You talked about mix shift to premium phones, which benefits you. think you talked about RF front end and display drivers as incremental drivers for you in '24. So is that a business that you think can grow in all of calendar '24? Or is there sufficient inventory challenge that that might be difficult?

是的。我想這可能是關於智慧型手機的問題。也許是類似類型的問題。您談到了向高階手機的混合轉變，這對您有利。認為您在 '24 年談論過 RF 前端和顯示驅動程式作為增量驅動程式。那麼，您認為這項業務能在整個 24 年間成長嗎？或者是否有足夠的庫存挑戰以致於這可能會很困難？

No, we'll -- we believe that's an area that we will grow this year. With content growth, with handset growth, means we can have growth. We're coming off of a Q1 that was already challenged with inventories in the channel. So as inventories bleed out, handset growth happens, we see growth in smart mobile devices for GF this year.

不，我們相信這是我們今年將會成長的領域。隨著內容的成長，隨著手機的成長，意味著我們可以實現成長。我們剛結束了第一季度，面臨通路庫存的挑戰。因此，隨著庫存減少，手機銷量成長，我們預計今年 GF 的智慧型行動裝置銷售將出現成長。

Yes. I think that's a good growth story we have there. Handsets growing, us growing, us having a larger share in premium handsets that we believe that to grow faster. And then on top of that, you're starting to see inventory dollar-wise draining in the space. So yes, we do believe that's going to be a growth market for us this year.

是的。我認為這是我們的一個很好的成長故事。手機數量正在成長，我們也在成長，我們在高階手機中佔有更大的份額，我們相信高階手機的成長速度會更快。除此之外，你開始看到該領域的庫存以美元計算正在減少。所以是的，我們確實相信這將是我們今年的一個成長市場。

Julia, we'll take one last question, thank you.

茱莉亞，我們再回答最後一個問題，謝謝你。

Our final question comes from Mehdi Hosseini of Susquehanna International Group.

我們的最後一個問題來自 Susquehanna International Group 的 Mehdi Hosseini。

Yes. A couple of follow-ups. Tom, just double-clicking on communication. I believe that your comments suggest that the revenues there are expected to grow flattish throughout the year, especially with the migration to nanometer.

是的。一些後續行動。湯姆，只需雙擊通訊即可。我相信您的評論表明那裡的收入預計全年將保持平穩增長，尤其是隨著向納米的遷移。

What I want to better understand is, when do you expect new opportunities like silicon photonics that have been talked about in the downstream, are going to be material to you?

我想更了解的是，您預計下游所討論的矽光子學等新機會何時會對您產生重要影響？

And then one follow-up question for John. How should we think about D&A and OpEx in '24 versus '23?

然後還有另一個問題要問約翰。我們該如何看待24年和23年的D&A和OpEx？

John, go in reverse order (inaudible).

約翰，以相反的順序進行（聽不清楚）。

Yes. Yes. No problem, Mehdi. So D&A, roughly consistent. It's how we see that. We've drawn down our CapEx a fair amount. As we said in our prepared remarks, we see about $700 million as our estimate for the year, which is enabling tremendous growth in free cash flow and we're holding the view that, that can increase to 2x to 3x the free cash flow that we generated in 2023. So that's, that's positive.

是的。是的。沒問題，梅赫迪。因此 D&A 大致一致。這就是我們所看到的情況。我們已大幅削減了資本支出。正如我們在準備好的評論中所說，我們對今年的預期約為 7 億美元，這將推動自由現金流大幅增長，我們認為，這可以增加到 2023 年產生的自由現金流的 2 倍到 3 倍。

As far as OpEx, just a quick reminder that we had a large credit in the fourth quarter related to the advanced investment tax credit. That was coming into SG&A. That was about $50 million of credit in Q4. We've got that more normalized now in the first quarter, but you do see an uptick in OpEx for Q1 related to that as that was a onetime benefit in the fourth quarter of 2023.

就營運支出而言，我想提醒一下，我們在第四季度獲得了一筆與預付投資稅收抵免相關的巨額信貸。這涉及銷售、一般及行政開支。第四季的信貸額度約為 5,000 萬美元。我們在第一季已經使其更加正常化，但您確實看到與此相關的第一季營運支出有所上升，因為這是 2023 年第四季的一次性收益。

So let me maybe address the data center part of the question. So in data center, the 2 major growth vectors that we're seeing is, as you pointed out, silicon photonics and power delivery. So maybe if I start with silicon photonics, where the market is at today is that you're starting to see adoption and products being released in what we term as the pluggable space.

因此，讓我來解答一下該問題的資料中心部分。因此，在資料中心，我們看到的兩個主要成長方向是矽光子學和電力傳輸。因此，如果我從矽光子學開始，那麼今天的市場狀況就是你開始看到在我們稱之為可插拔空間的領域中採用和發布產品。

So these are the pluggable type of silicon photonic devices that you're seeing out there today. Where we're seeing a lot of activity for future growth and maybe more substantial growth is in the co-packaged silicon photonics, where basically you're starting to see silicon photonics becoming a real design consideration for GPUs, NPUs and CPUs, simply to be able to enable the [BaM if] you need to have, not just within the rack, between the racks, but also within and between the processors that sits on the main board. So that's a big growth vector.

這些就是今天我們所看到的可插入式矽光子設備。我們看到很多未來成長的活動，也許更實質的成長是在共封裝矽光子學中，基本上你開始看到矽光子學成為 GPU、NPU 和 CPU 的真正設計考慮因素，只是為了能夠啟用你需要的 [BaM]，不僅僅是在機架內、機架之間，而且還在主機板上的處理器內部和之間。所以這是一個巨大的成長載體。

Obviously, not something that happens overnight. These are big infrastructure changes. So you should expect that, that will probably take a couple of years before it really materialize, but starting to see some early momentum on that front.

顯然，這不是一朝一夕就能發生的事。這些都是重大的基礎設施變革。所以你應該預料到，這可能需要幾年時間才能真正實現，但現在我們已經開始看到這方面的一些早期動能。

Power delivery, very exciting. We're making very good progress on that, power delivery for data centers. initially, it is with our BCD technology and our 12-nanometer technology that we're seeing the first tape-outs. And as you know from previous calls, we are investing in GaN technology as well, and we believe that GaN, both the 650-volt as well as the 100-volt GaN, will have a major play also within the data center. So those are some of the future growth areas for us in data center out in time.

動力傳輸，非常令人興奮。我們在資料中心電力傳輸方面取得了很大的進展。最初，我們憑藉 BCD 技術和 12 奈米技術看到了第一批流片。正如您從先前的電話會議中了解到的那樣，我們也在投資 GaN 技術，我們相信 GaN（包括 650 伏特和 100 伏特）也將在資料中心發揮重要作用。所以這些是我們資料中心未來的一些成長領域。

Thanks, Niels. Julia, I think we're coming up on the O&O.

謝謝，尼爾斯。朱莉婭，我想我們即將迎來 O&O。

This concludes the question-and-answer session. I would now like to turn it back to Sam Franklin, Vice President of Business Finance and Investor Relations, for closing remarks.

問答環節到此結束。現在我想請企業財務與投資人關係副總裁 Sam Franklin 致最後總結。

Thank you, Julia. Thank you everyone for joining us on the call today. I appreciate the questions and looking forward to seeing and speaking to many of you over the next couple of months.

謝謝你，茱莉亞。感謝大家今天的電話會議。我很感謝你們的提問，並期待在接下來的幾個月與你們見面並交談。

Thank you for your participation in today's conference. This does conclude the program. You may now disconnect.

感謝大家參加今天的會議。該計劃確實結束了。您現在可以斷開連線。