安森美 (ON) 2021 Q4 法說會逐字稿

Good morning. My name is Rob, and I will be your conference operator today. At this time, I would like to welcome everyone to the ON Semi Fourth Quarter 2021 Earnings Conference Call. (Operator Instructions)

早上好。我的名字是 Rob，今天我將成為您的會議接線員。在這個時候，我想歡迎大家參加 ON Semi 2021 年第四季度收益電話會議。 （操作員說明）

Thank you. Parag Agarwal, Vice President of Investor Relations and Corporate Development, you may begin your conference.

謝謝你。投資者關係和企業發展副總裁 Parag Agarwal，您可以開始您的會議了。

Thank you, Rob. Good morning, and thank you for joining ON Semi's Fourth Quarter '21 Quarterly Results Conference Call. I'm joined today by Hassane El-Khoury, our President and CEO; and Thad Trent, our CFO. This call is being webcast on the Investor Relations section of our website at www.onsemi.com. A replay of this webcast, along with our 2021 fourth quarter earnings release will be available on our website approximately 1 hour following this conference call and the recorded webcast will be available for approximately 30 days following this conference call.

謝謝你，羅布。早上好，感謝您參加 ON Semi 的第四季度 '21 季度業績電話會議。今天，我們的總裁兼首席執行官 Hassane El-Khoury 也加入了我的行列；和我們的首席財務官 Thad Trent。本次電話會議正在我們網站 www.onsemi.com 的投資者關係部分進行網絡直播。本次網絡廣播的重播以及我們的 2021 年第四季度收益發布將在本次電話會議後大約 1 小時在我們的網站上提供，錄製的網絡廣播將在本次電話會議後大約 30 天內提供。

Additional information related to our end markets, business segments, geographies, channels, share count and 2022 fiscal calendar is posted on the Investor Relations section of our website. Our earnings release and this presentation include certain non-GAAP financial measures. Reconciliation of these non-GAAP financial measures to the most directly comparable measures under GAAP are included in our earnings release which is posted separately on our website in the Investor Relations section. During the course of this conference call, we will make projections or other forward-looking statements regarding future events or the future financial performance of the company.

與我們的終端市場、業務部門、地域、渠道、股票數量和 2022 財年日曆相關的其他信息發佈在我們網站的投資者關係部分。我們的收益發布和本演示文稿包括某些非公認會計準則財務指標。這些非公認會計原則財務指標與公認會計原則下最直接可比指標的對賬包含在我們的收益發布中，該發佈單獨發佈在我們網站的投資者關係部分。在本次電話會議期間，我們將對未來事件或公司未來財務業績做出預測或其他前瞻性陳述。

The words believe, estimate, project, anticipate, intend, may, expect, will, plan, should or similar expressions are intended to identify forward-looking statements. We wish to caution that such statements are subject to risks and uncertainties that could cause actual events or results to differ materially from projections. Important factors that can affect our business, including factors that could cause actual results to differ from our forward-looking statements are described in our most recent Form 10-K, Form 10-Qs and other filings with the Securities and Exchange Commission.

相信、估計、預測、預期、打算、可能、期望、將、計劃、應該或類似的表達方式旨在識別前瞻性陳述。我們希望提醒您，此類陳述存在風險和不確定性，可能導致實際事件或結果與預測存在重大差異。可能影響我們業務的重要因素，包括可能導致實際結果與我們的前瞻性陳述不同的因素，在我們最近提交給證券交易委員會的 10-K 表格、10-Q 表格和其他文件中進行了描述。

Additional factors are described in our earnings release for the fourth quarter of 2021. Our estimates or other forward-looking statements may change, and the company assumes no obligation to update forward-looking statements to reflect actual results, change assumptions or other events that may occur except as required by law.

我們在 2021 年第四季度的收益發布中描述了其他因素。我們的估計或其他前瞻性陳述可能會發生變化，公司不承擔更新前瞻性陳述以反映實際結果、改變假設或其他可能發生的事件的義務除非法律要求，否則發生。

Now let me turn over to Hassane. Hassane?

現在讓我轉給哈桑。哈桑？

Thank you, Parag, and thank you, everyone, for joining us today. As we wrap up 2021, I'm extremely pleased with the progress of our transformation journey. We are positioned ON Semi as a leader in intelligent power and sensing by focusing on enabling sustainable ecosystem. We have implemented structural changes to focus our investments and resources on the megatrends of vehicle electrification, ADAS, energy infrastructure and factory automation and this is evident by our record financial performance.

謝謝你，帕拉格，謝謝大家今天加入我們。在我們結束 2021 年之際，我對我們轉型之旅的進展感到非常高興。通過專注於實現可持續生態系統，我們將 ON Semi 定位為智能電源和傳感領域的領導者。我們實施了結構性變革，將我們的投資和資源集中在汽車電氣化、ADAS、能源基礎設施和工廠自動化的大趨勢上，我們創紀錄的財務業績就證明了這一點。

As we have shifted to focus on -- of the high-value markets of automotive and industrial, (inaudible) price-to-value discrepancies and improved manufacturing efficiencies, we have expanded our margins to achieve the target model ahead of our stated time line. Our customers view ON Semi as a strategic partner, as evidenced by the execution of multiple long-term supply agreements which provide better demand visibility for capacity planning and investments to support it. To that end, the acquisition of GTAT expands our leadership in silicon carbide and provides our customers the assurance of supply required to support this rapidly growing market. Additionally, we are exiting volatile and highly competitive noncore businesses and focusing on profitable growth and sustainable financial performance.

隨著我們轉向關注汽車和工業的高價值市場、（聽不清的）價格與價值差異以及提高製造效率，我們擴大了利潤率以在規定的時間線之前實現目標模型.我們的客戶將 ON Semi 視為戰略合作夥伴，執行多項長期供應協議就證明了這一點，這些協議為產能規劃和投資提供了更好的需求可見性以支持它。為此，收購 GTAT 擴大了我們在碳化矽領域的領先地位，並為我們的客戶提供了支持這個快速增長的市場所需的供應保證。此外，我們正在退出動盪且競爭激烈的非核心業務，並專注於盈利增長和可持續的財務業績。

In 2021, our revenue increased 28% while our operating income and free cash flow increased approximately 6x faster, demonstrating the operating leverage in our model as we continue on our transformation journey. We had a successful year amid the ongoing pandemic and supply chain challenges that continue to affect the market. Our performance has only been possible, thanks to the dedication of our worldwide teams and I'd like to take the opportunity to thank them for their hard work.

2021 年，我們的收入增長了 28%，而我們的營業收入和自由現金流增長了大約 6 倍，這表明我們在繼續轉型過程中的模式中的運營槓桿。在持續影響市場的持續流行病和供應鏈挑戰中，我們度過了成功的一年。由於我們全球團隊的奉獻精神，我們的表現才有可能實現，我想藉此機會感謝他們的辛勤工作。

Moving on to the fourth quarter. Our fourth quarter was yet another example of exceptional execution by our worldwide teams and a strong demand environment for our market-leading intelligent power and sensing products. Although we met our margin targets ahead of schedule, we expect that with ongoing mix optimization, the manufacturing consolidation we have begun and the continued ramp of new products, we have headroom to further expand our margins over the coming years. We continue to see strong demand for our products. And in 2021, our design win funnel grew over 60% year-over-year, and our new product revenue grew 28% from 2020.

繼續第四節。我們的第四季度是我們全球團隊出色執行的又一個例子，以及對我們市場領先的智能電源和傳感產品的強勁需求環境。儘管我們提前實現了利潤率目標，但我們預計，隨著持續的組合優化、我們已經開始的製造整合以及新產品的持續增加，我們在未來幾年有進一步擴大利潤率的空間。我們繼續看到對我們產品的強勁需求。 2021 年，我們的設計獲勝漏斗同比增長超過 60%，我們的新產品收入比 2020 年增長 28%。

This design win performance, along with long-term supply agreements have positioned the company for sustained long-term growth. The fourth quarter revenue growth was driven by additional capacity coming online from our investments earlier in the year and an accelerated focus to free up existing capacity to service our strategic markets consistent with our stated goal of exiting low-margin noncore products.

這種設計贏得了業績，以及長期供應協議，使公司能夠實現持續的長期增長。第四季度收入增長是由今年早些時候我們的投資帶來的額外產能推動的，以及加速關註釋放現有產能以服務於我們的戰略市場，這與我們退出低利潤非核心產品的既定目標一致。

We are making selective investments in our internal operations to expand capacity for strategic products. And at the same time, we are relieving bottlenecks in our internal manufacturing operations. We have also been successful in securing additional capacity from our external manufacturing partners. Long term, we are qualifying products in the 300-millimeter East Fishkill facility to increase the efficiency of our fab network while executing our fab lighter strategy. This will allow us to further expand both the capacity for products in our strategic markets and our gross margin over time given the cost benefits. The current supply-demand imbalance in the semiconductor industry will likely persist through 2022 and continue into 2023.

我們正在對我們的內部運營進行選擇性投資，以擴大戰略產品的產能。與此同時，我們正在緩解內部製造運營中的瓶頸。我們還成功地從外部製造合作夥伴那裡獲得了額外的產能。從長遠來看，我們在 300 毫米的東菲什基爾工廠中對產品進行認證，以提高我們的晶圓廠網絡的效率，同時執行我們的晶圓廠打火機戰略。考慮到成本效益，這將使我們能夠進一步擴大我們戰略市場中產品的產能和我們的毛利率。目前半導體行業的供需失衡可能會持續到 2022 年並持續到 2023 年。

Based on interactions with our customers and channel partners, we believe that the semiconductor inventory throughout the supply chain remains low and lead times are stretched for the industry. This supply constraint is further compounded by accelerating demand for electric vehicles, ADAS, energy infrastructure and factory automation and the increase of content in these applications.

根據與我們的客戶和渠道合作夥伴的互動，我們認為整個供應鏈的半導體庫存仍然很低，並且該行業的交貨時間很長。對電動汽車、ADAS、能源基礎設施和工廠自動化的需求加速以及這些應用內容的增加進一步加劇了這種供應限制。

During the fourth quarter, we saw an increase of approximately $600 million in committed revenue for our silicon carbide products, bringing our current committed revenue to over $2.6 billion through 2024. Over 70% of this committed revenue is for electric vehicle traction applications with the integrated end-to-end supply chain and market-leading efficiency of our silicon carbide products as our competitive advantage. To support the steep growth in our silicon carbide revenue over the next few years, we plan to more than quadruple the capacity of our substrate operations exiting 2022 and intend on making substantial investments in expanding our device and module capacity. In 2022, we expect our silicon carbide revenue to more than double year-over-year as we continue to ramp with our existing customers and begin shipments to new customers under our LTSAs.

在第四季度，我們的碳化矽產品的承諾收入增加了約 6 億美元，使我們目前的承諾收入到 2024 年超過 26 億美元。超過 70% 的承諾收入用於電動汽車牽引應用與集成我們碳化矽產品的端到端供應鍊和市場領先的效率是我們的競爭優勢。為了支持我們在未來幾年內碳化矽收入的急劇增長，我們計劃在 2022 年結束時將我們的基板業務產能增加四倍以上，並打算進行大量投資以擴大我們的設備和模塊產能。到 2022 年，我們預計我們的碳化矽收入將同比增長一倍以上，因為我們將繼續與現有客戶合作並開始根據我們的 LTSA 向新客戶發貨。

We remain on track to exit 2023 with a silicon carbide run rate of $1 billion per year. In addition, we continue to make progress on the 200-millimeter silicon carbide development program that we acquired from GTAT. In January, we received finished 200-millimeter thick wafers with [device yields] meeting our production targets. These wafers were manufactured using our full capabilities from (inaudible) to substrate all the way through our own fabs. Our silicon carbide modules are powering the recently announced Mercedes EQXX research prototype electric vehicle platform, which has a range of 620 miles on a single charge.

我們仍有望以每年 10 億美元的碳化矽運行率退出 2023 年。此外，我們從 GTAT 收購的 200 毫米碳化矽開發計劃繼續取得進展。 1 月份，我們收到了 200 毫米厚的成品晶圓，[器件良率] 達到了我們的生產目標。這些晶圓是使用我們從（聽不清）到基板的全部能力製造的，一直到我們自己的晶圓廠。我們的碳化矽模塊正在為最近發布的梅賽德斯 EQXX 研究原型電動汽車平台提供動力，該平台一次充電可行駛 620 英里。

We secured this design based on all around superior performance of our modules across efficiency, thermal conduction and switching. This win clearly demonstrates our technical leadership and end-to-end supply chain capabilities for silicon carbide. Our focus on power modules for alternative energy applications delivered a 42% year-over-year growth in our design funnel in 2021. we have signed LTSAs with key players in the solar inverter market, including the top 2 market share leaders.

我們基於我們的模塊在效率、熱傳導和開關方面的全面卓越性能確保了這一設計。此次勝利清楚地展示了我們在碳化矽方面的技術領先地位和端到端供應鏈能力。 2021 年，我們專注於替代能源應用的功率模塊，我們的設計漏斗同比增長 42%。我們已與太陽能逆變器市場的主要參與者簽署了 LTSA，其中包括前 2 大市場份額領導者。

We expect our renewable energy related revenue to grow by over 50% year-over-year in 2022 and expect the alternative energy market to be a long-term driver for our business as utility scale power plant installations are expected to grow worldwide to reduce the climate impact of fossil fuel-based power plants. On the intelligent sensing front, our automotive imaging revenue grew by more than 20% quarter-over-quarter and approximately 40% year-over-year as we continue to see momentum in advanced safety with new design wins.

我們預計我們的可再生能源相關收入將在 2022 年同比增長 50% 以上，並預計替代能源市場將成為我們業務的長期驅動力，因為預計全球公用事業規模的發電廠安裝量將增長以減少化石燃料發電廠的氣候影響。在智能傳感方面，我們的汽車成像收入環比增長超過 20%，同比增長約 40%，因為我們繼續看到新設計贏得先進安全的勢頭。

With consumers' desire for additional safety features and an improved driving experience, we are seeing increased penetration of sensing in cars, including image sensors and ultrasonic sensing. At the same time, content per car is growing with each camera attached to one of our PMICs. We are also seeing accelerating demand for our imaging products for industrial and factory automation, in which revenue grew by approximately 10% quarter-over-quarter and 43% year-over-year. Industrial customers are investing in automation at an increased pace to improve efficiency and to reduce volatility in operations due to wage inflation and labor shortages, onshoring and social distancing mandates.

隨著消費者對附加安全功能和改善駕駛體驗的渴望，我們看到汽車中的傳感技術越來越普及，包括圖像傳感器和超聲波傳感。同時，每輛汽車的內容隨著連接到我們的一個 PMIC 的每個攝像頭而增長。我們還看到對我們用於工業和工廠自動化的成像產品的需求不斷增加，其中收入環比增長約 10%，同比增長約 43%。工業客戶正在加快投資自動化，以提高效率並減少由於工資上漲和勞動力短缺、離岸外包和社會疏遠要求而導致的運營波動。

We have leveraged our experience in the automotive market to offer our industrial customers rugged, high resolution and high image quality sensors for the most demanding industrial applications. All of these execution vectors delivered a robust margin performance exceeding our target gross margin of 45% significantly ahead of schedule. This accelerated gross margin expansion was driven by a strong and accelerated execution in closing price-to-value discrepancy, cost reduction initiatives, a focused drive on ramping new products a deliberate intent to shift more capacity to products for our strategic markets and operational efficiencies across our manufacturing footprint, all consistent with the strategy outlined at our Analyst Day.

我們利用我們在汽車市場的經驗，為我們的工業客戶提供堅固、高分辨率和高圖像質量的傳感器，用於最苛刻的工業應用。所有這些執行向量都提供了強勁的利潤率表現，大大提前超過了我們 45% 的目標毛利率。毛利率的加速增長是由於在消除價格與價值的差異、成本降低計劃、集中推動新產品方面的強勁和加速執行、有意為我們的戰略市場和運營效率轉移更多產能的產品而推動的。我們的製造足跡，都與我們分析師日概述的戰略一致。

Along with making operational changes to drive the margin expansion, we are refining our execution in the channel to ensure that our partners are focused on driving growth in automotive and industrial end markets consistent with our strategy. Throughout the year, our team worked extremely hard to pull in the schedule for engineering and operations effort dedicated to margin improvements to offset some increased material costs we have incurred. We have worked to improve yields and ship more units into the automotive and industrial end markets, which deliver an improved margin profile for our business, and help support more of our customers' demand. In the fourth quarter, automotive and industrial grew 10% quarter-over-quarter to 63% of our revenue as compared to 61% in the third quarter, both delivering record quarters of $641 million and $522 million, respectively. In a supply-constrained environment, this growth came from the increased units we could ship and more importantly, from the strategic mix shift away from noncore, low-margin business that we intended to exit. In 2021, we walked away from $170 million of noncore business with an average gross margin of 20%.

除了進行運營變革以推動利潤增長外，我們還在改進我們在渠道中的執行，以確保我們的合作夥伴專注於推動汽車和工業終端市場的增長，這與我們的戰略相一致。在這一年中，我們的團隊非常努力地制定了工程和運營計劃，致力於提高利潤率，以抵消我們所產生的一些增加的材料成本。我們一直在努力提高產量並將更多產品運往汽車和工業終端市場，從而為我們的業務帶來更好的利潤率，並幫助支持更多客戶的需求。第四季度，汽車和工業部門的收入環比增長 10%，占我們收入的 63%，而第三季度為 61%，兩個季度分別創造了創紀錄的 6.41 億美元和 5.22 億美元。在供應受限的環境中，這種增長來自我們可以出貨的單位數量的增加，更重要的是，來自我們打算退出的非核心、低利潤業務的戰略組合轉變。 2021 年，我們放棄了 1.7 億美元的非核心業務，平均毛利率為 20%。

Now I will turn the call over to Thad to provide additional details on our financials and guidance. Thad?

現在，我將把電話轉給 Thad，以提供有關我們財務和指導的更多詳細信息。泰德？

Thanks, Hassane. I'll start off with providing an overview of our results for the full year of 2021 then step through the Q4 results and guidance for the first quarter of '22 and wrap up with an update to our long-term model. 2021 was an exceptional year as we transformed the company to drive sustainable performance and shareholder value.

謝謝，哈桑。我將首先概述我們 2021 年全年的業績，然後逐步介紹 22 年第一季度的第四季度業績和指導，最後更新我們的長期模型。 2021 年是不平凡的一年，因為我們對公司進行了轉型，以推動可持續的業績和股東價值。

We have pivoted to align our investments to the high-growth megatrends in automotive and industrial while implementing structural changes, capturing value for our differentiated portfolio and optimizing our manufacturing footprint to increase efficiency and improve our cost structure. These initiatives are translating into financial results as we achieved our record annual and quarterly revenue, gross margin, operating margin and cash flow.

我們已將我們的投資與汽車和工業的高增長大趨勢保持一致，同時實施結構變革，為我們的差異化投資組合獲取價值並優化我們的製造足跡，以提高效率並改善我們的成本結構。隨著我們實現創紀錄的年度和季度收入、毛利率、營業利潤率和現金流，這些舉措正在轉化為財務業績。

Our 2021 revenue was $6.74 billion, increasing 28.3% over 2020. Our automotive business increased 36% year-over-year, and our industrial revenue increased 33% as we continue to see content gains in each segment driven by automation, electrification and advanced safety. Our non-GAAP gross margins for the year improved 770 basis points to 40.4%, and we exited the year exceeding our 45% long-term target in Q4. Since embarking on our transformation journey a year ago, we have improved our non-GAAP gross margins by 1,080 basis points. 2021 operating income and free cash flow increased approximately 6x faster than revenue, with non-GAAP operating margin improving to 21.9% while free cash flow increased to $1.3 billion or 20% of revenue.

我們 2021 年的收入為 67.4 億美元，比 2020 年增長 28.3%。我們的汽車業務同比增長 36%，我們的工業收入增長 33%，因為我們繼續看到在自動化、電氣化和高級安全驅動的各個領域的內容增長.我們今年的非美國通用會計準則毛利率提高了 770 個基點至 40.4%，並且我們在今年第四季度超過了 45% 的長期目標。自一年前開始我們的轉型之旅以來，我們的非公認會計原則毛利率提高了 1,080 個基點。 2021 年營業收入和自由現金流的增長速度大約是收入的 6 倍，非公認會計準則營業利潤率提高到 21.9%，而自由現金流增加到 13 億美元或收入的 20%。

While we have had significant achievements over the last year, we are excited about the opportunities in front of us. Our design win funnel for intelligent power and sensing is expanding at a rapid rate, and we are securing additional capacity to support our growth from external partners and with selective internal investments for strategic products. From a margin perspective, we expect [mix] optimization and our fab lighter strategy to drive further expansion.

雖然我們在過去一年取得了重大成就，但我們對擺在我們面前的機會感到興奮。我們的智能電源和傳感設計獲勝漏斗正在快速擴展，我們正在確保額外的能力來支持我們從外部合作夥伴那裡獲得的增長，並通過對戰略產品的選擇性內部投資來支持我們的增長。從利潤率的角度來看，我們預計 [mix] 優化和我們的輕工廠戰略將推動進一步擴張。

Our long-term supply agreements are providing increased visibility for revenue growth, and we are confident that the structural changes and decisions we made last year solidified our baseline to allow for sustainable margin expansion over the long term. Consistent with our fab lighter strategy, we have taken the first steps towards rationalizing our manufacturing footprint by entering into a definitive agreement for the sale of our 6-inch fab in Belgium. This transaction provides our employees with continued deployment and growth opportunities while allowing ON Semi to transition product to other manufacturing sites in an orderly manner.

我們的長期供應協議為收入增長提供了更高的可見性，我們相信我們去年做出的結構性變化和決策鞏固了我們的基線，以實現長期可持續的利潤率擴張。與我們的晶圓廠打火機戰略一致，我們已通過簽訂最終協議出售我們在比利時的 6 英寸晶圓廠，邁出了合理化製造足蹟的第一步。此次交易為我們的員工提供了持續部署和增長的機會，同時允許 ON Semi 有序地將產品轉移到其他製造基地。

By transitioning production to more efficient fabs within our network, we will eliminate fixed cost and lower unit costs while ensuring a consistent supply of products to our customers. We expect to close this divestiture in the first quarter of 2022, and the savings will be realized over 1 to 3 years as we exit the Belgium site.

通過將生產轉移到我們網絡內更高效的晶圓廠，我們將消除固定成本並降低單位成本，同時確保為客戶提供穩定的產品供應。我們預計將在 2022 年第一季度完成這項資產剝離，當我們退出比利時工廠時，節省的資金將在 1 到 3 年內實現。

Turning to the results for the fourth quarter. As I noted, Q4 was another quarter of record results. Total revenue for the fourth quarter was $1.85 billion, an increase of 28% over the fourth quarter of 2020 and 6% quarter-over-quarter. The sequential increase in revenue was driven by units shipped increasing 5.7% sequentially and favorable mix and pricing across all end markets. Revenue from both Intelligent Power and Intelligent Sensing was at record levels, while revenue from our strategic end markets of automotive and industrial increased [sequentially] 11% and 9%, respectively. Auto and industrial was 63% of total revenue as compared to 59% in the fourth quarter of 2020.

轉向第四季度的結果。正如我所指出的，第四季度是另一個創紀錄的四分之一。第四季度總收入為 18.5 億美元，比 2020 年第四季度增長 28%，環比增長 6%。收入的環比增長是由出貨量環比增長 5.7% 以及所有終端市場的有利組合和定價推動的。智能電源和智能傳感的收入均創歷史新高，而我們的汽車和工業戰略終端市場的收入分別[依次]增長了 11% 和 9%。汽車和工業佔總收入的 63%，而 2020 年第四季度為 59%。

Turning to the business units. Revenue for the Power Solutions Group or PSG was $953.4 million, an increase of 33% year-over-year. Revenue for the Advanced Solutions Group, or ASG, was $647.3 million, an increase of 24% year-over-year. Revenue for Intelligent Sensing Group, or ISG, for the fourth quarter was $245.4 million, an increase of 18% year-over-year.

轉向業務部門。 Power Solutions Group 或 PSG 的收入為 9.534 億美元，同比增長 33%。 Advanced Solutions Group (ASG) 的收入為 6.473 億美元，同比增長 24%。智能傳感集團（ISG）第四季度的收入為 2.454 億美元，同比增長 18%。

GAAP gross margins for the fourth quarter was 45.1%, and non-GAAP gross margin was 45.2%, a 370 basis point improvement quarter-over-quarter. The key contributors to our margin expansion have been favorable mix shift to higher margin and strategic products, elimination of price-to-value discrepancies in our portfolio and improved efficiencies in our manufacturing operations. Over the last year, we have exited approximately [$170 million] of noncore revenue at an average gross margin of 20% and allocated this capacity to strategic products with accretive gross margins.

第四季度 GAAP 毛利率為 45.1%，非 GAAP 毛利率為 45.2%，環比提高 370 個基點。我們利潤增長的關鍵因素是向更高利潤和戰略產品的有利組合轉變、消除我們產品組合中的價格與價值差異以及提高我們的製造運營效率。去年，我們以 20% 的平均毛利率退出了大約 [1.7 億美元] 的非核心收入，並將這一產能分配給了毛利率增加的戰略產品。

Our factory utilization was 81%, up slightly from the Q3 level of 80%, and we expect utilization to remain approximately at this level in Q1. We also achieved record quarterly GAAP and non-GAAP operating margins of 26% and 28.6%, respectively, in the fourth quarter, again achieving our long-term model. Earnings per share for the fourth quarter was $0.96 and non-GAAP EPS was $1.09 per diluted share as compared to $0.35 in the fourth quarter of 2020 and $0.87 in Q3. We are very proud of our teams for having achieved the highest ever quarterly EPS reported by the company. So now let me give you some additional numbers for your models. GAAP operating expenses for the fourth quarter were $352 million as compared to $330 million in the fourth quarter of 2020.

我們的工廠利用率為 81%，略高於第三季度的 80%，我們預計第一季度的利用率將保持在該水平左右。我們還在第四季度實現了創紀錄的季度 GAAP 和非 GAAP 營業利潤率，分別為 26% 和 28.6%，再次實現了我們的長期模式。第四季度每股收益為 0.96 美元，非公認會計原則每股攤薄收益為 1.09 美元，而 2020 年第四季度為 0.35 美元，第三季度為 0.87 美元。我們為我們的團隊實現了公司報告的有史以來最高的季度每股收益感到非常自豪。因此，現在讓我為您的模型提供一些額外的數字。第四季度的 GAAP 運營費用為 3.52 億美元，而 2020 年第四季度為 3.3 億美元。

Non-GAAP operating expenses were $306 million as compared to $292 million in the quarter a year ago. Variable compensation driven by our strong performance, partially offset by cost optimization measures, contributed to year-over-year increase in operating expenses. We expect to maintain our non-GAAP operating expenses of approximately 17% of revenue, consistent with our target model.

非美國通用會計準則運營費用為 3.06 億美元，而去年同期為 2.92 億美元。由我們強勁的業績驅動的可變薪酬，部分被成本優化措施所抵消，導致運營費用同比增長。我們預計將保持我們的非公認會計原則運營費用佔收入的約 17%，與我們的目標模型一致。

We intend to offset the impact of wage inflation on operating expenses through higher efficiency and reallocation of resources to drive growth and margin expansion. Our GAAP diluted share count was 445.3 million shares, and our non-GAAP diluted share count was 438.4 million (inaudible) Please note that we have an updated reference table on the Investor Relations section of our website to assist you with calculating our diluted share count in various share prices.

我們打算通過提高效率和重新分配資源來推動增長和利潤率擴張，從而抵消工資上漲對運營費用的影響。我們的 GAAP 稀釋股數為 4.453 億股，我們的非 GAAP 稀釋股數為 4.384 億股（聽不清） 請注意，我們網站的投資者關係部分有更新的參考表，以幫助您計算我們的稀釋股數在不同的股價中。

Turning to the Q4 balance sheet. Cash and cash equivalents was $1.3 billion after payment of [$416 million] for the GSAT acquisition in Q4. We had $1.97 billion undrawn on our revolver. Cash from operations was $627 million, and free cash flow was $457 million or approximately 25% of revenue. Capital expenditures during the fourth quarter were $169.6 million, which equates to a capital intensity of 9%. For the full year 2021, capital intensity was 6.6%. As we indicated previously, we are directing a significant portion of our capital expenditures towards enabling our 300-millimeter capabilities at the East Fishkill fab and the expansion of silicon carbide capacity. This increase is in line with the higher capital intensity in the near term, as mentioned in our Analyst Day.

轉向第四季度的資產負債表。在第四季度為 GSAT 收購支付 [4.16 億美元] 後，現金和現金等價物為 13 億美元。我們的左輪手槍有 19.7 億美元未動用。運營現金為 6.27 億美元，自由現金流為 4.57 億美元，約佔收入的 25%。第四季度的資本支出為 1.696 億美元，相當於 9% 的資本密集度。 2021 年全年，資本密集度為 6.6%。正如我們之前所指出的，我們將很大一部分資本支出用於在 East Fishkill 工廠實現 300 毫米產能和擴大碳化矽產能。正如我們的分析師日所述，這一增長與近期較高的資本密集度一致。

Accounts receivable was $809 million, resulting in DSO of 40 days. Inventory increased $52 million sequentially to $1.4 billion and days of inventory increased 5 days to 124 days. The increase in inventory was driven primarily by additional build of bridge inventory to support the fab transition. Distribution inventory increased [$50 million] to 7.3 weeks from 6.8 weeks in Q3. This slight increase was driven by timing of shipments late in the quarter, weeks of inventory returned to Q3 levels within the first 2 weeks of Q1. Total debt was $3.1 billion and our net leverage is now under 1x.

應收賬款為 8.09 億美元，DSO 為 40 天。庫存連續增加 5200 萬美元至 14 億美元，庫存天數增加 5 天至 124 天。庫存的增加主要是由於增加了橋接庫存以支持晶圓廠過渡。分銷庫存從第三季度的 6.8 週增加 [5000 萬美元] 至 7.3 週。這一小幅增長是由本季度末的發貨時間推動的，庫存週數在第一季度的前兩週內恢復到第三季度的水平。總債務為 31 億美元，我們的淨槓桿現在低於 1 倍。

Turning to guidance for the fourth quarter. The table detailing our GAAP and non-GAAP guidance is provided in the press release related to our fourth quarter results. Let me now provide you key elements of our non-GAAP guidance for the fourth quarter. Based on current market trends and booking levels, we believe demand will outpace supply for much of 2022, and we continue to work with our strategic customers to ensure long-term uninterrupted supply. We continue to increase supply through operational efficiencies, selective investment partners to attain additional capacity.

轉向第四季度的指導。與我們第四季度業績相關的新聞稿中提供了詳細說明我們的 GAAP 和非 GAAP 指導的表格。現在讓我為您提供我們第四季度非公認會計準則指導的關鍵要素。根據當前的市場趨勢和預訂水平，我們認為在 2022 年的大部分時間裡，需求將超過供應，我們將繼續與我們的戰略客戶合作，以確保長期不間斷的供應。我們繼續通過提高運營效率、選擇性投資合作夥伴來增加供應，以獲得額外的產能。

Based on current bookings trends, backlog levels, -- we anticipate that revenue for the first quarter will be in the range of $1.85 billion to $1.95 billion. We expect non-GAAP gross margins between 45.5% and 47.5%. This includes share-based compensation of [$3.4 million]. We expect total non-GAAP operating expenses of $298 million to $313 million, including share-based compensation of $17.4 million.

根據當前的預訂趨勢、積壓水平，我們預計第一季度的收入將在 18.5 億美元至 19.5 億美元之間。我們預計非美國通用會計準則毛利率在 45.5% 至 47.5% 之間。這包括 [340 萬美元] 的股權補償。我們預計非美國通用會計準則運營費用總額為 2.98 億美元至 3.13 億美元，其中包括 1740 萬美元的股票薪酬。

We anticipate our non-GAAP OIE will be $21 million to $25 million, and this results in non-GAAP earnings per share in the range of $0.98 to $1.10. As we have guided in the past, our non-GAAP tax will increase starting in Q1 from our historical rate of 6% to approximately 17.5% as we have substantially utilized our NOL attributes. This change accounts for approximately $0.14 of EPS at the midpoint of our guidance for the first quarter. We expect total capital expenditures of $150 million to $170 million in the first quarter. As we indicated at our Analyst Day, our capital intensity in the near term will be higher as we ramp up silicon carbide production and invest in 300-millimeter capabilities.

我們預計我們的非 GAAP OIE 將在 2100 萬美元到 2500 萬美元之間，這導致非 GAAP 每股收益在 0.98 美元到 1.10 美元之間。正如我們過去所指導的那樣，我們的非公認會計原則稅將從第一季度開始從我們的歷史稅率 6% 增加到大約 17.5%，因為我們已經充分利用了我們的 NOL 屬性。在我們第一季度指導的中點，這一變化約佔每股收益 0.14 美元。我們預計第一季度的總資本支出為 1.5 億美元至 1.7 億美元。正如我們在分析師日所指出的那樣，隨著我們提高碳化矽產量並投資於 300 毫米產能，我們近期的資本密集度將會更高。

Our non-GAAP diluted share count for the first quarter is expected to be approximately 441 million shares. As I wrap up, I'd like to shift gears to address our long-term model. Our Q4 non-GAAP gross margin of 45.2% exceeded our gross margin target ahead of our anticipated time line through an acceleration of our expansion initiatives and structural changes. As such, we are raising our 2025 targeted gross margin to 48% to 50% which will be primarily driven by favorable mix as we phase out of low-margin noncore products and ramp new products in our strategic end markets. We'll also continue executing on our fab lighter strategy to reduce our fixed cost structure and overall product costs across the portfolio as we exit subscale fabs over a multiyear period.

我們第一季度的非公認會計原則稀釋後的股票數量預計約為 4.41 億股。在我結束的時候，我想換個方向來解決我們的長期模型。通過加速我們的擴張計劃和結構變化，我們的第四季度非公認會計原則毛利率為 45.2%，超過了我們預期的時間線的毛利率目標。因此，我們將 2025 年的目標毛利率提高至 48% 至 50%，這將主要受到有利組合的推動，因為我們將逐步淘汰低利潤率的非核心產品並在我們的戰略終端市場推出新產品。隨著我們在多年期間退出小規模晶圓廠，我們還將繼續執行我們的晶圓廠打火機戰略，以降低我們的固定成本結構和整個產品組合的整體產品成本。

To provide a framework for this expansion, we expect 2022 gross margins in the range of 46.5% to 47.5% based on our visibility today. So our new long-term non-GAAP model is as follows: gross margins of 48% to 50%; OpEx of 17%; and operating income of 31% to 33%, an increase of 300 to 500 basis points over our previous model of 28%. We believe our early success in our transformation initiatives has positioned ON Semi to drive sustained and long-term revenue growth and margin expansion.

為了為這種擴張提供一個框架，根據我們今天的知名度，我們預計 2022 年的毛利率在 46.5% 至 47.5% 之間。所以我們新的長期非GAAP模型如下：毛利率48%到50%； 17% 的運營支出；營業收入為 31% 至 33%，比我們之前的模型 28% 增加 300 至 500 個基點。我們相信，我們在轉型計劃中的早期成功使 ON Semi 能夠推動持續和長期的收入增長和利潤率擴張。

These results and outlook are only possible with the dedication of our worldwide team focused on execution and delivery of exceptional value for our customers. With that, I'd like to start the Q&A. I'll turn the call back over to Rob to open the line for questions.

這些結果和前景只有在我們的全球團隊專注於為客戶執行和交付卓越價值的奉獻精神下才能實現。有了這個，我想開始問答。我會將電話轉回給 Rob 以打開電話提問。

(Operator Instructions)

（操作員說明）

And your first question comes from the line of Ross Seymore from Deutsche Bank.

您的第一個問題來自德意志銀行的 Ross Seymore。

Congratulations on the results. I guess is on the first question, Thad, is on the revenue side. You talked a lot about the demand exceeding supply, a lot of good design wins and LTSAs, et cetera. I wanted to dive into the things you're walking away from.

祝賀結果。我想是關於第一個問題，Thad，是在收入方面。你談了很多關於供不應求、很多好的設計勝利和 LTSA 等等。我想深入了解你正在遠離的事物。

I think you said last year, you got out of about $170 million of business. It seems like there's about $600 million more coming. So Thad, you gave a good outlook on the gross margin for the year. I know you're not going to guide revenue every quarter for this year. But I wondered how that incremental exiting process is going to hit and then kind of at what pace we should be thinking that?

我想你去年說過，你失去了大約 1.7 億美元的業務。似乎還有大約 6 億美元即將到來。所以泰德，你對今年的毛利率給出了很好的展望。我知道你不會指導今年每個季度的收入。但我想知道增量退出過程將如何發揮作用，然後我們應該以何種速度思考？

Yes. Let me start with the second part of your question there on the exit. We've exited $170 million in 2021. So as we look into '22, we think we will exit more of that in the second half of the year just based on the environment that we see today. So we think there's another piece. But as we said, this exit will take 3-plus years to get out completely of that entire 10% to 15% that we said we exit. But we really think it's back-end loaded.

是的。讓我從出口處的問題的第二部分開始。我們在 2021 年退出了 1.7 億美元。因此，當我們展望 22 年時，我們認為僅根據我們今天看到的環境，我們將在下半年退出更多的資金。所以我們認為還有另一部分。但正如我們所說，這次退出將需要 3 年多的時間才能完全擺脫我們所說的退出的全部 10% 到 15%。但我們真的認為它是後端加載的。

Got it. And then the gross margin news, I think, is the news of the day, whether it was the quarter to guide or the long-term model update.

知道了。然後毛利率新聞，我認為，是當天的新聞，無論是指導季度還是長期模型更新。

So I just wanted to understand a little bit more deeply, what was the surprise? Were you guys just conservative back in August? It wasn't that long ago and you've already hit the target. So what's going better than expected? And I think some people might believe that there's some cyclical tailwinds that might not persist? I know you seem to disagree with that, but a breakdown of what surprised you and how much is structural will be helpful.

所以我只是想更深入地了解一點，驚喜是什麼？你們八月份只是保守嗎？不久前，你已經達到了目標。那麼有什麼比預期更好的呢？而且我認為有些人可能認為存在一些可能不會持續的周期性順風？我知道您似乎不同意這一點，但是對您感到驚訝的事情以及結構性的程度進行分解將是有幫助的。

Yes. This is Hassane. Look, we had a plan. The plan happened faster than we thought. Obviously, our plan was tied to a lot of the operational efficiencies and the self-help that we've done. We were able to pull in a lot of it given the demand environment. We were able to much faster shift to our strategic products. As you saw, auto and industrial, which for us drive a higher margin as part of the mix shift have grown sequentially and for the year and outpaced the growth of the other markets that we are walking away from to have that capacity to be able to allocate to our strategic markets. And of course, we've been on a trajectory of bridging the price-to-value discrepancies. So we've been able to close a lot of that, mostly to offset our rise in costs.

是的。這是哈桑。看，我們有一個計劃。計劃發生得比我們想像的要快。顯然，我們的計劃與許多運營效率和我們所做的自助有關。鑑於需求環境，我們能夠吸收很多。我們能夠更快地轉向我們的戰略產品。如您所見，作為混合轉變的一部分，汽車和工業對我們來說推動了更高的利潤率，它們在一年內連續增長，並且超過了我們正在放棄的其他市場的增長，以便擁有能夠分配到我們的戰略市場。當然，我們一直在彌合價格與價值之間的差異。所以我們已經能夠關閉很多，主要是為了抵消我們的成本上升。

So all of these have been part of the plan, but the macro allowed us to accelerate them. because of the demand environment, we're able to walk away from business and move the capacity to a better mix shift aligned with our stated strategy. So that's what accelerated. It's not about conservative. It's about the unknown and the disruptions that we've been seeing in 2021, but the team pulled together, whether it's from improved yield that drove more units. All of these are sustainable because the mix shift is not related to a market. All markets are up, but we are choosing what to support aligned with our long-term supply agreements and those extend beyond the next few years, and that gives us the visibility and the sustainability of those results.

所以所有這些都是計劃的一部分，但宏觀允許我們加速它們。由於需求環境，我們能夠擺脫業務並將產能轉移到與我們既定戰略相一致的更好的混合轉變。所以這就是加速。這與保守無關。這是關於我們在 2021 年看到的未知和中斷，但團隊齊心協力，無論是提高產量推動了更多單位。所有這些都是可持續的，因為混合轉變與市場無關。所有市場都在上漲，但我們正在選擇與我們的長期供應協議相一致的支持內容，這些協議將延伸到未來幾年之後，這使我們能夠看到這些結果並具有可持續性。

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

下一個問題來自花旗的 Chris Danely。

Congrats on another good result and guidance.

祝賀另一個好結果和指導。

I guess on the gross margin guidance going forward, it looks kind of flattish for the time being. Can you just talk about the puts and the takes? What's going to be pushing those up? And then also what's going to be keeping a lid on them? Is it the material cost or something else?

我想在未來的毛利率指導上，它暫時看起來有點平淡。你能談談看跌期權嗎？是什麼推動了這些？然後還有什麼會限制他們？是材料成本還是其他？

Yes, Chris, this is Thad. There's a number of elements in there, and you kind of hit on it. So we are expecting additional input costs going up. We have been successful in passing those on to the customers, but we do expect that happening. And as Hassane said in the previous response, we pulled in a lot of the acceleration of the gross margin initiatives. We think there's more here. I think our biggest challenge is we've gotten a lot of operational efficiencies here. And can we just get more throughput out of our manufacturing footprint. But we do see improvement. If you look at the guidance that I put out for the year, you see improvement through the year.

是的，克里斯，這是泰德。裡面有很多元素，你有點喜歡它。因此，我們預計額外的投入成本會上升。我們已經成功地將這些傳遞給客戶，但我們確實希望這種情況發生。正如 Hassane 在之前的回應中所說，我們推動了毛利率計劃的很多加速。我們認為這裡還有更多。我認為我們最大的挑戰是我們在這裡獲得了很多運營效率。我們能否從我們的製造足跡中獲得更多的吞吐量。但我們確實看到了改善。如果您查看我為這一年發布的指導，您會看到全年的改進。

And obviously, with our long-term model of the [48% to 50%], we don't think we're done.

顯然，對於我們 [48% 到 50%] 的長期模型，我們認為我們還沒有完成。

And for my follow-up, can you just be a little more specific on the impact and timing of the Fishkill fab from a, I guess, a margin impact and the capacity impact as well?

對於我的後續行動，您能否更具體地談談 Fishkill 晶圓廠的影響和時機，我猜是利潤率影響和產能影響？

Yes. So we take ownership in early '23. At that time, we have been running production in there. We'll continue to increase production in there. And then there is a period of time where we continue to ramp up and GLOBALFOUNDRIES ramps down. So during that time, there's a little bit of a headwind as we're providing some foundry services (inaudible) foundries until we ramp up. So you can think about a little bit of a headwind for a couple of years there, but there is an orderly transition between the 2 of them. So that is all baked into our long-term plan as well, the long-term model.

是的。因此，我們在 23 年初獲得所有權。那時，我們一直在那裡進行生產。我們將繼續在那裡增加產量。然後有一段時間，我們繼續增長，格芯下降。因此，在那段時間裡，我們正在提供一些代工服務（聽不清）代工廠，直到我們擴大規模，所以會有一點逆風。因此，您可以在那裡考慮幾年的逆風，但兩者之間有一個有序的過渡。因此，這也都納入了我們的長期計劃，即長期模型。

Your next question comes from the line of Vivek Arya from Bank of America Securities.

您的下一個問題來自美國銀行證券公司的 Vivek Arya。

Hassane, I'm curious, what's your visibility of inventory of semiconductor components at auto OEMs and Tier 1s? Just from an industry perspective, right, there still seems to be a delta between auto production and semiconductor industry shipments. Is that all mix or pricing? Just conceptually, what are you seeing out there? And what is the right way to think about the sustainable content delta when we look at the automotive production improving this year?

Hassane，我很好奇，您對汽車 OEM 和一級供應商半導體組件庫存的了解程度如何？只是從行業的角度來看，對，汽車生產和半導體行業的出貨量之間似乎仍然存在差異。這都是混合還是定價？只是從概念上講，你在外面看到了什麼？當我們看到今年汽車生產的改善時，思考可持續內容增量的正確方法是什麼？

Yes. Look, the delta is pretty straightforward. The delta between units shipped in automotive and semiconductor is purely based on the mix that our customers are building. When we've been throughout 2021 in a supply constraint, we remain in that same supply constraint in -- through 2022 into 2023. So therefore, our customers are doing kind of what we're doing.

是的。看，三角洲非常簡單。汽車和半導體出貨量之間的差異純粹基於我們的客戶正在構建的組合。當我們在整個 2021 年一直處於供應限制狀態時，我們將在 2022 年到 2023 年期間保持同樣的供應限制。因此，我們的客戶正在做我們正在做的事情。

They're moving production to their strategic and high-value product line, which for semiconductor translate into more content. When you have premium vehicles being built, they historically and even today, have much higher content to the level of 2 to 3x more content of semiconductors per vehicle. That's what you see the discrepancy between the 2. That's a healthy discrepancy because I've always talked about content being the biggest driver for us regardless of what the SAAR does. 2021 is exactly that. Now you can talk about what the long-term implications of this. I don't see that being any different. We've always guided automotive being much higher than SAAR and that's related because electrification is happening. You've seen those announcements from a lot of the OEMs, where they are doubling down on EVs. That drives much higher content for us in the future than even it is today. Safety. I talked about more and more sensing going into vehicles, and that drives a lot of our cross-selling as well between our sensing and our PMIC. So all of these are driving a higher growth of semiconductor than your unit growth was SAAR. So it's very reasonable of what the results are this year and what we're looking at for 2022. So I don't see that as just a short-term thing because the macro trends extend beyond the next 3 years.

他們正在將生產轉移到他們的戰略和高價值產品線，這對於半導體來說會轉化為更多的內容。如果您正在製造高級汽車，它們在歷史上甚至今天都具有更高的含量，每輛汽車的半導體含量要高出 2 到 3 倍。這就是你看到的兩者之間的差異。這是一個健康的差異，因為我一直在談論內容是我們最大的驅動力，無論 SAAR 做什麼。 2021年正是如此。現在你可以談談這有什麼長期影響。我不認為這有什麼不同。我們一直認為汽車要遠高於 SAAR，這是相關的，因為電氣化正在發生。您已經看到許多原始設備製造商的這些公告，他們在電動汽車上加倍下注。這在未來為我們帶來了比今天更高的內容。安全。我談到越來越多的傳感進入車輛，這也推動了我們在傳感和 PMIC 之間的大量交叉銷售。因此，所有這些都推動了半導體的增長，高於你的單位增長是 SAAR。所以今年的結果和我們對 2022 年的展望是非常合理的。所以我不認為這只是短期的事情，因為宏觀趨勢會超出未來 3 年。

All right. And so for my follow-up, also interested in your views on the silicon carbide opportunity. So you gave us a few numbers about the exit run rate and the long-term agreements you were signing. And where having investors are trying to get their arms around is we hear of a lot of big numbers and pipeline from some of your U.S. competitors, some of the European competitors. Is this a case of just a rising tide, so there can be 4, 5, 6 successful suppliers? Is there going to be some kind of differentiation between suppliers because everyone is reporting very large pipeline. So I'm curious, what is ON's differentiation? And does it change your long-term CapEx forecast? Because I saw that you updated the margin forecast, but you get free cash flow forecast the same.

好的。因此，對於我的後續行動，也對您對碳化矽機會的看法感興趣。所以你給了我們一些關於退出運行率和你正在簽署的長期協議的數字。我們從一些美國競爭對手和一些歐洲競爭對手那裡聽到了很多大數據和管道，讓投資者試圖得到他們的支持。這只是一個漲潮的案例，所以可以有4、5、6個成功的供應商嗎？供應商之間是否會有某種差異，因為每個人都在報告非常大的管道。所以我很好奇，ON的差異化是什麼？它會改變您的長期資本支出預測嗎？因為我看到你更新了利潤率預測，但你得到的自由現金流預測是一樣的。

So let me just -- I want to highlight some difference between what I talk about and what some of my peers talk about. I don't talk about funnel or pipeline. I'm talking about committed revenue, which is the output of the funnel fully yielded. Committed revenue is what I labeled it.

所以讓我來——我想強調一下我所談論的內容與我的一些同行所談論的內容之間的一些區別。我不談論漏斗或管道。我說的是承諾收入，即完全產生的漏斗輸出。承諾收入是我給它貼上的標籤。

That is more certain and more visibility than the game of big numbers of funnel disclosures. I don't disclose funnel or pipeline or whatever we want to label it. So the comments on the numbers, the big numbers I gave are committed revenue under LTSAs that we are building our supply chain in order to service starting -- we exited 2021, and I said we're going to be more than doubling in 2022. That's where the committed revenue comes in. Now as far as what that's going to look like in the industry. Look, there's a lot of demand out there, a lot of investments from our customers going into the silicon carbide for electric vehicles.

這比大量漏斗披露的遊戲更確定、更可見。我不會透露漏斗或管道或我們想要標記的任何內容。所以對這些數字的評論，我給出的大數字是我們正在建立我們的供應鏈以便開始服務的 LTSA 下的承諾收入——我們退出了 2021 年，我說我們將在 2022 年增加一倍以上。這就是承諾收入的來源。現在就行業中的情況而言。看，那裡有很多需求，我們的客戶大量投資於電動汽車的碳化矽。

Is it going to be 6 players or so? I don't know. I know we're going to be in the top based on our investments and based on the results of our technology performance on efficiency, but also more importantly, the supply assurance that we're able to give our customers. When you want to double the revenue and your flagship customers are depending on you having supply assurance and controlling rolls all the way to wafers is a competitive advantage. And not a lot can claim that. And I'm happy that we have closed the GTAT and we're performing very well. We're going to be expanding the GTAT capability throughout 2022 in order to support those committed revenues that I mentioned.

會是6個左右的玩家嗎？我不知道。我知道，基於我們的投資和基於我們的技術性能對效率的結果，我們將處於領先地位，但更重要的是，我們能夠為客戶提供供應保證。當您想將收入翻倍並且您的旗艦客戶依賴於您的供應保證和控制輥一直到晶圓時，這是一種競爭優勢。並沒有很多人可以聲稱這一點。我很高興我們已經結束了 GTAT，我們的表現非常好。我們將在整個 2022 年擴展 GTAT 功能，以支持我提到的那些承諾收入。

Your next question comes from the line of Toshiya Hari from Goldman Sachs.

您的下一個問題來自高盛的 Toshiya Hari。

Congrats on the strong results. I had 2 as well. Curious how you're thinking about full year '22 revenue growth at this point? I think 3 months ago, you had guided us to think about '22 as a year where you guys undergo the market just given some of the dynamics that are ongoing from a portfolio optimization standpoint. Is that still the case? And I asked the question because you guys talked about obviously, the strong design win funnel, the improving supply backdrop. And if we take the midpoint of your Q1 guidance, Q1 revenue is going to be up 28%. So just curious how you're thinking about the full year.

恭喜取得了不錯的成績。我也有2個。好奇您現在如何看待 22 年全年的收入增長？我認為 3 個月前，您曾指導我們將 22 年視為你們經歷市場的一年，只是考慮到從投資組合優化的角度來看正在發生的一些動態。還是這樣嗎？我問這個問題是因為你們顯然談到了強大的設計贏漏斗，不斷改善的供應背景。如果我們採用第一季度指導的中點，第一季度收入將增長 28%。所以只是好奇你如何看待全年。

Yes, Toshi, we don't guide for the full year. I'll give you a little bit of a framework to work on, though. One of the previous calls or answers questions was around the exit in of the business that I said would be back-half loaded.

是的，Toshi，我們不指導全年。不過，我會給你一些框架。之前的電話或回答問題之一是關於退出業務的，我說這將是半負荷的。

I think when we look at the full year, taking that into consideration, we're probably growing around market, maybe slightly above.

我認為，考慮到這一點，當我們回顧全年時，我們可能正在圍繞市場增長，可能略高於市場。

Got it. That's helpful. And then as my follow-up on that last point, Thad, the $500 million or so in revenue that you'll be exiting, I guess, over the next couple of years. How should we think about the gross margin profile on that part of the business. I think the $170 million that you've already exited, you talked about a 20% gross margin profile. Should we be thinking about a higher gross margin profile given the strong market backdrop?

知道了。這很有幫助。然後作為我對最後一點的跟進，泰德，我猜你將在未來幾年內退出大約 5 億美元的收入。我們應該如何考慮這部分業務的毛利率。我認為你已經退出的 1.7 億美元，你談到了 20% 的毛利率。鑑於強勁的市場背景，我們是否應該考慮提高毛利率？

Yes, it is today. Last quarter, we talked about the $100 million that we [exited at 15%]. Now that's up to $170 million at a combined gross margin of 20%. So if you think about that incremental $70 million, it's about a 25% gross margin today. So the next piece that we're going to walk away from is in that range is slightly higher, but the challenge is when the market comes back, that's the margin that's going to drop fast if we continue maintain that. So as we exit that, we'll swap that out for more accretive margins. But today, yes, it's slightly ahead of or slightly above that 25% that I just talked about.

是的，就是今天。上個季度，我們談到了我們 [以 15% 退出] 的 1 億美元。現在，這高達 1.7 億美元，總毛利率為 20%。因此，如果您考慮增加的 7000 萬美元，那麼今天的毛利率約為 25%。因此，我們將要放棄的下一個部分在該範圍內略高，但挑戰是當市場回歸時，如果我們繼續保持這一點，那麼利潤率將會快速下降。因此，當我們退出時，我們將把它換成更多的利潤。但是今天，是的，它略高於或略高於我剛才談到的 25%。

Your next question comes from the line of Matt Ramsey from Cowen.

您的下一個問題來自 Cowen 的 Matt Ramsey。

This is Josh Buchalter on behalf of Matt. In the prepared remarks, you gave some helpful color on the unit growth. I was wondering as we think about the margins, is there anything you can give us to help us understand how much is being lifted by pricing versus the mix shifts that you previously outlined? And when I asked about pricing, I mean for the overall market.

這是代表馬特的喬什·布查爾特。在準備好的評論中，您為單位增長提供了一些有用的顏色。當我們考慮利潤率時，我想知道，您有什麼可以幫助我們了解定價與您之前概述的混合變化相比提升了多少？當我問及定價時，我指的是整個市場。

Yes. So in our prepared remarks, we really kind of broke it down into favorable mix, pricing and manufacturing optimization in terms of just getting more out and increasing our capacity to reduce our manufacturing costs. That's really the Pareto, if you think about the sequence of what is driving the gross margin improvement. And that's what we continue to see as we go forward. We think the favorable mix, as we swap out of this low-margin, noncore business, we focus more on auto and industrial which drives a higher gross margin. That's the primary driver of gross margin expansion. And then obviously, the manufacturing footprint going forward will be the next piece.

是的。因此，在我們準備好的評論中，我們確實將其分解為有利的組合、定價和製造優化，以提高我們的生產能力以降低製造成本。如果您考慮推動毛利率提高的順序，那真的是帕累托。這就是我們在前進的過程中繼續看到的。我們認為有利的組合，當我們放棄這個低利潤的非核心業務時，我們將更多地關注汽車和工業，這推動了更高的毛利率。這是毛利率擴張的主要驅動力。然後很明顯，未來的製造足跡將是下一個部分。

That's helpful. And then within your silicon carbide business, the size of your design wins continue to come in very strong. I was wondering within your broader high-voltage portfolio, are you also seeing share gains in your IGBTs, which have typically been dominated by some of your peers over in Europe and Asia?

這很有幫助。然後在您的碳化矽業務中，您的設計獲勝規模繼續非常強勁。我想知道在你們更廣泛的高壓產品組合中，你們是否也看到了你們的 IGBT 的份額增長，這通常由你們在歐洲和亞洲的一些同行主導？

Yes, this is Hassane. The answer is yes. We are seeing an uptick. Obviously, the LTSA is a long-term supply agreement that I mentioned, focusing on silicon carbide. We do have long-term supply agreements for IGBT. Those are net increases from our baseline. Therefore, I would consider those share gains away from some of our peers that have dominated that market. So we do see the uptick in both in our LTSAs. So you can think about it as ramping as well over the next few years into those LTSAs.

是的，這是哈桑。答案是肯定的。我們看到了上升趨勢。顯然，LTSA 是我提到的一項長期供應協議，重點是碳化矽。我們確實有 IGBT 的長期供應協議。這些是我們基線的淨增長。因此，我認為這些份額收益遠離我們一些主導該市場的同行。因此，我們確實看到我們的 LTSA 中兩者都有所上升。因此，您可以將其視為在接下來的幾年中逐漸進入這些 LTSA。

Your next question comes from the line of Harsh Kumar from Piper Sandler.

您的下一個問題來自 Piper Sandler 的 Harsh Kumar。

First of all, congratulations on a very stunning turnaround. Hassane, you've gotten pretty deep into the silicon carbide market, making the acquisition of GTAT. I was curious, but now the emphasis on silicon carbide on for, call it, 6 to 9 months to a year. Have there been any surprises, whether good ones or bad ones. I'd be curious about your color on it.

首先，祝賀我們取得了非常驚人的轉變。哈桑，你已經深入碳化矽市場，收購了 GTAT。我很好奇，但現在對碳化矽的重視，稱之為，6 到 9 個月到一年。有沒有什麼驚喜，不管是好是壞。我很好奇你上面的顏色。

Look, there have been surprises. I would say the surprises are on the positive side. If you recall back in my first earnings, I was very bullish on the company's capabilities on silicon carbide, which I called a favorable surprise walking in the door. That remains. And I would say the positive surprise is, number one, our capabilities into quickly getting to the 200-millimeter with the GTAT acquisition, closing the GTAT acquisition and solidifying our baseline as a pull on silicon carbide providers to our customers. And more importantly, a very competitive road map, not just at what we're providing today, but the customers' reaction to our road map conversations that we've had for the next 5 years or so. All of these have been very favorable that gets me very bullish about our silicon carbide. And that's the reason, in all honesty, our strategy is to double down on it, both from a technology development side. And you heard me talk about the aggressive ramp that we've -- we're doing in 2022 in order to support that doubling every year of our silicon carbide revenue starting with the quadrupling of the GTAT capabilities exiting 2022.

看，有驚喜。我會說驚喜是積極的一面。如果您回想起我的第一份收益，我非常看好該公司在碳化矽方面的能力，我稱這是一個有利的驚喜。那仍然存在。我想說，積極的驚喜是，第一，我們有能力通過收購 GTAT 快速達到 200 毫米，完成對 GTAT 的收購，並鞏固我們的基線，作為對我們客戶的碳化矽供應商的拉動。更重要的是，一個非常有競爭力的路線圖，不僅僅是我們今天提供的，還有客戶對我們未來 5 年左右的路線圖對話的反應。所有這些都非常有利，這讓我非常看好我們的碳化矽。這就是原因，老實說，我們的戰略是從技術開發方面加倍努力。你聽到我談論我們在 2022 年正在做的積極增長，以支持我們的碳化矽收入每年翻一番，從 2022 年退出的 GTAT 能力翻兩番開始。

All of these are, I would say, positive developments. This is where our investment is coming in, and I remain very bullish on our capabilities and the outlook of our silicon carbide business.

我想說，所有這些都是積極的發展。這是我們投資的方向，我仍然非常看好我們的能力和碳化矽業務的前景。

Great. And then as you look at some of the changes you guys have made structurally to the On business, getting into silicon carbide getting into focusing on some new areas that are high growth, how should we think not the near term or the midterm but the longer-term growth rate of the company. How should we think about that as maybe industry growth rate plus x percentage, what would that number be?

偉大的。然後，當您看到你們對 On 業務的結構性所做的一些改變時，進入碳化矽並專注於一些高增長的新領域，我們應該如何考慮不是短期或中期而是長期——公司的長期增長率。我們應該如何看待這可能是行業增長率加上 x 百分比，這個數字是多少？

We're talking about. You can think about it over the long term, about 2x of the industry given the content gains that we're getting, but also being over the next few years moving more and more towards the mega trends that are driving the content like EVs and ADAS. All of these are going to drive our 2x market growth over the longer term as we exit some of those businesses that we -- that Thad just talked about.

我們正在談論。你可以從長遠考慮，考慮到我們正在獲得的內容收益，大約是行業的 2 倍，而且在接下來的幾年中，我們將越來越多地朝著推動 EV 和 ADAS 等內容的大趨勢發展.所有這些都將推動我們在長期內實現 2 倍的市場增長，因為我們退出了 Thad 剛剛談到的一些業務。

But more importantly, it's not just the EV. There's a lot more also investment in content growth in the alternative energy business, where I talked about we are seeing 50% growth in '22. That's going to remain over a multiyear period. All of those are net revenue increases for us because they're new markets. So that's going to keep fueling that growth. So you can see it both on the automotive and industrial. And of course, the cloud business where that investment is going to keep going. So all of these are going to fuel our growth because of our exposure to those megatrends.

但更重要的是，它不僅僅是電動汽車。替代能源業務的內容增長也有更多投資，我談到我們在 22 年看到了 50% 的增長。這將持續多年。所有這些都是我們的淨收入增長，因為它們是新市場。因此，這將繼續推動這種增長。所以你可以在汽車和工業上看到它。當然，還有將繼續投資的雲業務。因此，由於我們接觸到這些大趨勢，所有這些都將推動我們的增長。

Your next question comes from the line of Vijay Rakesh from Mizuho.

您的下一個問題來自瑞穗的 Vijay Rakesh。

Great quarter and guidance -- sorry margins. Just a quick question on the silicon carbide side. I know you mentioned $2.6 billion in basically committed revenue. Just wondering how that -- what should be the contribution for 2022 from that? I know you said $1 billion a year. But is that what would be incremental to 2022? And if you can give some margin profile on that business as well.

偉大的季度和指導 - 遺憾的利潤。只是關於碳化矽方面的一個快速問題。我知道你提到了 26 億美元的基本承諾收入。只是想知道那是怎麼回事- 2022 年的貢獻應該是多少？我知道你說每年 10 億美元。但這會是 2022 年的增量嗎？如果您也可以提供有關該業務的一些利潤概況。

Yes. So we're -- I'm not guiding the silicon carbide in '22 other than saying it's going to more than double from the 2021 as we ramp the existing customers we have in 2021 plus layering on top of that, the LTSAs that start in 2022 and go through 2024. So we have a multiyear visibility on our silicon carbide LTSAs that will get us to exiting '23 with the $1 billion run rate. That foundation is ramping. We have started ramping. We'll be ramping in the -- heavily in the second half of '22 and that's for the full year. It will be more than 2x what it was in 2021.

是的。所以我們 - 我不是在 22 年指導碳化矽，只是說隨著我們在 2021 年增加現有客戶，再加上開始的 LTSA，它將比 2021 年增加一倍以上到 2022 年並持續到 2024 年。因此，我們對碳化矽 LTSA 有多年的了解，這將使我們以 10 億美元的運行率退出 23 年。該基礎正在逐步擴大。我們已經開始爬坡了。我們將在 22 年下半年大幅增加，這是全年的。它將是 2021 年的 2 倍以上。

For margin profile, obviously, that margin profile as we ramp into our CapEx expansion is going to be accretive. Today obviously (inaudible) our margin profile and our margin guide is fully loaded, meaning it includes all of our start-up costs for silicon carbide. So that gives you kind of the accretive nature of our silicon carbide over a long time.

對於保證金情況，顯然，隨著我們擴大資本支出，保證金情況將會增加。今天顯然（聽不清）我們的保證金概況和我們的保證金指南已滿載，這意味著它包括我們所有的碳化矽啟動成本。因此，您可以長期了解我們碳化矽的增值特性。

Yes. Just to be clear, so in the short term, the silicon carbide ramp is dilutive to margins because we have the start-up costs. But over the long term, it is accretive to our corporate average.

是的。需要明確的是，在短期內，碳化矽的增長會稀釋利潤，因為我們有啟動成本。但從長遠來看，它會增加我們的企業平均水平。

Got it. And just on the GTAT side. Obviously, very good to see you guys are pivoting to that. It's obviously, EV and silicon carbide are huge markets. And you're quadrupling the capacity there. But can you give us some color on how that translates the quadrupling of silicon carbide capacity, how that translates to your silicon carbide wafer capacity? Or how much of your revenue will be addressed internally with that quadrupling. That's it.

知道了。就在GTAT方面。顯然，很高興看到你們正在轉向這一點。很明顯，電動汽車和碳化矽是巨大的市場。你在那裡的容量翻了兩番。但是，您能否就這如何將碳化矽產能翻兩番以及您的碳化矽晶圓產能如何轉化為我們提供一些顏色？或者您的收入中有多少將通過翻兩番在內部得到解決。而已。

Yes, our intent to have a majority of our demand supported by our internal capability. Obviously, we are also partner -- we have outside sources that we are able to flex capacity during bumps in ramp.

是的，我們的意圖是讓我們的大部分需求得到我們內部能力的支持。顯然，我們也是合作夥伴——我們有外部資源，我們能夠在坡道顛簸期間靈活調整產能。

But if you think about the quadrupling of our output from GTAT by the end of '22, you can think about it as putting that infrastructure for the supply over the next few years. I talked about more than doubling in '22. We're going to double again from that by -- in '23. As I mentioned in my prepared remarks this quarter and last quarter, that's what's going to be supported by the GTAT. But today, we do have still a mix. But our -- as we ramp up the GTAT capability and really the capacity expansion I talked about is moving more and more of our substrate internal.

但是，如果您考慮到 22 年底我們的 GTAT 產量翻了兩番，您可以將其視為在未來幾年將該基礎設施用於供應。我談到了 22 年的兩倍多。到 23 年，我們將再次翻倍。正如我在本季度和上一季度準備好的評論中提到的，這就是 GTAT 將支持的內容。但是今天，我們仍然有混合。但是我們的 - 隨著我們提高 GTAT 能力以及我所說的產能擴張，我們正在將越來越多的基板轉移到內部。

Your next question comes from the line of Chris Caso from Raymond James.

您的下一個問題來自 Raymond James 的 Chris Caso。

Just a question on pricing. And what's been happening there? And I guess there's 2 elements of pricing. The ASP increases because of the mix shift. And then pricing on individual products. Can you speak about how much of a tailwind that's been and where you see that going as you go into 2022?

只是關於定價的問題。那裡發生了什麼？我猜定價有兩個要素。 ASP 因混合變化而增加。然後對個別產品定價。您能否談談進入 2022 年的順風趨勢以及您認為順風的方向？

Yes. So if you look -- 2022 is going to be a majority of a mix shift. Most of the price or cost increases that we are incurring, we're absorbing through yield improvement or operational efficiencies. So that's going to be minimal. But the primary driver is going to be a mix shift based on really the new baseline that we've achieved exiting Q4, that new mix shift is going to keep and maintain the margin profile that we have on our product.

是的。因此，如果您看一下- 2022 年將是混合轉變的主要部分。我們所發生的大部分價格或成本增加，我們通過提高產量或提高運營效率來吸收。所以這將是最小的。但主要驅動因素將是基於我們在第四季度實現的新基準的混合轉變，新的混合轉變將保持和維持我們產品的利潤率。

And of course, it's going to keep sustaining based on that mix shift we're going to be shipping -- given the profile we know already in 2022 being fully booked. So that on the gross margin. The value -- price-to-value discrepancies we've seen a couple of points I'll make. In the strategic markets that is sustainable. That's a new -- that's the value of our products that we have in the baseline today. The only I guess, pricing actions that will not be sustainable is in that noncore business that Thad talked about that we'll be exiting as the supply comes online from some of our peers. We're not going to chase that price down. Today, it's more favorable than it has been historically, still dilutive but more favorable.

當然，基於我們將要交付的混合轉變，它將繼續維持下去——鑑於我們已經知道在 2022 年已經被預訂滿的配置文件。所以在毛利率上。價值——價格與價值之間的差異，我們已經看到了我要提出的幾點。在可持續的戰略市場中。這是一個新的——這就是我們今天在基線中擁有的產品的價值。我猜唯一不可持續的定價行動是在 Thad 談到的非核心業務中，隨著一些同行的供應上線，我們將退出。我們不會追低這個價格。今天，它比歷史上更有利，仍然稀釋但更有利。

But we don't plan on maintaining that business. We'll be exiting that. So that price -- that portion of that business where price, I don't see that as being sustainable is not going to be a drag on margin because we plan on exiting, and that's all part of the guide that Thad talked about. Everything that remains with our profile and our mix shift is what I would call sustainable profile. And that's where we expect our forward-looking mix to be.

但我們不打算維持這項業務。我們將退出那個。所以這個價格 - 那個業務的價格部分，我認為可持續發展不會拖累利潤率，因為我們計劃退出，這就是 Thad 談到的指南的全部內容。我們的形象和混合轉變中剩下的一切就是我所說的可持續形象。這就是我們期望我們的前瞻性組合的地方。

Got it. Helpful So for a follow-up question, if you could give us some numbers around the Belgium fab sale. What's the cost and margin impact on that over time? And when we do some of those benefits start layering in?

知道了。有幫助所以對於後續問題，如果您可以給我們一些有關比利時晶圓廠銷售的數字。隨著時間的推移，成本和利潤對它有什麼影響？當我們做一些這些好處開始分層？

Yes. So we won't -- this is Thad. We won't see the benefit until we fully exit the fab. So as I said, it'll take 1 to 3 years. When we're totally out of that fab, you can think about $25 million annualized fixed cost coming off the company.

是的。所以我們不會——這是泰德。在我們完全退出晶圓廠之前，我們不會看到好處。正如我所說，這將需要 1 到 3 年。當我們完全離開那個工廠時，你可以想像公司每年會產生 2500 萬美元的固定成本。

In the short term, when the buyer takes over that fab will basically paying the equivalent cost of what we have today. But as we exit, you'll see a benefit over that time frame.

在短期內，當買家接管該晶圓廠時，基本上將支付與我們今天所擁有的成本相當的成本。但是當我們退出時，您會在那個時間範圍內看到好處。

Over that time period.

在那個時間段內。

Your next question comes from the line of John Pitzer from Credit Suisse.

您的下一個問題來自瑞士信貸的 John Pitzer。

Congratulations on the solid results. Just going back to channel inventory. You said it's back to 6 to 8 weeks after a kind of a pop on linearity at the end of the fourth quarter. Can you help us understand what's a normalized level that you guys are thinking about? And how long it might take to get back to that normalized level?

祝賀你取得了堅實的成果。只是回到渠道庫存。你說在第四季度末線性度出現某種流行之後，它又回到了 6 到 8 週。你能幫助我們了解你們正在考慮的標準化水平嗎？恢復到正常化水平可能需要多長時間？

Yes. So today, we think about normalized level has kind of been in that 6- to 7-week range given the supply constraints. As you know, we're holding inventory on our balance sheet rather than shipping into the channel. We're making sure that inventory is going to our strategic customers, and we're allocating it appropriately, whether it's through the channel or whether it's direct. By holding that inventory, we can control where it goes.

是的。所以今天，考慮到供應限制，我們認為標準化水平在 6 到 7 週的範圍內。如您所知，我們在資產負債表上持有庫存，而不是運送到渠道中。我們正在確保庫存流向我們的戰略客戶，並且我們正在適當地分配它，無論是通過渠道還是直接。通過持有該庫存，我們可以控制它的去向。

So in the short term, I think we popped up to 7.3% from 6.8%. I think that's kind of the normal range of what we're going to be looking at probably for the remainder of this year. I think when you look further out there, we're probably looking something around 10 weeks, plus or minus, I think, is what we'll be doing. I mean, obviously, we've got to see where this market kind of shakes out and when we would do that. But I think for the foreseeable future, it's 6 to 7 weeks.

所以在短期內，我認為我們從 6.8% 上升到 7.3%。我認為這是我們今年餘下時間可能要關注的正常範圍。我認為，當您進一步觀察時，我們可能正在尋找大約 10 週左右的時間，我認為這就是我們將要做的事情。我的意思是，很明顯，我們必須看看這個市場在哪裡動搖，我們什麼時候會這樣做。但我認為在可預見的未來，需要 6 到 7 週。

Got it. And then I also thought I heard you say that unit volumes drove most of the sequential growth in the December quarter.

知道了。然後我還以為我聽到你說單位銷量推動了 12 月季度的大部分環比增長。

One, is that true? And if it is, I'm just kind of curious if you can help us walk through kind of the incremental margin leverage and what drove that cyclically because by my math, the exiting of the businesses only gave you about 70 bps. It sounds like most of it was unit driven. I know that utilization was up. Can you just help me kind of square that circle a little bit?

一，這是真的嗎？如果是這樣，我只是有點好奇你是否可以幫助我們了解增量保證金槓桿以及週期性推動這種情況的原因，因為根據我的數學，企業的退出只給了你大約 70 個基點。聽起來大部分都是單元驅動的。我知道利用率上升了。你能幫我把那個圓弄成方形嗎？

Yes. So we -- revenue was up 6%. Units were up 5.7%. You're right. So the top end revenue came from additional units being shipped primarily and then obviously a mix shift in the higher margin. So when you think about the gross margin improvement sequentially, it is more shifted into -- the more favorable shift into the strategic markets. We did get operational efficiencies, which is reducing our manufacturing cost as well. And then as I said, there was a slight pricing increase as well as that we're seeing kind of in the market as we're passing on additional cost to our customers. That we've been seeing.

是的。所以我們 - 收入增長了 6%。單位上漲 5.7%。你說得對。因此，高端收入主要來自額外的出貨量，然後顯然是更高利潤率的混合轉變。因此，當您考慮連續提高毛利率時，它更多地轉移到 - 更有利地轉移到戰略市場。我們確實提高了運營效率，這也降低了我們的製造成本。然後正如我所說，價格略有上漲，而且我們在市場上看到了這種情況，因為我們將額外的成本轉嫁給了我們的客戶。我們已經看到了。

And think about it, the auto and industrial where -- that was the recipient of the mix shift that we have from the noncore, the business that we exited, that also drives just a higher ASP also just because of the market mix, and that's why we favor those markets from a strategy perspective. So it's the unit at a higher ASP.

想想看，汽車和工業領域——這是我們從非核心業務中獲得的混合轉變的接受者，我們退出的業務也因為市場組合而推動了更高的平均售價，那就是為什麼我們從戰略角度看好這些市場。所以它是更高平均售價的單位。

That's helpful. And then if I could just sneak 1 in on the silicon carbide market. When you talk about longer term, this being accretive to your model. I'm just kind of curious how you're thinking about kind of the global capacity for silicon carbide wafers versus kind of the incremental value add that your IP can bring to bear. To what extent are you going to be sort of a [prisoner] to global supply demand where we have to figure out kind of a CapEx model? And to what extent, are you not going to be prisoner to that because you bring something unique to the table.

這很有幫助。然後，如果我可以偷偷進入碳化矽市場。當您談論長期時，這會增加您的模型。我只是有點好奇你如何看待碳化矽晶圓的全球產能與你的 IP 可以帶來的增量增值。您將在多大程度上成為全球供應需求的[囚徒]，我們必須找出一種資本支出模型？在多大程度上，你不會因為你帶來了一些獨特的東西而成為囚徒。

Yes. Look, we -- I've always said that nobody wins because you have material. Nobody wins because you have supply assurance, which makes everybody comfortable in a competitive advantage. But what you win is the efficiency of your products. That's how customers look at it. Nobody is going to take an inferior product for a flagship EV that they're ramping just because you have supply. But they will select the supplier which they have selected us because of our product performance, our road map, and they will get more comfortable and more bullish just like I am when we have the supply assurance to support their ramp. That's what's going to be kind of the landscape moving forward. So having our supply and supply and really controlling our fate with the substrate through the GTAT acquisition that we closed gives us that baseline that we are able to ramp from, but we remain winning based on efficiency of our products and the aggressiveness of our road map.

是的。看，我們——我一直說沒有人會贏，因為你有材料。沒有人會贏，因為你有供應保證，這讓每個人都對競爭優勢感到滿意。但你贏得的是你的產品的效率。客戶就是這麼看的。沒有人會僅僅因為你有供應就將劣質產品用於他們正在增加的旗艦電動汽車。但是他們會選擇他們選擇我們的供應商，因為我們的產品性能，我們的路線圖，當我們有供應保證來支持他們的增長時，他們會像我一樣變得更舒服和更樂觀。這就是前進的風景。因此，擁有我們的供應和供應，並通過我們關閉的 GTAT 收購真正控制我們與基板的命運，為我們提供了我們能夠從基礎開始的基線，但我們仍然基於我們產品的效率和我們路線圖的積極性取得勝利.

Your next question comes from the line of Christopher Rolland from Susquehanna.

您的下一個問題來自 Susquehanna 的 Christopher Rolland。

Congrats on congrats on that gross margin guide in particular. I guess my first question for either of you guys. The LTSAs, I think I missed maybe some of the details there. But if you could describe kind of what percentage of revenue falls under LTSAs today. And then looking out to 2025, I mean, we know what you guys did with LTSA at Cypress. But what are your plans for -- what percentage of revenue by, call it, 2025 might be under LTSA?

恭喜恭喜，特別是該毛利率指南。我想我的第一個問題要問你們兩個。 LTSA，我想我可能錯過了那裡的一些細節。但是，如果你能描述一下今天有多少百分比的收入屬於 LTSA。然後展望 2025 年，我的意思是，我們知道你們在賽普拉斯對 LTSA 做了什麼。但是你的計劃是什麼——到 2025 年，LTSA 下的收入百分比可能是多少？

Yes. Look, I'm not giving percent covered in LTSA. I can tell you in 2022, we're sold out. We're fully booked. Anything incremental we get is going to come from efficiencies that we get through the year in units that we're able to ship. So 2022 kind of -- that's how you can think about it. 2023 are LTSAs that I keep referring to extend through 2024. Our focus on LTSA is on strategic. And obviously, there's always that the net loss that we are talking about, the 10% to 15% that we're -- obviously, that's not under LTSA.

是的。看，我沒有給出 LTSA 覆蓋的百分比。我可以在 2022 年告訴你，我們已經售罄。我們已經訂滿了。我們獲得的任何增量都將來自我們全年能夠交付的單位的效率。所以 2022 年——這就是你可以考慮的方式。 2023 年是 LTSA，我一直指的是 2024 年。我們對 LTSA 的關注是戰略性的。顯然，我們一直在談論的淨損失是 10% 到 15%，顯然，這不在 LTSA 之下。

We're going to be replacing that with an aggressive new product ramp. So I'm not talking about percent under LTSAs, but I can tell you, the visibility is higher than it's ever been in the company. And it doesn't -- it extends much beyond 2022.

我們將用一個積極的新產品坡道來取代它。所以我不是在談論 LTSA 下的百分比，但我可以告訴你，可見度比公司以往任何時候都高。它沒有——它遠遠超出了 2022 年。

And then for my second question, the exited business that you guys did. I think you said $170 million at 20% gross margin. I was wondering how much of that might be left. And then secondly, if a downturn were to occur and you guys needed to still fill your fabs, could you reengage successfully with those accounts? Or do you think that ship has sailed?

然後對於我的第二個問題，你們所做的退出業務。我認為你說的毛利率為 1.7 億美元，毛利率為 20%。我想知道可能還剩下多少。其次，如果出現經濟低迷，你們仍然需要填補晶圓廠的空缺，你們能否成功地重新利用這些客戶？或者你認為那艘船已經航行了？

No. Look, I'll answer the second part because that's an important pillar of the strategy. The answer is we're not going to chase after it because think about it this way. If there is a market downturn, that business is highly dilutive.

不。看，我會回答第二部分，因為這是戰略的重要支柱。答案是我們不會追逐它，因為這樣想。如果出現市場低迷，該業務的稀釋性很高。

I mean you can think about the 15% to 25% margin today, that's in a favorable pricing environment. So you can imagine in a down market, that revenue or that margin is way worse than it is now at that 20%. So the answer is we're not going to chase after it. Strategically, we are walking away from it regardless of what the market does. What we are doing in the meantime to make sure that our -- is our manufacturing optimization is as we're exiting those, we are resizing our manufacturing footprint in order to prevent underloading that historically has plagued the company. So that's going to give us that sustainable margin that we are delivering. So even in a downturn, we're not going to get the drag from gross margin because of mix. We're going to be in a favorable mix regardless of what the market does from a margin perspective. And we are working on our manufacturing optimization, like I talked about with the Belgium fab and then ramping up the East Fishkill where we have scaled fab through our fab lighter strategy in order to sustain that and prevent underloading. So we're not going to run after bad business no matter what the market does. That's strategically our direction.

我的意思是你可以考慮今天 15% 到 25% 的利潤率，這是在有利的定價環境中。所以你可以想像在低迷的市場中，收入或利潤率比現在的 20% 差得多。所以答案是我們不會追逐它。從戰略上講，無論市場如何，我們都在遠離它。與此同時，我們正在做的事情是確保我們的製造優化在我們退出這些優化的過程中，我們正在調整我們的製造足跡，以防止歷史上困擾公司的欠載。因此，這將為我們提供我們正在提供的可持續利潤。因此，即使在經濟低迷時期，我們也不會因為混合而受到毛利率的拖累。無論市場從利潤率的角度來看如何，我們都將處於有利的組合中。我們正在努力優化我們的製造，就像我在比利時工廠談到的那樣，然後擴大東菲什基爾工廠，我們通過我們的工廠打火機戰略擴大了工廠規模，以維持這一點並防止負載不足。因此，無論市場如何，我們都不會追隨不良業務。這是我們的戰略方向。

Our next question comes from the line of William Stein from Truist Securities.

我們的下一個問題來自 Truist Securities 的 William Stein。

I'll add my congratulations on the great results and outlook. I'm wondering if you can dig a little bit more into the LTSAs just asked about. But specifically, do these look like sort of committed volume where specific orders are allocated as the demand becomes more clear, in other words, sort of just volume commitments? Or are these more like hard purchase orders placed in sort of a blanket fashion.

我將對取得的偉大成果和前景表示祝賀。我想知道您是否可以深入了解剛才詢問的 LTSA。但具體來說，這些看起來像是一種承諾量，隨著需求變得更加清晰，特定訂單被分配，換句話說，只是數量承諾？或者這些更像是以某種籠統的方式下達的硬採購訂單。

So I'll answer, if I understood the question correctly. The LTSAs are committed both volume and pricing that gives us the visibility and they're committed on mix. So it's not a blanket LTSA of some revenue number. It is associated to a mix because that's what we're using in order to decide on where to expand our capacity, which is purely on our strategic products. What we don't want is just the blanket capacity expansion in good or bad days. So we're focusing our capacity expansion on where the LTSAs are.

所以我會回答，如果我正確理解了這個問題。 LTSA 在數量和定價方面都做出了承諾，這給了我們可見性，並且他們致力於混合。所以這不是一些收入數字的全面 LTSA。它與一個組合相關，因為這是我們用來決定在哪裡擴展我們的產能，這完全取決於我們的戰略產品。我們不想要的只是在好日子或壞日子裡進行全面的產能擴張。因此，我們將產能擴張的重點放在 LTSA 的位置上。

And again, the LTSAs go down in volume, price and mix. It's the best visibility we have. And like I said, extend over a multiyear period because capacity we're putting in today is really impacting '23 and '24, '22 is kind of -- it is what it is. And that's why I say it's fully committed year as far as mix and volume, plus some of the efficiencies that I talked about will get throughout the year.

再一次，LTSA 的數量、價格和組合都在下降。這是我們擁有的最佳能見度。就像我說的那樣，延長多年時間，因為我們今天投入的產能確實影響了 23 年和 24 年，22 年有點——就是這樣。這就是為什麼我說它在混合和數量方面是完全承諾的一年，加上我談到的一些效率將在全年得到。

That helps. And then just a clarification on that last point as well. It sounds like lead times are beyond 52 weeks at this point. Is that correct? Have they extended further during the quarter? And maybe a similar question around backlog. Has that grown in the last 90 days.

這有幫助。然後只是對最後一點的澄清。聽起來此時的交貨時間已超過 52 週。那是對的嗎？他們在本季度是否進一步擴大？也許還有一個關於積壓的類似問題。在過去 90 天裡有增長嗎？

Yes. Well, it's Thad. The lead times are very consistent. They're right around 45 weeks, plus or minus consistent with what we've seen in the past couple of quarters. So no major change on that. Backlog continues to be very strong. It's outpacing supply. This is purely a supply game right now in terms of just catching up with demand.

是的。嗯，是泰德。交貨時間非常一致。它們大約是 45 週，與我們在過去幾個季度中看到的情況正負一致。所以這方面沒有大的變化。積壓工作繼續非常強勁。供不應求。就趕上需求而言，這純粹是現在的供應遊戲。

And just to clarify my comment that anything now is for 2023 is more on CapEx, not on really supply and demand perspective, meaning installing CapEx through '22 will really impact your capacity expansion in '23.

只是為了澄清我的評論，即 2023 年的任何事情都更多地取決於資本支出，而不是真正的供需角度，這意味著通過 22 年安裝資本支出將真正影響到 23 年的產能擴張。

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

您的下一個問題來自摩根大通的 Harlan Sur。

Congratulations on the solid results and execution. Good to see the sale of the Belgium tab. I know it's going to take a few years to see the benefits of this. I believe that you guys had targeted total fixed cost reductions from smaller fab exits to drive about $125 million, $150 million of fixed costs over the next few years. Is most of this fixed cost reduction still ahead of the team? And have you been able to actually find more opportunities for fixed cost reductions?

祝賀取得了紮實的成果和執行。很高興看到比利時標籤的銷售。我知道這需要幾年時間才能看到它的好處。我相信你們的目標是從較小的晶圓廠出口中降低總固定成本，以在未來幾年推動約 1.25 億美元，即 1.5 億美元的固定成本。大部分固定成本降低是否仍然領先於團隊？您是否能夠真正找到更多降低固定成本的機會？

Yes. Harlan, it's Thad. That number is still the targeted number that we're going after. As I said earlier, Belgium is roughly about $25 million of that fixed cost. So you can see we've got a lot ahead of us. We're not done with the fab divestitures. We laid out that plan that fab lighter plan at Analyst Day, and we're still executing to that plan.

是的。哈蘭，是泰德。這個數字仍然是我們追求的目標數字。正如我之前所說，比利時大約是固定成本的 2500 萬美元。所以你可以看到我們有很多事情要做。我們還沒有完成晶圓廠的剝離。我們在分析師日制定了更輕的計劃，我們仍在執行該計劃。

Great. And then Intelligent Sensing On a 4Q and full year basis, I mean, very strong year-over-year growth, but still quite a bit lower than your auto industrial segments combined. In fact, I think ISG growth was almost 2x lower versus PSG and your auto and industrial segments combined in Q4. Yet we know the demand in content expansion is just as strong as your Power business. So you outsourced a big part of ISG. What's the visibility on when capacity situation starts to improve meaningfully from your foundry partners and is this motivating the team to actually accelerate its in-sourcing efforts here?

偉大的。然後是智能傳感在第四季度和全年的基礎上，我的意思是，同比增長非常強勁，但仍遠低於汽車工業部門的總和。事實上，我認為 ISG 增長幾乎比 PSG 以及第四季度汽車和工業部門的總和低 2 倍。然而，我們知道內容擴展的需求與您的 Power 業務一樣強勁。所以你外包了 ISG 的很大一部分。您的代工合作夥伴何時開始顯著改善產能狀況，這是否會激勵團隊真正加速其內包工作？

Look, we are -- so you're absolutely right. It's not -- this is purely a supply-constrained environment for the sensing given the higher percent of external manufacturing. So we remain focused on working with our outside foundry partners. We were able to get more supply in the fourth quarter. That's what drove kind of the results, and we're working continuously in order to secure more and more supply for 2022. So that's kind of where that business comes in. You're right, it's not a demand. It's more of a supply. And our focus about the mix, internal and external remains on track.

看，我們是 - 所以你是絕對正確的。不是——鑑於外部製造的百分比較高，這純粹是一個供應受限的傳感環境。因此，我們仍然專注於與外部代工合作夥伴合作。我們能夠在第四季度獲得更多供應。這就是推動結果的原因，我們正在不斷努力，以確保 2022 年有越來越多的供應。所以這就是該業務的用武之地。你是對的，這不是需求。它更多的是一種供應。我們對混合、內部和外部的關注仍然在軌道上。

Our next question comes from the line of Tore Svanberg from Stifel.

我們的下一個問題來自 Stifel 的 Tore Svanberg。

Yes. Congratulations on the record results. Could you elaborate a little bit on the inventory in the channel. I think you said it went up to 7.3, but I think you also said in this quarter, it came back down. So is that mainly because sell-through actually got better again this quarter? Or did you take an opportunity to perhaps hold a little bit more inventory? Just wanted some clarification there, please.

是的。祝賀創紀錄的結果。您能否詳細說明一下渠道中的庫存。我想你說它上升到了 7.3，但我認為你在本季度也說過，它又回落了。那麼這主要是因為本季度的銷售實際上再次好轉嗎？或者您是否藉此機會持有更多庫存？只是想澄清一下，拜託。

Yes. The inventory in the channel went up to 7.3 weeks from 6.8 weeks in Q3. It was purely a result of timing of shipments late in the quarter in Q4. sell-through in the channel remains very robust. It's not necessarily that it has cranked up here in Q1. It was just purely a timing of delivery and when we got supply and be able to get into the channel. So it's already returned back into that 6.8 weeks level. And as I was saying earlier, we think going forward, we'll maintain kind of 6 to 7 weeks range for the foreseeable future.

是的。渠道庫存從第三季度的 6.8 週上升至 7.3 週。這純粹是由於第四季度末的出貨時間造成的。渠道中的銷售仍然非常強勁。不一定是它在第一季度就開始上漲了。這只是純粹的交貨時間，以及我們獲得供應並能夠進入渠道的時間。所以它已經回到了 6.8 週的水平。正如我之前所說，我們認為在可預見的未來，我們將保持 6 到 7 週的範圍。

Understood. And the $650 million run rate for CapEx. How much of that is kind of going to fund regular CapEx versus the additional investments you're having now in 300-millimeter and the silicon carbon capacity.

明白了。以及 6.5 億美元的資本支出運行率。與您現在在 300 毫米和矽碳產能方面的額外投資相比，其中有多少將用於資助常規資本支出。

The vast majority of it is going to silicon carbide and to CapEx for East Fishkill, the 300-millimeter fab build-out. There is the rest of it, I would consider more maintenance CapEx.

其中絕大多數將用於碳化矽和用於 300 毫米晶圓廠擴建的 East Fishkill 的資本支出。還有剩下的，我會考慮更多的維護資本支出。

Your next question comes from the line of Raji Gill from Needham & Company.

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

Congrats as well. You might have touched upon this before. But if I look at the percentage of revenue coming from auto and industrial, it's now 63%. So ex those markets, the other markets -- represent 37% of sales. Last year, the other markets were representing about 42%. So your non kind of core markets are going down from 42% to 37%, 38% as you ramp auto industrial. When we're thinking about this 48% to 50% gross margin long term, can you give us a sense, number one, in terms of what percentage of sales do we think auto industrial represent over time? And any sense in terms of the spread of the gross margins between auto and industrial against the other segments.

也恭喜。您之前可能已經觸及到這一點。但如果我看一下來自汽車和工業的收入百分比，現在是 63%。因此，除這些市場外，其他市場佔銷售額的 37%。去年，其他市場約佔 42%。因此，隨著汽車工業的發展，您的非核心市場將從 42% 下降到 37%、38%。當我們考慮這 48% 到 50% 的長期毛利率時，您能否給我們一個感覺，第一，我們認為隨著時間的推移，汽車工業佔銷售額的百分比是多少？以及汽車和工業之間毛利率與其他細分市場的差距。

Yes. We stated in our Analyst Day that we expect over the next 5 years, auto industrial to become about 75% of our total revenue. So we're at 63%. So that gives you kind of our trajectory because it's also tied to our margin expansion as we move forward towards that 75%. Obviously, the mix or margin profile is more favorable from these markets because that's part of the trajectory that we have getting to that 48% to 50% is by being more and more exposed to the markets. But more importantly, it's the new products that we are ramping that are better margin profile. So it's a mix shift for our products, new products versus the, call it, the run rate products and a mix shift to end markets, auto and industrial, becoming 75% at the expense of other markets that historically have had lower margin profile. So net-net, you get the margin expansion and the growth that we talked about. Now I just want to highlight 1 thing. In the other bucket, other than auto industrial, we do have a growth segment with favorable margin, and that's our cloud and 5G power play for that market. That market, we talked about, it's growing at 11% in our Analyst Day.

是的。我們在分析師日表示，我們預計未來 5 年，汽車工業將占我們總收入的 75% 左右。所以我們是63%。因此，這為您提供了我們的軌跡，因為它也與我們向 75% 前進時的利潤率擴張有關。顯然，這些市場的組合或利潤率狀況更有利，因為這是我們達到 48% 到 50% 的軌蹟的一部分，因為我們越來越多地接觸市場。但更重要的是，我們正在推出的新產品具有更好的利潤率。因此，這是我們產品的混合轉變，新產品與所謂的運行率產品以及向終端市場、汽車和工業的混合轉變，以犧牲歷史上利潤率較低的其他市場為代價，成為 75%。所以淨淨，你會得到我們談到的利潤率擴張和增長。現在我只想強調一件事。另一方面，除了汽車工業，我們確實有一個利潤率可觀的增長領域，這就是我們在該市場的雲和 5G 能力。我們談到，這個市場在我們的分析師日以 11% 的速度增長。

So we see that also as a favorable mix from both product and market that drive an expansion of margin beyond where we are today. So these are kind of the 3 big components you can think about driving the growth for the company moving forward and the remaining margin expansion that Thad talked about.

因此，我們認為這也是產品和市場的有利組合，推動了利潤率的擴大，超出了我們今天的水平。因此，您可以考慮推動公司向前發展的三大要素，以及泰德談到的剩餘利潤率擴張。

Yes. Raji, just let me expand on that a little bit as well. The 37% has got some very favorable gross margin in there. It's not like it's all low gross margin. So as we fast forward and we get 75% of our business in auto and industrial, the other [25%] other, it's still a favorable margin, right? It's not low margin business. That's the part that we're exiting. But Hassane is right. As we flex more into auto industrial, that will be more accretive. And obviously, the 5G will be accretive as well. But there is good high gross margin in our other bucket as well.

是的。拉吉，讓我也稍微擴展一下。 37% 的毛利率非常可觀。這並不像這一切都是低毛利率。因此，隨著我們快速前進，我們在汽車和工業領域獲得了 75% 的業務，其他 [25%] 其他業務，這仍然是一個有利的利潤率，對吧？這不是低利潤的業務。這就是我們要退出的部分。但哈桑是對的。隨著我們更多地涉足汽車工業，這將更具增值性。顯然，5G 也將是增值的。但我們的另一個領域也有很高的毛利率。

That's helpful. And just to follow up that your shift to a fab lighter manufacturing strategy is underway. You had mentioned in the past that you want to maintain your internal manufacturing footprint around 65% and you'll achieve that through a lighter footprint by exiting smaller, subscale facilities and moving to or expanding larger ones. With your new 48% to 50% gross margin target, how do we think about that component of the internal versus external manufacturing capacity?

這很有幫助。並且只是為了跟進您正在轉向工廠打火機製造策略。您過去曾提到，您希望將內部製造足跡保持在 65% 左右，您將通過退出較小的小規模設施並轉移到或擴大更大的設施，通過更輕的足跡來實現這一目標。有了新的 48% 到 50% 的毛利率目標，我們如何看待內部與外部製造能力的組成部分？

Yes. So today, we -- internally, we manufacture roughly 65% of our own product. As we fast forward, we bring on East Fishkill, the 300-millimeter fab, we've said that we have the capabilities of expanding capacity by [1.3x what it was today]. Now we have the option there as we add capacity and add CapEx to be able to support that. But as we look further out, that model doesn't change. We still believe we'll manufacture 65% of our own product in-house because we'll get a cost benefit of it. It's really just exiting those subscale fabs, moving it into more efficient fabs. And obviously, the 300-millimeter fab is a component of that.

是的。所以今天，我們——在內部，我們自己生產大約 65% 的產品。隨著我們快進，我們引進了 300 毫米晶圓廠 East Fishkill，我們已經說過我們有能力將產能擴大 [現在的 1.3 倍]。現在我們可以選擇增加容量並增加資本支出來支持它。但當我們進一步觀察時，這種模式並沒有改變。我們仍然相信我們將在內部生產 65% 的自有產品，因為我們會從中獲得成本效益。它實際上只是退出了那些小規模的晶圓廠，將其轉移到更高效的晶圓廠。顯然，300 毫米晶圓廠就是其中的一個組成部分。

This brings us to the end of our question-and-answer session. I turn the call back over to Hassane El-Khoury, President and CEO, for some closing remarks.

這使我們的問答環節結束。我將電話轉回給總裁兼首席執行官 Hassane El-Khoury，以發表一些閉幕詞。

Thank you all for joining us today. I once again thank our worldwide teams for their hard work in accelerating our transformation and driving outstanding results over the last year. With the transformation of our business, we have built a strong engine to power our growth for many years to come. We have established leadership in the fastest-growing semiconductor markets such as vehicle electrification and ADAS, and we are enabling disruption in energy infrastructure and factory automation. We are driving growth while accelerating profitability and rapidly expanding margins. we expect to sustain this momentum with the ongoing transformational changes to our cost structure and the impending ramp of our EV business. Thank you.

感謝大家今天加入我們。我再次感謝我們的全球團隊在過去一年中為加速我們的轉型和取得優異成績所做的辛勤工作。隨著我們業務的轉型，我們已經建立了一個強大的引擎來推動我們未來多年的增長。我們在汽車電氣化和 ADAS 等增長最快的半導體市場中確立了領導地位，我們正在推動能源基礎設施和工廠自動化的顛覆。我們正在推動增長，同時提高盈利能力並迅速擴大利潤率。我們預計隨著成本結構的持續轉型變化和電動汽車業務的即將增長，我們將保持這一勢頭。謝謝你。

This concludes today's conference 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。