微晶片科技 (MCHP) 2021 Q3 法說會逐字稿

Good day, everyone, and welcome to Microchip's Third Quarter Fiscal 2021 Financial Results Conference Call. As a reminder, today's call is being recorded. At this time, I would like to turn the call over to Chief Financial Officer, Eric Bjornholt. Please go ahead.

大家好，歡迎參加 Microchip 2021 財年第三季度財務業績電話會議。提醒一下，今天的通話正在錄音中。此時，我想將電話轉給首席財務官 Eric Bjornholt。請繼續。

Thanks, Pauline, and good afternoon, everyone. During the course of this conference call, we will be making projections and other forward-looking statements regarding future events or the future financial performance of the company. We wish to caution you that such statements are predictions and that actual events or results may differ materially. We refer you to our press releases of today as well as our recent filings with the SEC that identify important risk factors that may impact Microchip's business and results of operations.

謝謝，Pauline，大家下午好。在本次電話會議期間，我們將對未來事件或公司未來的財務業績做出預測和其他前瞻性陳述。我們想提醒您，此類陳述是預測，實際事件或結果可能存在重大差異。請參閱我們今天的新聞稿以及我們最近向美國證券交易委員會提交的文件，這些文件確定了可能影響 Microchip 的業務和運營結果的重要風險因素。

In attendance with me today are Steve Sanghi, Microchip's Chairman and CEO; and Ganesh Moorthy, Microchip's President and COO. I will comment on our third quarter financial performance, and Steve and Ganesh will then give their comments on the results and discuss the current business environment as well as our guidance. We will then be available to respond to specific investor and analyst questions.

今天和我一起出席的有 Microchip 董事長兼首席執行官 Steve Sanghi； Microchip 總裁兼首席運營官 Ganesh Moorthy。我將對我們第三季度的財務業績發表評論，然後 Steve 和 Ganesh 將對結果發表評論，並討論當前的商業環境以及我們的指導意見。然後我們將可以回答具體的投資者和分析師問題。

We had an unintentional posting of our earnings release on our website shortly before the normally scheduled timing today. Once we determined this occurred, we moved quickly to get the releases sent out over our normal distribution processes.

在今天正常安排的時間之前不久，我們無意中在我們的網站上發布了我們的收益發布。一旦我們確定發生這種情況，我們就會迅速採取行動，通過我們的正常分發流程發送發布。

We are including information in our press release and our conference call on various GAAP and non-GAAP measures. We have posted a full GAAP to non-GAAP reconciliation on the Investor Relations page of our website at www.microchip.com, which we believe you will find useful when comparing our GAAP and non-GAAP results. We have also posted a summary of our outstanding debt and our leverage metrics on our website.

我們在新聞稿和電話會議中提供了有關各種 GAAP 和非 GAAP 措施的信息。我們在我們網站 www.microchip.com 的投資者關係頁面上發布了完整的 GAAP 與非 GAAP 對賬，我們相信您在比較我們的 GAAP 和非 GAAP 結果時會發現有用。我們還在我們的網站上發布了未償債務和槓桿指標的摘要。

I will now go through some of the operating results, including net sales, gross margin and operating expenses. Other than net sales, I will be referring to these results on a non-GAAP basis, which is based on expenses prior to the effects of our acquisition activities, share-based compensation and certain other adjustments as described in our press release.

我現在將介紹一些經營業績，包括淨銷售額、毛利率和經營費用。除淨銷售額外，我將在非 GAAP 基礎上提及這些結果，這是基於我們的收購活動、基於股份的薪酬和我們新聞稿中所述的某些其他調整影響之前的費用。

Net sales in the December quarter were $1.352 billion, which was up 3.3% sequentially and above the midpoint of our quarterly guidance. We have posted a summary of our GAAP net sales by product line and geography as well as our total end market demand on our website for your reference.

12 月季度的淨銷售額為 13.52 億美元，環比增長 3.3%，高於我們季度指引的中點。我們已經在我們的網站上發布了按產品線和地理位置劃分的 GAAP 淨銷售額摘要以及我們的終端市場總需求，供您參考。

On a non-GAAP basis, gross margins were a record of 63%, operating expenses were 23.2% and operating income was a record 39.8%. Our factory underutilization charges decreased from $12.2 million to $3.7 million sequentially as we continue to ramp our factories to respond to the strong business conditions. We expect the continued ramp of our factories to lead to no underutilization charges in the March quarter. Non-GAAP net income was $444.9 million. Non-GAAP earnings per diluted share was $1.62, $0.05 above the midpoint of our guidance.

按非美國通用會計準則計算，毛利率達到創紀錄的 63%，營業費用為 23.2%，營業收入達到創紀錄的 39.8%。我們的工廠未充分利用費用從 1220 萬美元連續減少到 370 萬美元，因為我們繼續擴大我們的工廠以應對強勁的商業環境。我們預計我們工廠的持續增長將導致 3 月季度不會產生未充分利用費用。非 GAAP 淨收入為 4.449 億美元。非 GAAP 每股攤薄收益為 1.62 美元，比我們指引的中點高出 0.05 美元。

On a GAAP basis in the December quarter, gross margins were a record at 62.6% and include the impact of $6.4 million of share-based compensation expense. Total operating expenses were $600.2 million and include acquisition intangible amortization of $231.6 million, special charges of $4.3 million, $5.4 million of acquisition-related and other costs and share-based compensation of $44.8 million. The GAAP net income was $36.2 million or $0.13 per diluted share and was adversely impacted by $142.1 million loss on debt settlement associated with debt refinancing activities in the quarter.

在 12 月季度的 GAAP 基礎上，毛利率達到創紀錄的 62.6%，其中包括 640 萬美元的股權補償費用的影響。總運營費用為 6.002 億美元，包括 2.316 億美元的收購無形攤銷、430 萬美元的特殊費用、540 萬美元的收購相關成本和其他成本以及 4480 萬美元的股份補償。 GAAP 淨收入為 3620 萬美元或每股攤薄收益 0.13 美元，受到與本季度債務再融資活動相關的 1.421 億美元債務結算損失的不利影響。

Our December quarter GAAP tax expense was impacted by a variety of factors, notably, the tax benefit recorded on the convertible debt exchange transactions occurring during the period. Our non-GAAP cash tax rate was 4.25% in the December quarter. We expect our non-GAAP cash tax rate for fiscal '21 to be about 4.8%, exclusive of the transition tax, any potential tax associated with restructuring the Microsemi operations into the Microchip global structure and any tax audit settlements related to taxes accrued in prior fiscal years. We have many tax attributes and net operating losses and tax credits as well as U.S. interest deductions that we believe will keep our cash taxes low in the future.

我們 12 月季度的 GAAP 稅收支出受到多種因素的影響，特別是在此期間發生的可轉換債務交換交易中記錄的稅收優惠。我們在 12 月季度的非 GAAP 現金稅率為 4.25%。我們預計 21 財年的非 GAAP 現金稅率約為 4.8%，不包括過渡稅、與將 Microsemi 業務重組為 Microchip 全球結構相關的任何潛在稅收以及與之前應計稅款相關的任何稅務審計結算會計年度。我們有許多稅收屬性和淨營業虧損和稅收抵免以及美國利息減免，我們相信這將使我們的現金稅在未來保持低水平。

Our inventory balance at December 31, 2020, was $666.1 million. We had 120 days of inventory at the end of the December quarter, which was flat to the prior quarter's level. Inventory at our distributors in the December quarter were 26 days, which is a record low level and down from 30 days at the end of the prior quarter. In the current environment, it is quite challenging for Microchip or its distributors to increase days of inventory.

截至 2020 年 12 月 31 日，我們的庫存餘額為 6.661 億美元。我們在 12 月季度末有 120 天的庫存，與上一季度的水平持平。我們經銷商在 12 月季度的庫存為 26 天，創歷史新低，低於上一季度末的 30 天。在當前環境下，Microchip 或其分銷商要增加庫存天數是相當具有挑戰性的。

In the December quarter, we exchanged $1.086 billion of our 2025, 2027 and 2037 convertible subordinated notes for cash, shares of our common stock and a new convertible bond that matures in 2024. While these transactions did not impact the overall level of debt on our balance sheet, we believe that these convertible exchanges will benefit stockholders by significantly reducing share count dilution to the extent our stock price appreciates over time, which Steve will comment on further in his prepared remarks.

在 12 月季度，我們將 2025 年、2027 年和 2037 年的可轉換次級票據中的 10.86 億美元換成了現金、我們的普通股和將於 2024 年到期的新可轉換債券。雖然這些交易並未影響我們的整體債務水平資產負債表，我們相信這些可轉換交易所將通過顯著減少股票稀釋到我們的股票價格隨著時間的推移升值的程度而使股東受益，史蒂夫將在他準備好的評論中進一步評論。

In calendar year 2020, we reduced the amount of convertible bonds on Microchip's balance sheet by approximately $2.9 billion. In the December quarter, we also issued a $1.4 billion senior secured bond with a maturity date of February 15, 2024, and an interest rate of 0.972% and used the proceeds from that transaction to pay off our Term Loan B which we were paying an interest rate of about 2.15% on.

在 2020 日曆年，我們將 Microchip 資產負債表上的可轉換債券數量減少了約 29 億美元。在 12 月季度，我們還發行了 14 億美元的高級擔保債券，到期日為 2024 年 2 月 15 日，利率為 0.972%，並使用該交易的收益來償還我們支付的定期貸款 B利率在2.15%左右。

Our cash flow from operating activities was $509.7 million in the December quarter. As of December 31, our consolidated cash and total investment position was $372.7 million. We paid down $289.7 million of total debt in the December quarter, but please remember that this is inclusive of the cash paid for our various debt financing activities in the quarter, including putting a capped call in place for our newly issued convertible bonds.

我們在 12 月季度的經營活動現金流量為 5.097 億美元。截至 12 月 31 日，我們的合併現金和總投資頭寸為 3.727 億美元。我們在 12 月季度償還了 2.897 億美元的總債務，但請記住，這包括我們在本季度為各種債務融資活動支付的現金，包括為我們新發行的可轉換債券設定上限。

Over the last 10 full quarters since we closed the Microsemi acquisition and incurred over $8 billion in debt to do so, we have paid down $3.24 billion of debt and continue to allocate substantially all of our excess cash beyond dividends to aggressively bring down this debt. We have accomplished this despite the adverse macro and market conditions during most of this period, which we feel is a testimony to the cash generation capabilities of our business as well as the ongoing operating discipline we have. We continue to expect our debt levels to reduce significantly over the next several years.

自從我們完成對 Microsemi 的收購併為此承擔了超過 80 億美元的債務以來的過去 10 個完整季度中，我們已經償還了 32.4 億美元的債務，並繼續分配除股息以外的所有多餘現金，以積極減少這筆債務。儘管在此期間的大部分時間宏觀和市場條件不利，但我們仍然實現了這一目標，我們認為這證明了我們業務的現金生成能力以及我們擁有的持續經營紀律。我們繼續預計未來幾年我們的債務水平將大幅下降。

Our adjusted EBITDA in the December quarter was a record $593.4 million, and our trailing 12-month adjusted EBITDA was $2.271 billion. Our net debt-to-adjusted EBITDA, excluding our very long-dated convertible debt that matures in 2037 and is more equity-like in nature, was 3.93 at December 31, 2020, down from 4.04 at September 30, 2020. But please note that the amount of the 2037 bonds were reduced by $407.7 million during the December quarter as part of the financing transactions, which has impacted this metric. Our dividend payment in the December quarter was $96 million.

我們在 12 月季度調整後的 EBITDA 達到創紀錄的 5.934 億美元，過去 12 個月的調整後 EBITDA 為 22.71 億美元。截至 2020 年 12 月 31 日，我們的淨債務調整後 EBITDA 不包括 2037 年到期且性質更像股權的超長期可轉換債券為 3.93，低於 2020 年 9 月 30 日的 4.04。但請注意作為融資交易的一部分，2037 債券的數量在 12 月季度減少了 4.077 億美元，這影響了該指標。我們在 12 月季度支付的股息為 9600 萬美元。

Capital expenditures were $21.4 million in the December 2020 quarter. We expect between $50 million and $60 million in capital spending in the March quarter and overall capital expenditures for fiscal '21 to be between $87 million and $97 million. In the last quarter's conference call, we explained that our capital expenditure plan for fiscal '21 had increased as we more rapidly prepared for growth in our business as well as actions we were taking to increase our internal capacity in the face of constraints our outsourcing partners are experiencing.

2020 年 12 月季度的資本支出為 2140 萬美元。我們預計 3 月季度的資本支出將在 5000 萬至 6000 萬美元之間，21 財年的總資本支出將在 8700 萬至 9700 萬美元之間。在上一季度的電話會議中，我們解釋說，隨著我們更快地為業務增長做好準備，以及我們在外包合作夥伴面臨限制的情況下為提高內部能力而採取的行動，我們 21 財年的資本支出計劃有所增加正在經歷。

Our fiscal '21 capital expenditures are coming in lower than we indicated last quarter due to longer equipment lead times and deliveries pushing out due to overall industry conditions. We continue to add capital to maintain and operate our internal manufacturing operations, support the production capabilities for our new products and technologies as well to selectively bring in-house some of the wafer fabrication, assembly and test operations that are currently outsourced. We expect these capital investments will bring gross margin improvement to our business and give us increased control over our destiny during periods of industry-wide constraints. Depreciation expense in the December quarter was $40.3 million.

我們的 21 財年資本支出低於我們上個季度的預期，原因是整體行業狀況導致設備交貨時間延長和交付推遲。我們繼續增加資本以維持和運營我們的內部製造業務，支持我們新產品和技術的生產能力，並有選擇地將目前外包的一些晶圓製造、組裝和測試業務引入內部。我們預計這些資本投資將為我們的業務帶來毛利率改善，並讓我們在全行業受限期間更好地控制自己的命運。 12 月季度的折舊費用為 4030 萬美元。

I will now turn it over to Ganesh to give his comments on the performance of the business in the December quarter. Ganesh?

我現在將其轉交給 Ganesh，讓他對 12 月季度的業務表現發表評論。像頭神？

Thank you, Eric, and good afternoon, everyone. Let's start by taking a closer look at microcontrollers. Our microcontroller revenue performed well with revenue sequentially up 3.3% as compared to the September quarter. On a year-over-year basis, our microcontroller revenue was up 5.9%.

謝謝埃里克，大家下午好。讓我們從仔細研究微控制器開始。我們的微控制器收入表現良好，與 9 月季度相比環比增長 3.3%。與去年同期相比，我們的微控制器收入增長了 5.9%。

We continue to introduce a steady stream of innovative new microcontroller solutions, including: the first safety-certified capacitive touchscreen controllers for the home appliance market; the first Trust&GO WiFi module, delivering powerful 32-bit microcontroller functionality and verifiable identity; the industry's highest density secured Ethernet switching solution for hyperscale data centers and telecom service providers; and last but not least, 3 new broad market 8-bit microcontroller families to extend our leadership in this product line. Microcontrollers overall represented 53.7% of our revenue in the December quarter.

我們繼續推出源源不斷的創新微控制器解決方案，包括： 用於家電市場的首款經過安全認證的電容式觸摸屏控制器；第一個 Trust&GO WiFi 模塊，提供強大的 32 位微控制器功能和可驗證身份；業界最高密度的安全以太網交換解決方案，適用於超大規模數據中心和電信服務提供商；最後但同樣重要的是，3 個新的廣泛市場 8 位微控制器系列擴大了我們在該產品線中的領導地位。微控制器總體占我們 12 月季度收入的 53.7%。

Moving to analog. Our analog revenue also performed well and was sequentially up 3.1% as compared to the September quarter. On a year-over-year basis, our analog revenue was up 2.6%. During the quarter, we continued to introduce a steady stream of innovative analog products, too, including the first cryptographic companion device supporting in-vehicle network security solutions; a new family of configurable 12-bit digital-to-analog converters; the first highly integrated radiation-hardened motor controller; and finally, a family of low-latency PCI Express 5.0 and Compute Express Link retimers. Analog represented 27.6% of our revenue in the December quarter.

轉向模擬。我們的模擬收入也表現良好，與 9 月季度相比環比增長 3.1%。與去年同期相比，我們的模擬收入增長了 2.6%。本季度，我們也繼續推出源源不斷的創新模擬產品，包括首款支持車載網絡安全解決方案的加密配套設備；一個新的可配置 12 位數模轉換器系列；第一個高度集成的抗輻射電機控制器；最後，一系列低延遲 PCI Express 5.0 和 Compute Express Link 重定時器。模擬業務占我們 12 月季度收入的 27.6%。

Our FPGA revenue was down 8.5% sequentially as compared to the September quarter. On a year-over-year basis, our FPGA revenue was up 7.1%. As we cautioned on our prior conference calls, FPGA revenue does have some lumpiness associated with it because of the large exposure to the aerospace and defense market and the associated purchasing patterns. During the quarter, we announced a radiation-hardened fourth-generation FPGA family and a low-power radiation-tolerant fifth-generation PolarFire FPGA family. FPGA represented 7.3% of our revenue in the December quarter.

與 9 月季度相比，我們的 FPGA 收入環比下降了 8.5%。與去年同期相比，我們的 FPGA 收入增長了 7.1%。正如我們在之前的電話會議上警告的那樣，由於在航空航天和國防市場以及相關的採購模式中的大量曝光，FPGA 收入確實有一些與之相關的塊狀。本季度，我們發布了抗輻射第四代 FPGA 系列和低功耗抗輻射第五代 PolarFire FPGA 系列。 FPGA 占我們 12 月季度收入的 7.3%。

Our licensing, memory and other product line, which we refer to as LMO, was up 13% in revenue as compared to the September quarter with strength in licensing revenue driving this growth. LMO represented 11.4% of our revenue in the September quarter.

我們的許可、內存和其他產品線（我們稱之為 LMO）的收入與 9 月季度相比增長了 13%，許可收入的強勁推動了這一增長。 LMO 占我們 9 月份季度收入的 11.4%。

A quick note about our product line reporting. Given the relatively smaller size of our FPGA product line at about 7% of our revenue as compared to our microcontroller and analog product lines, we have decided that starting in calendar year 2021, we will no longer break out the FPGA product line separately. Our FPGA products remain important to our overall total system solutions goals. We continue to make significant investments in our FPGA products and expect those investments will help drive our long-term growth and total system solutions initiatives. Going forward, we will combine our FPGA revenue with our LMO, or licensing, memory and other, revenues into a new category that we'll just call Other.

關於我們的產品線報告的快速說明。鑑於與我們的微控制器和模擬產品線相比，我們的 FPGA 產品線規模相對較小，約占我們收入的 7%，我們決定從 2021 日曆年開始，我們將不再單獨細分 FPGA 產品線。我們的 FPGA 產品對我們的總體系統解決方案目標仍然很重要。我們繼續對我們的 FPGA 產品進行大量投資，並期望這些投資將有助於推動我們的長期增長和整體系統解決方案計劃。展望未來，我們將把我們的 FPGA 收入與我們的 LMO，或許可、內存和其他收入合併到一個我們稱之為其他的新類別中。

From an end market standpoint, we continue to see the automotive, industrial and consumer markets strengthened further in the December quarter, approximating a V-shaped recovery in the second half of calendar year 2020 as compared to the first half. The end markets have benefited earlier in the year from the work-from-home-related demand search. Namely, computing, communications and data center remained at more normal demand patterns as the surge we saw in the June quarter dissipated.

從終端市場的角度來看，我們繼續看到汽車、工業和消費市場在 12 月季度進一步走強，與上半年相比，2020 年下半年接近 V 型複蘇。終端市場在今年早些時候從與在家工作相關的需求搜索中受益。也就是說，隨著我們在 6 月季度看到的激增消退，計算、通信和數據中心仍處於更正常的需求模式。

The Huawei ban, which was in effect for all of the December quarter and represented 1% to 2% of our overall revenue, had a more pronounced negative impact on our data center business where it was a more meaningful percentage of that business. Finally, demand for our products that go into the office environment, which we refer to as enterprise demand, remained weak as most businesses remain predominantly with the work-from-home policies that's deferring enterprise spending for the office environment.

華為禁令在整個 12 月季度都有效，占我們總收入的 1% 至 2%，對我們的數據中心業務產生了更明顯的負面影響，因為它在該業務中所佔的比例更大。最後，對我們進入辦公環境的產品的需求（我們稱之為企業需求）仍然疲軟，因為大多數企業仍然主要採用在家工作的政策，這推遲了企業對辦公環境的支出。

The supply chain constraints that started in the September quarter continued to grow through the December quarter. A robust overall business environment, accentuated by rising demand from the automotive, industrial and consumer markets combined with low levels of inventory in the distribution channel resulted in constraints in practically all of our internal and external factories. Since September, we have been ramping our internal factories as well as investing in capital additions to further expand our internal capacity. We have also worked with our supply chain partners to increase our fab, assembly and test capacity allocation.

從 9 月季度開始的供應鏈限制在整個 12 月季度繼續增長。汽車、工業和消費市場不斷增長的需求以及分銷渠道中的低庫存水平加劇了強勁的整體商業環境，導致我們幾乎所有的內部和外部工廠都受到限制。自 9 月以來，我們一直在擴大我們的內部工廠並投資於資本增加，以進一步擴大我們的內部產能。我們還與我們的供應鏈合作夥伴合作，以增加我們的晶圓廠、組裝和測試能力分配。

However, based on the current strength of the business environment, we expect that the constraints we are currently seeing are likely to continue through much of calendar year 2021 and possibly into calendar year 2022. As a result, we have seen our lead time stretch out for many of our products where the constraints are most acute. We have also experienced increases in material and subcontracted manufacturing costs and have taken steps to secure capacity for 2021. Steve will discuss more in his prepared remarks about our actions to address the current environment of increasing manufacturing cost and seemingly insatiable demand.

但是，根據當前的商業環境強度，我們預計我們目前看到的限制可能會持續到 2021 日曆年的大部分時間，並可能持續到 2022 日曆年。因此，我們已經看到我們的交貨時間延長了對於我們的許多產品來說，這些限制最為嚴重。我們還經歷了材料和分包製造成本的增加，並已採取措施確保 2021 年的產能。史蒂夫將在他準備好的發言中更多地討論我們為應對當前製造成本增加和看似永無止境的需求而採取的行動。

Let me now pass it to Steve for comments about our business and our guidance going forward. Steve?

現在讓我把它轉交給史蒂夫，徵求他對我們的業務和我們未來的指導意見。史蒂夫？

Thank you, Ganesh, and good afternoon, everyone. Today, I would like to first reflect on the results of the fiscal third quarter of 2021. I will then provide guidance for the fiscal fourth quarter of 2021.

謝謝 Ganesh，大家下午好。今天，我想首先回顧一下 2021 財年第三季度的結果。然後我將提供 2021 財年第四季度的指導。

The December quarter represented the shift of the business cycle back to revenue growth with a 3.3% sequential growth in a quarter where ordinarily, we would see a 3% sequential decline from typical seasonal factors. December quarter revenue also grew over prior year's December quarter by 5%. We started ramping our internal factories in September as well as investing in capital additions to expand our internal capacity. We also started working with our supply chain partners to receive more allocation from wafer foundries and assembly test subcontractors. These efforts improved product availability in the December quarter but still constrained some of the revenue upside.

12 月季度代表了商業周期向收入增長的轉變，一個季度環比增長 3.3%，而通常情況下，我們會看到典型的季節性因素環比下降 3%。 12 月季度的收入也比上一年的 12 月季度增長了 5%。我們從 9 月開始擴建內部工廠，並投資增資以擴大我們的內部產能。我們還開始與我們的供應鏈合作夥伴合作，從晶圓代工廠和組裝測試分包商那裡獲得更多的分配。這些努力提高了 12 月季度的產品可用性，但仍限制了部分收入增長。

We delivered a record non-GAAP gross margin of 63% helped by significant reduction in factory underutilization and better overhead utilization from revenue growth. We also achieved non-GAAP operating margin of 39.8%, an all-time record and getting very close to an emotional 40% mark. We also hit a record EBITDA of $593.4 million despite revenue not at a record yet showing the robust strength of our business model. Our consolidated non-GAAP EPS was $1.62, $0.05 above the midpoint of our guidance. This was also our 121st consecutive quarter of non-GAAP profitability.

我們實現了創紀錄的 63% 的非 GAAP 毛利率，這得益於工廠未充分利用的顯著減少以及收入增長帶來的更好的間接費用利用率。我們還實現了 39.8% 的非美國通用會計準則營業利潤率，創歷史新高，非常接近情緒化的 40% 大關。我們的 EBITDA 也達到了創紀錄的 5.934 億美元，儘管收入尚未創下歷史新高，但顯示出我們商業模式的強大實力。我們的綜合非 GAAP 每股收益為 1.62 美元，比我們的指引中點高 0.05 美元。這也是我們連續第 121 個季度實現非 GAAP 盈利。

Now I will discuss our guidance for the March quarter. Our bookings were exceptionally strong in the December quarter and were an all-time record. We received bookings both for short term as well as into the future quarters. The backlog is also an all-time record. Please remember that bookings as well as the backlog is what is shippable in the next 12 months. The backlog for the March quarter is the strongest starting backlog I have ever seen. Our bookings have remained strong in January. On the operational side, the December quarter was constrained by product availability. We will have more internal and external capacity in the March quarter since we have had multiple months to ramp, although I believe that wafer fab as well as back-end constraints are here to stay with us through calendar year 2021.

現在我將討論我們對三月季度的指導。我們的預訂在 12 月季度異常強勁，創下歷史新高。我們收到了短期和未來幾個季度的預訂。積壓也是一個歷史記錄。請記住，預訂和積壓訂單是未來 12 個月內可以發貨的。三月季度的積壓是我見過的最強勁的開始積壓。我們在 1 月份的預訂量依然強勁。在運營方面，12 月季度受到產品可用性的限制。我們將在 3 月季度擁有更多的內部和外部產能，因為我們有多個月的時間來提高產量，儘管我相信晶圓廠和後端限制將在 2021 年一直伴隨著我們。

In response to the business environment, we have taken 3 actions. First, in the middle of December, we changed our cancellation and pushout terms with our customers and distributors. The standard terms used to be that an order cannot be canceled or pushed out once it is within 45 days of shipment. We changed our standard terms so that an order cannot be canceled or pushed out within 90 days of shipment effective January 1, 2021. We gave customers a couple of weeks to adjust their backlog before it went firm for 90 days. In response to our change in terms, we did not see any unusual cancellations or pushouts, which indicates to us that the backlog was firm and needed by our customers. That gave us a solid backlog for the March quarter, which cannot be canceled or pushed out. Therefore, we can batch process the orders and use our manufacturing assets most efficiently knowing that what we build will get shipped.

針對營商環境，我們採取了3項行動。首先，在 12 月中旬，我們更改了與客戶和分銷商的取消和推出條款。過去的標準條款是，訂單一旦在發貨後 45 天內就不能取消或推遲。我們更改了標準條款，以便自 2021 年 1 月 1 日起生效的發貨後 90 天內不能取消或推遲訂單。我們給客戶幾週的時間來調整他們的積壓，然後再確定 90 天。作為對我們條款變更的回應，我們沒有看到任何不尋常的取消或推出，這向我們表明積壓是堅定的，我們的客戶需要。這給我們帶來了 3 月季度的大量積壓，無法取消或推遲。因此，我們可以批量處理訂單並最有效地使用我們的製造資產，因為我們知道我們製造的產品將被發貨。

The second action we took was that we sent a letter to our customers on January 4, 2021, informing them of the business environment. We also informed them that we are seeing broad-based cost increases and some aggressive commercial terms from our supplier base, and we must pass these cost increases to our customers through a broad-based price increase.

我們採取的第二個行動是我們在2021年1月4日給我們的客戶發了一封信，告知他們商業環境。我們還告知他們，我們看到供應商基礎廣泛的成本增加和一些激進的商業條款，我們必須通過廣泛的價格上漲將這些成本增加轉嫁給我們的客戶。

The third action we took just this morning. We posted a letter on our website and sent it to our customers and distributors announcing a new program called the Microchip Preferred Supply Program, or PSP. This program offers our customers the ability to receive prioritized capacity in the second half 2021 and first half 2022.

我們今天早上採取的第三項行動。我們在我們的網站上發布了一封信，並將其發送給我們的客戶和分銷商，宣布了一項名為 Microchip 首選供應計劃或 PSP 的新計劃。該計劃使我們的客戶能夠在 2021 年下半年和 2022 年上半年獲得優先容量。

The program has the following elements: the customers participating in this program will have to place 12 months of orders, which will be noncancelable and non-reschedulable. The capacity priority will begin for shipments in July 2021. The program will not be a guarantee of supply. However, it will provide the highest priority for those orders which are under this PSP program. And the capacity priority will be on a first-come, first-served basis until the available capacity is booked. We will, of course, reserve a portion of our capacity for new customers, small long-tail customers and new designs.

該計劃包含以下要素：參與該計劃的客戶必須下達 12 個月的訂單，該訂單不可取消且不可重新安排。產能優先權將於 2021 年 7 月開始發貨。該計劃不會保證供應。但是，它將為屬於此 PSP 計劃的那些訂單提供最高優先級。在預訂可用容量之前，容量優先級將按照先到先得的原則進行。當然，我們會保留一部分產能給新客戶、小長尾客戶和新設計。

We expect that a significant portion of our capacity will be booked under this new program. With a large, committed, noncancelable backlog for 12 months, Microchip will be in a stronger position to make capacity and raw material commitments to our suppliers, buy capital equipment with confidence, hire employees and ramp up manufacturing and manufacture products more efficiently.

我們預計我們的很大一部分運力將根據這個新計劃被預訂。憑藉長達 12 個月的大量、承諾的、不可取消的積壓訂單，Microchip 將更有能力向我們的供應商做出產能和原材料承諾，充滿信心地購買資本設備，僱用員工並更有效地提高製造和製造產品。

Taking all these factors into consideration, we expect our net sales for March quarter to be up between 5% to 10% sequentially. The March quarter guidance at the midpoint would represent record GAAP net sales with the prior record being in the September quarter of 2018. The September quarter of 2018, based on GAAP sell-in revenue recognition, was $1.432 billion.

考慮到所有這些因素，我們預計 3 月季度的淨銷售額將環比增長 5% 至 10%。中點的 3 月季度指引將代表創紀錄的 GAAP 淨銷售額，之前的記錄是在 2018 年 9 月季度。根據 GAAP 銷售收入確認，2018 年 9 月季度為 14.32 億美元。

Some of you may still carry a sell-through-based number of $1.513 billion for September 2018 in your historical financial model spreadsheets. The March quarter will also be limited by product availability on many product lines. Our guidance assumes working through a myriad of capacity constraints qualifying incremental equipment installed, qualifying alternate subcontractors in some cases and still dealing with the risk of production constraints with a new wave of COVID cases plaguing the planet and at the same time, ramping up vaccinations.

在您的歷史財務模型電子表格中，有些人可能仍會保留 2018 年 9 月基於銷售的 15.13 億美元的數字。三月季度還將受到許多產品線的產品可用性的限制。我們的指南假設要克服無數的產能限制，使安裝的增量設備合格，在某些情況下使替代分包商合格，並且仍在應對生產受限的風險，新一波 COVID 病例困擾著地球，同時加強疫苗接種。

For the March quarter, we expect our non-GAAP gross margin to be between 63.3% and 63.7% of sales, which would be a new all-time record. We expect non-GAAP operating expenses to be between 23.2% and 23.6% of sales, and we expect non-GAAP operating profit percentage to be between 39.7% and 40.5% of sales. We expect our non-GAAP earnings per share to be between $1.67 per share to $1.79 per share. We also expect to pay down another approximately $350 million of our debt in the March quarter.

對於 3 月季度，我們預計我們的非 GAAP 毛利率將在銷售額的 63.3% 至 63.7% 之間，這將創下歷史新高。我們預計非 GAAP 營業費用佔銷售額的 23.2% 至 23.6%，我們預計非 GAAP 營業利潤佔銷售額的百分比在 39.7% 至 40.5% 之間。我們預計我們的非 GAAP 每股收益將在每股 1.67 美元至 1.79 美元之間。我們還預計在 3 月季度再償還約 3.5 億美元的債務。

Finally, I want to cover one other area, which is our future cash return strategy. At the rate we're paying down debt, we expect to break a net leverage of 3 within a year and continue to decrease from there. At that time, we expect to begin distributing more of a substantial amount of free cash flow to the investors in the form of dividends and stock buybacks.

最後，我想談談另一個領域，那就是我們未來的現金回報策略。按照我們償還債務的速度，我們預計將在一年內打破 3 的淨槓桿率，並從那裡繼續下降。屆時，我們預計將開始以股息和股票回購的形式向投資者分配更多大量自由現金流。

Regarding buybacks, through multiple tranches of convertible debt buyback, we have essentially bought a substantial amount of stock back from the future. This is because as the stock price rises and exceeds the conversion price of the debt, convertible debt dilutes the share count. [Trying to] convert back prevents future dilution as the stock price rises. Our first convert buyback was in March 2020 when Microchip's stock price was about $71. Since then, we have done 4 other buyback transactions at various stock prices.

關於回購，通過多批可轉換債券回購，我們基本上從未來回購了大量股票。這是因為隨著股價上漲並超過債務的轉換價格，可轉換債務會稀釋股票數量。 [試圖]轉換回來防止未來隨著股價上漲而稀釋。我們的第一次轉換回購是在 2020 年 3 月，當時 Microchip 的股價約為 71 美元。從那時起，我們又以不同的股票價格進行了另外 4 次回購交易。

By doing these various buyback transactions, we have purchased a total of $3.525 billion in face value of our convertible bonds. For the transactions from March 2020 to September 2020, we issued a total of about 20.4 million shares of our common stock to the investors for in-the-money value of their bonds. If these bonds have remained outstanding until an assumed stock price of $140 per share with the stock price about now, the dilution would have been about 26.4 million shares.

通過這些不同的回購交易，我們購買了面值總計 35.25 億美元的可轉換債券。在 2020 年 3 月至 2020 年 9 月的交易中，我們向投資者發行了總計約 2040 萬股普通股，以換取其債券的價內價值。如果這些債券在假設股價為每股 140 美元和現在的股價之前一直未償還，那麼稀釋將約為 2640 萬股。

Thus, our repurchases had the impact of creating a savings of about 6 million shares worth $840 million savings to our investors at $140 per share. This calculation does not include our November 2020 transaction, which was very recent and executed at $133.47 per share, so it is not yet accretive. Therefore, while we have not done an open market stock buyback in the last year, our convert transactions have had the impact of a buyback of approximately 6 million shares. At some point in the future, we expect to start pure stock buyback from the open market.

因此，我們的回購以每股 140 美元的價格為我們的投資者節省了約 600 萬股，價值 8.4 億美元。此計算不包括我們 2020 年 11 月的交易，該交易是最近的，以每股 133.47 美元的價格執行，因此尚未增值。因此，雖然去年我們沒有進行公開市場股票回購，但我們的轉換交易產生了約 600 萬股回購的影響。在未來的某個時候，我們預計會從公開市場開始純股票回購。

We are also initiating a path to higher dividends and not waiting until our leverage reaches a given number before the dividend starts to increase. In this regard, we announced today that the Board of Directors have approved a dividend increase of 5.8% sequentially to $0.39 per share, up from $0.3685 previously. We expect to continue to increase dividends quarterly as part of our cash return strategy.

我們也在開闢一條通往更高股息的道路，而不是等到我們的槓桿率達到給定的數字才開始增加股息。在這方面，我們今天宣布，董事會已批准將股息連續增加 5.8% 至每股 0.39 美元，高於之前的 0.3685 美元。作為現金回報戰略的一部分，我們預計將繼續每季度增加股息。

Given all of the complications of accounting for our acquisitions, including amortization of intangibles, restructuring charges and inventory write-up on acquisitions, Microchip will continue to provide guidance and track its results on a non-GAAP basis except for net sales which will be on a GAAP basis. We believe that non-GAAP results provide more meaningful comparison to prior quarters, and we expect that the analysts -- and we request that the analysts continue to report their non-GAAP estimates to first call.

考慮到我們收購會計的所有復雜性，包括無形資產攤銷、重組費用和收購庫存增記，Microchip 將繼續提供指導並在非 GAAP 基礎上跟踪其結果，但淨銷售額除外GAAP 基礎。我們相信，非 GAAP 業績與前幾個季度相比提供了更有意義的比較，我們希望分析師 - 我們要求分析師繼續報告他們的非 GAAP 估計，以進行首次通話。

With this, Pauline, will you please pool for questions?

有了這個，Pauline，你可以提問嗎？

(Operator Instructions) And we'll take the first question at this time.

（操作員說明）我們現在將回答第一個問題。

We can't hear you. Maybe you're on mute.

我們聽不到你的聲音。也許你在靜音。

Steve, can you hear me?

史蒂夫，你能聽到我說話嗎？

Yes, now.

是現在。

Apologize. I didn't hear my name get called. I just heard caller. Apologize for that. Just really quickly. We've lived through multiple times of you sending out customer letters, and we kind of have an understanding of how the market responds to that. I'd be kind of curious, the preferred supplier agreement that you talked about in your opening remarks, is this the first time that you have done that? And if it's not, what's been the historical response to programs like this?

道歉。我沒有聽到有人叫我的名字。我剛聽到來電者。為此道歉。真的很快。我們經歷過你多次發送客戶信件，我們有點了解市場對此的反應。我有點好奇，您在開場白中談到的首選供應商協議，這是您第一次這樣做嗎？如果不是，歷史上對此類程序的反應是什麼？

So the Preferred Supply Program is brand new. I have not ever implemented it in my 42 years of career, and I have never seen anybody else do that, too. The program is largely a response to the current environment because bookings level is just so strong and people are booking parts out in time. The industry seems to be 30% plus short to really what the capacity requirement is. And many of our customers have been asking what can they do if they give us longer-term demand, longer-term orders. Will that give them parts? Will that give them better support?

所以首選供應計劃是全新的。在我 42 年的職業生涯中，我從未實施過它，我也從未見過其他人這樣做過。該計劃在很大程度上是對當前環境的回應，因為預訂水平非常高，人們及時預訂零件。該行業似乎還有 30% 以上的產能需求不足。我們的很多客戶一直在問，如果他們給我們更長期的需求、更長期的訂單，他們能做什麼。那會給他們零件嗎？這會給他們更好的支持嗎？

Now customers can give us longer-term orders. But if the orders are cancelable or reschedulable after 90 days, which was the case prior to the program, then I could have a lot of orders for September and December and could buy capital, hire people to ramp. But just before I get there, people could cancel if there was a double ordering, people were asking more than they need and they cancel part of the orders. So that is often the problem always, and you guys ask the question, is there any double ordering or whatever. And this program basically eliminates all that. It asks the customers to place 12 months of backlog, which will be noncancelable, non-reschedulable so I can take that one to the bank, buy raw material, do batch processing, grow the capacity and give them preferential supply. So this is the first time we have implemented it. It's just the need of the times.

現在客戶可以給我們長期訂單。但是，如果訂單在 90 天后可以取消或重新安排（計劃之前就是這種情況），那麼我可能會在 9 月和 12 月有很多訂單，並且可以購買資金，僱人來增加產量。但就在我到達那里之前，如果有重複訂單，人們可以取消，人們的要求超出了他們的需要，他們取消了部分訂單。所以這通常是問題所在，你們會問這個問題，是否存在雙重排序或其他問題。而這個程序基本上消除了所有這些。它要求客戶放置 12 個月的積壓訂單，這將是不可取消的，不可重新安排的，所以我可以把它帶到銀行，購買原材料，進行批處理，增加產能並給他們優惠供應。所以這是我們第一次實施它。這只是時代的需要。

And I know it was just this morning, but what do you expect the intended response to be from your customers?

我知道就在今天早上，但您希望客戶的預期反應是什麼？

Well, a small number of customers we already have feedback through the day, including a couple of distributors, the response is positive. They would place such orders. I don't expect any customer to place their entire backlog on every product on the PSP program because customers themselves have some programs where they are solid, that the demand is good, they have a good market share on that particular design. But some others could be some new programs where the demand is yet not known. So I think customers will really take a lot of the product and put it on PSP and some others that they won't.

好吧，我們已經收到了一小部分客戶的反饋，包括一些經銷商，他們的反應是積極的。他們會下這樣的訂單。我不希望任何客戶將他們的全部積壓訂單放在 PSP 計劃的每個產品上，因為客戶自己有一些可靠的計劃，需求很好，他們在特定設計上有很好的市場份額。但其他一些可能是一些需求尚不清楚的新項目。所以我認為客戶真的會把很多產品放在 PSP 和其他一些他們不會的產品上。

And we'll take the next question. It comes from Toshiya Hari.

我們將回答下一個問題。它來自 Toshiya Hari。

Steve and Ganesh, given the current supply and demand situation, what are your thoughts on pricing across your microcontroller and analog business? And if you can kind of speak to gross margins on the back of that, that would be helpful. And I guess sort of related to that, given the preferred supplier program, how should we think about the economics of that program?

Steve 和 Ganesh，鑑於當前的供需形勢，您對微控制器和模擬業務的定價有何看法？而且，如果您可以在此基礎上談及毛利率，那將很有幫助。我想這與此有關，考慮到首選供應商計劃，我們應該如何考慮該計劃的經濟性？

So we sent a letter to our customers on January 4, really informing them, first, of the business environment and also informing them that we were seeing broad-based cost increases and some very aggressive commercial terms from our suppliers who were facing similar issues from their suppliers really up and down the supply chain and we must pass these cost increases to our customers through really a broad-based price increase. So after writing that letter, then we need to really develop that program, and we've got several hundred thousand SKUs and going through the price increase on which part and how much and passing on to the customers, working through their contracts and long-term prices and stuff like that. So all that really has been implemented at this point in time. We aren't breaking out what portion of the guidance is price increase. That's kind of relatively difficult. But the price increases have already been made effective.

所以我們在 1 月 4 日給我們的客戶發了一封信，首先真正地告知他們商業環境，並告知他們我們看到廣泛的成本增加和我們的供應商的一些非常激進的商業條款，他們面臨著類似的問題來自他們的供應商確實在供應鏈上上下下，我們必須通過真正廣泛的價格上漲將這些成本增加轉嫁給我們的客戶。所以在寫完那封信之後，我們需要真正開發那個程序，我們有幾十萬個 SKU 並經歷了哪些部分和多少的價格上漲，然後傳遞給客戶，通過他們的合同和長期 -期限價格之類的。所以所有這些都在這個時間點真正實施了。我們沒有透露指導的哪一部分是價格上漲。那是相對困難的。但漲價已經生效。

As far as the economics of the PSP program, the economics of the PSP program really are in having a committed noncancelable, non-reschedulable backlog on the books that we can build it in batches, buy raw material ahead if we wanted, increase our inventory if we wanted to serve that and build it whenever we have a lull. Essentially, that's where the economics are to be able to serve the customers better who joined the program and Microchip not be subject to ordering more than they need and double ordering because they're not going to double order and order more than they need if they cannot reschedule or cancel. So that's where the economics are. There's no price change with that price program. It's totally separate. I don't know if that answers your question.

就 PSP 計劃的經濟性而言，PSP 計劃的經濟性實際上在於有一個承諾的不可取消、不可重新安排的積壓訂單，我們可以分批構建它，如果需要，可以提前購買原材料，增加我們的庫存如果我們想在我們有平靜的時候提供服務並構建它。從本質上講，這就是經濟學能夠更好地為加入該計劃的客戶提供服務的地方，而 Microchip 不會受到超出他們需要的訂單和重複訂購的影響，因為如果他們不會重複訂購和訂購超過他們需要的訂單不能重新安排或取消。這就是經濟學所在。該價格計劃沒有價格變化。它是完全獨立的。我不知道這是否回答了你的問題。

We'll take the next question. It comes from Vivek Arya.

我們將回答下一個問題。它來自 Vivek Arya。

Steve, you used the phrase significant revenue growth in calendar '21, and you're starting the year at about 10% year-on-year growth. Is that a significant number? Is it something higher than that? And more importantly, what kind of growth can your supply chain support this year?

史蒂夫，你在 21 年日曆中使用了收入顯著增長這一短語，而你今年年初的同比增長率約為 10%。這是一個重要的數字嗎？有比這更高的東西嗎？更重要的是，今年您的供應鏈可以支持什麼樣的增長？

Well, I -- I don't know, you must have not heard what I said. I thought I talked about -- the question really was that Street had 7% growth. Do you expect something higher than that? And my answer was yes. So whatever anybody interpreted it, I don't know what significant means. And I can't really give you a number for the growth for the year, although I think the revenue is more constrained by capacity than the demand, at least now and for the next several quarters.

好吧，我——我不知道，你一定沒有聽到我說的話。我以為我談到了——問題真的是 Street 有 7% 的增長。你期待比這更高的東西嗎？我的回答是肯定的。所以無論任何人解釋它，我都不知道重要的意思是什麼。我真的不能給你今年的增長數字，儘管我認為收入更多地受到產能的限製而不是需求，至少現在和接下來的幾個季度是這樣。

Which leads to your second question, what can -- what kind of growth the supply chain support. I think one of the problems that we're dealing with is that the supply chain is not as stable. We're finding that the assembly test subcontractor will commit that they can do x number of parts per week, and as we get there, they would change that number. They would lower that number or push it out by a couple of weeks. Well, what happened? What happened was they got a de-commitment from their suppliers. They didn't get some bonders they were expecting. They couldn't hire some people. Somebody tested positive for COVID, so they had to send 50 people home who had come in contact with it.

這就引出了你的第二個問題，供應鏈可以支持什麼樣的增長。我認為我們正在處理的問題之一是供應鏈不穩定。我們發現裝配測試分包商承諾他們每周可以做 x 件零件，當我們到達那裡時，他們會改變這個數字。他們會降低這個數字或將其推遲幾週。那麼，發生了什麼事？發生的事情是他們從供應商那裡得到了解除承諾。他們沒有得到他們期望的一些債券。他們不能僱用一些人。有人 COVID 檢測呈陽性，因此他們不得不將 50 名接觸過該病毒的人送回家。

So there's no slack in the system. Everything that gets built gets shipped. There's absolutely no slack in the system. So any perturbation, there was an earthquake in Taiwan, we had a car that hit our substation in a fab in Oregon that knocked out about 3 or 4 days, partial knockout, not complete, none of those things are [amicable] because all factories are working 7 days a week, full board. So any delay in equipment just leads to a de-commitment. So I think those are all the myriad of problems we are dealing with in adding equipment, adding people, qualifying additional subcontractors, getting our customers to waive qualification.

所以系統中沒有鬆弛。建造的一切都會被運送。系統絕對沒有鬆懈。所以任何擾動，台灣發生了地震，我們有一輛汽車撞到了我們在俄勒岡州一家工廠的變電站，大約停工了 3 或 4 天，部分停工，不完全，這些事情都不是 [友好的] 因為所有工廠每週工作 7 天，全食宿。因此，設備的任何延遲只會導致取消承諾。所以我認為這些都是我們在增加設備、增加人員、對額外分包商進行資格審查、讓我們的客戶放棄資格方面要處理的所有問題。

Automotive are the hardest customers to qualify production in a different plan or to approve a change. And in the last 6 months, we have been so successful in getting even all the automotive customers that they would buy the product from this alternative assembly site or test site and all that. So we're getting help in that area, but it's still a very, very complicated process to put it all together. And therefore, we're not willing to dollarize the number or what percentage we could grow, not yet.

汽車行業是最難通過不同計劃進行生產或批准變更的客戶。在過去的 6 個月裡，我們非常成功地吸引了所有汽車客戶，以至於他們願意從這個替代裝配站點或測試站點等購買產品。因此，我們在該領域獲得了幫助，但將所有這些放在一起仍然是一個非常非常複雜的過程。因此，我們還不願意將數字或我們可以增長的百分比美元化。

We'll take the next question. It comes from Craig Hettenbach.

我們將回答下一個問題。它來自 Craig Hettenbach。

Steve, just a question on the disti inventory at 26 days. When would you expect that to perhaps get back to kind of within normal ranges? And any trends you could share just by geography in terms of disti resales?

史蒂夫，只是關於 26 天的 disti 庫存的問題。您預計什麼時候可能會回到正常範圍內？在分銷轉售方面，您可以僅按地理位置分享任何趨勢嗎？

So distribution would love to grow the inventory in this environment to serve the end customers better. But disti inventory can't grow. There is just not enough product available to grow the inventory because the product keeps getting shipped out. Another point I would like to make is that our inventory as well as distributor inventory is calculated based on last 90 days of sales. So it's based on the prior quarter. So essentially, if you -- the real value of the inventory is to support the future.

因此，分銷部門希望在這種環境下增加庫存，以更好地為最終客戶服務。但是disti庫存不能增長。只是沒有足夠的產品來增加庫存，因為產品不斷運出。我想指出的另一點是，我們的庫存以及分銷商庫存是根據過去 90 天的銷售額計算的。所以它基於上一季度。所以從本質上講，如果你——庫存的真正價值是支持未來。

So if you take our guidance and take the midpoint of that guidance, let's say, and calculate the days of distributor inventory or Microchip inventory based on that guidance, then the inventory numbers are extremely low. But they're calculated as we report, which is a standard convention based on the prior 90 days. In a very stable environment, flat sales, it doesn't matter. But in a significant growth, the real inventory is actually much lower than the numbers we're reporting. And we don't think it's going to grow. I think our internal inventory will drop this quarter, we expect, by several days, and distribution will do the same.

因此，如果您採用我們的指導並採用該指導的中點，比方說，並根據該指導計算分銷商庫存或 Microchip 庫存的天數，那麼庫存數量會非常低。但它們是按照我們的報告計算的，這是基於前 90 天的標準慣例。在非常穩定的環境下，銷量平平，無所謂。但在顯著增長的情況下，實際庫存實際上遠低於我們報告的數字。而且我們認為它不會增長。我認為本季度我們的內部庫存將下降，我們預計會下降幾天，分銷也會如此。

Got it. And then just a follow-up for Ganesh on the total system solution. Any progress there or things you can share with us in terms of developments?

知道了。然後只是 Ganesh 對整個系統解決方案的跟進。在發展方面有什麼進展或可以與我們分享的事情嗎？

Sure. So it's not a 1 quarter of progress. It's a multi-quarter activity that we've had. The processes that need to be put in place have been there. New processes are going in. It is reflected in how we see the design activity taking place, some of which we've shared anecdotally in some of the conferences. We will share some more this coming quarter as well. But I think the power of the whole coming together, putting all the different parts of Microchip on a customer's board, is very much strong and alive and a key part of our growth strategy.

當然。所以這不是四分之一的進展。這是我們開展的多季度活動。需要到位的流程已經存在。新的流程正在進入。這反映在我們如何看待設計活動的發生上，其中一些我們已經在一些會議上分享過。我們還將在下個季度分享更多內容。但我認為，將 Microchip 的所有不同部分放在客戶板上的整體力量是非常強大和活躍的，是我們增長戰略的關鍵部分。

We'll take the next question. It comes from Gary Mobley.

我們將回答下一個問題。它來自 Gary Mobley。

So I know you started the December quarter with your distributor inventory levels slightly below average. And it looks like you under shipped into the channel by about $26 million in the December quarter. Is that how we should think about perhaps what -- how much higher your revenue could have been if you had available production capacity and whatnot in a similar amount as we look out into the March quarter?

所以我知道您在 12 月季度開始時經銷商庫存水平略低於平均水平。看起來您在 12 月季度向渠道的發貨量少了約 2600 萬美元。這就是我們應該考慮的方式——如果你有可用的生產能力，你的收入本可以高出多少，而在我們展望 3 月季度時，收入可能會增加多少？

Well, we had unsupported orders for every geography for every product line for direct as well as for distribution. So just picking a number that the distribution inventory went down by and just saying that's the revenue we missed for the December quarter will not be [equative]. We're not breaking out the number, but the total amount of revenue that we missed also was also from direct and essentially, every geography.

好吧，對於直接和分銷的每條產品線，我們在每個地理區域都有不受支持的訂單。因此，只需選擇一個分銷庫存下降的數字，然後說這是我們在 12 月季度錯過的收入就不會 [相等]。我們沒有公佈具體數字，但我們錯過的總收入也來自直接且基本上來自每個地區。

Okay. As my follow-up, I wanted to ask about your philosophy towards M&A when you get to that magical net leverage ratio of less than 3x. Is that -- should we take that to mean that you're also open to some M&A transactions at that point as well?

好的。作為我的後續行動，我想問一下當你達到低於 3 倍的神奇淨槓桿率時你對併購的看法。那是——我們是否應該認為這意味著您在那個時候也對一些併購交易持開放態度？

I think we have spoken extensively about this in the past, saying that we believe there was an era of M&A in the last 12 years or so. We did 16, 17, 18 acquisitions, a few large ones public and lots of them small private. And all of that was intended to scale the company 10x or so, and now we are over $5.4 billion company and really not have a scale disadvantage to our competitors. I think we have achieved that. And today, we have a product line with which we can complete a customer's entire solution and essentially have all the parts built out of Microchip products. And other than resistors and capacitors and connectors and battery, everything else is really made from Microchip.

我想我們過去已經廣泛談論過這個問題，說我們相信在過去 12 年左右的時間裡有一個併購時代。我們進行了 16 次、17 次、18 次收購，其中一些是大型的公開收購，還有很多是小型的私人收購。所有這些都是為了將公司規模擴大 10 倍左右，現在我們的公司市值超過 54 億美元，與我們的競爭對手相比確實沒有規模劣勢。我認為我們已經做到了。今天，我們擁有一條產品線，我們可以用它來完成客戶的整個解決方案，並且基本上所有部件都是由 Microchip 產品構建的。除了電阻器、電容器、連接器和電池，其他所有東西都是由 Microchip 製造的。

So today, there is not that need for M&A, and there are no gaping holes. So we are really building our strategy going forward on organic growth built from really large amount of success in providing total system solutions to the customers. There could be a tuck-in acquisition here and there, private, small, really buying some people which is a technology pipeline or something like that. But there's really no plan currently for doing any kind of large acquisition even after we reach a certain leverage.

所以今天，沒有併購的必要，也沒有漏洞。因此，我們確實在為客戶提供整體系統解決方案方面取得的巨大成功而建立有機增長的戰略。可能會到處進行收購，私人的，小的，真正購買一些人，這是一條技術管道或類似的東西。但是，即使在我們達到一定的影響力之後，目前也確實沒有進行任何類型的大型收購的計劃。

We'll take the next question. It comes from Chris Caso.

我們將回答下一個問題。它來自克里斯卡索。

The first question is about some of the capacity additions that you're undertaking now. Could you talk about, one, the direction of CapEx over the next couple of quarters as you try to address these -- some of these supply constraints? How long does it take to get the capacity in place? And then lastly, to what extent are you looking to address these constraints through internal means as opposed to getting them through outsourcing? What's going to be the quicker and more sustainable path to getting some more product to your customers?

第一個問題是關於您現在正在進行的一些容量增加。您能否談談未來幾個季度資本支出的方向，因為您試圖解決這些 - 其中一些供應限制？需要多長時間才能使容量到位？最後，您希望在多大程度上通過內部方式而不是通過外包來解決這些限制？為您的客戶提供更多產品的更快、更可持續的途徑是什麼？

Eric, you want to take the CapEx question?

埃里克，你想回答資本支出問題嗎？

Sure. Sure. So we've indicated that in the very short term, so the March quarter, we're expecting to spend between $50 million and $60 million in CapEx. We've kind of given general guidance to The Street that longer term, we expect our CapEx as a percentage of net sales to be somewhere between 3% and 4%. This quarter, we'll be going through our annual operating plan for our next fiscal year, and we'll provide kind of a more detailed forecast in fiscal '22. But I wouldn't be surprised if we're on the high end of that range for next fiscal year. We've been well below it for the last 2 fiscal years. And so [quite clearly], the demand environment is driving that.

當然。當然。因此，我們已經表示，在非常短期內，即 3 月季度，我們預計將在 CapEx 上花費 5000 萬至 6000 萬美元。我們已經為 The Street 提供了長期的一般指導，我們預計我們的資本支出占淨銷售額的百分比將在 3% 到 4% 之間。本季度，我們將完成下一財年的年度運營計劃，我們將在 22 財年提供更詳細的預測。但如果我們在下一財年處於該範圍的高端，我不會感到驚訝。在過去的兩個財政年度中，我們一直遠低於它。所以[非常清楚]，需求環境正在推動這一點。

And I'll start with the second piece of the question and Steve or Ganesh can add on to it, but we have been making significant investments in assembly and test expansion. And actually, this last quarter, we did 55% of our assembly in-house. That's up significantly quarter-on-quarter, and we did 57% of our final test in-house. So these metrics tend to be slow moving, but we are making progress on that and it's allowing us to take a little bit more control of our own destiny. So with that, I'll turn it back to Steve.

我將從問題的第二部分開始，Steve 或 Ganesh 可以補充，但我們一直在組裝和測試擴展方面進行了大量投資。實際上，在上個季度，我們在內部完成了 55% 的裝配。這比上一季度有了顯著增長，我們在內部完成了 57% 的最終測試。所以這些指標往往進展緩慢，但我們正在這方面取得進展，這讓我們能夠更多地控制自己的命運。因此，我會把它轉回給史蒂夫。

So I think one of your questions implied that what portion of the CapEx we were spending for internal versus external. I think 100% of our CapEx is really being applied to grow the capacity internally. The external capacity growth, we're getting it just by getting larger allocation and negotiating for a larger piece of the total capacity pie at the foundries and subcontractors. We're not really spending our CapEx dollars in growing their capacity. But our capacity is growing significantly outside also. But overall, as Eric mentioned, especially in the assembly and test area, a large portion of the capacity growth is happening inside.

所以我認為你的一個問題暗示我們將資本支出的哪一部分用於內部和外部。我認為我們 100% 的資本支出真正用於提高內部產能。外部產能增長，我們只是通過在代工廠和分包商處獲得更大的分配和談判以獲得更大的總產能蛋糕來獲得它。我們並沒有真正將我們的資本支出資金用於提高他們的產能。但我們的產能在外部也顯著增長。但總體而言，正如 Eric 提到的，尤其是在封裝和測試領域，很大一部分產能增長發生在內部。

All right. As a follow-up, given the strongly better-than-seasonal March, the fact that you've got backlog that's difficult to fill all of that, how do we think about seasonality through the rest of the year? And there are always difficult questions right now, but any kind of qualitative comments that you could provide would be helpful.

好的。作為後續行動，鑑於 3 月的季節性好於季節性，您積壓的訂單很難填補所有這些，我們如何看待今年餘下時間的季節性？現在總是有困難的問題，但是您可以提供任何類型的定性評論都會有所幫助。

I think seasonality has been difficult to define for Microchip for some time because of all these acquisitions. And especially with Microsemi, the end market mix changed so much that we said, if you've got a year or 2 years of stable environment, then one could figure out what the seasonality would be. And we haven't gotten that stable environment. First was the U.S.-China trade then last year was COVID. And this year is just runaway growth or capacity constraints. So in this environment, it's not the seasonal factor that's changing what you can or cannot do. It's a combination of how much capacity you can grow, what the overall demand is. So I can't really comment much on seasonality in this kind of environment.

我認為由於所有這些收購，一段時間以來很難為 Microchip 定義季節性。特別是對於 Microsemi，終端市場組合發生了很大變化，以至於我們說，如果你有一年或兩年的穩定環境，那麼人們就可以弄清楚季節性是什麼。而且我們還沒有得到那種穩定的環境。首先是美中貿易，然後是去年的 COVID。而今年只是失控的增長或產能限制。所以在這種環境下，改變你能做什麼或不能做什麼的不是季節性因素。它結合了您可以增加多少容量，以及總體需求是多少。所以我真的不能對這種環境下的季節性發表太多評論。

We'll take the next question. It comes from Harlan Sur.

我們將回答下一個問題。它來自哈蘭蘇爾。

Maybe as a follow-up to the last question. I know the difficulties and complexities in quantifying full year revenue generation potential, but maybe more near term. I assume that the team is almost fully booked for the June quarter, maybe you guys can confirm that, and that would include any unshipped delinquencies from March. In June, we could argue about seasonality, but typically, June is up sequentially. So your foundry wafer requirements are probably already fixed for June given the lead times from your foundry partners. But wondering if you guys would be able to bring on and qualify additional wafers and assembly and test capacity in time to support higher levels of revenues from where you are here in March, if it plays out that way in June.

也許作為最後一個問題的後續行動。我知道量化全年創收潛力的困難和復雜性，但可能更近期。我假設該團隊在 6 月季度的預訂幾乎已滿，也許你們可以確認這一點，這將包括 3 月以來任何未發貨的拖欠。在 6 月，我們可能會爭論季節性，但通常情況下，6 月是連續上漲的。因此，考慮到代工合作夥伴的交貨時間，您的代工晶圓需求可能已經確定為 6 月。但是想知道你們是否能夠及時引進和鑑定額外的晶圓以及組裝和測試能力，以支持你們在 3 月份在這裡的更高水平的收入，如果它在 6 月份以這種方式發揮作用。

So you can't qualify different fabs in a matter of 3 months or 6 months. Depending on what the process and products are, it's a much longer effort. So a lot of the capacity growth is really coming out of growing capacity where the processes are already installed. We got some processes that are installed outside as well as inside. And most of the other -- the majority of our processes either run outside or run inside. And when they run outside, they usually only either run in one foundry or the other foundry.

所以你不能在 3 個月或 6 個月內對不同的晶圓廠進行鑑定。根據流程和產品的不同，需要花費更長的時間。因此，很多容量增長實際上來自已經安裝流程的容量增長。我們得到了一些安裝在外部和內部的進程。而大多數其他 - 我們的大部分流程要么在外部運行，要么在內部運行。當他們在外面跑的時候，他們通常要么在一個鑄造廠跑，要么在另一個鑄造廠跑。

So there's really no process that runs in 3 or 4 different foundries. They may run in 3 or 4 different fabs of the same foundry. Like -- take TSMC. It could run in 3 different fabs of TSMC, but it doesn't run in TSMC as well as Global as well as UMC or something. So the capacity growth is largely coming from where the processes are already installed from a fab standpoint.

所以實際上沒有在 3 或 4 個不同的鑄造廠中運行的過程。他們可能在同一代工廠的 3 或 4 個不同的晶圓廠中運行。比如——以台積電為例。它可以在 TSMC 的 3 個不同晶圓廠中運行，但它不會在 TSMC 以及 Global 和 UMC 等中運行。因此，從晶圓廠的角度來看，產能增長主要來自已經安裝工藝的地方。

From an assembly test standpoint, yes, we're qualifying additional alternate assembly subcontractors which could give additional capacity. But there also, majority of the growth in assembly as well as test is coming from buying capital and installing in 3 of Microchip's large facilities: 2 in Thailand and 1 in the Philippines. They're basically doing a record amount of assembly and test every day, and capacity is rising every week, every month, every quarter for the rest of the year.

從組裝測試的角度來看，是的，我們正在鑑定額外的備用組裝分包商，這可以提供額外的能力。但在那裡，組裝和測試的大部分增長來自購買資本和安裝 Microchip 的 3 個大型設施：2 個在泰國，1 個在菲律賓。他們基本上每天都在進行創紀錄數量的組裝和測試，並且在今年餘下的時間裡，每週、每個月、每個季度的產能都在增加。

I guess my question is...

我想我的問題是...

So there was a second comment there from Harlan talking about or kind of implying that June quarter is fully booked, and that is not the case. June quarter isn't fully booked. The March quarter isn't fully booked. It can be fully booked on certain products, and maybe Ganesh can expand on that a little bit.

因此，Harlan 在那裡發表了第二條評論，談到或暗示 6 月季度已經訂滿，但事實並非如此。六月季度還沒有訂滿。三月季度沒有完全預訂。它可以在某些產品上完全預訂，也許 Ganesh 可以對此進行一些擴展。

Yes. I mean even for this quarter, we have strong backlog, but we have some terms yet to take, and there are terms to take for the June quarter. As Eric mentioned, there are certain product lines which can be much closer to being booked up. And that's typically -- it is starting at a much higher backlog than would -- a normal quarter would be. Now there is still work to be done, and there's capacity coming online, which will help with some of the growth, both that's helping this quarter as you can see versus December and some more into June.

是的。我的意思是，即使在本季度，我們也有大量積壓，但我們還有一些條款需要接受，而 6 月季度也有一些條款需要接受。正如埃里克所提到的，某些產品線可能很快就會被預訂一空。這通常是 - 它開始時的積壓比正常季度要高得多。現在仍有工作要做，並且有產能上線，這將有助於部分增長，這兩者都有助於本季度，正如您所看到的與 12 月相比，以及更多進入 6 月的情況。

Okay. So you answered my -- what was going to be my third question or what was my third question in that, which is irrespective of how the demand plays out, if June quarter backlog ends up suggesting a higher June quarter, you guys would have the capabilities in place, foundry or internal, to drive higher revenue levels sequentially in the June quarter?

好的。所以你回答了我——我的第三個問題是什麼，或者我的第三個問題是什麼，這與需求如何發揮無關，如果 6 月季度積壓最終表明 6 月季度更高，你們會有代工或內部能力是否到位，以在 6 月季度連續推動更高的收入水平？

Absolutely, yes.

絕對沒錯。

We'll take the next question at this time. It comes from Ambrish Srivastava.

我們現在開始下一個問題。它來自 Ambrish Srivastava。

One in near term and then I had a longer term, Steve, and really just wanted to make sure I understood that part. On the near term, the preferred supplier program, you started just this morning. But does the guide for March, does it include the change in cancellation from 45 to 90? Is that part of -- has that been implemented long enough to reflect in the March guide?

一個是短期的，然後是一個長期的，史蒂夫，我真的只是想確保我理解那部分。在短期內，首選供應商計劃，您今天早上才開始。但是 3 月份的指南是否包括取消從 45 到 90 的變化？這一部分是否實施了足夠長的時間以反映在 3 月的指南中？

So that was told to the customers in early December. Maybe it was the middle of December, around maybe 8th to 10th of December, and we gave them then the following 3 weeks or so to make any changes to the backlog they wanted to make. And on January 1, the backlog will go hard for the 90 days. So -- and there were very few changes made, and there were just meaningless, very small changes. So as of January 1 then, whatever was on our books for the March quarter became firm, so no changes could be made. And that backlog position for the March quarter was very strong, strongest we have ever seen in our careers.

所以這是在 12 月初告訴客戶的。也許是在 12 月中旬，大約在 12 月 8 日到 10 日，然後我們給了他們接下來的 3 週左右的時間來對他們想要的積壓工作進行任何更改。而在 1 月 1 日，積壓工作將持續 90 天。所以 - 幾乎沒有做出任何改變，只有毫無意義的、非常小的改變。因此，從 1 月 1 日起，我們 3 月季度賬簿上的任何內容都變得確定，因此無法進行任何更改。 3 月份季度的積壓情況非常強勁，是我們職業生涯中見過的最強勢。

Now as Ganesh answered earlier and Eric answered, that doesn't mean the March quarter was fully booked because you always have products where there's product available and customers and distributors can continue to come and buy those products where the lead time is still fairly short and shippable within the quarter. But a very large number of products were also completely booked and nothing available for March. On some products, even nothing available for June. So the impact of that 90 days was effective on January 1. And then as you go -- as you finish the month of January, then the backlog is now hard for February, March, April. By the end of February, the backlog will be hard for March, April and May. So that was a 90-day program.

現在，正如 Ganesh 和 Eric 之前回答的那樣，這並不意味著 3 月季度已經被預訂滿，因為您總是有有貨的產品，客戶和分銷商可以繼續前來購買那些交貨時間仍然很短的產品，並且可在季度內發貨。但大量產品也被完全預訂，三月份無貨。在某些產品上，甚至沒有 6 月份的貨品。因此，這 90 天的影響在 1 月 1 日生效。然後隨著你的進行——當你完成 1 月份時，現在 2 月、3 月、4 月的積壓工作就很難了。到2月底，3月、4月、5月的積壓就很難了。所以這是一個為期 90 天的計劃。

The PSP program is an entirely new program. The 90-day program was applicable to all customers worldwide, direct or distribution. The PSP program is a customer's option. It's not -- we can't force them to give us 1 year of backlog. So that was an option given to the customer that they can have an ability to get preferred supply support if they would give us 12 months of noncancelable backlog, which helps us in bringing capacity online and buy capital and hire people with confidence and it gives them preferential capacity. So there is something in it for both.

PSP 程序是一個全新的程序。為期 90 天的計劃適用於全球所有直接或經銷客戶。 PSP 程序是客戶的選擇。不是——我們不能強迫他們給我們 1 年的積壓。因此，這是給客戶的一個選項，如果他們給我們 12 個月的不可取消的積壓訂單，他們就有能力獲得首選的供應支持，這有助於我們使產能上線，購買資本並充滿信心地僱用人員，這給了他們優惠容量。所以兩者都有一些東西。

Got it. Got it. So...

知道了。知道了。所以...

I just want to make sure this is clear. I want to make sure this is clear that, that has 0 impact on the March quarter.

我只是想確保這是清楚的。我想確保這一點很清楚，這對三月季度的影響為零。

Or the June quarter for that matter.

或就此而言的 6 月季度。

Yes. The (inaudible)

是的。 （聽不清）

Yes. No, I understand. I just want to make sure...

是的。不，我明白。我只是想確定...

The PSP program support starts from July. Now the orders, they can place it now for 12 months. But if they come up with a whole bunch of new orders for March, April, May, June, they can't get the supply ripped off from other people who have placed a backlog before. So PSP capacity support does not begin until July.

PSP 程序支持從 7 月開始。現在下訂單，他們現在可以下達 12 個月。但是，如果他們在 3 月、4 月、5 月、6 月拿出一大堆新訂單，他們就無法從之前積壓的其他人那裡搶走供應。所以 PSP 容量支持要到 7 月才會開始。

Got it. I wasn't confused about PSP. I just wanted to make sure that the March quarter is -- it sounds like you were able to pull together a lot of internal and external to guide to what you did, and it also has some solidity, for lack of a better word, because of the 90-day that you started in December. That's what I wanted to understand because there's a concern about double booking, that sounds like the way you have framed it and the way you're running the business at this point. It seems like you have quite a lot of visibility on that.

知道了。我對PSP並不感到困惑。我只是想確保 3 月這個季度是——聽起來你能夠將很多內部和外部的東西聚集在一起來指導你所做的事情，而且它也有一定的可靠性，因為沒有更好的詞了，因為您從 12 月開始的 90 天。這就是我想了解的，因為人們擔心重複預訂，這聽起來像是您構建它的方式以及您此時經營業務的方式。看來您對此有很多了解。

My longer-term question, Steve, and thanks for addressing that. Your business model is transforming and you've been talking about M&A being less of a priority given where the valuations are and focus on organic. So the question -- and you addressed it by saying the buyback, even though not directly, you have been bringing down dilution. What was the point you made on dividend? I missed that. What's the formula that you have in place for dividend growth?

我的長期問題，史蒂夫，感謝您解決這個問題。你的商業模式正在轉變，你一直在談論併購不再是優先事項，因為估值和關注有機。所以這個問題——你通過說回購來解決這個問題，即使不是直接的，你也一直在降低稀釋度。你對股息的看法是什麼？我錯過了。您為股息增長制定的公式是什麼？

We don't really have a formula in place. We just -- Board will meet every quarter and decide the dividend for every quarter. In the current quarter, we grew the dividend by 5.8%. And you could expect that Board will grow the dividend every quarter, and that's really our commitment. We -- I told in the last couple of quarters that we will build a glide path towards higher dividend, and this is a glide path towards a higher dividend. So if you accumulate the increase in dividend for 4, 5, 6 quarters, then by middle of 2022, you already would have a significantly higher dividend after seeing 6 increases at the time we just did. That's really what we're trying to do to get to higher dividends. And by that time, the leverage would have come down and such that higher dividend will really be supportable at that point in time from the cash flow and still have enough cash available to keep bringing the debt down further.

我們真的沒有合適的公式。我們只是 - 董事會將每個季度開會並決定每個季度的股息。本季度，我們的股息增長了 5.8%。你可以期望董事會每個季度都會增加股息，這確實是我們的承諾。我們——我在過去幾個季度告訴我們，我們將建立一條通向更高股息的滑行路徑，這是一條通向更高股息的滑行路徑。因此，如果你累積 4、5、6 個季度的股息增長，那麼到 2022 年年中，在我們剛剛看到 6 次增長之後，你已經有了明顯更高的股息。這確實是我們為獲得更高的股息而努力做的事情。到那個時候，槓桿率會下降，這樣一來，更高的股息在那個時間點確實可以從現金流中得到支持，並且仍然有足夠的可用現金來進一步降低債務。

We'll take the next question. It comes from Chris Danely from Citi.

我們將回答下一個問題。它來自花旗銀行的 Chris Danely。

I guess just a little bit of color on the capacity constraints and shortages. So Steve, you talked about it being in the automotive, industrial and consumer sectors or end markets. Most of your competitors are just saying automotive. Would you expect this to spread to those other end markets for your competitors and other folks in semis? And then what -- when do you remember these shortages being this bad? Do we have to go back to like 2010 or 2000?

我想在容量限制和短缺方面只有一點點色彩。所以史蒂夫，你談到它在汽車、工業和消費領域或終端市場。您的大多數競爭對手只是在說汽車。您是否希望這會傳播到您的競爭對手和半決賽中其他人的其他終端市場？然後 - 你什麼時候記得這些短缺如此嚴重？我們必須回到 2010 年或 2000 年嗎？

I do not remember shortages being this bad ever. So this is just like a -- this is a Six Sigma event in terms of shortages, call it, a Black Swan event, although that's more meant for negative. We -- I don't really know what other competitors are seeing what, but our capacity for automotive products and industrial products and consumer products is really common. It runs out of same fabs, the same processes. Sometimes they are the same parts that we can ship into an automotive or ship into an industrial. So the capacity constraints would really be shared by all markets.

我不記得短缺曾經如此嚴重。所以這就像——就短缺而言，這是一個六西格碼事件，稱之為黑天鵝事件，儘管這更意味著消極。我們——我真的不知道其他競爭對手在看什麼，但我們在汽車產品、工業產品和消費品方面的能力確實很普遍。它用完了相同的工廠，相同的流程。有時它們是我們可以運送到汽車或運送到工業中的相同零件。因此，容量限制實際上將由所有市場共享。

Now the largest increase in demand has been in automotive where in the June quarter, automotive demand went to 20% of normal because all the factories shut down. And as that demand has gone back to 95% of normal or 100% of normal, that's a 5x increase in auto demand. So they are seeing sort of the worst shortages because they didn't place their orders. They didn't really guide towards having this strong V-shape recovery. So they're [partly] a little worse than that, but the capacity is common.

現在需求增長最大的是汽車，在 6 月這個季度，由於所有工廠都關閉，汽車需求達到正常水平的 20%。隨著需求恢復到正常水平的 95% 或 100%，汽車需求增長了 5 倍。所以他們看到了某種最嚴重的短缺，因為他們沒有下訂單。他們並沒有真正指導實現這種強勁的 V 型複蘇。所以他們 [部分] 比那差一點，但容量是常見的。

There's also a fact that in automotive, a $1 part can prevent a $40,000 car from shipping. In industrial, a $1 part could just prevent a [1999] power drill from that shipping. So the hard factor is quite different. So therefore, the noise from automotive, the escalations of the management team and the pressure and all that is really at a different level.

還有一個事實是，在汽車行業，一個 1 美元的零件可以阻止價值 40,000 美元的汽車的運輸。在工業領域，一個 1 美元的零件可能會阻止 [1999] 電鑽的運輸。所以硬因素是完全不同的。因此，來自汽車的噪音、管理團隊的升級和壓力以及所有這些都處於不同的水平。

We'll take the next question. It comes from Harsh Kumar.

我們將回答下一個問題。它來自 Harsh Kumar。

First of all, congratulations on the [tremendous] (inaudible) what you're seeing. Steve, I have 2, and I'm just going to lump them all into one. I wanted to go back to what Harlan was talking about earlier. As you get over your supply issues, let's say, whether it's June or July, am I incorrect in thinking based on your -- kind of what you mentioned in the press release as having a very strong year, that as you're able to supply, should you not expect a second half that is better or stronger? Or how can you think about linearity from here? And then for Eric, the question is on gross margin. If I'm not mistaken, you're at your target or very close to it. With no M&A, would [they not be a potentially] to think about that gross margin [model you have] as you get more and more efficient?

首先，祝賀您所看到的[巨大]（聽不清）。史蒂夫，我有 2 個，我要把它們合二為一。我想回到哈倫之前所說的話題。當你解決供應問題時，比方說，無論是 6 月還是 7 月，我基於你的想法是否不正確 - 你在新聞稿中提到的今年非常強勁，因為你能夠供應，你不應該期待下半年更好或更強嗎？或者你怎麼能從這裡考慮線性度？然後對於埃里克來說，問題在於毛利率。如果我沒記錯的話，你已經達到或非常接近目標。如果沒有併購，隨著你變得越來越有效率，[他們不是潛在的] 會考慮那個毛利率 [你擁有的模型] 嗎？

So I think taking the question of capacity, you mentioned somehow that we catch up by June, July. We don't expect to catch up on demand capacity balance for the balance of the calendar year 2021 and could possibly go into 2022. I mean we already know that the demand on lots and lots of products succeeds where we have no product available. If you place an order today, we were shipping you in September, October, and people are booking September, October, November fast. And with PSP program, we're going to get backlog all the way through next January, February. So I don't think the capacity issue is getting solved in the next 4, 5, 6 months. I think we're talking a 12-month at least to solve that, to really have the capacity to get in balance. I don't remember the other part of your question for Eric.

所以我認為關於容量問題，你提到我們在 6 月、7 月之前以某種方式趕上了。我們預計不會在 2021 年的剩餘時間內趕上需求容量平衡，並且可能會進入 2022 年。我的意思是我們已經知道，在我們沒有可用產品的情況下，對大量產品的需求會成功。如果您今天下訂單，我們將在 9 月、10 月為您發貨，而且人們正在快速預訂 9 月、10 月和 11 月。對於 PSP 計劃，我們將在明年 1 月、2 月一直積壓。所以我認為容量問題不會在接下來的 4、5、6 個月內得到解決。我認為我們至少要用 12 個月的時間來解決這個問題，才能真正有能力達到平衡。我不記得你問埃里克的其他部分。

Yes. I'll take the gross margin question. So we did actually update our long-term targets for gross and operating margin back in December. We took the gross margin target to 65% and the operating margin target to 42%. So we essentially achieved what was our prior target of 63% on the gross margin with these last quarter results and are guiding at the midpoint to about 63.5% this quarter.

是的。我會回答毛利率問題。因此，我們確實在 12 月份更新了毛利率和營業利潤率的長期目標。我們將毛利率目標提高到 65%，營業利潤率目標提高到 42%。因此，我們基本上實現了上個季度結果的毛利率 63% 的先前目標，並在本季度的中點指導至 63.5% 左右。

So gross margin has absolutely been a highlight over the last couple of years, and we're continuing to do all the right things to be efficient in our operations to drive improvements. And I'm not sure if you have more follow-up than that, but we definitely have outlined 5 or 6 things that are going to help us continue to make improvement on gross margin into the future and we can go through that separately if you'd like, Harsh.

因此，毛利率在過去幾年絕對是一個亮點，我們將繼續做所有正確的事情，以提高我們的運營效率，以推動改進。我不確定你是否有比這更多的後續行動，但我們肯定已經概述了 5 或 6 件事，這些事情將幫助我們在未來繼續提高毛利率，如果你喜歡，苛刻。

We'll take the next question. It comes from Janet Ramkissoon.

我們將回答下一個問題。它來自 Janet Ramkissoon。

Nice creativity, guys, with this new program. I was going to ask a question about the margins as well. It just seems to me that if you have a lot of visibility and you could procure supplies in a more timely and efficient manner and just plan better, generally speaking, as you go -- as you exit 2021, you should be in a position where you would hit those target margins -- you could hit those target margins a lot sooner. Am I correct in thinking that, Steve? Or is there something I'm missing?

好創意，伙計們，有了這個新程序。我也想問一個關於邊距的問題。在我看來，如果你有很大的知名度，你可以更及時、更有效地採購物資，並且只是更好地計劃，一般來說，隨著你的前進——當你離開 2021 年時，你應該處於這樣一個位置你會達到這些目標利潤率——你可以更快地達到這些目標利潤率。我這樣想對嗎，史蒂夫？或者有什麼我想念的嗎？

Well, the PSP program doesn't really do anything to the margin. [Anecdotally], it could make us more efficient if we get a large amount of backlog, lots and lots of customers take up on that offer and then we can build the product more efficiently. It could help a little bit on the cost side of the equation. But PSP program wasn't launched to drive margins. It was launched to get a firm customer backlog that we can be confident of growing our capacity and not have any double ordering or excess ordering in that backlog which could go away when we get there. That's why it was launched. It was not launched for margin, and I don't think it's going to have a lot of impact on margin.

好吧，PSP 程序並沒有真正做任何事情。 [有趣的是]，如果我們有大量的積壓訂單，它可以使我們更有效率，很多很多的客戶都接受了這個提議，然後我們就可以更有效地構建產品。它可以在等式的成本方面有所幫助。但推出 PSP 計劃並不是為了提高利潤率。它的推出是為了獲得一個堅定的客戶積壓，我們可以有信心增加我們的能力，並且在該積壓中沒有任何雙重訂購或過量訂購，當我們到達那裡時可能會消失。這就是它推出的原因。它不是為了保證金而推出的，我認為它不會對保證金產生太大影響。

Now as we are growing through this growth period, you have 3 or 4 things happening. Number one, all the underutilization is going away. Most of it is going away in March, but some could be going away in June. Number two, as the incremental capacity is being added, the incremental capacity usually is more productive because you're not adding the entire -- every machine. You're adding bottlenecks here and there. So when you add that capacity, the incremental margin thrown for every dollar of revenue tends to be better. And you could go back in the price cycles and calculate incremental margin to get some idea.

現在，當我們在這個增長期中成長時，您會發生 3 到 4 件事。第一，所有未充分利用的情況都將消失。其中大部分將在 3 月消失，但有些可能會在 6 月消失。第二，隨著增量容量的增加，增量容量通常會更有效率，因為你沒有添加整個 - 每台機器。您在這里和那裡添加了瓶頸。因此，當您增加該容量時，每一美元收入所帶來的增量利潤往往會更好。你可以回到價格週期併計算增量保證金以獲得一些想法。

The third being we are bringing some products, both in fab and assembly and test, from outside to inside and those moves are accretive. There could be something else. The impact of price increase, I think, is going to be relatively benign because we largely launched that to offset the cost increases, but you can't always increase the price on a product where you have seen the cost increase. You got to look at the product, whether there's a competitive element there or it's a proprietary product. So the price increase and cost increase don't completely match product-by-product. But overall, we might get some benefit certainly in revenue, probably not in margin.

第三個是我們將一些產品，包括晶圓廠、組裝和測試，從外面帶到裡面，這些舉措是增值的。可能還有別的東西。我認為，價格上漲的影響將相對良性，因為我們推出它主要是為了抵消成本上漲，但你不能總是提高成本上漲的產品的價格。您必須查看產品，看是否存在競爭元素，或者它是否是專有產品。所以價格上漲和成本上漲並不完全匹配產品。但總的來說，我們肯定會在收入方面獲得一些好處，而不是在利潤方面。

That's very helpful. Great quarter.

這很有幫助。偉大的季度。

We'll take the next question at this time. It comes from Denis Pyatchanin.

我們現在開始下一個問題。它來自 Denis Pyatchanin。

I'm here to ask a question on behalf of Raji Gill. Is there any chance you could provide us with some more color on the various kind of end market gross margins? Kind of how did those move throughout the last quarter? If you maybe can break it out by your reporting segments?

我是來代表 Raji Gill 提問的。您是否有機會為我們提供有關各種終端市場毛利率的更多信息？這些在上個季度是如何移動的？您是否可以按您的報告部分細分？

We don't break out gross margin either by end market or by product line. So we report at a company level, and that's all we have.

我們不會按終端市場或產品線細分毛利率。所以我們在公司層面進行報告，這就是我們所擁有的。

I see. And if you -- as a follow-up, how do you expect kind of the recent investments into the internal capacity to impact your margins over the next 3 quarters? Would you say that there's going to be a noticeable impact of the internal capacity coming online? And has that been factored into your guidance? Or do you expect that to maybe hit towards the kind of the end of the calendar year?

我懂了。如果你 - 作為後續行動，你如何看待最近對內部能力的投資會影響你在未來 3 個季度的利潤率？您會說內部容量上線會產生顯著影響嗎？你的指南中是否考慮到了這一點？還是您認為這可能會在日曆年末發生？

Well, I think -- go ahead, go ahead.

好吧，我想——繼續，繼續。

No, I was going to say I think these come on slowly. They're not going to make big quarter-to-quarter changes in what they're at. Directionally, each of them is a small step in the road map that we have said we want to improve our gross margins to the long-term target. But I would not be looking for quarter-by-quarter. These are making big changes in the gross margin of the company overall.

不，我想說我認為這些進展緩慢。他們不會在每個季度對他們的工作進行大的改變。從方向上講，它們中的每一個都是我們所說的我們希望將毛利率提高到長期目標的路線圖中的一小步。但我不會按季度尋找。這些正在使公司整體的毛利率發生較大變化。

We'll take the next question. It comes from Christopher Rolland from Susquehanna.

我們將回答下一個問題。它來自 Susquehanna 的 Christopher Rolland。

Just 2 quick ones for me, and then I'll get off. I guess, Steve, first of all, PSP, ultimately, what percent of revenue do you expect to go through the PSP program versus other? And then secondly, as you bring some internal capacity home even on the wafer side, does this bring up a conversation about 300-millimeter fab or not? Is that -- at what point does that become of interest to Microchip?

對我來說只有 2 個快速的，然後我會下車。我想，史蒂夫，首先，PSP，最終，您希望通過 PSP 計劃獲得的收入與其他收入相比有多少百分比？其次，當您甚至在晶圓方面也將一些內部產能帶回家時，這是否會引發有關 300 毫米晶圓廠的對話？那是——什麼時候 Microchip 對此感興趣？

So I think the first part of your question, what portion of the revenue we expect to go through PSP, we really have no idea. It's never been done before. It's being launched by taking on questions from many large customers saying, "What can you do to make sure I get capacity support in the second half? I'm delinquent now. You're not giving me everything I need. So how can I ensure that I get that in future?"

所以我認為你問題的第一部分，我們希望通過 PSP 獲得多少收入，我們真的不知道。這是以前從未做過的。它是通過回答許多大客戶的問題推出的，他們說：“你能做些什麼來確保我在下半年獲得容量支持？我現在拖欠了。你沒有給我我需要的一切。那麼我怎麼能確保我將來得到它？”

And so we came up with this program and saying, "If you commit that your orders for the next 12 months are noncancelable, non-reschedulable, then we will go, with confidence, build the product and give you preferential support." So we do not know what the uptake would be, and I'm just purely guessing. We just launched it this morning, and I've gotten 3 or 4 inputs since then, one from a major distributor and [2] from customers, one customer I talked to personally. So I think this is hot off the press. So that's that.

所以我們提出了這個計劃並說，“如果你承諾你未來 12 個月的訂單不可取消，不可重新安排，那麼我們將滿懷信心地開發產品並為你提供優惠支持。”所以我們不知道吸收會是什麼，我只是純粹猜測。我們今天早上剛剛推出它，從那時起我收到了 3 或 4 個意見，一個來自一家主要分銷商，[2] 個來自客戶，其中一個客戶是我親自交談過的。所以我認為這是新聞界的熱門話題。就是這樣。

The other part of your question was the 300-millimeter. There is no plan to do any 300-millimeter inside. We continue to have 2 large 8-inch fabs and 1 large 6-inch fab, a number of small 4-inch sort of fabs that we are transitioning products away from those 4 inches to our 6-inch and 8-inch fabs. The 12-inch of peak capacity continues to be at our foundries for any foreseeable future.

您問題的另一部分是 300 毫米。沒有計劃在裡面做任何 300 毫米。我們繼續擁有 2 家大型 8 英寸晶圓廠和 1 家大型 6 英寸晶圓廠，以及一些小型 4 英寸晶圓廠，我們正在將產品從那些 4 英寸轉移到我們的 6 英寸和 8 英寸晶圓廠。在任何可預見的未來，12 英寸的峰值容量將繼續存在於我們的代工廠。

There are no further questions at that time, and that ends our question-and-answer session for today. I'd now like to turn the conference back over to Mr. Sanghi. Please go ahead.

那時沒有其他問題了，我們今天的問答環節到此結束。我現在想把會議轉回 Sanghi 先生。請繼續。

Yes. I want to thank everyone for attending the call. Also, I want to say that this is my last call as CEO. As many of you know, Ganesh Moorthy would be the CEO starting March 1. I would still attend the call. I will stay engaged with the investors, but Ganesh will take the lead role. And if some of you are expecting to find a softer version of Steve, you may not get that. Internally, he's feistier than I am, but we'll see externally how Ganesh acts. So thank you all. Bye-bye.

是的。我要感謝大家參加電話會議。另外，我想說這是我作為首席執行官的最後一次通話。正如你們許多人所知，Ganesh Moorthy 將從 3 月 1 日開始擔任首席執行官。我仍會參加電話會議。我將繼續與投資者接觸，但 Ganesh 將發揮主導作用。如果你們中的一些人希望找到一個更柔和的史蒂夫版本，你可能不會那樣做。在內心深處，他比我更活躍，但我們會從外部看到 Ganesh 的行為。所以謝謝大家。再見。

This concludes today's call. Thank you for your participation. You may now disconnect.

今天的電話會議到此結束。感謝您的參與。您現在可以斷開連接。