格芯 (GFS) 2024 Q2 法說會逐字稿

Good day, and thank you for standing by. Welcome to the GlobalFoundries conference call to review second quarter of fiscal year 2024 financial results. (Operator Instructions) Please be advised that today's conference is being recorded.

美好的一天，感謝您的支持。歡迎參加 GlobalFoundries 電話會議，回顧 2024 財年第二季財務表現。 （操作員指示）請注意，今天的會議正在錄製中。

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.

現在，我想將會議交給今天的第一位發言者，商業金融和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 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 second quarter financial results, which are available on our website at investors.gs.com, along with today's accompanying slide presentation. This call is being recorded and a replay will be made available on our Investor Relations webpage.

謝謝你，接線生。大家早安，歡迎參加 GlobalFoundries 2024 年第二季財報電話會議。今天與我通話的是執行長 Thomas Caulfield 博士；約翰‧霍利斯特，財務長；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（可在我們的網站 Investors.gs.com 上取得）以及今天隨附的幻燈片演示。本次電話會議正在錄音，並將在我們的投資者關係網頁上提供重播。

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.

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中提供了最直接可比較的 IFRS 衡量標準以及非 IFRS 衡量標準的調節表。

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. 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.

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。此類陳述可以透過相信、期望、打算、預期和可能等術語或透過使用將來式來識別。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，我們不承擔更新我們今天所做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 提交的文件中描述的風險和不確定性，包括“風險因素”標題下的部分在我們於 2024 年 4 月 29 日向 SEC 提交的 20-F 表格年度報告中。

We will begin today's call with Tom providing a summary update on the current business environment and technologies. Niels will then discuss some recent strategic activities, following which John will provide details on our end markets and second quarter results and also provide third quarter 2024 guidance. We will then open the call for questions with Tom, John and Niels. We request that you please limit your questions to one with one follow-up.

我們將首先由 Tom 提供有關當前業務環境和技術的最新摘要。然後 Niels 將討論一些最近的戰略活動，隨後 John 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 2024 年第三季度的指導。然後我們將開始向湯姆、約翰和尼爾斯提問。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，讓他準備好要發言。

Thank you, Sam, and welcome, everyone, to our second quarter earnings call. I'm pleased to report the second quarter results, which exceeded the midpoint of our guidance ranges, as our 13,000 employees around the world continue to focus on delivering best-in-class technologies and meeting needs of our customers, both globally and locally. I am proud of how well our teams are partnering with our customers on exciting new design wins as we execute to our long-term plans.

謝謝山姆，歡迎大家參加我們的第二季財報電話會議。我很高興地報告第二季度的業績，該業績超出了我們指導範圍的中點，因為我們在世界各地的 13,000 名員工繼續專注於提供一流的技術並滿足全球和本地客戶的需求。我為我們的團隊在執行長期計劃時與客戶合作取得令人興奮的新設計成果感到自豪。

Against this backdrop, we believe that we're beginning to see the demand outlook improve across certain end markets, as the number of applications for analog and mixed signal products increases and channel inventory levels for some of our customers are showing signs of normalizing. As outlined on prior earnings calls, we still believe that the first quarter represents the low point for revenue in 2024 and the sequential revenue growth we reported for the second quarter, along with our guidance for the third quarter, are consistent with this expectation. Notwithstanding the short-term cyclical dynamics impacting our industry, we remain focused on positioning GF for long-term growth opportunities. I am pleased to provide several updates today, demonstrating how we are investing in our future growth plans and winning with our customers.

在此背景下，我們相信，隨著模擬和混合訊號產品的應用數量增加，以及我們一些客戶的通路庫存水準顯示出正常化的跡象，我們開始看到某些終端市場的需求前景有所改善。正如先前的財報電話會議中所述，我們仍然認為第一季是 2024 年收入的低點，我們報告的第二季度的連續收入增長以及我們對第三季度的指導與這一預期一致。儘管短期週期性動態影響著我們的產業，但我們仍專注於為 GF 提供長期成長機會。我很高興今天提供一些最新消息，展示我們如何投資未來的成長計畫並與客戶共贏。

To that end, we completed the acquisition of Tagore Technology's gallium nitride power business, which includes its extensive IP portfolio and its team of GaN engineers, which closed at the beginning of July. This is an important addition to our power technology platform.

為此，我們完成了 Tagore Technology 氮化鎵功率業務的收購，其中包括其廣泛的 IP 產品組合及其 GaN 工程師團隊，該收購已於 7 月初完成。這是我們電力技術平台的重要補充。

And with that, I'd like to turn the call over to Niels to provide some additional commentary.

因此，我想將電話轉給尼爾斯，以提供一些額外的評論。

Thank you, Tom, and welcome to everyone on the call. I'd like to share a few details on the acquisition and set out why it's important for GF and to our customers, and how this will support our ambitions to become a leading foundry in the rapidly expanding gallium nitride power device sector. At its core, the integration of Tagore Technology's IP is expected to enable GlobalFoundries to grow our capabilities in pursuit of two key objectives. Firstly, expanding our product portfolio by providing additional power handling features for our customers, and secondly, growing our serviceable addressable market.

謝謝你，湯姆，歡迎大家參加電話會議。我想分享一些有關此次收購的細節，並闡述為什麼它對格芯和我們的客戶很重要，以及這將如何支持我們成為快速擴張的氮化鎵功率裝置領域領先代工廠的雄心。從本質上講，Tagore Technology 的 IP 整合預計將使 GlobalFoundries 能夠增強我們的能力，以實現兩個關鍵目標。首先，透過為客戶提供額外的功率處理功能來擴展我們的產品組合，其次，擴大我們的可服務目標市場。

From a technical perspective, GaN offers several advantages over traditional silicon-based semiconductors, particularly in power applications. This is due to its ability to operate at higher voltages with faster switching speeds at smaller die sizes and with better thermal performance. With Tagore's technology, we can now target better power efficiency capability in an integrated solution.

從技術角度來看，GaN 比傳統矽基半導體具有多項優勢，特別是在電力應用中。這是因為它能夠在更高的電壓下工作，在更小的晶片尺寸下具有更快的開關速度，並且具有更好的熱性能。借助泰戈爾的技術，我們現在可以在整合解決方案中實現更好的能源效率。

Perhaps the best way to think about this is to compare our integrated GaN offering to BCD technology. With Tagore's capability, we plan to offer our customers the analog and digital content of BCD technology integrated with the superior power performance of GaN. These performance characteristics have been identified by our customers as key features for supporting applications across sectors such as automotive, aerospace and defense, renewable energy, fast-charging infrastructure, and power management for data centers. As a result, we expect our SAM to grow by approximately $1.6 billion by 2030 and additionally, we are supporting our customers to target a substantial share of this SAM. By investing in GaN solutions designed to push the boundaries of efficiency and performance in a wide range of power applications, we are targeting opportunities to win with our customers across all of the end markets we serve, and we are already sampling our first generation 650 volt GaN products with 100 to 200 volt sampling expected to follow shortly.

也許思考這個問題的最佳方法是將我們的整合 GaN 產品與 BCD 技術進行比較。憑藉 Tagore 的能力，我們計劃為客戶提供 BCD 技術的類比和數位內容以及 GaN 卓越功率性能的整合。這些性能特徵已被我們的客戶視為支援汽車、航空航太和國防、再生能源、快速充電基礎設施和資料中心電源管理等產業應用的關鍵功能。因此，我們預計到 2030 年我們的 SAM 將成長約 16 億美元，此外，我們正在支持我們的客戶爭取在 SAM 中佔據相當大的份額。透過投資旨在突破各種電源應用的效率和性能界限的 GaN 解決方案，我們瞄準了在我們服務的所有終端市場中贏得客戶的機會，並且我們已經對第一代 650 伏特產品進行了採樣預計很快就會推出100 至200 伏特樣品的GaN 產品。

To achieve this goal, we'll be modernizing our manufacturing capabilities at our site in Burlington over coming years. This modernization will be enabled with the expected support from the previously discussed grant award from the U.S. CHIPS and Science Act, along with continued investment in R&D to support a gradual ramp of our GaN manufacturing capacity over the next two to three years. Moreover, this acquisition aligns with GlobalFoundries' broader strategy to enable high-volume manufacturing of critical technologies in power applications and to serve as a trusted manufacturing partner for our customers seeking to build the next generation of power management solutions here in the United States. I would like to welcome our new GF employees joining us as part of this acquisition, and we look forward to taking the next step in this important growth opportunity for the Company.

為了實現這一目標，我們將在未來幾年對伯靈頓工廠的製造能力進行現代化改造。這種現代化將在前面討論的美國晶片和科學法案撥款的預期支持下實現，同時持續投資研發以支持我們在未來兩到三年內逐步提高 GaN 製造能力。此外，此次收購符合 GlobalFoundries 更廣泛的策略，即實現電源應用關鍵技術的大批量製造，並成為尋求在美國建立下一代電源管理解決方案的客戶值得信賴的製造合作夥伴。我熱烈歡迎新的 GF 員工加入我們，作為此次收購的一部分，我們期待在公司這一重要的成長機會中邁出下一步。

With that, back to you, Tom.

說到這裡，回到你身邊，湯姆。

Thank you, Niels. Before I comment on the current business landscape and our recent customer partnerships, let me now touch briefly on our second quarter results, which John will discuss in more detail in his commentary.

謝謝你，尼爾斯。在評論當前的業務狀況和我們最近的客戶合作夥伴關係之前，讓我先簡要介紹一下我們第二季的業績，約翰將在他的評論中更詳細地討論這一點。

Revenue in the quarter increased sequentially to $1.632 billion, which was above the midpoint of our guidance range. We reported non-IFRS gross margin of 25.2% in the quarter, which again exceeded the midpoint of our guidance range. We delivered non-IFRS diluted earnings per share of $0.38, which exceeded the high end of our guidance range. I am also pleased to report another quarter of strong cash flow, which reflects our disciplined approach to capital deployment while preserving our capacity expansion objectives.

本季營收季增至 16.32 億美元，高於我們指引範圍的中點。我們公佈的本季非 IFRS 毛利率為 25.2%，再次超過了我們指引範圍的中點。我們的非 IFRS 攤薄每股收益為 0.38 美元，超出了我們指導範圍的上限。我還很高興地報告另一個季度強勁的現金流，這反映了我們在保持產能擴張目標的同時嚴格的資本部署方法。

Cash flow generation remains a long-term objective for driving the Company towards a sustainable foundry expansion model. We are on track to deliver approximately 3x the amount of 2023 non-IFRS adjusted free cash flow by the end of 2024. We are well on our way to this goal, as we achieved more than $500 million of non-IFRS adjusted free cash flow in the first half of the year.

產生現金流仍然是推動公司實現永續代工擴張模式的長期目標。我們預計在 2024 年底之前交付約 3 倍於 2023 年非 IFRS 調整後自由現金流。

Moving now to some of our recent partnership activity and how we are positioning GF to keep winning with our customers over the long term. Automotive remains a bright spot across our end market portfolio and we delivered another quarter of revenue growth. 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. As the semiconductor content in vehicles continues to expand, GF is well-positioned to support our customers with a full range of our technology portfolio mix. The performance features embedded across our key product platforms support critical applications in the automotive sector.

現在討論我們最近的一些合作夥伴活動，以及我們如何定位 GF，以保持與客戶的長期合作。汽車仍然是我們終端市場產品組合中的一個亮點，我們的收入又實現了一個季度的成長。我們將繼續與客戶合作，尋找擴大當今和未來汽車市場份額和內容的長期機會。隨著汽車中半導體含量的不斷增加，格芯已做好充分準備，能夠透過全方位的技術組合組合為客戶提供支援。我們的關鍵產品平台嵌入的性能特性支援汽車產業的關鍵應用。

In the second quarter, we closed important design wins for automotive power management on our 130nm BCD platform and next-generation tire pressure monitoring systems on our 55nm platform. Across the broader portfolio, our technologies are key enablers of the increasing semiconductor content in vehicles, including 12LP+ used in infotainment and navigation systems; 22FDX for radar and safety applications; and through our 130nm and 180nm technologies for automotive power management applications. Our 40nm microcontrollers for safety, powertrain and comfort applications has seen consistent demand from our customers, one of which has the number-one position in automotive microcontrollers, where we are the sole source supplier. From a revenue base of approximately $1 billion in 2023, we remain on track to grow our revenue meaningfully on a year-over-year basis for the full year of 2024.

第二季度，我們在 130 奈米 BCD 平台上完成了汽車電源管理的重要設計，並在 55 奈米平台上完成了下一代輪胎壓力監測系統的設計。在更廣泛的產品組合中，我們的技術是車輛中半導體含量不斷增加的關鍵推動因素，包括用於資訊娛樂和導航系統的 12LP+； 22FDX 用於雷達和安全應用；以及我們針對汽車電源管理應用的 130 奈米和 180 奈米技術。我們用於安全、動力系統和舒適應用的 40 奈米微控制器得到了客戶的一致需求，其中之一在汽車微控制器中佔據第一的位置，而我們是唯一的來源供應商。從 2023 年約 10 億美元的營收基礎來看，我們仍有望在 2024 年全年實現營收年增。

Turning now to Smart Mobile Devices, where our technology portfolio delivered quarter-over-quarter revenue growth and key design wins in the second quarter across RF front end, WiFi, and wireless connectivity applications. Notwithstanding the ongoing inventory correction, our customers are continuing to engage with us for long term opportunities to deliver the next generation of smart mobile devices. Thanks to our recent design wins, we expect to grow share with our RF front end offerings, specifically on our 8SW and 9SW RF SOI platforms. 9SW features lower standby currents for longer battery life, up to 10% improvements in noise figure, and up to 25% reduction in customer die sizes.

現在轉向智慧型行動設備，我們的技術組合在第二季度實現了環比收入成長，並在射頻前端、WiFi 和無線連接應用方面取得了關鍵設計成果。儘管庫存持續調整，我們的客戶仍繼續與我們合作，尋求提供下一代智慧行動裝置的長期機會。由於我們最近的設計成果，我們預期射頻前端產品的份額將會增加，特別是在我們的 8SW 和 9SW RF SOI 平台上。 9SW 具有更低的待機電流，可延長電池壽命，噪音係數提高高達 10%，客戶晶片尺寸縮小高達 25%。

Our 22FDX platform continues to be an important growth vector for wireless connectivity applications and smart mobile devices, and we closed a key design win in the second quarter for wireless video applications in premium smartphones. Our 28nm high voltage low power solutions for OLED display driver applications began to ramp in the second quarter. We continue to target new opportunities across other display driver integrated circuit customers, serving premium tier handsets. These features all drive increased silicon content, which in turn increased the need for high-performance connectivity and low-power technologies, which GF is well placed to serve.

我們的 22FDX 平台仍然是無線連接應用和智慧型行動裝置的重要成長載體，我們在第二季度贏得了高階智慧型手機無線視訊應用的關鍵設計勝利。我們針對 OLED 顯示器驅動器應用的 28 奈米高壓低功耗解決方案在第二季開始量產。我們繼續瞄準其他顯示器驅動器積體電路客戶的新機會，為高階手機提供服務。這些特性都推動了矽含量的增加，進而增加了對高性能連接和低功耗技術的需求，而格芯完全可以滿足這些需求。

In IoT, ongoing excess inventories at our customers contributed to a decline in revenue for the second quarter. Although our customers' inventories are expected to remain high through 2024, we continue to see long-term opportunities as the number and complexity of smart connected and battery-operated devices continue to grow.

在物聯網領域，客戶持續過剩的庫存導致第二季收入下降。儘管我們客戶的庫存預計到 2024 年仍將保持在較高水平，但隨著智慧互聯和電池供電設備的數量和複雜性持續增長，我們仍看到長期機會。

The need to sense, acquire, process, and communicate data also translates into new requirements for more efficient power management, connectivity and AI at the edge functionalities. For example, our 22FDX+ platform for high-speed wireless IoT devices picked up new design wins in the second quarter, as did our 28nm ESF3 platform, to support next generation of smart card applications. Highlighting the breadth of our IoT markets, we are now working with medical device providers in applications such as continuous glucose monitors using our 130nm BCDLite platform as a key enabler of the front-end function of these devices.

感知、獲取、處理和通訊資料的需求也轉化為對邊緣功能更有效率的電源管理、連接和人工智慧的新要求。例如，我們用於高速無線物聯網設備的 22FDX+ 平台在第二季度獲得了新的設計勝利，我們的 28nm ESF3 平台也是如此，以支援下一代智慧卡應用。為了突顯我們物聯網市場的廣度，我們現在正在與醫療設備供應商合作開發連續血糖監測儀等應用，使用我們的 130nm BCDLite 平台作為這些設備前端功能的關鍵推動者。

In aerospace and defense, we continue to partner with a variety of customers where our power and performance optimized solutions are well suited to applications geared for harsh environments. To that end, we recently announced a new collaboration with BAE Systems to strengthen the supply of critical semiconductors for national security programs. Together, our companies will collaborate on R&D programs across a range of applications, including advanced packaging, gallium nitride, silicon photonics, and advanced technology process development.

在航空航太和國防領域，我們繼續與各種客戶合作，我們的功率和性能優化解決方案非常適合惡劣環境的應用。為此，我們最近宣布與 BAE Systems 進行新的合作，以加強國家安全計畫關鍵半導體的供應。我們公司將共同合作進行一系列應用的研發項目，包括先進封裝、氮化鎵、矽光子學和先進技術製程開發。

Finally, revenue for our Communications Infrastructure & Datacenter segment grew sequentially in the second quarter, as the near-term node migration of our datacenter and digital-centric customers tapered off. As discussed on our last earnings call, we believe that quarterly revenue for the remainder of 2024 in this end market will be roughly in line with what we have reported for the first and second quarters of 2024. Over the long term, power management for Communications Infrastructure & Datacenter represents an important opportunity for GF in applications ranging from service, regenerative AI, high-performance network switches and storage, a trend that GF is well-positioned to address through our silicon photonics and power delivery solutions.

最後，隨著我們的資料中心和以數位為中心的客戶的近期節點遷移逐漸減少，我們的通訊基礎設施和資料中心部門的收入在第二季度連續增長。正如我們在上次財報電話會議上所討論的那樣，我們認為該終端市場2024 年剩餘時間的季度收入將與我們報告的2024 年第一季和第二季大致一致。管理基礎設施和資料中心為格芯在服務、再生人工智慧、高效能網路交換機和儲存等應用領域帶來了重要機遇，格芯有能力透過我們的矽光子和電力傳輸解決方案來應對這一趨勢。

As we discussed in our first quarter earnings call, satellite communications is also an important growth opportunity within this end market and I am pleased to report another design win in the second quarter, this time on our 22FDX platform, to enhance beamforming for SATCOM applications, which follows the base station design win we announced last quarter using our 130nm NSX platform. I'm also pleased to report that Groq, a leading developer of fast AI inference technology, has recently announced that it is ramping its language processing units with GF manufactured on our 14nm platform at our Malta facility in upstate New York. This is an important development in supporting the next wave of AI inference technologies and continues the diversification of end markets serviced by our fab 8 facility.

正如我們在第一季財報電話會議中討論的那樣，衛星通訊也是該終端市場的一個重要成長機會，我很高興地報告第二季度的另一項設計勝利，這次是在我們的22FDX平台上，以增強衛星通訊應用的波束成形，繼我們上季宣布使用 130nm NSX 平台獲得基地台設計勝利之後。我還很高興地向大家報告，快速 AI 推理技術的領先開發商 Groq 最近宣布，該公司正在利用位於紐約州北部馬耳他工廠的 14 奈米平台上製造的格芯來擴大其語言處理單元的規模。這是支持下一波人工智慧推理技術的重要發展，並繼續推動我們 fab 8 設施服務的終端市場的多元化。

Moving briefly to our capacity, I would like to take a moment to talk about how we are optimizing our manufacturing footprint over the coming years. We remain deeply focused on providing our customers with a diversified technology offering across our entire manufacturing footprint. And to that end, we are continuing with the transfers of technologies across 22nm, 28nm, and 40nm platforms in our Fab 8 facility in Malta, New York, which add to the 12nm FinFET RF SOI and silicon photonics platforms that are already manufactured there.

簡單介紹一下我們的產能，我想花點時間談談我們如何在未來幾年優化我們的製造足跡。我們仍然專注於在整個製造領域為客戶提供多元化的技術產品。為此，我們正在紐約馬耳他的 Fab 8 工廠繼續進行 22nm、28nm 和 40nm 平台的技術轉讓，這將增加該工廠已經生產的 12nm FinFET RF SOI 和矽光子平台。

Long term, our mission remains to support our customers with differentiated technologies and performance features that they need in the markets and geographies where they excel. To summarize, I'm proud of our teams around the world as they executed to plan, and we delivered second quarter revenue, gross profit, and EPS above the midpoint of our guidance ranges while continuing to close important design wins to support our long-term growth objectives.

從長遠來看，我們的使命仍然是為客戶提供他們在其擅長的市場和地區所需的差異化技術和性能特性。總而言之，我為我們世界各地的團隊感到自豪，因為他們執行了計劃，我們實現了第二季度的收入、毛利潤和每股收益高於我們指導範圍的中點，同時繼續完成重要的設計勝利以支持我們的長期長期成長目標。

With that, over to you, John.

那麼，就交給你了，約翰。

Thank you, Tom, and welcome, everyone, to our second quarter earnings call. For the remainder of the call, including guidance, other than revenue, cash flow, CapEx, and net interest and other expense, I will reference non-IFRS metrics, which exclude share-based compensation and/or other restructuring charges. As Tom noted, our second quarter results exceeded the midpoint of the guidance ranges we provided in our last quarterly update. We delivered second quarter revenue of $1.632 billion, which represented a 5% increase over the prior quarter, but a decrease of 12% 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.

謝謝湯姆，歡迎大家參加我們的第二季財報電話會議。對於電話會議的其餘部分，包括除收入、現金流量、資本支出、淨利息和其他費用之外的指導，我將參考非國際財務報告準則指標，其中不包括基於股份的薪酬和/或其他重組費用。正如湯姆指出的那樣，我們第二季度的業績超出了我們在上一季更新中提供的指導範圍的中點。我們第二季的營收為 16.32 億美元，比上一季成長 5%，但年減 12%，主要是由於 70 年代中期的出貨量和利用率較低，這與評論一致我們上次的財報電話會議。

We shipped approximately 517,000 300mm equivalent wafers in the quarter, up 12% sequentially and down 10% from the prior-year period. ASP, or average selling price per wafer, was flat year over year. Wafer revenue from our end markets accounted for approximately 91% of total revenue. Non-wafer revenue, which includes revenue from reticles, nonrecurring engineering, expedite fees, and other items, accounted for approximately 9% of total revenue for the second quarter.

本季我們出貨了約 517,000 片 300mm 等效晶圓，比上一季成長 12%，比去年同期下降 10%。 ASP（每片晶圓的平均售價）較去年同期持平。來自終端市場的晶圓收入約佔總收入的91%。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，約佔第二季總收入的 9%。

Let me now provide an update on our revenues by end markets. Smart Mobile Devices represented approximately 47% of the quarter's total revenue. Second quarter revenue increased approximately 12% sequentially and decreased approximately 3% from the prior-year period, principally due to modestly lower shipments. This decline was partially offset by an improvement in ASP and mix, driven by continued content growth in premium tier smart mobile devices. As Tom discussed, we believe that inventory levels in this end market have begun to normalize during the first half of 2024, and we are well-positioned to support our customers when this end market rebounds, as the silicon content and features in smart mobile devices continues to grow.

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。智慧型行動裝置約佔該季度總收入的 47%。第二季營收季增約 12%，較去年同期下降約 3%，主要是因為出貨量小幅下降。這一下降被高階智慧行動裝置內容持續成長所推動的平均售價和產品組合的改善所部分抵消。正如Tom 所討論的，我們認為該終端市場的庫存水準在2024 年上半年已開始正常化，隨著智慧型行動裝置中的矽含量和功能的提高，我們已做好準備，在該終端市場反彈時為我們的客戶提供支援持續成長。

In the second quarter, revenue for the Home and Industrial IoT markets represented approximately 18% of the quarter's total revenue. Second quarter revenue decreased approximately 5% sequentially and 28% from the year-prior period, as our customers in the Consumer and Industrial IoT segments continue to focus on bringing down their elevated channel inventories. 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 18%。第二季營收季減約 5%，較上年同期下降 28%，因為我們消費和工業物聯網領域的客戶繼續專注於降低通路庫存。以消費者為中心的物聯網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領域銷售的增加部分抵消。

Automotive remained a key growth segment for us and represented approximately 17% of the quarter's total revenue. Second quarter revenue grew approximately 2% sequentially and 10% from the prior-year period, due to higher volumes as the semiconductor content and features increase 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 meaningful year-over-year Automotive revenue growth for 2024, as we support our customers across a diverse range of automotive applications in both industrial internal combustion engine and autonomous connected electrified vehicles.

汽車仍然是我們的關鍵成長領域，約佔本季總收入的 17%。第二季營收季增約2%，較上年同期成長10%，原因是整個車輛架構中半導體含量和功能的增加以及我們的設計繼續吸引主要客戶，銷量增加，但部分被銷售額的減少所抵消。正如 Tom 指出的那樣，我們預計 2024 年汽車收入將實現有意義的同比增長，因為我們為工業內燃機和自動互聯電動車等各種汽車應用的客戶提供支援。

Finally, moving onto our Communications Infrastructure & Datacenter end market, which represented approximately 9% of the quarter's total revenue, second quarter revenue increased 28% sequentially and declined approximately 27% year over year, as a result of declining volumes. However, this was partially offset by an improvement in ASPs and mix during the quarter. As Tom noted, we will continue to focus on new opportunities in CID in the areas of power and connectivity, while diversifying our manufacturing footprint.

最後，轉向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 9%，第二季營收季增 28%，但由於銷量下降，年減約 27%。然而，該季度平均售價和產品組合的改善部分抵消了這一影響。正如 Tom 指出的那樣，我們將繼續關注 CID 在電力和連接領域的新機遇，同時實現製造業務的多元化。

Moving next to gross profit. For the second quarter, we delivered gross profit of $411 million, which was above the midpoint of our guided range and translates into approximately 25.2% gross margin. Gross margin exceeded the midpoint we had indicated and includes $66 million in revenue associated with the execution of customer volume adjustments.

接下來是毛利。第二季度，我們實現了 4.11 億美元的毛利，高於我們指導範圍的中點，相當於毛利率約為 25.2%。毛利率超過了我們指定的中點，其中包括與執行客戶數量調整相關的 6,600 萬美元收入。

Looking ahead to the third quarter of 2024, we expect additional customer volume adjustments, albeit at lower levels than we saw in the first half of 2024, as our customers' demand and inventory levels begin to correct. This has been reflected in our third quarter guidance.

展望 2024 年第三季度，隨著客戶的需求和庫存水準開始修正，我們預期客戶數量將出現額外調整，儘管調整幅度低於 2024 年上半年的水準。這已反映在我們的第三季指引中。

On operating expenses and operating profit, operating expenses for the second quarter represented approximately 12% of total revenue. R&D for the quarter declined to $113 million, and SG&A also declined sequentially to $86 million. Total operating expenses declined sequentially to $199 million in the quarter and incorporated an advanced manufacturing investment tax credit of $20 million. As discussed on our last earnings call, as we continue to spend on qualifying U.S. expenses and capitalize assets in 2024 and beyond, we expect to continue to receive these benefits through the life of the program.

在營業費用和營業利潤方面，第二季營業費用約佔總收入的12%。該季度的研發費用下降至 1.13 億美元，SG&A 也較上季下降至 8,600 萬美元。本季總營運費用較上季下降至 1.99 億美元，並納入了 2,000 萬美元的先進製造投資稅收抵免。正如我們在上次財報電話會議上所討論的，隨著我們在 2024 年及以後繼續支出符合條件的美國費用並資本化資產，我們預計將在該計劃的整個生命週期內繼續獲得這些福利。

We delivered operating profit of $212 million for the quarter, which translates into approximately 13% operating margin, at the high end of our guided range and 530 basis points below the prior-year period. Second quarter net interest income and other income and expense was $12 million, and we incurred income tax expense of $13 million in the quarter. We reported second quarter net income of $211 million, a decrease of approximately $86 million from the year-ago period. As a result, we reported diluted earnings of $0.38 per share for the second quarter, which was above the high end of our guidance range.

本季我們實現了 2.12 億美元的營業利潤，相當於營業利潤率約 13%，處於我們指引範圍的高端，比去年同期低 530 個基點。第二季淨利息收入和其他收入和支出為 1,200 萬美元，本季我們產生了 1,300 萬美元的所得稅費用。我們報告第二季淨利潤為 2.11 億美元，比去年同期減少約 8,600 萬美元。因此，我們報告第二季稀釋後每股收益為 0.38 美元，高於我們指導範圍的上限。

Let me now provide some key balance sheet and cash flow metrics. Cash flow from operations for the second quarter was $402 million. CapEx for the quarter was $101 million or roughly 6% of revenue. Adjusted 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 equipment and intangible assets, as set out on the statement of cash flows, was $302 million. At the end of the second quarter, our combined total of cash, cash equivalents, and marketable securities stood at approximately $4.145 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。第二季營運現金流為 4.02 億美元。該季度的資本支出為 1.01 億美元，約佔收入的 6%。本季調整後的現金流量（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收益，減去現金流量表中列出的財產、工廠設備和無形資產的採購）為3.02 億美元。截至第二季末，我們的現金、現金等價物和有價證券總額約為 41.45 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 third quarter of 2024. We expect total GF revenue to be between $1.7 billion0 and $1.75 billion. Of this, we expect non-wafer revenue to be approximately 11% of total revenue. We expect gross profit to be between$391 million and $438 million. Excluding share-based compensation, but including the benefit related to the advanced manufacturing investment tax credit, for the third quarter, we expect total OpEx to be between $200 million and $220 million. We expect operating profit to be between $171 million and $238 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. We expect net interest income and other income expense for the quarter to be between 0 and positive $7 million and income tax expense to be between $16 million and $31 million. We expect net income to be between $155 million and $214 million on a fully-diluted share count of approximately 558 million shares. We expect earnings per share for the third quarter to be between $0.28 and $0.38.

接下來，讓我向您提供我們對 2024 年第三季的展望。其中，我們預期非晶圓收入將佔總收入的約11%。我們預計毛利將在 3.91 億美元至 4.38 億美元之間。不包括基於股權的薪酬，但包括與先進製造投資稅收抵免相關的收益，我們預計第三季的總營運支出將在 2 億美元至 2.2 億美元之間。我們預計營業利潤將在 1.71 億美元至 2.38 億美元之間。在我們指導的中點，我們預計基於股份的薪酬約為 5000 萬美元，其中約 1400 萬美元與銷售商品成本相關，約 3600 萬美元與營運支出相關。我們預計本季淨利息收入和其他收入支出將在 0 至正 700 萬美元之間，所得稅支出將在 1,600 萬美元至 3,100 萬美元之間。我們預計，在完全稀釋後的股數約為 5.58 億股的情況下，淨利潤將在 1.55 億美元至 2.14 億美元之間。我們預計第三季每股收益將在 0.28 美元至 0.38 美元之間。

Consistent with our commentary on our last earnings call, our third-quarter guidance reflects the expectation that utilization will continue 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 maintain our CapEx guidance of approximately $700 million. And as Tom commented, we expect this to provide GF an opportunity to focus on delivering adjusted free cash flow generation in 2024, approximately 3x greater than 2023.

與我們對上次財報電話會議的評論一致，我們的第三季度指導反映了利用率將持續在70 年代低至中期的預期，因為我們的一些核心終端市場開始從2024 年上半年持續的庫存調整中恢復過來2024 年全年，我們維持約 7 億美元的資本支出指引。正如 Tom 所評論的，我們預計這將為 GF 提供一個機會，專注於在 2024 年實現調整後的自由現金流生成，大約比 2023 年增加 3 倍。

In summary, the dedication from our 13,000 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 second quarter results above the midpoint of the guidance ranges we provided in our first quarter earnings update.

總而言之，我們在全球13,000 名員工的奉獻精神以及他們在關鍵增長領域擴大差異化產品供應的持續努力，同時應對充滿挑戰的周期性背景，使我們能夠實現第二季度的業績高於我們提供的指導範圍的中點在我們的第一季財報更新。

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？

Thank you. (Operator Instructions) Our first question comes from the line of Mark Lipacis with Evercore ISI. Your line is now open.

謝謝。 （操作員說明）我們的第一個問題來自 Evercore ISI 的 Mark Lipacis。您的線路現已開通。

Hi, thanks for taking my question. One for Tom, maybe one for John.

您好，感謝您提出我的問題。一份給湯姆，或許一份給約翰。

Tom, it sounds like you're of the view that the industry is starting to emerge from the inventory correction. A lot of times coming out of inventory correction, it can kind of start with a material -- or at some point have a material uptick in orders. And I'm wondering if you could just provide us any color that you are having with your conversations with your customers? Are they expressing the view to you that they're shipping materially below consumption and when that gap between their shipments and demand consumption might close, and how you prep global foundries for that possibility of a material uptick in orders?

湯姆，聽起來您認為該行業正開始擺脫庫存調整。很多時候，庫存調整可能是從某種材料開始的，或者在某個時候訂單的材料增加。我想知道您是否可以向我們提供您與客戶對話時的任何顏色？他們是否向您表達了這樣的觀點：他們的發貨量大大低於消耗量，以及發貨量和需求消耗之間的差距何時可能縮小，以及您如何讓全球代工廠做好應對訂單大幅增加的可能性？

Thanks. And then I had a follow-up.

謝謝。然後我進行了跟進。

Thanks, Mark. Good morning. Look, I think a couple of comments I'd make first. It's clear we're at the bottom of the cycle. I think the real question is when do we come up in a meaningful way from the bottom of the cycle? And this is -- it's not a monolithic answer because we play in many end markets. And so I would tell you, well, Home and Industrial IoT did a really good job on not -- or bleeding down inventory in the quarter. They still have not really seen the demand that they need to start growing again. Same, I would say, with comms infrastructure, an end market that investments have slowed down in.

謝謝，馬克。早安.聽著，我想我首先要發表一些評論。很明顯，我們正處於週期的底部。我認為真正的問題是我們什麼時候才能以有意義的方式擺脫週期的底部？這不是一個單一的答案，因為我們在許多終端市場開展業務。所以我想告訴你，家庭和工業物聯網在本季的庫存減少方面做得非常好。他們仍然沒有真正看到重新開始成長所需的需求。我想說，通訊基礎設施也是如此，這個終端市場的投資已經放緩。

Now, on the other end, at least for GF, Automotive is a bright spot for us. This is a year on year meaningful growth for GF. And of course, we're seeing, as everybody else is seeing in smart mobile devices after two years of depressed mobile device sales, this is the year where most people are calling for low-single-digit growth, and that's an opportunity for us to continue to grow our revenue.

現在，在另一端，至少對 GF 來說，汽車是我們的一個亮點。對 GF 來說，這是同比有意義的成長。當然，正如其他人在智慧型行動裝置銷售兩年低迷之後所看到的那樣，今年大多數人都在呼籲低個位數成長，這對我們來說是一個機會繼續增加我們的收入。

So I would say, when I think of what's going to be that catalyst to get real growth, we're going to have to see if AI-enabled devices drive a refresh cycle. And this is something we'll see over the coming quarters, and starting maybe in fourth quarter this year, when they refresh a particular product line and how that does with the promise of new feature capability in AI.

所以我想說，當我想到什麼將成為實現真正成長的催化劑時，我們將不得不看看人工​​智慧型設備是否會推動更新周期。我們將在未來幾季看到這一點，也許從今年第四季開始，屆時他們將更新特定的產品線，以及它如何兌現人工智慧新功能的承諾。

Lastly, a lot of what we're going to see in our industry is going to be tied to macroeconomics. This is a consumer-led industry. If you think about the two largest economies, China and the U.S., have different macro economic conditions they're dealing with. In China, it's real estate overhang that has consumers maybe saving a little bit more than they ordinarily will and being a little gun-shy. In the U.S., we're still dealing with high interest rates as a result of high inflation. And once those two economies get a little bit more normalized and consumers start to spend and redirect that spending back into electronics, I think that's when we're going to see our businesses as an industry pick up. But the real catalyst, if we're going to do anything in the nearer term, other than this macro environment, is really going to be AI-enabled devices. Will they spark the interest in devices that will have new functionality that consumers will want.

最後，我們在產業中看到的許多事情都將與宏觀經濟連結在一起。這是一個以消費者為主導的行業。如果你想想中國和美國這兩個最大的經濟體，它們面臨不同的宏觀經濟狀況。在中國，房地產過剩導致消費者的儲蓄可能比平常多一點，而且有點膽怯。在美國，我們仍在應對高通膨導致的高利率。一旦這兩個經濟體變得更加正常化，消費者開始消費並將其重新轉向電子產品，我認為那時我們將看到我們的業務作為一個行業的復甦。但如果我們在近期要做任何事情，除了宏觀環境之外，真正的催化劑確實是人工智慧設備。它們是否會激發人們對具有消費者想要的新功能的設備的興趣？

Very helpful. Thank you, Tom. I don't know, maybe for John, the free cash flow is well above the net income, so the quality of earnings is quite high. And it looks like the main mechanism is CapEx underfunding depreciation expense, and if so, would you expect that to persist? And maybe if you could give us a framework for thinking about those line items in the cash flow statement, depreciation and CapEx over the medium term and maybe into next year if you could. Thank you.

很有幫助。謝謝你，湯姆。我不知道，也許對約翰來說，自由現金流遠高於淨利潤，所以獲利品質相當高。看起來主要機制是資本支出資金不足，折舊費用不足，如果是這樣，您認為這種情況會持續下去嗎？也許您能給我們一個框架來思考中期現金流量表中的這些項目、折舊和資本支出，如果可以的話，也許可以到明年。謝謝。

Yes, certainly, Mark. This is John. Yes. So the company had invested in its capacity footprint over the past several years. And given the industry dynamics, we have the ability to leverage that and operate within that capacity without a heavy amount of CapEx. That said, we are still investing in future growth. For example, our technology transfers into our multi-fab are continuing, and we continue to make investments around GaN and other items to drive forward growth. So we're excited about that. But yes, we also had some benefit in the first half from some of our customer prepayments and accelerated AR collections that benefited first half free cash flow. So all things considered, good performance. You know, we generated more than $500 million of free cash flow in the first half and are on track to meet our goal for a 3x improvement. That's actually up. If you recall, the prior indication was 2.5x to 3x. We have upgraded that to 3x 2023 free cash flow performance. So we're pleased to report that this morning, and we see these trends persisting into 2025, to your other question, where as we have factory utilization in the low to mid 70s, we have some room now to pull that back up to 80%, 90% plus utilization as the industry recovers and continue to maintain healthy cash flow generation.

是的，當然，馬克。這是約翰。是的。因此，該公司在過去幾年中對其產能進行了投資。考慮到行業動態，我們有能力利用這一點並在該能力範圍內運營，而無需大量資本支出。也就是說，我們仍在投資未來的成長。例如，我們正在繼續向多晶圓廠進行技術轉移，並繼續圍繞 GaN 和其他項目進行投資以推動成長。所以我們對此感到興奮。但是，是的，我們在上半年也從一些客戶預付款和加速 AR 收款中受益，這有利於上半年的自由現金流。所以綜合考慮，表現良好。您知道，我們上半年產生了超過 5 億美元的自由現金流，並且預計將實現 3 倍改進的目標。其實就這樣了如果您還記得的話，先前的指示是 2.5 倍到 3 倍。我們已將其升級為 2023 年自由現金流績效的 3 倍。因此，我們很高興今天早上報告這一點，我們看到這些趨勢持續到2025 年，對於您的另一個問題，由於我們的工廠利用率在70 多歲到70 多歲左右，我們現在有一些空間將其拉回到80隨著行業復甦並繼續保持健康的現金流生成，利用率將達到 90% 以上。

Mark, let me put a little bit of finer point on this long-term capacity. As John pointed out, we were in a couple of years of heavy investment cycle, getting ready for our customers demand and then of course, this cycle came along. We've said it before, and we'll say it again, and I think it's worth repeating, is the investments we've made can drive our company to $9.5 billion to $10 billion worth of revenue. So first, we get to fill the capacity back to 95% utilization and then beyond. So we've put ourselves in a position where we have healthy growth opportunities once the demand returns in the footprint we have, and by the time we start investing again, we're going to be investing off a much bigger base, where free cash flow and investment can both happen simultaneously.

馬克，讓我對這個長期能力做一些更詳細的闡述。正如約翰指出的那樣，我們處於幾年的大量投資週期中，為滿足客戶需求做好準備，然後當然，這個週期就出現了。我們之前已經說過，現在還會再說一遍，我認為值得重複的是，我們所做的投資可以推動我們公司實現 95 億至 100 億美元的收入。因此，首先，我們將容量恢復到 95% 的利用率，然後再提高。因此，一旦需求恢復到我們現有的範圍內，我們就將自己置於一個擁有健康成長機會的位置，當我們再次開始投資時，我們將在更大的基礎上進行投資，其中有自由現金流和投資可以同時發生。

Very helpful. Thank you.

很有幫助。謝謝。

Our next question comes from the line of Ross Seymore with Deutsche Bank. Your line is now open.

我們的下一個問題來自德意志銀行的 Ross Seymore。您的線路現已開通。

Hi, guys. Thanks for -- ask a question. I guess for my first of my two questions, I want to focus on the revenue side. For the third quarter and then potentially the fourth quarter, could you give us a little idea of what you're seeing in the end markets? In the third quarter it looks like your non-wafer revenue is, I don't know, 45% of the sequential growth. In the past quarterly calls, you've talked about being able to grow for the rest of the year. Is that still true for the December quarter as well?

嗨，大家好。謝謝你——問一個問題。我想對於我的兩個問題中的第一個問題，我想專注於收入方面。對於第三季度以及可能的第四季度，您能否向我們介紹一下您在終端市場上看到的情況？在第三季度，我不知道你們的非晶圓收入看起來是季增的 45%。在過去的季度電話會議中，您談到了今年剩餘時間的成長。 12 月季度也是如此嗎？

Yes, Ross, this is John. Yes, we are holding that view. You know, back in the February call we indicated that we felt the first quarter revenue point was our low for fiscal 2024, and that we would be able to sequentially grow revenue each quarter in 2024. Our results for second quarter and our guidance for third quarter are consistent with that view, and we maintain that view as we look forward to the fourth quarter. As we indicated in the prepared commentary, we're seeing recovery in the Smart Mobile Devices end market, which is encouraging. Our CID end market is stabilized now, with the single node migration for some of our more datacenter and digitally-centric customers beginning to taper off. So we see that at a relatively stable point at this point. And IoT has had a fairly high level of inventory that continues to get worked off, and we're looking for longer-term recovery in the IoT market. And finally, of course, the very bright spot for us in terms of growth this year is Automotive, where we're seeing meaningful growth opportunity, and that's on the back of $1 billion in Automotive revenue in 2023, which was a 3x increase over what we generated in 2022. So clearly, the share gain story in Automotive continues to persist, and we're quite encouraged by that.

是的，羅斯，這是約翰。是的，我們持這種觀點。您知道，早在2 月的電話會議中，我們就表示，我們認為第一季的營收點是2024 財年的最低點，並且我們將能夠在2024 年每季連續增加營收。的業績和第三季的指導季度與此觀點一致，我們在展望第四季時維持這一觀點。正如我們在準備好的評論中指出的那樣，我們看到智慧型行動裝置終端市場的復甦，這是令人鼓舞的。我們的 CID 終端市場現已穩定，一些以資料中心和數位為中心的客戶的單節點遷移開始逐漸減少。所以我們現在看到的是一個相對穩定的點。物聯網的庫存水準相當高，而且仍在不斷消耗中，我們正在尋求物聯網市場的長期復甦。當然，最後，我們今年成長的亮點是汽車領域，我們看到了有意義的成長機會，這是基於 2023 年汽車收入達到 10 億美元，比去年成長了 3 倍。明顯，汽車產業的份額成長故事持續持續，我們對此感到非常鼓舞。

Thanks for that color, John. And I guess as my follow-up question, moving over to the gross margin side of things, can you just help us on two factors? How should we think about the LTSA resolution benefits? I know you said it will be less in the -- well, it was less in the second quarter than the first, and it sounds like that trajectory will continue into your third quarter guide. But the bigger picture question is how do we reconcile the revenues rising and the gross margin falling? When do those start to move directionally similar? And what sort of incremental gross margin should we think about going forward, when that kind of more normal relationship emerges?

謝謝你的顏色，約翰。我想，作為我的後續問題，轉向毛利率方面，您能在兩個因素上幫助我們嗎？我們該如何看待 LTSA 決議的好處？我知道你說過，第二季的數量會比第一季少，聽起來這個軌跡將延續到你的第三季指南。但更大的問題是我們如何協調收入成長和毛利率下降之間的關係？它們什麼時候開始朝著相似的方向移動？當這種更正常的關係出現時，我們應該考慮未來什麼樣的增量毛利率？

Sure, Ross. Yes, John, again here. And as we indicated a couple of times, we have factory utilization in the low to mid 70s. And given the relatively high level of fixed costs in our cost structure, that has a meaningful effect on our all-in gross margin that we report. All that said, we've done a couple of things to help our gross margins this year. We've worked very hard to improve our cash input costs. I want to give the team a lot of credit for the work they've done there. And second thing is that, you know, our long-term agreement frameworks with our customers have had provisions to allow for such a scenario, and this has resulted in underutilization economics coming into the Company, which have helped.

當然，羅斯。是的，約翰，又來了。正如我們多次指出的那樣，我們的工廠利用率在 70 年代中低水平。鑑於我們的成本結構中固定成本水準相對較高，這對我們報告的總毛利率產生了重大影響。儘管如此，我們今年還是做了一些事情來提高毛利率。我們非常努力地提高現金投入成本。我想對團隊所做的工作給予高度讚揚。第二件事是，你知道，我們與客戶的長期協議框架已經制定了允許這種情況的條款，這導致了公司利用不足的經濟狀況，這有幫助。

As you've indicated we realized about $66 million of underutilization of revenue in the second quarter. We do expect that to tick down to roughly half that level in the second half of this year, and that is contributing to the gross profit margin guidance that we've given this morning. And to your other point, as we begin to see utilization come up, we should see that direct relationship reemerge and see revenue and gross profit margin moving in lockstep with one another over time, as utilization could come up. But just as a quick reminder, the rough rule of thumb here is that every 5 points of factory utilization drives about 200 basis points of variance in gross profit margin.

正如您所指出的，我們發現第二季的收入未充分利用約 6,600 萬美元。我們確實預計今年下半年這一水平將下降到大約一半，這有助於我們今天早上給出的毛利率指引。至於你的另一點，當我們開始看到利用率上升時，我們應該看到直接關係重新出現，並且隨著利用率的上升，收入和毛利率隨著時間的推移而同步變化。但簡單提醒一下，這裡的粗略經驗法則是，工廠利用率每提高 5 個點，就會導致毛利率產生約 200 個基點的差異。

And just finally, as I just zoom out and think about profitability in general, the Company is performing well with 13% operating margin in the second quarter and around 37% EBITDA margin. We've also touched on free cash flow a moment ago. So hopefully that helps on the gross profit margin story.

最後，當我縮小範圍並考慮整體獲利能力時，公司表現良好，第二季營業利潤率為 13%，EBITDA 利潤率約為 37%。剛才我們還談到了自由現金流。希望這對毛利率有幫助。

Yes, and look, I jumped in a little bit on the longer range. John said it right, as utilizations comes up, that's our biggest [knob]. But if you think about what we've done in almost two years now, the down cycle in our industry is: one, we've focused on winning new business for the future and we'll probably get into that a little bit later; and two, we've taken a lot of structural cost out of our business. This is the opportunity for us to redefine and enhance our efficiency. It's a never-ending journey. And so when we come back up, it's not when will gross margins come up, it's when we pass our high-water mark again in the future of $8.1 billion or $8.2 billion that we did in 2022, we will be a company that produces much better bottom-line results as a result of this.

是的，你看，我在更遠的距離跳了一點。約翰說得對，隨著利用率的提高，這是我們最大的[旋鈕]。但如果你想想我們近兩年來所做的事情，我們產業的下行週期是：第一，我們專注於為未來贏得新業務，我們可能會在稍後進入這個領域；第二，我們已經從業務中削減了大量的結構性成本。這是我們重新定義和提高效率的機會。這是一個永無止境的旅程。因此，當我們恢復過來時，不是毛利率什麼時候會上升，而是當我們在未來再次超過我們在2022 年達到的81 億美元或82 億美元的高水位線時，我們將成為一家生產更多產品的公司。

Yes, this is Niels. Maybe just one more point to add on where we're going moving forward. We've also in the last few years built a lot of fungibility into our factories, meaning we can run the process in multiple factories and thereby really optimize that utilization as we move forward over the next few years and you get to that $9 billion to $10 billion that Tom is talking about from a footprint standpoint.

是的，這是尼爾斯。也許只是再補充一點，以說明我們將繼續前進。在過去的幾年裡，我們還在我們的工廠中建立了許多可替代性，這意味著我們可以在多個工廠運行該流程，從而真正優化利用率，隨著我們在未來幾年的前進，您將獲得90 億美元湯姆從足跡的角度談論的是 100 億美元。

Our next question comes from the line of CJ Muse with Cantor Fitzgerald. Your line is now open.

我們的下一個問題來自 CJ Muse 和 Cantor Fitzgerald 的台詞。您的線路現已開通。

Yes, good morning. Thank you. I was hoping to just follow up on Ross's question on gross margin. So is the right framework to think about lower customer adjustments impacting gross margins in the quarter or is there a mix impact there as well?

是的，早安。謝謝。我希望能跟進羅斯關於毛利率的問題。那麼，考慮較低的客戶調整對本季毛利率的影響是否是正確的框架，或者是否也存在混合影響？

Yes, C.J., it's primarily the result of continued utilization in the low to mid 70s, as well as the factor you mentioned. I will note that as we've indicated, anticipation of continued sequential growth through the second half can afford us the opportunity for modest improvement in gross profit margin in the fourth quarter. So we would be looking for that as utilization can hopefully begin to increase a bit.

是的，C.J.，這主要是 70 年代中後期持續使用的結果，以及您提到的因素。我要指出的是，正如我們所指出的，下半年持續連續成長的預期可以為我們提供第四季度毛利率適度改善的機會。因此，我們會尋找這一點，因為利用率有望開始增加。

Very helpful. And then I guess maybe a combination question. So you know, in an earlier response, you talked about potential for excitement related to edge AI. And just curious, as you think about your conversations with your customers, what are they signaling to you, and when do you see that impacting, you know, the timing of raising your utilization rates?

很有幫助。然後我想也許是一個組合問題。所以你知道，在之前的回應中，你談到了與邊緣人工智慧相關的令人興奮的潛力。只是好奇，當您思考與客戶的對話時，他們向您發出了什麼信號，以及您何時看到這會影響提高使用率的時間？

So C.J., your question is when can edge AI increase production and utilization?

那麼，C.J.，您的問題是邊緣人工智慧何時可以提高產量和利用率？

Well, curious more about the conversations you're having today, build plans and then how you're thinking about the timing of being proactive and turning on your lines. I mean, do you have visibility into that in 2024, more of a 2025 story? Would love to hear how you're thinking about it.

好吧，對你今天正在進行的對話更加好奇，制定計劃，然後你如何考慮採取主動和打開線路的時機。我的意思是，您是否了解 2024 年（更多的是 2025 年的故事）？很想聽聽您的想法。

Yes, I think, look, the best way to talk about this how we're building our pipeline for future business. Timing is always going to be what it's going to be, but have you loaded your funnel, your pipeline, design wins, and for that I want to hand it over to Niels.

是的，我認為，看，這是談論我們如何為未來業務建立管道的最佳方式。時機總是會發生的，但你是否加載了你的漏斗、你的管道、設計勝利，為此我想把它交給尼爾斯。

Yes, C.J., this is Niels. So maybe let me talk a little bit about, you know, so edge AI obviously ties very, very closely to our IoT market segment. Design win momentum is quite strong, especially on our 22FDX node, which really is a very, very good fit. You know, 22FDX offers the best NVM performance, very low power and better connectivity. You've heard us talk about examples previously of 30% improvement on the connectivity side at half the power, and with the right NVM, and the right integration for the MCUs, less control MPU side.

是的，C.J.，我是尼爾斯。所以也許讓我談談，你知道，邊緣人工智慧顯然與我們的物聯網市場領域聯繫非常非常緊密。設計獲勝勢頭相當強勁，尤其是在我們的 22FDX 節點上，這確實非常非常適合。您知道，22FDX 提供最佳的 NVM 效能、極低的功耗和更好的連接性。您聽說過我們之前談論過的範例，即以一半的功耗實現連接方面的 30% 改進，並使用正確的 NVM 和 MCU 的正確集成，減少 MPU 方面的控制。

So the excitement and momentum is quite high. We're starting to see some very interesting AI accelerators being implemented. Some of these are domain-specific architectures that are within our customers' own IP and some of them are coming from from IP providers, but definitely starting to see that momentum build. Hard to say exactly when this is going to ramp. But I would personally speculate it's going to be as you start seeing a refresh cycle coming in on these end equipment applications, adding AI functionality in those products. So I hope that helps.

所以興奮感和氣勢還是相當高的。我們開始看到一些非常有趣的人工智慧加速器正在實施。其中一些是特定於領域的架構，位於我們客戶自己的 IP 內，其中一些來自 IP 供應商，但肯定已經開始看到這種勢頭的增強。很難說具體什麼時候會加速。但我個人推測，當你開始看到這些終端設備應用程式出現更新周期，在這些產品中添加人工智慧功能時，就會發生這種情況。所以我希望這會有所幫助。

Thanks so much.

非常感謝。

Our next question comes from the line of Chris Caso with Wolfe Research. Your line is now open.

我們的下一個問題來自 Wolfe Research 的 Chris Caso。您的線路現已開通。

Yes, thank you. Good morning. First question is on pricing and if you can give some color on where you expect ASPs for the year.

是的，謝謝。早安.第一個問題是關於定價，以及您是否可以說明您對今年平均售價的預期。

And then as a follow on to that, if you can give some commentary and I think you did in some of the prepared remarks on some of the ASP trends by segment. And recognizing ASP isn't necessarily a measure of profitability, but just some sense of as you're signing new agreements, new engagements with customers, how that pricing has trended as compared to the last cycle?

接下來，您是否可以發表一些評論，我認為您在針對某些 ASP 趨勢（按細分市場）準備的評論中做了一些評論。認識到 ASP 並不一定是盈利能力的衡量標準，而只是當您簽署新協議、與客戶進行新合作時的某種感覺，與上一個週期相比，定價趨勢如何？

Very good, Chris. So let's start with what we're seeing. We're seeing stable pricing environment, and we're not alone. Our two biggest competitors have also reported stable pricing. And I think there's a lot of good reasons for that. You see these very same competitors investing in capacity. This capacity doesn't come for free. They'll need to have pricing that reflects getting reasonable returns, or they won't want to make these investments. This positions the industry, them and all foundries, including GF, to be in a constructive pricing environment going forward. Look, this industry is going to double in the next -- by the end of the decade. It's going to need capacity and capacity is going to need returns.

非常好，克里斯。那麼讓我們從我們所看到的開始。我們看到了穩定的定價環境，而且我們並不孤單。我們的兩個最大的競爭對手也報告了穩定的價格。我認為這有很多充分的理由。你會看到這些競爭對手都在投資產能。這種能力並不是免費的。他們需要有反映獲得合理回報的定價，否則他們就不想進行這些投資。這使得整個產業、他們以及包括格芯在內的所有代工廠都處於一個建設性的定價環境中。看，這個行業在接下來的十年中將翻倍——到本世紀末。它需要容量，而容量也需要回報。

I'd also like to -- I think you touched on it. Let me embellish a little bit. We drive -- you're right -- to gross margins, and not on ASP. In fact, given the range of technologies, our ASPs are not always reflective of our gross margin. So what you'll see from GF is on any given quarter, you can see ASPs move around in the low single digits, and that's no reflection on profitability but more about the mix. And then John talked about how important utilization is in getting our business, our factories loaded and what it will do for the profitability of those very same ASPs.

我也想——我想你已經談到了這一點。讓我稍微修飾一下。我們推動——你是對的——毛利率，而不是平均售價。事實上，考慮到技術的範圍，我們的平均售價並不總是反映我們的毛利率。因此，您將從GF 看到的情況是，在任何給定季度，您都可以看到平均售價在較低的個位數內波動，這並不反映盈利能力，而是更多地反映了混合情況。然後約翰談到了利用率對於我們的業務、工廠的負荷有多麼重要，以及它將對這些 ASP 的獲利能力產生什麼作用。

Did you have a follow-up, Chris?

克里斯，你有後續行動嗎？

Yes, I do. Just follow-up is with regard to CapEx and understanding right now, you're managing for cash flow. Obviously, utilization is low and you're going to want to bring that up. What's sort of the thought process going forward on when CapEx needs to start coming back? Is that going to be driven at some point by technology needs that you're going to have new engagements and new processes that customers require that's going to drive some CapEx? Or is this going to be sort of low levels of CapEx until we get utilization to a certain point?

是的，我願意。後續行動是關於資本支出和了解，您現在正在管理現金流。顯然，利用率很低，您需要提高它。當資本支出需要開始復原時，接下來的思考過程是什麼樣的呢？這是否會在某個時候受到技術需求的驅動，您將擁有客戶所需的新業務和新流程，從而推動一些資本支出？或者，在我們的使用率達到某一點之前，資本支出是否會處於較低水準？

I do -- maybe it's because of the capital intensity of this industry, somehow we've convinced ourselves that $700 million is modest CapEx. This is a capital-intensive industry. We're spending $700 million this year. I think the difference is where we are investing.

我確實這麼認為——也許是因為這個行業的資本密集度，不知何故，我們說服自己 7 億美元是適度的資本支出。這是一個資本密集型產業。今年我們花了 7 億美元。我認為差別在於我們投資的地方。

So there's three areas I think about: innovation, enablement of these new features, and then just adding more of what we can do, base capacity. So we've said we have enough capacity on our base to grow our revenues to $9.5 billion, $10 billion. And I'm going to get back to that in a moment. Where we are investing now and in the future, until we get to that level of utilization, is in differentiation. When we bring a new feature in the marketplace, it may require new process techniques and we'll have to invest in the capacity to do that, not in the overall capacity to create more wafers, but to bring that feature to the marketplace. And that's a big part of that $700 million that we spent.

因此，我考慮了三個領域：創新、啟用這些新功能，然後添加更多我們能做的事情，即基本容量。所以我們說過我們有足夠的能力將我們的收入增加到 95 億美元、100 億美元。我稍後會回到這個話題。我們現在和未來投資的地方，直到我們達到這樣的利用率水平，都是在差異化方面。當我們向市場推出新功能時，它可能需要新的製程技術，我們必須投資於實現這一目標的能力，不是製造更多晶圓的整體能力，而是將該功能推向市場。這是我們花費的 7 億美元中的很大一部分。

Now, back to this $9.5 billion to $10 billion. I'll go all the way back to the investment thesis of our roadshow in 2021. We said there was something really important about reaching a $9.5 billion, $10 billion market in revenue. We wouldn't have to trade off free cash flow for investment in growth, that we get to a point of scale where we can have both. We can invest in meaningful growth and at the same time, produce free cash flow.

現在，回到這 95 億至 100 億美元。我將一路回到我們 2021 年路演的投資主題。我們不必為了成長投資而犧牲自由現金流，這樣我們就可以達到兩者兼得的規模。我們可以投資有意義的成長，同時產生自由現金流。

And so that's how I would think about what our investment profile is going to be over the coming years. When we do invest CapEx, it's going to be for differentiation and bringing new, better features to the marketplace. We start getting close to $9.5 billion, $10 billion and then start investing in new capacity, but with a different financial model for the Company.

這就是我對未來幾年我們的投資狀況的看法。當我們投資資本支出時，將是為了實現差異化並為市場帶來新的、更好的功能。我們開始接近 95 億美元、100 億美元，然後開始投資新產能，但公司採用不同的財務模式。

If I may add to that, and again, I mentioned fungibility early on. It's a very important part of our manufacturing strategy. Examples here would be between our Singapore fab and our Dresden fab. We have a very high degree of fungibility across technologies. Now we're adding the same thing, you know, with our Malta fab and our Dresden fab. And lastly, you know, you have the Singapore fab and the Burlington fab having good fungibility. A lot of this comes from a manufacturing strategy and development technology strategy of really trying to utilize as many of the same tools as possible. So as we add new features, we try to do it within the set of standard tools that we have. And that's a big part of the reason for how we can get more lean on the CapEx for the next few years until we hit that $9.5 billion to $10 billion that Tom mentioned.

如果我可以補充一下，我很早就提到了可替代性。這是我們製造策略的一個非常重要的部分。這裡的例子是我們的新加坡工廠和德勒斯登工廠之間。我們在各種技術之間具有非常高的可替代性。現在，我們在馬耳他工廠和德累斯頓工廠添加了相同的東西。最後，你知道，新加坡工廠和伯靈頓工廠有良好的替代性。這很大程度上來自於真正嘗試利用盡可能多的相同工具的製造策略和開發技術策略。因此，當我們添加新功能時，我們嘗試在我們擁有的一組標準工具內完成它。這是我們如何在未來幾年內更加精簡資本支出的一個重要原因，直到我們達到 Tom 提到的 95 億至 100 億美元。

Helpful. Thank you.

有幫助。謝謝。

Our next question comes from the line of Joseph Moore with Morgan Stanley. Your line is now open.

我們的下一個問題來自約瑟夫摩爾與摩根士丹利的對話。您的線路現已開通。

Great. Thank you. I wonder if you could talk about how customer conversations are with regards to future long-term agreements? Obviously, wafers are pretty available right now, but how much are people thinking about what this might look like a couple of years from now? And how are you doing with sort of securing longer-term agreements?

偉大的。謝謝。我想知道您能否談談關於未來長期協議的客戶對話情況如何？顯然，晶圓現在很容易買到，但是人們有多少人在思考幾年後晶圓會是什麼樣子呢？你們在達成長期協議方面進展如何？

Yes, Joe, I think the heading for that is Are LTAs Still Fashionable? And maybe you just look back at how this all came together. In 2021, it wasn't GF that was instigating long-term agreements. It was our customers. Our customers are in a world where certainty is important for them. Certainty, durability, and of course, their profitability. And what they were looking to do was to develop where they knew they had supply and knew they had certainty of pricing, so they could plan their business. So I don't think these long-term agreements are something of the past. It's how do they get modified going forward?

是的，喬，我認為標題是“長期協議仍然流行嗎？”也許你只是回顧一下這一切是如何結合在一起的。 2021 年，促成長期協議的不再是 GF。這是我們的客戶。在我們的客戶所處的世界中，確定性對他們來說非常重要。確定性、耐用性，當然還有獲利能力。他們想要做的是在他們知道有供應並且知道他們有定價確定性的地方進行開發，這樣他們就可以規劃他們的業務。所以我不認為這些長期協議已經成為過去。未來它們將如何修改？

So I see two things. For GF, a lot of the LTAs we wanted to sign were tied to the investments we were going to make to create new capacity. And for that, we really wanted more certainty and durability. And now that we've put that capacity online and we've talked about it -- a couple of questions today about the level of capacity and the revenue we could support. We're less inclined to requiring LTAs to do business with our customers.

所以我看到兩件事。對於 GF 來說，我們想要簽署的許多長期協議都與我們為創造新產能而進行的投資相關。為此，我們確實想要更多的確定性和耐用性。現在我們已經將該容量放到網上，並且我們已經討論了它 - 今天有幾個關於容量水平和我們可以支持的收入的問題。我們不太願意要求長期協議與我們的客戶開展業務。

But if I go back to this theme of certainty and durability, really what we're learning is certain end markets that have long product cycles are the ones that want to be locked in longer term. So if you think of refreshing smart mobile devices that's every year, maybe those customers are not as interested in a long-term agreement, because of the dynamics of do they win a socket, do they not win a socket. So when customers sign up in, say, Industrial or more importantly in Automotive, these are long cycles and they're much more interested in planning a strategic business or a longer lifecycle business. I'd tell you, the proof point for me is the largest LTA we've signed at the end of last year/beginning of this year, somewhere in there, was direct -- exactly at the Automotive market for our next 10-year play for that particular product.

但如果我回到確定性和持久性這個主題，我們真正了解到的是，某些產品週期較長的終端市場是那些希望長期鎖定的市場。因此，如果你想到每年都會更新智慧型行動設備，也許這些客戶對長期協議並不感興趣，因為他們是否贏得了插座，他們是否贏得了插座。因此，當客戶註冊工業或更重要的汽車產業時，這些都是長週期，他們對規劃策略業務或更長生命週期的業務更感興趣。我想告訴你，對我來說，證據就是我們去年年底/今年年初簽署的最大的長期協議，是直接的——正是我們下一個十年的汽車市場玩那個特定的產品。

So that's how I think about LTAs.

這就是我對長期協議的看法。

Yes, Joe, this is John, just a quick update for you. We've talked about some of our underutilization restructurings and so on. But I just want to flag that we continue to have about $18 billion of lifetime revenue attached to existing long-term agreements. So this is something that continues to be a very important part of our go-to-market strategy.

是的，喬，我是約翰，我只是向您簡單介紹一下最新情況。我們已經討論了一些未充分利用的重組等等。但我只想指出，我們仍然有約 180 億美元的終身收入附加在現有的長期協議上。因此，這仍然是我們進入市場策略的一個非常重要的部分。

Yes, that's roughly two-thirds of what we started with in this journey.

是的，這大約是我們在這趟旅程中開始的三分之二。

Did you have a follow-up, Joe?

喬，你有後續行動嗎？

In terms of the acquisition of the gallium nitride capability, you guys already have kind of some nice RF capabilities with SOI. Can you just talk about your aspirations there, and how broad-based could you be in these kind of unique substrate capabilities?

在獲取氮化鎵能力方面，你們已經透過 SOI 擁有了一些不錯的 RF 能力。您能否談談您的願望，以及您在這些獨特的基材能力方面的基礎有多廣泛？

Yes, this Niels. Let me let me take a first shot at that one. So the acquisition of Tagore was really focused on the power segment of GaN. We also have efforts going on RF side of GaN, but that is not related to this acquisition. So the reason we went ahead and acquired GaN is really because they had a very strong set of skills and IP around how to do a higher level of integration of the GaN devices, meaning you can integrate the safety function, the level shifters drivers, et cetera, et cetera, with the GaN device, which then again, returns that you can make much more reliable and much more compact devices [at the] time.

是的，這個尼爾斯。讓我先試試看。所以收購泰戈爾其實是針對GaN的功率領域。我們也在 GaN 的 RF 方面做出了努力，但這與此次收購無關。因此，我們繼續收購 GaN 的原因實際上是因為他們擁有一套非常強大的技能和 IP，圍繞如何對 GaN 裝置進行更高級別的集成，這意味著您可以集成安全功能、電平轉換器驅動器等諸如此類，等等，使用GaN 裝置，這再次表明您可以製造更可靠、更緊湊的裝置。

So with the addition of Tagore, our strategy is a little bit of -- a little bit different than most of the rest of the industry. When you see the rest of the industry, they're focusing on building more traditional devices like you can compare them to like standard IGBTs or standard MOSFETs, you know, simple switches. Our strategy is an integrated device strategy, more like a BCD play where we enable this higher level of analog and digital integration with a very, very highly efficient GaN power switch. And what that in turn enables our customers to do is to build more differentiated devices, higher type of margin devices. You can think of this as an analogy to the early days when the MOSFETs came out and then you got the integration happening on the BCD and you started seeing the margin from the IDMs on the integrated devices probably in the 65%, 70% range versus the standalone devices in probably closer to a 30% asymptotic value, right?

因此，隨著泰戈爾的加入，我們的策略與業內大多數其他公司略有不同。當您看到行業的其他公司時，您會發現他們專注於建立更傳統的設備，例如您可以將它們與標準 IGBT 或標準 MOSFET（簡單的開關）進行比較。我們的策略是整合裝置策略，更像是 BCD 遊戲，我們透過非常非常高效的 GaN 功率開關實現更高水準的類比和數位整合。這反過來又使我們的客戶能夠製造更具差異化的設備、更高類型的利潤設備。您可以將此視為早期 MOSFET 出現的類比，然後您在 BCD 上進行集成，您開始看到集成器件上 IDM 的裕度可能在 65%、70% 範圍內，而獨立設備可能接近30% 漸近值，對嗎？

So this is a more differentiated play we're targeting in addition to the switch itself. Of course, we're also shipping -- developing and shipping the switch by itself. But this integrated play is where we think there's a substantial differentiated business and revenue for GF to have.

因此，除了交換器本身之外，我們的目標是更差異化的遊戲。當然，我們也正在出貨——自行開發和出貨交換器。但我們認為，這種綜合業務是格芯可以擁有顯著差異化業務和收入的地方。

Yes, and look, on the RF side, Joe, as you mentioned, we're not. We're focused on GaN for RF as well. We're doing it with a different set of partnerships. And look, when we start to look ahead what the specifications and requirements for FR3 are going to be, we believe, a strong play for the -- at least for the power amplification, power amps for that solution, that GaN will be an important part of that.

是的，看看，在射頻方面，喬，正如您所提到的，我們不是。我們也專注於射頻領域的 GaN。我們正在透過不同的合作夥伴來做到這一點。看，當我們開始展望 FR3 的規格和要求時，我們相信，至少對於該解決方案的功率放大、功率放大器來說，GaN 將發揮重要作用。

Our next question comes from the line of Vivek Arya with Bank of America Securities. Your line is now open.

我們的下一個問題來自 Vivek Arya 與美國銀行證券公司的聯繫。您的線路現已開通。

Thanks for taking my question. John, you mentioned meaningful growth in automotive for 2024. I was hoping you could contrast that with just the environment in the automotive semiconductor industry, lower auto production and somewhat more muted trends among some of your automotive semi customers. So what's giving you the optimism relative to the industry and what kind of checks do you have in place to make sure that your shipments are aligned with the automotive sell-through?

感謝您提出我的問題。 John，您提到 2024 年汽車產業將出現有意義的成長。那麼，是什麼讓您對該行業感到樂觀？

Yes, I think there's a real important difference between what GF is seeing and maybe you're seeing more broad-based. So first of all, let's just talk about 2024. I think that's where your question started.

是的，我認為 GF 所看到的情況與您可能看到的更廣泛的情況之間確實存在重要差異。首先，我們來談談 2024 年。

Look, we're more than halfway through the year. We have wafers in the line, we have POs. We're confident we're going to deliver against what we've said all along, that Automotive is going to have meaningful growth year on year.

瞧，今年已經過半了。我們有晶圓片在生產線上，我們有採購訂單。我們相信，我們將兌現我們一直以來所說的承諾，即汽車業務將逐年實現有意義的成長。

Your question is a little bit more of a why. Why are we seeing it? And I think the best way to explain this is we started this journey five to seven years ago, where we were winning that next generation of technology platforms. And what you're really seeing for GF is we're ramping these new applications, whether to microcontrollers or sensors or radar devices. These are replacing older devices in cars. So you don't need to see more cars being sold for this replacement to take place. You don't need to see even more content going into cars, although those two things are happening. This is just the next refresh for us. And that's unique to GF because it's all new devices for GF. Remember, in 2020, this business was under $100 million for us. So we're part of a generation of refresh of technology based on our differentiated technology. And so given that, and given the fact of the kinds of design wins we won last year and continue to win this year, we believe Automotive is going to continue to be a growth engine for GF for the years to come.

你的問題更多的是一個為什麼。為什麼我們會看到它？我認為解釋這一點的最好方法是我們在五到七年前就開始了這趟旅程，當時我們贏得了下一代科技平台。對於 GF，您真正看到的是我們正在推動這些新應用的發展，無論是微控制器、感測器還是雷達設備。這些正在取代汽車中的舊設備。因此，您不需要看到更多的汽車被出售來進行這種更換。你不需要看到更多的內容進入汽車，儘管這兩件事正在發生。這只是我們的下一次刷新。這對 GF 來說是獨一無二的，因為這都是 GF 的新設備。請記住，2020 年，我們的這項業務價值不到 1 億美元。因此，我們是基於我們差異化技術的新一代技術更新的一部分。因此，考慮到我們去年贏得的設計勝利以及今年繼續獲勝的事實，我們相信汽車業務將繼續成為 GF 未來幾年的成長引擎。

And then the last thing I would just tell everybody, a bit of a cautionary tale, is there is nonlinearity in all end markets, so looking at any given quarter and multiplying by four and saying that's what the full year looks like is a little bit hazardous, I would say, and it's more think about when we tell you -- we give you on a year-over-year basis, it takes some of that lumpiness out.

然後我要告訴大家的最後一件事，一個有點警示性的故事，是所有終端市場都存在非線性，因此觀察任何給定的季度並乘以四，然後說這就是全年的樣子，有點像我想說，這很危險，當我們告訴你時，你應該多想想——我們逐年給你信息，這會消除一些不穩定性。

And then, Tom, if I may add, you know, I just want to emphasize that our momentum is high, both across ACE and ICE. So really we're not that dependent as maybe some of our competitors on the EV consumption. In addition, I just want to highlight the design momentum we have in 22FDX within the radar space. It really is becoming the technology platform of choice for radar. And we have had several very meaningful design wins in the last few months across 22FDX, and there will be more about that later.

然後，Tom，如果我可以補充一點的話，我只是想強調，我們在 ACE 和 ICE 方面的勢頭都很強勁。所以實際上我們並不像我們的一些競爭對手那樣依賴電動車的消費。此外，我只想強調我們 22FDX 在雷達領域的設計動力。它確實正在成為雷達的首選技術平台。在過去的幾個月裡，我們在 22FDX 上獲得了幾項非常有意義的設計勝利，稍後還會有更多相關內容。

Did you have a follow up to that?

你對此有跟進嗎？

Yes, thank you, Sam. So on the topic of gross margin, so how does your balance sheet inventory kind of figure in the path of improving utilization? I understand some of the inventory might be for some strategic buys from the past, but just how should we think about the shape of your balance sheet inventory and how that aligns with the target to improving gross margin?

是的，謝謝你，山姆。那麼，就毛利率而言，您的資產負債表庫存在提高利用率方面有何表現？我知道一些庫存可能用於過去的一些策略性購買，但我們應該如何考慮資產負債表庫存的形狀以及它如何與提高毛利率的目標保持一致？

Yes, Vivek, this is John. So two quick points there. One is we'll continue to prepare ourselves for a recovery in the market and follow our demand signal in terms of how we're accumulating inventory and managing inventory. And second point, we have taken some opportunistic steps in terms of raw materials to enter into contracts and suppliers to take advantage of the current market conditions. So we're being smart about this and also in light of our free cash flow objectives, but also where we can see some opportunities to utilize some working capital to improve our performance, we will look at that.

是的，維韋克，這是約翰。所以有兩個要點。一是我們將繼續為市場復甦做好準備，並在如何累積庫存和管理庫存方面遵循我們的需求訊號。第二點，我們在原料簽訂合約和供應商方面採取了一些機會主義措施，以利用當前的市場狀況。因此，我們對此很聰明，並且考慮到我們的自由現金流目標，而且我們可以看到一些機會利用一些營運資金來提高我們的業績，我們會考慮這一點。

Britney, we will take one last question. Thank you.

布蘭妮，我們將回答最後一個問題。謝謝。

Our last question comes from the line of Harlan Sur with JPMorgan. Your line is now based on.

我們的最後一個問題來自哈蘭·蘇爾 (Harlan Sur) 與摩根大通 (JPMorgan) 的對話。您的線路現在基於。

Good afternoon and thanks for taking my question. If I exclude the high margin on the visualization volume, adjusting fees in the June quarter, it looks like core product gross margins were about 22%, right, in June. So flat sequentially, which implies utilization stayed flat, which is consistent with what you've said. Given the gross margin guidance for September and on the utilization piece, it looks like your gross margin just stepping up a bit to about 23%, which means either utilizations are stepping up a bit or maybe it's higher volumes or mix. Maybe you can give us a little bit of color there. But more importantly, given what appears to be gradually improving end market environment across your segments, how should we think about gross margins directionally heading into the December quarter, since it's really tough to kind of model the underutilization fees?

下午好，感謝您提出我的問題。如果我排除視覺化量的高利潤率，以及 6 月季度的調整費用，那麼 6 月核心產品的毛利率約為 22%，對吧。連續持平，這意味著利用率保持持平，這與您所說的一致。考慮到 9 月的毛利率指引和利用率部分，您的毛利率似乎只是略有上升，達到 23% 左右，這意味著利用率略有上升，或者可能是銷量或混合數量增加。也許你可以給我們一點顏色。但更重要的是，考慮到各細分市場的終端市場環境似乎正在逐漸改善，我們應該如何定向進入 12 月季度的毛利率，因為對未充分利用費用進行建模確實很困難？

And then I had a follow-up

然後我有一個後續行動

Yes, you bet. So big picture, we set out the year viewing our non-IFRS gross margin outlook as being in the mid 20s, and we've been delivering on that, and that's where we expect to to be for fiscal 2024. I did note previously on this call the possibility for some modest improvement in fourth quarter gross margin. As we can see, utilization tickup would be the ideal case there. And then as we look ahead, of course, seeing utilization come up further into 2025 would be the next opportunity for us to see more improvement in gross margin.

是的，你敢打賭。從大局來看，我們將今年的非國際財務報告準則毛利率展望定為 20 多歲，我們一直在實現這一目標，這就是我們對 2024 財年的預期。季度毛利率有可能略有改善。正如我們所看到的，利用率上升將是理想的情況。當然，當我們展望未來時，看到利用率在 2025 年進一步上升將是我們看到毛利率進一步改善的下一個機會。

You had a follow up, Harlan?

你有後續行動嗎，哈倫？

Yes. Tom, you know, the team obviously been a big beneficiary as your customers think about the diversity of their supply chain, also your differentiated technology. I think the extension of the Infineon partnership earlier this year was a great example of that, right? A lot of it built on your differentiated MCU technology, but there have been some partnerships which I feel the GF team was set up well for, but maybe overlooked and that's one of your customers, NXP, considered one of your larger MCU customers. I mean, they recently announced a partnership with Vanguard, right, to sort of jointly build out the Singapore fab for next-generation MCUs. I think targeting technologies, which they were doing externally, presumably some of that with GF and so your Singapore fabs, your new 7h module combined with the Malta expansion, I thought that that could have supported that customer and its MCU requirements. So maybe compare and contrast the very different moves by two of your large auto MCU customers.

是的。湯姆，你知道，當你的客戶考慮他們供應鏈的多樣性以及你的差異化技術時，團隊顯然是一個很大的受益者。我認為今年早些時候延長與英飛凌的合作關係就是一個很好的例子，對吧？其中許多都建立在您差異化的MCU 技術之上，但我認為GF 團隊已經建立了一些合作夥伴關係，但可能被忽視了，這是您的客戶之一，NXP，被認為是您較大的MCU 客戶之一。我的意思是，他們最近宣布與 Vanguard（右）建立合作關係，共同建造下一代 MCU 的新加坡晶圓廠。我認為他們在外部進行的目標技術，大概是與 GF 和新加坡工廠、新的 7h 模組以及馬耳他擴張相結合的一些技術，我認為這可以支持該客戶及其 MCU 需求。因此，也許可以比較和對比您的兩個大型汽車 MCU 客戶的截然不同的舉動。

Well, let's talk right to this NXP/Vanguard. That didn't come as a surprise to us. We worked very closely with NXP. You need to understand what that capacity is that's being put on. I'll describe it as legacy bulk undifferentiated low-margin CMOS business. We weren't interested in it and neither was our customer wanting to redesign onto a platform for us. Why would they invest and we invest?

好吧，讓我們來談談這個 NXP/Vanguard。這對我們來說並不意外。我們與恩智浦密切合作。您需要了解正在發揮的能力。我將其描述為傳統的大宗無差異化低利潤 CMOS 業務。我們對此不感興趣，我們的客戶也不想為我們重新設計平台。為什麼他們要投資而我們要投資？

By the way, we weren't alone in that decision. TSMC, whose platform this technology is built on, didn't want to invest in it either. It was not good business for them and for what they tried to deliver. Remember, GF wants to deliver differentiated technology, not second source business. So given this, we chose not to make the investment. Vanguard, who wants to get into 300mm, is making that investment. But there's no overlap to business that we've lost or could have won with this relationship. And by the way, speaking of NXP, our business continues to grow year over year with them, in our deep partnership with them.

順便說一句，我們並不是唯一做出這個決定的人。這項技術所基於的平台台積電也不想投資。對於他們和他們試圖提供的東西來說，這不是一件好事。請記住，格芯希望提供差異化技術，而不是第二來源業務。因此，考慮到這一點，我們選擇不進行投資。 Vanguard 想要進入 300mm 領域，因此正在進行這項投資。但我們透過這種關係失去或可能贏得的業務並沒有重疊。順便說一句，說到恩智浦，透過與他們的深入合作，我們的業務逐年持續成長。

I appreciate that. Thanks, Tom.

我很感激。謝謝，湯姆。

This concludes the question-and-answer session. I would now like to turn it back to Sam Franklin for closing remarks.

問答環節到此結束。現在我想請薩姆·富蘭克林作結束語。

Thank you, Britney. Thank you, everyone, for joining us on the call today. Appreciate all the questions, and apologies we couldn't get through the whole list, but I know that we'll be talking to a lot of you over the next coming weeks. So thanks again, and look forward to speaking again soon.

謝謝你，布蘭妮。謝謝大家今天加入我們的電話會議。感謝所有的問題，很抱歉我們無法完成整個列表，但我知道我們將在接下來的幾週內與你們中的許多人交談。再次感謝，並期待很快再次發言。

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

感謝您參加今天的會議。這確實結束了該程式。您現在可以斷開連線。