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)

早安.我叫羅布，今天我將擔任你們的會議操作員。此時，我歡迎大家參加安森美半導體 2021 年第四季財報電話會議。 （操作員說明）

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

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

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。早安，感謝您參加安森美半導體 21 年第四季業績電話會議。今天我們的總裁兼執行長 Hassane El-Khoury 也加入了我的行列。還有我們的財務長薩德‧特倫特 (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路直播。本次網路廣播的重播以及我們的 2021 年第四季收益發布將在本次電話會議後約 1 小時在我們的網站上發布，錄製的網路廣播將在本次電話會議後約 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、地理位置、管道、股份數量和 2022 年財務日曆相關的更多資訊發佈在我們網站的投資者關係部分。我們的收益發布和本簡報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較指標的對帳包含在我們的收益發布中，該收益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表現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、應該或類似表達等詞語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有重大差異。我們最近向美國證券交易委員會提交的表格 10-K、表格 10-Q 和其他文件中描述了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。

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 年第四季的收益發布中描述了其他因素。義務。

Now let me turn over to Hassane. Hassane?

現在讓我向哈桑求助。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.

謝謝帕拉格，也謝謝大家今天加入我們。 2021 年即將結束，我對我們轉型之旅的進展感到非常滿意。透過專注於實現永續生態系統，我們將安森美半導體定位為智慧電源和感測領域的領導者。我們實施了結構性變革，將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，這一點從我們創紀錄的財務表現中可見一斑。

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.

由於我們已將重點轉向汽車和工業的高價值市場、（聽不清楚）價格與價值的差異以及提高的製造效率，我們擴大了利潤，以在規定的時間線之前實現目標模型。我們的客戶將安森美半導體視為戰略合作夥伴，多項長期供應協議的執行證明了這一點，這些協議為產能規劃和支持它的投資提供了更好的需求可見度。為此，收購 GTAT 擴大了我們在碳化矽領域的領導地位，並為我們的客戶提供了支持這個快速成長的市場所需的供應保證。此外，我們正在退出不穩定且競爭激烈的非核心業務，並專注於獲利成長和可持續的財務表現。

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，我們的收入成長了 28%，而我們的營業收入和自由現金流成長了約 6 倍，這證明了我們在繼續轉型之旅時模型中的營運槓桿。在持續影響市場的疫情和供應鏈挑戰中，我們度過了成功的一年。我們的表現之所以能夠實現，全賴我們全球團隊的奉獻精神，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.

繼續看第四季。第四季是我們全球團隊卓越執行力以及市場領先的智慧電源和感測產品強勁需求環境的又一例子。儘管我們提前實現了利潤目標，但我們預計，透過持續的組合優化、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年增超過 60%，新產品收入較 2020 年成長 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.

這種設計贏得了性能，加上長期供應協議，使公司能夠實現持續的長期成長。第四季營收成長的推動因素是我們今年稍早投資帶來的額外產能，以及加速釋放現有產能以服務我們的策略市場，這與我們退出低利潤非核心產品的既定目標相一致。

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.

我們正在對內部營運進行選擇性投資，以擴大策略性產品的產能。同時，我們正在緩解內部製造業務的瓶頸。我們也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，我們正在對 300 毫米 East Fishkill 工廠的產品進行資格認證，以提高我們晶圓廠網路的效率，同時執行我們的晶圓廠輕量化策略。鑑於成本效益，這將使我們能夠進一步擴大戰略市場的產品產能和毛利率。目前半導體產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.

根據與客戶和通路合作夥伴的互動，我們認為整個供應鏈的半導體庫存仍然較低，而且該行業的交貨時間很長。由於電動車、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.

第四季度，我們的碳化矽產品承諾收入增加了約 6 億美元，到 2024 年，我們目前的承諾收入將超過 26 億美元。的碳化矽產品的端到端供應鏈和市場領先的效率是我們的競爭優勢。為了支持未來幾年碳化矽收入的急劇增長，我們計劃在 2022 年將襯底業務的產能擴大四倍以上，並打算進行大量投資以擴大我們的設備和模組產能。到 2022 年，隨著我們繼續擴大現有客戶並開始根據 LTSA 向新客戶發貨，我們預計我們的碳化矽收入將同比增長一倍以上。

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.

我們仍有望在 2023 年結束時以每年 10 億美元的碳化矽產能。此外，我們從 GTAT 獲得的 200 毫米碳化矽開發項目繼續取得進展。一月份，我們收到了 200 毫米厚的成品晶圓，[裝置良率]達到了我們的生產目標。這些晶圓是利用我們從（聽不清楚）到基板一直透過我們自己的晶圓廠的全部能力製造出來的。我們的碳化矽模組為最近發布的梅賽德斯 EQXX 研究原型電動車平台提供動力，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.

我們基於我們的模組在效率、導熱和開關方面的全面卓越性能來確保這一設計。這場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。我們對替代能源應用功率模組的關注使我們的設計漏斗在2021 年實現了42% 的同比增長。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.

我們預計到2022 年，我們的再生能源相關收入將同比增長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，因為公用事業規模發電廠安裝預計將在全球範圍內增長，以減少以化石燃料為基礎的發電廠對氣候的影響。在智慧感測方面，我們的汽車成像收入環比成長超過 20%，年成長約 40%，因為我們繼續看到新設計在先進安全方面的發展勢頭。

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.

隨著消費者對額外安全功能和改善駕駛體驗的渴望，我們看到感測技術在汽車中的滲透率不斷提高，包括影像感測器和超音波感測。同時，隨著每個攝影機連接到我們的一個 PMIC，每輛車的內容也在不斷增長。我們也看到工業和工廠自動化領域對我們的成像產品的需求不斷增長，其中收入環比增長約 10%，同比增長 43%。工業客戶正在加快對自動化的投資，以提高效率並減少由於工資上漲和勞動力短缺、外包和社會疏遠規定而導致的營運波動。

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.

我們利用在汽車市場的經驗，為工業客戶提供堅固耐用、高解析度和高影像品質的感測器，以滿足最嚴苛的工業應用需求。所有這些執行向量都提供了強勁的利潤率表現，遠遠超出了我們 45% 的目標毛利率。毛利率的加速成長是由以下因素推動的：在消除價格與價值差異方面的強勁而加速的執行、降低成本的舉措、對新產品的集中推動、有意將更多產能轉移到我們戰略市場的產品上以及整個業務的營運效率。

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%.

在進行營運變革以推動利潤率擴張的同時，我們正在完善通路執行力，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成長，符合我們的策略。在這一年中，我們的團隊非常努力地制定工程和營運工作時間表，致力於提高利潤率，以抵消我們增加的材料成本。我們一直致力於提高產量，並向汽車和工業終端市場運送更多產品，從而提高我們業務的利潤率，並幫助支援更多客戶的需求。第四季度，汽車和工業收入占我們營收的 63%，季增 10%，第三季為 61%，分別創紀錄達到 6.41 億美元和 5.22 億美元。在供應受限的環境下，這種成長來自於我們可以出貨的數量增加，更重要的是，來自於我們打算退出的非核心、低利潤業務的策略組合轉變。 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泰德，以提供有關我們財務和指導的更多詳細資訊。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，然後逐步介紹第四季度的業績和 22 年第一季的指導，最後更新我們的長期模型。 2021 年是不平凡的一年，我們對公司進行了轉型，以推動永續績效和股東價值。

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.

我們的重點是使我們的投資適應汽車和工業的高成長大趨勢，同時實施結構性變革，為我們的差異化產品組合獲取價值，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。這些舉措正在轉化為財務業績，我們實現了創紀錄的年度和季度收入、毛利率、營業利潤率和現金流。

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.

我們的2021 年營收為67.4 億美元，比2020 年成長28.3%。市場的內容成長。我們今年的非 GAAP 毛利率提高了 770 個基點，達到 40.4%，並且我們在第四季度超出了 45% 的長期目標。自一年前開始轉型之旅以來，我們的非 GAAP 毛利率提高了 1,080 個基點。 2021 年營業收入和自由現金流的成長速度約為收入的 6 倍，非 GAAP 營業利潤率提高至 21.9%，自由現金流增至 13 億美元，佔營收的 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.

儘管我們在過去一年取得了重大成就，但我們對眼前的機會感到興奮。我們的智慧電源和感測設計獲勝漏斗正在快速擴張，我們正在從外部合作夥伴那裡獲得額外的產能來支持我們的成長，並透過對策略性產品的選擇性內部投資。從利潤角度來看，我們預期[混合]優化和我們的晶圓廠輕量化策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成長提供了更高的可見性，我們相信去年做出的結構性變革和決策鞏固了我們的基線，以實現長期可持續的利潤成長。與我們的晶圓廠輕量化策略一致，我們簽署了出售比利時 6 吋晶圓廠的最終協議，邁出了合理化製造足跡的第一步。此次交易為我們的員工提供了持續部署和成長的機會，同時讓安森美半導體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.

透過將生產轉移到我們網路內更有效率的工廠，我們將消除固定成本並降低單位成本，同時確保向客戶持續供應產品。我們預計在 2022 年第一季完成此次剝離，隨著我們退出比利時工廠，節省的成本將在 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.

轉向第四季的業績。正如我所指出的，第四季業績又創下歷史新高。第四季總營收為18.5億美元，較2020年第四季成長28%，季增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所推動的。智慧電源和智慧感測的收入均創歷史新高，而汽車和工業策略終端市場的收入分別成長了 11% 和 9%。汽車和工業佔總收入的 63%，而 2020 年第四季為 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（PSG）的營收為 9.534 億美元，年成長 33%。高級解決方案集團 (ASG) 的營收為 6.473 億美元，年增 24%。智慧感測集團（ISG）第四季營收為 2.454 億美元，年增 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 GAAP 毛利率為 45.1%，非 GAAP 毛利率為 45.2%，季增 370 個基點。我們利潤率擴張的關鍵因素是向更高利潤率和策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製造業務的效率。去年，我們以 20% 的平均毛利率退出了約 [1.7 億美元] 的非核心收入，並將這些產能分配給毛利率不斷增長的戰略產品。

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%，比第三季 80% 的水平略有上升，我們預計第一季的利用率將大致保持在這個水平。我們也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。第四季每股收益為 0.96 美元，非 GAAP 稀釋每股收益為 1.09 美元，而 2020 年第四季為 0.35 美元，第三季為 0.87 美元。我們為我們的團隊實現了公司有史以來最高的季度每股收益感到非常自豪。現在讓我為您的模型提供一些額外的數字。第四季 GAAP 營運費用為 3.52 億美元，而 2020 年第四季為 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 GAAP 營運支出為 3.06 億美元，去年同期為 2.92 億美元。我們強勁業績推動的可變薪酬，部分被成本優化措施所抵消，導致營運費用年增。我們預計將非 GAAP 營運費用維持在收入的 17% 左右，這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.

我們打算透過提高效率和重新分配資源來推動成長和利潤率擴張，從而抵消薪資上漲對營運支出的影響。我們的GAAP 稀釋後股票數量為4.453 億股，我們的非GAAP 稀釋後股票數量為4.384 億股（聽不清楚）請注意，我們在網站的投資者關係部分提供了更新的參考表，以幫助您計算我們的稀釋後股票數量在各種股價。

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.

轉向第四季的資產負債表。第四季支付 GSAT 收購費用 [4.16 億美元]後，現金和現金等價物為 13 億美元。我們的左輪手槍還有 19.7 億美元未動用。營運現金為 6.27 億美元，自由現金流為 4.57 億美元，約佔營收的 25%。第四季的資本支出為 1.696 億美元，相當於資本密集度為 9%。 2021年全年，資本密集度為6.6%。正如我們先前指出的，我們將很大一部分資本支出用於實現東菲什基爾工廠的 300 毫米產能以及碳化矽產能的擴張。正如我們在分析師日中所提到的，這一增長與近期較高的資本密集度相符。

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.

應收帳款為 8.09 億美元，DSO 為 40 天。庫存較上月增加 5,200 萬美元，達到 14 億美元，庫存天數增加 5 天，達到 124 天。庫存的增加主要是由於為支持晶圓廠轉型而額外建立的橋樑庫存所推動的。分銷庫存從第三季的 6.8 週增加了 [5,000 萬美元] 至 7.3 週。這一小幅增長是由於本季末的發貨時間推動的，庫存週數在第一季的前兩週內恢復到了第三季度的水平。總負債為 31 億美元，我們的淨槓桿比率目前低於 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.

轉向第四季的指引。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。現在讓我向您提供第四季度非公認會計原則指導的關鍵要素。根據當前的市場趨勢和預訂水平，我們相信 2022 年大部分時間需求將超過供應，我們將繼續與策略客戶合作，確保長期不間斷供應。我們繼續透過提高營運效率、選擇性投資合作夥伴來增加供應，以獲得額外產能。

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.

根據目前的預訂趨勢和積壓水平，我們預計第一季的營收將在 18.5 億美元至 19.5 億美元之間。我們預計非 GAAP 毛利率在 45.5% 至 47.5% 之間。這包括 [340 萬美元] 的股權激勵。我們預計非 GAAP 營運支出總額為 2.98 億美元至 3.13 億美元，其中包括 1,740 萬美元的股權激勵。

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 將為 2,100 萬美元至 2,500 萬美元，這導致非 GAAP 每股收益在 0.98 美元至 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開始從歷史上的 6% 增加到約 17.5%，因為我們已經充分利用了我們的 NOL 屬性。這項變更約占我們第一季指引中位數的每股收益 0.14 美元。我們預計第一季的總資本支出為 1.5 億至 1.7 億美元。正如我們在分析師日所指出的，隨著我們提高碳化矽產量並投資 300 毫米產能，我們短期內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.

我們第一季的非 GAAP 稀釋後股票數量預計約為 4.41 億股。最後，我想轉變方向來解決我們的長​​期模型。透過加速擴張計畫和結構性變革，我們第四季的非 GAAP 毛利率達到 45.2%，提前超出了預期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%，這主要是由於我們逐步淘汰低利潤非核心產品並在戰略終端市場上增加新產品，從而實現了有利的組合。隨著我們在多年時間內退出小型晶圓廠，我們也將繼續執行我們的晶圓廠輕量化策略，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.

為了為此擴張提供一個框架，根據我們目前的情況，我們預計 2022 年毛利率將在 46.5% 至 47.5% 之間。所以我們新的長期非GAAP模型如下：毛利率為48%至50%；營運支出為 17%；營業收入為 31% 至 33%，比我們先前的模型 28% 增加了 300 至 500 個基點。我們相信，我們轉型計劃的早期成功使安森美半導體能夠推動持續和長期的收入成長和利潤率擴張。

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.

這些成果和前景只有在我們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可能實現。接下來，我想開始問答環節。我會將電話轉回給 Rob，開通提問專線。

(Operator Instructions)

（操作員說明）

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

你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。泰德，我想第一個問題是收入方面的。您談到了很多關於需求超過供應、許多優秀設計勝利和 LTSA 等問題。我想深入研究那些你正在遠離的事情。

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。看來還有大約 6 億美元即將到來。泰德，您對今年的毛利率做出了良好的展望。我知道您不會指導今年每季的收入。但我想知道增量退出過程將如何進行，然後我們應該以什麼速度思考？

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。讓我從出口處問題的第二部分開始。我們在 2021 年退出了 1.7 億美元。所以我們認為還有另一塊。但正如我們所說，這次退出將需要三年多的時間才能完全擺脫我們所說的退出的全部 10% 到 15%。但我們確實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，無論是季度指導還是長期模型更新，都是當天的新聞。

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下，驚喜是什麼？八月你們還保守嗎？不久前，你已經達到目標了。那麼什麼情況比預期更好呢？我想有些人可能會認為有些週期性順風可能不會持續下去？我知道你似乎不同意這一點，但詳細分析你感到驚訝的事情以及結構性的程度會有所幫助。

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還要快。顯然，我們的計劃與許多營運效率和我們所做的自助有關。 考慮到需求環境，我們能夠吸收大量資金。我們能夠更快地轉向我們的策略產品。正如您所看到的，汽車和工業作為混合轉型的一部分，為我們帶來了更高的利潤率，在今年連續增長，並且超過了我們正在放棄的其他市場的增長，以便能夠有能力分配給我們的策略市場。當然，我們一直在彌合價格與價值差異的軌道上。因此，我們已經能夠完成很多工作，主要是為了抵銷成​​本的上升。

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。由於需求環境的原因，我們能夠放棄業務，將產能轉移到符合我們既定策略的更好的組合轉變。這就是加速的過程。這與保守無關。這是關於我們在 2021 年看到的未知因素和乾擾，但團隊齊心協力，無論是產量的提高推動了更多設備的推出。所有這些都是可持續的，因為組合轉變與市場無關。所有市場都在上漲，但我們正在選擇支持與我們的長期供應協議以及未來幾年後的協議一致的支援內容，這使我們能夠了解這些結果的可見性和可持續性。

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

下一個問題來自花旗銀行的 Chris Danely。

Congrats on another good result and guidance.

祝賀又一個好的結果和指導。

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?

我想就未來的毛利率指引而言，目前看起來有些持平。能簡單談談看跌期權和索取期權嗎？是什麼會推動這些上升？那麼什麼會限制它們呢？是材料費還是其他？

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，你會突然發現它。因此，我們預期額外的投入成本將會上升。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。正如哈桑在先前的回應中所說，我們在很大程度上加速了毛利率計畫。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提高了營運效率。我們能否從我們的製造足跡中獲得更多的吞吐量？但我們確實看到了進步。如果你看我今年提出的指導，你會看到這一年的進步。

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

顯然，根據我們的長期模型 [48% 到 50%]，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，您能否更具體地介紹一下 Fishkill 晶圓廠的影響和時間安排，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。所以我們在 23 年初就取得了所有權。當時我們已經在那裡進行生產了。我們將繼續增加那裡的產量。然後有一段時間我們繼續成長，而 GLOBALFOUNDRIES 則下降。因此，在那段時間裡，有一點阻力，因為我們正在提供一些代工服務（聽不清楚）代工廠，直到我們增加產能。因此，你可以想像這幾年會遇到一些逆風，但兩者之間有一個有序的過渡。因此，這一切也都納入了我們的長期計劃，即長期模型中。

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，您對汽車原始設備製造商和一級供應商的半導體元件庫存的了解情況如何？僅從產業角度來看，汽車產量與半導體產業出貨量之間似乎仍存在差距。這都是混合或定價嗎？只是從概念上來說，你看到了什麼？當我們看到今年汽車產量的改善時，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。汽車和半導體領域出貨量之間的差異完全取決於我們客戶正在建立的組合。當我們在 2021 年全年都處於供應限制狀態時，從 2022 年到 2023 年，我們仍然處於同樣的供應限制狀態。

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戰略性和高價值的產品線，這對半導體來說可以轉化為更多的內容。 當您製造優質車輛時，無論是在歷史上還是在今天，它們的半導體含量都要高得多，達到每輛車 2 到 3 倍的半導體含量水平。這就是你所看到的兩者之間的差異。 2021 年正是如此。現在你可以談談這有什麼長期影響。我不認為有什麼不同。我們一直指導汽車行業遠高於 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發布的公告，他們正在加倍投資電動車。這將為我們帶來比現在更高的未來內容。安全。我談到越來越多的感測技術進入車輛領域，這也推動了我們的感測技術和 PMIC 之間的大量交叉銷售。因此，所有這些都推動半導體的成長高於 SAAR 的單位成長。因此，今年的結果以及我們對 2022 年的預期是非常合理的。 所以我不認為這只是短期的事情，因為宏觀趨勢會延伸到未來 3 年之外。

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，也有興趣了解您對碳化矽機會的看法。因此，您向我們提供了一些有關退出運行率和您簽署的長期協議的數字。我們聽到一些美國競爭對手、一些歐洲競爭對手的大量數據和管道，吸引了投資者的注意。這只是水漲船高的情況，那麼成功的供應商就能有4、5、6個嗎？供應商之間是否會存在某種差異，因為每個人都報告了非常大的管道。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——我想強調一下我所談論的內容和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，這是漏斗完全產生的產出。承諾收入就是我所標記的。

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.

這比大量漏斗揭露的遊戲更確定、更可見。我不會透露漏斗或管道或任何我們想要標記的東西。因此，對這些數字的評論，我給出的大數字是LTSA 下承諾的收入，我們正在建立供應鏈，以便開始提供服務——我們在2021 年退出，我說我們將在2022 年增加一倍以上。看，那裡有很多需求，我們的客戶對電動車用碳化矽進行了大量投資。

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名左右的玩家嗎？我不知道。我知道，基於我們的投資和我們的技術性能在效率方面的結果，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。當您想要使收入翻倍並且您的旗艦客戶依賴您的供應保證和控制一直到晶圓的捲材時，這是一種競爭優勢。沒有多少人可以這麼說。我很高興我們已經結束了 GTAT，而且我們表現得非常好。我們將在 2022 年擴大 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.

你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.

祝賀取得強勁的成果。我也有2個。想知道您目前對 22 年全年營收成長有何看法？我認為 3 個月前，您引導我們將 22 年視為您經歷市場的一年，只是從投資組合優化的角度考慮了一些正在發生的動態。現在還是這樣嗎？我問這個問題是因為你們顯然談到了強大的設計獲勝漏斗和改善的供應背景。如果我們採用第一季指引的中點，第一季營收將成長 28%。所以只是好奇你對全年的看法如何。

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，我們不提供全年指導。不過，我將為您提供一些可以使用的框架。之前的一個電話或回答的問題是關於我所說的業務退出的，我說這將是後半負載。

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，當我們審視全年時，考慮到這一點，我們可能會圍繞市場成長，甚至略高於市場。

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，Thad，我想，在接下來的幾年裡，你將退出大約 5 億美元的收入。我們應該如何考慮這部分業務的毛利率狀況。我認為您已經退出了 1.7 億美元，您談到了 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，這數字高達 1.7 億美元，綜合毛利率為 20%。因此，如果您考慮增量 7000 萬美元，那麼今天的毛利率約為 25%。因此，我們要放棄的下一個部分是在略高的範圍內，但挑戰是當市場回升時，如果我們繼續維持這一水平，那麼利潤率將迅速下降。因此，當我們退出時，我們會將其換成更多的增值利潤。但今天，是的，它稍微領先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.

我是喬許‧布查爾特 (Josh Buchalter)，代表馬特 (Matt)。在準備好的評論中，您對單位增長給出了一些有用的說明。我想知道，當我們考慮利潤時，您是否可以向我們提供任何信息，以幫助我們了解定價與您之前概述的組合轉變相比，帶來了多少提升？當我問到定價時，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，在我們準備好的演講中，我們實際上將其分解為有利的組合、定價和製造最佳化，即獲得更多產品並提高我們降低製造成本的能力。如果你考慮一下推動毛利率改善的順序，這確實是帕累託法則。這就是我們在前進過程中繼續看到的情況。我們認為有利的組合是，當我們放棄這種低利潤的非核心業務時，我們更專注於汽車和工業，這會帶來更高的毛利率。這是毛利率擴張的主要驅動力。顯然，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，在您更廣泛的高壓產品組合中，您是否也看到了 IGBT 的份額增長，而 IGBT 通常由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。我們看到了上升的趨勢。顯然，LTSA 是我提到的長期供應協議，重點是碳化矽。我們確實有 IGBT 的長期供應協議。這些是相對於我們的基線的淨增長。因此，我認為那些主導該市場的同業的份額收益會遠離我們。因此，我們確實看到了 LTSA 中這兩個指標的上升。因此，您可以將其視為在未來幾年內逐步進入這些 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，恭喜您取得了驚人的轉變。 Hassane，您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持續了 6 到 9 個月到一年。有沒有什麼意外，無論是好的還是壞的。我很好奇你的顏色。

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.

瞧，有驚喜了。我想說的是，驚喜是正面的一面。如果你還記得我的第一份財報，我非常看好該公司在碳化矽方面的能力，我稱之為一個有利的驚喜。剩下的就是這個了。我想說的積極驚喜是，第一，我們有能力透過 GTAT 收購快速達到 200 毫米，完成 GTAT 收購並鞏固我們作為碳化矽供應商對客戶的吸引力的基線。更重要的是，這是一個非常有競爭力的路線圖，不僅包括我們今天提供的內容，還包括客戶對我們未來 5 年左右的路線圖對話的反應。這一切都非常有利，讓我非常看好我們的碳化矽。老實說，這就是原因，我們的策略是從技術開發方面加倍努力。你們聽到我談論了我們在 2022 年所做的積極的增長，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進展。這就是我們投資的切入點，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，當你看到你們對 On 業務進行結構性改變時，進入碳化矽領域，專注於一些高成長的新領域，我們應該如何思考，而不是短期或中期，而是長期公司的長期成長率。我們該如何思考，如果產業成長率加上 x 百分比，這個數字會是多少？

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。你可以從長遠來看，考慮到我們所獲得的內容收益，大約是行業的 2 倍，而且在接下來的幾年裡，我們將越來越向推動電動車和 ADAS 等內容的大趨勢發展。 。隨著我們退出泰德剛才談到的一些業務，所有這些都將在長期內推動我們的市場成長兩倍。

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，這不僅僅是電動車。在替代能源業務的內容成長方面也有更多的投資，我談到我們在 22 年看到了 50% 的成長。這種情況將持續多年。所有這些對我們來說都是淨收入成長，因為它們是新市場。因此，這將繼續推動這種成長。因此，您可以在汽車和工業領域看到它。當然，雲端業務的投資將持續下去。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成長。

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

您的下一個問題來自 Mizuho 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.

出色的季度和指導——令人遺憾的利潤率。關於碳化矽方面有一個簡單的問題。我知道您提到了 26 億美元的基本承諾收入。只是想知道這對 2022 年的貢獻應該是多少？我知道你說的是每年 10 億美元。但這是 2022 年的增量嗎？如果您也能提供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。因此，我不會在 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，碳化矽的數量將比 2021 年增加一倍以上從2022 年一直到2024 年。這個基礎正在不斷加強。我們已經開始加速。我們將在 22 年下半年大力推進，這是全年的。這將是 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.

對於利潤率狀況，顯然，隨著我們開始資本支出擴張，利潤率狀況將會增加。今天顯然（聽不清楚）我們的利潤概況和利潤指南已滿載，這意味著它包括我們碳化矽的所有啟動成本。因此，這會為您帶來我們碳化矽在很長一段時間內的增值性質。

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，從短期來看，碳化矽產量的增加會稀釋利潤，因為我們有啟動成本。但從長遠來看，它會提高我們公司的平均水平。

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。顯然，電動車和碳化矽是巨大的市場。那裡的容量增加了四倍。但您能否給我們一些說明，說明這如何轉化為碳化矽產能的四倍，以及如何轉化為您的碳化矽晶圓產能？或者說，你的收入中有多少將在翻兩番後在內部解決。就是這樣。

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的內在能力的支持。顯然，我們也是合作夥伴——我們有外部資源，可以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，如果您想到到 22 年底我們 GTAT 的產量翻了兩番，您就可以將其視為在未來幾年內建立供應基礎設施。我談到 22 年成長了一倍多。到 23 年，我們的目標將再次翻倍。正如我在本季和上季準備好的發言中提到的，這就是 GTAT 將支援的內容。但今天，我們仍然有混合。但是，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雷蒙德詹姆斯 (Raymond James) 的克里斯卡索 (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?

只是一個關於定價的問題。那裡發生了什麼事？我想定價有兩個要素。由於混合轉變，平均售價增加。然後對個別產品進行定價。您能談談這對您有多大的推動力以及您認為進入 2022 年時這種推動力會如何發展嗎？

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，如果你看一下——2022 年將是混合轉變的主要時期。我們正在透過提高產量或提高營運效率來吸收大部分價​​格或成本上漲。所以這將是最小的。但主要驅動力將是基於我們在第四季度實現的新基準的混合轉變，新的混合轉變將維持並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，考慮到我們已經知道 2022 年的資料已被預訂滿，它將根據我們將要交付的混合轉變繼續維持下去。所以在毛利率上。我們已經看到了價值——價格與價值的差異，我將提出幾點。在戰略市場上這是可持續的。這是一個新的——這就是我們今天的基準產品的價值。我認為唯一不可持續的定價行為是薩德談到的非核心業務，隨著我們的一些同行的供應上線，我們將退出。我們不會降低這個價格。如今，它比歷史上任何時候都更有利，仍然具有稀釋性，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.

但我們不打算維持該業務。我們將退出那個。因此，價格——業務的那部分價格，我認為可持續的價格不會拖累利潤，因為我們計劃退出，而這都是泰德談到的指南的一部分。我們的形象和我們的組合轉變中剩下的一切就是我所說的永續形象。這就是我們期望我們的前瞻性組合的所在。

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 因此，對於後續問題，您能否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，成本和利潤會受到什麼影響？當我們開始逐步實現其中一些好處時？

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，這需要 1 到 3 年的時間。當我們完全退出工廠時，您可以想像公司的年化固定成本將達到 2500 萬美元。

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.

短期內，當買家接管該晶圓廠時，基本上將支付與我們今天的成本相當的成本。但當我們退出時，您會在這段時間內看到好處。

Over that time period.

在那段時間裡。

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銀行的約翰‧皮策 (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?

祝賀取得了紮實的成果。回到渠道庫存。你說在第四季末線性出現某種流行之後，又回到了 6 到 8 週。您能幫助我們了解你們正在考慮的標準化程度是多少嗎？恢復到正常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。因此，今天，考慮到供應限制，我們認為正常化程度已經在 6 至 7 週的範圍內。如您所知，我們在資產負債表上持有庫存，而不是透過管道運輸。我們確保庫存流向我們的策略客戶，並且我們適當地分配庫存，無論是透過管道還是直接進行。透過持有該庫存，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剩餘時間可能會看到的正常範圍。我認為，當你進一步觀察時，我們可能會考慮 10 週左右的時間，我想，這就是我們要做的事情。我的意思是，顯然，我們必須看看這個市場會在哪裡震動，以及我們何時會這樣做。但我認為在可預見的未來，是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。然後我還想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，我只是好奇你是否可以幫助我們了解增量保證金槓桿以及推動其週期性增長的因素，因為根據我的數學計算，企業的退出只給你帶來了大約 70 個基點。聽起來大部分都是單位驅動的。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。所以我們的收入成長了 6%。單位上漲 5.7%。你說得對。因此，高端收入主要來自於額外發貨的單位，然後顯然是更高利潤率的混合變化。因此，當你考慮到毛利率的連續改善時，它更多地轉移到了對策略市場的更有利的轉移。我們確實提高了營運效率，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，汽車和工業是我們從非核心業務、我們退出的業務中進行組合轉變的接受者，這也僅僅因為市場組合而推動了更高的平均售價，這就是為什麼我們從戰略角度看好這些市場。所以它是 ASP 較高的單位。

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。然後如果我能偷偷進入碳化矽市場。當您談論長期時，這會增加您的模型。我只是有點好奇您如何考慮碳化矽晶圓的全球產能與您的智慧財產權可以帶來的增量增值。在多大程度上，你將成為全球供應需求的[囚徒]，我們必須找出資本支出模型？在多大程度上，你不會因為你帶來了一些獨特的東西而陷入困境。

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。聽著，我們——我總是說，沒有人會因為有材料而獲勝。沒有人會因為有供應保證而獲勝，這讓每個人都有競爭優勢。但您贏得的是產品的效率。客戶就是這麼看的。沒有人會因為有供應而採用劣質產品來購買旗艦電動車。但他們會選擇我們的供應商，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產能提升時，他們會變得更加舒適和更加樂觀，就像我一樣。這就是未來的發展前景。因此，透過我們完成的GTAT 收購，擁有我們的供應和供應，並真正控制我們對基材的命運，為我們提供了能夠逐步提升的基線，但我們仍然基於我們產品的效率和路線圖的積極性而獲勝。

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

你的下一個問題來自薩斯奎哈納的克里斯多福羅蘭。

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?

恭喜您，特別是毛利率指南。我想我的第一個問題是問你們兩個。 LTSA，我想我可能錯過了其中的一些細節。但如果您能描述一下目前 LTSA 下的收入百分比是多少。然後展望 2025 年，我的意思是，我們知道你們在 Cypress 的 LTSA 方面做了什麼。但您的計劃是什麼——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。我可以告訴你，到 2022 年，我們已經賣完了。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，你可以這樣想。我一直提到將 2023 年的 LTSA 延長至 2024 年。顯然，我們總是在談論淨損失，即 10% 到 15%，顯然，這不屬於 LTSA 規定。

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.

我們將用積極的新產品來取代它。所以我不是說 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。但事實並非如此——它的時間遠遠超出了 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?

接下來是我的第二個問題，你們所做的退出業務。我想你說的是 1.7 億美元，毛利率為 20%。我想知道還剩下多少。其次，如果經濟衰退發生，而你們仍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？還是你認為那艘船已經起航了？

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，我會回答第二部分，因為這是該策略的重要支柱。答案是我們不會去追逐它，因為這樣想。如果市場低迷，該業務就會被高度稀釋。

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，你今天可以考慮 15% 到 25% 的利潤，那是在有利的定價環境下。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去追趕它。從策略上講，無論市場如何變化，我們都會放棄它。同時，我們正在做的是確保我們的製造優化，當我們退出這些優化時，我們正在調整我們的製造足跡，以防止歷史上困擾公司的負載不足。因此，這將為我們帶來可持續的利潤。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。無論市場從利潤率角度來看如何，我們都將處於有利的組合中。我們正在致力於製造最佳化，就像我與比利時晶圓廠討論的那樣，然後擴大東菲什基爾的產能，我們透過晶圓廠輕量化策略擴大了東菲什基爾的晶圓廠規模，以維持此目標並防止負載不足。因此，無論市場如何變化，我們都不會追逐糟糕的業務。這就是我們的策略方向。

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.

我還要對取得的巨大成果和前景表示祝賀。我想知道您是否可以進一步深入了解剛才提到的 LTSA。但具體來說，這些是否看起來像是隨著需求變得更加明確而分配特定訂單的承諾數量，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性採購訂單。

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.

如果我正確理解了這個問題，我會回答。 LTSA 致力於銷售和定價，為我們提供可見性，並且他們致力於混合。因此，這並不是某些收入數字的總括 LTSA。它與混合相關，因為我們正在使用它來決定在哪裡擴展我們的產能，這純粹取決於我們的策略產品。我們不想要的只是在好日子或壞日子裡全面擴張產能。因此，我們將產能擴張的重點放在 LTSA 所在的位置。

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.

LTSA 的數量、價格和結構再次下降。這是我們擁有的最好的能見度。就像我說的那樣，要延續多年，因為我們今天投入的產能確實會影響“23”和“24”，“22”就是這樣。這就是為什麼我說今年是在組合和數量方面全力投入的一年，加上我談到的一些效率將在全年實現。

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。然後對最後一點也澄清。聽起來目前的交貨時間已經超過 52 週了。這是正確的嗎？他們在本季是否進一步延長了期限？也許還有關於積壓的類似問題。過去 90 天內有成長嗎？

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，上下浮動與我們在過去幾季看到的情況一致。所以這方面沒有重大改變。積壓訂單仍然非常強勁。它超過了供應。目前這純粹是一場供應遊戲，只是為了追趕需求。

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，現在 2023 年的任何事情都更多地考慮到資本支出，而不是真正的供需角度，這意味著透過 22 年安裝資本支出將真正影響您在 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?

祝賀取得的紮實成果和執行力。很高興看到比利時標籤的銷售。我知道需要幾年時間才能看到這樣做的好處。我相信你們的目標是從較小的晶圓廠退出中減少總固定成本，以在未來幾年內推動約 1.25 億美元、1.5 億美元的固定成本。大部分固定成本削減是否仍領先團隊？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。哈倫，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，比利時的固定成本約為 2500 萬美元。所以你可以看到我們還有很多事情要做。我們還沒有完成晶圓廠的剝離。我們在分析師日制定了這個更輕的計劃，並且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。然後是智慧感測，我的意思是，從第四季和全年來看，年成長非常強勁，但仍比汽車工業領域的總和低很多。事實上，我認為 ISG 的成長幾乎比 PSG 以及汽車和工業部門在第四季的總和低兩倍。然而，我們知道內容擴展的需求與您的電力業務一樣強勁。所以你外包了 ISG 的很大一部分。您的代工夥伴對產能狀況何時開始顯著改善的可見性如何，這是否會激勵團隊真正加速其內購工作？

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.

聽著，我們是－所以你是完全正確的。事實並非如此——鑑於外部製造的比例較高，這純粹是感測供應受限的環境。因此，我們仍然專注於與外部代工合作夥伴的合作。我們在第四季度獲得了更多供應。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。這更多的是供應。我們對內部和外部組合的關注仍然在正軌上。

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情況。我想你說過它上升到了 7.3，但我想你也說過在這個季度，它回落了。那麼這主要是因為本季的銷售量實際上再次好轉了嗎？還是你抓住機會多持有一點庫存？只是想要一些澄清，請。

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。通路庫存從第三季的 6.8 週增加到 7.3 週。這純粹是第四季末出貨時間的結果。該通路的銷售量仍然非常強勁。它不一定在第一季就已經加速。這純粹是一個交貨時間以及我們何時獲得供應並能夠進入通路的問題。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，我們將維持 6 至 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。資本支出運作費用為 6.5 億美元。其中有多少用於資助常規資本支出，與您現在在 300 毫米和矽碳產能方面的額外投資相比。

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.

其中絕大多數用於碳化矽和 East Fishkill 300 毫米晶圓廠擴建的資本支出。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.

也恭喜你。您以前可能已經接觸過這一點。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，非核心市場將從 42% 下降到 37%、38%。當我們考慮 48% 到 50% 的長期毛利率時，您能否告訴我們，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？就汽車和工業與其他細分市場之間的毛利率差距而言，有什麼意義嗎？

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，預計未來 5 年，汽車工業將占我們總收入的 75% 左右。所以我們的比例是 63%。這給了你我們的軌跡，因為它​​也與我們向 75% 邁進的利潤率擴張有關。顯然，這些市場的組合或利潤狀況更為有利，因為這是我們達到 48% 至 50% 的軌蹟的一部分，是透過越來越多地接觸市場來實現的。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，新產品與運行率產品的混合轉變，以及向汽車和工業等終端市場的混合轉變，以犧牲歷史上利潤率較低的其他市場為代價，達到 75%。所以淨淨，你得到了我們談到的利潤擴張和成長。現在我只想強調一件事。另一方面，除了汽車工業之外，我們確實有一個利潤豐厚的成長領域，這就是我們在該市場的雲端和5G力量。我們談到，這個市場在我們的分析師日以 11% 的速度成長。

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，推動利潤率擴大到超越我們今天的水平。因此，這些是您可以考慮推動公司向前發展的三大組成部分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，讓我也擴展一下這一點。 37% 的毛利率非常優惠。毛利率並不全是低的。因此，當我們快轉時，我們 75% 的業務來自汽車和工業，其他 [25%] 是其他業務，這仍然是一個有利的利潤，對吧？這不是低利潤業務。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，這將帶來更大的價值。顯然，5G 也將帶來增值。但我們的其他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。為了跟進您正在向晶圓廠更輕製造策略的轉變。您過去曾提到，您希望將內部製造足跡保持在 65% 左右，您將透過退出較小規模的小型設施並遷移到或擴大較大的設施來減少足跡，從而實現這一目標。根據您新的 48% 至 50% 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，我們在內部生產了大約 65% 的產品。隨著我們快速前進，我們引入了 East Fishkill，即 300 毫米晶圓廠，我們說過我們有能力將產能擴大 [1.3 倍於今天]。現在我們可以選擇增加容量並增加資本支出來支持這一點。但當我們進一步觀察時，這個模型並沒有改變。我們仍然相信我們將在內部生產 65% 的產品，因為我們將從中獲得成本效益。實際上只是退出那些小型晶圓廠，將其轉移到更有效率的晶圓廠。顯然，300 毫米晶圓廠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.

我們的問答環節到此結束。我將電話轉回給總裁兼執行長 Hassane El-Khoury，讓其發表一些結束語。

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的一年裡為加速我們的轉型並取得優異的業績而付出的辛勤工作。隨著我們業務的轉型，我們已經建立了強大的引擎來推動我們未來多年的成長。我們在汽車電氣化和 ADAS 等成長最快的半導體市場建立了領導地位，並且正在推動能源基礎設施和工廠自動化的顛覆。我們在推動成長的同時加快獲利能力並迅速擴大利潤率。我們希望透過成本結構的持續轉型和電動車業務即將成長來維持這一勢頭。謝謝。

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。您現在可以斷開連線。