格芯 (GFS) 2024 Q3 法說會逐字稿

Good day, and thank you for standing by.

美好的一天，感謝您的支持。

Welcome to the GlobalFoundries conference call to review third quarter of fiscal year 2024 financial results.

歡迎參加 GlobalFoundries 電話會議，回顧 2024 財年第三季財務表現。

(Operator Instructions)

（操作員說明）

I would now like to hand the conference over to your first speaker today, Sam Franklin, VP, 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人，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, and good morning, everyone, and welcome to GlobalFoundries third quarter of 2024 earnings call. On the call with me today are Dr. Thomas Caulfield, John Hollister, Chief Financial Officer, and Niels Anderskouv, Chief Business Officer.

謝謝業者，大家早上好，歡迎參加 GlobalFoundries 2024 年第三季財報電話會議。今天與我通話的有 Thomas Caulfield 博士、財務長 John Hollister 和首席商務官 Niels Anderskouv。

A short while ago, we released our third-quarter financial results, which are available on our website at investors.gf.com, along with today's accompanying slide presentation. This call is being recorded and a replay will be made available on our Investor Relations web page. During this call, we will present both IFRS and non-IFRS financial measures. The most directly comparable IFRS measures and reconciliations of non-IFRS measures are available in today's press release and accompanying slides. Please note 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, games such as believe, expect, intend, anticipate, 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.

不久前，我們發布了第三季度財務業績，可在我們的網站 Investors.gf.com 上查看該業績以及今天隨附的幻燈片演示。本次電話會議正在錄音，並將在我們的投資者關係網頁上提供重播。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。請注意，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。此類陳述可以透過術語、遊戲（如相信、期望、打算、預期、可能）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有重大差異的因素的詳細資訊。

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 29th, 2024.

請參閱我們今天發布的新聞稿以及我們向SEC 提交的文件中所述的風險和不確定性，包括我們於2024 年4 月29 日向SEC 提交的20-F 表格年度報告中「風險因素」標題下的部分。

We begin today’s call with Tom, providing a summary update on the current business environment and technologies. Neil's will then discuss our recent design wins and highlights across the end markets, following which John will provide details on our third-quarter results and also provide fourth quarter 2024 guidance. We will then open the call for questions. With Tom, John, Neils. We request that you please limit your questions to one with one follow-up.

我們從今天與 Tom 的通話開始，提供有關當前業務環境和技術的最新摘要。然後，Neil's 將討論我們最近在終端市場的設計成果和亮點，隨後 John 將提供有關我們第三季度業績的詳細信息，並提供 2024 年第四季度的指導。然後我們將開始提問。與湯姆、約翰、尼爾斯。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 third quarter earnings call. Our 3Q results reflect another consistent quarter execution towards our strategic objectives as we continue to partner with our customers to deliver feature rich products in the geographies whether they need it using our essential chip technologies. In the third quarter, we delivered revenue at the high end of the guidance range meaningful year over year free cash flow generation and gross margins, consistent with our commentary from the start of the year in an environment of lower factory utilization levels.

謝謝山姆，歡迎大家參加我們的第三季財報電話會議。我們的第三季業績反映了我們對策略目標的另一個一致的季度執行，我們繼續與客戶合作，在不同地區提供功能豐富的產品，無論他們是否需要使用我們的基本晶片技術。第三季度，我們的收入處於指導範圍的高端，與去年同期相比自由現金流產生和毛利率有意義，這與我們在工廠利用率較低的環境下年初的評論一致。

Although we remain mindful of the near term demand and utilization dynamics impacting the end markets we serve. These results reinforce our prior commentary that the first quarter was a low point for our revenue in 2024 and that we will deliver sequential quarter over quarter top line growth throughout the year. This end, we are reporting revenue of $1.739 billion for the quarter, which is roughly 7% sequential quarterly revenue growth. General later covered that we are guiding the continuation of sequential growth in the fourth quarter. We focus on diversifying and differentiating our product portfolio and broadening our customer base. I am also encouraged by the rate and pace and the size of the business opportunity of new design wins we closed in 3Q as well as the funnel of opportunities we have built in partnership with our customers across all the end markets that we serve. Year-to-date, approximately 90% of our design wins are sole source opportunities. These are important proof points of our relentless focus on innovation and meeting the needs of our customers.

儘管我們仍然關注影響我們服務的終端市場的近期需求和利用動態。這些結果證實了我們先前的評論，即第一季是我們 2024 年收入的低點，我們將在全年實現逐季度環比的營收成長。為此，我們報告本季營收為 17.39 億美元，比季度營收季增約 7%。 General 後來表示，我們正在指導第四季繼續實現環比成長。我們專注於使我們的產品組合多樣化和差異化，並擴大我們的客戶群。我也對我們在第三季完成的新設計業務機會的速度、速度和規模以及我們與我們服務的所有終端市場的客戶合作建立的機會管道感到鼓舞。今年迄今為止，我們大約 90% 的設計勝利都是獨家來源機會。這些都是我們不懈地致力於創新和滿足顧客需求的重要證明。

Just recently, we announced the key design win with NXP on our 22FDX platform. We developed our 22FDX platform for a wide set of applications serving a range of end markets, including AI and intelligence at the edge application. The performance benefits are purpose built by optimizing energy management to deliver up to 50% higher performance and 70% lower power or versus other planar seamless technologies. I will comment further in his prepared remarks that this partnership is a testament to what matters most to our customers, power and performance solutions delivery with the resiliency of GF's manufacturing execution and global footprint. Our global manufacturing footprint uniquely positions GF to support our customers' desire to source from the U.S., Europe and Asia across all the critical end markets we serve. These design wins are consistent with our strategy to diversify our technology footprint and markets served and breadth of customer service in our multiple New York fab.

就在最近，我們宣佈在 22FDX 平台上贏得了 NXP 的關鍵設計。我們開發了 22FDX 平台，用於服務一系列終端市場的廣泛應用，包括邊緣應用的人工智慧和智慧。效能優勢是透過優化能源管理而專門建造的，與其他平面無縫技術相比，效能提高了 50%，功耗降低了 70%。我將在他準備好的發言中進一步評論說，這種合作夥伴關係證明了對我們的客戶來說最重要的事情，即透過 GF 製造執行的彈性和全球足跡交付電源和性能解決方案。我們的全球製造足跡使 GF 能夠滿足客戶在我們服務的所有關鍵終端市場從美國、歐洲和亞洲採購的願望。這些設計勝利與我們的策略是一致的，即使我們的技術足跡和服務的市場多樣化，以及我們在紐約多個工廠提供的客戶服務的廣度。

We remain on track to transport capacity across 20 nanometer to 28 nanometer and 40 nanometer offerings into the Malta facility over the Company years. Upon completion of these transfers, Walter will offer our customers one of the most diversified family solutions here in the US to complement the 12 nanometer FinFET office Ally and silicon photonic platforms that are already manufactured there. Our silicon photonics product line physicians fab a beyond diversification, patient as data center bandwidth and connectivity requirements continue to rapidly increase. GF's monolithic solution is well positioned to win next generation applications that hyperscalers, leading fabless companies and startups in this phase.

多年來，我們一直致力於將 20 奈米到 28 奈米和 40 奈米產品的產能輸送到馬耳他工廠。完成這些轉讓後，瓦爾特將為我們的客戶提供美國最多元化的系列解決方案之一，以補充已在美國製造的 12 奈米 FinFET 辦公室 Ally 和矽光子平台。我們的矽光子產品線醫師製造超越多樣化，耐心地隨著資料中心頻寬和連接需求不斷快速增加。格芯的整體解決方案完全有能力贏得超大規模企業、這一階段領先的無晶圓廠公司和新創公司的下一代應用。

Before I pass it over to Niels to discuss our end markets in design win activity, let me now review our third quarter results, which John will do discuss in more detail in his commentary.

在我將其交給尼爾斯討論我們在設計獲勝活動中的終端市場之前，讓我現在回顧一下我們第三季度的業績，約翰將在他的評論中更詳細地討論這一點。

As mentioned earlier, revenue in the third quarter increased sequentially to $1.739 billion, which was at the high end of our guidance range. We reported non-IFRS. gross margin of 24.7% in the quarter, which exceeded the midpoint of our guidance range. We delivered non-IFRS diluted earnings per share of $0.41, which exceeded the high end of our guidance range. I'm also pleased to report another quarter of strong year over year free cash flow generation. Cash flow generation remains a long-term objective for driving the company towards a sustainable foundry expansion model and creating long-term value for our shareholders. We are well on our way to this goal, and we have delivered $779 million of non-IFRS, adjusted free cash flow in the year to date. For the full year 2024, we still anticipate approximately three times growth that this metric compared to 2023. Free cash flow is important metric for our business and as our cash balance continues to grow in our total leverage reduces, we intend to consider a range of capital allocation strategies. In conclusion, our third quarter results reflect good progress towards our long-term strategic goals.

如前所述，第三季營收季增至 17.39 億美元，處於我們指引範圍的高端。我們報告了非 IFRS。本季毛利率為 24.7%，超過了我們指引範圍的中位數。我們的非 IFRS 攤薄每股收益為 0.41 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的自由現金流同比強勁增長。現金流生成仍然是推動公司走向永續代工擴張模式並為股東創造長期價值的長期目標。我們正在努力實現這一目標，今年迄今為止，我們已經交付了 7.79 億美元的非 IFRS 調整後自由現金流。對於2024 年全年，我們仍然預計該指標與2023 年相比將增長約三倍。打算考慮一系列資本配置策略。總之，我們第三季的業績反映出我們在實現長期策略目標方面取得了良好進展。

I am tremendously proud of our teams around the world is executed to plan and partnering closely with our customers on critical design wins to support our growth objectives. So a big thank you to the entire GF. team for their hard work and to our customers for their continued trust in us. With that, over to you, Nils.

我為我們世界各地的團隊在關鍵設計方面與客戶密切合作進行規劃和密切合作而感到非常自豪，以支持我們的成長目標。非常感謝整個 GF。感謝團隊的辛勤工作，感謝客戶對我們的持續信任。就這樣，交給你了，尼爾斯。

Thank you, Tom, and welcome to everyone on the call. I'd like to provide a brief update on solve our key customer partnership and market performance. As Tom said, we are pleased with our ongoing design win momentum. Our recent announcement that NXP using our 22 FTX. platform is a key example of what we set out to achieve it. Design wins based collaboration will focus on next generation solutions for automotive, IoT and smart mobile devices. More importantly, this will enable an experience like more contact and Paul efficient solutions, increasing the overall performance of this system solution by leveraging the best manufacturing proximity, BOGS global footprint, including our facility in multiple New York partnerships like this on this call, all capability to do, we have a cutting edge solutions that meet the stringent requirements of the end markets we serve, such as automotive grade, send us on that note, automotive remains a key growth driver across our end market portfolio and despite higher levels of channel inventory or the last quarter it solve our customers'. We are continuing to support the expanding soon. We conduct a content per vehicle. Our relentless focus on diversifying our product portfolio and gaining market share in this critical market continued to offset some of the short-term demand dynamics facing the automotive industry. Notwithstanding a sequential revenue decline in the quarter, we expect to remain on track to deliver high single digit revenue growth in 1224 in our automotive end market. Longer term, we expect to talk share gains with our customers across automotive applications such as radar, safety, power management and connectivity. We therefore believe that the automotive end market will be an important revenue growth engine for us as a range of automotive.

謝謝你，湯姆，歡迎大家參加電話會議。我想提供有關解決我們的主要客戶合作夥伴關係和市場表現的簡要更新。正如湯姆所說，我們對我們持續的設計獲勝勢頭感到滿意。我們最近宣布 NXP 使用我們的 22 FTX。平台是我們為實現這一目標而製定的關鍵範例。基於設計獲勝的合作將重點放在汽車、物聯網和智慧行動裝置的下一代解決方案。更重要的是，這將帶來更多接觸和保羅高效解決方案等體驗，透過利用最佳的製造鄰近性、BOGS 全球足跡（包括我們在多個紐約合作夥伴中的工廠，如本次電話會議中的這樣的設施）來提高該系統解決方案的整體性能，所有我們擁有先進的解決方案，可以滿足我們所服務的終端市場的嚴格要求，例如汽車級，請注意，汽車仍然是我們終端市場產品組合的關鍵成長動力，儘管通路水平較高庫存或上個季度它解決了我們客戶的問題。我們將繼續支持很快的擴張。我們對每輛車進行一個內容。我們堅持不懈地致力於產品組合多元化並在這個關鍵市場中獲得市場份額，這繼續抵消了汽車行業面臨的一些短期需求動態。儘管本季營收季減，我們預計汽車終端市場仍將在 1224 年實現高單位數收入成長。從長遠來看，我們希望與雷達、安全、電源管理和連接等汽車應用領域的客戶討論分享收益。因此，我們相信汽車終端市場將成為我們汽車系列產品的重要收入成長引擎。

We cannot a content and applications continue to grow. Turning now to smart mobile devices at the end, market returned to year-over-year revenue growth in the third quarter. Based on our conversations with our customers, demand for smart mobile devices appears to be returning to modest volume growth in 2024 as customers' inventories begin to normalize activities inventory dynamics, we believe that our full year revenue and margin would be roughly flat. We are encouraged by our ongoing design wins, which are proof point of both the technology leadership established and our growing content gains in this market. As our penetration continues to grow, we are reinforcing our position as a leading provider of IT front and content with key design wins in the quarter on our ASW and nine as WISSLY. platforms.

我們無法讓內容和應用程式持續成長。最後轉向智慧移動設備，第三季市場收入恢復年增。根據我們與客戶的對話，隨著客戶的庫存開始使活動庫存動態正常化，智慧行動裝置的需求似乎將在 2024 年恢復適度的銷售成長，我們相信我們的全年收入和利潤率將大致持平。我們對不斷取得的設計勝利感到鼓舞，這證明了我們在這個市場上建立的技術領先地位和不斷增長的內容收益。隨著我們的滲透率不斷增長，我們正在鞏固我們作為 IT​​ 前端和內容領先供應商的地位，本季我們的 ASW 和九個 WISSLY 取得了關鍵設計勝利。平台。

We also picked up key design wins on our 22 SDX platform for 5G millimeter wave applications as well as microdisplay backplanes for smart glasses and a on applications. We expect continued interest from these applications for mobile and wearables using our 22 SDX platform, thanks to its enhanced performance and power efficiency capability. Please IoT, our customers are continuing to carefully manage the inventories., and although we report our sequential revenue growth of 4% in the quarter end markets is down on a full-year basis due principally to the ongoing inventory levels like across both industrial and consumer applications. During the third quarter, we secured over 20 new design wins across our IoT and target. These include edge applications and our 12 nanometer platforms, next-generation smart cards and 28 nanometer and connectivity products across both WiFi and Bluetooth.

我們還在用於 5G 毫米波應用的 22 SDX 平台以及用於智慧眼鏡和其他應用的微顯示背板方面取得了關鍵設計成果。由於其增強的性能和能源效率，我們預計使用我們的 22 SDX 平台的行動和穿戴式裝置應用程式將繼續受到關注。請物聯網，我們的客戶將繼續謹慎管理庫存。者應用程式。第三季度，我們在物聯網和目標領域贏得了 20 多項新設計。其中包括邊緣應用和我們的 12 奈米平台、下一代智慧卡和 28 奈米以及 WiFi 和藍牙連接產品。

On our 22 FDX. platform. Longer-term, we expect our IoT end market to grow as the number of smart and connected devices continue to expand core than expected, driven by the need to sense, acquire process and communicate data. Finally, revenue of our communication infrastructure and data center segment declined sequentially into Q3, although the note migration of our data center and data centric customers. As lastly taper off, the transition of compute to SOP 12 nanometer node is increasing the new and growing opportunities for high bandwidth communication, inefficient power conversion installed, but storage applications into data center technology portfolio is ideally suited to service this evolving threat, optical networking and power management, a key battleground for future growth as we remix our product offerings in this end market towards our high-speed silicon-germanium and silicon photonics products.

在我們的 22 FDX 上。平台。從長遠來看，我們預計，在感知、獲取流程和通訊資料的需求的推動下，隨著智慧和連網設備的數量繼續超出預期地擴大核心，我們的物聯網終端市場將會成長。最後，儘管我們注意到資料中心和資料中心客戶的遷移，但我們的通訊基礎設施和資料中心部門的收入在第三季度連續下降。隨著最後的逐漸減少，計算向SOP 12 奈米節點的過渡正在增加高頻寬通訊、低效電源轉換安裝的新機會和不斷增長的機會，但資料中心技術組合中的儲存應用非常適合應對這一不斷變化的威脅，光網路和電源管理，這是未來成長的關鍵戰場，因為我們將這一終端市場的產品重新組合為高速矽鍺和矽光子產品。

To that end, I'm pleased to report that we're working with three of the largest optical transceiver customers in this space as we focus on silicon photonics and power solutions to address data center requirements ranging from January, I servers and high-performance network switches to start solutions. Commercial Satellite Communication is also emerging as a growth vector into this market. As large phased array antennas using satellite ground to terminals requires significant. I have front end silicon content, expanding the market opportunity for two years, silicon germanium and is allied products. As we discussed on previous earning calls, we believe that the second half 2020 for revenue in this end market will be roughly in line with what we have reported for the first half of 2024. All I'm very pleased to report of the positive progress that we're seeing across our design wins in all of the in August that we support. Although short-term demand dynamics remain a focus, we continue to precision GF for long-term growth opportunities by tailoring product features to support the key secular trends and performance requirements are cost was need in each of these and fibers. I'll now pass the call over to John for a deeper dive on the Q3 financials.

為此，我很高興地報告，我們正在與該領域三個最大的光收發器客戶合作，我們專注於矽光子和電源解決方案，以滿足資料中心的需求，包括一月、I 伺服器和高效能網路交換器啟動解決方案。商業衛星通訊也正在成為該市場的成長載體。由於使用衛星地面的大型相控陣天線對終端的要求很高。我有前端矽含量，擴大市場機會兩年，矽鍺和是聯盟產品。正如我們在先前的財報電話會議上討論的那樣，我們相信 2020 年下半年該終端市場的收入將與我們報告的 2024 年上半年大致一致。的設計中都看到了勝利。儘管短期需求動態仍然是一個焦點，但我們繼續透過客製化產品功能來支援關鍵的長期趨勢和效能要求，為長期成長機會提供精準的 GF 服務，而每種產品和纖維都需要成本。我現在將把電話轉給約翰，以更深入地了解第三季的財務狀況。

Thank you, Niels. For the remainder of the call, including guidance other than revenue, cash flow, CapEx and net interest and other income and expenses. I will reference base physician and or restructuring charges.

謝謝你，尼爾斯。對於電話會議的其餘部分，包括除收入、現金流量、資本支出和淨利息以及其他收入和支出之外的指導。我將參考基礎醫生和/或重組費用。

As Tom noted, our third quarter results exceeded the midpoint of the guidance ranges we provided in our last quarterly update. We delivered third quarter revenue of $1.739 billion, which represented a 7% increase over the prior quarter, but a decrease of 6% year over year, principally due to lower shipments of the utilization levels in the mid 70s, consistent with the commentary on our last earnings call. We shipped approximately 549,300 millimeter equivalent wafers in the quarter, up 6% sequentially and down 5% from the prior year period. ASP or average selling price per wafer was roughly flat year over year.

正如湯姆指出的那樣，我們第三季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。我們第三季營收為 17.39 億美元，比上一季成長 7%，但年減 6%，主要是由於 70 年代中期利用率水準的出貨量較低，這與我們的評論一致。財報電話會議。本季我們出貨了約 549,300 毫米等效晶圓，比上一季成長 6%，比去年同期下降 5%。平均售價（ASP）或每片晶圓的平均售價與去年同期大致持平。

Wafer revenue from our end markets accounted for approximately 90% of total revenue. Non-wafer revenue, which includes revenue from radicals, nonrecurring engineering, expedite fees and other items, accounted for approximately 10% of total revenue for the third quarter.

來自終端市場的晶圓收入約佔總收入的90%。非晶圓收入包括來自自由基、非經常性工程、加急費用和其他項目的收入，約佔第三季總收入的10%。

Let me now provide an update on our revenues by end markets. Smart mobile devices represented approximately 50% of the quarter's total revenue. Third quarter revenue increased approximately 14% sequentially and approximately 11% from the prior year period, principally due to higher seasonal shipments. We believe that our customers' inventory levels have begun to normalize and for the full year, we still expect revenue in our largest end market by revenue to be roughly flat on a year-over-year basis. As outlined by Niels, we are well positioned to support our customers when demand rebounds with our design win momentum, supporting the content and feature expansion and smart mobile devices.

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。智慧型移動設備約佔該季度總收入的 50%。第三季營收季增約 14%，較去年同期成長約 11%，主要是因為季節性出貨量增加。我們相信，我們客戶的庫存水準已經開始正常化，全年我們仍然預計我們最大的終端市場的收入將與去年同期大致持平。正如尼爾斯所概述的那樣，當需求反彈時，我們有能力為客戶提供支持，憑藉我們的設計獲勝動力，支持內容和功能擴展以及智慧移動設備。

In the third quarter revenue for the home and industrial IoT markets represented approximately 18% of the quarter's total revenue. Third quarter revenue increased approximately 4% sequentially and decreased 25% from the prior period as our customers in the consumer and industrial IoT segments continue to tackle elevated channel inventories. As discussed by Neil's, our design win momentum with customers for whole that industrial wireless connected devices is expected to drive long-term growth opportunities. In the short term, we expect that revenue for this market will continue on a similar path to our third quarter run rate until there's a meaningful reduction in channel inventory across our customers. Automotive remains a key growth segment for us and represented approximately 15% of the quarter's total revenue. Third quarter revenue decreased approximately 5% sequentially and 16% from the year prior period due to the timing of customer inventory management. As Niels noted, we expect year over year automotive revenue growth to be on the high single digits for 2024 as we continue to gain share and support our customers across a diverse range of applications.

第三季家庭和工業物聯網市場的收入約佔該季總收入的 18%。由於消費者和工業物聯網領域的客戶繼續應對通路庫存增加的問題，第三季營收季增約 4%，季減 25%。正如尼爾所討論的，我們的設計贏得了客戶的青睞，整個工業無線連接設備有望推動長期成長機會。短期內，我們預期該市場的收入將繼續與第三季的運行速度類似，直到我們客戶的通路庫存大幅減少。汽車仍然是我們的關鍵成長領域，約佔本季總收入的 15%。由於客戶庫存管理的時間安排，第三季營收季減約 5%，年減 16%。正如 Niels 所指出的那樣，隨著我們繼續獲得份額並為各種應用領域的客戶提供支持，我們預計 2024 年汽車收入的同比增長將達到較高的個位數。

Finally, moving onto our communications infrastructure and data center end market, which represented approximately 7% of the quarter's total revenue, third quarter revenue decreased 14% sequentially and approximately 15% year over year as a result of declining volumes. How, however, this was partially offset by a year-over-year improvement at ASPs. As Tom and Niels noted, we are gaining new design wins in this end market in the areas of power connectivity and optical networking as the range of data center and communications infrastructure applications continues to grow.

最後，我們的通訊基礎設施和資料中心終端市場約佔本季總收入的 7%，由於銷量下降，第三季營收季減 14%，年減約 15%。然而，這被平均售價的同比改善部分抵消了。正如 Tom 和 Niels 所指出的那樣，隨著資料中心和通訊基礎設施應用範圍的不斷擴大，我們在電力連接和光纖網路領域的終端市場中獲得了新的設計勝利。

Moving next to gross profit. For the third quarter, we delivered gross profit of $429 million, which was above the midpoint of our guided range and translates into approximately 24.7% gross margin. Gross margin also exceeded the midpoint. We had indicated and as discussed in our second quarter earnings call, revenue from customer volume adjustments in the third quarter reduced by roughly half from the prior quarter. We expect that these adjustments will be similar in the fourth quarter. Operating expenses for the third quarter represented approximately 11% of total revenue. R&D for the quarter increased to $122 million and SG&A declined sequentially to $71 million. Total operating expenses declined sequentially to $193 million in the quarter and incorporated and Advanced Manufacturing investment tax credit of $16 million.

接下來是毛利。第三季度，我們實現了 4.29 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 24.7%。毛利率也超過了中點。我們已經指出，正如我們在第二季財報電話會議中所討論的那樣，第三季客戶量調整帶來的收入比上一季減少了大約一半。我們預計這些調整將在第四季進行類似的調整。第三季的營運費用約佔總收入的11%。該季度的研發費用增加至 1.22 億美元，SG&A 環比下降至 7,100 萬美元。本季總營運費用較上季下降至 1.93 億美元，先進製造投資稅收抵免額為 1,600 萬美元。

As discussed on our last earnings call as we continue to spend on qualifying U.S. expenses and capital assets, in 2024 and beyond, we expect to continue to receive these benefits through the life of the program. We delivered operating profit of $236 million for the quarter, which translates into an operating margin of 13.6%, which is the high end of our guided range of 380 basis points below the prior year period. Third quarter, net interest income and other income and expense was $10 million, and we incurred income tax expense of $17 million in the quarter. We reported third-quarter net income of $229 million, a decrease of approximately $79 million from the year-ago period. As a result, we reported diluted earnings of $0.41 per share for the third quarter, which was above the high end of our guidance range.

正如我們在上次財報電話會議上所討論的，隨著我們在 2024 年及以後繼續在符合條件的美國支出和資本資產上支出，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。本季我們實現了 2.36 億美元的營業利潤，相當於 13.6% 的營業利潤率，這是我們指導範圍的上限，比去年同期低了 380 個基點。第三季度，淨利息收入和其他收入和支出為 1,000 萬美元，本季我們產生了 1,700 萬美元的所得稅費用。我們報告第三季淨利潤為 2.29 億美元，比去年同期減少約 7,900 萬美元。因此，我們報告第三季稀釋後每股收益為 0.41 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.

現在讓我提供一些關鍵的資產負債表和現金流量指標。

Cash flow from operations for the third quarter was $375 million. Capex for the quarter was $162 million or roughly 9% of revenue. Adjusted 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 equipment and IT tangible assets has set out on the statement of cash flows was $216 million. At the end of the third quarter, our combined total of cash, cash equivalents and marketable securities stood at approximately $4.3 billion. We also have a $1 billion revolving credit facility which remains undrawn.

第三季營運現金流為 3.75 億美元。該季度的資本支出為 1.62 億美元，約佔收入的 9%。本季調整後的自由現金流量（我們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，減去購買財產、工廠設備和IT 有形資產）已在現金流量表中列出2.16 億美元。截至第三季末，我們的現金、現金等價物及有價證券總額約為 43 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 fourth quarter of 2024. We expect total GF revenue to be between $1.8 billion and $1.85 billion. Of this, we expect non-wafer revenue to be approximately 10% of total revenue. We expect gross profit to be between $432 million and $481 million, which at the midpoint is 25%. Excluding share-based compensation, but including the benefit related to the advanced manufacturing investment tax credit, for the fourth quarter, we expect total Opex to be between $180 million and $200 million. We expect operating profit to be between $232 million and $301 million. At the midpoint of our guidance, we expect share-based compensation to be up approximately $50 million, of which roughly $14 million is related to cost of goods sold in approximately $36 billion is related to Opex. We expect net interest income and other income for the quarter to be between $ 7 million and $15 million and income tax expense to be between $23 million and $35 million. We expect net income to be between $216 million to $281 million on a fully diluted share count of approximately 550 million shares. We expect earnings per share for the fourth quarter to be between $0.39 and $0.51.

接下來，讓我向您提供我們對 2024 年第四季的展望。其中，我們預期非晶圓收入將佔總收入的10%左右。我們預計毛利將在 4.32 億美元至 4.81 億美元之間，中間值為 25%。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，我們預計第四季度的總營運支出將在 1.8 億美元至 2 億美元之間。我們預計營業利潤將在 2.32 億美元至 3.01 億美元之間。在我們指導的中點，我們預計基於股份的薪酬將增加約 5,000 萬美元，其中約 1,400 萬美元與銷售商品成本相關，約 360 億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將在 700 萬美元至 1500 萬美元之間，所得稅費用將在 2,300 萬美元至 3,500 萬美元之間。我們預計，在完全稀釋後的股數約為 5.5 億股的情況下，淨利潤將在 2.16 億美元至 2.81 億美元之間。我們預計第四季每股收益將在 0.39 美元至 0.51 美元之間。

For the year 2024, we maintain our CapEx guidance of approximately $700 million. And as Tom indicated, we expect this to provide GF an opportunity to focus on delivering adjusted free cash flow generation in 2024, approaching $1 billion.

對於 2024 年，我們維持約 7 億美元的資本支出指引。正如 Tom 所指出的，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，接近 10 億美元。

In summary, the dedication from our employees across the world and their continued efforts to expand our differentiated product offerings in key growth markets enabled us to achieve third quarter results at the high end of the guidance ranges we provided in our second quarter earnings update. With that, let's open the call for Q&A. Operator.

總而言之，我們世界各地員工的奉獻精神以及他們在主要成長市場擴大差異化產品供應的持續努力，使我們能夠在第二季度收益更新中提供的指導範圍的高端實現第三季度業績。接下來，讓我們開始問答環節。操作員。

Thank you. At this time we will conduct a question and answer session.

謝謝。這時我們將進行問答環節。

(Operator Instructions)

（操作員說明）

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

我們的第一個問題來自德意志銀行的羅斯·西莫爾。您的線路現已開通。

Hi, guys. Thanks for asking a question and congrats on the solid execution time. I guess my first question is for you. And I'm really really what I'm really trying to do is reconcile the strength year exhibiting in the second half of this year to the weakness of a number of your customers. And then perhaps more importantly, how does that sets you up for 2025 order? Are the puts and takes that are kind of the idiosyncratic benefits that you're enjoying relative to the macro market, which doesn't seem to be so strong?

嗨，大家好。感謝您提出問題，並祝賀您的執行時間穩定。我想我的第一個問題是問你的。我真正想做的就是將今年下半年表現出的強勁表現與一些客戶的疲軟表現相協調。也許更重要的是，這將如何為 2025 年的訂單做好準備？相對於宏觀市場而言，看跌期權和看跌期權是否是您所享受的特殊收益，而宏觀市場似乎不那麼強勁？

Good morning, Ross. A really good question. So let's start with the first part of this, which is why do you have maybe the best way to save bucking the trend a little bit. I think it really comes down to two factors. The breadth of the end markets we play in pretty well distributed, but we have a high concentration smart mobile devices. Third quarter was the 50 handle a percent of revenue. And in our automotive business and even in a year, we hear a lot about sluggishness in the auto end markets were growing high single digits. And so smart mobile devices, remember they had their down period two years ago. And so they've become a steady state. And the opportunity for growth for us in the auto has been growing. And a lot of that is the design wins over the last five, six years.

早安，羅斯。一個非常好的問題。因此，讓我們從第一部分開始，這就是為什麼您可能有最好的方法來節省一點逆勢。我認為這實際上可以歸結為兩個因素。我們所涉足的終端市場分佈相當廣泛，但我們擁有高度集中的智慧移動設備。第三季是這 50 家公司佔營收的百分比。在我們的汽車業務中，甚至在一年內，我們聽到很多關於汽車終端市場低迷的消息，成長幅度高達個位數。所以智慧移動設備，請記住它們在兩年前經歷過低迷期。所以他們已經成為一個穩定的狀態。我們在汽車產業的成長機會一直在增加。其中很大一部分是過去五、六年的設計勝利。

It's not just that more content in cars of growing. We've won more sockets in Carson, and we expect that to continue in the autos, a growth engine for for GlobalFoundries. I think it's really the combination of those two elements. Yes, breadth of our end markets and in particular, the concentration of smart mobile devices in auto in our in our revenue now on 2025. So let me first start by putting a little context that despite talking about 2024, we began the year and we said Q1 would be the low point in revenue and that we would sequentially grow every quarter. And so, that's exactly what we did in Q2 over Q1 was 7% growth results today of Q3 over Q2 was another 5%. And then we decided in Q4 for further growth. On top of that, we were herself. We don't lose sight of the fact that we're going to be on track to deliver $1 billion of free cash flow, and that's with utilizations in the mid 70s. I think that's pretty impressive shows the power of the cash generation of our business. So we think net 2025 for GF. as we stand here today. And this is in the face of what we don't like to guide more than one quarter to time. But if it's fair to couple of that 2020, that is going to be an up year free for GlobalFoundries. The magnitude of that really is going to be tied to how the industry performs and probably how it performs relative to the macro economy. And given that we are almost halfway through Q1 and most of our the wafers that we will shift the width is in the line for Q one. I can tell you one thing about Q1, sorry, for 2025 year over year Q1, 2025 compared to Q1 2024. We'll have some growth on the other end of that. The sequential 4Q this year in Q1 will be in the high end of the of the decline in cyclicality until well, we are growing year on year. It will be it will be in the high end of the cyclicality of the normal range of cyclicality we see on a Q4 to Q1, and now I'll just leave it at that run. Have any follow on.

成長的不僅是汽車內容的增加。我們在卡森贏得了更多的席位，我們預計汽車行業將繼續保持這種勢頭，這是 GlobalFoundries 的成長引擎。我認為這確實是這兩個元素的結合。是的，我們終端市場的廣度，特別是汽車領域智慧型行動裝置在我們現在收入中的集中度，到2025 年，我們首先要介紹一些背景情況，儘管我們談論的是2024 年，但我們從今年開始，我們表示第一季將是營收的最低點，我們每季都會持續成長。因此，這正是我們在第二季所做的，比第一季成長了 7%，今天第三季的成長結果比第二季又成長了 5%。然後我們在第四季決定進一步成長。最重要的是，我們就是她自己。我們不會忽視這樣一個事實，即我們將有望實現 10 億美元的自由現金流，而且這是 70 年代中期的利用率。我認為這令人印象深刻，顯示了我們業務產生現金的力量。所以我們認為 GF 的淨值是 2025 年。正如我們今天站在這裡一樣。而這是面對我們不喜歡指導超過四分之一的時間。但如果公平的話，2020 年對 GlobalFoundries 來說將是免費的一年。其幅度確實與該行業的表現以及它相對於宏觀經濟的表現有關。考慮到我們幾乎已經完成第一季的一半，並且我們將移動寬度的大部分晶圓都在第一季的生產線中。我可以告訴你關於第一季度的一件事，抱歉，2025 年第一季度，2025 年第一季度與 2024 年第一季相比。今年第一季的連續第四季將處於週期性下降的高端，直到我們同比增長。它將處於我們在第四季度到第一季看到的正常週期性範圍的周期性的高端，現在我將其保留在該運行狀態。有後續嗎。

Just wanted to pivot over to the gross margin side. It's a one quickly for John on that, Tom, I guess a little clarification. When you talked about the benefits that you guys cutting in half in the third quarter and the LTSA side of things, you meant that that stays at about the same absolute level in the fourth quarter, not getting cut in half again. And then my bigger your question is, how do you think of the puts and takes on gross margin as we think of 2025?

只是想轉向毛利率方面。對約翰來說，這是一個很快的問題，湯姆，我想需要一點澄清。當您談到在第三季度和 LTSA 方面削減一半的好處時，您的意思是在第四季度保持在相同的絕對水平，不會再次削減一半。然後我更大的問題是，當我們考慮 2025 年時，您如何看待看跌期權和看跌期權的毛利率？

Yes, Ross, thanks for the question. To first point is you can understand me right roughly the same in terms of the number in Q4, so in the third quarter. Let me just talk more broadly about profitability, if I can. I know we're pleased with our results through versus this year. We've seen a steady delivery of that income and EPS through the course of this year in 2024. On the gross profit margin. If you look at the underutilization charges that we've generated, which has had a very positive effects and partially offset the lack loadings in the factories, we can quantify that as roughly about four points of benefit in Q1, roughly three in Q2, about a point-and-a-half in the third quarter and a little less than that in the fourth quarter. So the point is was net of that. We've actually seen an improvement in gross profit margin as our utilization has stabilized on the back of operating leverage, with revenue coming up sequentially every quarter in the year, just as Tom had indicated and as we look into 2025, it's really that as we see recovery in the industry ongoing recovery and continued improvement in utilization, we would expect a similar positive effect on our gross profit margins.

是的，羅斯，謝謝你的提問。首先，你可以理解我的意思，就第四季的數字而言，也就是第三季的數字大致相同。如果可以的話，讓我更廣泛地談談獲利能力。我知道我們對今年的結果感到滿意。我們已經看到，到 2024 年，該收入和每股收益將穩定實現。如果你看看我們產生的未充分利用費用，這產生了非常積極的影響，並部分抵消了工廠的負荷不足，我們可以將其量化為第一季度大約四個點的收益，第二季度大約三點，大約第三節得分半，比第四節少一點。所以重點是排除這一點。實際上，我們已經看到毛利率有所改善，因為我們的利用率在營運槓桿的支持下趨於穩定，一年中每個季度的收入都在連續增長，正如湯姆所指出的那樣，當我們展望2025 年時，情況確實如此我們看到產業正在復甦，利用率持續提高，我們預計會對我們的毛利率產生類似的正面影響。

Thank you.

謝謝。

one moment for our next question. Our next question comes from the line of Krish Sankar of TD Cowen. Your line is now open.

請稍等一下我們的下一個問題。我們的下一個問題來自 TD Cowen 的 Krish Sankar。您的線路現已開通。

The high density. My question and congrats on the strong results of Derma two of them. First one is question on the overall ASP environment. Your pricing has been surprisingly resilient, the skill, but one of your peers have spoken about some pricing adjustment in March quarter was another peer seems to be okay. Some kind of feels like there's a lot of mixed messages on pricing of that. So Tom, can you just help us with some color on pricing trends and how to think about it in calendar 25? And another quick follow-up.

高密度。我的問題並祝賀 Derma 其中兩個取得的強勁成果。第一個是關於整個ASP環境的問題。你們的定價出乎意料地有彈性，但你們的一位同行談到了三月季度的一些定價調整，而另一位同行似乎還不錯。某種感覺上，關於定價的資訊有很多混雜的資訊。 Tom，您能幫我們介紹一下定價趨勢以及如何在 25 日曆中考慮這一點嗎？還有另一個快速跟進。

So let's start with the end of the big foundry player in the industry. They represent 30% of how the wafers that are shipped. Tsmc. They've been very clear that they see a lot of pressure on costs. Our most recent articles about how energy prices in Taiwan, a highest anywhere in the world, they're expanding capacity. So they are deploying capital need to get a return on that deploying capital in regions where their cost structures are going to be challenged until they've talked repeatedly about this in a constructive environment for pricing. And so when the big rational player understands that inflation is part of our industry and recognizes that needs to be shared that sets the tone for pricing. Now what is GFSC. and would you if you look at our results, we have been roughly flat on on on pricing this year. But remember, our LTAs give us a lot of certainty. They give us certainty to give the customer certainty at Myriad based on fixed volume, fixed duration and fixed pricing. And so that's that's the rules of the game we play under And until you've seen it in our results. But as we think about 2025, more of our revenue is going to come outside of these long-term agreements is going to come on on kind of a non-compete appeal basis. And we see the opportunity at the two years of inflation that we've had to offset our costs against the opportunity to have these discussions to actually get better pricing for our technology. And that's the that's what we see in 2021. You'll hear anecdotal one-time events of people giving some pricing for ForEx for tactical load. I don't think I would confuse that with the general the trend we see. And remember, a lot of GS business is sole source single-source type business, which means we have a special engagement, our customers on setting the value capture increasing from both of us who leave it at that,

那麼，就讓我們從業界大型代工廠商的終結開始​​吧。它們佔晶圓運輸方式的 30%。台積電。他們非常清楚，他們看到了很大的成本壓力。我們最近的文章介紹了台灣的能源價格（世界上最高的能源價格）如何擴大產能。因此，他們正在部署資本，需要在其成本結構將受到挑戰的地區獲得部署資本的回報，直到他們在建設性的定價環境中反覆討論這一點。因此，當大型理性參與者了解通貨膨脹是我們行業的一部分並認識到需要共享時，就為定價定下了基調。現在什麼是 GFSC。如果你看看我們的結果，你會發現，今年我們的定價基本上持平。但請記住，我們的長期協議給了我們很大的確定性。它們使我們能夠根據固定數量、固定期限和固定價格為 Myriad 的客戶提供確定性。這就是我們所遵循的遊戲規則，直到您在我們的結果中看到它為止。但當我們考慮 2025 年時，我們的更多收入將來自這些長期協議之外，這些協議將基於某種非競爭上訴的基礎上。我們看到了兩年通貨膨脹的機會，我們必須用這些討論來抵消我們的成本，從而真正為我們的技術獲得更好的定價。這就是我們在 2021 年看到的情況。我認為我不會將其與我們看到的整體趨勢混淆。請記住，許多 GS 業務都是單一來源單一來源類型的業務，這意味著我們有特殊的參與，我們的客戶設定從我們雙方獲得的價值不斷增加，

you have a far higher and thanks for that are very hopeful of feedback on look, my quick follow-up is on smart mobile. Obviously, it's very important part of your revenue stack. Can you talk a bit about the demand and seasonality trends in the segment, especially as we head into 2025? And also if this trend you're coming from the RF components of power devices, what process node the smart mobile focused on?

你有一個更高的目標，感謝你對外觀的回饋非常有希望，我的快速跟進是在智慧型手機上。顯然，這是您收入來源中非常重要的一部分。您能否談談該領域的需求和季節性趨勢，特別是在我們即將進入 2025 年？另外，如果這種趨勢來自功率元件的射頻組件，那麼智慧型手機關注的製程節點是什麼？

Thank you very much. So this is right. Neil's wheelhouse. I'm going to let me take this.

非常感謝。所以這是對的。尼爾的駕駛室。我會讓我接受這個。

Yes, good morning. This is Neil. So yes, and smart mobile devices, you know, we talk a little bit about, as you know, when we open up the call today, basically getting back to a year of growth. I think we are very well known for our position in the premier tier phones. And but maybe I can also add that from a design win standpoint, we have seen really, really good growth in China where we have expanded into 5G and both low and mid-tier phones. So starting to see business coming in with the tree of the major players in China. In addition to the usual, we have premium phones that that we're well known phone today, they've got to technologies. This is on page SW. nine, SWS Ally, say sonar shaky as well as starting to have some early traction on now on DIF. game portfolio is well placed to do.

是的，早安。這是尼爾.所以，是的，對於智慧型行動設備，你知道，正如你所知，當我們今天開始通話時，我們會談論一些基本上回到成長的一年。我認為我們在頂級手機領域的地位是眾所周知的。但也許我還可以補充一點，從設計獲勝的角度來看，我們在中國看到了非常非常好的成長，我們已經擴展到 5G 以及中低階手機。因此，開始看到中國主要參與者的業務進來。除了通常的手機之外，我們還有今天眾所周知的優質手機，它們擁有技術。這是在 SW 頁。九號，SWS Ally，說聲納不穩定，並且現在開始在 DIF 上有一些早期的吸引力。遊戲組合做得很好。

Thanks. Neil Stein stuff. My comments on

謝謝。尼爾斯坦的東西。我的評論

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

下一個問題。我們的下一個問題來自沃爾夫研究中心的克里斯·卡索。您的線路現已開通。

Yes, thank you. I guess the first question is just that just getting some more detail on the impact of the customer underutilization payments as we go into next year, you gave some some commentary about how that would go is right that that kind of gets down to to diminimus levels as we get into the first half of next year. And then just following on that time, you provided some commentary on the March quarter. And I think what I heard you say is still up year on year, but on the higher end, but seasonality. And it seems like if that's the case and it's sort of implies sort of a down cycle double digits in Q1 based. You'll see if you could confirm my math is right on that.

是的，謝謝。我想第一個問題是，當我們進入明年時，只需更詳細地了解客戶未充分利用付款的影響，您就如何進行一些評論是正確的，這種情況會下降到極小水平當我們進入明年上半年時。然後緊接著，您對三月季度提供了一些評論。我認為我聽到你所說的仍然同比增長，但處於較高端，但季節性。看起來如果情況確實如此，這似乎意味著第一季出現兩位數的下行週期。你會看看你是否能證實我的數學是正確的。

Yes, Chris, this is John. I'll take the first part. You are interpreting that correctly. We've been through a number of customer discussions with the LTAs through the course of 23 and three and 2024. We're seeing less of those now and we're seeing the of the effect of that less material to our overall gross profit outlook, including in the fourth quarter of just roughly just over a point of effect on the first quarter, I mean, Q4, as we look into next year, first half of the mixture of we see a similar dynamic, you know, less mature real to the overall gross profit margin story here and even of low. Let Tom take the next for the question.

是的，克里斯，這是約翰。我將採取第一部分。你的解釋是正確的。在23 年、3 年和2024 年期間，我們與長期協議進行了多次客戶討論。越小，包括第四季度對第一季度的影響，我的意思是，第四季度，當我們展望明年時，上半年的混合我們看到了類似的動態，你知道，真正不太成熟的這裡的整體毛利率甚至很低。讓湯姆回答下一個問題。

Chris, you've done the math right on that side in this.

克里斯，你在這方面的計算是正確的。

Okay. A follow-up for you. And the other question is a little bit bigger picture, but there's two competing dynamics of what's going in your foundry segment. one is what I think you benefit from a while, which is your customers want to diversify their supply geographically. But there's another in that yet on what you're seeing, starting to see a bifurcation where for again, for geopolitical reasons, customers are tending to want to produce locally within China for that product back, that's within China. As you look at your business going forward, how do you kind of balance those two things in terms of the opportunity for business coming your way because of where you are geographically located as compared to some of the customers having having some incentive to produce in China?

好的。給你一個後續。另一個問題是一個更大的問題，但是代工領域存在著兩種相互競爭的動態。一是我認為您暫時受益，即您的客戶希望在地理上實現供應多元化。但從你所看到的情況來看，還有另一個問題，開始出現分歧，出於地緣政治原因，客戶往往希望在中國本地生產該產品，即在中國境內。當您展望未來的業務時，您如何平衡這兩件事，因為與某些有動力在中國生產的客戶相比，您所處的地理位置會帶來業務機會？

It's really good question, Chris, because it's like which Rick tailwind, which are headwinds from. Yes, China for China, and I'll come to that second. But let's talk about China. For the rest of world. We are just a month ago had and over the summer we had three global technology. Some of these Jeff hosted events for customers and ecosystem partners. We had three times as many partners and customers at our Shanghai event than we had in the US and in Europe. Now, by the way, the U.S. and Europe events were well attended, but this gives you an idea of how the fabulous companies of China have a strategy that N plus one they need. Yes, local for local, but they also need a new deal graphically diverse foundry like TSMC and very few given as to support their worldwide business effect. They taught us of expression. They use NCNT. know China, no Taiwan in there, plus one strategy. And so they're building their business around being a global supplier, recognizing they need to supply sources and GSK most logical choice for them in the representation at our GTS., the kind of design wins meals alluded to, three of the four major players in the front end modules, content or content for smart mobile devices are all engaged year. So that's the big part of the tailwind. Now there is a headwind of local for local and its CFO job to figure out how we part and there and take advantage of some of that opportunity is there, I believe, very strongly that our tailwind offset by more than some of them, the headwinds we face in the localization because first of all, can take a long time for the types of differentiated technology our customers get from. We need from us in China. And I think there's an opportunity for partnerships for us to even improve on that. I hope that helps.

克里斯，這真是個好問題，因為這就像瑞克是順風，哪是逆風。是的，中國就是中國，我會談到第二點。但我們來談談中國。對於世界其他地方。就在一個月前，我們在整個夏天擁有了三項全球技術。其中一些 Jeff 為客戶和生態系統合作夥伴舉辦了活動。我們在上海舉辦的活動中擁有的合作夥伴和客戶數量是在美國和歐洲的三倍。順便說一句，現在美國和歐洲的活動參與人數很多，但這讓你了解中國優秀的公司如何制定他們需要的策略。是的，本地對本地，但他們也需要像台積電這樣的圖形多樣化的代工廠，而很少有一家能夠支持他們的全球業務影響。他們教我們表達。他們使用 NCNT。了解中國，那裡沒有台灣，再加上一項戰略。因此，他們正在圍繞成為全球供應商開展業務，認識到他們需要提供資源，而葛蘭素史克（GSK）在我們的GTS 代表中對他們來說是最合理的選擇。贏得了飯菜，四大主要參與者中的三個在前端模組中，內容或智慧行動裝置的內容都是當年的內容。所以這是順風的重要部分。現在，本地公司面臨著本地的逆風，其首席財務官的工作是弄清楚我們如何分開，並利用其中的一些機會，我相信，非常強烈的是，我們的順風被其中的一些逆風所抵消。面臨在地化，因為首先，我們的客戶獲得差異化技術類型可能需要很長時間。我們中國需要我們。我認為我們有機會透過合作來改進這一點。我希望這有幫助。

Thank you.

謝謝。

one moment for our next question. Our next question comes from the line of Mehdi Hosseini of Susquehanna International Group. Your line is now open.

請稍等一下我們的下一個問題。我們的下一個問題來自薩斯奎哈納國際集團的 Mehdi Hosseini。您的線路現已開通。

Yes, thanks for taking my question. First one is for Tom. Let me go back to what you said earlier discussing the design wins across platform, what specific segments of the market design wins are happening and when should we expect any material contribution? And I do have a follow-up.

是的，感謝您提出我的問題。第一個是給湯姆的。讓我回到您之前所說的跨平台設計獲勝的討論，市場設計獲勝的具體部分正在發生，以及我們何時應該期待任何實質貢獻？我確實有後續行動。

So I'll talk a little bit high level about design wins in our funnel for your fixed for GF. to outgrow the industry. When this thing turns around, it's all predicated on converting our funnel of opportunities, design wins and tape-outs in business, and we've really accelerated our commercial engine on that point. We feel confident that we had this clarity around what does our final need to be in total size table to outgrow the industry and a very disciplined process of identifying and qualifying driving those lead into actions on design, win and tape-out for the specifics around some of the wins are really excited about. I'm going to hand it over to Ms. Yes.

因此，我將在我們的漏斗中就 GF 的固定設計勝利問題進行一些高層次的討論。超越該行業。當事情發生逆轉時，這一切都取決於我們的機會管道、設計勝利和業務流片的轉變，在這一點上我們確實加速了我們的商業引擎。我們相信，我們已經清楚地了解了我們最終需要在總規模表中達到什麼水平，才能超越行業的發展，並且有一個非常嚴格的過程來識別和限定這些因素，以推動這些因素進入設計、獲勝和流片的具體細節的行動有些勝利確實令人興奮。我要把它交給Yes女士。

Thanks, Tom. Yet Let me maybe the best way to talk about, you know, our confidence in delivering so the revenue growth and and and accretive margins moving forward. Really, I think the best way to do it. It is for me to talk about GlobalFoundries growth strategy and speak specifically default pillars that we based that strategy on. So the four pillars we base it on a basis, the essential chip technology focus on high-growth market segments and battlegrounds, global for local manufacturing in all three major regions and then a balanced customer support model.

謝謝，湯姆。然而，讓我也許是談論我們對實現收入成長和利潤成長的信心的最佳方式。真的，我認為最好的方法是做到這一點。我應該談談 GlobalFoundries 的成長策略，並具體談談我們基於該策略的預設支柱。因此，我們將其建立在四個支柱的基礎上，基本晶片技術專注於高成長的細分市場和戰場，全球所有三個主要地區的本地製造，然後是平衡的客戶支援模式。

So let me walk you through. You know, what we mean with these medi-spa appeals are how we approach these four pillars. So starting out with essential chip technology, just to maybe ensure that everybody knows what essentially chip technology is the best way to talk about it is really it is the technology, the media technologies behind embedded processing, analog and power. And if you think about companies out there that are in these spaces today that are well-known to you will be companies like TIADINASP. to that's really the technology is to be a focus on its 10 nanometer and above median essential technology. You didn't get down to three major areas of technology seamless, and we didn't see much of a bulk basis tubular commodities, second source type of T. mostly got feature-rich, seamless. And you got into low policy months. We deny if you have annualize silicon germanium and GaN, Aberdeen, Paul, on it's really the BCD technologies, demos, first, silicon carbide. And again. So that's that's what essential chip technology, what the market is and what the technologies are that people are focused on there.

那麼讓我帶您了解一下。您知道，我們對這些醫療水療訴求的意思是我們如何實現這四個支柱。因此，從基本的晶片技術開始，也許只是為了確保每個人都知道晶片技術的本質是什麼，談論它的最佳方式實際上是技術，是嵌入式處理、模擬和電源背後的媒體技術。如果您想想當今這些領域中您所熟知的公司，那就是 TIADINASP 這樣的公司。真正的技術是要重點關注其10奈米及以上中位數的關鍵技術。你沒有無縫地了解三個主要技術領域，我們也沒有看到太多的大宗基礎管狀商品，第二來源類型的 T. 大多數都具有豐富的功能，無縫。你進入了政策低迷的月份。我們否認是否有年化矽鍺和 GaN，阿伯丁，保羅，這實際上是 BCD 技術，演示，首先是碳化矽。又來了。這就是基本的晶片技術、市場是什麼以及人們關注的技術是什麼。

Now if I take GF strategic overlay and put it on on these these three technology areas, and we basically can talk about it in the following in the following technology product mixes, first, ultra-low policymakers. This is where we have our 12 LP. and R. 22 FDX. technology. Our focus here is between two FDX is to offer 30% to 50% high performance and all, you know, 30% to 50% lower power. You know it at the same kind of performance levels. The latest NXP announcement that we just did a few weeks back, and we're exactly on 22. Fdx was exactly on the reason for the reasons. All of you know, it provided a higher power, higher performance and a lower power. And those wins were across multiple applications, like I mentioned earlier, automotive, IoT, SMD. Next I will follow policy much. You've got feature rich seamless, which really is focused on sensing computing and display. This is 28 nanometer and above a good example here of the technologies we have and the differentiation we have is our 40 nanometer NVM technology that now is pulling the number one automotive MCU portfolio in the world. But auto areas like display imaging, also very prominent in that space. Next that we have I have basically the ASW, the non-US W. silicon germanium and now I have gained with the recent fin made announcement very differentiated technology, a single source across it across the gamut there, power being default, one month, 30 BCD. 55 BCD. 65,000 volt and to promote an honorable gained the latest acquisition we announced they have a tick all on the gain side, really focusing in on high integration of GaN devices.

現在如果我把GF的策略疊加放到這三個技術領域的話，我們基本上可以在下面的技術產品組合中來談，第一，超低決策者。這是我們擁有 12 張 LP 的地方。和 R.22 FDX。技術。我們這裡的重點是在兩個 FDX 之間提供 30% 到 50% 的高效能，並且功耗降低 30% 到 50%。您在相同的性能水平上就知道了。幾週前我們剛發布了最新的恩智浦公告，現在正好是 22 日。眾所周知，它提供了更高的功率、更高的性能和更低的功耗。這些勝利涉及多個應用，就像我之前提到的，汽車、物聯網、SMD。接下來我會多關注政策。您擁有豐富的無縫功能，真正專注於感測計算和顯示。這是 28 奈米及以上技術的一個很好的例子，我們擁有的技術和我們的差異化是我們的 40 奈米 NVM 技術，該技術現在正在推動世界排名第一的汽車 MCU 產品組合。但汽車領域，如顯示成像，在該領域也非常突出。接下來，我們基本上有 ASW，非美國 W. 矽鍺，現在我透過最近 fin 宣布的非常差異化的技術獲得了收益，整個領域的單一來源，默認功率，一個月， 30 BCD。 55 BCD。 65,000 伏，為了促進最新收購的光榮收益，我們宣布他們在增益方面全部打勾，真正專注於 GaN 裝置的高集成度。

And then lastly, silicon photonics, you know, which where we offer the highest bandwidth at the lowest power. And we mentioned earlier, three major players in optical transceivers are engaged with us and that so that's really the central chip technology pillar. That's the first one and differentiated technology, single sourced and in highly tailored to what our customers need into segments that planning in the second part of the second pillar strategy is really the high-growth market segments and battlegrounds. And that's an example here. You know, we are growing our service addressable market from $60 billion. We expect that to go to about $120 billion by 2031 team, obviously, automotive, smart mobile devices, industrial and home IoT and of course, a communication infrastructure and data centers. And as you look into those markets will be focusing on on the key battlegrounds that drive superior growth that would be automotive, safety, powertrain, body electronics and automotive. Of course, you know, of in S & D's the front end WiFi audio, haptics display imaging and IoT at Home & Industrial AIRTHUMCU., Bluetooth, WiFi, aerospace and defense.

最後，你知道，矽光子學，我們以最低的功率提供最高的頻寬。我們之前提到過，光收發器領域的三個主要參與者都在與我們合作，因此這確實是核心晶片技術支柱。這是第一個，差異化技術，單一來源，高度客製化，以滿足客戶對細分市場的需求，第二支柱策略第二部分中的規劃實際上是高成長的細分市場和戰場。這就是一個例子。您知道，我們的服務目標市場正在從 600 億美元成長。我們預計到 2031 年，這一數字將達到約 1,200 億美元，其中包括汽車、智慧行動裝置、工業和家庭物聯網，當然還有通訊基礎設施和資料中心。當您研究這些市場時，您將專注於推動卓越成長的關鍵戰場，即汽車、安全、動力系統、車身電子和汽車。當然，您知道，S&D 的前端 WiFi 音訊、觸覺顯示成像以及家庭和工業 AIRTHUMCU.、藍牙、WiFi、航空航天和國防領域的物聯網。

And lastly, in communication infrastructure and data center piece of silicon photonics that we mentioned early on power delivery, we are also seeing a quite interesting growth of design wins in in the commercial satellite communications space. You mentioned that earlier, the large phased array antennas we have we have a major, a major win there that we believe is going to drive some some some some meaningful growth off of GlobalFoundries moving forward. So the first pillar is really the global for local manufacturing. You know, we are in all three key regions or Singapore, Germany and the US. We are at scale with our manufacturing that three millimeter factories in all three regions. And we have automotive and dual qualification on all our major technology. So we can support almost any any technology needs out there from an automotive standpoint. And we give the security of the tool qualification that could cause factories. And we have a very CapEx efficient capacity expansion model, you know, for next, the next few years as as we move forward. And then the last pillar, it is a balanced customer support model, and it really consists of three, three different components here. The first one we've talked more about in the past and is the LTAs, as Tom mentioned, fixed price, fixed volume, fixed duration. That was about $20 billion. We announced that in the 20 F and last time we had a major development major announcement around LTAs was the Infinity announced remitted early in the year. There's also a very meaningful outside of LTAs. We got our sales force deployed on top of the top 100 major accounts across the world. So we have sales coverage and support across those hundred accounts. These accounts, the design wins. We're seeing the momentum to be a build in the lost in the last 18 months. Off 90% single source and accretive to margin accretive to all our long-term model. Again, you know, the latest announcement evident XP. is a good example of one of these design wins. And you will see Maltese announcement coming into customer support model is really the channel. And this is where we get to the next one hundreds of customers. We build the ecosystem around that. We have a set of channel partners from a worldwide basis. And we believe based on design wins, we have seen that the margin will further be further accretive to our long-term model. And like Tom mentioned early on just the latest GTS. so much we did with our customers, we had more than 1,000 customers and partners attending that, which bodes well for the growth into into the channel.

最後，在我們之前提到的電力傳輸的通訊基礎設施和資料中心矽光子學領域，我們也看到商業衛星通訊領域的設計勝利出現了相當有趣的成長。您之前提到，我們擁有的大型相控陣天線，我們在那裡取得了重大勝利，我們相信這將推動 GlobalFoundries 向前邁進一些有意義的成長。因此，第一個支柱實際上是本地製造的全球性。你知道，我們位於新加坡、德國和美國這三個關鍵地區。我們在所有三個地區的三毫米工廠都具有一定的製造規模。我們在所有主要技術上都擁有汽車和雙重資格。因此，從汽車的角度來看，我們幾乎可以支援任何技術需求。並且我們給予工廠可能造成的工具資質的保障。我們有一個非常有效率的資本支出產能擴張模型，你知道，在我們前進的未來幾年。最後一個支柱是一個平衡的客戶支援模型，它實際上由三個、三個不同的組件組成。我們過去更多討論的第一個是長期協議，正如湯姆所提到的，固定價格、固定數量、固定期限。那大約是200億美元。我們宣布，在 20 F 中，上一次我們圍繞 LTA 發布了一項重大開發重大公告，那就是今年年初宣布的 Infinity。除了長期協議之外，還有非常有意義的內容。我們的銷售隊伍部署在全球前 100 名主要客戶。因此，我們為這一百個客戶提供銷售覆蓋和支援。這些帳戶，設計獲勝。我們看到了過去 18 個月內損失不斷增加的勢頭。 90% 是單一來源，並且可以增加我們所有長期模型的利潤。再說一次，你知道，最新的 XP 公告顯而易見。是這些設計勝利之一的一個很好的例子。您會看到馬耳他宣布進入客戶支援模式實際上是管道。這就是我們接觸接下來的數百個客戶的地方。我們圍繞它構建生態系統。我們在全球擁有一批通路合作夥伴。我們相信，基於設計勝利，我們已經看到利潤將進一步增加我們的長期模型。正如湯姆早些時候在最新的 GTS 中提到的那樣。我們與客戶一起做了很多事情，有超過 1,000 名客戶和合作夥伴參加了此次活動，這對我們進入該管道來說是個好兆頭。

So if I could summarize, you know why we believe we're well-positioned to deliver superior revenue growth at margins that are accretive to our long-term model, it really comes down to expanding and strengthen the portfolio of different shape, essential tip technologies focused on fast-growing market segments with the same doubling from $60 billion to $120 billion by 2030, the global and local manufacturing footprint, but a very efficient CapEx expansion. And then the balanced customer engagements, more engagement model with a very meaningful growth of Pine Bluff and design wins again at margins that are accretive to our long-term model.

因此，如果我可以總結一下，你知道為什麼我們相信我們處於有利地位，能夠以有利於我們長期模式的利潤率實現卓越的收入增長，這實際上取決於擴大和加強不同形狀的投資組合，這是必要的技巧技術專注於快速成長的細分市場，到 2030 年，全球和本地製造足跡將翻一番，從 600 億美元增加到 1,200 億美元，但資本支出擴張非常有效。然後，平衡的客戶參與度、更多的參與度模型以及派恩布拉夫的非常有意義的成長和設計再次贏得了利潤，這增加了我們的長期模型。

That is great. But henceforth here, I do a case where all the details just quickly for John, how should we think about OpEx, especially in the context of some of these credits that you're receiving? Is that the $70 million to $75 million and SG&A should be like a baseline? Any color would be great.

那太好了。但從今以後，我會做一個案例，其中所有細節都會很快告訴約翰，我們應該如何考慮營運支出，特別是在您收到的一些信用的背景下？ 7000 萬至 7500 萬美元和 SG&A 是否應該作為基準？任何顏色都會很棒。

Yes, I'm Eddie. So we've been managing OpEx carefully this year. We expect to continue to do that as we head into next year. And as we form our ongoing views of the 2025 revenue recovery will will adjust our OpEx accordingly. On your specific question, the boom, the advanced investment manufacturing tax credit that we generated in the year to date in 2020 forward, thus far has been slightly ahead of our expectations. We expect that to continue through the life of this program at roughly $10 million a quarter would be a normal rate, if you will. It's been a bit ahead of that this year, but $10 million a quarter would be a good, a good estimate going forward.

是的，我是艾迪。因此，我們今年一直在謹慎管理營運支出。我們預計明年將繼續這樣做。隨著我們對 2025 年收入復甦的持續看法，我們將相應調整我們的營運支出。關於你的具體問題，我們在 2020 年迄今所產生的繁榮、先進投資製造業稅收抵免，迄今略高於我們的預期。如果您願意的話，我們預計在該計劃的整個生命週期中，每季度約 1000 萬美元的費用將是正常的。今年這個數字有點超前，但未來每季 1000 萬美元將是一個很好的估計。

Thank you.

謝謝。

one moment for our next question. Our next question comes from the line of Mark Lipacis of Evercore ISI into your line is now open.

請稍等一下我們的下一個問題。我們的下一個問題來自 Evercore ISI 的 Mark Lipacis，您的路線現已開放。

Hi, thanks for taking my question on. It looks like Europe set up to throw off some really healthy cash flow for the next several years and under what I would consider reasonable expectations for industry growth with free cash flow in hybrid and earnings at this time, I believe in your prepared, Mark, you used the expression, you'd consider capital allocation programs, which I think is a pretty broad expression because I think you could allocate capital to new fabs are increasing R&D or buying back stock or even issue a dividend. So I'm wondering if you could give us some help us out with a little bit more color on that, what you meaning there is capital return part of the conversation on it. And maybe, John, as part of that, if you could remind us the cash you'd like to have on your balance sheet to run the Company and and the capital structure so we can figure out what would qualify as excess cash.

您好，感謝您回答我的問題。看起來歐洲準備在未來幾年內放棄一些真正健康的現金流，並且根據我認為對行業增長的合理預期，混合動力和盈利中的自由現金流，我相信你做好了準備，馬克，你使用這個表達，你會考慮資本分配計劃，我認為這是一個相當廣泛的表達，因為我認為你可以將資本分配給新的晶圓廠，以增加研發或回購股票，甚至發放股息。所以我想知道您是否可以給我們一些幫助，讓我們對此有更多的了解，您的意思是對話中存在資本回報部分。也許，約翰，作為其中的一部分，如果您能提醒我們您希望在資產負債表上有哪些現金來運營公司和資本結構，以便我們能夠弄清楚什麼是多餘現金。

Thank you. So Mark, you looking for a secret decoder ring. I'm going to pass it over to John. I have already made. Thanks for your question.

謝謝。馬克，你在尋找秘密解碼環。我要把它交給約翰。我已經做了。謝謝你的提問。

Yes. So we we have entered a phase in the corporate history of G. of we've gone from a feel for where we were formed to now generating solid free cash flow results for the Company. It's just really good, exciting to see this happen and approaching our goal of near $1 billion in free cash flow this year is quite a milestone for this company. And you know, it's not lost on us that we're now see a cash balance that is accumulating. We ended the quarter with about $4.3 billion in the total cash and investments in about $2.3 billion and total debt, so roughly $2 billion net cash. As we continue to progress in this manner, we will talk more about capital deployment. And, you know, it can take the form of everything you would expect from share repurchases, dividends potentially in the future and and reducing our overall leverage amount out is in the cards as well. So we'll continue to look at all that. We'll update you as things progress and our thoughts for more fully in this area. We need to see some more consistent results in history in this domain. But again, it's just it's not a lot data that we're starting to build a cash balance or will need to think about deployment at some point,

是的。因此，我們已經進入了 G 公司歷史上的一個階段：從對我們成立的地方的感覺，到現在為公司創造了穩定的自由現金流結果。看到這種情況發生真是太好了，令人興奮，並且接近我們今年接近 10 億美元自由現金流的目標對於這家公司來說是一個里程碑。你知道，我們並沒有忘記，我們現在看到現金餘額正在累積。本季結束時，我們的現金總額約為 43 億美元，投資和債務總額約為 23 億美元，因此淨現金約為 20 億美元。隨著我們繼續以這種方式取得進展，我們將更多地談論資本部署。而且，你知道，它可以採取你所期望的股票回購、未來可能的股息以及減少我們的整體槓桿金額的一切形式。所以我們將繼續關注這一切。隨著事情的進展，我們將向您通報我們在這一領域更全面的想法。我們需要在這個領域的歷史中看到一些更一致的結果。但同樣，我們開始建立現金餘額的數據並不多，或者需要在某個時候考慮部署，

look in every good business that wants to accelerate their growth is always going to look at for a minute accretive M&A opportunities. Now that becomes a door that's open for us, given our cash balance has nothing we see as we sit here today, but that's another into their deployment of capital allocation and look at it. Right. And I also commented, I'm sorry, Mark and sustainable foundry growth. And we have the capacity and we said this before already in our factories to get us between $9 billion and $10 billion in revenue. And that's a really important number because with that, not only is the free cash flow generation there, it's allowing us to invest in growth without having a trade-off, do we deliver free cash flow or not in our business for growth? And we really do both until this idea of free cash flow is going to exceed getting to where we need to invest again in the capital allocation into growth into factories because we'll have enough scale to be able to do both generate free cash flow and grow our business.

每個想要加速成長的好企業總是會尋找一分鐘的增值併購機會。現在，這成為向我們敞開的大門，因為我們今天坐在這裡沒有看到我們的現金餘額，但這是他們部署資本配置並審視它的另一個方面。正確的。我還評論說，對不起，馬克和可持續的代工增長。我們有能力為我們帶來 90 億至 100 億美元的收入，我們之前已經在我們的工廠說過了。這是一個非常重要的數字，因為有了這個，不僅可以產生自由現金流，還可以讓我們在不進行權衡的情況下投資於成長，我們是否會為我們的業務提供自由現金流以實現成長？我們確實做到了這兩點，直到自由現金流的想法超出了我們需要再次投資資本配置以促進工廠增長的程度，因為我們將有足夠的規模來既能夠產生自由現金流，發展我們的業務。

Fair enough. Thank you very much.

很公平。非常感謝。

one moment for our next question. Our next. Our next question comes from the line of Harlan Sur of JPMorgan. Your line is now open.

請稍等一下我們的下一個問題。我們的下一個。我們的下一個問題來自摩根大通的哈蘭‧蘇爾。您的線路現已開通。

Good afternoon. Thanks for taking my question. Was seamless plus the market in terms of developing a manufacturing silicon photonics solution for a lot of these sort of next-generation data center networking connectivity products. So I think that there are 45 nanometer CLO technology, I think in video, Marvell and Broadcom, Emma, all your customers here and team is also doing some pretty good work on compound semiconductors, silicon-germanium for high speed optical TIA.'s drivers in the likes of as many of these customers move to a playful based architecture for the optical transceivers next year. Thanks will become a meaningful part of CID. NetScaler anyway, to quantify,

午安.感謝您提出我的問題。在為許多此類下一代資料中心網路連接產品開發製造矽光子解決方案方面，與市場無縫結合。所以我認為有 45 奈米 CLO 技術，我認為在視頻、Marvell 和 Broadcom、Emma、這裡所有的客戶和團隊也在化合物半導體、用於高速光學 TIA 的矽鍺方面做了一些非常好的工作。 ，許多此類客戶的驅動因素將轉向基於有趣的光收發器架構。感謝將成為 CID 的一個有意義的部分。無論如何，NetScaler 要量化，

I think I get this is nails, maybe.

我想我明白這可能是指甲。

Yes, maybe I can start. So so we haven't we haven't really announced, you know, the customer names, but I did say earlier, you know, we have we are three of the major players in the industry on our platform. And you are right, we got early. We've been working on this for 10 years and finally, seeing it come into fruition. You now through food at this time wins Ibex, he personally you mentioned both silicon photonics and shaky. And I and I think of those two, as you know, the future of true high performance analog. So reading type performance, as we're trying to get to here in the future is going to require these types of technologies. And and we are very well-positioned, you know, in GlobalFoundries to take advantage of that. So so when you think about in that context, I do think that this will be a meaningful revenue generator for us out in time. Of course, you know, you're you're you're still needing to see some ecosystem changes. And, you know, they've gone out of their speeds as well as Paul and limitations. But the manager he does. I think you're going to see a pretty rapid ramp up these technologies and looking at overnight success for us, it's greater than this monolithic integration of our FC. Martin and photonics in a single chip. We have to do more to enable our customers and some of the other pieces of the puzzle. And we look for us to invest one way or the other that to continue to help our customers integrate that, what we call kind of the best ingredient at the core of this into opportunities. And look, I'll just add one other thing. That's that's a big play for us in datacenters, signal attacks, but don't underestimate power delivery where we're focused here as well from a power is becoming the biggest challenge and it's neck-and-neck with connectivity. And we think some of the things we're doing with the our technology in particular, again for the future is going to help solve that problem as well.

是的，也許我可以開始。所以我們還沒有真正宣布客戶名稱，但我之前確實說過，我們是我們平台上行業的三個主要參與者。你是對的，我們來得早。我們為此努力了 10 年，終於看到了成果。你現在透過食物此時贏得了Ibex，他親自為你提到了矽光子學和搖搖欲墜。如您所知，我和我認為這兩個是真正高性能模擬的未來。因此，我們未來想要達到的閱讀類型表現將需要這些類型的技術。你知道，格羅方德 (GlobalFoundries) 處於非常有利的位置，可以利用這一點。因此，當你考慮到這種情況時，我確實認為這將成為我們及時的有意義的收入來源。當然，你知道，你仍然需要看到一些生態系統的變化。而且，你知道，他們已經超出了他們的速度以及保羅和限制。但他的經理確實如此。我認為你會看到這些技術的快速發展，並看到我們一夜之間的成功，這比我們 FC 的整體整合更偉大。馬丁和光子學整合在一個晶片中。我們必須做更多的事情來幫助我們的客戶和解決其他一些問題。我們希望我們以某種方式進行投資，以繼續幫助我們的客戶將其整合為機會，我們稱之為核心的最佳成分。聽著，我要補充另一件事。這對我們來說在資料中心、訊號攻擊方面發揮著重要作用，但也不要低估我們關注的電力輸送，因為電力正在成為最大的挑戰，並且它與連接性並駕齊驅。我們認為，我們正在利用我們的技術所做的一些事情，特別是在未來，也將有助於解決這個問題。

I appreciate that. And also great to see the financial Protonix T, did you guys announced last month for 22 of GX? And also, you mentioned in your prepared remarks, much of it is going to be used for automotive, smart mobile IoT continuation in light of the strong partnership. Did you guys had with them at the 40 nanometer embedded MCU plus has not hit the GES team signed and associated long-term agreement with NXT., especially given the strategic nature of their units shipped in automotive kind of place similar to the partnership and LTA you signed with Infineon at the beginning of this year? I'm just trying to figure about the different hearing some of these strategic financial to a lot like some have an LTA associated with them out, maybe others might not.

我很欣賞這一點。也很高興看到財務 Protonix T，你們上個月宣布了 22 GX 嗎？此外，您在準備好的發言中提到，鑑於雙方牢固的合作關係，其中大部分將用於汽車、智慧移動物聯網的延續。你們是否與他們一起在 40 奈米嵌入式 MCU 加上尚未與 GES 團隊簽署並與 NXT 相關的長期協議。今年年初與英飛凌簽約了嗎？我只是想弄清楚其中一些戰略財務的不同聽證會，就像有些人有與之相關的長期協議，也許其他人可能沒有。

Yes. I guess without getting into specifics on the NXP. deal, what you typically see is that markets like automotive, aerospace and defense, some industrial spaces and the customers would like to have LTAs in place. And it's back to, you know, getting certainty around volume, licensing and or the duration, right? So So in some cases, we see that in other cases, we basically you can almost call it the standard T's and C's, you know, we'd be dynamic, pick a dynamic pricing, dynamic volume commitments, right? And renegotiating on renegotiating renegotiation on on a 12 month basis. So we do we do a mix of it really depending on what suits the customer and the Magna customers going after the best rates,

是的。我想沒有深入了解恩智浦的細節。交易中，您通常會看到汽車、航空航太和國防等市場、一些工業領域和客戶希望簽訂長期協議。你知道，這又回到了確定數量、許可和/或持續時間的問題，對嗎？因此，在某些情況下，我們看到在其他情況下，我們基本上可以稱之為標準 T 和 C，你知道，我們會是動態的，選擇動態定價、動態數量承諾，對吧？並以 12 個月為基礎進行重新談判。因此，我們確實根據什麼適合客戶以及追求最優惠價格的麥格納客戶進行混合，

really the complex market. If it's a product assignment last 10 years, this is where customers want certainty. If it's a refresh cycle every year, it's less important to them because it's changing all the time. And until we can handle it, you could almost think a customer who plays in different end markets may want an LTA for one product and that and another focused on that point to give you an idea, when we hit peak LTA revenues or our total revenue under LTA, it was it was about $30 billion, and we ended last year, we still had a $20 billion of Tier revenue. And as we sit here today, we have $17 billion, there's still a fair amount of our business that's on the LTAC. And it's not because it is bleeding out slow. It's because we still get customers in some of these long tail businesses that want to get that type of certainty locked in. And so I think it's becoming an important part for our industry and it's never about. Now one thing or another thing, it's always a little bit about the nuance underneath what's the problem. They're trying to be solved in LTAs of some of that certainty for a long, long product line. I think one particularly I'm thinking of.

確實是一個複雜的市場。如果這是過去 10 年的產品分配，這就是客戶想要確定性的地方。如果每年都是一個刷新周期，那麼對他們來說就不那麼重要了，因為它一直在變化。在我們能夠處理這個問題之前，您幾乎可能會認為，在不同終端市場上開展業務的客戶可能需要一種產品的長期協議，而另一種產品則重點關注這一點，以便在我們達到長期協議收入峰值或總收入時為您提供一個想法根據 LTA，大約有 300 億美元，去年結束時，我們仍然有 200 億美元的層級收入。當我們今天坐在這裡時，我們擁有 170 億美元，但我們仍有相當多的業務在 LTAC 上。這並不是因為它的出血速度很慢。這是因為我們仍然有一些長尾企業的客戶希望獲得這種確定性。 所以我認為它正在成為我們行業的重要組成部分，而且永遠不會消失。不管是一件事還是另一件事，問題背後的細微差別總是存在的。他們正試圖在長期協議中解決很長很長的產品線的一些確定性問題。我想我特別想到一個。

Thank you, Tom.

謝謝你，湯姆。

Thank you. Rocco will take one last question for one moment, sir.

謝謝。先生，羅科將暫時回答最後一個問題。

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

我們的最後一個問題。我的最後一個問題來自美國銀行證券公司的 Vivek Arya。您的線路現已開通。

Hi, thank you for squeezing us. In addition, stocks on the opposite back on one follow up or I guess clarification, Steve guided auto to be up high single digit smart mobile device to be flattish for the year. Now I'm not sure how you can get to the Q4 guidance, page 25 at the midpoint with those numbers. And then the real question is on the smartphone trends have remained pretty weak to date. So how should we think about your smart mobile device demand going forward, particularly given that Q1 tends to be seasonally down there?

你好，謝謝你對我們的擠壓。此外，相反的股票在一次跟進或我猜澄清後，史蒂夫引導汽車上漲高個位數，智慧行動裝置今年持平。現在我不知道如何才能找到第 25 頁中點的第四季指南以及這些數字。真正的問題是智慧型手機趨勢迄今仍然相當疲軟。那麼，我們應該如何看待未來的智慧行動裝置需求，特別是考慮到第一季往往會出現季節性下降？

Because John, I'll take the first part. I mean, really it's and IoT and comms infrastructure where you see year on year declines for 2024 compared to 23 will round out the Q4 guide and all that Neil's comments on the smart mobile phones,

因為約翰，我將參加第一部分。我的意思是，確實是物聯網和通訊基礎設施，與 23 年相比，2024 年將出現同比下降，這將完善第四季度指南以及尼爾對智慧型手機的所有評論，

smart mobile, you know, you could say the global foundry may be bucking the trend a little bit. You know, we are doing well and smart mobile devices. We are particularly doing well on our IP portfolio. And and you know, from a design win standpoint, and we have very meaningful design momentum and in that space as well. Moving forward.

智慧型手機，你知道，你可以說全球代工廠可能有點逆勢而上。你知道，我們在智慧型行動裝置方面做得很好。我們在知識產權組合方面表現尤其出色。而且你知道，從設計獲勝的角度來看，我們在這個領域也擁有非常有意義的設計動力。繼續前進。

Got it. And then a quick follow-up on the gross margin front. You mentioned that without the the prepayment impacts you expect, say 100 basis points impact in Q4. So excluding those, you should be up, say 40 basis points in Q4. So how should we think about gross margin going forward now that you're pretty much run out? It does impact proven?

知道了。然後是毛利率方面的快速跟進。您提到，如果沒有您預期的提前還款影響，例如第四季 100 個基點的影響。因此，排除這些因素，你應該會上漲，例如第四季上漲 40 個基點。那麼，既然你已經快用完了，我們該如何考慮未來的毛利率呢？它確實有影響嗎？

Yes, you'll see you'll see a, you know, the natural progression of gross margin performance along with the various factors that lead to that, namely improvement and factory utilization as the industry recovers and our loadings increase along with our ongoing cost recovery initiatives, the mixing of the business growth in the channel, the various factors that Neil touched on earlier of growing growing the business in a manner that is margin accretive.

是的，你會看到，你知道，毛利率表現的自然進展以及導致這一結果的各種因素，即隨著行業復甦而改善和工廠利用率，以及我們的負荷隨著我們持續的成本而增加復甦舉措、通路中業務成長的混合、尼爾先前提到的以利潤增值的方式成長業務的各種因素。

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

謝謝。問答環節到此結束。現在我想請薩姆·富蘭克林作結束語。

Thanks, Rick, and thanks, everyone, for joining us today. We appreciate the questions of them. Continue some of the other questions in the call back to a softening. Thanks very much.

謝謝瑞克，謝謝大家今天加入我們。我們感謝他們提出的問題。繼續回電中的一些其他問題以軟化。非常感謝。

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

感謝您參加今天的會議。程式到此結束。您現在可以斷開連線。