美光科技 (MU) 2020 Q1 法說會逐字稿

Thank you, ladies and gentlemen, and thank you for standing by. Welcome to Micron Technology's First Quarter 2020 Financial Conference Call. (Operator Instructions) Please be advised that today's conference is being recorded. (Operator Instructions)

女士們、先生們，謝謝大家，也謝謝你們的耐心等待。歡迎參加美光科技2020年第一季財務電話會議。（操作人員指示）請注意，今天的會議正在錄音。（操作說明）

I would now like to hand the conference over to your host, Head of Investor Relations, Farhan Ahmad. Sir, please go ahead.

現在我謹將會議交給主持人、投資人關係主管法爾漢‧艾哈邁德先生。先生，請繼續。

Thank you, and welcome to Micron Technology's first fiscal quarter 2020 financial conference call. On the call with me today are Sanjay Mehrotra, President and CEO; and Dave Zinsner, Chief Financial Officer.

謝謝，歡迎參加美光科技2020財年第一季財務電話會議。今天和我一起通話的是總裁兼執行長 Sanjay Mehrotra 和財務長 Dave Zinsner。

Today's call will be approximately 60 minutes in length. This call, including the audio and slides, is also being webcast from our Investor Relations website at investors.micron.com. In addition, our website contains the earnings press release and the prepared remarks filed a short while ago.

今天的電話會議大約需要60分鐘。本次電話會議（包括音訊和幻燈片）也將在我們的投資者關係網站 investors.micron.com 上進行網路直播。此外，我們的網站上還包含不久前發布的獲利新聞稿和準備好的發言稿。

Today's discussion of financial results will be presented on a non-GAAP financial basis unless otherwise specified. A reconciliation of GAAP to non-GAAP financial measures can be found on our website, along with a convertible debt and capped call dilution table. As a reminder, a webcast replay will be available on our website later today. We encourage you to monitor our website at micron.com throughout the quarter for the most current information on the company, including information on the various financial conferences that we will be attending. You can follow us on Twitter at MicronTech.

除非另有說明，今天對財務業績的討論將以非GAAP財務報表為基礎。您可以在我們的網站上找到 GAAP 與非 GAAP 財務指標的調整表，以及可轉換債券和上限選擇權稀釋表。再次提醒，網路直播回放將於今天稍晚在我們的網站上提供。我們鼓勵您在本季度密切關注我們的網站 micron.com，以獲取有關公司的最新信息，包括我們將參加的各種金融會議的信息。您可以在Twitter上關注我們：MicronTech。

As a reminder, the matters we will be discussing today include forward-looking statements. These forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially from statements made today. We refer you to the documents we filed with the SEC, specifically our most recent Form 10-K and 10-Q for a discussion of risks that may affect our future results. Although we believe that the expectations reflected in forward-looking statements are reasonable, we cannot guarantee future results, level of activity, performance or achievement. We are under no duty to update any of the forward-looking statements after today's date to conform these statements to actual results.

再次提醒大家，我們今天將要討論的事項包含前瞻性陳述。這些前瞻性陳述存在風險和不確定性，可能導致實際結果與今天所作的陳述有重大差異。有關可能影響我們未來業績的風險的討論，請參閱我們向美國證券交易委員會提交的文件，特別是我們最新的 10-K 表格和 10-Q 表格。儘管我們認為前瞻性聲明中反映的預期是合理的，但我們無法保證未來的結果、活動水準、績效或成就。我們沒有義務在今天之後更新任何前瞻性聲明，以使這些聲明與實際結果相符。

I'll now turn the call over to Sanjay.

現在我將把電話交給桑傑。

Thank you, Farhan. Good afternoon. Micron is off to a solid start in our fiscal 2020. Despite a challenging industry environment, we delivered good profitability, maintained positive free cash flow and strengthened our product portfolio. Industry supply-demand balance continues to improve in both DRAM and NAND. Recent trends in our business give us optimism that our fiscal second quarter will mark the bottom for our financial performance, which we expect to start improving in our fiscal third quarter with continued recovery in the second half of calendar 2020.

謝謝你，法爾漢。午安.美光科技在2020財年開局穩健。儘管行業環境充滿挑戰，但我們實現了良好的盈利能力，保持了正的自由現金流，並加強了我們的產品組合。DRAM 和 NAND 產業的供需平衡持續改善。我們業務的近期趨勢讓我們樂觀地認為，第二財季將標誌著我們財務業績的最低點，我們預計第三財季將開始改善，並在 2020 年下半年持續復甦。

Our strategy to increase high-value solutions, enhance customer engagement and improve our cost structure is producing results. We have materially improved our competitive position, structurally strengthened our profitability and are poised to drive long-term shareholder value as industry conditions improve.

我們透過增加高價值解決方案、增強客戶參與度和改善成本結構來推進策略，目前已取得成效。我們已顯著提升了自身的競爭地位，從根本上增強了盈利能力，並有望隨著行業狀況的改善，為股東創造長期價值。

High-value solutions in fiscal 2019 accounted for approximately 50% of NAND bits. We expect this figure to grow to over 2/3 of our NAND bits sold for fiscal 2020, and we remain on track to drive 80% of our NAND bits into high-value solutions in fiscal 2021. This mix improvement is an important tailwind for us as it improves our profitability and reduces the volatility in our margins.

2019 財年，高價值解決方案約佔 NAND 快閃記憶體位元數的 50%。我們預計這一數字將增長到 2020 財年我們售出的 NAND 閃存位的 2/3 以上，並且我們仍然預計在 2021 財年將 80% 的 NAND 閃存位用於高價值解決方案。這種產品組合的改善對我們來說是一個重要的利好因素，因為它提高了我們的獲利能力，並降低了利潤率的波動性。

At our Micron Insight event in October, we articulated a vision for Micron's transformation through greater vertical integration and differentiated products for the new data economy. I will highlight 2 of these and encourage you to view Sumit Sadana's Insight Keynote available on our website for more detail.

在 10 月的 Micron Insight 活動中，我們闡述了 Micron 透過加強垂直整合和為新的數據經濟提供差異化產品來實現轉型的願景。我將重點介紹其中的兩點，並鼓勵您訪問我們的網站觀看 Sumit Sadana 的 Insight 主題演講，以了解更多詳情。

First, we announced the acquisition of a small company called FWDNXT. The FWDNXT Deep Learning Accelerator hardware and software technology, when combined with advanced Micron memory, makes it possible to deploy neural network models from any framework into edge devices for inference. FWDNXT's unique technology is an important capability in our portfolio that will help us learn and better address customers' needs in the evolving AI ecosystem.

首先，我們宣布收購了一家名為 FWDNXT 的小公司。FWDNXT 深度學習加速器硬體和軟體技術與先進的 Micron 記憶體相結合，可以將任何框架的神經網路模型部署到邊緣設備中進行推理。FWDNXT 的獨特技術是我們產品組合中的重要能力，它將幫助我們了解並更好地滿足不斷發展的 AI 生態系統中客戶的需求。

At Insight, we also launched our first 3D XPoint product, the X100, which is the world's fastest storage device. The Micron X100 SSD is dramatically faster than any other SSD, including those built with NAND or 3D XPoint technology, and we are proud that it was showcased at Microsoft's Ignite conference by their Azure team.

在 Insight，我們也推出了首款 3D XPoint 產品 X100，它是世界上速度最快的儲存裝置。Micron X100 SSD 的速度比其他 SSD 快得多，包括採用 NAND 或 3D XPoint 技術製造的 SSD，我們很自豪它被微軟的 Azure 團隊在微軟的 Ignite 大會上展示了。

In October, we closed our acquisition of Intel's stake in the IMFT joint venture. We plan on relocating equipment and certain manufacturing employees to other Micron sites as we rightsize the Lehi Fab. Redeploying equipment will also help us optimize Micron's front-end equipment CapEx. As with any innovative technology, it will take time to scale up our 3D XPoint product portfolio, ramp revenues and achieve healthy margins, and we are excited about the long-term potential of 3D XPoint for both memory and storage applications.

10 月份，我們完成了英特爾在 IMFT 合資企業中所持股份的收購。隨著我們對萊希工廠進行規模調整，我們計劃將設備和一些製造員工轉移到美光的其他工廠。重新部署設備也有助於我們優化美光的前端設備資本支出。與任何創新技術一樣，擴大我們的 3D XPoint 產品組合規模、提高收入和實現健康的利潤率都需要時間，我們對 3D XPoint 在記憶體和儲存應用方面的長期潛力感到興奮。

As the only company in the world with a portfolio of DRAM, NAND and 3D XPoint technologies, we are in a unique position to develop differentiated products for our customers.

身為全球唯一擁有 DRAM、NAND 和 3D XPoint 技術組合的公司，我們處於獨特的地位，能夠為客戶開發差異化產品。

I will now turn to technology and manufacturing operations.

接下來我將介紹技術和製造營運方面的內容。

In DRAM, our industry-leading 1Z LP4 DRAM-based uMCP had the fastest revenue ramp of any product in the history of our mobile business. Our production mix on 1Z will increase throughout 2020, and DRAM cost reductions will be skewed toward the second half of fiscal 2020. Our previously announced cleanroom expansion in Taiwan is on track, and we expect output in calendar 2021. This cleanroom expansion is EUV-capable. While we continue to evaluate EUV technology for deployment in DRAM production, our current assessment shows superior economics through 1-gamma node, utilizing advanced immersion technology along with Micron's proprietary multi-patterning technologies. We are encouraged by recent industry progress on EUV productivity and will be prepared to deploy EUV when it becomes cost-effective to do so.

在 DRAM 領域，我們業界領先的基於 1Z LP4 DRAM 的 uMCP 實現了行動業務史上所有產品中最快的收入成長速度。2020 年，我們在 1Z 的生產比例將會增加，DRAM 成本的降低將主要集中在 2020 財年的下半年。我們先前宣布的台灣無塵室擴建計畫進展順利，預計 2021 年投產。此無塵室擴建工程具備極紫外光刻能力。雖然我們仍在評估 EUV 技術在 DRAM 生產中的應用，但我們目前的評估表明，透過 1-gamma 節點，利用先進的浸沒式技術以及美光專有的多重曝光技術，可以獲得卓越的經濟效益。我們對近期產業在 EUV 生產力方面的進展感到鼓舞，並將在 EUV 具有成本效益時做好部署的準備。

In NAND, we are continuing to make progress on our replacement gate transition and expect to begin production on our 128-layer, first-generation RG node in the second half of fiscal 2020. As a reminder, this node will be deployed for the limited set of products, and we expect minimal NAND cost reduction in fiscal 2020. It will be followed by an introduction of a higher-layer-count, second-generation RG node in fiscal 2021 targeted for a broader implementation, which will begin to provide more robust cost reduction as it ramps. This second-generation RG node will leverage our NAND technology leadership in CMOS under the array as well as QLC.

在 NAND 領域，我們正繼續推進替換閘極過渡工作，預計將於 2020 財年下半年開始生產我們的 128 層第一代 RG 節點。提醒一下，該節點將部署在有限的產品範圍內，我們預計 2020 財年 NAND 成本的降低幅度很小。隨後，將在 2021 財年推出層數更高的第二代 RG 節點，目標是更廣泛地實施，隨著部署規模的擴大，將開始提供更強勁的成本降低。第二代 RG 節點將利用我們在 CMOS 陣列下的 NAND 技術領先優勢以及 QLC 技術。

Now turning to highlights by products and markets.

接下來，我們將按產品和市場介紹亮點。

In SSDs, demand from data center customers was strong in fiscal first quarter. Attach rates and capacities for client and consumer SSDs have continued to increase across our customers. There are supply shortages for SSDs across the industry, and pricing trends are improving. We are making strong progress on our transition to NVMe. As of fiscal second quarter, we will have NVMe SSDs for all market segments, which positions us to gain share in fiscal 2020. NVMe client SSD bit shipments represented almost 3/4 of our client SSD bits in fiscal Q1 versus virtually none a year ago. In the data center market, sales of our previously announced high-performance NVMe SSD nearly tripled quarter-over-quarter, and we announced a 96-layer mainstream data center NVMe SSD.

在第一財季，固態硬碟方面，資料中心客戶的需求強勁。我們客戶的客戶端和消費級 SSD 的安裝率和容量持續成長。整個產業都面臨固態硬碟供應短缺的問題，但價格趨勢正在改善。我們在向 NVMe 過渡方面取得了顯著進展。從第二財季開始，我們將為所有市場領域提供 NVMe SSD，這將使我們在 2020 財年獲得市場份額。在第一財季，NVMe 用戶端 SSD 出貨量占我們客戶端 SSD 出貨量的近 3/4，而一年前幾乎沒有。在資料中心市場，我們先前發布的高效能 NVMe SSD 的銷量較上月成長近三倍，我們發布了一款 96 層主流資料中心 NVMe SSD。

While growing our presence in NVMe, we continue to maximize our value propositions for the SATA market by ramping 96-layer NAND products. We achieved qualifications with multiple OEMs on our 96-layer SATA data center SSD.

在不斷擴大我們在 NVMe 領域的影響力的同時，我們透過加大 96 層 NAND 產品的投入，持續提升我們在 SATA 市場的價值主張。我們的 96 層 SATA 資料中心 SSD 已獲得多家 OEM 廠商的認證。

Our QLC technology continues to gain traction. We have QLC SSDs in volume production for SATA SSDs in the data center and consumer markets as well as the NVMe SSDs for the consumer market. We became the first company to ship a 96-layer, second-generation QLC SATA consumer SSD.

我們的QLC技術持續獲得認可。我們有以資料中心和消費市場為導向的 SATA SSD 的 QLC SSD 進行大量生產，也有以消費市場為導向的 NVMe SSD 進行大量生產。我們成為首家推出 96 層第二代 QLC SATA 消費級固態硬碟的公司。

In mobile, fiscal first quarter MCP DRAM and NAND bits grew approximately 50% quarter-over-quarter, and our MCP market share increased approximately 50% year-over-year. In fiscal Q1, our leading-edge 1Z LP4 DRAM-based uMCP achieved qualification at multiple OEMs, driving the fastest mobile product revenue ramp I mentioned earlier. We are confident that 5G will be positive for both memory and storage content growth as well as smartphone unit sales and are encouraged to see the launch of affordable 5G phones with price points as low as $300 that feature a minimum of 6 gigabyte of DRAM. The 5G phones launched to date average 8 gigabyte of DRAM and 200 gigabyte of NAND, significantly higher than the average content in smartphones today. Our leadership on DRAM power efficiency continues to drive customer preference for our products, and we remain well positioned in this market. We have the lowest power and the highest bandwidth LP5 product that begins volume production this quarter, which we expect will become more important in 2021 as 5G adoption accelerates.

在行動領域，第一財季 MCP DRAM 和 NAND 位數較上季成長約 50%，我們的 MCP 市佔率年增約 50%。在第一財季，我們領先的基於 1Z LP4 DRAM 的 uMCP 獲得了多家 OEM 廠商的認證，推動了先前提到的行動產品收入成長最快的時期。我們相信 5G 將對內存和存儲容量的增長以及智慧型手機的銷量產生積極影響，並且我們很高興看到價格低至 300 美元、配備至少 6 GB DRAM 的平價 5G 手機的推出。迄今為止推出的 5G 手機平均配備 8 GB DRAM 和 200 GB NAND，遠高於目前智慧型手機的平均配置。我們在DRAM能源效率方面的領先地位持續推動客戶對我們產品的偏好，我們在這個市場中仍然保持著良好的地位。我們擁有功耗最低、頻寬最高的LP5產品，此產品將於本季開始量產，我們預計隨著5G普及加速，產品在2021年將變得更加重要。

In data center, strong server DRAM demand in the second half of calendar 2019 is creating an industry-wide shortage of high-quality, high-density modules, for which we are seeing incremental demand from our customers. New CPU architectures supporting higher-density chips and increased number of channels are driving strong DRAM content growth in servers. In fiscal Q1, we saw strong demand growth from enterprise and cloud customers.

在資料中心領域，2019 年下半年對伺服器 DRAM 的強勁需求造成了整個行業高品質、高密度模組的短缺，我們看到客戶對這些模組的需求不斷增長。支援更高密度晶片和更多通道的新型 CPU 架構正在推動伺服器中 DRAM 容量的強勁成長。在第一財季，我們看到了來自企業和雲端客戶的強勁需求成長。

In graphics, bit shipments remained stable, with GDDR6 PC graphics cards showing strong growth offset by seasonal weakness in gaming consoles. In fiscal Q1, we began shipments of our new 14-gigabit per second GDDR6 and are well positioned to benefit from the launch of next-generation gaming consoles in calendar 2020. The launch of these new gaming consoles will drive robust multiyear demand in graphics memory, and these consoles will deploy SSDs in place of hard drives for the first time. This continues a trend of SSDs replacing hard drives across more high-volume applications.

在圖形領域，顯示卡出貨量保持穩定，GDDR6 PC 顯示卡表現出強勁成長，但被遊戲主機季節性疲軟所抵消。在第一財季，我們開始出貨新的 14 千兆位元每秒 GDDR6 顯存，並已做好充分準備，從 2020 年下一代遊戲主機的推出中受益。這些新型遊戲主機的推出將推動圖形內存在未來幾年內保持強勁的需求，這些主機將首次採用固態硬碟 (SSD) 來取代機械硬碟。這延續了固態硬碟在高容量應用領域取代機械硬碟的趨勢。

In the PC market, bit shipments in the fiscal first quarter continued the growth trend from last quarter. Nevertheless, we are cautious on our near-term outlook for the PC segment due to reported CPU shortages, which seem likely to continue at least into early calendar 2020.

在個人電腦市場，第一財季的位元晶片出貨量延續了上一季的成長趨勢。儘管如此，由於有報導稱 CPU 短缺，而且這種情況似乎至少會持續到 2020 年初，因此我們對 PC 領域的近期前景持謹慎態度。

In automotive, despite sluggish worldwide auto sales, we saw quarter-over-quarter revenue growth driven by secular memory and storage content growth. Our leadership in low-power DRAM is also driving growth for us in this market. In the fiscal first quarter, we qualified and shipped the industry's first BGA NVMe SSD for automotive applications, which offers industry-leading performance and capacity in a small form factor and is well suited to service the storage needs of increasing autonomous features.

在汽車產業，儘管全球汽車銷售低迷，但受記憶體和儲存內容長期成長的推動，我們看到了季度環比收入成長。我們在低功耗DRAM領域的領先地位也推動了我們在該市場的成長。在第一財季，我們完成了業界首款面向汽車應用的 BGA NVMe SSD 的認證和出貨，該產品以小巧的外形尺寸提供了業界領先的性能和容量，非常適合滿足日益增長的自動駕駛功能的儲存需求。

Now turning to our market outlook. Our base-case assumption on which all our projections are based assumes that there are no perturbations to the demand environment due to macroeconomic conditions or trade-related developments.

現在來談談我們的市場展望。我們所有預測所依據的基本假設是，宏觀經濟狀況或貿易相關發展不會對需求環境造成乾擾。

In DRAM, there has been a strong recovery in the second half of calendar 2019, and our view of calendar 2019 industry bit demand growth has increased to approximately 20%. This stronger-than-expected demand has resulted in pockets of shortages for us. We continue to exercise price discipline and walk away from price requests that do not meet our objectives. While these actions may impact short-term revenue, improving our business mix will enhance our long-term profitability. We are encouraged by recent DRAM pricing trends and are optimistic about improving supply-demand balance throughout calendar 2020.

DRAM 在 2019 年下半年出現了強勁復甦，我們對 2019 年全年行業比特需求增長的預期已提高到約 20%。超出預期的需求導致我們部分地區出現缺貨情況。我們將繼續嚴格執行價格紀律，對於不符合我們目標的價格要求，我們將予以拒絕。雖然這些措施可能會影響短期收入，但改善我們的業務組合將提高我們的長期獲利能力。我們對近期DRAM價格走勢感到鼓舞，並對2020年全年供需平衡的改善持樂觀態度。

As we discussed on our last call, a portion of the strength in demand in the second half of calendar 2019 may be attributable to inventory builds in China, and we expect some of this customer inventory to normalize sometime in calendar 2020. As a result, we expect calendar 2020 industry DRAM bit demand growth to be in the mid-teens percent range year-over-year, which is somewhat lower than our prior outlook due to stronger demand in calendar 2019.

正如我們在上次電話會議中討論的那樣，2019 年下半年需求的強勁增長部分原因可能是中國庫存的增加，我們預計部分客戶庫存將在 2020 年某個時候恢復正常。因此，我們預計 2020 年 DRAM 位元需求年增率將達到 15% 左右，比我們先前的預期略低，因為 2019 年的需求更為強勁。

We expect industry bit supply growth for calendar 2020 to be somewhat less than the demand as industry bit supply growth decelerates due to industry CapEx reductions. We continue to target our long-term bit supply growth CAGR to be close to the industry's long-term bit demand growth CAGR of mid- to high teens. In calendar 2019, our bit supply growth will be less than the industry supply growth of mid-teens, and in 2020, our bit supply growth is expected to be slightly above industry bit supply growth.

我們預計，由於產業資本支出減少，產業鑽頭供應成長放緩，2020 年產業鑽頭供應成長將略低於需求。我們將繼續努力，使我們的長期鑽頭供應成長複合年增長率接近產業長期鑽頭需求成長複合年增長率（15%至10%）。2019 年，我們的比特供應成長將低於行業平均的 15% 左右；2020 年，我們的比特供應成長預計將略高於行業平均水平。

Turning to NAND. Our industry bit demand growth expectation is in the mid-40s percent range in calendar 2019 and high 20s to low 30s percent range in calendar 2020. We expect calendar 2020 industry bit supply to be lower than industry bit demand as a result of industry CapEx reductions, and consequently, we expect the industry environment to improve through calendar 2020. Micron's NAND bit supply growth in calendar 2019 is likely to be slightly below industry bit demand growth, and in calendar 2020, will be meaningfully below that of the industry. However, we expect our NAND bit shipments growth in calendar 2020 to be close to industry bit demand growth as we ship our inventory during the first generation of our RG transition. As we go through the transition to replacement gate, we expect our multi-year supply growth CAGR to be in line with the industry's demand CAGR of approximately 30%.

轉向NAND快閃記憶體。我們預計 2019 年產業需求成長將達到 40% 左右，2020 年將達到 20% 到 30% 左右。由於產業資本支出減少，我們預計 2020 年產業鑽頭供應量將低於產業鑽頭需求量，因此，我們預計 2020 年產業環境將有所改善。2019 年美光 NAND 快閃記憶體位供應成長可能略低於產業位需求成長，2020 年將顯著低於產業水準。然而，我們預計 2020 年日曆年內，隨著我們在第一代 RG 過渡期間交付庫存，我們的 NAND 位元出貨量成長將接近產業位需求成長。隨著我們逐步過渡到替換階段，我們預計未來幾年的供應成長複合年增長率將與產業需求成長複合年增長率（約 30%）保持一致。

Before I turn it over to Dave, I wanted to provide an update on our business with Huawei.

在把發言權交給戴夫之前，我想先報告我們與華為的業務合作進度。

As previously disclosed, we are continuing to ship some products to Huawei that are not subject to Export Administration Regulations and Entity List restrictions. We applied for, and recently received, all requested licenses that enable us to provide support for these products as well as qualify new products for Huawei's mobile and server businesses. Additionally, these licenses allow us to ship previously restricted products that we manufacture in the United States, which represent a very small portion of our sales. However, there are still some products outside of the mobile and server markets that we are unable to sell to Huawei.

正如先前披露的那樣，我們將繼續向華為運送一些不受出口管理條例和實體清單限制的產品。我們已經申請並最近獲得了所有要求的許可證，這使我們能夠為這些產品提供支持，並為華為的行動和伺服器業務的新產品進行認證。此外，這些許可證允許我們出口以前受限的、我們在美國生產的產品，這些產品在我們銷售額中所佔比例非常小。然而，在行動和伺服器市場之外，我們仍然有一些產品無法賣給華為。

Receiving the licenses is a positive development, and we are thankful to the U.S. administration for approving these licenses.

獲得這些許可證是一個積極的進展，我們感謝美國政府批准這些許可證。

Prior to receiving these licenses, Entity List restrictions severely limited our ability to qualify new products at Huawei. Although we are now able to qualify new products with Huawei's mobile and server businesses, it will take some time before the qualifications are completed and contribute to revenue. Consequently, we do not expect these licenses to have a material impact on our revenue in the next couple of quarters.

在獲得這些許可證之前，實體清單的限制嚴重限制了我們在華為進行新產品認證的能力。雖然我們現在能夠透過華為的行動和伺服器業務對新產品進行認證，但認證完成並產生收入還需要一段時間。因此，我們預計這些許可證在未來幾季內不會對我們的收入產生實質影響。

I'll now turn it over to Dave to provide our financial results and guidance.

現在我將把發言權交給戴夫，由他來介紹我們的財務表現和指導。

Thanks, Sanjay. Micron's FQ1 results were largely consistent with our expectations as market conditions continue to stabilize. During the quarter, DRAM price declines decelerated from recent quarters, and we saw pricing improvements in NAND. Total company revenues grew sequentially, and our total inventory declined in absolute terms. We generated positive free cash flow during the quarter, made progress on our share repurchase program and further strengthened our balance sheet.

謝謝你，桑傑。隨著市場狀況持續趨於穩定，美光科技第一季的業績基本上符合我們的預期。本季度，DRAM價格下跌速度較前幾季有所放緩，而NAND價格則有所改善。公司總收入環比成長，而總庫存絕對值下降。本季我們實現了正自由現金流，在股票回購計畫方面取得了進展，並進一步加強了資產負債表。

The results on today's call reflect our previously announced changes in NAND depreciable life to 7 years from 5 years and the change in reporting from our previous disclosures, which classified all MCP and SSD revenues as NAND revenue to a view now that disaggregates these revenues into DRAM and NAND. The following DRAM and NAND growth figures use restated historical revenues for an apples-to-apples comparison.

今天的電話會議結果反映了我們先前宣布的 NAND 折舊壽命從 5 年延長至 7 年，以及報告方式的改變，即從先前披露的所有 MCP 和 SSD 收入歸類為 NAND 收入，到現在將這些收入分解為 DRAM 和 NAND 收入。以下 DRAM 和 NAND 成長數據採用重述的歷史收入，以便進行公平的比較。

Total FQ1 revenue was approximately $5.1 billion. Revenue was up 6% sequentially and down 35% year-over-year. FQ1 DRAM revenue was $3.5 billion, representing 67% of total revenue. DRAM revenue increased 2% sequentially and declined 41% year-on-year. Bit shipments grew approximately 10% sequentially, and on a year-on-year basis, were up in the mid-20% range. ASP declined in the upper single-digit percent range sequentially. DRAM revenues included $435 million of revenues from MCPs and SSDs.

第一季總營收約51億美元。營收季增 6%，年減 35%。第一季DRAM營收為35億美元，佔總營收的67%。DRAM 營收季增 2%，年減 41%。比特出貨量較上季成長約 10%，較去年同期成長約 20% 左右。平均售價季減了接近兩位數百分比。DRAM 收入包括來自 MCP 和 SSD 的 4.35 億美元收入。

FQ1 NAND revenue was approximately $1.4 billion or 28% of total revenue. Revenue was up 18% sequentially and declined 14% year-on-year. Bit shipments grew in the mid-teen percent range sequentially and in the mid-30% range year-on-year, and ASPs increased in the low single digits sequentially.

第一財季 NAND 營收約 14 億美元，佔總營收的 28%。營收季增 18%，年減 14%。比特出貨量較上季成長15%左右，年增30%左右，平均售價較上季成長個位數。

Now turning to our revenue trends by business unit.

接下來我們來看看各業務部門的營收趨勢。

Revenue for the Compute and Networking business Unit was approximately $2 billion, an increase of 4% sequentially and down 45% year-over-year. The sequential increase was driven by higher volumes and moderating ASP declines.

計算和網路業務部門的營收約為 20 億美元，季增 4%，年減 45%。銷售成長和平均售價下降幅度放緩是推動銷售持續成長的主要因素。

Revenue for the Mobile Business Unit was $1.5 billion, up 4% sequentially and down 34% year-over-year. MCP revenues grew strongly during the quarter driven by approximately 50% sequential growth in DRAM and NAND bits.

行動業務部門的營收為 15 億美元，季增 4%，年減 34%。本季 MCP 營收強勁成長，主要得益於 DRAM 和 NAND 位數較上季成長約 50%。

Revenue for the Storage Business Unit in FQ1 was $968 million, an increase of 14% from FQ4 and down 15% year-over-year. Sequential revenue growth was driven by SSD volume growth and ASP increases.

儲存業務部門第一季的營收為 9.68 億美元，比第四季成長 14%，年減 15%。營收環比成長主要得益於固態硬碟銷售成長和平均售價上漲。

Finally, revenue for the Embedded Business Unit was $734 million, up 4% from FQ4 and down 21% from the prior year. Sequential revenue growth was mostly driven by the automotive market due to content growth.

最後，嵌入式業務部門的營收為 7.34 億美元，比第四財季成長 4%，比上年同期下降 21%。營收環比成長主要得益於汽車市場的內容成長。

The consolidated gross margin for FQ1 was 27.3%, slightly above the midpoint of our guidance. FQ1 gross margins included approximately a 240 basis point negative impact or approximately $125 million due to underutilization charges at the Lehi Fab. This came in slightly better than we guided to on last quarter's call, but underutilization charges are expected to ramp higher in FQ2 as production volumes decline. We still expect the underutilization charges to average $150 million per quarter in the first half of fiscal 2020. We have taken action to reduce our spending in the Lehi Fab, which should begin to reduce underutilization charges in fiscal 2021 as these actions are implemented. Ultimately, these charges will be mitigated as our own 3D XPoint products ramp into production over the coming years.

第一財季綜合毛利率為 27.3%，略高於我們預期的中位數。FQ1 毛利率受到約 240 個基點的負面影響，或約 1.25 億美元，原因是 Lehi Fab 的產能利用率不足。雖然比我們上季電話會議的預期略好，但隨著產量下降，預計第二季產能利用率不足的費用將會大幅增加。我們仍預計，2020 財年上半年，未充分利用費用平均每季將達到 1.5 億美元。我們已採取措施減少在萊希工廠的支出，隨著這些措施的實施，應該會在 2021 財年開始減少未充分利用費用。最終，隨著我們自己的 3D XPoint 產品在未來幾年逐步投入生產，這些費用將會得到緩解。

Operating expenses were $811 million as we incurred higher-than-usual R&D expenses to qualify new products. We expect to operate at higher levels of qualification expenses for the remainder of fiscal 2020 as we continue to expand our product portfolio. As a result, we now expect operating expenses to be approximately $3.3 billion for the fiscal year. We continue to prudently control all other operating expenses and remain flexible should business conditions warrant.

由於研發費用高於往常，導致新產品研發費用增加，營運費用為 8.11 億美元。隨著我們不斷擴大產品組合，預計在 2020 財年剩餘時間裡，我們的資格認證費用將維持在較高水準。因此，我們現在預計本財年的營運支出約為 33 億美元。我們將繼續謹慎控制所有其他營運費用，並根據業務情況保持靈活應對。

FQ1 operating income was $594 million representing 12% of revenue. Operating margin was down 38 percentage points year-over-year and down 3 percentage points from FQ4.

第一季營業收入為 5.94 億美元，佔總營收的 12%。營業利益率較去年同期下降 38 個百分點，較第四財季下降 3 個百分點。

Our FQ1 effective tax rate was 6.9%. We expect our tax rate to be approximately 5% for the remainder of the fiscal year.

我們第一季的實際稅率為 6.9%。我們預計本財年剩餘時間內的稅率約為 5%。

Non-GAAP earnings per share in FQ1 were $0.48, down from $0.56 in FQ4 and $2.97 in the year-ago quarter.

第一財季非GAAP每股收益為0.48美元，低於第四財季的0.56美元及去年同期的2.97美元。

Turning to cash flows and capital spending. We generated $2 billion in cash from operations in FQ1, representing 40% of revenue. During the quarter, net capital spending was approximately $1.9 billion, down from approximately $2 billion in the prior quarter. We are continuing to target FY '20 CapEx in the range of $7 billion to $8 billion.

接下來討論現金流和資本支出。第一財季，我們的經營活動產生了 20 億美元的現金流，佔總營收的 40%。本季淨資本支出約 19 億美元，低於上一季的約 20 億美元。我們繼續將 2020 財年的資本支出目標設定在 70 億至 80 億美元之間。

We generated adjusted free cash flow of approximately $80 million in FQ1 compared to $260 million last quarter and approximately $2.3 billion in the year-ago quarter.

我們第一財季的調整後自由現金流約為 8,000 萬美元，而上一季為 2.6 億美元，去年同期約為 23 億美元。

In FQ1, we repurchased 1.1 million shares for $50 million. In addition, we deployed approximately $200 million of cash to settle convertible note redemptions in the quarter, removing approximately 3 million shares from our fully diluted share count.

第一財季，我們以 5,000 萬美元的價格回購了 110 萬股股票。此外，本季我們投入了約 2 億美元現金用於結算可轉換債券贖回，使我們完全稀釋後的股份數量減少了約 300 萬股。

We will continue to target deploying at least 50% of our annual free cash flow towards repurchases.

我們將繼續致力於將至少 50% 的年度自由現金流用於股票回購。

Days of inventory was 121, down from 131 days in FQ4. Inventory ended the quarter at $4.9 billion, down slightly from $5.1 billion at the end of FQ4. Over the last 2 quarters, our inventory days have declined by approximately 15%. We expect inventory days to increase in fiscal Q2 due to seasonality and then begin to reduce again for the remainder of the year.

庫存週轉天數為 121 天，低於第四季的 131 天。本季末庫存為 49 億美元，略低於第四財季末的 51 億美元。過去兩個季度，我們的庫存週轉天數下降了約 15%。我們預計第二財季的庫存週轉天數將因季節性因素而增加，然後在今年剩餘時間內開始再次減少。

We ended the quarter with total cash of $8.3 billion and total liquidity of nearly $11 billion. We deployed approximately $1.3 billion of liquidity in FQ1 to fund the closing of our acquisition of Intel's stake in the IMFT joint venture.

本季末，我們持有的現金總額為 83 億美元，流動資金總額接近 110 億美元。我們在第一財季投入了約 13 億美元的流動資金，用於完成對英特爾在 IMFT 合資企業中所持股份的收購。

FQ1 ending total debt was $5.7 billion, down slightly from the prior quarter. In addition to the retirement of IMFT's member debt, we used cash on hand to retire approximately $520 million in principal of high-yield debt. This was partially offset by the drawdown of our term-loan facility to fund the IMFT acquisition.

第一財季末總負債為57億美元，較上一季略為下降。除了償還 IMFT 的成員債務外，我們還利用手頭現金償還了約 5.2 億美元的高收益債務本金。部分損失被我們動用定期貸款額度為收購 IMFT 提供資金所抵銷。

Our balance sheet is very strong, with net cash of $2.7 billion, and we remain committed to maintaining a net cash position. Last month, S&P upgraded Micron's credit rating to investment grade, and now all 3 rating agencies rate Micron's credit as investment grade.

我們的資產負債表非常穩健，淨現金達 27 億美元，我們將繼續致力於維持淨現金部位。上個月，標普將美光的信用評等上調至投資等級，現在所有3家評等機構都將美光的信用評等評為投資等級。

Now turning to our financial outlook. As Sanjay mentioned, our outlook throughout our earnings commentary assumes that the macroeconomic environment and trade-related issues will not impact demand.

現在來談談我們的財務前景。正如Sanjay所提到的那樣，我們在整個獲利評論中都假設宏觀經濟環境和貿易相關問題不會影響需求。

Micron's fiscal second quarter is the seasonally weakest quarter for the industry. We continue to exercise pricing discipline and reduce business at customers where pricing does not meet our objectives, and this limits our business opportunity within the quarter.

美光科技的第二財季通常是業界季節性最弱的季度。我們繼續實行價格紀律，減少與定價不符合我們目標的客戶的業務往來，這限制了我們本季的業務機會。

Additionally, in FQ2, pockets of supply tightness are limiting our bit shipments, Lehi underutilization costs are going to step up, and our cost reductions are likely to remain modest. However, we are encouraged by recent market trends and expect that FQ2 will be the bottom for our gross margins as pricing, increasing mix of high-value solutions and cost reductions drive better gross margins throughout the rest of fiscal and calendar 2020.

此外，在第二季度，部分地區的供應緊張限制了我們的比特出貨量，Lehi 的未充分利用成本將會上升，我們的成本削減幅度可能仍然不大。然而，我們對近期的市場趨勢感到鼓舞，並預計第二財季將是我們的毛利率最低點，因為定價、高價值解決方案組合的增加以及成本的降低將推動 2020 財年剩餘時間和日曆年毛利率的提高。

We expect a gradual recovery to start in FQ3 and to continue into the seasonally stronger second half of calendar year.

我們預計第三財季將開始逐步復甦，並持續到季節性成長較強勁的下半年。

With that in mind, our non-GAAP guidance for fiscal Q2 is as follows: We expect revenue to be in the range of $4.5 billion to $4.8 billion; gross margin to be in the range of 27%, plus or minus 150 basis points; and operating expenses to be approximately $825 million, plus or minus $25 million. Interest and other income is expected to be approximately 0. Based on a share count of approximately 1.14 billion fully diluted shares, we expect EPS to be $0.35, plus or minus $0.06.

有鑑於此，我們對第二財季的非GAAP業績指引如下：預計營收將在45億美元至48億美元之間；毛利率將在27%左右，上下浮動150個基點；營運費用約為8.25億美元，上下浮動2,500萬美元。預計利息和其他收入約為 0。根據約 11.4 億股完全稀釋股份的股數，我們預計每股收益為 0.35 美元，上下浮動 0.06 美元。

As we approach the trough in this cycle, at the midpoint of our guidance, fiscal Q2 revenue will be 60% higher and gross margins 9 percentage points higher than in the prior trough, which occurred in the fiscal third quarter of 2016. Micron's solid financial performance and investment-grade balance sheet demonstrate that the new Micron is indeed structurally stronger with higher lows and better cross-cycle revenue growth and profitability.

隨著我們接近本輪週期的低谷，按照我們預期的中點，第二財季的營收將比上一個低谷（2016 財年第三季）高出 60%，毛利率將高出 9 個百分點。美光穩健的財務表現和投資等級資產負債表表明，新的美光在結構上確實更加強大，低點更高，跨週期收入成長和獲利能力也更好。

I'll now turn the call over to Sanjay for closing remarks.

現在我將把電話交給桑傑，請他作總結發言。

Thank you, Dave. Micron is entering 2020 as a fundamentally stronger company in an industry that is structurally transformed. Supply growth is moderating due to rising capital intensity and the slowing down of Moore's Law. Demand drivers are more diversified than ever before, both in end markets and in variety of memory and storage solutions. This change in industry dynamics creates new opportunities for Micron to innovate and provide differentiated value to customers. Nascent applications promise to further accelerate this diversification. Cloud growth continues at a brisk pace driven by new use cases, and 5G networks are just beginning to proliferate and will usher in an age of true machine-to-machine communication with billions of connected devices. And just a little further over the horizon, AI, machine learning and autonomous technologies will expand this potential even more. These trends are transforming every aspect of human life and driving secular growth in memory and storage. Micron's enhanced product portfolio, improved cost structure and talented team put us in an outstanding position to capitalize on the wealth of opportunities ahead and create long-term shareholder value.

謝謝你，戴夫。進入 2020 年，美光科技已成為一家基礎更強大的公司，而它所在的產業也發生了結構性變革。由於資本密集度上升和摩爾定律放緩，供應成長正在放緩。無論是在終端市場還是在各種記憶體和儲存解決方案方面，需求驅動因素都比以往任何時候都更加多元化。行業動態的這種變化為美光科技創造了新的創新機會，使其能夠為客戶提供差異化的價值。新興應用有望進一步加速這種多元化發展。受新用例的推動，雲端運算持續快速成長，而 5G 網路才剛開始普及，並將開啟數十億台連網裝置真正實現機器對機器通訊的時代。再過不久，人工智慧、機器學習和自主技術將進一步拓展這種潛力。這些趨勢正在改變人類生活的方方面面，並推動記憶和儲存技術的長期成長。美光公司增強的產品組合、改進的成本結構和優秀的團隊使我們處於非常有利的地位，能夠抓住未來的眾多機遇，創造長期的股東價值。

We will now open for questions.

現在開始接受提問。

(Operator Instructions) Our first question comes from the line of Srini Pajjuri of SMBC Nikko.

（操作員說明）我們的第一個問題來自 SMBC 日興的 Srini Pajjuri。

Sanjay, just a couple of questions. I guess, first on the supply shortages that you talked about. Could you please elaborate? Because on one hand, you're talking about some shortages. On the other hand, the inventories are going up as we head into the next quarter. And then I have a follow-up.

桑傑，我問幾個問題。我想，首先是關於你提到的供應短缺問題。能詳細說明一下嗎？因為一方面，你提到了一些短缺問題。另一方面，隨著我們進入下一季度，庫存正在上升。然後我還有一個後續問題。

So as we said last time as well as in this earnings call that we have certain shortages in DRAM on the leading-edge nodes, and we have brought down our inventory here, overall inventory down fairly fast, as Dave pointed out. And we have seen strong growth in demand in DRAM on high-quality, high-density modules for servers as well as demand trends have continued to be pretty solid. So shortages on the leading-edge nodes on DRAM.

正如我們上次以及本次財報電話會議上所說，我們在尖端節點上存在 DRAM 短缺，我們已經降低了庫存，整體庫存下降得相當快，正如 Dave 指出的那樣。我們看到，伺服器用高品質、高密度DRAM模組的需求強勁成長，需求趨勢一直相當穩健。因此，DRAM 尖端節點出現了短缺。

And on the NAND side, we have SSD demand going up substantially. And our 96-layer products, as we expand the portfolio, are being qualified by customers. We are seeing strong demand on our 64-layer node, where we are actually seeing some shortages. And of course, as we mentioned, we experience some back-end constraints as well. We have invested in back-end capacity, assembly and test capacity expansion, and that's -- will -- assembly and test issues impacting some of our multi-die stack on the mobile solutions as well as SSD solutions. The assembly and test constraints will be eliminated largely by the end of fiscal second quarter.

而在 NAND 快閃記憶體方面，固態硬碟的需求正在大幅成長。隨著我們不斷擴大產品組合，我們的 96 層產品正在接受客戶的驗證。我們看到市場對 64 層節點的需求強勁，實際上出現了一些短缺。當然，正如我們所提到的，我們也遇到了一些後端方面的限制。我們已投資於後端產能、組裝和測試產能的擴張，而組裝和測試問題將會影響我們行動解決方案以及 SSD 解決方案中的一些多晶片堆疊。到第二財季末，組裝和測試的限制將基本消除。

So these are some of the things that are impacting some of the shortages both in DRAM and on the NAND side. And again, the demand trends continue to be solid. Of course, in CQ1, we see seasonality. And yes, some of our inventory may go up at the end of fiscal Q2. But overall, our normal inventory days is around, as we look ahead, is around 110 days and that's really a function of increasing complexity coming from the technology nodes as well as, as we shift toward high-value solutions, more SSDs, more multi-chip packages, they take longer assembly and test times as well. So those are the ones that are contributing to some of the aspects of days of inventory that when we foresee in the future, we look at it as approximately 110 days.

所以，這些因素正在影響DRAM和NAND快閃記憶體的短缺情況。需求趨勢依然強勁。當然，在第一季度，我們看到了季節性因素。是的，我們的一些庫存可能會在第二財季末增加。但總體而言，我們正常的庫存週轉天數約為 110 天，展望未來，這實際上是由於技術節點的複雜性不斷增加，以及隨著我們轉向高價值解決方案（更多 SSD、更多多晶片封裝），它們也需要更長的組裝和測試時間。所以，這些因素導致了我們預測未來庫存週轉天數約為 110 天。

So industry environment, in terms of demand, continues to be solid, pockets of shortages building all across the industry, certainly, we are experiencing that. And pricing trends overall in the industry. As you look ahead at 2020, we are yet optimistic about the improving pricing trends in the industry as well.

因此，就需求而言，產業環境依然穩健，但整個產業各地都出現了短缺，我們當然也感受到了這一點。以及整個產業的定價趨勢。展望2020年，我們對產業價格趨勢的改善仍持樂觀態度。

(Operator Instructions) Our next question comes from the line of John Pitzer of Crédit Suisse.

（操作說明）我們的下一個問題來自瑞士信貸的約翰‧皮策。

Congratulations on the solid results. Sanjay, I wanted to talk a little bit about the CapEx guidance for this fiscal year. I think I understand the strategy around NAND to, kind of, constrain spending on the first generation of replacement gate where cost downs are de minimis and, kind of, weighed to Version 2.0. But I'm kind of curious, as you think about the DRAM strategy, especially given that demand came in much stronger than expected, this year, 20%, and there were some of us that thought at the beginning of the year, we'd be lucky to get to low double-digit growth. How do we think about DRAM CapEx from here and your ability to, kind of, keep up with industry bit growth? And I guess, specifically, my question is, how much circular leeway do you have in moving more of your mix of DRAM towards the leading-edge node as a way to grow bits rather than just shrinking?

祝賀你們取得如此優異的成績。Sanjay，我想和你談談本財年的資本支出指導。我認為我了解 NAND 的策略，即限制第一代替代閘的支出，因為成本下降微乎其微，並且將重心放在 2.0 版本上。但我很好奇，考慮到DRAM策略，尤其是今年的需求比預期強勁得多，成長了20%，而年初的時候我們中的一些人認為，能達到兩位數的低成長率就不錯了。從現在開始，我們該如何看待 DRAM 資本支出以及你們能否跟上產業比特成長的步伐？具體來說，我的問題是，在將更多 DRAM 組件轉移到前沿節點以增加比特數而不是僅僅縮小比特數方面，您有多少循環餘地？

Certainly, as we move our DRAM production to leading-edge node, for example, through 1Z that we mentioned that we did very well with ramping 1Z DRAM node in our mobile products during the quarter, so of course, those give us bit growth. It comes with the shrink capability, and technology transitions are the best way to achieve ROI as well. What's important is that we are being extremely disciplined and prudent in terms of managing our supply bit growth, and we want to make sure that it's aligned with our bit demand growth as well, as our long-term objective is to have our supply bit growth CAGR to be aligned with the industry demand growth CAGR. We mentioned that in 2019, our DRAM supply growth somewhat below the industry supply growth. And in fiscal year 2020, we -- in calendar year 2020, we see our supply growth to be somewhat above the industry supply growth. But all in all, our strategy is to have our supply growth CAGR to be aligned with the industry demand growth CAGR. We feel very good about -- when we look ahead at 2020, our supply overall position, and yes, I mean, we are experiencing certain shortages on leading nodes. And we believe that some of these shortages in the industry as well as, for us, will continue in calendar year 2020 time frame. And frankly, that's a good place to be at in terms of running the business because it helps you manage the best mix of the business as well in terms of revenue and profitability.

當然，隨著我們將 DRAM 生產轉移到前沿節點，例如我們提到的 1Z 節點，我們在本季度行動產品中 1Z DRAM 節點的產能提升非常成功，因此，這些當然會為我們帶來位元成長。它具備縮小體積的能力，而且技術轉型也是實現投資報酬率的最佳途徑。重要的是，我們在管理供應鑽頭增長方面非常自律和謹慎，並且我們希望確保它與鑽頭需求增長保持一致，因為我們的長期目標是使我們的供應鑽頭增長複合年增長率與行業需求增長複合年增長率保持一致。我們曾提到，2019 年，我們的 DRAM 供應成長略低於產業供應成長。在 2020 財年（即 2020 日曆年），我們預計我們的供應成長將略高於產業供應成長。但總而言之，我們的策略是使我們的供應成長複合年增長率與產業需求成長複合年增長率保持一致。展望 2020 年，我們對整體供應狀況感到非常滿意，當然，我的意思是，我們在主要節點上確實遇到了一些短缺。我們相信，產業內以及我們自身面臨的這些短缺問題，在 2020 年仍將持續存在。坦白說，就經營業務而言，這是一個不錯的狀態，因為它有助於你在收入和盈利能力方面管理好業務的最佳組合。

Our next question comes from C.J. Muse of Evercore.

我們的下一個問題來自 Evercore 公司的 C.J. Muse。

I guess a question on the DRAM demand side. You're outlining an outlook for 15 -- or sorry, mid-teens growth in 2020. I'm curious, as you think about that number, how much of that, I guess, relates to potential pulling of China demand, potential conservatism on your part? And within that, what kind of assumptions are you making around 5G handsets and continued cloud spending through 2020?

我想問的是關於DRAM需求的問題。你正在展望 2020 年 15% 的成長——或者抱歉，是 15% 的成長。我很好奇，當你思考這個數字時，你認為其中有多少是與中國需求的潛在下降有關，又有多少與你自身的保守傾向有關？在此基礎上，您對 2020 年的 5G 手機和持續雲端支出有哪些假設？

So certainly, 5G will be a growth driver. We expect 5G handsets, smartphones to be more weighted toward the second half of the calendar year. Cloud CapEx, as you have seen the reports from various major cloud providers, cloud CapEx continues to be healthy. A meaningful portion of that cloud CapEx goes into memory and storage and that continues to drive above-average industry -- above-average demand as a percentage versus the average of the total DRAM industry. And 5G phones, I think it's important to note that content continues to grow as we mentioned in our script. I mean, of course, 4G phones content continues to grow, but 5G phones are driving a step-level function increase in the average content of both DRAM as well as NAND.

所以，5G無疑將成為經濟成長的驅動力。我們預計 5G 手機和智慧型手機的銷售量將在下半年大幅成長。正如您從各大雲端服務供應商的報告中看到的那樣，雲端資本支出仍然保持健康狀態。相當一部分雲端資本支出都投入了記憶體和儲存領域，這持續推動著產業高於平均水平——相對於整個 DRAM 產業的平均水平而言，需求百分比高於平均水平。至於 5G 手機，我認為值得注意的是，正如我們在腳本中提到的那樣，內容仍在不斷增長。我的意思是，當然，4G 手機的容量還在不斷增長，但 5G 手機正在推動 DRAM 和 NAND 的平均容量實現階梯式增長。

And our estimation is that in calendar year 2020, approximately $200 million of 5G smartphones to be sold on a global basis. So overall, when we look at the demand -- industry demand of mid-teens that we have projected for calendar year 2020, keep in mind that it's building upon calendar year 2019, where industry demand in the second half came in quite strong. And in fact, we upped our estimate of industry demand growth to approximately 20% for 2019. So you are working off a large demand, larger than previously expected total bit shipments in 2019. And obviously, that has an impact on the percentage that we look at for 2020. But in terms of aggregate of bit demand, that continues to be pretty solid in 2020 as well. And as we said, 2019 was a headwind in terms of demand and supply for the industry. In 2020, we look at demand and supply balance as a tailwind for the industry.

根據我們估計，2020 年全年，全球 5G 智慧型手機的銷售額約為 2 億美元。因此，總的來說，當我們審視需求時——我們預測 2020 年日曆年行業需求將達到十幾個百分點，請記住，這是在 2019 年日曆年的基礎上建立起來的，而 2019 年下半年的行業需求相當強勁。事實上，我們將 2019 年產業需求成長的預期上調至約 20%。所以你們正在應對龐大的需求，比之前預期的 2019 年總比特出貨量還要大。顯然，這會對我們 2020 年所看到的百分比產生影響。但就比特需求總量而言，2020 年依然相當穩健。正如我們所說，2019 年對該行業而言，需求和供應都面臨逆風。2020年，我們認為供需平衡是推動產業發展的利多因素。

Our next question comes from Aaron Rakers of Wells Fargo Securities.

下一個問題來自富國證券的 Aaron Rakers。

I guess, just on the capital expenditure front. Obviously, you guys have talked about reiterating the CapEx, but you're also, on the Taiwan fab, you're noting that, that fab is capable of EUV. I know you've talked about that you don't need that through the 1-gamma node, but it kind of suggests that you are looking at EUV as potentially something that you're evaluating. Have you pulled in all your thoughts on EUV? And how do we think about that in the context of CapEx, not necessarily this year, but looking out into the subsequent years?

我想，主要是指資本支出方面。顯然，你們已經討論過重申資本支出，但你們也提到，台灣的工廠有能力進行 EUV 光刻。我知道您說過您不需要透過 1-gamma 節點進行此操作，但這似乎表明您正在考慮 EUV 作為您正在評估的潛在技術。你是否已經把關於極紫外光刻（EUV）的所有想法都整理好了？那麼，在資本支出方面，我們該如何看待這個問題呢？不一定是指今年，而是著眼於未來幾年？

So at this point, we are not providing guidance for any time frame beyond our fiscal year 2020 in terms of CapEx. But as we have always said, we have been evaluating EUV technology. We have carefully evaluated EUV technology in terms of determining our road map for DRAM. And as you noted, through -- we have said that through 1-gamma node, today, we are in production with now 1Z node, starting production with 1Z, and of course, volume production also of 1Y node. So from 1Y to 1Z, as we look ahead at the next few generations through 1-alpha, 1-beta and 1-gamma generations, we see that multi-patterning techniques, along with immersion technology, will serve us well in terms of achieving our cost objective and having a highly cost-competitive road map for us. So we have also said that we continue to evaluate EUV. And when we see it appropriate for deployment in our DRAM production in terms of cost and efficiency of production, we will certainly be deploying it at a future time in that. But at this point, we see our technology road map through 1-gamma node to be in strong position, while we remain encouraged seeing the improvement in EUV productivity tool as well.

因此，目前我們不提供 2020 財年之後任何時間範圍內的資本支出指引。但正如我們一直所說，我們一直在評估 EUV 技術。我們已仔細評估了 EUV 技術，以確定我們 DRAM 的發展路線圖。正如您所指出的，透過——我們說過，透過 1-gamma 節點，今天，我們已經開始生產 1Z 節點，開始生產 1Z，當然，1Y 節點也將進行批量生產。因此，從 1Y 到 1Z，當我們展望接下來的幾代產品，即 1-alpha、1-beta 和 1-gamma 世代時，我們看到多重圖案化技術以及浸沒技術將對我們實現成本目標和製定具有高度成本競爭力的路線圖大有裨益。所以我們也說過，我們會繼續評估 EUV 技術。當我們認為從成本和生產效率的角度來看，這項技術適合在我們的 DRAM 生產中部署時，我們將來一定會將其部署到我們的 DRAM 生產中。但就目前而言，我們認為我們透過 1-gamma 節點實現的技術路線圖處於有利地位，同時我們也對 EUV 生產力工具的改進感到鼓舞。

But regarding CapEx for future years, we'll obviously always manage it as a function of our supply growth expectations as well as, as a function of technology and cost competitiveness and keeping our supply growth, as I said previously, aligned with demand CAGR. That's how we will manage it, and we'll share those details with you at appropriate time in the future.

但就未來幾年的資本支出而言，我們顯然會始終根據我們的供應成長預期以及技術和成本競爭力來管理，正如我之前所說，保持我們的供應成長與需求複合年增長率保持一致。我們將按此方式處理，並將在未來適當的時候與您分享這些細節。

Our next question comes from Mark Delaney of Goldman Sachs.

下一個問題來自高盛的馬克·德萊尼。

I was hoping to better understand the company's commentary on its own inventory, which -- nice to see that come down in dollars and days in the just-completed quarter. As you think about your inventory, as you move through the year, I understood some of the aggregate commentary, but can you be a bit more specific? Because I think the company had been carrying extra inventory of some of these older DRAM nodes. When do you think that gets used up? And when you talk about 110 days, Sanjay, is that being on a more normal level of inventory, just given because the company is going to be carrying the extra NAND inventory for the replacement gate node? Should we be thinking about inventory running above 110 to allow for that this year? Or is the 110 really a this-year comment as you carry some of that extra replacement gate inventory? And longer term, it's something lower than that?

我原本希望更好地了解該公司對其自身庫存的評論，很高興看到在剛結束的季度中，庫存金額和天數都有所下降。當您考慮庫存時，隨著一年的進行，我理解了一些總體上的評論，但您能否更具體地說明？因為我認為該公司一直囤積著一些較舊的DRAM節點的庫存。你覺得這些資源什麼時候會用完？Sanjay，你提到的 110 天庫存量，是否屬於比較正常的庫存水準？這是因為公司需要為替換的閘極節點儲備額外的 NAND 庫存嗎？今年我們是否應該考慮將庫存維持在 110 以上以應對這種情況？或者，110 這個數字實際上是今年的一個特例，因為你們有一些額外的替換閘門庫存？從長遠來看，這個數字會低於這個值嗎？

Yes. That's a good question. Why don't I try to take a crack at that first? So yes, the comment around 110 days is kind of an optimal level of inventory when we have worked off all of the excess inventory associated with the replacement gate transition and as inventories normalize. Obviously, in the 121 days of inventory that we have today, DRAM is a bit below that. Really what pulls it up to 121 is that NAND is quite a bit higher than that by virtue of the fact that we are executing on this strategy to hold a lot of inventory as we go into our replacement gate transition to augment what won't be a robust bit growth from that first node. As Sanjay mentioned, we do expect days of inventory to go up a bit based on mix and so forth in the second quarter because of seasonality, but we would expect it then to start trending down over the next few quarters, partly as we start to utilize this excess NAND inventory for the replacement gate transition and also as we start to digest and manage through this -- the mix challenges that have created a little bit of excess spill on the DRAM front. So it's just we should be in a pretty healthy place on DRAM within a couple of quarters.

是的。這是個好問題。我為什麼不先嘗試呢？所以，是的，大約 110 天的庫存水平是一個理想的水平，因為我們已經處理掉了與更換大門過渡相關的所有過剩庫存，並且庫存也恢復了正常水平。顯然，在我們目前擁有的 121 天庫存中，DRAM 的庫存量略低於這個數字。真正將價格拉高到 121 的原因是，NAND 的價格要高得多，因為我們正在執行這項策略，即在進行替換閘過渡時保持大量庫存，以彌補第一個節點不會強勁的位元成長。正如 Sanjay 所提到的，由於季節性因素，我們預計第二季度庫存天數會因產品組合等原因略有上升，但我們預計接下來的幾個季度庫存天數將開始下降，部分原因是我們將開始利用這些過剩的 NAND 庫存進行了一些替換閘極過渡，同時也因為我們開始消化和管理這些挑戰——這些挑戰導致 DRAM 方面出現了一些替換庫存。所以，再過幾個季度，我們的DRAM供應情況應該就會相當健康。

Our next question comes from Ambrish Srivastava of BMO Capital Markets.

下一個問題來自 BMO 資本市場的 Ambrish Srivastava。

Good to see you power through this downturn with positive free cash flow. I just wanted to get back to the comment that, Sanjay, you were making about the fiscal second quarter marking the bottom for fundamentals. And CapEx seems to be a little bit front-end loaded. So is free cash flow going to be positive in the fiscal second quarter as well?

很高興看到你們在經濟低迷時期依然保持了正向自由現金流。我只是想回應你之前提到的關於第二財季標誌著基本面觸底反彈的評論，桑傑。而且資本支出似乎有點前期投入過高。那麼，第二財季的自由現金流也會是正值嗎？

So I'll take a crack at that one, too. I would say, maybe to start with, that the first priority of the company is to make the appropriate level investments, both in terms of R&D, and which is why we have had a little bit of an increase in operating expenses because we do want to put the right level of investment in new products, particularly high-value solution products that will ultimately be the big factor in terms of our performance over the coming years. And in addition, we obviously want to make the appropriate level in terms of CapEx investments to make sure that we are, as Sanjay mentioned, investing the right level to manage supply growth and to make these node transitions.

那我也來試試吧。我想說，首先，公司的首要任務是進行適當程度的投資，包括研發方面。正因如此，我們的營運費用略有增加，因為我們希望對新產品，特別是高價值解決方案產品進行適當的投資，這些產品最終將成為我們未來幾年業績的關鍵因素。此外，我們顯然希望在資本支出投資方面達到適當的水平，以確保我們像 Sanjay 所提到的那樣，進行適當的投資來管理供應成長並實現這些節點轉型。

Secondarily, of course, our goal is to generate good free cash flow. And ideally, it would be to generate pretty consistent free cash flow over multiple -- or over every quarter. I would say, in the second quarter, what we feel really confident about is that cash flow from operations is going to be very strong. And we will, again, make appropriate level of CapEx investment that could drive the free cash flow to be slightly negative or roughly around 0 or potentially even a little bit more positive, but we're going to make the capital investment be what's appropriate and let free cash flow go where it goes. I would say though, just to put this in perspective, the trough quarter of 2016, in terms of free cash flow, was negative $1.3 billion, I believe. And so if you compare that to whatever we end up doing for the second quarter, this will be massively better in terms of cash flow generation, and of course, that's an indication of -- or an example of how we have structurally improved the business from a cost-competitive perspective and from a cash flow perspective. And indeed, if this does turn out to be the bottom, as Sanjay indicated, it is our expectation, barring any sort of macro event or trade event, we would expect free cash flow to track more positively through the remainder of the fiscal year and into the next fiscal year. So this year will be actually a pretty good year in terms of free cash flow. That will be 4 consecutive years of positive, significantly positive free cash flow for the company, which, of course, has never been done in Micron's history.

當然，其次，我們的目標是產生良好的自由現金流。理想情況下，應該在多個季度（或每個季度）產生相當穩定的自由現金流。我認為，在第二季度，我們真正有信心的是，經營活動產生的現金流將會非常強勁。我們將再次進行適當的資本支出投資，這可能會使自由現金流略微為負，或大致在 0 左右，甚至可能略微為正，但我們將進行適當的資本投資，讓自由現金流自由流動。不過，為了更清楚地說明這一點，我認為，2016 年自由現金流最低的季度是負 13 億美元。因此，如果將此與我們第二季度的最終方案進行比較，在現金流方面將會有顯著改善，當然，這表明——或者說是一個例子，說明我們如何從成本競爭力和現金流的角度對業務進行了結構性改進。的確，如果這真的是底部，正如桑傑所指出的那樣，我們預計，除非發生任何宏觀事件或貿易事件，否則自由現金流將在本財年剩餘時間和下一個財年內呈現更加積極的走勢。所以今年的自由現金流其實會相當不錯。這將是該公司連續 4 年實現正向且顯著正向的自由現金流，這當然在美光科技的歷史上從未實現過的。

So again, ideally, we'd like to have every quarter be positive. That may or may not happen this quarter, but clearly, we're on the right track in terms of generating positive free cash flow for the company.

所以，理想情況下，我們希望每季都能實現正收益。這或許會在本季發生，也或許不會，但很顯然，我們在為公司創造正自由現金流方面正走在正確的道路上。

Our next question comes from Harlan Sur of JP Morgan.

下一個問題來自摩根大通的哈蘭‧蘇爾。

We've seen a strong reacceleration in cloud and hyperscale spending. Also seeing some near-term strong server builds by the Asia ODMs. And it appears that the excess DRAM channel inventories in this segment have been worked on. But wanted to get your views here. And typically, the cloud spending up-cycle duration is about 3 to 4 quarters. So even in a seasonally weaker period for PCs and smartphones in the first part of next year, do you see the server and data center demand remaining fairly strong?

我們看到雲端運算和超大規模支出出現了強勁的重新加速。此外，我們也看到亞洲ODM廠商近期推出了一些強勁的伺服器產品。看來該領域過剩的 DRAM 通道庫存問題已經解決。但還是想聽聽你們的看法。通常情況下，雲端支出成長週期約為 3 到 4 個季度。因此，即使在明年上半年個人電腦和智慧型手機的銷售淡季，您認為伺服器和資料中心的需求是否仍將保持相當強勁？

Yes. As we look ahead, we do see server and data center demand, particularly within cloud, to be strong. We have had, as we mentioned, in our FQ1, strong growth from cloud, and we certainly see that happening through 2020 as well. As we mentioned, high densities are actually in shortage in the industry. And it really is about all the trend of more AI workloads, more need for memory and storage, as EUVs get introduced, that can work with higher-density memory as well as have more channels, which is increasing the attach rate of DRAM content per server and increasing it. So these are all the trends that actually point to continuing higher-than-industry-average level of growth for DRAMs in the cloud and server.

是的。展望未來，我們預期伺服器和資料中心的需求，尤其是在雲端運算領域，將會非常強勁。正如我們之前提到的，我們在第一季實現了來自雲端運算的強勁成長，我們當然也預計這種情況會持續到 2020 年。正如我們所提到的，高密度材料在行業內實際上是短缺的。這實際上與人工智慧工作負載增加、對記憶體和儲存的需求增加的趨勢有關，隨著 EUV 的引入，它可以與更高密度的記憶體配合使用，並且擁有更多的通道，這提高了每台伺服器的 DRAM 內容附加率並使其增加。因此，所有這些趨勢實際上都表明，雲端和伺服器領域的 DRAM 將繼續保持高於行業平均的成長。

And same thing on the NAND, on the SSD front, average density as well as the average usage of flash in cloud and data center applications continues to increase. And we have always said that this is a long-term demand driver for memory and storage industry. And memory and storage is critical in terms of driving greater value in these cloud applications and in these enterprise applications, and hence, you are seeing continuing strong growth in these end market segments.

NAND快閃記憶體的情況也類似，在固態硬碟方面，平均密度以及雲端和資料中心應用程式中快閃記憶體的平均使用量都在持續成長。我們一直認為，這將是記憶體和儲存產業的長期需求驅動因素。記憶體和儲存對於推動這些雲端應用和企業應用的更大價值至關重要，因此，你會看到這些終端市場領域持續強勁成長。

And I would just like to point it out that even in 2019, while the demand to the suppliers was weaker in the first half of the year because the customers, particularly in this space, were using up the inventory that they had to meet end consumption, but it's important to understand that the end consumption of DRAM and NAND, even in challenging 2019 periods, continued to be healthy. And as we look ahead, this will be a strong driver of growth in the industry.

我想指出的是，即使在 2019 年，儘管上半年供應商的需求有所減弱，因為客戶（尤其是該領域的客戶）正在消耗庫存以滿足終端消費，但重要的是要明白，即使在充滿挑戰的 2019 年，DRAM 和 NAND 的終端消費仍然保持健康。展望未來，這將成為推動產業成長的強勁動力。

But I just want to point out that as we previously discussed, smartphones, content growth there; automotive applications, continuing to drive greater content; graphics, gaming consoles, new gaming consoles are also driving HDD replacement with SSDs as well as greater DRAM content in those applications. So I think the demand drivers and our thesis that has always been there that the industry has strong demand drivers has very much been intact. And we look forward to good environment for our industry in 2020.

但我只想指出，正如我們之前討論過的，智慧型手機的內容成長；汽車應用繼續推動更多內容的成長；圖形、遊戲機、新的遊戲機也在推動硬碟被固態硬碟取代，以及這些應用程式中更多動態記憶體的使用。所以我認為，需求驅動因素以及我們一直以來所堅持的「該行業擁有強勁的需求驅動因素」這一論點仍然完全成立。我們期待2020年我們產業能有良好的發展環境。

Our next question comes from David Wong of Instinet.

我們的下一個問題來自 Instinet 公司的 David Wong。

Could you tell us what proportion of DRAM bits are currently on 1Z technology? And what do you expect will be on 1Z technology by the end of calendar 2020? And what's the differences between cost per bit on 1Z compared to 1Y?

能否告知我們目前 DRAM 位元採用 1Z 技術的比例是多少？您預計到 2020 年底，1Z 技術會發展到什麼程度？1Z 和 1Y 的每位元成本有何不同？

So we don't provide cost details with respect to 1Z versus 1Y or from one node to the other node. But as we have said before that we expect our 1Y plus 1Z combined bit production to cross over our total bit production by summer 2020. That means bit crossover with 1Y and 1Z combined by summer 2020. And as we mentioned, we are doing well with our 1Z. And in fact, in mobile products, as I mentioned in my prepared remarks, we saw the fastest ramp of 1Z node in the history of our mobile presence.

因此，我們不提供有關 1Z 與 1Y 或從一個節點到另一個節點的成本詳情。但正如我們之前所說，我們預計到 2020 年夏季，我們的 1Y 和 1Z 鑽頭總產量將超過我們的鑽頭總產量。這意味著到 2020 年夏季，1Y 和 1Z 將合併為一個位元交叉。正如我們之前提到的，我們的 1Z 表現良好。事實上，正如我在準備好的發言稿中提到的，在行動產品方面，我們看到了行動領域史上 1Z 節點成長速度最快的一次。

Our next question comes from Joe Moore of Morgan Stanley.

下一個問題來自摩根士丹利的喬·摩爾。

I wanted to ask a bit more about the China inventory build that you talked about. Can you, kind of, talk about the reasons? Is it concern about ability to procure? Is it tariff related? What's the reason for the pull in? And any way you can help us, kind of, understand the magnitude would be helpful.

我想再問一下您提到的中國庫存建設方面的問題。能簡單談談原因嗎？是擔心採購能力嗎？這和關稅有關嗎？這次進站的原因是什麼？如果您能以任何方式幫助我們了解事情的嚴重性，那將非常有幫助。

As we have mentioned before, we saw some China buying pattern that was above normal compared to the past that we have seen, and we attribute that to some of the U.S.-China trade tensions and perhaps some of the customers in China procuring and shifting to perhaps a longer-term strategy of carrying more inventory because in terms of the U.S.-China trade aspects, while Phase 1 deal is definitely encouraging to see that it's happening, but lack -- there is still ongoing for longer-term lack of clarity. So perhaps some of the China customers have shifted their strategy toward carrying higher levels of inventory. I would say that, that perhaps is an important reason.

正如我們之前提到的，我們看到一些中國採購模式高於以往的正常水平，我們認為這是由於中美貿易緊張局勢造成的，也可能是由於中國的一些客戶正在採購並轉向更長期的庫存策略。因為就中美貿易而言，雖然第一階段協議的達成無疑令人鼓舞，但長期前景仍不明朗。因此，一些中國客戶可能已經改變了策略，轉向持有更高水準的庫存。我認為，這或許是個重要的原因。

There's, of course, Chinese New Year as well that can play a role in the China demand. Chinese New Year is earlier this year compared to the typical years. But there is no question that most important thing is that the underlying demand drivers are strong. And when you look at smartphone content growth that's happening in all smartphones across the globe, including the ones sold by the China manufacturers, the content, both on DRAM and NAND side, continues to increase. And certainly, as we have talked about, 5G is the significant driver. And certainly, 5G phones are planned to be sold, perhaps in the largest quantities, in China first. So all of these underlying demand trends, I think, are the most important thing here as well.

當然，中國新年也會對中國的需求產生影響。今年的春節比往年提早了。但毫無疑問，最重要的是潛在的需求驅動因素十分強勁。當你觀察全球所有智慧型手機（包括中國製造商銷售的智慧型手機）的記憶體容量成長時，你會發現，無論是 DRAM 還是 NAND，記憶體容量都在持續成長。當然，正如我們之前討論過的，5G 是重要的驅動因素。當然，5G手機計劃首先在中國銷售，而且銷量可能最大。所以我認為，所有這些潛在的需求趨勢才是最重要的。

Our next question comes from Blayne Curtis of Barclays.

下一個問題來自巴克萊銀行的布萊恩‧柯蒂斯。

Maybe, Sanjay, just to follow on Joe's question. Just kind of curious, you said it'd take a couple of quarters for Huawei to get back in the numbers. Are you embedding anything in the calendar '20 outlook you have? And I'm just kind of curious, following on that point, in terms of you're expecting some moderation from China. Have you seen any signs of that yet?

或許，桑傑，我只是想接著喬的問題再問一次。我只是有點好奇，你說過華為需要幾個季度才能恢復到之前的水平。你在 Outlook 20 行事曆中嵌入了什麼內容嗎？我有點好奇，接著剛才那一點，你是否期待中國方面有所克制？你看到任何跡象了嗎？

I'm sorry. I didn't quite get the last part of the question. Expecting...

對不起。我不太明白問題的最後一部分。期待…

Following on Joe's question, you're expecting some moderation after an inventory build. Have you seen it yet? Or is that just something you expect will happen at some point?

接著 Joe 的問題，你會預期在庫存累積之後再進行一些調整。你看過了嗎？還是你只是預期這種情況會在某個時候發生？

The -- what we said is that in terms of our estimation of the industry demand growth in calendar year 2020, we have baked in that some of the inventory that we may have seen China customers build, we have baked in that some of that will be consumed, and inventory levels will be lower than what we may be thinking at this point with those customers over the course of calendar year 2020.

我們之前說過，在 2020 年日曆年行業需求成長的估計中，我們已經考慮到中國客戶可能建立的一些庫存將會被消耗掉，因此在 2020 年日曆年內，這些客戶的庫存水準將低於我們目前可能預期的水平。

And with respect to your first piece of the question on Huawei, we mentioned that now that we have received the licenses, we are able to work with them on new product qualifications. And as you know well, new product qualifications do take a few months, a couple of quarters, before they get qualified into new platforms, and then we can potentially look at additional opportunities. But at this point, I mean, our focus is to resume that product qualification work, both for server as well as mobile applications.

關於您提出的第一個關於華為的問題，我們提到過，既然我們已經獲得了許可證，我們就可以與他們合作進行新產品認證。如您所知，新產品認證需要幾個月甚至幾季的時間，才能獲得新平台的認證，然後我們才能考慮其他機會。但就目前而言，我的意思是，我們的重點是恢復產品認證工作，包括伺服器和行動應用程式的認證工作。

Our next question comes from Raji Gill of Needham & Company.

我們的下一個問題來自 Needham & Company 的 Raji Gill。

Yes. And congrats as well as you weather through this cycle. Question on mix shift for NAND specifically. Sanjay, you had mentioned that next year, you will be ramping at a higher rate NVMe, SSDs as well as UFS controllers in the China handset market. Could you talk a little bit about the trajectory of those products and how that positive mix shift in NAND will potentially affect overall margins?

是的。也恭喜你順利度過了這個週期。關於NAND快閃記憶體混合偏移的問題。Sanjay，你曾提到明年將在中國手機市場加速推廣 NVMe、SSD 以及 UFS 控制器。您能否談談這些產品的發展軌跡，以及NAND快閃記憶體的積極組合轉變可能會如何影響整體利潤率？

I'll have Dave comment on the margin piece of it. But certainly, as we expand our portfolio of NVMe solutions for -- from clients to data center and, of course, certainly on the consumer side as well, we have done well, as we reported for our FQ1, in terms of expanding the portfolio and capitalizing on increased sales of SSDs, and we certainly look at gaining share throughout calendar 2020 as we expand our portfolio there. I think what's important to note is that our share there is today underrepresented. So as we shift toward these higher-value solutions with expanded portfolio, I mean we are basically trying to bring our share in line with what it should be given our share of the total NAND bits, and this is the part of the strategy that we talked about in terms of shifting the mix of our high-value solutions, which now are at about 50% in terms of bits toward higher number in the future. And of course, part of that ongoing shift is toward multi-chip packages as well as discrete, managed NAND solutions for mobile applications, where we pointed out that on a year-over-year basis, we have increased our share by 50%. Yet we remain underrepresented, and therein lies further opportunity for us to be increasing our share in these markets.

我會請戴夫對這部分空白處發表意見。但可以肯定的是，隨著我們不斷擴大面向客戶端、數據中心以及消費者的 NVMe 解決方案組合，正如我們在第一季財報中所報告的那樣，我們在擴大產品組合和利用 SSD 銷售增長方面取得了不錯的成績，我們期待在 2020 年全年隨著產品組合的擴大而獲得更大的市場份額。我認為需要注意的是，我們目前在那裡的份額仍然偏低。因此，隨著我們轉向這些具有更高價值的解決方案並擴大產品組合，我的意思是，我們基本上是想使我們的份額與我們在 NAND 總比特數中所佔的份額保持一致，而這正是我們之前討論過的戰略的一部分，即改變我們高價值解決方案的組合，目前這些解決方案的比特數約為 50%，未來將轉向更高的數量。當然，這種持續轉變的一部分是向多晶片封裝以及用於行動應用的獨立、可管理的 NAND 解決方案發展，我們指出，在這一領域，我們的市場份額同比增長了 50%。然而，我們在這些市場中的代表性仍然不足，因此我們還有更大的機會來提高我們在這些市場的份額。

So high-value solutions is a very important part of our strategy. It enables us to gain greater stability, greater margin opportunity through the cycles as well as brings us closer to understanding the application landscape with the customer, and I'm very pleased that Micron is executing quite well with respect to achieving our objective in this area.

因此，高價值解決方案是我們策略中非常重要的一部分。它使我們能夠在周期中獲得更大的穩定性、更大的利潤機會，並讓我們更深入地了解客戶的應用領域，我很高興美光在實現我們在這一領域的目標方面做得相當出色。

So obviously, high-value solutions, the reason -- one of the major reasons we're shifting the strategy to high-value solutions is because they carry higher margins. And I'll just give you a data point. If you look back at fiscal '19 and look at these high-value solutions relative to consumer components, you'll find the margins were about 30 points -- 30 percentage points higher. So significantly higher opportunity to get higher margins. And of course, that obviously helps the overall margins of the company.

顯然，高價值解決方案——我們轉向高價值解決方案的主要原因之一是它們能帶來更高的利潤。我給你舉個例子。回顧 2019 財年，看看這些高價值解決方案相對於消費性組件的情況，你會發現利潤率高出約 30 個百分點——高出 30 個百分點。因此，獲得更高利潤的機會也大大增加。當然，這顯然有助於提高公司的整體利潤率。

Our last question comes from the line of Hans Mosesmann of Rosenblatt Securities.

最後一個問題來自 Rosenblatt Securities 的 Hans Mosesmann。

Congratulations to the team for the execution. Sanjay, on the server and data center module dynamic where you're seeing a higher mix of quality or higher density, what was the density on average a year ago just to get a reference on how that has improved? And what exactly is driving this move? Is it a new process or architecture? Is it market share gains? That would be helpful.

恭喜團隊出色完成任務。Sanjay，關於伺服器和資料中心模組的動態變化，你現在看到的是更高品質的混合或更高的密度，那麼一年前的平均密度是多少呢？這樣可以作為參考，了解這方面有哪些改進。究竟是什麼因素促成了這項舉動？這是一個全新的流程還是架構？是市場佔有率的成長嗎？那會很有幫助。

Yes. In cloud servers as well as enterprise server, average density is around 3 giga -- 300 gigabyte per server average consumption of DRAM, and this trend is expected. When you look at the CAGR over the next few years, expect it to continue to go -- grow in double digit range anywhere, when you look at '19 to '22 kind of CAGR, around 20% CAGR for average content growth in servers, in cloud and enterprise applications. So this is definitely a high-growth area for the market.

是的。雲端伺服器和企業伺服器的平均密度約為 3 GB——每台伺服器平均消耗 300 GB DRAM，這種趨勢是可以預期的。從未來幾年的複合年增長率來看，預計它將繼續增長——任何地方都將保持兩位數的增長，從 2019 年到 2022 年的複合年增長率來看，伺服器、雲端和企業應用程式的平均內容增長率約為 20%。所以這無疑是市場上一個高成長的領域。

And when you look at the new CPUs, like Cascade Lake and other new CPUs starting in 2019, as I mentioned earlier, they support the usage of higher-density chips. That means they support usage of 16-gigabyte chips as well as more channels in the new CPUs, and that is definitely driving greater ability to use more content per server for DRAM. And of course, at the end of the day, it's about the workloads that applications are running and those workloads are requiring -- increasing requirement for speed and that's translating into increasing requirement for memory as more and more real-time data analytics kind of applications and AI applications are being run in enterprise and data center and cloud applications.

正如我之前提到的，從 2019 年開始推出的 Cascade Lake 等新型 CPU 和其他新型 CPU，都支援使用更高密度的晶片。這意味著它們支援使用 16 GB 晶片以及新 CPU 中的更多通道，這無疑提高了每台伺服器使用更多 DRAM 內容的能力。當然，歸根結底，這取決於應用程式正在運行的工作負載以及這些工作負載的要求——對速度的要求越來越高，而隨著越來越多的即時資料分析應用程式和人工智慧應用程式在企業、資料中心和雲端應用程式中運行，這又轉化為對記憶體的要求越來越高。

Great. And as a quick follow-up, can you give us a commentary regarding 3D XPoint used in main memory? If there is a road map for that this year -- this coming year?

偉大的。另外，能否請您就主記憶體中使用的 3D XPoint 做一些說明？如果今年——或者明年——有相關的路線圖的話？

So 3D XPoint, certainly, as we said, exciting opportunity for us longer term. It definitely gives us differentiated opportunity with -- as the only company in the world having NAND, DRAM and 3D XPoint. We have just introduced our first storage product with 3D XPoint, the world's fastest SSD. And as you noted, I mean 3D XPoint certainly has opportunities on the memory side of the business as well. And as we look at engaging with the ecosystem, as we look at developing our products, these are the kind of opportunities, both on the memory semantic applications as well as storage side of the applications we'll be addressing over the course of next few years, as we expand our product portfolio in this area.

所以，正如我們所說，3D XPoint 對我們來說無疑是一個令人興奮的長期機會。這無疑為我們帶來了差異化的機會——因為我們是世界上唯一一家同時擁有 NAND、DRAM 和 3D XPoint 的公司。我們剛剛推出了首款採用 3D XPoint 的儲存產品，這是世界上速度最快的 SSD。正如你所指出的，我的意思是，3D XPoint 在記憶體業務方面也肯定有機會。當我們著眼於與生態系統互動，著眼於產品開發時，這些都是我們將在未來幾年內，隨著我們擴展該領域的產品組合，在記憶體語義應用和儲存應用方面所面臨的機會。

But certainly, 3D XPoint -- again, these kind of things, breakthrough technologies, take multiple years and require a lot of ecosystem work to get the full use of the technology. And we are well on our way, as we discussed, at Micron Insight. And let me put the plug here again that if you have not watched it, please do watch Sumit's presentation. I think it gives you a pretty good perspective on the capabilities of 3D XPoint technology and our vision of the future with it.

但可以肯定的是，3D XPoint——這類突破性技術，需要數年時間，並且需要大量的生態系統工作才能充分利用這項技術。正如我們在 Micron Insight 上討論的那樣，我們正朝著這個目標穩步前進。我再次強調，如果你還沒看過，請務必觀看 Sumit 的演講。我認為這能讓你對 3D XPoint 技術的功能以及我們對未來應用該技術的願景有相當清晰的了解。

Thank you. Ladies and gentlemen, this concludes today's conference call. Thank you for participating. You may now disconnect.

謝謝。女士們、先生們，今天的電話會議到此結束。感謝您的參與。您現在可以斷開連線了。