安森美 (ON) 2021 Q3 法說會逐字稿

Ladies and gentlemen, thank you for standing by. My name is Brent, and I will be your conference operator today. At this time, I would like to welcome everyone to the ON Semiconductor Third Quarter 2021 Earnings Conference Call. (Operator Instructions)

女士們、先生們，感謝你們的支持。我叫布倫特，今天我將擔任您的會議主持人。現在，我歡迎大家參加安森美半導體2021年第三季財報電話會議。 （操作員指令）

I would now like to turn today's call over to Mr. Parag Agarwal. Sir, please go ahead.

現在，我想將今天的演講轉給帕拉格·阿加瓦爾先生。先生，請說。

Thank you, Brent. Good morning and thank you for joining ON Semi's Third Quarter 2021 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 third 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. Additional information related to our end markets, business segments, geographies, channels, share count and 2021 and 2022 fiscal calendar is also posted on the Investor Relations section of our website.

謝謝你，布倫特。早安，感謝您參加安森美半導體 2021 年第三季業績電話會議。今天與我一起出席的還有我們的總裁兼執行長 Hassane El-Khoury；以及我們的財務長 Thad Trent。本次電話會議將在我們網站 www.onsemi.com 的投資者關係欄位進行網路直播。本次網路直播的重播以及我們的 2021 年第三季財報將在本次電話會議結束後約 1 小時在我們的網站上提供，錄製的網路直播將在本次電話會議結束後約 30 天內提供。有關我們的終端市場、業務部門、地區、通路、股票數量以及 2021 年和 2022 年財年的其他資訊也發佈在我們網站的投資者關係部分。

Our earnings release and this presentation includes certain non-GAAP financial measures. Reconciliation of these non-GAAP financial measures with 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.

我們的收益報告和本簡報包括某些非公認會計準則財務指標。這些非 GAAP 財務指標與 GAAP 下最直接可比較指標的對帳包含在我們的收益報告中，該報告在我們網站的「投資者關係」部分單獨發布。

During the course of this conference call, we'll make projections or other forward-looking statements regarding future events or future financial performance of the company. 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. Additional factors are described in our earnings release for the third 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, changed assumptions or other events that may occur except as required by law.

在本次電話會議期間，我們將對公司未來事件或未來財務表現做出預測或其他前瞻性陳述。相信、估計、預期、預期、打算、可能、期望、將、計劃、應該或類似的表達旨在識別前瞻性陳述。我們希望提醒的是，此類聲明受風險和不確定性的影響，可能導致實際事件或結果與預測有重大差異。我們最近提交給美國證券交易委員會的 10-K 表、10-Q 表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。我們的 2021 年第三季財報中描述了其他因素。我們的估計或其他前瞻性陳述可能會發生變化，除非法律要求，否則公司不承擔更新前瞻性陳述以反映實際結果、變化的假設或可能發生的其他事件的義務。

Now let me turn it over to Hassane. Hassane?

現在讓我把話題交給哈桑。哈桑？

Thank you, Parag, and thank you, everyone, for joining us today. We delivered yet another quarter of record results driven by exceptional execution by our worldwide teams and strong demand for our intelligent power and sensing products. We posted record quarterly revenue and non-GAAP operating margin and EPS. With our results and outlook, we have made a solid start towards achieving our financial target model. Even though our Q3 results and Q4 outlook significantly exceed expectations, we believe that we are just in the early innings of transforming the business. As we make further progress in our transformation initiatives and as our intelligent power and sensing design win ramp with automotive and industrial customers, we expect to see sustained revenue growth and margin expansion.

謝謝 Parag，也謝謝大家今天的參與。由於我們全球團隊的出色表現以及對我們的智慧電源和感測產品的強勁需求，我們再次取得了創紀錄的季度業績。我們公佈了創紀錄的季度收入、非公認會計準則營業利潤率和每股收益。憑藉我們的業績和展望，我們朝著實現財務目標模型邁出了堅實的一步。儘管我們的第三季業績和第四季前景大大超出預期，但我們相信我們才剛剛處於業務轉型的初期。隨著我們轉型計畫取得進一步進展，以及我們的智慧電源和感測設計贏得汽車和工業客戶的青睞，我們預計收入將持續成長，利潤率將擴大。

Today, we announced the close of our acquisition of GT Advanced Technologies, or GTAT. As we outlined at our Analyst Day, our goal is to provide our customers in the industrial and automotive end markets with highly differentiated, intelligent power and sensing solutions, and we are investing to achieve that goal.

今天，我們宣布完成對 GT Advanced Technologies （GTAT）的收購。正如我們在分析師日所概述的那樣，我們的目標是為工業和汽車終端市場的客戶提供高度差異化、智慧的電源和感測解決方案，我們正在投資實現這一目標。

With GTAT's market-leading silicon carbide substrate technology, onsemi is now the only silicon carbide player in the industry with end-to-end capabilities encompassing modules, devices and substrates. Our acquisition of GTAT has been a catalyst for our key automotive customers to engage in long-term strategic partnerships with us, and we can expect GTAT to be a critical enabler of our impending ramp in our silicon carbide business. In fact, in Q4 2021, we will be shipping silicon carbide product-based revenue utilizing the GTAT substrate.

憑藉 GTAT 市場領先的碳化矽基板技術，安森美半導體目前已成為業界唯一擁有涵蓋模組、裝置和基板的端到端能力的碳化矽廠商。我們對 GTAT 的收購促使我們的主要汽車客戶與我們建立長期策略合作夥伴關係，並且我們可以預期 GTAT 將成為我們碳化矽業務即將崛起的關鍵推動因素。事實上，2021 年第四季度，我們將利用 GTAT 基板來運送基於碳化矽產品的收入。

I am also excited to announce that GTAT has delivered 200-millimeter boules, which we have processed at our onsemi manufacturing facility, and we'll be sampling our first devices in January 2022. We welcome the GTAT team to the onsemi family and look forward to expanding its capacity to support our silicon carbide growth plan.

我還很高興地宣布，GTAT 已經交付了 200 毫米晶圓，這些晶圓已在我們的 onsemi 製造工廠進行了加工，我們將在 2022 年 1 月對我們的第一批設備進行採樣。我們歡迎 GTAT 團隊加入 onsemi 大家庭，並期待擴大其產能以支持我們的碳化矽成長計畫。

On a year-to-date basis, our power design win funnel grew by 75% year-over-year. At the end of the third quarter, we have signed LTSAs for committed revenue of $2.5 billion over 3 years for our power solutions. Over $2 billion of this committed revenue is for our silicon carbide solutions for automotive and industrial applications, and 2/3 of this committed revenue is for traction inverters for electric vehicles. We expect to exit 2023 with silicon carbide revenue run rate of above $1 billion.

從年初至今，我們的電源設計成功率年增了 75%。第三季末，我們已簽署長期服務協議，承諾三年內為我們的電源解決方案帶來 25 億美元的收入。該承諾收入中的超過 20 億美元用於我們針對汽車和工業應用的碳化矽解決方案，而該承諾收入的 2/3 用於電動汽車的牽引逆變器。我們預計到 2023 年碳化矽的收入運行率將超過 10 億美元。

The demand of our intelligent power and sensing solutions in our strategic end markets continues to outpace our current supply capability. The strength and demand is driven by secular mega trends such as vehicle electrification, ADAS, industrial automation and transition to alternative energy from fossil fuel-based power generation. For the third quarter, automotive and industrial end markets together grew 42% year-over-year. On a year-to-date basis, our design win funnel for these end markets grew 55% year-over-year, giving us excellent visibility into future revenue. In addition to secular factors, demand for our products is being driven by industry-leading performance of our products in both intelligent power and sensing.

我們策略性終端市場對智慧電源和感測解決方案的需求持續超出我們目前的供應能力。這種實力和需求是由汽車電氣化、ADAS、工業自動化以及從化石燃料發電轉變為替代能源的轉變等長期大趨勢所推動的。第三季度，汽車和工業終端市場合計年增42%。從年初至今，我們在這些終端市場的設計成功管道年增了 55%，讓我們對未來收入有了極好的了解。除了長期因素外，我們產品的需求還受到我們產品在智慧電源和感測方面行業領先性能的推動。

Consistent with our strategy outlined at our Analyst Day, we are driving a mix shift towards automotive and industrial end markets to drive margin expansion. For the third quarter, automotive and industrial together contributed 60% of our revenue as compared to 56% in the quarter a year ago, and we will continue phasing out low-margin, noncore revenue into next year.

與我們在分析師日概述的策略一致，我們正在推動向汽車和工業終端市場的組合轉變，以推動利潤率的擴大。第三季度，汽車和工業業務合計貢獻了我們 60% 的收入，而去年同期這一數字為 56%，明年我們將繼續逐步淘汰低利潤的非核心收入。

Looking forward, we expect demand to remain robust and outpace supply through most of 2022. We are selectively investing in our operations to relieve capacity bottlenecks for our strategic product lines while working with our foundry partners to obtain a higher allocation of capacity. At the same time, we are shifting our production to strategic high-value mix of products. Longer 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.

展望未來，我們預計在 2022 年的大部分時間內，需求將保持強勁並超過供應。我們正在選擇性地投資我們的運營，以緩解我們戰略產品線的產能瓶頸，同時與我們的代工合作夥伴合作以獲得更高的產能分配。同時，我們正在將生產轉向策略性高價值產品組合。從長遠來看，我們正在東菲什基爾 300 毫米工廠中對產品進行認證，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。

Along with expanding supply, we are working collaboratively with our customers to ensure uninterrupted supply of our products, and we have entered into long-term supply agreements with many of them. These LTSAs commit a multiyear revenue stream with stable and sustainable margin. Coupled with our expanding design win pipeline in the automotive and industrial end markets, we have outstanding visibility into our revenue and in margin in support of our target model. Along with entering into LTSAs, many of our largest automotive and industrial customers are co-investing with us. These investments solidify the strategic nature of our LTSA and enable us to support our customers by ensuring supply and providing development support.

在擴大供應的同時，我們也與客戶合作，確保產品不間斷的供應，並與許多客戶簽訂了長期供應協議。這些 LTSA 承諾提供多年收入流以及穩定且可持續的利潤。加上我們在汽車和工業終端市場不斷擴大的設計中標管道，我們對收入和利潤率擁有出色的可視性，以支持我們的目標模型。隨著簽署長期租賃協議，我們的許多最大汽車和工業客戶也與我們共同投資。這些投資鞏固了我們 LTSA 的戰略性質，並使我們能夠透過確保供應和提供開發支援來支持我們的客戶。

Let me now discuss a few highlights of our key strategic end markets, starting with automotive. We set a record for our automotive revenue in Q3 of $575.6 million. Automotive represented 33% of our revenue in Q3 and grew 37% year-over-year and 4% quarter-over-quarter. The strength in automotive was driven by both our power and sensing product categories. We are seeing strong momentum in our electric vehicle business for both silicon carbide and IGBT-based solutions. We have signed LTSAs for committed revenue for EV of a little less than $2 billion over the next few years, starting the ramp in Q4 2021 and approximately doubling year-over-year for the next few years. Over 80% of this committed revenue is for silicon carbide solutions for EV traction inverters.

現在，讓我討論一下我們主要戰略終端市場的幾個亮點，首先是汽車市場。我們第三季的汽車收入創下了 5.756 億美元的紀錄。汽車業務占我們第三季營收的 33%，年增 37%，季增 4%。汽車領域的優勢主要源自於我們的動力和感測產品類別。我們看到，無論是基於碳化矽還是基於 IGBT 的解決方案，電動車業務都呈現強勁發展勢頭。我們已經簽署了 LTSA，承諾未來幾年為 EV 帶來略低於 20 億美元的收入，並將於 2021 年第四季開始成長，並在未來幾年內實現同比增長約一倍。該承諾收入的 80% 以上將用於電動車牽引逆變器的碳化矽解決方案。

As we have indicated earlier, in addition to the industry-leading performance of our FETs, the key source of our differentiation is our expertise in packaging, which is critical for improving heat dissipation, increasing power output and a smaller footprint than our closest competitor and reducing weight and cost of a power module. The efficiency of our modules allows our customers to make no trade-offs between the cost of battery and the range of the vehicle. They get both.

正如我們之前所說，除了我們的 FET 具有業界領先的性能之外，我們差異化的關鍵來源還在於我們在封裝方面的專業知識，這對於改善散熱、提高功率輸出、比我們最接近的競爭對手更小的佔用空間以及降低電源模組的重量和成本至關重要。我們模組的效率使我們的客戶無需在電池成本和車輛續航里程之間做出權衡。他們兩樣都得到了。

Our automotive imaging revenue grew more than 10% quarter-over-quarter and 45% year-over-year. We continue to see momentum in automotive safety with new design wins and increasing content for our CMOS image sensors and power management. Year-to-date, our automotive imaging design win funnel grew by 75% year-over-year. As ADAS systems shift to higher pixel density and the need for automotive safety requirements around power management increases, our content will increase as these solutions have higher ASPs. This increase is further compounded by a higher number of sensors and power ICEs per car and increasing number of cars with active safety features.

我們的汽車成像收入較上季成長超過 10%，較去年同期成長 45%。隨著新設計的勝利以及CMOS影像感測器和電源管理內容的增加，我們繼續看到汽車安全領域的發展勢頭。今年迄今為止，我們的汽車成像設計成功率比去年同期成長了 75%。隨著 ADAS 系統轉向更高的像素密度，以及對電源管理方面的汽車安全要求的需求不斷增加，我們的內容將會增加，因為這些解決方案具有更高的 ASP。每輛車配備的感測器和動力內燃機的數量不斷增加，以及配備主動安全功能的汽車數量不斷增加，進一步加劇了這種成長。

The industrial end market, which includes military, aerospace and medical, contributed revenue of $478.5 million in Q3, representing approximately 27% of our revenue. Our third quarter industrial revenue increased by 48% year-over-year and 11% quarter-over-quarter driven by strong demand for our intelligent power and sensing solutions.

包括軍事、航空航太和醫療在內的工業終端市場在第三季貢獻了 4.785 億美元的收入，約占我們收入的 27%。由於智慧電源和感測解決方案的需求強勁，我們第三季的工業營收年增 48%，季增 11%。

We are seeing a more than 2x growth in our design win funnel from alternative energy customers for our power solutions 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. Industrial power tools are another area of growth as power tools are transitioning from brushed motors to brushless motors and from AC to battery powered, both trends driving significantly higher content for us.

我們發現來自替代能源客戶對我們電源解決方案的設計中標管道增長了2倍多，並且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發電廠的安裝將不斷增長，以減少化石燃料發電廠對氣候的影響。工業電動工具是另一個成長領域，因為電動工具正在從有刷電機轉變為無刷電機，從交流電轉變為電池供電，這兩種趨勢都為我們帶來了顯著更高的內容。

The demand for our imaging products and industrial automation applications remained strong with 20% quarter-over-quarter growth. Industrial customers are investing in automation at an increased pace to improve efficiency and to reduce volatility in operations due to social distancing mandates and labor shortages. We have leveraged our experience in automotive to offer our industrial customers rugged high resolution and high image quality sensors for the most demanding industrial applications.

我們對影像產品和工業自動化應用的需求保持強勁，較上季成長 20%。工業客戶正在加大對自動化的投資，以提高效率並減少因社交距離規定和勞動力短缺而導致的營運波動。我們利用在汽車領域的經驗，為工業客戶提供適用於最苛刻的工業應用的堅固耐用的高解析度和高影像品質感測器。

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，以提供有關我們的財務和指導的更多詳細資訊。泰德？

Thanks, Hassane. I'm pleased to announce yet another quarter of record results. As Hassane mentioned, we posted record quarterly revenue and record non-GAAP operating margin and earnings per share while generating free cash flow margin of 20% for the quarter. All 3 of our business units reported record quarterly revenue, and our targeted automotive and industrial end markets grew sequentially, achieving record revenue levels.

謝謝，哈桑。我很高興地宣布本季又創下了新的業績記錄。正如哈桑所提到的，我們公佈了創紀錄的季度收入、創紀錄的非公認會計準則營業利潤率和每股收益，同時本季產生了 20% 的自由現金流利潤率。我們所有三個業務部門都報告了創紀錄的季度收入，我們所針對的汽車和工業終端市場環比增長，實現了創紀錄的收入水平。

With a rapidly expanding design win funnel of intelligent power and sensing solutions and ongoing structural changes to our business, we are well positioned to make sustained progress towards our targeted financial model. While the onsemi team has accomplished a lot in a short period of time, we have significant opportunities ahead of us to drive sustained revenue growth and predictable financial performance. From a revenue perspective, we are in the early innings of the ramp in our vehicle electrification business and expect EVs to be a significant driver of our long-term growth, complemented by increasing demand for ADAS, industrial automation and alternative energy. We are pleased with our performance thus far and remain focused on margin expansion as we execute our transformation initiatives, including the portfolio optimization and our fab lighter strategy.

隨著智慧電源和感測解決方案設計成功管道的迅速擴大和業務結構的持續變化，我們已做好準備，並持續朝著目標財務模型邁進。雖然安森美團隊在短時間內取得了許多成就，但我們仍有很大的發展機會來推動持續的營收成長和可預測的財務表現。從收入角度來看，我們的汽車電氣化業務正處於成長的初期，預計電動車將成為我們長期成長的重要驅動力，同時 ADAS、工業自動化和替代能源的需求也將持續成長。我們對迄今為止的表現感到滿意，並在實施轉型計劃（包括投資組合優化和工廠輕量化策略）時繼續專注於提高利潤率。

Now turning to the results for the third quarter. Total revenue for the third quarter was $1.74 billion, an increase of 32% over the third quarter of 2020 and 4% quarter-over-quarter. The sequential revenue growth was driven by our ability to increase our supply both internally and externally, shipping 3% more units than in Q2, and favorable mix and pricing across all end markets. Revenue for our intelligent power and intelligent sensing products were also at record revenue levels, increasing sequentially 3% and 8%, respectively, while accounting for 62% of total revenue in Q3.

現在來看看第三季的業績。第三季總營收為 17.4 億美元，較 2020 年第三季成長 32%，季增 4%。連續的收入成長得益於我們增加內部和外部供應的能力，出貨量比第二季增加 3％，以及所有終端市場的有利組合和定價。我們的智慧電源和智慧感測產品的收入也達到了創紀錄的水平，分別比上一季成長了 3% 和 8%，佔第三季總收入的 62%。

Our automotive revenue grew 37% year-over-year and 4% sequentially. Industrial revenue grew 48% year-over-year and 11% sequentially. Automotive and industrial contributed a total of 60% of revenue in Q3 as compared to 56% in the year ago quarter.

我們的汽車收入年增 37%，較上季成長 4%。工業收入年增48％，環比增長11％。汽車和工業在第三季貢獻了總計 60% 的收入，而去年同期為 56%。

Turning to the business units. Revenue for the Power Solutions Group, or PSG, was $892.2 million. PSG revenue increased by 38% year-over-year due to strength in automotive and industrial end markets. Revenue for the Advanced Solutions Group, or ASG, was $613.5 million, an increase of 24% year-over-year. In addition to strength in automotive, ASG benefited from strength in computing, especially in high-end graphics cards. Revenue for the Intelligent Sensing Group, or ISG, for the third quarter was $236.5 million, an increase of 35% year-over-year. Growth in ISG was driven by both automotive and industrial end markets.

轉向業務部門。電源解決方案集團（PSG）的收入為 8.922 億美元。由於汽車和工業終端市場的強勁成長，PSG 營收年增 38%。高級解決方案集團（ASG）的營收為 6.135 億美元，年增 24%。除了在汽車領域的優勢外，ASG 還受益於在運算領域，尤其是高階顯示卡領域的優勢。智慧感測集團（ISG）第三季的營收為 2.365 億美元，年增 35%。 ISG 的成長受到汽車和工業終端市場的推動。

GAAP gross margins for the third quarter was 41.4%, and non-GAAP gross margin was 41.5%, an 800 basis point improvement year-over-year and a 310 basis point improvement quarter-over-quarter. Our gross margin expansion is ahead of our original plans with improved efficiencies at our manufacturing sites, favorable mix and improved pricing as we continue to examine our portfolio for price-to-value discrepancies.

第三季 GAAP 毛利率為 41.4%，非 GAAP 毛利率為 41.5%，較去年成長 800 個基點，較上季提高 310 個基點。隨著我們繼續審查產品組合中的價格與價值差異，我們的毛利率擴張超過了原計劃，因為我們製造工廠的效率提高了，產品組合更加有利，定價也得到了改善。

Over the last 2 quarters, we have exited approximately $100 million of noncore revenue at an average gross margin of 15% and allocated this capacity to strategic products with accretive gross margins. Over 60% of this exit occurred in Q3, and we expect to continue phasing out our low-margin, noncore revenue over the next 2 years as we outlined at our August Analyst Day.

在過去的兩個季度中，我們以 15% 的平均毛利率退出了約 1 億美元的非核心收入，並將這些產能分配給了具有增值毛利率的戰略產品。其中超過 60% 的退出發生在第三季度，正如我們在 8 月分析師日上概述的那樣，我們預計未來 2 年內將繼續逐步淘汰低利潤的非核心收入。

To date, we have been successful in navigating rising input and manufacturing costs by adjusting pricing to our customers. While we will likely see more cost increases in early '22, we don't expect these increases to have a negative impact on our gross margins. Our factory utilization was 80%, down slightly from Q2 level of 83% due primarily to COVID-related slowdowns affecting our back-end facilities in Southeast Asia. As our operations stabilize, we expect utilization to remain in the low 80% range, consistent with previous quarters.

到目前為止，我們已經透過調整客戶價格成功應對了不斷上升的投入和製造成本。雖然我們可能會在22年初看到更多成本增加，但我們預計這些增加不會對我們的毛利率產生負面影響。我們的工廠利用率為 80%，較第二季的 83% 略有下降，這主要是由於與 COVID 相關的放緩影響了我們位於東南亞的後端設施。隨著我們營運的穩定，我們預計利用率將保持在 80% 的低位，與前幾個季度一致。

GAAP earnings per share for the third quarter was $0.70 per share. Non-GAAP earnings per share for the third quarter was $0.87 per diluted share as compared to $0.27 per share in the third quarter of 2020 and $0.63 in Q2. As noted earlier, this is the highest ever quarterly non-GAAP EPS reported by the company.

第三季 GAAP 每股收益為 0.70 美元。第三季非公認會計準則每股收益為每股 0.87 美元，而 2020 年第三季每股收益為 0.27 美元，第二季每股收益為 0.63 美元。如前所述，這是該公司報告的有史以來最高的季度非 GAAP 每股收益。

Now let me give you some additional numbers for your models. GAAP operating expenses for the third quarter of 2021 were $321.6 million as compared to $322.2 million in the third quarter of 2020. Non-GAAP operating expenses were $296.2 million, a decline of $18 million quarter-over-quarter as we continue to restructure our operations to align with our new strategy and reduce investments in our nonstrategic areas. While we saw benefits of lower OpEx in Q3, we expect to redeploy capital into our strategic areas in Q4. And therefore, there will be an increase in spending back to normal run rate levels while achieving our 17% operating expense target.

現在讓我為您的模型提供一些額外的數字。 2021 年第三季的 GAAP 營運費用為 3.216 億美元，而 2020 年第三季為 3.222 億美元。非 GAAP 營運費用為 2.962 億美元，環比下降 1800 萬美元，因為我們繼續重組營運以符合我們的新策略並減少對非戰略領域的投資。雖然我們看到了第三季營運支出降低的好處，但我們預計在第四季度將資本重新部署到我們的策略領域。因此，在實現 17% 的營運費用目標的同時，支出將增加到正常的運行率水準。

Our GAAP operating margin for the third quarter was 22.9% as compared to 9% in the third quarter of 2020. Our non-GAAP operating margin was at a record level of 24.5% as compared to 12% in the third quarter of 2020 and 19.6% in Q2.

我們第三季的 GAAP 營業利潤率為 22.9%，而 2020 年第三季為 9%。我們的非 GAAP 營業利潤率達到創紀錄的 24.5%，而 2020 年第三季為 12%，第二季為 19.6%。

Our GAAP diluted share count was 440.7 million shares, and our non-GAAP diluted share count was 435.7 million. Please note, we have an updated reference table on the Investor Relations section of our website to assist you with calculating our diluted share count and various share prices.

我們的 GAAP 稀釋股數為 4.407 億股，非 GAAP 稀釋股數為 4.357 億股。請注意，我們網站的投資者關係部分有一個更新的參考表，以幫助您計算我們的稀釋股數和各種股價。

Turning to the Q3 balance sheet. Cash and cash equivalents was $1.39 billion, and we had $1.97 billion undrawn on our revolver. Cash from operations was $448.9 million, and free cash flow was $355.7 million or 20% of revenue. Capital expenditures during the third quarter were $93.2 million, which equates to a capital intensity of 5.4%. 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 expansion of silicon carbide capacity.

轉向第三季資產負債表。現金和現金等價物為 13.9 億美元，還有 19.7 億美元未動用循環信貸資金。經營現金流為 4.489 億美元，自由現金流為 3.557 億美元，佔收入的 20%。第三季的資本支出為 9,320 萬美元，相當於資本密集度為 5.4%。正如我們之前所指出的，我們將把很大一部分資本支出用於實現 East Fishkill 晶圓廠的 300 毫米產能以及擴大碳化矽產能。

Accounts receivable was $720 million, resulting in days sales outstanding of 37 days. Inventory increased $18 million sequentially to $1.3 billion, and days of inventory increased 3 days to 119 days. The increase in inventory was driven primarily by an initial build of bridge inventory for fab transition and work-in-progress inventory of finished wafers that could not be processed due to back-end capacity constraints.

應收帳款為 7.2 億美元，導致應收帳款週轉天數為 37 天。庫存較上月增加 1,800 萬美元，達到 13 億美元，庫存天數增加 3 天，達到 119 天。庫存增加主要是由於為晶圓廠轉型而初步建立的過渡庫存，以及由於後端產能限製而無法處理的成品晶圓的在製品庫存。

Distribution inventory decreased $39 million to 6.8 weeks from 7.3 weeks in Q2. Once again, we are proactively reducing the distribution inventory to hold more inventory on our balance sheet to support our customer needs rather than building inventory in the supply chain. Total debt was $3.1 billion, and our net leverage ratio is now approximately at 1x.

分銷庫存從第二季的 7.3 週減少了 3,900 萬美元至 6.8 週。再次，我們積極減少分銷庫存，以便在資產負債表上持有更多庫存來滿足客戶需求，而不是在供應鏈中建立庫存。總債務為 31 億美元，我們的淨槓桿率現在約為 1 倍。

Turning to guidance for the quarter. A table dealing our -- detailing our GAAP and non-GAAP guidance is provided in the press release related to our third quarter results. Our guidance includes our expected results for roughly 9 weeks of the GTAT acquisition after closing last Thursday.

轉向本季的指引。在與我們第三季業績相關的新聞稿中，提供了一個表格，詳細說明了我們的 GAAP 和非 GAAP 指引。我們的預期結果包括上週四 GTAT 收購案結束後約 9 週的預期結果。

Let me now provide you key elements of our non-GAAP guidance for the fourth quarter. Based on bookings trends, we believe demand will remain strong through much of next year. We continue to increase supply through operational efficiencies and working with our external partners to obtain additional capacity. We are also accelerating product qualification at our 300-millimeter fab in East Fishkill. Despite these efforts, we will be limited by supply constraints, and we are working with our strategic customers to ensure long-term uninterrupted supply.

現在，讓我向您提供我們第四季非 GAAP 指引的關鍵要素。根據預訂趨勢，我們相信明年大部分時間內需求仍將保持強勁。我們將繼續透過提高營運效率和與外部合作夥伴合作來增加供應以獲得額外的產能。我們也在東菲什基爾的 300 毫米晶圓廠加速產品認證。儘管做出了這些努力，我們仍會受到供應限制的限制，我們正在與策略客戶合作，確保長期不間斷供應。

Based on current booking trends and backlog levels, we anticipate that revenue for the fourth quarter will be in the range of $1.74 billion to $1.84 billion. This includes expected GTAT revenue of approximately $3 million to $4 million for the quarter. We expect non-GAAP gross margins between 42% and 44%, and this includes share-based compensation of $3.6 million. We expect total non-GAAP operating expenses of $298 million to $313 million and includes roughly $4 million in OpEx for GTAT and share-based compensation of $18.6 million.

根據目前的預訂趨勢和積壓水平，我們預計第四季度的營收將在 17.4 億美元至 18.4 億美元之間。其中包括 GTAT 本季預計約 300 萬至 400 萬美元的收入。我們預計非 GAAP 毛利率在 42% 至 44% 之間，其中包括 360 萬美元的股權激勵費用。我們預計非 GAAP 營運費用總額為 2.98 億美元至 3.13 億美元，其中包括 GTAT 約 400 萬美元的營運支出和 1,860 萬美元的股權激勵費用。

We anticipate our non-GAAP OIE, including interest expense, will be $24 million to $27 million. So this results in non-GAAP earnings per share to be in the range of $0.89 to $1.01. This includes the impact of GTAT business, which is roughly $0.01 dilutive for the quarter. We expect total capital expenditures of $130 million to $140 million in the quarter. Our non-GAAP diluted share count for the fourth quarter of 2021 is expected to be approximately 437 million shares.

我們預計，包括利息支出在內的非公認會計準則 OIE 將達到 2,400 萬至 2,700 萬美元。因此非 GAAP 每股收益將在 0.89 美元至 1.01 美元之間。其中包括 GTAT 業務的影響，該業務對本季的稀釋影響約為 0.01 美元。我們預計本季總資本支出為 1.3 億至 1.4 億美元。我們預計 2021 年第四季的非 GAAP 稀釋股數約為 4.37 億股。

So in summary, I'm extremely pleased with our progress and the execution of our transformation initiatives. I add my thanks to our worldwide teams for their hard work and unwavering commitment to our customers.

總而言之，我對我們的進展和轉型計劃的執行感到非常滿意。我還要向我們全球團隊的辛勤工作和對客戶堅定不移的承諾表示感謝。

With that, I'd like to start Q&A. So I'll turn it back over to Brent to open the line for questions.

現在我想開始問答環節。因此我將把話題轉回給布倫特，讓他回答問題。

(Operator Instructions) Your first question comes from Ross Seymore with Deutsche Bank.

（操作員指示）您的第一個問題來自德意志銀行的羅斯·西摩。

Congratulations on the strong results. Hassane, my first question is for you, and that's on the transformation on the revenue line. At your Analyst Meeting, you talked about exiting 10% to 15% of your revenues over the next couple of years. I wanted to see if we can get an update on that. And how much of that is a headwind today? Or is that still yet to come?

恭喜您取得的優異成績。哈桑，我的第一個問題是關於營收線的轉型。在您的分析師會議上，您談到了在未來幾年內退出 10% 到 15% 的收入。我想看看我們是否可以得到有關該問題的最新消息。那麼，如今這其中的逆風有多大呢？還是這還沒到來？

Ross, this is Thad. I'll take that. In my prepared remarks, I talked about we've exited approximately $100 million over the last 2 quarters, 60% of it being in the third quarter. And the average margin for that business was roughly 15%. We plan on continuing to exit that business over the next 2 years. As we've talked about, it will be kind of, I think, about being fairly linear for the next 2 years as we continue to execute and we shift that capacity into higher-value products and higher-value capacity.

羅斯，這是泰德。我接受。在我準備好的發言中，我談到我們在過去兩個季度已經退出了大約 1 億美元，其中 60% 是在第三季。該業務的平均利潤率約為15%。我們計劃在未來兩年內繼續退出該業務。正如我們所討論的，我認為，隨著我們繼續執行並將產能轉移到更高價值的產品和更高價值的產能，未來兩年它將保持相當線性的成長。

And then just to add to that -- you talked about the headwind. We are able -- of course, with the demand environment, we're able to shift that capacity to demand in our strategic market with our strategic customers. And that's the mix shift that we are going through, and we'll keep going through that for the next couple of years.

然後補充一下——您談到了逆風。當然，在需求環境下，我們能夠將產能轉化為策略市場和策略客戶的需求。這就是我們正在經歷的混合轉變，在接下來的幾年裡我們將繼續經歷這種轉變。

Great. And I guess the follow-on to that would be on the gross margin side. Great job upsiding even your expectations there. Can you talk about how much of that do you view to be structural versus cyclical? And I know you're going to say it's structural because of everything you just answered in my first question. But how much of a cyclical tailwind are you getting with price increases, et cetera, that you think are truly sustainable going forward?

偉大的。我想接下來的問題就是毛利率方面。幹得好，甚至超出了你的期望。您能否談談您認為其中有多少是結構性的，有多少是週期性的？我知道你會說這是結構性的，因為你剛才已經回答了我的第一個問題。但是，您認為價格上漲等週期性順風能持續多久？您認為這種順風能在未來有多大程度上真正可持續？

Yes. Look, this is Thad again. We think the majority of it is structural, right? We've been making changes to our manufacturing operations, driving efficiencies there. It's the mix shift as well. There's definitely a pricing component of it. It's a favorable pricing market. As I stated, we've been passing on the cost increases that we see coming our way. We believe that we'll continue to get the gross margin expansion. Our target remains at 45% over time here. And like I said, most of it is structural in nature.

是的。看，這又是塔德。我們認為其中大部分是結構性的，對嗎？我們一直在改變我們的製造業務，以提高效率。這也是混合轉變。其中肯定有一個定價因素。這是一個有利的定價市場。正如我所說，我們一直在轉嫁即將發生的成本增加。我們相信毛利率將繼續擴大。我們的目標仍為 45%。正如我所說，大部分都是結構性的。

Yes. At the end of the day, customers pay for value. We have been reducing the price-to-value discrepancy like we talked about. And the LTSAs provide longer-term visibility on both revenue and margin. And when we talk about long term, we're talking about an average of 3 years. So that gives you kind of the structural nature of it and the sustainability of it moving forward.

是的。最終，顧客會為價值買單。正如我們所討論的那樣，我們一直在減少價格與價值的差異。 LTSA 為收入和利潤提供了更長期的可視性。當我們談論長期時，我們談論的是平均 3 年。這讓你了解它的結構性質以及它向前發展的可持續性。

(Operator Instructions) Your next question comes from the line of Vivek Arya with Bank of America Securities.

（操作員指示）您的下一個問題來自美國銀行證券的 Vivek Arya。

Congratulations on the strong results and the very impressive execution. Hassane, how do you see the interplay between automotive production, which has been kind of flattish, right, very weak this year, versus content and pricing? I mean there's a lot of concern that auto chip suppliers are maybe shipping a lot to inventory rather than benefiting from content or pricing or mix. I would just love your views on that from an industry, but then obviously from an ON-specific perspective. What's giving you the confidence that your sales that are exceeding units so much are really being driven by content or mix or pricing as opposed to sitting in inventory somewhere?

恭喜您取得的優異成績和令人印象深刻的執行。哈桑，您如何看待汽車生產與內容和定價之間的互動？今年汽車生產一直比較平淡，非常疲軟。我的意思是，人們非常擔心汽車晶片供應商可能會將大量貨物運送到庫存，而不是從內容、定價或組合中獲益。我很想聽聽您從行業角度對此的看法，但顯然是從 ON 特定角度。為什麼你有信心，你的銷售量超過銷售單位數這麼多，實際上是由內容、組合或定價推動的，而不是堆積在某處的庫存？

Yes. Look, I can speak for onsemi first. We track content based on design wins that we have had over the last few years that are starting to ramp and have ramped beyond what we expected in the '21 time frame. That's why we kind of can't support the demand. So from that point of view, I know exactly how much content has been going up for our customers using our products. So that ties and that gives me the confidence that it is a content growth story.

是的。你看，我可以先代表 onsemi 發言。我們根據過去幾年的設計成果來追蹤內容，這些成果正在開始成長，並且已經超出了我們在 21 世紀時間範圍內的預期。這就是我們無法滿足需求的原因。因此從這個角度來看，我確切地知道使用我們產品的客戶獲得了多少內容。所以，這讓我相信這是一個內容成長的故事。

Now as far as -- people talk about inventory being built out. Look, I gauge that. We have a lot of data to gauge it. But to me, the main gauge is the escalations that we're getting. We're still getting an intense level of escalations from our customers in order to ensure that parts go into cars and cars go out of the lot. That is a pretty good gauge for where the economy is and where our content is going. I can tell you, it's not being built up. It's going to cars. Because if we don't ship, the cars don't ship. That's a one-to-one correlation that I can personally validate given all my conversations with my peers and our customers.

現在人們談論的是庫存正在增加。瞧，我判斷了這一點。我們有大量數據可以衡量這一點。但對我來說，主要的衡量標準是我們得到的升級。為了確保零件能夠順利裝入汽車，並且汽車能夠順利出廠，我們仍不斷收到來自客戶的強烈要求。這可以很好地衡量經濟狀況和我們的內容發展方向。我可以告訴你，它還沒有被建立。它將用於汽車。因為如果我們不出貨，汽車就發不出去。根據我與同事和客戶的所有對話，我可以親自驗證這個一一對應的關係。

So both of these tell me that we are still in a supply constraint. There's not inventory out of their pockets, maybe 1 or 2 weeks of inventory here and there, yes. Because we sometimes will preship and the customers, we know, is not able to get it, but that lasts for about 1 or 2 weeks until they get our next shipment. So all of these things are manageable. We have full visibility on it, and we track it internally and with our customers. So it gives me confidence.

因此，這兩個因素都顯示我們仍然面臨供應受限的情況。他們口袋裡的庫存並不多，也許只有 1 到 2 週的庫存，是的。因為我們有時會預先發貨，我們知道客戶無法收到貨，但這種情況會持續大約 1 到 2 週，直到他們收到我們的下一批貨物。所以所有這些事情都是可以控制的。我們對此有全面的了解，並在內部和客戶範圍內進行追蹤。所以這給了我信心。

Got it. Very helpful. And for my follow-up, Thad, great job on the gross margin side. But when I look at the incremental margins in Q3 and then the midpoint of Q4, it's over 100%. I imagine part of it is the exit from the noncore areas. But could you help us bridge what your original assumption was for kind of gross margin? Why is it coming at these levels? But then also importantly, you're at these kind of low 40s gross margins already before completing a lot of the actions that were supposed to take you to the 45% journey. So is 45% still the end kind of destination of this journey? Or do you think that this very strong start gives you confidence that there are maybe levers to gross margins beyond what you have contemplated?

知道了。非常有幫助。我的後續問題是，Thad，你在毛利率方面做得很好。但當我查看第三季和第四季中點的增量利潤率時，它超過了 100%。我想部分原因是退出非核心地區。但是您能幫助我們了解您最初對毛利率的假設嗎？為什麼會出現這種程度的現象？但同樣重要的是，在完成許多原本可以讓你實現 45% 毛利率的行動之前，你的毛利率已經低於 40% 了。那麼 45% 仍然是這段旅程的最終目的地嗎？或者您認為，如此強勁的開局讓您有信心，也許存在超出您預期的毛利率槓桿？

Look, we've always said 45% was a milestone, right, and that we would talk once we got there. We're not changing that target. The improvement that we've seen has been through operational efficiencies, favorable mix and then, clearly, pricing. If you go back to the chart that I showed in the Analyst Day, we provided the bridge.

你看，我們一直說 45% 是一個里程碑，對吧，一旦達到這個目標我們就會談論。我們不會改變這個目標。我們所看到的改進是透過營運效率、有利的產品組合以及顯然還有定價來實現的。如果您回顧我在分析師日展示的圖表，您會發現我們提供了橋樑。

The next big piece of the improvement is really the manufacturing -- the fab lighter footprint, right? And that's the part we've always said that would take the longest and would be the hardest to get. And it's about exiting the fabs and consolidating into more efficient fabs, ramping the 300-millimeter fab. And that's the next leg that we've got to execute on.

下一個重大改進實際上是製造——工廠的佔地面積更小，對嗎？我們一直說，這將是花費最長時間、最難實現的部分。這是為了退出晶圓廠並整合成更有效率的晶圓廠，並擴大 300 毫米晶圓廠的生產。這就是我們必須執行的下一步。

So I think what we've been able to pull forward on is favorable mix, operational efficiencies and then clearly, a good pricing environment has helped. But the -- what I think is going to get us to that next level of 45% is the manufacturing piece. And then once we get there, we'll talk about what the end goal should be. But we've never stated 45% would be the end goal as much as it was a milestone that we'd be looking to achieve.

因此，我認為我們能夠推動的是有利的組合、營運效率，當然良好的定價環境也起到了幫助作用。但是，我認為，讓我們達到 45% 這一個水平的是製造部分。一旦我們到達那裡，我們就會討論最終目標是什麼。但我們從未表示 45% 是最終目標，而只是我們希望實現的里程碑。

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

您的下一個問題來自高盛的Toshiya Hari。

Congrats on the strong results. Hassane, in your prepared remarks, you talked a little bit about Southeast Asia and your operations there being a little bit disrupted in the quarter. Can you speak to any impact on revenue and gross margins in the quarter and where your operations are today? And then I've got a quick follow-up.

恭喜您取得的優異成績。哈桑，在您準備好的發言中，您談到了東南亞的情況，並談到了本季度貴公司在那裡的業務受到的一些幹擾。您能否談談這對本季的營收和毛利率有何影響，以及您目前的營運狀況？然後我會快速跟進。

Yes. This is Thad. So we talked about our utilization came down slightly to 80%. We think that should return back into normal levels of low 80%. We think it had minimal impact on this quarter primarily because we were able to allocate those resources and that capacity into other sites and recover from it.

是的。這是薩德。因此我們討論我們的利用率略微下降到了 80%。我們認為應該會恢復到 80% 以下的正常水準。我們認為它對本季的影響很小，主要是因為我們能夠將這些資源和容量分配到其他站點並從中恢復。

The sites are stabilizing now. They're not back up to full speed yet, but we think they'll be there very quickly. And that's why we think the utilization comes back up into normal run rate levels here pretty quickly.

目前，這些地點正在逐漸​​穩定。它們尚未恢復全速，但我們認為它們很快就會恢復。這就是我們認為利用率很快就會恢復到正常運作率水準的原因。

Got it. That's helpful. And then as my follow-up, I wanted to ask about Q1 of next year. I think historically, pre-COVID seasonality would drive business down a little bit. I think pricing, some of the adjustments that you would make historically would hit Q1 disproportionately. Curious how we should be thinking about Q1 into next year, just given how strong the environment is. You talked about all the design wins and the visibility you have into the quarter. So should Q1 of '22 be above seasonality? And again, how should we think about pricing and gross margins into the March quarter as well?

知道了。這很有幫助。然後作為我的後續問題，我想問明年第一季的情況。我認為從歷史上看，疫情之前的季節性會導致業務略有下滑。我認為定價，你過去所做的一些調整會對第一季造成不成比例的影響。好奇考慮到當前的環境如此強勁，我們應該如何考慮明年第一季的情況。您談到了所有設計的勝利以及您對本季的了解。那麼 22 年第一季的表現是否應該高於季節性？那麼，我們該如何考慮三月季度的定價和毛利率呢？

Well, we're not going to give you guidance for Q1, right? We only guide one quarter at a time. But normal seasonality for Q1 is down 2% to 3%. Based on what we see today, we're going to perform better than that. What we can see in terms of backlog and supply coming online, we're probably looking at flat to what our Q4 number is going to be. But we're not going to provide more guidance than that.

嗯，我們不會給你第一季的指導，對嗎？我們每次僅指引一個季度。但第一季的正常季節性下降了 2% 至 3%。根據我們今天看到的情況，我們的表現將會更好。從積壓訂單和上線供應來看，我們可能會預期其數量與第四季的數字持平。但我們不會提供更多指導。

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

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

First of all, Strong congratulations. Tremendous execution effort here. Hassane, I wanted to ask a broader question just above the (inaudible) and the data. Maybe you could help us with -- I know that EVs are near and dear to your heart, and you're making a pretty big bet on that front.

首先，我表示熱烈的祝賀。這裡需要付出巨大的執行努力。哈桑，我想問一個更廣泛的問題，就（聽不清楚）和數據而言。也許您可以幫助我們——我知道您對電動車非常感興趣，而且您在這方面下了很大的賭注。

Two things. How much do you -- how much revenue do you think you get from EVs today? And then once you start to get to your -- I think you said $1 billion in 2023, let's say, exiting 2023, how much of your business will be EVs at that point in time? Throwing in ADAS and all that other stuff you guys do.

兩件事。您認為目前您能從電動車中獲得多少收入？然後，一旦你開始實現——我想你說過 2023 年的目標為 10 億美元，那麼，到 2023 年底，你的業務中有多少是電動車？加入 ADAS 和你們做的所有其他東西。

Look, we're not breaking out the EV revenue today. I gave the outlook just to highlight the growth that we're seeing, but more importantly, to highlight the penetration of silicon carbide getting to the run rate of $1 billion. We've always said over the next few years, we're going to see a coexisting of IGBT and silicon carbide. But silicon carbide is starting to accelerate as customers see the efficiency of it, coupled with our technology on packaging. So that is going to accelerate our ramp in silicon carbide to get to that run rate above $1 billion by 2023, which is very meaningful from where we are today, and that revenue trajectory getting to the $1 billion is basically doubling for us every year.

你看，我們今天不會公佈電動車的收入。我給出展望只是為了強調我們所看到的成長，但更重要的是，強調碳化矽的滲透率達到 10 億美元的運作率。我們一直說，在未來幾年，我們將看到IGBT和碳化矽的共存。但隨著客戶看到了碳化矽的效率，再加上我們的封裝技術，碳化矽的發展開始加速。因此，這將加速我們碳化矽業務的成長，到 2023 年實現超過 10 億美元的營業額，這對我們目前的情況來說非常有意義，而且達到 10 億美元的收入軌跡基本上每年翻一番。

I'll be providing more of that color as we start ramping. But at this point, that's kind of the level I'm going to be talking about. But I'm very comfortable with the EV ramp. A lot of people -- we've been talking about EV ramps and content for a few years now. Now we have it. It's starting. Customers have the LTSAs to guarantee for their supply, and we're going to be supporting their growth along with ours.

當我們開始增加時，我將提供更多此類顏色。但此時此刻，我要談論的就是這個層面。但我對 EV 坡道非常滿意。很多人——我們已經談論電動車坡道和內容好幾年了。現在我們擁有了它。開始了。客戶擁有長期供應協議 (LTSA) 來保證他們的供應，而我們將在支持我們自身發展的同時也支持他們的成長。

Very well. And then for my second question, you've got -- I think Vivek mentioned, you've got a long-term target of 45%. You're guiding to 43%. I guess I wanted to just make sure that there's no near-term sort of things that are helping you here, that it's all structural. Could you maybe just give us some color on how much the strong ASPs helped you versus legacy business reduction, which I think we can calculate also? Also, you're supposed to sell fabs, and we haven't seen much of a progress on that front. But I'm looking at it and seeing you're already at low 80s utilization. Why would you even need to sell fabs going forward as you grow?

非常好。然後對於我的第二個問題，我認為 Vivek 提到過，您的長期目標是 45%。您正在引導至 43%。我想我只是想確保短期內不會有什麼事情對你有幫助，這一切都是結構性的。您能否跟我們講一下強勁的 ASP 對你們的幫助有多大，相對於傳統業務的減少，我想我們也可以計算一下？此外，你應該出售晶圓廠，但我們在這方面還沒有看到太大的進展。但我觀察了一下，發現你的使用率已經低於 80%。為什麼隨著公司的發展你還需要出售晶圓廠呢？

Yes. Look, a lot of it -- most of it is self-help. We talked -- Thad talked about the increase in units sold. Those unit increases are based on favorable margin mix. So you're already starting to see that mix shift. We've already talked about walking away from the $100 million at 15%. I've always said, even in this pricing environment, low margin is low margin. And we will actively walk away from that business and move it to the auto and industrial that for us are driving higher margin. All of these things are self-help and, of course, sustainable.

是的。你看，其中很多——大多數都是自助的。我們談論了——泰德談論了銷售量的成長。這些單位數量的增加是基於有利的利潤組合。因此，您已經開始看到這種混合轉變。我們已經討論過以 15% 的利率放棄 1 億美元。我一直說，即使在這種定價環境下，低利潤就是低利潤。我們將積極放棄該業務，轉向能夠為我們帶來更高利潤的汽車和工業業務。所有這些事情都是自助式的，當然也是永續的。

The other thing -- over the last year, the other thing that worked in our favor is the utilization. And that's sustainable, as you mentioned, as we wind down some of our fabs and we restructure and do the fab manufacturing optimization. That utilization is going to be and remain at that higher level, even with that 10% to 15% reduction in the noncore business. So all of these, I would say, are self-help.

另一件事——在過去的一年裡，對我們有利的另一件事是利用率。正如您所說，這是可持續的，因為我們關閉了一些晶圓廠，進行了重組並進行了晶圓廠製造優化。即使非核心業務減少 10% 至 15%，利用率仍將維持在高水準。所以我想說，所有這些都是自助的。

As far as the current pricing environment, there are 2 things that I would talk about in pricing. One is passing on the price increases to our customers. That's gross margin neutral to us because we're passing on cost increases that we have incurred to our customers. So that -- you can think of it as the margin neutral for us. The other one is the price-to-value discrepancy where we have products of high value that historically, for whatever reason, we're shipping below market. And those adjustments are sustainable because that's the value of the product that many other customers buy.

就當前的定價環境而言，我想談兩件事。一是將價格上漲轉嫁給我們的客戶。這對我們來說是毛利率中立的，因為我們將產生的成本增加轉嫁給了客戶。所以 — — 您可以將其視為我們的利潤中立。另一個是價格與價值的差異，我們的產品價值很高，但從歷史上看，無論出於何種原因，我們的發貨價格都低於市場價格。這些調整是可持續的，因為這是許多其他顧客購買的產品的價值。

So all of these are structural, and we just have to stay ahead of the manufacturing utilization as we wind down that 10% to 15% remaining of the low-margin business. And we're going to get there, as we talked about in our Analyst Day. So all of these are going to yield to a structurally sustainable financial model. And when we get there, we'll talk about how to go to the next level.

因此，所有這些都是結構性的，我們必須在逐步減少剩餘的 10% 到 15% 的低利潤業務時保持領先的製造利用率。正如我們在分析師日上所談論的那樣，我們將實現這一目標。因此，所有這些都將遵循結構可持續的金融模式。當我們到達那裡時，我們會討論如何進入下一個階段。

Yes. Harsh, I would add on the manufacturing sites, we're still planning on exiting the manufacturing sites. We've got the 300-millimeter fab coming online later next year, at the end of '23, that we take ownership. So we've got to fill that fab that gives us a better cost advantage as well. And you saw that we were building inventory on the balance sheet to support those fab transitions. So we've always said it's not about handing the keys to somebody. It's about the exit and the qualification process and the exit over time.

是的。哈什，我想補充製造基地，我們仍然計劃退出製造基地。我們的 300 毫米晶圓廠將於明年晚些時候，也就是 23 年底上線，我們將接管該晶圓廠。所以我們必須填補這個能為我們帶來更好成本優勢的晶圓廠。並且您可以看到，我們正在資產負債表上建立庫存，以支持這些晶圓廠的轉型。所以我們一直說，這不是把鑰匙交給某人的問題。這是關於退出和資格流程以及隨著時間的推移而退出的問題。

So even though we haven't announced a divestiture of those fabs, we're making progress in qualifying those products in other locations that are more efficient, and we're building the inventory for that transition. So the progress is underway.

因此，儘管我們尚未宣布剝離這些晶圓廠，但我們在其他更有效率的地點認證這些產品方面取得了進展，並且正在為這種轉變建立庫存。進展正在進行中。

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

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

I want to echo my congrats on the excellent results. Hassane, I wanted to delve a little bit deeper in the long-term agreements that you're seeing in your business. You talked about $2.5 billion of committed business, particularly $2 billion in SiC and for EVs, and 2/3 was related to the traction inverters. Could you maybe describe what you're seeing in that market? It seems like you have the products, the right products to align for the future growth. Can you talk a little bit about the qualification process, the engagement with your customers on that massive kind of committed capital committed to business?

我要對所取得的優異成績表示祝賀。哈桑，我想更深入地探討你在業務中看到的長期協議。您談到了 25 億美元的承諾業務，特別是 SiC 和電動車領域的 20 億美元，其中 2/3 與牽引逆變器有關。您能否描述一下您在該市場看到的情況？看起來你們擁有產品，擁有適合未來成長的正確產品。您能否談談資格認證流程，以及您與客戶就如此大規模的業務投入資本的互動情況？

And then just more broadly, are you seeing in the industry a shift, a transition to more longer-term commitments, better visibility from your customers in response to the component shortages that we've seen this year? Are you seeing a change in behavior from your customers to enter into longer-term supply agreements to get access to that supply?

那麼從更廣泛的角度來看，您是否看到行業發生了轉變，轉向更長期的承諾，以及客戶對今年出現的零件短缺的更好的了解？您是否發現客戶的行為發生了變化，他們開始簽訂更長期的供應協議來獲取供應？

Yes. And so -- absolutely, Raji. Let me talk about the first one. So the first one is, I would say, a very different engagement model for the design-in capability. When you're talking about a product that is fit for purpose for a customer inverter, traction inverter, every car is different, whether it's performance or range or heavy duty and so on. All of these variables are what our team and the customer's team take into account in order to get a design in.

是的。所以——當然，拉吉。我先講第一個。所以我想說，第一個是設計能力的非常不同的參與模型。當您談論適合客戶逆變器、牽引逆變器用途的產品時，每輛車都是不同的，無論是性能、續航里程還是重型等等。為了完成設計，我們團隊和客戶團隊都會考慮所有這些變數。

I highlight that to give you the visibility that it's not a dual-source concept. It is a design-in concept that leads to the design win. And that's why customers want to have that problem solved on their side. The long-term supply agreement is the next natural step because if and when we give them a traction inverter that provides much better efficiency than any of our competitors, they will either co-invest or give us the LTSA or -- and give us the LTSA over a longer period of time, at least through the run rate of that product and then some. So that's the stickiness of the revenue that I talked about that I referred to, stickiness from a design win perspective. It's not something that is swappable, but also stickiness from the commitment that the customers are providing to us.

我強調這一點是為了讓你們明白這不是一個雙源概念。這是一個導致設計成功的設計理念。這就是為什麼客戶希望能從他們這邊解決這個問題。長期供應協議是下一個自然步驟，因為如果我們向他們提供比任何競爭對手效率都高得多的牽引逆變器，他們要么共同投資，要么給我們 LTSA，或者 - 在更長的一段時間內給我們 LTSA，至少通過該產品的運行率，然後再做一些。這就是我提到的收入黏性，從設計獲勝角度而言的黏性。這不是可以交換的東西，也是客戶對我們承諾的黏性。

Which leads to the second level, and the answer is yes. The engagement model is different. It's not equal to everything. There are products where they're not strategic potentially for our customers. However, they are important. We're not going to lock up capacity with a long-term agreement. But when we talk about strategic components like silicon carbide, like IGBT, like the 48-volt rail, like the strategic PMICs that I talked about that go along with our ADAS or cameras or the image sensors. All of these are key products that enable differentiated technologies to our customer, whether it's traction or vision with ADAS. Those customers do want the stability, and they do want the supply resiliency that we are able to provide to them through the long-term agreements. And that's the model that is -- we're moving to with a lot of customers. Again, it's not 100%, but it is strategic and surgical like I've always talked about when it comes to LTSAs.

這就引出了第二個層次，答案是肯定的。參與模式有所不同。它並不等於一切。有些產品對我們的客戶來說不具有潛在策略意義。然而，它們很重要。我們不會透過長期協議來鎖定產能。但當我們談論戰略組件時，例如碳化矽、IGBT、48伏導軌以及我所談論的與我們的ADAS或攝影機或影像感測器配合使用的戰略PMIC。所有這些都是為我們的客戶提供差異化技術的關鍵產品，無論是牽引力還是帶有 ADAS 的視覺。這些客戶確實想要穩定性，他們確實希望我們能夠透過長期協議為他們提供供應彈性。這就是我們正在與眾多客戶共同轉向的模式。再說一遍，這不是 100%，但它是戰略性和手術性的，就像我在談論 LTSA 時一直在談論的那樣。

And for my follow-up...

接下來是…

(inaudible)

（聽不清楚）

Go ahead, Thad.

繼續吧，泰德。

No. Go ahead.

不，繼續吧。

No. I was just saying for my follow-up -- and thanks for the insight, Hassane, on that. It does relate to the pricing question, but it's more of, again, structural on a positive side. You obviously are seeing some price increases. But would you say that the days of kind of heavily deflationary pricing for semis are starting to come to an end or at the very least, the price declines will start to abate going forward because of the strategic importance of these components in -- for ADAS, EVs, for industrial automation? Do you think this is more structural in nature where the pricing environment maybe not be as high as it is now but could continue to be favorable over the coming years? Or do you still -- do you view this as more temporary?

不，我只是說我的後續問題——感謝哈桑對此的見解。它確實與定價問題有關，但從積極的一面來看，它更多的是結構性的。您顯然看到了一些價格上漲。但是，您是否認為半導體價格嚴重緊縮的日子即將結束？或者至少，由於這些零件對 ADAS、電動車和工業自動化具有戰略重要性，價格下跌的趨勢將開始減弱？您是否認為這在本質上更具結構性，即定價環境可能不會像現在這麼高，但在未來幾年可能繼續保持有利？或者您仍然——您認為這只是暫時的嗎？

No. I think it is also sustainable. I don't think the pricing benefit that we historically give our customers year-over-year is going to disappear, but it definitely will be very muted for these new ramps given the capital intensity that is required to ramp those products and get them up. They're not going to be under your traditional, "Hey, every year, give me x percent or else." Those days are over for these strategic ones. So that's what gives me comfort in investing in the CapEx in order to increase that -- to match that demand.

不，我認為它也是可持續的。我認為，我們過去每年為客戶提供的價格優惠不會消失，但考慮到增加這些產品和提高其產量所需的資本密集度，對於這些新的產量增加來說，這種優惠肯定會非常微弱。他們不會遵循你的傳統，「嘿，每年給我x%否則。」對於這些戰略家來說，那些日子已經結束了。因此，我願意投資資本支出來增加這筆金額，以滿足需求。

We work with our customers on efficiencies that we are able to get or efficiencies they're able to get because, look, if our products allow our customers to shave off $1 or $2 in metal because of heating, given the efficiency of our products, it's still money. I don't have to give that savings, but if I enable it, that's still savings on an end unit price, which is the car. That's what makes our solution attractive is because the efficiency drives a lot more cost reduction outside of the semiconductor than it is in the semiconductor, and that's very attractive to our customers.

我們與客戶共同努力，提高我們所能獲得的效率或他們所能獲得的效率，因為，如果我們的產品可以讓客戶因為加熱而節省 1 美元或 2 美元的金屬成本，考慮到我們產品的效率，這仍然是錢。我不必給出這些節省，但如果我啟用它，那仍然可以節省最終單價，也就是汽車。這就是我們的解決方案具有吸引力的原因，因為效率推動了半導體外部的成本降低，而不是半導體內部的成本降低，這對我們的客戶來說非常有吸引力。

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 follow-up question on the LTSAs. And if you could clarify, what are the obligations from both you and the customers over those agreements? What are they promising you? What are you promising them? And within those agreements, one of the investor concerns right now is one day, demand will probably slow from these levels. So what are the provisions in there that protect you and protect them in the event that the demand winds up being different than what's envisaged over those agreements?

這只是一個關於 LTSA 的後續問題。您能否澄清一下，您和客戶對於這些協議的義務是什麼？他們向你承諾了什麼？你向他們承諾了什麼？在這些協議中，投資者目前擔心的問題之一是，有一天，需求可能會從這些水平放緩。那麼，如果最終的需求與這些協議所設想的不同，其中有哪些條款可以保護您和他們？

Look, when we talk about LTSAs, we are focusing on the strategic intent. Let me talk about silicon carbide or EVs, IGBT and silicon carbide as an example. So to me, that demand and that ramp is happening. EVs are happening. EVs are driven by companies and driven by customers themselves.

你看，當我們談論 LTSA 時，我們關注的是戰略意圖。先講一下碳化矽或電動車，以IGBT和碳化矽為例。所以對我來說，這種需求和這種成長正在發生。電動車正在興起。電動車由企業驅動，也由消費者自己驅動。

So if the ramp is shifting 1 quarter or 2 quarters or whatever, you know what, we'll work with customers. What they get and what customers are getting is the supply assurance that when they do ramp, we will be able to support their ramp.

因此，如果產量變化 1 個季度或 2 個季度或其他什麼情況，您知道嗎，我們都會與客戶合作。他們和客戶得到的是供應保證，當他們增加產量時，我們將能夠支持他們的增加產量。

Now what gives me the confidence in the ramps that we are signing up for with our customers is when a customer co-invests with you in order to support the ramp, that's a pretty high confidence and high credibility of the ramp because everybody -- it's easy to say they're going to be the kings of the world when it comes to EV. But when a company says and puts money down on it as a co-investment in order to get their ramp and their supply assurance, that tells me that they're going to be winners in that market because they're putting their money where their mouth is. And we will be doing the same through our CapEx intensity that Thad talked about. We're increasing it in order to support those ramps.

現在，讓我對我們與客戶簽約的Ramping充滿信心的是，當客戶與您共同投資以支持Ramping時，這對Ramp來說是一個相當高的信心和高可信度，因為每個人 - 很容易說，當談到EV時，他們將成為世界之王。但當一家公司表示願意投入資金作為共同投資以獲得產能和供應保證時，這表明他們將在該市場上獲勝，因為他們說到做到。我們將透過 Thad 談到的資本支出強度來做同樣的事情。我們正在增加它以便支撐這些坡道。

So we get the long-term visibility. We get the sustainability of the revenue and the margin associated with it. We have confidence in investing our CapEx to expand for that capacity. And the customers get the confidence that they're going to get it when they are ready for ramp and that the customer will ramp on time when the time comes, given the time line of the LTSAs.

因此我們獲得了長期的可見性。我們獲得了收入及其相關利潤的可持續性。我們有信心投資資本支出來擴大產能。並且，客戶可以放心，當他們準備好量產時，他們將會得到產品，並且根據 LTSA 的時間表，客戶也將按時量產。

So all of these give me that confidence. Again, I'm not going after LTSAs for all of our products. I am very, very selective and being very strategic about what to get the LTSAs in order not to have that issue that you talked about.

所有這些都給了我信心。再說一遍，我不會對我們所有的產品實行 LTSA。我非常非常謹慎，並且非常有策略地選擇如何獲得 LTSA，以避免您提到的問題。

Great. That's very helpful. As a follow-up, I guess, maybe you can give us some sense of how much of the business now is kind of within that strategic framework that you speak of. And I suppose some of it's within the LTSAs, some of it's not. But I guess the question is, over time, we've seen pricing for onsemi typical years kind of down 5% a year, and that's made up with cost reductions.

偉大的。這非常有幫助。作為後續問題，我想，您可以讓我們了解現在有多少業務屬於您所說的戰略框架。我認為其中有些是在 LTSA 範圍內，有些則不在。但我想問題是，隨著時間的推移，我們看到半導體典型年份的價格每年下降 5%，這是由成本降低所彌補的。

It sounds like for a large part of your business, you're working with a different framework. What about for the rest of the business? Are there structural things happening both within ON and the industry, which will prevent that price decline and make things more sticky even in the event of an industry downturn?

聽起來，對於您的大部分業務來說，您正在使用不同的框架。其餘業務怎麼樣？ ON 內部和行業內部是否存在結構性變化，從而阻止價格下跌，並在行業低迷的情況下使情況變得更加棘手？

Look, We're not the ON Semiconductor that you're used to. We're the new onsemi, and our focus is on strategic products and sustainable financial model. Part of that business that we are walking away from, the $100 million at 15% margin that Thad was talking about, that's the behavior that you are describing, where an up is good and down, you have to give a lot of pricing to maintain share.

你看，我們不是你們習慣的安森美半導體公司。我們是新的安森美半導體公司，我們的重點是策略產品和永續財務模型。我們正在放棄的部分業務，即薩德所說的利潤率為 15% 的 1 億美元業務，就是您所描述的行為，上漲是好的，下跌則必須給出很高的定價才能維持份額。

I don't care about that business. I only care about the proprietary business that adds value to the customer. When you have proprietary business, even silicon carbide as an example, those are sustainable from both pricing and a margin perspective. We are no longer chasing fab fillers in a downturn, which is what historically the company has done. We are moving the mix that goes into our fabs to proprietary and high-value products. And those are not going to be fluctuating based on what the end market does. That's a new company we are. That's a new company we are delivering results against that you see today. And that gives me the confidence of the sustainability of our model moving forward, regardless of what the market does.

我不關心那件事。我只關心能為客戶增加價值的專有業務。當你擁有專有業務時，即使以碳化矽為例，從定價和利潤的角度來看，這些都是可持續的。我們不再在經濟低迷時期追逐晶圓廠填充物，而這正是公司歷史上所做的。我們正在將進入我們晶圓廠的產品組合轉向專有和高價值產品。這些不會隨著終端市場的變化而波動。我們是一家新公司。這是一家新公司，我們正在為此提供您今天所看到的成果。無論市場如何變化，這都讓我對我們的模式的可持續性充滿信心。

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

您的下一個問題來自瑞士信貸的約翰·皮澤 (John Pitzer)。

So just quickly going back to the auto sector. If you read some third-party reports, the industry might miss out on as much as $220 billion of revenue this year because they don't have chip inventory. I'm just kind of curious, as you talk to the auto supply chain, whether or not you think they're going to structurally change the way they think about their inventory and their partners going forward. And the LTSAs are great. I'm kind of curious if you've explored the idea of actually taking some customer capital, especially as you work to build out your silicon carbide capacity.

我們很快就回到汽車產業。如果你讀過一些第三方報告，你就會知道，由於沒有晶片庫存，該行業今年可能會損失高達 2200 億美元的收入。我只是有點好奇，當您談到汽車供應鏈時，您是否認為他們會從結構上改變他們對庫存和合作夥伴的看法。 LTSA 非常棒。我有點好奇，您是否考慮過實際利用一些客戶資本的想法，特別是當您致力於擴大碳化矽產能時。

Yes. So let me just touch on the last one. We have taken customer capital through the form of investment or co-investments in our capacity expansion. So that model is new, and we've opened it up to customers and some customers are -- have taken us up on it.

是的。讓我只談最後一個問題。我們透過投資或共同投資的形式獲取客戶資本來擴大我們的產能。所以這個模型是新的，我們已經向客戶開放了它，而且有些客戶已經接受了我們的模型。

The model is changing. Let me put it this way. You talked about the $200 billion in revenue. Nobody wants to be in that spot anymore. So there are customers that unfortunately are still in denial. And that's okay -- not okay for them. That's okay for me. We're doubling down with customers who get it, who do understand the importance of semiconductor, the importance of the power and sensing in the future of mobility. Those are the customers that have jumped on the opportunity to secure supply.

模型正在改變。讓我這樣說吧。您談到了 2000 億美元的收入。沒人想再處於那種境地。因此不幸的是，有些客戶仍然拒絕接受這一事實。這沒關係——但對他們來說不可以。對我來說沒問題。我們正在加倍努力與那些理解這一點、了解半導體的重要性、以及電源和感測在未來行動領域的重要性的客戶合作。這些客戶都抓住了機會以確保供應。

Now I'll mention one thing. There is a shift for customers to go with credible suppliers, suppliers -- credible suppliers of scale that is very important because supply resilience is a hot button for all customers, all the way to the OEM. My personal engagements with OEM are about supply resilience, not just supply assurance. And our ability to be able to have a product running in 2 geographically independent locations in a lot of cases give that supply resilience to our customers, where it may not be COVID, but we always have disruption. We've had disruptions for the last 4 to 5 years.

現在我要提一件事。客戶開始轉向可靠的供應商，供應商——具有規模的可靠供應商，這一點非常重要，因為供應彈性是所有客戶（一直到 OEM）關注的熱門話題。我個人與 OEM 的合作是為了供應彈性，而不僅僅是供應保證。我們能夠在兩個地理位置獨立的地點運行一款產品，在許多情況下，這為我們的客戶提供了供應彈性，雖然可能不是因為 COVID，但我們總是會遇到中斷。在過去的四、五年裡，我們一直處於混亂之中。

So having that supply resilience and proving it to the customer supports their business continuity because they don't have to build inventory and hoard inventory. They can depend on us. That matters in the selection process today. It's not only about the products. Of course, you have to have products that are proprietary and high efficiency to win. But to get selected longer term as a strategic supplier with the co-investment, we're talking about much more than that.

因此，擁有這種供應彈性並向客戶證明這一點可以支持他們的業務連續性，因為他們不必建立庫存和囤積庫存。他們可以信賴我們。這對於今天的選擇過程至關重要。這不僅與產品有關。當然，要獲勝你必須擁有專有的、有效率的產品。但為了透過共同投資而被長期選為策略供應商，我們談論的遠不止這些。

And then Hassane, as my follow-up, I kind of want to go back to the idea of whether this is cyclical versus structural. And I guess in your auto and your industrial business, you've done a great job sort of laying out the structural thesis, which is fairly easy to underwrite. I kind of want to think about the other bucket a little bit. If I add back the $60 billion of divestitures, I'm assuming most of that's coming in other. That other bucket is up over 30% year-over-year. And it's up almost, I believe, about high single digits sequentially, so even outgrowing your auto business. When you think about that other bucket, was there sort of value discrepancy that the old ON wasn't pricing right? Or is that somewhere where we might have to be a little bit worried about the cyclical pricing leverage today that might go away tomorrow?

然後，哈桑，作為我的後續問題，我想回到這個問題：這是週期性的還是結構性的。我想，在您的汽車和工業業務中，您在闡述結構性論點方面做得非常出色，這相當容易接受。我有點想考慮另一個桶子。如果我把 600 億美元的資產剝離加上去，​​我假設其中大部分都來自其他方面。另一部分則是年增了 30% 以上。而且我相信，它的銷量比上一季成長了近個位數，甚至超過了汽車業務的成長。當您考慮另一個儲存桶時，是否存在舊 ON 定價不正確的價值差異？還是我們需要有點擔心今天的周期性定價槓桿，而這種槓桿明天可能會消失？

Yes. No, look, you don't have to worry about that. What we talked about other, that doesn't equate it to noncore or declining or commodity either. What we put in other -- for example, we have a lot of our industrial that is not necessarily power. That goes into there. That's actually very accretive margin already. So what you're seeing a lot of it is the benefit of that high margin in the other bucket that is not getting diluted by that $100 million or 60% of it this quarter at the 15% margin.

是的。不，你看，你不必擔心這件事。我們談論的其他內容並不等於非核心、衰退或商品。我們在其他方面的投入——例如，我們有很多工業並不一定是電力。那就進入那裡了。這其實已經是非常可觀的增值利潤了。因此，您看到很多的是其他高利潤帶來的好處，這筆錢並沒有被本季的 1 億美元或 60% 稀釋，利潤率為 15%。

So there are highly proprietary products even in the other. They just don't fall under the power and sensing. And that's part of our -- describing our company. So I don't want to equate others to not important to the company. That's why you see the growth being across the board. But the drag from the $100 million is -- most of it is in that other bucket.

因此，即使在其他國家，也存在著高度專有的產品。他們只是不具備力量和感知能力。這就是我們公司描述的一部分。所以我不想把別人劃歸為對公司不重要。這就是為什麼你會看到全面成長。但這 1 億美元的拖累在於——其中大部分都在另一個桶子裡。

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

您的下一個問題來自摩根大通的 Harlan Sur。

Congratulations on the solid results and execution. The intelligent sensing business, if I look at it, first 9 months of this year has undergrown both your auto and industrial, right? But however, on a year-over-year and quarter-over-quarter, the trends actually have been improving every single quarter this year. I know that it's been heavily supply constrained because most of this business is outsourced. So it looks like your foundry partners are increasing their supply. But do you guys expect this segment to also be constrained through most of 2022? And then Hassane, can you just give us an update on your efforts to bring in some of the image sensor manufacturing in-house?

恭喜您取得了堅實的成果和執行力。如果我看一下，智慧感測業務，今年前 9 個月的成長速度已經低於你們的汽車和工業業務，對嗎？然而，與去年同期和今年每季相比，趨勢實際上都在改善。我知道由於大部分業務都是外包的，所以供應受到嚴重限制。因此看起來您的代工合作夥伴正在增加供應。但是你們是否預計這一部分在 2022 年的大部分時間內也會受到限制？然後 Hassane，您能否向我們介紹一下您在內部引入部分影像感測器製造的最新進展？

Yes. So Harlan, you said it right. That business is primarily -- all of it is external manufacturing, and that has been constrained throughout 2021. We're starting to see a little bit more capacity being directed to us because of the growth that we're seeing and really because of the impact that it has on automotive. So we're getting secure -- more secure supply. And you're going to see that increasing through next year.

是的。所以哈蘭，你說得對。該業務主要是——全部都是外部製造，並且在 2021 年受到限制。我們開始看到更多的產能轉向我們，因為我們看到的成長，以及它對汽車的影響。因此我們的供應更加安全。而且明年你會看到這個數字還會繼續成長。

So having said that, we do have an effort for new products, of course, to bring in-house. We're -- you're not going to see us do a very big shift of existing products, just moving them in. But we do have a healthy funnel of new product development, and we already have products taped out in East Fishkill, imaging products. Our new imaging products are taped out in East Fishkill. So we're going to have fab -- call it, the flex fab strategy for imaging, where we'll maintain externally but we're also going to double down on the internal in order to expand our supply over the next few years.

話雖如此，我們確實在努力將新產品引入公司內部。我們——你不會看到我們對現有產品進行很大的轉變，只是把它們搬進來。但我們確實有一個健康的新產品開發管道，而且我們已經在東菲什基爾錄製了產品，成像產品。我們的新成像產品已在東菲什基爾完成流片。因此，我們將擁有晶圓廠——我們稱之為成像的柔性晶圓廠策略，我們將在外部進行維護，但我們也將加倍投入內部，以便在未來幾年擴大我們的供應。

I appreciate the insights there. And then -- and maybe as a follow-up to that. So on East Fishkill, in the transition to 300 millimeter, the handoff doesn't occur until, I guess, end of next year, but you are in the midst of qualifying numerous products. You guys will be benefiting from the better economics of 300-millimeter manufacturing. But driving strong yields will be critical to achieving those lower costs and increased capacity. I know it's early, but how are yields trending on the processes that are being qualified at East Fishkill?

我很欣賞那裡的見解。然後 —— 也許是對此的後續。因此，在東菲什基爾，在向 300 毫米的過渡中，交接要到，我猜，明年年底才會發生，但你正在對眾多產品進行鑑定。你們將從 300 毫米製造帶來的更好的經濟效益中受益。但提高產量對於降低成本和提高產能至關重要。我知道現在還為時過早，但在 East Fishkill 進行的驗證流程的產量趨勢如何？

Look, yields are -- of course, I compare yields to production yields in every fab that we have for the specific technology. And the yields are exactly where they need to be to run full production in a 300-millimeter environment. A lot of our power devices are already -- or have been shipping for a few quarters now out of East Fishkill at production yields. So I'm not concerned about the yield.

你看，產量是——當然，我會將產量與我們在特定技術的每個晶圓廠的生產產量進行比較。而且良率正好達到了在 300 毫米環境中全面生產所需的水平。我們的許多功率元件已經——或者已經以生產良率從東菲什基爾發貨幾個季度了。所以我並不擔心收益。

Of course, when you move new technology that is very complex, like image sensing, you have to work on yield. But I will tell you today, we do have a yielding product that is imaging on our boards. So again, we're out of the research side of it. We're actually in the development and production side of it across a lot of our products, and we'll keep doing that through 2022.

當然，當你採用非常複雜的新技術時，例如影像感測，你必須努力提高產量。但我今天要告訴你們，我們確實有一種可以在我們的主機板上成像的良品。因此，我們再次脫離了研究層面。實際上，我們許多產品都處於開發和生產階段，並且會持續到 2022 年。

Your next question comes from the line of Tore Svanberg with Stifel.

您的下一個問題來自 Stifel 的 Tore Svanberg。

Congratulations on the record results. Hassane, the first question is on this transition from ICE to EV. I mean it seems like the pandemic had really accelerated that transition. I don't know if there's anything that you could share with us from your end, any numbers or any data points because, clearly, that transition is accelerating materially.

恭喜你取得創紀錄的成績。哈桑，第一個問題是關於從 ICE 到 EV 的轉變。我的意思是，這場疫情似乎確實加速了這項轉變。我不知道您是否可以與我們分享任何信息，任何數字或數據點，因為顯然，這種轉變正在實質地加速。

Can you just tell me -- what transition? I missed the first part. Did you say IGBT from EV?

你能告訴我－什麼轉變？我錯過了第一部分。您說的是 EV 的 IGBT 嗎？

No, from ICE to EV.

不，從 ICE 到 EV。

ICE to EV. Look, I don't think it's the pandemic that accelerated it. I think there are a few things. One is the heightened focus on environmental responsibility that corporations have, driven by corporations and boards, driven by investors and driven by employees. All of these -- and really governmental mandates in a lot of cases, whether in the U.S., is state mandates, or in Europe is -- or in Asia, it's government mandates.

從 ICE 到 EV。聽著，我不認為疫情加速了這一進程。我認為有幾件事。一是企業更重視環境責任，這由企業和董事會、投資者和員工共同推動。所有這些 — — 在許多情況下實際上都是政府授權，無論在美國是州授權，還是在歐洲 — — 或在亞洲是政府授權。

All of these factors are driving an accelerated adoption and accelerated investment and launch of car models from ICE to EVs. That is happening. You hear a lot in the targets by 2025, x percent of cars will be EVs; by 2030, x percent of cars will be EVs. Those are hard milestones defined either by the company themselves for their own targets or by government, where you can't buy a new car unless it's EV by those times. So that's what's accelerating it.

所有這些因素都在推動從內燃機汽車到電動車的車型的加速採用、加速投資和推出。這正在發生。您會聽到很多關於 2025 年的目標，其中 x% 的汽車將是電動車；到 2030 年，x% 的汽車將是電動車。這些都是公司為自己的目標或政府定義的硬性里程碑，到那時你就不能買到新車，除非它是電動車。這就是加速這一進程的原因。

Coming out of the pandemic and meeting the demand in automotive, there's a lot more push on EV because if somebody is buying a car now, they would want a car to be an EV. Otherwise, they don't want to change it in the next 5 to 10 years. That's a very positive impact on our push to EVs and what's sustaining our growth.

隨著疫情的結束和汽車需求的滿足，電動車的發展受到了更大的推動，因為如果有人現在要買車，他們會希望買一輛電動車。否則，他們不想在未來5到10年內改變它。這對我們推動電動車的發展以及維持我們的成長產生了非常積極的影響。

A lot of the numbers I gave as far as the LTSAs for silicon carbide or IGBT or power inverters, just to highlight to everybody, all those are incremental to our baseline business today. That's pure growth, net of, of course, that 10% to 15% we're going to be walking away from. But that's sustainable growth over a 5- to 10-year period of time, and that's what makes it exciting for us. We're in the right spot.

我給了許多關於碳化矽或IGBT或電源逆變器的LTSA的數字，只是為了向大家強調，所有這些都是我們今天基線業務的增量。這是純淨成長，當然，扣除了我們將要放棄的 10% 到 15% 的成長。但這是5到10年內的可持續成長，這讓我們感到興奮。我們是在正確的地點。

That's very helpful. And as my follow-up, for Thad, the CapEx, $130 million or $140 million next quarter, is that kind of the run rate we should use for next year? Or will there be some -- another step-up potentially in the following quarter?

這非常有幫助。我的後續問題是，對於 Thad 來說，下個季度的資本支出為 1.3 億美元或 1.4 億美元，這是我們明年應該使用的運行率嗎？或者下一季可能會再出現一些進一步的成長嗎？

No. We've said starting next year, the capital intensity will go up to roughly 12% for the next couple of years. And then after that, it will moderate down to about 9%. But we will be investing. We've got more investments to make in East Fishkill. And then obviously, to support the silicon carbide, we've got investments there to make and then with the GTAT acquisition as well. So 12% for the next couple of years.

不。我們已經說過，從明年開始，未來幾年資本密集度將上升到約 12%。此後，成長率將放緩至 9% 左右。但我們會進行投資。我們在東菲什基爾還有更多投資。顯然，為了支持碳化矽，我們在那裡進行了投資，然後也收購了 GTAT。因此未來幾年的成長率將為 12%。

Congrats again.

再次恭喜。

Thank you.

謝謝。

Your next question comes from the line of Pradeep Ramani with UBS.

您的下一個問題來自瑞銀的 Pradeep Ramani。

I guess my -- I had a couple. So there's a lot of concern around pricing in your product portfolio. But I mean can you give us some color around, one, how much of your pricing actually is on a like-for-like basis? How much of it is actually like-for-like versus how much of it is benefiting from a mix shift to your products, which I would assume is a little bit more structural and longer lived? And then I have a follow-up.

我想我的——我有幾個。因此，大家非常關心您的產品組合的定價。但我的意思是，您能否向我們提供一些細節，第一，您的定價實際上在多少方面是基於同類價格的？其中有多少是實際同比變化，有多少是受益於產品組合轉變（我認為這是一種更具結構性和更長壽命的變化）？然後我有一個後續問題。

Look, I mentioned earlier on the call, most of our actions are structural because they're driven by a mix shift. We talked about walking away from the $100 million at 15 -- average 15% gross margin. Those products or that capacity just shifted to a much higher gross margin mix of products. So we replaced that $100 million with a much more structurally favorable mix as far as the margin.

你看，我之前在電話會議上提到過，我們大多數的行動都是結構性的，因為它們是由混合轉變驅動的。我們討論的是，以 15% 的毛利率放棄 1 億美元——平均 15% 的毛利率。這些產品或產能只是轉向了毛利率較高的產品組合。因此，我們用一種就利潤率而言結構更有利的組合來取代那 1 億美元。

For cost, I mentioned earlier, the price increases -- because the costs are neutral to the margin because we're passing it on to customers. We're passing it directly to customers, and therefore, that's sustainable as well. You're not going to see the benefit for it.

至於成本，我之前提到過，價格上漲——因為成本對利潤沒有影響，因為我們將其轉嫁給了客戶。我們將其直接傳遞給客戶，因此，這也是可持續的。你不會看到它帶來的好處。

Everything else that we talked about earlier from a market condition, we're walking away from that business. That $100 million is a dent in the 10% to 15%. It's about 1% to 2%. We talked about 10% to 15%. So there's still the upside on the margin expansion just from the mix moving forward. So I'm not worried about the sustainability of it. The benefit is sustainable. And the benefit is driven by value of the products that we are shipping today, and we're shipping 3% more units in Q3 than we did before. Those 3% more units are on favorable margin. That's true demand, and that is sustainable.

我們之前從市場狀況的角度談論的所有其他事情，我們都將放棄那項業務。這 1 億美元相當於 10% 到 15% 的份額。大約是1%到2%。我們討論的是10%到15%。因此，僅從未來的組合來看，利潤率仍有上升空間。所以我並不擔心它的可持續性。這種效益是可持續的。這項收益是由我們今天運送的產品的價值所驅動的，我們第三季運送的單位比以前多了 3%。多出的 3% 單位利潤率較高。這是真正的需求，而且是可持續的。

Got it. And on GTAT, I guess, when I look at GTAT in context of your overall EV revenue, is there a sort of a contribution you can speak to in terms of GTAT potentially supplying other customers versus how much of your EV revenue is actually come from your products versus GTAT lately?

知道了。關於 GTAT，我想，當我從你們整體 EV 收入的角度來看 GTAT 時，你能談談 GTAT 可能為其他客戶提供什麼貢獻，以及你們最近有多少 EV 收入實際上來自於你們的產品？

Look, today, a small portion is coming from GTAT. We just closed the acquisition. I mentioned that we are already and we'll be shipping more revenue based on GTAT substrates in Q4.

你看，今天，一小部分來自 GTAT。我們剛完成收購。我提到過，我們已經並且將在第四季度基於 GTAT 基板實現更多的收入。

Moving forward, you're going to start -- we're going to start seeing more of a mix going from outside substrates that we have historically done more into GTAT-based substrate, which will be internal. Obviously, it will be onsemi substrate moving forward. As that mix shifts to our internal-created or internal-grown substrate, our margin will also benefit from that because, of course, the cost structure of having an in-sourced, a vertically integrated substrate is better than externally sourced. So we haven't seen the benefit of that margin. That will come as we transition more into GTAT substrates. And that's over that ramp that I talked about in my prepared remarks.

展望未來，我們將開始看到更多的混合，從我們歷史上更多使用的外部基質轉變為基於 GTAT 的基質，這將是內部的。顯然，這將是 onsemi 基板向前發展的階段。隨著這種組合轉向我們內部創建或內部生長的基板，我們的利潤率也將從中受益，因為當然，內部採購、垂直整合基板的成本結構比外部採購更好。因此，我們還沒有看到該利潤帶來的好處。隨著我們進一步轉向 GTAT 基質，這一目標將得以實現。這就是我在準備好的發言中談到的那個斜坡。

Yes. And I would just add, in the Q4 guidance, there is $3 million to $4 million of GTAT revenue. And that's with third parties, with other customers that are outside onsemi. So you can think about that as being the run rate going forward. So it's not a material amount to the company.

是的。我還要補充一點，在第四季的預測中，GTAT 的營收為 300 萬至 400 萬美元。這些是與第三方以及 Onsemi 以外的其他客戶合作的。因此，您可以將其視為未來的運行率。所以對公司來說這不是什麼重大數目。

Your next question comes from William Stein with Truist Securities.

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

First, I just was hoping you might linger on the co-investing theme for a moment. Is this customers investing in their own capacity that aligns with that of onsemi? Or is it more like nonrecurring engineering? Or are they actually investing to sort of own or perhaps guarantee capacity in your fab? And then I do have a follow-up.

首先，我只是希望您能稍微討論一下共同投資的主題。這些客戶對其自身產能的投資是否與安森美半導體的產能投資一致？或者它更像是非經常性工程？或者他們實際上是為了擁有或保證你們工廠的產能而進行投資？然後我確實有一個後續行動。

Yes. So the investment, obviously, is -- yes, of course, they are investing on their side. But the investments I'm referring to is they're investing on our side primarily, obviously, for supply assurance and for late-stage development for products that will go for their applications. And that -- I talked about that's what gives me the confidence in the sustainability, and the stickiness of that revenue is the late-stage R&D that customers are investing in, in order to get that product and the supply assurance that they will depend on us when they need to ramp. So both of these are what the investment is from their side. Of course, in parallel to that, we'll -- they're building up their capacity to run their own vehicles, but that's not what I'm referring to.

是的。因此，投資顯然是——是的，當然，他們正在進行投資。但我指的投資是他們在我們這邊的投資，顯然主要是為了確保供應，以及用於其應用的產品的後期開發。而且 — — 我說過，這就是讓我對永續性充滿信心的原因，而收入的黏性在於客戶正在投資的後期研發，為了獲得該產品和供應保證，當他們需要提高產量時，他們會依賴我們。所以從他們的角度來看這兩者都是投資。當然，同時，他們正在增強自己運作車輛的能力，但這不是我所指的。

Great. That's helpful. And then the follow-up is about the tone of buyers or buyer behavior, if you will. If we think about their behavior a quarter ago relative to where it is today, when we think about their propensity to chase shortages and try to reel in as much upside as they can and that sort of thing versus maybe cooling off or narrowing the scope or expanding the scope of expedites, can you comment on that trend, please?

偉大的。這很有幫助。如果你願意的話，接下來的問題是買家的語氣或買家的行為。如果我們將他們一個季度前的行為與現在的情況進行比較，當我們考慮他們追逐短缺的傾向，並試圖盡可能多地獲取上行空間之類的事情，而不是冷靜下來或縮小範圍或擴大加急範圍時，您能對這種趨勢發表評論嗎？

Look, I think everybody is in blocking and tackling mode as far as making sure they get just enough supply to keep the line running. I can't tell you how many lines are running at what their capacity. But a lot of the lines are now running at 100%. But keeping the line running is more important than keeping it at 100% versus shutting down the line. That's what the focus has been from our side and our customer side.

看，我認為每個人都處於阻擋和解決模式，以確保他們獲得足夠的供應以保持生產線正常運作。我無法告訴您有多少條線路在以何種容量運行。但現在很多生產線都滿載運轉。但保持生產線正常運作比關閉生產線更重要。這正是我們和客戶所關注的重點。

There's not enough to go around to keep everybody 100%. But we work constructively with our customers to make sure that they get the minimum quantities across all of our products to maintain the running line and achieve their financial targets of unit sales. That's the engagement we have directly with the OEMs.

沒有足夠的資源來保證每個人的 100% 健康。但我們與客戶進行建設性合作，以確保他們獲得我們所有產品的最低數量，以維持生產線的運作並實現他們的單位銷售財務目標。這是我們與 OEM 的直接合作。

It's no longer between us, Tier 1, and then they deal with the OEM. It's either a 2-party, us and the OEM, where we understand what they need directly, or it's a 3-week meeting with the Tier 1 and OEM in order to make sure everybody triangulates and nobody is hiding anything in their pockets. It's full transparency, blocking and tackling. We all have one purpose in mind, which is keep the lines running, because that's when demand is real versus sitting somewhere in the supply chain. That's the level of engagement we have, and that gives me the comfort and the transparency of our engagement. And that's what we're basing a lot of our forward-looking comments on.

這不再是我們 Tier 1 之間的事，然後他們與 OEM 打交道。這要么是我們和 OEM 之間的雙方會議，我們可以直接了解他們的需求，要么與一級供應商和 OEM 舉行為期 3 週的會議，以確保每個人都進行三角測量並且沒有人隱藏任何東西。這是完全透明的，阻擋和鏟球。我們所有人心中都有一個目標，就是保持生產線正常運轉，因為那時需求是真實的，而不是停留在供應鏈的某個地方。這就是我們所處的合作水平，它讓我對我們的合作感到安心和透明。這正是我們許多前瞻性評論的基礎。

Congrats.

恭喜。

Thank you.

謝謝。

I would now like to turn the call back over to Mr. Hassane El-Khoury, President and CEO.

現在我想把電話轉回給總裁兼執行長 Hassane El-Khoury 先生。

Thank you all for joining us today. I once again thank our worldwide teams for their hard work in driving our transformation, solid and sustainable results. We have established a strong foundation of revenue, LTSA and funnel growth over the last few quarters to deliver a leadership position in the vehicle electrification ramps, driven by our silicon carbide products along with our broad offering of our semiconductor solutions to enable the rest of the vehicle. Along with our leadership in automotive safety with our sensing products, we have become the supplier of choice for all marquee names worldwide. We are very excited about the opportunity in front of us, and we remain focused on execution to make sustained progress towards our target financial model. Thank you.

感謝大家今天的參與。我再次感謝我們全球團隊為推動我們的轉型、取得穩固和可持續的成果所付出的辛勤工作。在過去幾個季度中，我們建立了強大的收入、LTSA 和通路成長基礎，從而在汽車電氣化過程中佔據領導地位，這得益於我們的碳化矽產品以及我們為汽車其他部分提供的廣泛的半導體解決方案。隨著我們憑藉感測產品在汽車安全領域佔據領先地位，我們已成為全球所有知名品牌的首選供應商。我們對眼前的機會感到非常興奮，我們將繼續專注於執行，朝著我們的目標財務模型取得持續進展。謝謝。

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

女士們、先生們，今天的電話會議到此結束。您現在可以斷開連線。