安森美 (ON) 2021 Q2 法說會逐字稿

Good day, and thank you for standing by.

美好的一天，感謝您的支持。

Welcome to the ON Semiconductor Second Quarter 2021 Earnings Conference Call.

歡迎參加安森美半導體 2021 年第二季度收益電話會議。

(Operator Instructions)

（操作員說明）

I would now like to hand the conference over to your speaker today, Mr. Parag Agarwal, Vice President of Investor Relation and Corporate Development.

我現在想把會議交給你今天的演講者，投資者關係和企業發展副總裁 Parag Agarwal 先生。

Please go ahead.

請繼續。

Thank you, Ren.

謝謝你，任。

Good morning, and thank you for joining ON Semiconductor Corporation's Second Quarter 2021 Quarterly Results Conference Call.

早上好，感謝您參加安森美半導體公司 2021 年第二季度季度業績電話會議。

I'm joined today by Hassane El-Khoury, our President and CEO; and Thad Trent, our CFO.

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。

This call is being webcast on the Investor Relations section of our website at www.onsemi.com.

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。

A replay of this webcast, along with our 2021 second 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.

本次網絡廣播的重播以及我們的 2021 年第二季度收益發布將在本次電話會議後大約 1 小時在我們的網站上提供，錄製的網絡廣播將在本次電話會議後大約 30 天內提供。

Additional information related to our end markets, business segments, geographies, channels, share count and 2021 and 2022 fiscal calendar is posted on the Investor Relations section of our website.

與我們的終端市場、業務部門、地理位置、渠道、股票數量以及 2021 年和 2022 年財政日曆相關的其他信息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.

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。

Reconciliation of these non-GAAP financial measures to the most directly comparable measures under GAAP are included in our earnings release, which is posted separately on our website in the Investor Relations section.

這些非公認會計原則財務指標與公認會計原則下最直接可比指標的對賬包含在我們的收益發布中，該發佈單獨發佈在我們網站的投資者關係部分。

During the course of this conference call, we'll make projections on other forward-looking statements regarding the future events or future financial performance of the company.

在本次電話會議期間，我們將對有關公司未來事件或未來財務業績的其他前瞻性陳述進行預測。

The words believe, estimate, project, anticipate, intend, may, expect, will, plan, should or similar expressions are intended to identify forward-looking statements.

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。

We wish to caution that such statements are subject to risks and uncertainties that could cause actually events to our results to differ materially from projections.

我們希望提醒您，此類陳述存在風險和不確定性，可能導致我們的結果的實際事件與預測存在重大差異。

Important factors that can affect our business, including factors that could create actual results to differ from our forward-looking statements, are described in our most recent Form 10-K, Form 10-Qs and our filings with the Securities and Exchange Commission.

我們最近的 10-K 表格、10-Q 表格和我們提交給證券交易委員會的文件中描述了可能影響我們業務的重要因素，包括可能導致實際結果與我們的前瞻性陳述不同的因素。

Additional factors are described in our earnings release for the second quarter of 2021.

我們在 2021 年第二季度的收益報告中描述了其他因素。

Our estimates or other forward-looking statement may change, and the company assumes no obligation to update forward-looking statements to reflect actual results, change assumptions or other events that may occur except as required by law.

我們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、更改假設或其他可能發生的事件的義務，除非法律要求。

Our Analyst Day is scheduled for Thursday, August 5 in New York City.

我們的分析師日定於 8 月 5 日星期四在紐約市舉行。

We look forward to seeing you in person data this week.

我們期待在本週看到您的個人數據。

Now let me turn it over to Hassane.

現在讓我把它交給哈桑。

Hassane?

哈桑？

Thank you, Parag, and thank you, everyone, for joining us today.

謝謝你，帕拉格，謝謝大家今天加入我們。

We delivered record results in Q2, driven by strong execution and broad-based strength in demand.

在強大的執行力和廣泛的需求強勁的推動下，我們在第二季度實現了創紀錄的業績。

We posted record revenue of $1.67 billion, an increase of 38% year-over-year and 13% quarter-over-quarter.

我們公佈了創紀錄的 16.7 億美元收入，同比增長 38%，環比增長 13%。

The non-GAAP diluted earnings per share of $0.63 grew significantly year-over-year and quarter-over-quarter as a result of the work we have been doing to restructure the company and streamline our business.

由於我們為重組公司和精簡業務所做的工作，非 GAAP 攤薄後每股收益為 0.63 美元，同比和環比均顯著增長。

Our sharp focus on gross margin is beginning to show strong results with our Q2 non-GAAP gross margin increasing by 320 basis points quarter-over-quarter and by 760 basis points year-over-year.

我們對毛利率的高度關注開始顯示出強勁的業績，我們的第二季度非公認會計原則毛利率環比增長 320 個基點，同比增長 760 個基點。

These sustainable improvements in our gross margin will continue as we rationalize our current portfolio and reallocate R&D investments to high-growth and margin-accretive new product development.

隨著我們合理化我們當前的投資組合併將研發投資重新分配給高增長和增加利潤的新產品開發，我們毛利率的這些可持續改善將繼續下去。

To capture the full value of our products, we continue to evaluate our portfolio to eliminate any price to value discrepancies and focus our manufacturing on our strategic products.

為了獲得我們產品的全部價值，我們將繼續評估我們的產品組合，以消除任何價格與價值之間的差異，並將我們的製造重點放在我們的戰略產品上。

In addition, we continue to drive efficiency throughout our upstream and downstream supply chains and optimize our operations to reduce costs.

此外，我們繼續提高整個上游和下游供應鏈的效率，並優化我們的運營以降低成本。

The demand environment continues to be robust across all end markets.

所有終端市場的需求環境繼續強勁。

For the second quarter, we posted record revenue for the automotive and industrial end markets.

第二季度，我們公佈了汽車和工業終端市場的創紀錄收入。

In addition to the company's broad-based strength in these markets, we are benefiting from the strong traction of our power and sensing products.

除了公司在這些市場的廣泛實力外，我們還受益於我們的電力和傳感產品的強大牽引力。

The strong demand that we have seen over the last few quarters continued to outpace our ability to supply certain products, especially those manufactured by our foundry partners.

我們在過去幾個季度看到的強勁需求繼續超過我們供應某些產品的能力，尤其是那些由我們的代工合作夥伴製造的產品。

Based on current booking trends and macroeconomic outlook, we expect that the demand will continue to outpace supply through the first half of next year.

根據目前的預訂趨勢和宏觀經濟前景，我們預計明年上半年需求將繼續超過供應。

We are working collaboratively with our customers to ensure the uninterrupted supply of our products in the future, having entered into long-term supply agreements with many of them already and actively engaging in discussions with several others.

我們正在與我們的客戶合作，以確保我們的產品在未來的不間斷供應，我們已經與其中許多客戶簽訂了長期供應協議，並積極與其他幾家客戶進行討論。

Long-term supply agreements, or LTSAs, are a win-win for both customers and us by guaranteeing supply to the customer and at the same time, providing better visibility and allowing us to better plan our capital allocation towards capacity expansion with a committed long-term demand outlook.

長期供應協議或 LTSA 對客戶和我們來說都是雙贏的，因為它可以保證對客戶的供應，同時提供更好的可見性，讓我們能夠更好地規劃我們的資本分配以實現長期承諾的產能擴張長期需求前景。

Let me now discuss a few highlights of our strategic end markets, starting with automotive.

現在讓我討論一下我們戰略終端市場的一些亮點，從汽車開始。

We set a new record for our automotive revenue in Q2 with revenue of $556 million.

我們在第二季度創下了汽車收入的新紀錄，收入為 5.56 億美元。

The success in automotive was driven by strength in our power and sensing product categories.

汽車領域的成功得益於我們在電源和傳感產品類別中的實力。

We have emerged as a strategic supplier of highly differentiated technologies for electric vehicles with customers placing high value on the efficiency and footprint advantages provided by our power solutions.

我們已成為電動汽車高度差異化技術的戰略供應商，客戶高度重視我們的電源解決方案提供的效率和占地面積優勢。

Our engagement with leading global OEMs and Tier 1s continues to expand, and I'm very bullish on our potential in the growing vehicle electrification market over the next few years.

我們與全球領先的原始設備製造商和一級供應商的合作繼續擴大，我非常看好我們在未來幾年不斷增長的汽車電氣化市場中的潛力。

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 in a smaller footprint than our closest competitor and reducing the weight and cost of a power module.

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、在比最接近的競爭對手更小的尺寸內增加功率輸出以及降低重量和成本至關重要。一個電源模塊。

The efficiency of our module allows our customers to make no trade-offs between the cost of battery and the range of the vehicle.

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。

They get both.

他們兩個都得到。

We continue to strengthen our leadership in automotive safety with new design wins and see the increased penetration of active safety features driving strong demand for our image sensors and ultrasonic sensors.

我們通過新的設計勝利繼續加強我們在汽車安全領域的領導地位，並看到主動安全功能的滲透率不斷提高，推動了對我們的圖像傳感器和超聲波傳感器的強勁需求。

In Q2, we secured significant wins for our image sensors on key platforms in Asia and in a few cases, we displaced the incumbents.

在第二季度，我們的圖像傳感器在亞洲的主要平台上取得了重大勝利，在少數情況下，我們取代了現有公司。

With increasing sensor content, especially in new electric vehicle platforms, we remain bullish on our ADAS business.

隨著傳感器內容的增加，特別是在新的電動汽車平台中，我們仍然看好我們的 ADAS 業務。

We recently announced that AutoX had selected our intelligent sensing technologies to enable 360 vision in its generation 5 fully driverless robo-taxi.

我們最近宣布 AutoX 選擇了我們的智能傳感技術，在其第 5 代完全無人駕駛的自動駕駛出租車中實現 360 度全景視覺。

On this platform, our 28 image sensors and 4 3D LiDAR sensors eliminate blind spots and power full autonomy.

在這個平台上，我們的 28 個圖像傳感器和 4 個 3D LiDAR 傳感器消除了盲點並為完全自主提供動力。

The industrial end market, which includes military, aerospace and medical, contributed revenue of $434 million in Q2 and representing approximately 26% of our revenue.

包括軍事、航空航天和醫療在內的工業終端市場在第二季度貢獻了 4.34 億美元的收入，約占我們收入的 26%。

Excluding the impact from geopolitical factors related to a specific customer, our second quarter industrial revenue increased by 29% year-over-year driven by broad-based demand and strong performance by our power and sensing technology portfolio.

排除與特定客戶相關的地緣政治因素的影響，我們第二季度的工業收入同比增長 29%，這主要得益於廣泛的需求以及我們的電力和傳感技術組合的強勁表現。

We are seeing continuing momentum for our higher-power modules and alternative energy applications given the investments in utility scale solar installations that are expected to grow worldwide to reduce the climate impact of fossil fuel-based power plants.

鑑於對公用事業規模太陽能裝置的投資預計將在全球範圍內增長，以減少基於化石燃料的發電廠對氣候的影響，我們看到我們的高功率模塊和替代能源應用的持續發展勢頭。

With a broad range of power solutions and early engagement with key market disruptors, we are well positioned to grow in the market.

憑藉廣泛的電源解決方案和與主要市場顛覆者的早期合作，我們已做好在市場中增長的準備。

On the industrial automation front, we saw steep year-over-year growth in our imaging revenue, driven by machine vision and Scanning applications.

在工業自動化方面，在機器視覺和掃描應用的推動下，我們的成像收入同比大幅增長。

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

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

Thad?

泰德？

Thanks, Hassane.

謝謝，哈桑。

I'm pleased to announce a record quarter as we are seeing the early impact of our transformation initiatives and our financial results.

我很高興地宣布一個創紀錄的季度，因為我們看到了轉型計劃和財務業績的早期影響。

Customer demand remained strong, and the design win pipeline for our innovative power and sensing technologies continue to expand.

客戶需求依然強勁，我們的創新電源和傳感技術的設計贏得渠道不斷擴大。

We have been successful in securing additional supply from our internal manufacturing sites as we optimize our efficiency, which contributed to revenue at the high end of our guidance.

隨著我們優化我們的效率，我們成功地從我們的內部製造基地獲得了額外的供應，這為我們指導的高端收入做出了貢獻。

Based on our current outlook, we expect strength and demand to continue through the first half of 2022.

根據我們目前的展望，我們預計實力和需求將持續到 2022 年上半年。

The company has been executing on long-term and sustainable actions that have resulted in record revenue, earnings and free cash flow for the second quarter.

該公司一直在執行長期和可持續的行動，從而在第二季度創造了創紀錄的收入、收益和自由現金流。

In a few days at our Analyst Day, we will share our long-term strategy and operational plans to realize the full potential of the company.

幾天后的分析師日，我們將分享我們的長期戰略和運營計劃，以充分發揮公司的潛力。

So turning to the results for the quarter.

所以轉向本季度的結果。

We saw a broad-based strength contributing to sequential revenue growth across all end markets, regions and business units.

我們看到了廣泛的優勢，有助於所有終端市場、地區和業務部門的收入連續增長。

Secular mega trends in automotive and industrial contributed to record revenue in both of these end markets and together comprised 59% of revenue.

汽車和工業的長期大趨勢為這兩個終端市場創造了創紀錄的收入，合計佔收入的 59%。

Total revenue for the second quarter was $1.67 billion, an increase of 38% over the second quarter of 2020 and 13% quarter-over-quarter versus normal seasonality of a sequential increase of 3% to 5%.

第二季度總收入為 16.7 億美元，比 2020 年第二季度增長 38%，環比增長 13%，而正常季節性環比增長 3% 至 5%。

Our automotive revenue grew 69% year-over-year and 8% sequentially.

我們的汽車收入同比增長 69%，環比增長 8%。

Industrial revenue grew 24% year-over-year and 18% sequentially.

工業收入同比增長 24%，環比增長 18%。

Turning to the business units.

轉向業務部門。

Revenue for the Power Solutions Group, or PSG, was $846.6 million.

Power Solutions Group (PSG) 的收入為 8.466 億美元。

PSG revenue increased by 37% year-over-year due to strength in automotive and industrial end markets.

由於汽車和工業終端市場的強勢，PSG 收入同比增長 37%。

Revenue for the Advanced Solutions Group, or ASG, was $607.6 million, an increase of 42% year-over-year.

Advanced Solutions Group (ASG) 的收入為 6.076 億美元，同比增長 42%。

In addition to the strength in automotive, ASG benefited from strength in computing, especially in high-end graphics cards.

除了汽車領域的實力，ASG 還受益於計算領域的實力，尤其是在高端顯卡方面。

Revenue for the Intelligent Sensing Group, or ISG, in the second quarter was $215.7 million, an increase of 28% year-over-year.

智能傳感集團 (ISG) 第二季度的收入為 2.157 億美元，同比增長 28%。

Strength in ISG was driven primarily by automotive.

ISG 的實力主要由汽車驅動。

GAAP gross margin for the second quarter was 38.3% and non-GAAP gross margin was 38.4%, a 760 basis point improvement year-over-year and 320 basis point improvement sequentially.

第二季度 GAAP 毛利率為 38.3%，非 GAAP 毛利率為 38.4%，同比提高 760 個基點，環比提高 320 個基點。

Our strong gross margin performance over the last few quarters has been driven by strong execution, a favorable mix to higher-margin products, improved efficiencies in our manufacturing sites and cost-containment initiatives across the company.

過去幾個季度我們強勁的毛利率表現是由強大的執行力、對利潤率更高的產品的有利組合、生產基地效率的提高以及整個公司的成本控制舉措所推動的。

Our factory utilization was 83%, which was relatively consistent with Q1 at 84%.

我們的工廠利用率為 83%，與第一季度的 84% 相對一致。

As we move forward, our fab liner strategy will allow us to continue to reduce our manufacturing footprint and overall cost structure while increasing capacity to support the demand of our customers.

隨著我們向前發展，我們的晶圓廠班輪戰略將使我們能夠繼續減少我們的製造足跡和整體成本結構，同時增加支持客戶需求的能力。

GAAP earnings per share for the second quarter was $0.42 per diluted share.

第二季度的GAAP每股收益為每股攤薄收益0.42美元。

Non-GAAP earnings per share was $0.63 per diluted share as compared to $0.12 per share in the second quarter of 2020 and $0.35 in Q1.

Non-GAAP 每股收益為每股攤薄收益 0.63 美元，而 2020 年第二季度為每股 0.12 美元，第一季度為 0.35 美元。

As noted earlier, this is the highest-ever quarterly non-GAAP EPS reported by the company.

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.

現在讓我為您的模型提供一些額外的數字。

GAAP operating expenses for the second quarter of 2021 was $357.9 million.

2021 年第二季度的 GAAP 運營費用為 3.579 億美元。

Non-GAAP operating expenses were $314.2 million, a decline of $10.5 million quarter-over-quarter as we continue to see the favorable impact of our cost reduction initiatives launched in Q1.

非 GAAP 運營費用為 3.142 億美元，環比下降 1,050 萬美元，因為我們繼續看到我們在第一季度推出的降低成本計劃的有利影響。

Our GAAP operating margin in the second quarter was 16.9% as compared to 3.6% in the second quarter of 2020.

我們第二季度的 GAAP 營業利潤率為 16.9%，而 2020 年第二季度為 3.6%。

Our non-GAAP operating margin was at the highest level since 2010, coming in at 19.6% as compared to 7.4% in the second quarter of 2020 and 13.3% in Q1.

我們的非美國通用會計準則營業利潤率處於 2010 年以來的最高水平，為 19.6%，而 2020 年第二季度為 7.4%，第一季度為 13.3%。

Our GAAP diluted share count was 443.6 million shares, and our non-GAAP diluted share count was 435 million shares.

我們的 GAAP 稀釋後股票數量為 4.436 億股，我們的非 GAAP 稀釋後股票數量為 4.35 億股。

Please note, we have included an updated reference table on the Investor Relations section of our website to assist you with calculating our diluted share count at various share prices.

請注意，我們在網站的投資者關係部分提供了更新的參考表，以幫助您計算我們在不同股價下的稀釋股數。

So turning to the balance sheet.

所以轉向資產負債表。

Cash and cash equivalents was $1.09 million, and we had -- sorry, $1.09 billion, and we had $1.97 billion undrawn on our revolver.

現金和現金等價物是 109 萬美元，我們有 - 對不起，10.9 億美元，我們的左輪手槍有 19.7 億美元未動用。

Cash from operations was $488 million, and free cash flow was $383 million or 23% of revenue.

運營現金為 4.88 億美元，自由現金流為 3.83 億美元，佔收入的 23%。

Capital expenditures during the quarter of 2021 was $104.8 million, which equates to a capital intensity of 6.3%.

2021 年季度的資本支出為 1.048 億美元，相當於 6.3% 的資本密集度。

As we indicated previously, we are directing a significant portion of our capital expenditures towards enabling our 300-millimeter capabilities at our East Fishkill fab.

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 毫米的能力。

Accounts receivable was $669 million, resulting in DSO of 37 days.

應收賬款為 6.69 億美元，DSO 為 37 天。

Inventory increased $13.8 million sequentially to $1.31 billion, and days of inventory decreased 8 days to 116 days.

庫存環比增加 1380 萬美元至 13.1 億美元，庫存天數減少 8 天至 116 天。

Distribution weeks of inventory decreased again by $42.6 million to 7.3 weeks from 8.4 weeks in Q1, which is below our target range of 11 to 13 weeks.

庫存配送周數從第一季度的 8.4 週再次減少 4260 萬美元至 7.3 週，低於我們 11 至 13 週的目標範圍。

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.

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。

Total debt was $3.3 billion, and we paid down $120 million in the quarter.

總債務為 33 億美元，我們在本季度償還了 1.2 億美元。

So turning to guidance for the third quarter.

因此轉向第三季度的指導。

A table detailing our GAAP and non-GAAP guidance is provided in the press release related to our second quarter results.

與我們第二季度業績相關的新聞稿中提供了詳細說明我們的 GAAP 和非 GAAP 指導的表格。

Let me now provide you with the key elements of our non-GAAP guidance for the third quarter.

現在讓我為您提供我們第三季度非公認會計準則指導的關鍵要素。

As mentioned, we believe demand will remain strong for the remainder of the year.

如前所述，我們認為今年剩餘時間需求將保持強勁。

Although we continue to increase our supply through operational efficiencies, we'll be limited by supply constraints and are working with our strategic customers to provide long-term support.

儘管我們繼續通過提高運營效率來增加供應，但我們將受到供應限制，並正在與我們的戰略客戶合作以提供長期支持。

Based on current bookings trends, backlog levels, we anticipate the revenue for the third quarter will be in the range of $1.66 billion to $1.76 billion.

根據當前的預訂趨勢和積壓水平，我們預計第三季度的收入將在 16.6 億美元至 17.6 億美元之間。

We expect gross margin between 39% to 41%, and this includes share-based compensation of $3.7 million.

我們預計毛利率在 39% 至 41% 之間，其中包括 370 萬美元的股票薪酬。

We expect non-GAAP operating expenses of $305 million to $320 million, and this includes share-based compensation of $19.2 million.

我們預計非 GAAP 運營費用為 3.05 億美元至 3.2 億美元，其中包括 1920 萬美元的股票薪酬。

We anticipate our non-GAAP OIE including interest expense will be $26 million to $29 million.

我們預計包括利息費用在內的非公認會計原則 OIE 將為 2600 萬美元至 2900 萬美元。

So this results in non-GAAP earnings per share in the range of $0.68 to $0.80.

因此，這導致非公認會計原則每股收益在 0.68 美元至 0.80 美元之間。

We expect capital expenditures of $100 million to $110 million in the third quarter of 2021, and our non-GAAP diluted share count is expected to be in the range of 436 million shares.

我們預計 2021 年第三季度的資本支出為 1 億至 1.1 億美元，我們的非公認會計原則稀釋後的股票數量預計將在 4.36 億股之間。

So in summary, I'm extremely pleased with our early progress and the execution of our transformation initiatives.

總而言之，我對我們的早期進展和轉型計劃的執行感到非常滿意。

I add my thanks to our worldwide teams for their hard work and unwavering commitment to our customers, and I look forward to seeing you all at our Analyst Day in New York in a few days.

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，我期待幾天后在紐約的分析師日與大家見面。

With that, I'll turn the call back over to the operator to open the line for Q&A.

有了這個，我會將電話轉回給接線員以打開問答線路。

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

（操作員說明）您的第一個問題來自德意志銀行的 Ross Seymore。

Congrats on the results.

祝賀結果。

Hassane, I want to talk a little bit about the demand and the shortage commentary you had.

哈桑，我想談談你的需求和短缺評論。

I believe last quarter, you thought that the demand would kind of stabilize, the velocity might -- of the increase might slow, but shortages would abate in the second half of the year.

我相信上個季度，您認為需求會趨於穩定，增長速度可能會放緩，但下半年短缺會有所緩解。

It seems like you've pushed that out into the first half of next year.

看來你已經把它推到了明年上半年。

So I guess what's changed with any color on the demand side?

所以我猜在需求方面，任何顏色都發生了什麼變化？

And how can you be confident that there's no double ordering within that?

你怎麼能確信其中沒有雙重排序？

Sure.

當然。

That's a good question.

這是個好問題。

Look, the demand environment, as we've always stated, is very dynamic.

看，正如我們一直所說的，需求環境是非常動態的。

We see it basically pushing out into the first half of next year.

我們認為它基本上會推遲到明年上半年。

That's based on our backlog based on customer interactions and really based on the LTSAs that we have been engaging with on customers, either signed or in active engagement.

這是基於我們基於客戶互動的積壓工作，實際上是基於我們一直在與客戶接觸的 LTSA，無論是已簽署還是積極參與。

Now as far as the double ordering, we're managing our supply chain to make sure that doesn't happen as far as having it in the channel.

現在就雙重訂購而言，我們正在管理我們的供應鏈，以確保在渠道中不會發生這種情況。

So we have been reducing and managing inventory very closely.

因此，我們一直在非常密切地減少和管理庫存。

That keeps the inventory on our balance sheet but allows us to service strategic customers as we see the demand from the end customer without really accounting for any, call it, buffer stocking that you may or may not see in the distribution channel or anywhere in between us and OEM.

這將庫存保留在我們的資產負債表上，但允許我們在看到最終客戶的需求時為戰略客戶提供服務，而無需真正考慮您在分銷渠道或兩者之間的任何地方可能會或可能不會看到的任何緩衝庫存我們和 OEM。

So that's how we're managing, call it, tactical, but that's what we need to do right now to make sure that we're not going to suffer from the double ordering.

所以這就是我們管理的方式，稱之為戰術，但這就是我們現在需要做的，以確保我們不會遭受雙重訂單的影響。

So that gives me the confidence, given the numbers of the inventory that have been reducing and building up on our balance sheet, that we are literally tackling end demand on a one-to-one basis with our direct customers.

因此，考慮到我們資產負債表上不斷減少和增加的庫存數量，這讓我有信心，我們實際上是在與直接客戶一對一地解決最終需求。

I guess as my follow-up for either you or Thad on the gross margin side of things, that's probably the most impressive line given where ON has been historically and the challenges it's faced.

我想作為我對你或泰德在毛利率方面的後續行動，這可能是最令人印象深刻的路線，因為 ON 在歷史上和它所面臨的挑戰。

Can you just talk a little bit about what drove the upside even to your guidance in the second quarter, similarly for the third quarter?

您能否簡單談談是什麼推動了您在第二季度甚至第三季度的指導上的上漲？

And a higher-level question, how much of that do you believe is structural versus just you guys benefiting from some pretty strong cyclical tailwinds that, as we've learned in the past, can come and go at different times?

還有一個更高層次的問題，你認為其中有多少是結構性的，而不是你們從一些非常強勁的周期性順風中受益，正如我們過去所了解的那樣，這些順風可以在不同的時間來來去去？

Yes.

是的。

I mean if you look at the components of the gross margin strength, obviously, we've always said in the first and second quarter now, we have, call it, thousands of line items that we are structurally working on improving our operation and streamlining our business that's going to drive gross margin expansion.

我的意思是，如果你看一下毛利率實力的組成部分，顯然，我們現在在第一季度和第二季度一直說，我們有數千個項目，我們正在從結構上改進我們的運營和精簡我們的業務將推動毛利率擴張。

Those have been firing on all cylinders, and we are seeing the benefit incrementally and you're going to see that in our guide for Q3.

這些一直在全力以赴，我們正在逐漸看到好處，您將在我們的第三季度指南中看到這一點。

So those, I would call structural.

所以那些，我稱之為結構性的。

If you look at utilization.

如果你看利用率。

Utilization has been flat from last quarter, but you see a big gross margin jump.

利用率與上一季度持平，但您會看到毛利率大幅增長。

That also is what I would call structural.

這也是我所說的結構性。

It's not really tied to utilization per se because utilization is flat.

它與利用率本身並沒有真正的聯繫，因為利用率是持平的。

So the jump from Q1 to Q2 is on all the other work that we have been doing.

所以從第一季度到第二季度的跳躍是我們一直在做的所有其他工作。

So we continue to streamline our operation, take cost out of our products and portfolio mix and portfolio rationalization.

因此，我們繼續精簡我們的運營，從我們的產品和產品組合組合以及產品組合合理化中降低成本。

A couple of quarters ago, I was asked if that would be delayed because of the demand environment.

幾個季度前，有人問我是否會因為需求環境而推遲。

My commentary has been it's actually going to be accelerated because it's going to force us to shift faster to our strategic products that will drive higher margin.

我的評論是它實際上會加速，因為它將迫使我們更快地轉向我們的戰略產品，這將推動更高的利潤率。

So you're seeing some of that portfolio mix happening earlier than we anticipated.

所以你看到一些投資組合比我們預期的更早發生。

So all of these components will tell you that it is structural, it is sustainable and forward-looking, I'm very bullish on the capability of our gross margin expansion.

所以所有這些組成部分都會告訴你它是結構性的，它是可持續的和前瞻性的，我非常看好我們的毛利率擴張能力。

Yes.

是的。

I would just -- I think you nailed it there, Hassane.

我只是——我想你已經成功了，哈桑。

I think if you look at the upside compared to our guidance, we were able to get more supply out of our manufacturing sites and then, obviously, we're getting favorable mix out of that as well, which is helping with the gross margin.

我認為，如果你看一下與我們的指導相比的上行空間，我們能夠從我們的製造基地獲得更多的供應，然後，顯然，我們也從中獲得了有利的組合，這有助於提高毛利率。

But absolutely agree, it's structural changes that we're making inside the company.

但絕對同意，這是我們在公司內部進行的結構性改變。

Your next question comes from Charles Danely from Citi Group.

您的下一個問題來自花旗集團的 Charles Danely。

I think you got the wrong name, but I'll speak up for my unborn son named Charles.

我想你的名字弄錯了，但我會為我未出生的兒子查爾斯挺身而出。

It's Chris.

是克里斯。

Can you just be a little more specific on the gross margin drivers?

你能更具體地談談毛利率驅動因素嗎？

Was there any pricing involved?

是否涉及任何定價？

Are you cutting specific product lines?

您是否正在削減特定的產品線？

It's just a big jump given that utilization rates didn't do anything.

鑑於利用率沒有做任何事情，這只是一個很大的飛躍。

Any specifics there would be great.

任何細節都會很棒。

Yes.

是的。

I mean it's spread across the board.

我的意思是它分佈在各個方面。

Of course, there is some what I referred to price to value discrepancy.

當然，我所說的價格與價值之間存在一些差異。

So we have been looking at our pricing from a strategic perspective.

因此，我們一直從戰略角度看待我們的定價。

What products and what pricing they need to be in the market to extract the value that we provide for our customers.

他們需要什麼樣的產品和什麼樣的定價才能在市場上提取我們為客戶提供的價值。

Cost is a big factor, not just product cost, but supply chain costs, upstream and downstream supply chain costs.

成本是一個很大的因素，不僅僅是產品成本，還有供應鏈成本，上下游供應鏈成本。

Some of the increases that we've seen, we've passed those on to customers, as I've described in prior calls.

正如我在之前的電話中所描述的那樣，我們已經看到了一些增長，我們已經將它們傳遞給了客戶。

So it's really -- Chris, it's across the board.

所以真的- 克里斯，它是全面的。

There's not a big step function that I would anchor on because when we look at incrementally, it came from all of these swim lanes that we have been launched and working on since -- really since the December time frame when I came in, I said we're structuring gross margin.

我不會錨定一個大的階梯函數，因為當我們逐步觀察時，它來自所有這些我們已經啟動和工作的泳道 - 真的是從我進入的 12 月時間框架開始，我說我們正在構建毛利率。

I have a specific owner in the company that drives gross margin improvements for the company.

我在公司有一個特定的所有者，可以推動公司毛利率的提高。

And we have about, call it, 1,000 swim lanes that we are delivering to.

我們有大約 1,000 條泳道，我們正在運送到這些泳道。

And those are starting to come out now because it takes time to get those through the supply chain and now is the quarter where we see it.

這些現在開始出現，因為通過供應鏈需要時間，現在是我們看到它的季度。

And they're going to continue in the forward-looking quarters as well given the Q3 guidance range.

考慮到第三季度的指導範圍，它們也將在前瞻性季度中繼續存在。

Great.

偉大的。

And then for my follow-up, you mentioned you expect the shortages to extend into next year.

然後在我的後續行動中，你提到你預計短缺會延續到明年。

Can you just talk about where your lead times are these days or what they did sequentially?

你能談談這些天你的交貨時間在哪裡，或者他們按順序做了什麼嗎？

Did they extend during the quarter?

他們在本季度延長了嗎？

Were they flat, up or down?

它們是平的，向上還是向下？

Yes, Chris, the last quarter, our lead times were in the low 30-week range.

是的，克里斯，上個季度，我們的交貨時間在 30 週以內。

We're now up to about 42 weeks.

我們現在大約 42 週。

So they've gone out by about 10 weeks sequentially.

所以他們已經連續退出了大約 10 週。

Obviously, we're working on that, but that's another reason that is giving us -- on one hand, giving us more visibility, but why we see the supply constraints being limited as we look forward.

顯然，我們正在努力，但這是給我們的另一個原因 - 一方面，給我們更多的可見性，但為什麼我們看到供應限制是有限的，因為我們期待。

Your next question comes from Vivek Arya from Bank of America.

您的下一個問題來自美國銀行的 Vivek Arya。

Congratulations on the gross margin and especially the free cash flow improvement.

祝賀毛利率，尤其是自由現金流的改善。

My first question, Hassane, is that investors are trying to grapple with the situation where, as you mentioned, demand is strong, but will the supply environment stay disciplined.

哈桑，我的第一個問題是，正如你所提到的，投資者正在努力應對這種情況，即需求強勁，但供應環境會保持自律。

So the specific question is, how undersupplied is the industry right now?

所以具體的問題是，這個行業現在供應不足到什麼程度？

And you mentioned the situation could persist until the first half.

你提到這種情況可能會持續到上半年。

Is that based on demand levels staying at current levels or what they could be next year?

這是基於保持在當前水平的需求水平還是明年可能的水平？

Just basically, what are your views about the supply response from ON and your peer group to give investors the comfort that the supply response from the industry is not going to change this very strong discipline and the pricing dynamic that your industry is benefiting from right now?

基本上，您對 ON 和您的同行群體的供應反應有何看法，讓投資者放心，該行業的供應反應不會改變這一非常強大的紀律和您的行業目前從中受益的定價動態?

Yes.

是的。

That's a good question.

這是個好問題。

I can really speak for ON and what we're doing here.

我真的可以代表 ON 和我們在這裡所做的事情。

Of course, the fear is the reaction you go and build capacity for across the board.

當然，恐懼是你為全面建設能力而做出的反應。

But if you look at what we are doing specifically and why I'm comfortable with the forward-looking view of our margin and our posture really with the gross margin expansion is we are selectively adding capacity where we see the growth in our strategic products forward-looking.

但是，如果您看看我們具體在做什麼，以及為什麼我對我們的利潤率的前瞻性看法以及我們對毛利率擴張的態度感到滿意，我們正在選擇性地增加產能，因為我們看到我們的戰略產品向前發展-看著。

So we're not adding capacity for the sake of adding capacity.

所以我們不是為了增加容量而增加容量。

We are first shifting from a lot of what we call the legacy portfolio into the strategic growth and adding capacity there.

我們首先從我們所謂的傳統投資組合轉變為戰略增長並在那裡增加產能。

So as we are increasing our top line, given the supply relief that we're getting through our supply chain, those are coming from strategic growth products.

因此，隨著我們增加收入，考慮到我們通過供應鏈獲得的供應緩解，這些都來自戰略增長產品。

So when I look at our strategic plans moving forward, and we'll give a little bit more color at Analyst Day, that's where we're expanding the capacity.

因此，當我看到我們向前發展的戰略計劃時，我們將在分析師日給予更多色彩，這就是我們擴大產能的地方。

It is not equal for all.

並非所有人都平等。

So there are demand signals on our -- and our visibility on our customers that we are not servicing beyond what we can today.

因此，我們的需求信號以及我們對客戶的可見性表明，我們提供的服務超出了我們今天的能力範圍。

So I'm not adding capacity there.

所以我不會在那裡增加容量。

We're selective.

我們是有選擇性的。

We're very disciplined on where we add capacity, and we're adding it in our growth product that are strategic, and those will be driving the gross margin forward-looking.

我們在增加產能方面非常自律，我們正在將其添加到我們的戰略增長產品中，這些將推動毛利率的前瞻性。

So very selective, not a shotgun approach.

所以非常有選擇性，而不是霰彈槍方法。

Got it.

知道了。

And for my follow-up, actually, a clarification and a question.

對於我的後續行動，實際上是一個澄清和一個問題。

On the clarification side, any impact from shutdowns or COVID-related issues in Southeast Asia from a supply side?

在澄清方面，供應方面的東南亞停工或 COVID 相關問題有何影響？

And then, Hassane, you sound really very confident about ON's prospects in the electrification side.

然後，Hassane，你聽起來對 ON 在電氣化方面的前景非常有信心。

So could you help us understand what is your current exposure to EVs?

那麼，您能幫助我們了解您目前對電動汽車的了解程度嗎？

And what kind of content growth do you see both on the powertrain and the ADAS side as the industry moves more towards EVs?

隨著行業更多地轉向電動汽車，您認為動力總成和 ADAS 方面的內容增長如何？

So let me answer the EV first.

所以讓我先回答EV。

Our exposure, obviously, this is starting to grow.

顯然，我們的曝光率開始增長。

I'm very bullish.

我非常看好。

I'm not going to -- I can't even hide it.

我不會——我什至無法隱藏它。

So I'm glad you really picked it up.

所以我很高興你真的把它撿起來了。

So I'm very bullish with our posture, both on automotive safety and electrification.

所以我非常看好我們在汽車安全和電氣化方面的姿態。

Electrification penetration is starting to pick up.

電氣化滲透率開始回升。

We're well positioned with strategic OEMs directly, but also through their Tier 1 supply chain.

我們直接與戰略 OEM 建立了良好的關係，同時也通過他們的一級供應鏈。

So that is really forward-looking how I look at the market and really where our R&D investments are happening.

因此，我對市場的看法以及我們的研發投資正在發生的地方確實具有前瞻性。

If you recall, we did a big restructure at the beginning of the year.

如果你還記得，我們在年初進行了一次大的重組。

That's moving R&D and capacity and capital into those markets, because I see the design wins, I have personally engaged with customers.

這將研發、能力和資本轉移到這些市場，因為我看到設計獲勝，我親自與客戶接觸。

We have LTSH as it relates to vehicle electrification.

我們有 LTSH，因為它與車輛電氣化有關。

All of these make me very bullish, but more importantly, very excited on the potential of ON in these markets.

所有這些都讓我非常看好，但更重要的是，我對 ON 在這些市場的潛力感到非常興奮。

For your question about the COVID disruption, yes, we have seen disruption related to COVID in some of our supply chain, direct or indirect.

對於您關於 COVID 中斷的問題，是的，我們已經在我們的一些供應鏈中看到與 COVID 相關的中斷，無論是直接的還是間接的。

But back to the demand environment, I thank our operations and our manufacturing teams worldwide, we were able to really redirect and service more demand by shifting the mix again.

但回到需求環境，我感謝我們在全球範圍內的運營和製造團隊，我們能夠通過再次改變組合來真正重定向和服務更多需求。

So there was disruption, we overcome that disruption and now we're back on track.

所以出現了乾擾，我們克服了這種干擾，現在我們回到了正軌。

So let's call it a blip that we were able to sustain given the demand and given the work that we're doing on releasing more capacity.

因此，考慮到需求和我們在釋放更多容量方面所做的工作，我們可以稱其為一個暫時現象。

Your next question comes from Toshiya Hari from Goldman Sachs.

您的下一個問題來自高盛的 Toshiya Hari。

Congrats on the strong results.

恭喜取得了不錯的成績。

Hassane, I had a 2-part question on gross margin.

哈桑，我有一個關於毛利率的兩部分問題。

You talked about addressing price-to-value discrepancies.

您談到了解決價格與價值之間的差異。

Just curious what percentage of the discrepancies have you been able to execute on in the form of price increases?

只是好奇您能夠以價格上漲的形式執行多少百分比的差異？

And how much left is there to go?

還剩下多少？

Guessing your tenure at ON, I'm guessing it's still very early innings, but curious how much is left.

猜測你在 ON 的任期，我猜這仍然是很早的一局，但很好奇還剩下多少。

And then as my second part, in terms of the 300-millimeter transition, again, I believe it's very early in the process, but how do you see that evolving over the next couple of years and the impact on gross margins?

然後作為我的第二部分，就 300 毫米過渡而言，我相信這還處於過程的早期階段，但您如何看待未來幾年的發展以及對毛利率的影響？

Sure.

當然。

So the first question as it relates to price-to-value, obviously, this is an ongoing effort.

因此，第一個問題與價格與價值有關，顯然，這是一項持續的努力。

I would put it under the portfolio rationalization overall.

我會把它放在整體的投資組合合理化之下。

So I don't break it out because of price or because of the shift because all of those are material.

所以我不會因為價格或轉變而打破它，因為所有這些都是重要的。

If you start moving the shift to high-value products, without touching the price, that's going to impact the value you provide to customers.

如果你開始轉向高價值產品，而不觸及價格，那將影響你為客戶提供的價值。

So I would say, like you mentioned, we're not done yet.

所以我想說，就像你提到的，我們還沒有完成。

That's a continuous improvement.

這是一個持續的改進。

Everywhere we look, there is opportunity.

我們所見之處，處處都是機會。

And more importantly, it's the momentum that the company is getting.

更重要的是，這是公司獲得的動力。

If you think about it, the first couple of quarters, I've been pushing a lot of that from the top.

如果你想一想，前幾個季度，我一直在從高層推動很多。

Right now, it's part of our culture.

現在，它是我們文化的一部分。

It's part of how the teams are thinking about pricing strategies from new products and moving forward.

這是團隊如何考慮新產品定價策略和前進的一部分。

So it's not a blip in time where, because of that environment, we're able to extract the value.

因此，由於這種環境，我們能夠提取價值並不是一個短暫的時間。

It is structurally how we're moving forward.

從結構上講，這是我們前進的方式。

So new products are not going to be having those issues of the price-to-value discrepancies because we are pricing the new products and delivering the new products exactly at the value they provide customers.

因此，新產品不會出現價格與價值差異的問題，因為我們正在為新產品定價，並按照它們為客戶提供的價值準確交付新產品。

So that's really how I look at it.

所以我真的是這麼看的。

Does that help?

這有幫助嗎？

It does.

確實如此。

And then the 300-millimeter transition?

然後是 300 毫米的過渡？

And sorry, as my follow-up, just on the OpEx side of things, I think you came in below the low end of your range for Q2, roughly 19% of sales.

抱歉，作為我的後續行動，僅在運營支出方面，我認為您的收入低於第二季度範圍的低端，約佔銷售額的 19%。

And then for Q3, your guidance implies an OpEx-to-sales ratio of around 18%.

然後對於第三季度，您的指導意味著運營支出與銷售額的比率約為 18%。

That compares with the prior management team's long-term target of 21%.

相比之下，之前的管理團隊的長期目標是 21%。

So just curious, is 18% sort of the new normal?

所以只是好奇，18% 是新常態嗎？

Is it going to be a little bit higher, a little bit lower?

會不會高一點，低一點？

Any thoughts on OpEx going forward would be helpful as well.

任何關於 OpEx 未來發展的想法都會有所幫助。

Sure.

當然。

So on the 300-millimeter, obviously, it's a strategic asset.

所以在 300 毫米上，很明顯，它是一種戰略資產。

We have been working with GLOBALFOUNDRY on our transition.

我們一直在與 GLOBALFOUNDRY 合作進行過渡。

We have not taken ownership of that fab yet.

我們還沒有獲得該工廠的所有權。

However, we're working very closely on starting to move volume into that fab.

但是，我們正在密切合作，開始將批量轉移到該工廠。

So when we take ownership, we hit the ground running.

因此，當我們獲得所有權時，我們就開始行動了。

And that, of course, is going to be supportive of our gross margin efforts from a product cost perspective.

當然，從產品成本的角度來看，這將支持我們的毛利率努力。

Where we are there, we're on track.

我們在哪裡，我們就在軌道上。

I review this regularly as far as how many products have we qualified in the 300-millimeter fab.

就我們在 300 毫米晶圓廠中合格的產品數量而言，我會定期對此進行審查。

But more importantly, the customers that have qualified that fab for us to be able to ramp with them over '22 and into '23.

但更重要的是，那些讓我們有資格使用該晶圓廠的客戶能夠在 22 年和 23 年與他們一起升級。

So that's all on track.

所以這一切都在軌道上。

I'm happy with the progress.

我對進展感到滿意。

So that asset is going to be favorable for us in the long run, both from a capacity but also from a cost structure.

因此，從長遠來看，無論是從產能還是從成本結構來看，這項資產都會對我們有利。

And I'll let Thad comment on the OpEx.

我會讓 Thad 對 OpEx 發表評論。

Yes.

是的。

On the OpEx side of things, to remind you, in Q1, we did a restructuring activity, and we said we'd realize the benefit of that cost savings over the course of the year.

在運營支出方面，提醒您，在第一季度，我們進行了重組活動，我們說我們將在一年中實現成本節約的好處。

We accelerated that, and we're able to recognize some of that earlier, and that's the impact that you're seeing here in Q2 that's more favorable to our guidance.

我們加速了這一點，我們能夠更早地認識到其中的一些，這就是你在第二季度看到的影響，這對我們的指導更有利。

We still believe we're going to exit the year somewhere just north of $300 million on a quarterly run rate and that becomes the new baseline.

我們仍然相信，我們將以季度運行率在 3 億美元以上的地方退出這一年，這將成為新的基準。

Obviously, you've got the reset of FICA and things like that going into next year.

顯然，你已經重置了 FICA 以及類似的事情進入明年。

But that becomes kind of a run rate that we think we maintain.

但這成為我們認為我們維持的一種運行速度。

And then obviously, as we grow, we'll add OpEx back at a much slower pace than our revenue growth.

然後很明顯，隨著我們的增長，我們將以比收入增長慢得多的速度增加運營支出。

Your next question comes from Harsh Kumar from Piper Sandler.

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

First of all, strong congratulations.

首先，熱烈祝賀。

These are stunning results.

這些都是驚人的結果。

Hassane, I'm going to push you a little bit.

哈桑，我要推你一點。

In the last 5 years of results, I think the peak happened at $1.5 billion, a 38.5% gross margin.

在過去 5 年的業績中，我認為峰值發生在 15 億美元，毛利率為 38.5%。

I think it was like 2018 or something like that.

我認為這就像 2018 年或類似的事情。

You're now talking almost $1.7 billion, 40%.

你現在說的是近 17 億美元，佔 40%。

So my question is, you've got a higher run rate, higher margins.

所以我的問題是，你的運行率更高，利潤率更高。

How much is it a function of the actions that you've done and the actions that you've implemented in your opinion?

在您看來，您已完成的操作和已實施的操作在多大程度上是函數？

And I've got a follow-up.

我有後續行動。

Sure.

當然。

Of course, there's only one answer to that.

當然，答案只有一個。

It's all based on the stuff that we've been working on.

這一切都基於我們一直在努力的東西。

But let me talk about the timing of it.

但是讓我談談它的時機。

Of course, the demand environment has helped accelerate a lot of these, as I talked about before.

當然，正如我之前談到的那樣，需求環境幫助加速了其中的很多。

We've always had part of our structural or restructuring plan to start shifting portfolio and shifting that mix to high-value, high-margin, high-strategic products in our target markets of auto and industrial.

我們一直有部分結構或重組計劃開始轉變投資組合，並將其轉變為汽車和工業目標市場中的高價值、高利潤、高戰略產品。

That is part of the actions that we have been taking and we started taking since I joined.

這是我們一直在採取的行動的一部分，自我加入以來我們就開始採取行動。

They got accelerated with the demand environment.

他們隨著需求環境而加速。

Because of the capacity constraints, what we've done is we've released capacity from what I would call the legacy commodity products that we've always wanted to move away from part of my strategy faster into putting that capacity on high-value, high-growth and strategic products that will grow with us over the next 5 to 10 years.

由於產能限制，我們所做的是我們已經從我所說的傳統商品產品中釋放了產能，我們一直希望更快地從我的戰略的一部分中轉移到高價值的產能上，未來 5 到 10 年將與我們一起成長的高增長和戰略產品。

So the actions are all there.

所以所有的動作都在那裡。

The timing was accelerated and helped by the current environment.

當前環境加快了時間安排並提供了幫助。

I got you ...

我接到你了 ...

Does that answer you question, Harsh?

這能回答你的問題嗎，哈什？

Yes, it does and very helpful.

是的，確實如此，而且非常有幫助。

And then on -- following up on Toshiya's question, I wanted to talk fabs and cost cuts.

然後 - 跟進 Toshiya 的問題，我想談談晶圓廠和成本削減。

So can you remind us the timing of when you will actually have products running through Fishkill?

那麼你能提醒我們什麼時候你會真正讓產品通過 Fishkill 運行嗎？

Because that could be -- it could be a great benefit, also great cost if things don't go well and you're running the fab sort of empty.

因為那可能是——這可能是一個很大的好處，如果事情進展不順利，而且你的工廠處於空置狀態，它也會帶來巨大的成本。

So when will you be able to point when it's sort of utilized well from a timing angle?

那麼，你什麼時候才能從時間角度指出它什麼時候被很好地利用了呢？

And then with that big 12-inch fab coming your way, how many fabs do you think you'll eventually need?

然後隨著那座 12 英寸的大晶圓廠的到來，您認為最終需要多少個晶圓廠？

Yes.

是的。

So let me talk about East Fishkill first.

所以讓我先談談東菲什基爾。

We are running revenue and running volume today at East Fishkill.

我們今天在 East Fishkill 運行收入和運行量。

Remember, it's a shared fab today with us and GLOBALFOUNDRY.

請記住，這是今天與我們和 GLOBALFOUNDRY 共享的晶圓廠。

We have capacity or allocation part of that capacity out of the fab and GLOBALFOUNDRY has their capacity part of our original agreement.

我們擁有晶圓廠的產能或分配部分產能，而格芯擁有我們原始協議中的產能部分。

We are already shipping qualified products to end customers that are generating revenue out of that fab.

我們已經將合格的產品運送給從該工廠產生收入的最終客戶。

That revenue will keep increasing through '22, as I mentioned, and we're on track based on customer quals and our own product quals.

正如我所提到的，到 22 年，該收入將繼續增長，並且我們正在根據客戶質量和我們自己的產品質量走上正軌。

So that progression is there.

所以這種進展是存在的。

And obviously, we will be talking about utilization once we take ownership of that fab in '23 and through '24.

顯然，一旦我們在 23 年和 24 年獲得該晶圓廠的所有權，我們將討論利用率。

But right now, it's more of an allocation because the fab is still not owned by ON.

但現在，這更像是一種分配，因為工廠仍然不屬於 ON。

But I measure, in this case, are we shipping what we need to be shipping to our customers based on the quals because that's really the latency that you usually get, and we're on track with that.

但我衡量，在這種情況下，我們是否根據質量運送我們需要運送給客戶的東西，因為這確實是你通常會得到的延遲，我們正在努力解決這個問題。

As far as how many fabs we need to run our operations, obviously, that's not something I can comment on today.

至於我們需要多少晶圓廠來運營我們的業務，顯然，這不是我今天可以評論的事情。

My focus is really on rationalizing our manufacturing footprint to going to a fab lighter.

我的重點實際上是使我們的製造足跡合理化，以生產打火機。

So we will have less fabs, but I will be ready to comment more on it as we're ready, and we have communicated plans to that specifically.

因此，我們將擁有更少的晶圓廠，但我將準備好在我們準備好後對此發表更多評論，並且我們已經具體傳達了計劃。

Your next question comes from Mark Lipacis from Jefferies.

您的下一個問題來自 Jefferies 的 Mark Lipacis。

First question, sorry to come back to the gross margins, but it sounds like there's something really different going on with ON in the last 10 or 15 years.

第一個問題，很抱歉回到毛利率，但聽起來在過去的 10 或 15 年裡，ON 發生了一些真正不同的事情。

So Thad, in your script, I think when you talked about the gross margin upside, you said mix efficiency, execution and cost containment.

所以泰德，在你的劇本中，我認為當你談到毛利率上升時，你說的是混合效率、執行和成本控制。

I don't think I heard pricing in there.

我想我沒有聽到那裡的定價。

And then, Hassane, you used the expression price-to-value discrepancy, which I thought was a code word for we took prices up, but it sounds like it's -- you're shifting the mix on your limited capacity to the higher-value products.

然後，Hassane，你使用了價格與價值差異的表達，我認為這是我們提高價格的代名詞，但聽起來像是——你正在將你有限容量的組合轉移到更高的——價值產品。

So -- and so the question is on the last -- so I guess there's a clarification.

所以--所以問題在最後--所以我想有一個澄清。

I just want to make sure I got that right.

我只是想確保我做對了。

And for me, the question is over the last 10, 15 years, I covered ON when things are bad, you hear about 6% to 10% price pressure.

對我來說，問題是在過去的 10 年、15 年裡，當情況不妙時，我曾報導過，你會聽到大約 6% 到 10% 的價格壓力。

And then when things are good, you hear about 5% to 10% price improvements.

然後當情況好轉時，您會聽到大約 5% 到 10% 的價格改進。

Is that part of your business gone?

你的那部分業務消失了嗎？

Is this -- Is ON now a much lower volatility business on the -- much less subject to pricing pressure?

這是否——ON 現在是一個波動性低得多的業務——受定價壓力的影響要小得多？

And then I had a follow-up.

然後我進行了跟進。

So the short answer is yes.

所以簡短的回答是肯定的。

Strategically, if you -- I think one of -- it was the first conference that I attended back in January, the CES Conference, where I really put my focus on gross margin improvement through manufacturing footprint rationalization and product portfolio rationalization.

從戰略上講，如果你——我認為是其中之一——那是我在一月份參加的第一次會議，即 CES 會議，在那裡我真正把重點放在通過製造足跡合理化和產品組合合理化來提高毛利率。

Those are 2 strategic directions that I have set as far as what we need to do right now.

這是我為我們現在需要做的事情設定的兩個戰略方向。

So what does portfolio rationalization mean in the terms that you described, which are very accurate?

那麼，在您描述的非常準確的術語中，投資組合合理化意味著什麼？

One is, look at which products are we going to grow in and which products are legacy where we're not going to be investing in and start shifting that to the high-strategic products where we want to play.

一個是，看看我們要發展哪些產品，哪些產品是我們不會投資的遺留產品，然後開始將其轉移到我們想要開發的高戰略產品上。

Now that's more forward-looking, meaning it is not a point in time where those products are now better mix.

現在這更具前瞻性，這意味著這些產品現在不是更好組合的時間點。

And when the market goes the other way, we're going to have to see what you said, the 6%.

當市場走向相反的方向時，我們將不得不看看你所說的 6%。

What we are seeing is we are shifting that to the strategic products that are starting even to grow and will maintain growth over the next 5 to 10 years.

我們看到的是，我們正在將其轉移到甚至開始增長並將在未來 5 到 10 年內保持增長的戰略產品。

That's the structural portfolio mix that we have done.

這就是我們所做的結構性投資組合。

So what's different from the last 15 years is I don't need fab fillers.

所以與過去 15 年不同的是我不需要工廠填料。

When you have fab filler products, which are low-value, discrete commoditized products, you steep shoving them in the fab and they go up and down with the market.

當您擁有低價值、離散的商品化產品的晶圓廠填充產品時，您將它們陡峭地推入晶圓廠，它們會隨著市場漲跌。

We're moving away from that.

我們正在遠離這一點。

We are moving to strategic high-value products that are going to grow over time, and that capacity has been taken away from the discrete commodity product that caused that volatility.

我們正在轉向戰略性高價值產品，這些產品將隨著時間的推移而增長，而導致這種波動的離散商品產品的產能已被剝奪。

So in summary, when you shift your mix to strategic growth products, that volatility disappears because that's a growth trajectory and a growth trajectory only whatever demand does, it's going to be growth.

因此，總而言之，當您將組合轉移到戰略增長產品時，這種波動性就會消失，因為這是一條增長軌跡，而且只有無論需求如何，它都會是增長。

Maybe it's not high growth, but it's still growth.

也許這不是高增長，但它仍然是增長。

That's the structural impact of the portfolio rationalization.

這就是投資組合合理化的結構性影響。

I'm ready for your follow-up.

我準備好接受你的跟進了。

Yes, great.

對，很好。

That's really helpful.

這真的很有幫助。

The -- what are you looking at ON for leading indicators to tell you that customers are getting over their skis on their orders?

- 你在看什麼領先指標來告訴你客戶正在接受他們的訂單？

And maybe can you talk about any dynamics you're seeing on any cancellations or pushouts or anything like that?

也許你能談談你在任何取消或推出或類似的事情上看到的任何動態嗎？

Yes.

是的。

Look, there are many signs that we look at.

看，我們看到了很多跡象。

I have analytics to be able to see.

我有分析可以看到。

Obviously, you're not always going to see 100% around the corner.

顯然，您並不總是會看到 100% 即將到來。

But I'm comfortable with the visibility we get.

但我對我們得到的能見度感到滿意。

Both Thad and I review it more than once a week in order to make sure we don't miss anything.

Thad 和我每週都會復習一次以上，以確保我們不會遺漏任何內容。

But not to be joking about it, but the biggest gauge is how many escalation calls I get from customers is the biggest indicator.

但不是開玩笑，但最大的衡量標準是我從客戶那裡收到多少升級電話是最大的指標。

When I -- when my phone start ringing, it stops ringing off the hook 50 times a day, then I know we're not where we are today.

當我——當我的電話開始響起時，它每天停止響鈴 50 次，然後我知道我們不是今天的樣子。

So both of these, you have the analytics, but you also have that, call it, subjective feel that you get, and both of those lead me to believe that this is going into the first half of '22.

所以這兩個，你都有分析，但你也有，稱之為，你得到的主觀感覺，這兩個都讓我相信這將進入 22 年上半年。

And Mark, just to add, we're not seeing any meaningful cancellations or push outs at this time.

馬克，補充一下，我們目前沒有看到任何有意義的取消或推出。

We've also taken the inventory in the channels down so that we can manage that escalation process, whether that customer is in the channel or direct and essentially making sure customers are getting the inventory just as they need it rather than stockpiling it.

我們還降低了渠道中的庫存，以便我們可以管理升級過程，無論該客戶是在渠道中還是直接客戶，並且基本上確保客戶在需要時獲得庫存，而不是囤積庫存。

So we're doing our best to manage it, and I think we've got good analytics and visibility on what's happening right now.

所以我們正在盡最大努力管理它，我認為我們對目前正在發生的事情有很好的分析和可見性。

Your next question comes from Raji Gill from Needham & Company.

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

Congrats as well on great momentum across the board.

也祝賀全線的強勁勢頭。

Thad, just picking up on your commentary around the inventory.

泰德，剛剛收到您對庫存的評論。

I think last quarter you had talked about that you wanted to build inventory on your balance sheet while reducing inventory in the channel and that you're actively reducing channel inventory while holding more inventory on your own balance sheet in order to allocate the right products to the right customers and therefore, preventing any excess inventory sitting in the channel.

我認為上個季度您曾說過，您希望在資產負債表上建立庫存，同時減少渠道庫存，並且您正在積極減少渠道庫存，同時在自己的資產負債表上持有更多庫存，以便將正確的產品分配給正確的客戶，因此可以防止渠道中出現任何多餘的庫存。

Wondering how that strategy is playing out this quarter and how do we think about that over the next couple of quarters in a continuation of a supply-constrained environment.

想知道本季度該戰略如何實施，以及在供應受限的環境下，我們如何在接下來的幾個季度中考慮這一點。

Yes.

是的。

So we were at 8.4 weeks in the channel last quarter.

因此，上個季度我們在頻道中的時間為 8.4 週。

We're at 7.3 weeks this quarter.

我們本季度是 7.3 週。

So on a revenue value, that was a decrease of almost $43 million in channel inventory.

因此，就收入價值而言，渠道庫存減少了近 4300 萬美元。

At the same time, our balance sheet inventory went up slightly in terms of dollars, about $14 million, but down in terms of days, it went down in 8 days.

與此同時，我們的資產負債表存貨以美元計略有上升，約為 1400 萬美元，但以天數計，8 天內下降。

So we're still executing to that strategy of pointing that inventory.

因此，我們仍在執行指向該庫存的策略。

Obviously, as inventory becomes -- finished goods become available, we're shipping them.

顯然，隨著庫存的增加——成品變得可用，我們正在運送它們。

So as we look forward, we think we'll continue the strategy through the remainder of this year.

因此，展望未來，我們認為我們將在今年剩餘時間內繼續實施該戰略。

I think inventory in the channel is going to stay in this level, kind of plus or minus.

我認為渠道中的庫存將保持在這個水平，有正有負。

And I think our inventory on our balance sheet will probably remain relatively flat to down slightly, just depending on our capacity to get more supply.

而且我認為我們資產負債表上的庫存可能會保持相對平穩或略有下降，這取決於我們獲得更多供應的能力。

So through the remainder of this year, we don't see a change in our strategy of holding that inventory.

因此，在今年餘下的時間裡，我們持有該庫存的策略不會發生變化。

And just a couple more follow-ups, if I can.

如果可以的話，還有更多的後續行動。

Thad, you had mentioned that you had secured additional supply internally.

泰德，你提到你在內部獲得了額外的供應。

Wondering if you could elaborate further on how much supply you're able to get.

想知道您是否可以進一步詳細說明您可以獲得多少供應。

What were the steps that you did in order to kind of alleviate that supply and increase more supply?

為了減輕供應並增加更多供應，您採取了哪些措施？

And how do we think about more supply coming online, whether internally or externally?

我們如何看待更多的在線供應，無論是內部還是外部？

And just Hassane, I just have a question on the automotive revenue.

哈桑，我只是對汽車收入有疑問。

You've had record automotive revenue.

您擁有創紀錄的汽車收入。

You obviously want to shift to electric vehicles, energy -- renewable energy infrastructure.

你顯然想轉向電動汽車、能源——可再生能源基礎設施。

Maybe you can give us some updated thoughts on your silicon carbide power products and power modules for charging stations and onboard chargers?

也許您可以就您的碳化矽電源產品和充電站和車載充電器的電源模塊給我們一些更新的想法？

Yes.

是的。

So Raji, in terms of the supply and what we saw, our utilization was relatively flat quarter-on-quarter, but we got more supply out.

所以 Raji，就供應和我們所看到的情況而言，我們的利用率環比持平，但我們得到了更多的供應。

So this is really the optimization and the efficiency of our manufacturing site.

所以這確實是我們製造現場的優化和效率。

Now we manufacture about 65% of our own product in-house, 35% outside.

現在，我們自己生產的產品大約有 65% 在內部生產，35% 在外部生產。

We still remain severely constrained on the outside, but we've got more control on the inside with what we can do.

我們在外部仍然受到嚴格限制，但我們在內部可以做更多的控制。

So as our manufacturing team has executed, we've been able to just squeeze more out of the existing footprint.

因此，隨著我們的製造團隊的執行，我們已經能夠從現有的足跡中擠出更多的東西。

And then if you look forward to our Q3 guide, which is up at the midpoint, you can see we're getting more supply coming into Q3 as well.

然後，如果您期待我們的第三季度指南，該指南在中點上升，您會看到我們也將在第三季度獲得更多供應。

So again, this is just really the optimization of that -- of the existing footprint.

再說一次，這實際上只是對現有足蹟的優化。

Yes.

是的。

And as far as your second question about our power products, obviously, I mentioned renewable energy.

至於你關於我們的電力產品的第二個問題，很明顯，我提到了可再生能源。

I mentioned electric vehicles, which for me is both traction and onboard charging.

我提到了電動汽車，對我來說它既是牽引又是車載充電。

So as the power demand goes up as far as the need from customers, think about the fast charging, whether it's onboard charging or infrastructure, the charger on the road or the traction.

因此，隨著電力需求隨著客戶需求的增加而增加，請考慮快速充電，無論是車載充電還是基礎設施，道路上的充電器還是牽引力。

Where we are winning and why we are winning is our highly competitive efficiency metric that comes from the prowess and technology that we are flexing but more importantly, our packaging technology.

我們在哪裡獲勝以及我們為什麼獲勝是我們極具競爭力的效率指標，它來自我們正在展示的實力和技術，但更重要的是，我們的包裝技術。

When you put those 2 together, you get a lighter and more efficient traction module.

當你把這兩個放在一起時，你會得到一個更輕、更高效的牽引模塊。

Lighter is obviously good for EVs for distance, but lighter and smaller is also good for packaging.

更輕的顯然有利於電動汽車的距離，但更輕和更小也有利於包裝。

So we're able to get the same, call it, equivalent power output of our silicon and silicon carbide modules.

因此，我們能夠獲得相同的，稱為矽和碳化矽模塊的等效功率輸出。

And I talk about module being the device and the packaging better than the equivalent competitor power output.

我說模塊是比同等競爭對手的功率輸出更好的設備和封裝。

That's where we win.

這就是我們獲勝的地方。

You'll hear a little bit more about that at the Analyst Day, but that's what I tie our current wins to.

您會在分析師日聽到更多關於此的信息，但這就是我將我們目前的勝利與此聯繫起來的原因。

And when I look at the funnel and talk to the customer, since I've taken over, a lot of customers I call is why do we win?

而當我看漏斗和客戶交談時，自從我接手後，我打電話給很多客戶是為什麼我們贏了？

Why do you pick ON?

你為什麼選擇ON？

And those are the ones that I'm pushing into our strategy to do more of and where they say we lack, we're putting R&D in order to leapfrog the competition.

這些是我正在推進我們的戰略以做更多的事情，他們說我們缺乏的地方，我們正在投入研發以超越競爭。

So all of these give me the confidence, one, on our posture today, our posture with the design win forward-looking that's going to fuel our growth; and more importantly, where we are investing R&Ds to sustain that momentum forward-looking.

所以所有這些都讓我對我們今天的姿態充滿信心，我們的姿態以設計贏得前瞻性，這將推動我們的成長；更重要的是，我們正在投資研發以保持這種前瞻性的勢頭。

Your next question comes from John Pitzer from Crédit Suisse.

您的下一個問題來自 Crédit Suisse 的 John Pitzer。

Congratulations on the solid results.

祝賀你取得了堅實的成果。

Hassane, I'd like to go back to kind of the significant gross margin upside you've seen over the last couple of quarters.

哈桑，我想回到你在過去幾個季度看到的那種顯著的毛利率上升。

I'm just kind of curious, what inning do you think you're in as far as repositioning the portfolio to higher margin?

我只是有點好奇，就將投資組合重新定位到更高的利潤率而言，你認為你處於哪一局？

And I guess, was there any meaningful sort of advantage to kind of trying to price yourself out of certain businesses right now and customers didn't walk away, so that we saw some cyclical pricing advantage to either the June gross margins or the September gross margins?

而且我想，現在嘗試將自己從某些業務中定價出來並且客戶並沒有走開，是否有任何有意義的優勢，所以我們看到了 6 月毛利率或 9 月毛利率的周期性定價優勢利潤？

Yes.

是的。

So look, we're -- as far as inning, call it, we're in early innings as far as what we're able to do.

所以看，我們 - 就局而言，稱之為，就我們能夠做的而言，我們處於早期局。

You're starting to see the momentum of the work we've done in Q1 and Q2 starting to kind of come about.

您開始看到我們在第一季度和第二季度所做的工作的勢頭開始出現。

We haven't seen the benefit from some of the manufacturing rationalization, the actual fab divestitures that, at least the ones that we've talked about, you haven't seen that benefit yet.

我們還沒有看到一些製造合理化的好處，實際的工廠剝離，至少我們已經談到的那些，你還沒有看到這種好處。

So that's going to fuel our more of the gross margin expansion forward-looking.

因此，這將推動我們更具前瞻性的毛利率擴張。

Right now, it's on cost, product mix, product costs, product value, et cetera, all of those are what you're seeing today.

現在，它是關於成本、產品組合、產品成本、產品價值等等，所有這些都是你今天所看到的。

So there is more to come as you -- as we deploy and execute our strategy forward-looking.

因此，當我們部署和執行我們的前瞻性戰略時，還有更多的事情要做。

So that gives me the comfort of where we are as far as in our trajectory in the gross margin expansion.

因此，這讓我對我們在毛利率擴張的軌跡上所處的位置感到安慰。

That's helpful.

這很有幫助。

And then Hassane, the gross margins were impressive.

然後是哈桑，毛利率令人印象深刻。

I would argue that free cash flow was even more impressive.

我認為自由現金流更令人印象深刻。

And if you looked at your shared schedule on your website, there's not a lot of dilution coming down as the stock price goes up.

而且，如果您查看您網站上的共享時間表，隨著股價的上漲，並沒有太多稀釋。

So I'm kind of curious how you guys are thinking about sort of the use of cash and cash return, given how strong the free cash flow generation looks like it was in the quarter and should continue to be.

所以我有點好奇你們是如何考慮現金和現金回報的使用的，考慮到自由現金流的產生在本季度看起來有多強勁，而且應該繼續如此。

Yes, John, it's Thad.

是的，約翰，是泰德。

You're right.

你說得對。

Now that we took out that convert and swapped it out for a new convert, that old one was heavily in the money, so the dilution impact isn't as significant as what you're seeing in the past.

現在我們取出了那個轉換並將它換成了一個新的轉換，那個舊的轉換在金錢中很重要，所以稀釋影響不像你過去看到的那麼顯著。

And if you look at our guidance for next quarter, 436 million shares, it's just up a small tick, right?

如果你看一下我們對下一季度的指導，即 4.36 億股，這只是小幅上漲，對吧？

So as we think about the cash generation right now, it's balance sheet flexibility; it's continue to pay down the debt; long term, we'll look at returning capital to shareholders; but right now, it's reinvest in the business and have balance sheet flexibility.

因此，當我們現在考慮現金產生時，它是資產負債表的靈活性；它繼續償還債務；從長遠來看，我們將著眼於向股東返還資本；但現在，它正在對業務進行再投資，並具有資產負債表的靈活性。

Your next question comes from Harlan Sur from JPMorgan.

您的下一個問題來自摩根大通的 Harlan Sur。

Congratulations on the solid results and execution.

祝賀取得了紮實的成果和執行。

The image sensor business again undergrew both auto and industrial on a quarter-on-quarter and year-over-year basis, and I know most of this business is outsourced.

圖像傳感器業務在環比和同比的基礎上再次落後於汽車和工業，我知道大部分業務都是外包的。

You talked previously about being supply-constrained into the first half of next year.

您之前談到明年上半年供應受限。

Has that supply normalization actually pushed out given the strong demand you're seeing?

鑑於您看到的強勁需求，供應正常化是否真的被推遲了？

And then just given the strategic nature of sensing to your strategy and portfolio, is this a technology and product segment that the team is actually thinking about potentially bringing in-house?

然後考慮到感知到您的戰略和投資組合的戰略性質，這是團隊實際上正在考慮可能引入內部的技術和產品部分嗎？

Look, so that -- you're absolutely right.

看，所以 - 你是絕對正確的。

This is a very constrained because majority of all of it is foundry based.

這是非常受限制的，因為其中大部分都是基於代工廠的。

Now as far as over the long-term strategy about what we do outside or inside, we'll be talking more about that in our Analyst Day.

現在就我們在外部或內部所做的長期戰略而言，我們將在分析師日更多地討論這一點。

But it is fundamental to our strategy.

但這是我們戰略的基礎。

And therefore, the supply constraint is not something we can solve right now.

因此，供應限制不是我們現在可以解決的。

Right now, it's more on optimizing the existing supply chain that we have because imagine that technology is not you can pick up a fab, whether internal or external, and get some expansion.

現在，更多的是優化我們現有的供應鏈，因為想像技術不是你可以建立一個工廠，無論是內部還是外部，並獲得一些擴展。

There's a lot of R&D work that needs to go into qualifying and running that image sensing technologies in very specific fabs that require CapEx and R&D.

在需要資本支出和研發的非常特定的晶圓廠中，需要進行大量的研發工作來驗證和運行圖像傳感技術。

Obviously, we're looking at all options.

顯然，我們正在考慮所有選項。

But right now through, call it, '22, it's what more can we get out of the foundry partners.

但是現在通過，稱之為'22，這是我們可以從代工合作夥伴那裡得到的更多。

Got it.

知道了。

And then normally, the team's December quarter from a seasonal perspective is flat to down slightly sequentially, but just given the strong demand velocity, given the backlog visibility, combined with your supply additions coming on in the second half, would the team anticipate a better-than-seasonal growth trend for the December quarter?

然後通常情況下，從季節性的角度來看，團隊的 12 月季度從持平到環比略有下降，但考慮到強勁的需求速度、積壓的可見性以及下半年的供應增加，團隊是否會預期更好- 12 月季度的季節性增長趨勢？

Look, I don't think we can talk about seasonality, but I'll let Thad comment.

聽著，我認為我們不能談論季節性，但我會讓 Thad 發表評論。

But seasonality at this point is really we don't -- we have the demand.

但此時的季節性真的是我們沒有——我們有需求。

Right now, our top line and our forward-looking is based on the supply and the mix we were able to get out of our footprint.

目前，我們的收入和前瞻性是基於我們能夠擺脫我們足蹟的供應和組合。

Yes.

是的。

So Hassane is right.

所以哈桑是對的。

We're limited by supply, and so the demand is there.

我們受到供應的限制，所以需求就在那裡。

So as we look into the fourth quarter, we think we're going to be at the top end of our normal seasonality, which normal seasonality is kind of flat to down 2%.

因此，當我們展望第四季度時，我們認為我們將處於正常季節性的頂端，正常的季節性是持平到下降 2%。

Your next question comes from Vijay Rakesh from Mizuho.

您的下一個問題來自瑞穗的 Vijay Rakesh。

Hassane and Thad, congratulations on a great quarter and guide.

Hassane 和 Thad，恭喜你取得了一個很棒的季度和指導。

Just wondering on the EV and ADAS, it looks like very strong growth there.

只是想知道 EV 和 ADAS，那裡的增長看起來非常強勁。

If you could give us some color on how that grew sequentially?

如果你能給我們一些關於它是如何按順序增長的顏色？

And as you exit the year, if you can talk to what the mix you see, especially with your traction on the EV side?

當你退出這一年時，如果你能談談你看到的組合，特別是你在電動汽車方面的牽引力？

How that EV and ADAS mix grows year-on-year as a percent of revenues?

EV 和 ADAS 組合佔收入的百分比如何同比增長？

We are not breaking up by technology or by subsegment.

我們不會按技術或細分市場來分道揚鑣。

We're just looking at the automotive.

我們只關注汽車。

We expect automotive to maintain the growth.

我們預計汽車將保持增長。

Obviously, it is limited by what I mentioned earlier in the prior question on the ADAS side from the supply and the imaging, which we are highly constrained on.

顯然，它受限於我在之前的問題中提到的關於 ADAS 方面的供應和成像方面的限制，我們在這些方面受到很大限制。

As far as the rest of our power products or, call it, the silicon non-imaging product -- power products, that's going to be on -- based on how much we are able to get more out of our supply chain footprint, as Thad mentioned, through the efficiencies that our supply chain team has been working on.

至於我們的其他電源產品，或者稱為矽非成像產品——即將推出的電源產品——基於我們能夠從我們的供應鏈足跡中獲得更多收益的程度，如Thad 提到，通過我們的供應鏈團隊一直在努力提高效率。

So I still see the momentum there.

所以我仍然看到那裡的勢頭。

There is growth built in.

有內在的增長。

The demand is there.

需求就在那裡。

And right now, it's how much of that demand can we service.

而現在，我們可以滿足多少需求。

Got it.

知道了。

And as you look out, I know Thad mentioned going into Q4 more like the top ends were flattish.

正如你所看到的，我知道泰德提到進入第四季度更像是頂端平坦。

But wondering if you can give us some idea on how the book-to-bill is trending.

但是想知道您是否可以給我們一些關於帳單到帳單的趨勢的想法。

How it was in Q2?

Q2的情況如何？

How you see Q3, Q4?

您如何看待 Q3、Q4？

You can give us some idea there in terms of how orders are coming in.

你可以給我們一些關於訂單如何進來的想法。

Yes, Vijay, I mean, the book-to-bill is strong, right?

是的，維杰，我的意思是，帳單結算很強大，對吧？

It's remained strong.

它一直很強勁。

We think it's going to continue through the remainder of the year.

我們認為這將持續到今年餘下的時間。

Again, it's supply that's the issue.

同樣，問題在於供應。

We're not seeing major cancellations or pushouts.

我們沒有看到重大的取消或推出。

We're seeing just consistent strength right now.

我們現在看到的只是持續的實力。

So we're not seeing any major swings in the book-to-bill.

因此，我們沒有看到賬面賬單出現任何重大波動。

Your next question comes from William Stein from Truist.

您的下一個問題來自 Truist 的 William Stein。

I want to add my hearty congratulations to great results and even better outlook.

我要衷心祝賀取得了良好的成績和更好的前景。

First, the compute end market was particularly strong in the quarter.

首先，計算終端市場在本季度尤為強勁。

I think you attributed that or you at least highlighted graphics cards to part of the success there.

我認為您將此歸因於或者您至少突出顯示了顯卡的部分成功。

I'm wondering if you can talk about trends in that end market as we look out over the next couple of quarters.

我想知道您是否可以在我們展望未來幾個季度時談論該終端市場的趨勢。

There's been some concern about perhaps aggregate inventories or mismatched bills of materials that might cause a hiccup in that end market.

人們擔心總庫存或不匹配的材料清單可能會導致終端市場出現問題。

I wonder what you're seeing in terms of the outlook there.

我想知道您對那裡的前景有何看法。

And then I do have a follow-up.

然後我確實有後續行動。

Yes.

是的。

Look, we're seeing strength in both cloud and the server market.

看，我們在雲和服務器市場都看到了實力。

So that -- it's over market growth.

所以 - 它超過了市場增長。

If you look what customers are doing, there is more and more capacity for expansion in these markets, and that's what we're correlating on our demand.

如果您看看客戶在做什麼，就會發現這些市場的擴張能力越來越大，這就是我們與需求相關聯的原因。

So I think the market took a pause in 2020 and maybe at the beginning of '21, and now it's starting to pick up.

所以我認為市場在 2020 年，也許在 21 年初暫停，現在開始回升。

From an investment side, I don't see that kind of slowing down.

從投資方面來看，我沒有看到這種放緩。

We're going to keep monitoring it just like we are every other market.

我們將繼續監控它，就像我們對其他市場一樣。

And our focus in these is limited to what we want to do on the product side.

我們在這些方面的關注僅限於我們想要在產品方面做的事情。

Those are what I would call adjacent markets where we have very compelling and competitive products that we are able to service in these markets, and we're going to be pushing that through to our customers.

這些就是我所說的相鄰市場，我們擁有非常引人注目和有競爭力的產品，我們能夠在這些市場中提供服務，我們將把它推向我們的客戶。

But from the science and the data I get from our customers directly, there is capacity expansion on their side, and that gives me the visibility on the confidence in the demand that we have in our backlog for these markets.

但從我直接從客戶那裡獲得的科學和數據來看，他們的產能正在擴大，這讓我對我們對這些市場的積壓需求充滿信心。

Great.

偉大的。

And then as a follow-up, you talked about capacity expansion in the next few quarters.

然後作為後續行動，您談到了未來幾個季度的產能擴張。

I may have missed it, but is there an aggregate sort of unit growth or dollar growth that's getting built in as we think about demand and supply perhaps rationalizing or coming into somewhat of a stasis in the first half of next year as you've highlighted?

我可能錯過了，但是正如您所強調的那樣，當我們考慮需求和供應時，可能會在明年上半年合理化或進入某種停滯狀態時，是否存在一種總的單位增長或美元增長?

What should we think about your total capacity as we progress into that time frame?

隨著我們進入那個時間框架，我們應該如何看待您的總容量？

Well, I would say like we've got a couple of things going on.

好吧，我想說我們有幾件事正在發生。

We've got the 300-millimeter fab coming online in '23.

我們的 300 毫米晶圓廠將於 23 年上線。

We're continuing to push production in there.

我們將繼續在那裡推動生產。

We are supply constrained.

我們供應有限。

We'll continue to optimize, but I would look at just our supply as being -- at least through the time horizon you're talking about the first half of next year as being pretty steady with some small increase as we continue to optimize and get more output.

我們將繼續優化，但我認為我們的供應量是——至少在你所說的明年上半年的時間範圍內，隨著我們繼續優化和小幅增長，我們的供應量相當穩定。獲得更多輸出。

Your next question comes from Christopher Rolland from Susquehanna.

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

Congrats as well on all the progress you've made in just a few quarters, guys.

也祝賀你們在短短幾個季度內取得的所有進展，伙計們。

The first question is for Hassane.

第一個問題是針對哈桑的。

Hassane, LTSAs were a big deal for you guys at Cypress.

Hassane，LTSA 對賽普拉斯的你們來說意義重大。

Can you expand there?

你能在那裡擴展嗎？

Perhaps what end markets you're looking to do long-term supply agreements for?

也許您希望為哪些終端市場簽訂長期供應協議？

How they're being used strategically?

它們是如何被戰略性地使用的？

And ultimately, do you guys have a goal of kind of what percent of revenue you ultimately want under long-term agreements?

最終，你們是否有一個目標，即在長期協議下最終想要的收入百分比是多少？

Yes, Chris.

是的，克里斯。

So obviously, our focus is to start with, number one, our strategic markets; and two, strategic products and strategic customers in those markets.

很明顯，我們的重點是首先從我們的戰略市場開始；第二，這些市場的戰略產品和戰略客戶。

So that's kind of the priority that we are doing because -- and that's the start because think about it from a strategic perspective, I wouldn't want to lock in supply before I get all of my automotive customers taken care of, for example.

所以這是我們正在做的優先事項，因為 - 這是開始，因為從戰略角度考慮它，例如，在我得到所有汽車客戶的照顧之前，我不想鎖定供應。

And once that happens, then you start going automotive, industrial, and it's based on customers and the breadth of customer within -- for ON.

一旦發生這種情況，你就會開始涉足汽車、工業領域，它基於客戶和客戶的廣度——對於 ON。

Are they buying multiple products where cross-selling plays a big impact in our decision or is it a one product?

他們是在購買多種產品，交叉銷售對我們的決策產生重大影響，還是一種產品？

So that helps us strategically assess where we are.

因此，這有助於我們從戰略上評估我們所處的位置。

Obviously, our goal is to remain and support all of the customers that we have, and that's how we're going to maintain the growth.

顯然，我們的目標是留住並支持我們擁有的所有客戶，這就是我們要保持增長的方式。

But as far as LTSA, I'm starting with strategic market, strategic customers and breadth of customers because that's what's going to fuel, one, our growth, but more importantly, our stickiness.

但就 LTSA 而言，我從戰略市場、戰略客戶和客戶廣度開始，因為這將推動我們的增長，更重要的是，我們的粘性。

The broader we are, the more sticky we are because that's where the value comes in not from a product, but from a company perspective.

我們越廣泛，我們就越有粘性，因為這不是來自產品的價值，而是來自公司的角度。

So to answer your question about a percent, given that I really don't have a percent target, what I want is to drive the right strategic behavior because if I throw a percent out there, I guarantee you we will need it.

所以回答你關於百分比的問題，鑑於我真的沒有百分比目標，我想要的是推動正確的戰略行為，因為如果我把百分比扔在那裡，我保證你我們會需要它。

My view is, I'm looking at it strategically.

我的觀點是，我正在戰略性地看待它。

Whatever the percent ends up, it ends up.

無論百分比最終如何，它都會結束。

But I -- we do have, based on the product lines, so not at the group level, but at click below that, they have kind of targets where we may not want to go up to 80%, for example, because you want to keep 20% or 30% dynamic for the growth that we get from new customers that are not yet at the level we want to do in LTSA.

但是我——我們確實有，基於產品線，所以不是在集團層面，但在下麵點擊，他們有一些目標，我們可能不希望達到 80%，例如，因為你想要保持 20% 或 30% 的動態，以實現我們從尚未達到我們希望在 LTSA 中達到的水平的新客戶那裡獲得的增長。

So there's a lot of play in there, and we're taking it very, very surgical on an account, market and really segment basis.

所以那裡有很多遊戲，我們在賬戶、市場和真正細分的基礎上非常非常外科手術。

Excellent.

優秀。

And then a question around the fab footprint.

然後是關於晶圓廠佔地面積的問題。

First of all, any updates on your existing fabs for sale?

首先，您現有的待售晶圓廠有什麼更新嗎？

And then secondly, on East Fishkill, the prior management team talked about $2.3 billion in additional revenue.

其次，在 East Fishkill 上，之前的管理團隊談到了 23 億美元的額外收入。

Do you have an update there?

你那裡有更新嗎？

In this environment, do you think that could be substantially higher?

在這種環境下，您認為這可能會更高嗎？

Yes, in terms of the fab footprint, we continue to look at it.

是的，就晶圓廠的佔地面積而言，我們會繼續關注它。

We're in deep discussions with a couple -- well, quite a few parties actually on the 2 fabs that we publicly announced.

我們正在與一對夫婦進行深入討論——嗯，實際上在我們公開宣布的 2 家晶圓廠中有不少派對。

So those are tracking along.

所以那些正在跟踪。

As you know, it takes time to exit a fab, right, but getting the structure in place is more important than the timing of the exit.

如您所知，退出晶圓廠需要時間，對，但使結構到位比退出時間更重要。

So even though we haven't announced something, we're still along our path of timing, but it does take time, but things are progressing nicely there.

所以即使我們還沒有宣布什麼，我們仍然在我們的時間安排上，但這確實需要時間，但事情進展順利。

Look, on the East Fishkill fab, obviously, we are in a path to -- we're changing even the mix of what goes in that fab based on our new strategy and our new direction.

看，在東菲什基爾工廠，顯然，我們正處於一條道路上——我們正在根據我們的新戰略和新方向改變該工廠的組合。

I wouldn't put yet a number to it.

我不會給它一個數字。

Of course, we're getting it because it's going to drive incremental growth that is part of the strategy, but I'll be more comfortable disclosing that number and that target and how we progress against it once we have ownership of that fab.

當然，我們得到它是因為它將推動作為戰略一部分的增量增長，但我會更願意披露這個數字和目標，以及一旦我們擁有該晶圓廠的所有權，我們將如何實現這一目標。

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

我現在想把電話轉給總裁兼首席執行官 Hassane El-Khoury 先生。

Thank you all for joining us today.

感謝大家今天加入我們。

I once again thank our worldwide team for their hard work in driving our transformation and solid results.

我再次感謝我們的全球團隊為推動我們的轉型和堅實的成果所做的辛勤工作。

It's been an exciting few quarters, and we are firing on all cylinders.

這是令人興奮的幾個季度，我們正在全力以赴。

We remain focused on our execution and our drive to streamline our business and unlock our value.

我們仍然專注於我們的執行和我們精簡業務和釋放我們價值的動力。

I look forward to seeing you all at our Analyst Day in a few days for a deeper look into our strategy and our transformation.

我期待在幾天后的分析師日與大家見面，以更深入地了解我們的戰略和轉型。

This concludes today's conference call.

今天的電話會議到此結束。

Thank you all for joining.

謝謝大家的加入。

You may now disconnect.

您現在可以斷開連接。