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，謝謝你們的支持。我的名字是布倫特，今天我將成為您的會議接線員。在這個時候，我想歡迎大家參加安森美半導體 2021 年第三季度收益電話會議。 （操作員說明）

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

我現在想把今天的電話轉給 Parag Agarwal 先生。先生，請繼續。

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。早上好，感謝您參加安森美 2021 年第三季度季度業績電話會議。今天，我們的總裁兼首席執行官 Hassane El-Khoury 也加入了我的行列；和我們的首席財務官 Thad Trent。本次電話會議正在我們網站 www.onsemi.com 的投資者關係部分進行網絡直播。本次網絡廣播的重播以及我們的 2021 年第三季度收益發布將在本次電話會議後大約 1 小時在我們的網站上提供，錄製的網絡廣播將在本次電話會議後大約 30 天內提供。與我們的終端市場、業務部門、地域、渠道、股票數量以及 2021 年和 2022 年財政日曆相關的其他信息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.

我們的收益發布和本演示文稿包括某些非公認會計原則財務措施。這些非公認會計原則財務指標與公認會計原則下最直接可比指標的對賬包含在我們的收益發布中，該發佈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，我們將對公司的未來事件或未來財務業績做出預測或其他前瞻性陳述。相信、估計、預測、預期、打算、可能、期望、將、計劃、應該或類似的表達方式旨在識別前瞻性陳述。我們希望提醒您，此類陳述存在風險和不確定性，可能導致實際事件或結果與預測存在重大差異。可能影響我們業務的重要因素，包括可能導致實際結果與我們的前瞻性陳述不同的因素，在我們最近提交給證券交易委員會的 10-K 表格、10-Q 表格和其他文件中進行了描述。我們在 2021 年第三季度的收益發布中描述了其他因素。我們的估計或其他前瞻性陳述可能會發生變化，公司不承擔更新前瞻性陳述以反映實際結果、改變的假設或其他可能發生的事件的義務除非法律要求，否則發生。

Now let me turn it over to Hassane. Hassane?

現在讓我把它交給哈桑。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.

謝謝你，帕拉格，謝謝大家今天加入我們。由於我們全球團隊的出色執行以及對我們的智能電源和傳感產品的強勁需求，我們又實現了四分之一的創紀錄業績。我們公佈了創紀錄的季度收入和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，我們為實現我們的財務目標模型邁出了堅實的一步。儘管我們的第三季度業績和第四季度前景大大超出預期，但我們相信我們正處於業務轉型的早期階段。隨著我們在轉型計劃中取得進一步進展，以及隨著我們的智能電源和傳感設計贏得汽車和工業客戶的青睞，我們預計將看到持續的收入增長和利潤率擴張。

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 或 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的智能電源和傳感解決方案，我們正在為實現這一目標進行投資。

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 市場領先的碳化矽襯底技術，Onsemi 現在是業內唯一一家擁有涵蓋模塊、器件和襯底的端到端能力的碳化矽廠商。我們對 GTAT 的收購一直是我們的主要汽車客戶與我們建立長期戰略合作夥伴關係的催化劑，我們可以預期 GTAT 將成為我們即將在碳化矽業務中實現增長的關鍵推動力。事實上，在 2021 年第四季度，我們將利用 GTAT 基板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.

我也很高興地宣布，GTAT 已經交付了 200 毫米晶錠，我們已經在我們的 onsemi 製造工廠進行了加工，我們將於 2022 年 1 月對我們的第一批設備進行抽樣。我們歡迎 GTAT 團隊加入 onsemi 大家庭並期待擴大產能以支持我們的碳化矽增長計劃。

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，我們的電源設計獲勝漏斗同比增長了 75%。在第三季度末，我們簽署了長期協議，承諾在 3 年內為我們的電力解決方案提供 25 億美元的收入。超過 20 億美元的承諾收入用於我們用於汽車和工業應用的碳化矽解決方案，其中 2/3 用於電動汽車的牽引逆變器。我們預計將在 2023 年退出，碳化矽收入運行率將超過 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.

我們的戰略終端市場對智能電源和傳感解決方案的需求繼續超過我們目前的供應能力。汽車電氣化、ADAS、工業自動化以及從化石燃料發電向替代能源的過渡等長期大趨勢推動了這一趨勢和需求。第三季度，汽車和工業終端市場同比增長 42%。從年初至今，我們為這些終端市場設計的獲勝漏斗同比增長了 55%，使我們對未來收入有了很好的了解。除了長期因素外，我們產品在智能電源和傳感方面的行業領先性能推動了對我們產品的需求。

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戰略一致，我們正在推動向汽車和工業終端市場的混合轉變，以推動利潤增長。第三季度，汽車和工業共同貢獻了我們收入的 60%，而去年同期為 56%，我們將在明年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，我們預計到 2022 年大部分時間需求將保持強勁並超過供應。我們正在選擇性地投資於我們的運營，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。與此同時，我們正在將生產轉向戰略性的高價值產品組合。從長遠來看，我們將在 300 毫米的 East Fishkill 工廠中對產品進行認證，以提高我們的晶圓廠網絡的效率，同時執行我們的晶圓廠打火機戰略。

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，我們與客戶合作，以確保我們的產品供應不間斷，我們已與其中許多客戶簽訂了長期供應協議。這些 LTSA 承諾具有穩定和可持續利潤率的多年收入流。再加上我們在汽車和工業終端市場不斷擴大的設計贏得渠道，我們對我們的收入和利潤率有著出色的可見性，以支持我們的目標模型。隨著加入 LTSA，我們許多最大的汽車和工業客戶正在與我們共同投資。這些投資鞏固了我們 LTSA 的戰略性質，使我們能夠通過確保供應和提供開發支持來支持我們的客戶。

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關鍵戰略終端市場的一些亮點，從汽車開始。我們在第三季度創下了 5.756 億美元的汽車收入記錄。汽車業務占我們第三季度收入的 33%，同比增長 37%，環比增長 4%。汽車領域的實力是由我們的電源和傳感產品類別推動的。我們看到碳化矽和基於 IGBT 的解決方案的電動汽車業務發展勢頭強勁。我們已經簽署了 LTSA，承諾未來幾年電動汽車的收入將略低於 20 億美元，從 2021 年第四季度開始增長，未來幾年同比增長約一倍。超過 80% 的承諾收入用於 EV 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.

正如我們之前指出的，除了我們的 FET 具有行業領先的性能外，我們差異化的關鍵來源是我們在封裝方面的專業知識，這對於改善散熱、增加功率輸出和比我們最接近的競爭對手更小的佔地面積至關重要，並且減輕功率模塊的重量和成本。我們模塊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進行權衡。他們兩個都得到。

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.

我們的汽車影像收入環比增長超過 10%，同比增長 45%。隨著我們的 CMOS 圖像傳感器和電源管理的新設計獲勝和不斷增加的內容，我們繼續看到汽車安全的發展勢頭。年初至今，我們的汽車成像設計獲勝漏斗同比增長了 75%。隨著 ADAS 系統轉向更高的像素密度以及圍繞電源管理的汽車安全要求的需求增加，我們的內容將會增加，因為這些解決方案具有更高的 ASP。每輛車的傳感器和動力 ICE 數量增加，以及具有主動安全功能的汽車數量增加，進一步加劇了這種增長。

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、航空航天和醫療在內的工業終端市場在第三季度貢獻了 4.785 億美元的收入，約占我們收入的 27%。由於對我們的智能電源和傳感解決方案的強勁需求，我們第三季度的工業收入同比增長 48%，環比增長 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.

我們看到替代能源客戶對我們的電力解決方案的設計贏得漏斗增長了 2 倍以上，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的發電廠安裝量將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增長領域，因為電動工具正在從有刷電機過渡到無刷電機，從交流電到電池供電，這兩種趨勢都為我們帶來了更高的內容。

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.

對我們的成像產品和工業自動化應用的需求保持強勁，環比增長 20%。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社交距離要求和勞動力短缺而導致的運營波動。我們利用我們在汽車領域的經驗，為我們的工業客戶提供堅固的高分辨率和高圖像質量傳感器，以滿足最苛刻的工業應用。

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

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

Thanks, Hassane. I'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。我很高興地宣布又一個季度創紀錄的業績。正如哈桑所說，我們公佈了創紀錄的季度收入和創紀錄的非公認會計原則營業利潤率和每股收益，同時本季度產生了 20% 的自由現金流利潤率。我們所有 3 個業務部門均報告了創紀錄的季度收入，我們的目標汽車和工業終端市場連續增長，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.

憑藉智能電源和傳感解決方案的快速擴展設計贏得漏斗以及我們業務的持續結構變化，我們有能力在我們的目標財務模型方面取得持續進展。雖然 onsemi 團隊在短時間內取得了很大成就，但我們面臨著推動持續收入增長和可預測財務業績的重大機遇。從收入的角度來看，我們的汽車電氣化業務正處於起步階段，預計電動汽車將成為我們長期增長的重要推動力，同時對 ADAS、工業自動化和替代能源的需求不斷增加。我們對迄今為止的表現感到滿意，並在我們執行轉型計劃時繼續專注於利潤率擴張，包括產品組合優化和我們的輕工廠戰略。

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.

現在轉向第三季度的結果。第三季度總收入為 17.4 億美元，比 2020 年第三季度增長 32%，環比增長 4%。連續收入增長是由我們增加內部和外部供應的能力推動的，出貨量比第二季度多 3%，以及所有終端市場的有利組合和定價。我們的智能電源和智能傳感產品的收入也創歷史新高，分別環比增長 3% 和 8%，佔第三季度總收入的 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.

我們的汽車收入同比增長 37%，環比增長 4%。工業收入同比增長 48%，環比增長 11%。汽車和工業在第三季度共貢獻了 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。 Power Solutions Group (PSG) 的收入為 8.922 億美元。由於汽車和工業終端市場的實力，PSG 收入同比增長 38%。 Advanced Solutions Group (ASG) 的收入為 6.135 億美元，同比增長 24%。除了在汽車領域的實力外，ASG 還受益於計算領域的實力，尤其是在高端顯卡方面。智能傳感集團 (ISG) 第三季度的收入為 2.365 億美元，同比增長 35%。 ISG 的增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.

第三季度 GAAP 毛利率為 41.4%，非 GAAP 毛利率為 41.5%，同比提高 800 個基點，環比提高 310 個基點。隨著我們繼續檢查我們的投資組合的價格與價值差異，我們的毛利率擴張領先於我們的原始計劃，提高了我們的製造基地的效率、有利的組合和改進的定價。

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大約 1 億美元的非核心收入，並將這一能力分配給了毛利率增加的戰略產品。超過 60% 的退出發生在第三季度，正如我們在 8 月分析師日所概述的那樣，我們預計將在未來 2 年內繼續逐步淘汰低利潤率的非核心收入。

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.

迄今為止，我們通過調整客戶的價格，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 年初看到更多的成本增加，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%，略低於第二季度的 83%，這主要是由於與 COVID 相關的放緩影響了我們在東南亞的後端設施。隨著我們的運營穩定，我們預計利用率將保持在 80% 的較低範圍內，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.

第三季度的GAAP每股收益為每股0.70美元。第三季度非公認會計準則每股收益為每股攤薄收益 0.87 美元，而 2020 年第三季度為每股 0.27 美元，第二季度為 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公認會計原則每股收益。

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 年第三季度 GAAP 運營費用為 3.216 億美元，而 2020 年第三季度為 3.222 億美元。非 GAAP 運營費用為 2.962 億美元，環比下降 1800 萬美元，因為我們繼續重組業務與我們的新戰略保持一致並減少對非戰略領域的投資。雖然我們在第三季度看到了較低運營支出的好處，但我們預計在第四季度將資本重新部署到我們的戰略領域。因此，在實現我們 17% 的運營費用目標的同時，支出將增加至正常運行率水平。

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.

我們第三季度的 GAAP 營業利潤率為 22.9%，而 2020 年第三季度為 9%。我們的非 GAAP 營業利潤率達到創紀錄的 24.5%，而 2020 年第三季度為 12% 和 19.6第二季度的百分比。

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，我們的非 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後股票數量和各種股價。

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.

轉向第三季度的資產負債表。現金和現金等價物為 13.9 億美元，我們的左輪手槍有 19.7 億美元未動用。運營現金為 4.489 億美元，自由現金流為 3.557 億美元，佔收入的 20%。第三季度的資本支出為 9320 萬美元，相當於 5.4% 的資本密集度。正如我們之前所指出的，我們將很大一部分資本支出用於在東菲什基爾工廠實現 300 毫米產能和擴大碳化矽產能。

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.

應收賬款為 7.2 億美元，導致銷售天數為 37 天。庫存環比增加 1800 萬美元至 13 億美元，庫存天數增加 3 天至 119 天。庫存增加的主要原因是為晶圓廠過渡建立的橋樑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.

分銷庫存從第二季度的 7.3 週減少了 3900 萬美元至 6.8 週。再次，我們正在積極減少分銷庫存，以在我們的資產負債表上持有更多庫存來支持我們的客戶需求，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.

轉向本季度的指導。與我們第三季度業績相關的新聞稿中提供了處理我們的表格 - 詳細說明我們的 GAAP 和非 GAAP 指導。我們的指導包括我們在上週四收盤後大約 9 週的 GTAT 收購預期結果。

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.

現在讓我為您提供我們第四季度非公認會計準則指導的關鍵要素。根據預訂趨勢，我們認為需求將在明年大部分時間保持強勁。我們繼續通過提高運營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。我們還在東菲什基爾的 300 毫米晶圓廠加快產品認證。儘管做出了這些努力，我們仍將受到供應限制的限制，我們正在與我們的戰略客戶合作，以確保長期不間斷的供應。

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.

根據當前的預訂趨勢和積壓水平，我們預計第四季度的收入將在 17.4 億美元至 18.4 億美元之間。這包括本季度預計約 300 萬至 400 萬美元的 GTAT 收入。我們預計非美國通用會計準則毛利率在 42% 至 44% 之間，其中包括 360 萬美元的股票薪酬。我們預計非 GAAP 總運營費用為 2.98 億美元至 3.13 億美元，其中包括大約 400 萬美元的 GTAT 運營支出和 1860 萬美元的股票薪酬。

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.

我們預計我們的非公認會計原則 OIE（包括利息費用）將在 2400 萬美元至 2700 萬美元之間。因此，這導致非 GAAP 每股收益在 0.89 美元至 1.01 美元之間。這包括 GTAT 業務的影響，該季度稀釋約 0.01 美元。我們預計本季度的總資本支出為 1.3 億美元至 1.4 億美元。我們在 2021 年第四季度的非 GAAP 稀釋後股票數量預計約為 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。我要感謝我們的全球團隊的辛勤工作和對客戶堅定不移的承諾。

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

有了這個，我想開始問答。所以我會把它轉回給布倫特來打開提問的熱線。

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

（操作員說明）您的第一個問題來自德意志銀行的 Ross Seymore。

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?

祝賀你取得了不錯的成績。哈桑，我的第一個問題是給你的，那就是收入線的轉型。在您的分析師會議上，您談到了在未來幾年退出 10% 到 15% 的收入。我想看看我們是否可以得到更新。今天有多少是逆風？還是那還沒有到來？

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。我會接受的。在我準備好的講話中，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% 是在第三季度。該業務的平均利潤率約為 15%。我們計劃在未來 2 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這種能力轉移到更高價值的產品和更高價值的能力，未來 2 年將是相當線性的。

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.

然後只是補充一點——你談到了逆風。我們能夠 - 當然，在需求環境下，我們能夠將這種能力轉移到我們的戰略市場與我們的戰略客戶的需求。這就是我們正在經歷的混合轉變，我們將在接下來的幾年裡繼續經歷這種轉變。

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。而且我想接下來會在毛利率方面。做得很好，甚至可以提高您的期望。您能談談您認為其中有多少是結構性的還是周期性的？我知道你會說它是結構性的，因為你剛剛在我的第一個問題中回答了所有問題。但是，隨著價格上漲等因素，您會獲得多少週期性順風，您認為這在未來是真正可持續的？

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，這又是泰德。我們認為其中大部分是結構性的，對吧？我們一直在改變我們的製造業務，提高那裡的效率。這也是混合轉變。它肯定有一個定價部分。這是一個有利的定價市場。正如我所說，我們一直在傳遞我們看到的成本增加。我們相信我們將繼續獲得毛利率的增長。隨著時間的推移，我們的目標仍然保持在 45%。就像我說的，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。歸根結底，客戶為價值付費。就像我們談到的那樣，我們一直在減少價格與價值的差異。 LTSA 提供了對收入和利潤的長期可見性。當我們談論長期時，我們談論的是平均 3 年。因此，這為您提供了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.

（操作員說明）您的下一個問題來自美國銀行證券公司的 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?

祝賀您取得了驕人的成績和令人印象深刻的執行力。哈桑，你如何看待汽車生產與內容和定價之間的相互作用？我的意思是，很多人擔心汽車芯片供應商可能會大量運送到庫存，而不是從內容、定價或組合中受益。我只是喜歡你從一個行業對此的看法，但顯然是從特定於 ON 的角度來看的。是什麼讓您確信您的銷售量超過單位數量實際上是由內容、組合或定價驅動的，而不是在某個地方的庫存中？

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。看，我可以先為 onsemi 說話。我們根據我們在過去幾年中取得的設計勝利來跟踪內容，這些勝利開始逐漸增加，並且已經超出了我們在 21 年時間框架內的預期。這就是為什麼我們有點無法支持需求。因此，從這個角度來看，我確切地知道我們的客戶使用我們的產品已經增加了多少內容。所以這聯繫起來，這讓我相信這是一個內容增長的故事。

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.

現在就 - 人們談論正在建立的庫存。看，我衡量一下。我們有很多數據來衡量它。但對我來說，主要衡量標準是我們得到的升級。我們仍然從我們的客戶那裡得到了強烈的升級，以確保零件進入汽車並且汽車離開批次。這是衡量經濟狀況和我們的內容走向何方的一個很好的衡量標準。我可以告訴你，它沒有被建立起來。它會去汽車。因為如果我們不發貨，汽車就不會發貨。鑑於我與同行和客戶的所有對話，我可以親自驗證這是一對一的相關性。

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.

所以這兩個都告訴我，我們仍然處於供應緊張的狀態。他們口袋裡沒有存貨，可能會有 1 到 2 週的存貨，是的。因為我們有時會提前發貨，而我們知道，客戶無法得到它，但這會持續大約 1 或 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控的。我們對它有充分的了解，我們在內部和與我們的客戶一起跟踪它。所以它給了我信心。

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。對於我的後續行動，泰德，在毛利率方面做得很好。但是當我查看第三季度的增量利潤率以及第四季度的中點時，它超過了 100%。我想部分原因是非核心領域的退出。但是你能幫助我們彌合你最初對毛利率的假設嗎？為什麼會出現在這些級別？但同樣重要的是，在完成許多本應將您帶入 45% 旅程的行動之前，您已經處於 40 多歲的低毛利率。那麼 45% 仍然是這一旅程的最終目的地嗎？或者您是否認為這個非常強勁的開端讓您相信可能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.

看，我們一直說 45% 是一個里程碑，對，一旦我們到達那裡，我們就會談論。我們不會改變那個目標。我們看到的改進是通過運營效率、有利的組合，然後顯然是定價。如果你回到我在分析師日展示的圖表，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——晶圓廠更輕的佔地面積，對吧？這就是我們一直說需要最長時間並且最難獲得的部分。它是關於退出晶圓廠並整合成更高效的晶圓廠，從而擴大 300 毫米晶圓廠。這就是我們必須執行的下一站。

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，我認為我們能夠推進的是有利的組合、運營效率，然後顯然，良好的定價環境有所幫助。但是——我認為將使我們達到 45% 的下一個水平的是製造部分。然後，一旦我們到達那裡，我們將討論最終目標應該是什麼。但我們從未說過 45% 將是最終目標，因為它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.

恭喜取得了不錯的成績。哈桑，在你準備好的講話中，你談到了一些關於東南亞的話題，並且你在該季度的運營受到了一些干擾。您能否談談對本季度收入和毛利率的影響以及您今天的運營情況？然後我有一個快速跟進。

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。這是泰德。所以我們談到我們的利用率略微下降到 80%。我們認為應該會恢復到 80% 的正常水平。我們認為它對本季度的影響很小，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.

這些網站現在正在穩定下來。他們還沒有恢復到全速，但我們認為他們很快就會到達那裡。這就是為什麼我們認為這裡的利用率很快就會恢復到正常的運行率水平。

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。然後作為我的後續行動，我想問一下明年第一季度的情況。我認為從歷史上看，COVID 之前的季節性會使業務略有下降。我認為定價，你在歷史上所做的一些調整會不成比例地影響第一季度。很好奇我們應該如何考慮到明年的第一季度，考慮到環境有多強。你談到了所有的設計勝利和你在本季度的知名度。那麼 22 年的第一季度應該高於季節性嗎？再說一次，我們應該如何考慮到 3 月季度的定價和毛利率？

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.

好吧，我們不會為您提供 Q1 的指導，對吧？我們一次只指導四分之一。但第一季度的正常季節性下降了 2% 至 3%。根據我們今天看到的情況，我們的表現會比這更好。我們在積壓和在線供應方面可以看到，我們可能會看到與我們的第四季度數字持平。但我們不會提供比這更多的指導。

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

您的下一個問題來自與 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，熱烈祝賀。這裡有巨大的執行力。哈桑，我想在（聽不清）和數據之上提出一個更廣泛的問題。也許你可以幫助我們——我知道電動汽車對你來說很重要，而且你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.

兩件事情。您認為您今天從電動汽車中獲得了多少收入？然後，一旦你開始著手 - 我想你說 2023 年 10 億美元，比方說，在 2023 年退出時，屆時你的業務將有多少是電動汽車？投入 ADAS 和你們所做的所有其他事情。

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.

看，我們今天沒有公佈電動汽車收入。我給出展望只是為了強調我們所看到的增長，但更重要的是，強調碳化矽的滲透率達到 10 億美元。我們一直說，在接下來的幾年裡，我們將看到 IGBT 和碳化矽的共存。但隨著客戶看到碳化矽的效率以及我們的封裝技術，它開始加速發展。因此，這將加速我們的碳化矽產量到 2023 年達到 10 億美元以上的運行速度，從我們今天的情況來看，這非常有意義，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.

當我們開始漸變時，我將提供更多這種顏色。但在這一點上，這就是我要談論的水平。但我對電動汽車坡道非常滿意。很多人——幾年來我們一直在談論電動汽車的坡道和內容。現在我們有了。它開始了。客戶有 LTSA 來保證他們的供應，我們將與我們一起支持他們的增長。

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?

很好。然後對於我的第二個問題，你有 - 我想 Vivek 提到過，你有一個 45% 的長期目標。您正在指導 43%。我想我只是想確保這裡沒有短期的事情可以幫助你，這都是結構性的。您能否給我們一些顏色，說明強大的 ASP 對您的幫助與傳統業務的減少相比，我認為我們也可以計算出來？此外，您應該出售晶圓廠，而我們在這方面沒有看到太大進展。但是我正在查看它，發現您已經處於 80 年代的低利用率狀態。為什麼隨著您的成長，您甚至需要出售晶圓廠？

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。看，很多——大部分都是自助的。我們談到了——泰德談到了銷售量的增加。這些單位增加是基於有利的利潤率組合。所以你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，低利潤率就是低利潤率。我們將積極擺脫該業務，將其轉移到對我們來說利潤率更高的汽車和工業領域。所有這些事情都是自助的，當然，也是可持續的。

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。正如你所提到的，這是可持續的，因為我們關閉了一些晶圓廠，我們重組並進行晶圓廠製造優化。即使非核心業務減少了 10% 到 15%，這種利用率也將保持並保持在更高的水平。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，我在定價方面要談兩件事。一是將價格上漲轉嫁給我們的客戶。這對我們來說是中性的毛利率，因為我們將成本增加轉嫁給客戶。所以——你可以把它看作是我們的邊際中性。另一個是價格與價值的差異，我們擁有高價值的產品，從歷史上看，無論出於何種原因，我們的出貨量都低於市場價格。這些調整是可持續的，因為這是許多其他客戶購買的產品的價值。

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，我們只需要保持領先於製造利用率，因為我們會減少剩餘的 10% 到 15% 的低利潤業務。正如我們在分析師日中談到的那樣，我們將到達那裡。因此，所有這些都將屈服於結構上可持續的財務模型。當我們到達那裡時，我們將討論如何進入下一個級別。

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。苛刻，我想補充一下生產基地，我們仍在計劃退出生產基地。明年晚些時候，也就是 23 年底，我們將擁有 300 毫米晶圓廠，我們擁有所有權。所以我們必須填滿那個能給我們帶來更好成本優勢的工廠。您看到我們正在資產負債表上建立庫存以支持這些晶圓廠過渡。所以我們一直說這不是把鑰匙交給某人。這是關於退出和資格認證過程以及隨著時間的推移退出。

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，即使我們還沒有宣布剝離這些晶圓廠，我們在其他更高效的地點驗證這些產品方面取得了進展，我們正在為這種過渡建立庫存。因此，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?

我想對優異的成績表示祝賀。 Hassane，我想更深入地研究您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 20 億美元的 SiC 和電動汽車，其中 2/3 與牽引逆變器有關。您能否描述一下您在該市場上看到的情況？看起來您擁有適合未來增長的產品和合適的產品。您能談一談資格認證流程，以及與您的客戶在投入大量業務的承諾資本方面的互動嗎？

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?

然後更廣泛地說，您是否在行業中看到了轉變，向更長期的承諾過渡，為應對我們今年看到的組件短缺而提高客戶的知名度？您是否看到客戶的行為發生了變化，以簽訂長期供應協議以獲取該供應？

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——絕對是，拉吉。讓我談談第一個。所以第一個是，我想說，設計能力的一個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。所有這些變量都是我們的團隊和客戶團隊在設計時考慮的因素。

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您了解它不是雙源概念。這是一個設計理念，導致設計獲勝。這就是為什麼客戶希望自己解決這個問題。長期供應協議是下一個自然步驟，因為如果我們給他們提供比我們的任何競爭對手提供更高效率的牽引逆變器，他們要么共同投資，要么給我們 LTSA，或者 - 給我們LTSA 在更長的時間內，至少通過該產品的運行率，然後是一些。這就是我所說的收入的粘性，我提到的，從設計獲勝的角度來看的粘性。這不是可交換的東西，而是客戶向我們提供的承諾的粘性。

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。參與模式不同。它不等於一切。有些產品對我們的客戶沒有戰略潛力。然而，它們很重要。我們不會通過長期協議來鎖定產能。但是當我們談論像碳化矽這樣的戰略組件時，像 IGBT，像 48 伏導軌，像我談到的戰略性 PMIC，它與我們的 ADAS、相機或圖像傳感器一起使用。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 ADAS 願景。這些客戶確實想要穩定性，他們確實想要我們能夠通過長期協議向他們提供的供應彈性。這就是模式——我們正在與很多客戶一起轉向。同樣，這不是 100%，但它是戰略性的和外科手術的，就像我在談到 LTSA 時一直談到的那樣。

And for my follow-up...

而對於我的後續...

(inaudible)

（聽不清）

Go ahead, Thad.

去吧，泰德。

No. Go ahead.

沒有，繼續。

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，我只是說我的後續行動——感謝哈桑的洞察力。它確實與定價問題有關，但它更多的是，再次，積極的一面。你顯然看到了一些價格上漲。但是您是否會說半成品價格嚴重通縮的日子已經開始結束，或者至少，由於這些組件在 ADAS 中的戰略重要性，價格下跌將開始減弱，電動汽車，用於工業自動化？您是否認為這在本質上更具結構性，定價環境可能沒有現在那麼高，但在未來幾年可能會繼續有利？還是您仍然-您認為這更暫時？

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。我認為我們歷來為客戶提供的定價優勢不會消失，但考慮到提升這些產品所需的資本密集度，這些新的坡道肯定會非常溫和。 .他們不會遵循你的傳統，“嘿，每年，給我 x%，否則。”對於這些戰略性的日子來說，那些日子已經結束了。所以這就是讓我放心投資資本支出以增加資本支出的原因 - 以滿足這種需求。

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.

我們與客戶就我們能夠獲得的效率或他們能夠獲得的效率進行合作，因為，看，如果我們的產品允許我們的客戶因加熱而減少 1 美元或 2 美元的金屬成本，考慮到我們產品的效率，還是錢。我不必節省這些錢，但如果我啟用它，那仍然是最終單價的節省，也就是汽車。這就是使我們的解決方案具有吸引力的原因，因為效率在半導體之外比在半導體中降低了更多的成本，這對我們的客戶非常有吸引力。

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

您的下一個問題來自 Raymond James 的 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?

只是關於 LTSA 的後續問題。如果你能澄清一下，你和客戶對這些協議的義務是什麼？他們向你承諾什麼？你向他們承諾什麼？在這些協議中，投資者目前的擔憂之一是有一天，需求可能會從這些水平放緩。那麼，如果最終需求與這些協議的設想不同，那麼其中有哪些條款可以保護您並保護他們？

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.

看，當我們談論 LTSA 時，我們關注的是戰略意圖。讓我以碳化矽或電動汽車、IGBT 和碳化矽為例。所以對我來說，這種需求和這種增長正在發生。電動汽車正在發生。電動汽車由公司驅動，由客戶自己驅動。

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，如果坡道移動 1 個季度或 2 個季度或其他任何時間，您知道嗎，我們將與客戶合作。他們得到的和客戶得到的是供應保證，即當他們斜坡上升時，我們將能夠支持他們的斜坡。

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坡道充滿信心的是，當客戶與您共同投資以支持坡道時，這是坡道的相當高的信心和高可信度，因為每個人 - 這是很容易說，在電動汽車方面，他們將成為世界之王。但是，當一家公司說並把錢作為共同投資來獲得他們的坡度和供應保證時，這告訴我他們將成為該市場的贏家，因為他們將資金投入到他們需要的地方。嘴是。我們將通過 Thad 談到的資本支出強度來做同樣的事情。我們正在增加它以支持這些坡道。

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.

所以我們得到了長期的可見性。我們得到了收入的可持續性以及與之相關的利潤。我們有信心投資我們的資本支出來擴大這種能力。考慮到 LTSA 的時間線，客戶有信心在他們準備好升級時獲得它，並且客戶將在時間到來時準時升級。

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.

所以所有這些都給了我信心。同樣，我不會為我們所有的產品追求 LTSA。對於獲得 LTSA 的內容，我非常、非常有選擇性並且非常具有戰略性，以免出現您談到的那個問題。

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。這很有幫助。作為後續，我想，也許你可以讓我們了解一下現在有多少業務在你所說的戰略框架內。我想其中一些在 LTSA 中，而另一些則不在。但我想問題是，隨著時間的推移，我們已經看到半典型年份的價格每年下降 5%，而這已經彌補了成本的降低。

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?

聽起來您的大部分業務都在使用不同的框架。其餘的業務呢？ ON 和行業內部是否都發生了結構性事件，這將阻止價格下跌並使事情變得更加棘手，即使在行業低迷的情況下也是如此？

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.

看，我們不是你習慣的安森美半導體。我們是新的 Onsemi，我們的重點是戰略產品和可持續的財務模式。我們正在放棄的業務的一部分，Thad 所說的 15% 利潤率的 1 億美元，這就是你所描述的行為，上升是好的和下降的，你必須給出很多定價來維持分享。

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.

我不關心那個生意。我只關心為客戶增加價值的專有業務。當您擁有專有業務時，甚至以碳化矽為例，從定價和利潤的角度來看，這些都是可持續的。我們不再在低迷時期追逐晶圓廠填料，這是該公司歷來所做的。我們正在將進入我們晶圓廠的產品組合轉移到專有和高價值產品上。這些不會根據終端市場的行為而波動。那是我們的一家新公司。那是一家新公司，我們正在提供您今天看到的結果。這讓我對我們的模式的可持續性充滿信心，無論市場如何發展。

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 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.

所以很快回到汽車行業。如果您閱讀一些第三方報告，該行業今年可能會因為沒有芯片庫存而錯失多達 2200 億美元的收入。我只是有點好奇，當你談到汽車供應鏈時，你是否認為他們會在結構上改變他們對庫存和合作夥伴的看法。 LTSA 很棒。我很好奇您是否已經探索過實際獲取一些客戶資金的想法，尤其是在您努力擴大碳化矽產能時。

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。所以讓我談談最後一個。我們通過投資或共同投資的形式來獲取客戶資金來擴大產能。所以這個模型是新的，我們已經向客戶開放了它，一些客戶已經接受了我們。

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。你談到了 2000 億美元的收入。沒有人願意再呆在那個地方了。因此，不幸的是，有些客戶仍然拒絕接受。這沒關係——對他們來說不行。這對我來說沒關係。我們正在與得到它的客戶加倍努力，他們確實了解半導體的重要性，電力和傳感在未來移動性中的重要性。這些是抓住機會確保供應的客戶。

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。客戶轉向可靠的供應商，供應商——規模可靠的供應商，這一點非常重要，因為供應彈性是所有客戶的熱門按鈕，一直到 OEM。我個人與 OEM 的合作是關於供應彈性，而不僅僅是供應保證。在很多情況下，我們能夠讓產品在 2 個地理位置獨立的位置運行，這為我們的客戶提供了供應彈性，在這些地方可能不是 COVID，但我們總是會遇到中斷。在過去的 4 到 5 年裡，我們遇到了中斷。

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。他們可以依賴我們。這在今天的選擇過程中很重要。這不僅僅是關於產品。當然，您必須擁有專有且高效的產品才能獲勝。但是，為了通過共同投資獲得長期戰略供應商的選擇，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?

然後是哈桑，作為我的後續行動，我有點想回到這個想法是周期性的還是結構性的。而且我猜在您的汽車和工業業務中，您在闡述結構論點方面做得很好，這很容易承保。我有點想考慮一下另一個桶。如果我加上 600 億美元的資產剝離，我假設其中大部分來自其他資產。另一個桶同比增長超過 30%。我相信，它幾乎連續增長了個位數，所以甚至超過了你的汽車業務。當您考慮另一個桶時，是否存在舊 ON 定價不正確的價值差異？還是我們可能不得不有點擔心今天可能會消失的周期性定價槓桿？

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，你不必擔心這個。我們談到的其他內容並不等同於非核心或下降或商品。我們在其他方面投入了什麼——例如，我們有很多工業，不一定是電力。那進入那裡。這實際上已經是非常增值的利潤了。所以你看到的很多是另一個桶中的高利潤率的好處，它沒有被本季度的 1 億美元或 60% 的利潤率以 15% 的利潤率稀釋。

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，即使在其他方面也有高度專有的產品。他們只是不屬於權力和傳感。這是我們描述我們公司的一部分。所以我不想把別人等同於對公司不重要。這就是為什麼你看到全面增長的原因。但是 1 億美元的拖累是——大部分都在另一個桶裡。

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?

祝賀取得了紮實的成果和執行。智能傳感業務，如果我看一下，今年前 9 個月你的汽車和工業都發育不全，對吧？但是，從同比和環比來看，今年每個季度的趨勢實際上都在改善。我知道它的供應嚴重受限，因為大部分業務都是外包的。所以看起來你的代工合作夥伴正在增加他們的供應。但是你們是否預計這一細分市場也會在 2022 年的大部分時間裡受到限制？然後是 Hassane，您能否向我們介紹一下您在內部引入一些圖像傳感器製造的最新情況？

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-所有這些都是外部製造，並且在整個 2021 年都受到限制。由於我們看到的增長，而且實際上是因為對汽車的影響。所以我們得到了安全——更安全的供應。到明年，你會看到這種情況不斷增加。

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，我們確實在努力開發新產品，當然是內部引進。我們 - 你不會看到我們對現有產品進行非常大的轉變，只是將它們搬進來。但我們確實有一個健康的新產品開發漏斗，我們已經在 East Fishkill 有產品流片，影像產品。我們的新成像產品在東菲什基爾錄製。所以我們將擁有晶圓廠——稱之為柔性晶圓廠成像戰略，我們將在外部進行維護，但我們還將在內部加倍努力，以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 - 也許作為後續行動。所以在東菲什基爾，在向 300 毫米過渡的過程中，我猜要到明年年底才會發生交接，但你正處於對眾多產品的排位賽中。你們將受益於 300 毫米製造的更好經濟性。但推動高產量對於實現這些更低的成本和增加的產能至關重要。我知道現在還為時過早，但是 East Fishkill 合格的工藝的產量趨勢如何？

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.

看，產量是 - 當然，我將產量與我們擁有的特定技術的每個晶圓廠的生產產量進行比較。而產量正是他們在 300 毫米環境中進行全面生產所需的水平。我們的許多電源設備已經——或者已經在東菲什基爾以生產良率出貨了幾個季度。所以我不關心產量。

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，當您遷移非常複雜的新技術時，例如圖像傳感，您必須提高良率。但我今天要告訴你，我們確實有一種產量很高的產品，它正在我們的電路板上成像。再說一次，我們不在它的研究方面。實際上，我們的許多產品都在開發和生產它，我們將繼續這樣做到 2022 年。

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

您的下一個問題來自 Tore Svanberg 與 Stifel 的對話。

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.

祝賀創紀錄的結果。 Hassane，第一個問題是關於從 ICE 到 EV 的過渡。我的意思是，大流行似乎真的加速了這種轉變。我不知道您是否可以與我們分享任何內容，任何數字或任何數據點，因為顯然，這種轉變正在實質性加速。

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

你能告訴我——什麼過渡？我錯過了第一部分。你說的是 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.

ICE 到 EV。聽著，我不認為是大流行加速了它。我認為有幾件事。一是高度重視企業在企業和董事會的推動下、在投資者和員工的推動下所承擔的環境責任。所有這些——在很多情況下實際上是政府授權，無論是在美國，是國家授權，還是在歐洲——或者在亞洲，它是政府授權。

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 ICE 到 EV 的汽車模型的加速採用、加速投資和推出。這正在發生。您在 2025 年的目標中聽到很多，x% 的汽車將是電動汽車；到 2030 年，x% 的汽車將是電動汽車。這些都是公司自己為自己的目標或政府定義的艱難里程碑，在那些時候，除非它是電動汽車，否則你無法購買新車。所以這就是加速它的原因。

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.

擺脫大流行並滿足汽車需求後，電動汽車受到了更多推動，因為如果有人現在購買汽車，他們會希望汽車成為電動汽車。否則，他們不想在未來 5 到 10 年內改變它。這對我們推動電動汽車以及維持我們增長的因素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.

就碳化矽或 IGBT 或功率逆變器的 LTSA 而言，我給出的很多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。那是純粹的增長，當然，我們將要遠離的 10% 到 15%。但這是 5 到 10 年的可持續增長，這就是讓我們興奮的原因。我們來對地方了。

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?

這很有幫助。作為我的後續行動，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，我們應該在明年使用這種運行率嗎？還是會有一些——可能在下個季度再次升級？

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.

不會。我們已經說過，從明年開始，未來幾年資本密集度將上升到大約 12%。然後在那之後，它將緩和到大約 9%。但我們會投資。我們在東菲什基爾有更多的投資要做。然後很明顯，為了支持碳化矽，我們在那裡進行了投資，然後還收購了 GTAT。因此，未來幾年為 12%。

Congrats again.

再次恭喜。

Thank you.

謝謝你。

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.

我猜我的——我有一對。因此，您的產品組合中的定價存在很多問題。但我的意思是你能給我們一些顏色，一個，你的定價實際上有多少是基於同類產品的？其中有多少實際上是同類產品，而其中有多少是從產品的混合轉變中受益的，我認為這種產品更具結構性和壽命更長？然後我有一個跟進。

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.

看，我之前在電話會議上提到過，我們的大部分行動都是結構性的，因為它們是由混合轉變驅動的。我們談到在 15 歲時放棄 1 億美元——平均 15% 的毛利率。這些產品或產能只是轉向毛利率更高的產品組合。因此，就利潤率而言，我們用結構上更有利的組合取代了這 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.

對於成本，我之前提到過，價格上漲——因為成本對利潤是中性的，因為我們正在將其轉嫁給客戶。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中談到的所有其他事情，我們都將遠離該業務。這 1 億美元是 10% 到 15% 的一個縮水。大約是 1% 到 2%。我們談到了 10% 到 15%。因此，僅從組合的發展來看，利潤率擴張仍有上行空間。所以我不擔心它的可持續性。好處是可持續的。收益是由我們今天發貨的產品價值驅動的，我們在第三季度的發貨量比以前增加了 3%。這些多出 3% 的單位的利潤率很高。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。在 GTAT 上，我想，當我從你的整體 EV 收入的背景下看待 GTAT 時，你是否可以談論 GTAT 可能為其他客戶提供的貢獻，而不是你的 EV 收入實際來自多少你的產品最近與 GTAT 對比了嗎？

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.

看，今天，一小部分來自 GTAT。我們剛剛完成了收購。我提到我們已經並且我們將在第四季度基於 GTAT 基板提供更多收入。

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，您將開始 - 我們將開始看到更多的混合來自外部基板，我們在歷史上做了更多的基於 GTAT 的基板，這將是內部的。顯然，這將是 Onsemi 基板向前發展。隨著這種混合轉移到我們內部創建或內部生長的基板，我們的利潤也將受益於此，因為當然，擁有內部採購的垂直整合基板的成本結構優於外部採購。所以我們還沒有看到這個利潤的好處。隨著我們更多地過渡到 GTAT 基板，這將會到來。這已經超出了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。我只想補充一點，在第四季度的指導中，GTAT 的收入為 300 萬至 400 萬美元。那是與第三方以及其他 onsemi 之外的客戶。因此，您可以將其視為未來的運行速度。所以這對公司來說不是一個實質性的數額。

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，我只是希望你能在共同投資主題上逗留片刻。這些客戶是否投資於與 onsemi 一致的自身產能？還是更像是非重複性工程？還是他們實際上是在投資以擁有或保證您工廠的產能？然後我確實有後續行動。

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，顯然，投資是——是的，當然，他們正在投資自己。但我所指的投資是他們主要在我們這邊進行投資，很明顯，用於供應保證和後期開發的產品將適用於他們的應用程序。而且——我談到這讓我對可持續性充滿信心，而這種收入的粘性是客戶投資的後期研發，以獲得他們將依賴的產品和供應保證當他們需要斜坡時我們。所以這兩者都是他們的投資。當然，與此同時，我們將——他們正在建立自己的車輛運行能力，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，接下來是關於買家或買家行為的語氣。如果我們考慮他們四分之一前的行為相對於今天的情況，當我們考慮他們追逐短缺並試圖盡可能多地獲得上漲空間的傾向時，與可能會冷卻或縮小範圍或擴大加速的範圍，你能評論一下這個趨勢嗎？

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封鎖和解決模式，以確保他們獲得足夠的供應來保持生產線的運行。我無法告訴你有多少條生產線以它們的容量運行。但現在很多生產線都在 100% 運行。但保持生產線運行比保持 100% 運行比關閉生產線更重要。這就是我們和客戶方面的重點。

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.

沒有足夠的時間讓每個人都保持 100%。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，以維持生產線並實現其單位銷售的財務目標。這就是我們直接與原始設備製造商的合作。

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.

這不再是我們之間的事，第 1 層，然後他們與 OEM 打交道。要么是我們和 OEM 的 2 方，我們直接了解他們的需求，要么是與 1 級和 OEM 進行為期 3 週的會議，以確保每個人都進行三角測量，並且沒有人在他們的口袋裡隱藏任何東西。它是完全透明的，可以阻止和解決。我們都有一個目標，那就是保持生產線正常運轉，因為那是需求真實而不是坐在供應鏈中的某個地方。這就是我們的參與程度，這讓我感到舒適和參與的透明度。這就是我們許多前瞻性評論的基礎。

Congrats.

恭喜。

Thank you.

謝謝你。

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

我現在想將電話轉回給總裁兼首席執行官 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.

感謝大家今天加入我們。我再次感謝我們的全球團隊為推動我們的轉型、堅實和可持續的成果所做的辛勤工作。在過去幾個季度，我們在收入、LTSA 和漏斗增長方面建立了堅實的基礎，在我們的碳化矽產品以及我們廣泛提供的半導體解決方案的推動下，在汽車電氣化坡道中處於領先地位，以實現其餘的車輛。憑藉我們的傳感產品在汽車安全方面的領先地位，我們已成為全球所有知名品牌的首選供應商。我們對擺在我們面前的機會感到非常興奮，我們仍然專注於執行，以在我們的目標財務模型方面取得持續進展。謝謝你。

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。您現在可以斷開連接。