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Operator
Operator
Ladies and gentlemen, thank you for standing by, and welcome to the ON Semiconductor Fourth Quarter 2020 Earnings Conference Call. (Operator Instructions) Please be advised that today's conference may be recorded. (Operator Instructions)
女士們,先生們,感謝您的支持,歡迎參加安森美半導體 2020 年第四季度收益電話會議。 (操作員說明)請注意,今天的會議可能會被錄製。 (操作員說明)
I would like to hand the conference over to one of your speakers today, Parag Agarwal, Vice President of Corporate Development and Investor Relations. Sir, please go ahead.
今天,我想將會議交給您的一位發言人,即企業發展和投資者關係副總裁 Parag Agarwal。先生,請繼續。
Parag Agarwal - VP of IR & Corporate Development
Parag Agarwal - VP of IR & Corporate Development
Thank you, Michelle. Good morning, and thank you for joining ON Semiconductor Corporation's Fourth Quarter 2020 Quarterly Results Conference Call. I'm joined today by Hassane El-Khoury and -- our President and CEO; and Bernard Gutmann, our CFO.
謝謝你,米歇爾。早上好,感謝您參加安森美半導體公司 2020 年第四季度季度業績電話會議。 Hassane El-Khoury 和我們的總裁兼首席執行官今天加入了我的行列;和我們的首席財務官 Bernard Gutmann。
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 2020 fourth quarter earnings release, will be available on our website approximately 1 hour following this conference call, and the recorded webcast will be available for approximately 30 days following this conference call. Additional information related to our end markets, business segments, geographies, channels, share count and 2021 fiscal calendar are also posted on our website.
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 2020 年第四季度收益發布將在本次電話會議後大約 1 小時在我們的網站上提供,錄製的網絡廣播將在本次電話會議後大約 30 天內提供。與我們的終端市場、業務部門、地域、渠道、股票數量和 2021 財年日曆相關的其他信息也發佈在我們的網站上。
Our earnings release and this presentation includes certain non-GAAP financial measures. Reconciliations of these non-GAAP financial measures with the most directly comparable measures under GAAP are also 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也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 will make projections or other forward-looking statements regarding our future events or future financial projection 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 which can affect our business, including factors that could cause actual results to differ from our forward-looking statements, are described in our Form 10-K, Form 10-Qs and other filings with the Securities and Exchange Commission. Additional factors are described in our earnings release for our fourth quarter of 2020. Our estimates or other forward-looking statements may change, and the company assumes no obligation to update forward-looking statements to reflect actual results, change assumptions or other events that may occur except as required by law.
在本次電話會議期間,我們將對我們未來的事件或公司的未來財務預測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 2020 年第四季度的收益發布中描述了其他因素。我們的估計或其他前瞻性陳述可能會發生變化,公司不承擔更新前瞻性陳述以反映實際結果、改變假設或其他可能發生的事件的義務除非法律要求,否則發生。
We have changed the date for our Analyst Day. Now we plan to host our Analyst Day on August 5 of this year instead of March 5. With the recent change in leadership of the company, we believe that we will need -- we will be able to provide a firm and complete view of our updated strategy and financial targets on August 5.
我們更改了分析師日的日期。現在我們計劃在今年 8 月 5 日而不是 3 月 5 日舉辦我們的分析師日。隨著最近公司領導層的變化,我們相信我們將需要 - 我們將能夠提供對我們的堅定和完整的看法8 月 5 日更新了戰略和財務目標。
Now let me turn it over to Hassane. Hassane?
現在讓我把它交給哈桑。哈桑?
Hassane El-Khoury - President, CEO & Director
Hassane El-Khoury - President, CEO & Director
Thank you, Parag, and thank you, everyone, for joining us today. I want to start by expressing how excited I am to be part of this historic company and its incredibly talented and motivated workforce. I will start by sharing with you the initial observations and updating you on the process we will use to evolve the future strategy and direction of the company. I will then address our fourth quarter 2020 results and turn the call over to Bernard to discuss financials and forward-looking guidance.
謝謝你,帕拉格,謝謝大家今天加入我們。首先,我想表達我對成為這家歷史悠久的公司及其才華橫溢、積極進取的員工隊伍的一員感到多麼興奮。我將首先與您分享初步觀察結果,並向您介紹我們將用於發展公司未來戰略和方向的流程。然後,我將討論我們 2020 年第四季度的業績,並將電話轉給伯納德,討論財務和前瞻性指導。
I took the role as CEO because I could clearly see the tremendous potential we have even as I looked at it from the outside. Having been in the role for a few months now, I can see a company with outstanding assets, including a highly talented and motivated workforce, intellectual property, sales channels, products, customer relationships, brand and industry-leading operational prowess, to name a few.
我擔任首席執行官一職是因為即使從外部看,我也能清楚地看到我們擁有的巨大潛力。擔任該職位幾個月後,我可以看到一家擁有出色資產的公司,包括高素質和積極進取的員工隊伍、知識產權、銷售渠道、產品、客戶關係、品牌和行業領先的運營能力,等等。很少。
We are focused on the right markets, which are the fastest-growing semiconductor end markets with solid margin potential. I'm excited about the opportunities we have in front of us to maximize the value for our shareholders, customers and employees.
我們專注於正確的市場,這些市場是增長最快的半導體終端市場,具有可觀的利潤潛力。我對擺在我們面前的機會為我們的股東、客戶和員工實現價值最大化感到興奮。
As I dove deeper into the company during the last 8 weeks, I have been positively surprised, and I have grown increasingly bullish about our prospects. The opportunities in front of us far exceed my initial expectations, and I'm working with my team to turn these opportunities into a strategy with a credible execution plan. I'm very confident that we will be able to deliver the full potential of the company to our stakeholders.
在過去的 8 周里,隨著我對公司的深入了解,我感到非常驚訝,而且我越來越看好我們的前景。我們面前的機會遠遠超出了我最初的預期,我正在與我的團隊合作,將這些機會轉化為具有可信執行計劃的戰略。我非常有信心,我們將能夠將公司的全部潛力提供給我們的利益相關者。
At this time, I don't have all the answers to what the future strategy and direction of the company will be. However, I will walk you through the process we will be following to get there and be able to share the details with you at our Analyst Day in August. It should come as no surprise that our primary value driver will come from our gross margin expansion initiative. At this time, we aim to maintain the over-market revenue growth in our strategic markets while being opportunistic in others. We will focus on maximizing free cash flow to delever our balance sheet and set us up to remain a consolidator.
目前,對於公司未來的戰略和方向,我還沒有全部答案。但是,我將引導您完成我們將遵循的流程,以便能夠在 8 月的分析師日與您分享詳細信息。我們的主要價值驅動力將來自我們的毛利率擴張計劃,這不足為奇。目前,我們的目標是在我們的戰略市場保持超額收入增長,同時在其他市場上投機取巧。我們將專注於最大化自由現金流以去槓桿化我們的資產負債表,並使我們保持整合者的地位。
To achieve our objective of maximizing shareholder value, we are ready to make substantial changes in our strategy, business and organization. We have begun the process of reevaluating our current product portfolio and our investments across the board. We will reallocate investments and resources to accelerate our growth in high-margin businesses away from nondifferentiated products and markets, which have had a historically low-margin profile. We will reduce complexity, streamline the organization and improve efficiencies.
為了實現股東價值最大化的目標,我們準備對我們的戰略、業務和組織進行重大改變。我們已經開始重新評估我們當前的產品組合和我們的全面投資。我們將重新分配投資和資源,以加速我們在高利潤率業務中的增長,遠離歷史上利潤率低的非差異化產品和市場。我們將降低複雜性、精簡組織並提高效率。
After realigning our investments with our products and market strategy, we will double down on R&D to accelerate growth and margin expansion. We will rationalize our manufacturing footprint to align with our investment priorities and new corporate strategy. Our primary goal is to reduce volatility in our margins and maximize return on our manufacturing investments. Our product strategy will drive our manufacturing footprint and capital investments. We intend to transition to a lighter fab model in which our margins are not as heavily influenced by our fab loadings.
在將我們的投資與我們的產品和市場戰略重新調整後,我們將加倍投入研發以加速增長和利潤率擴張。我們將合理化我們的製造足跡,以符合我們的投資重點和新的企業戰略。我們的主要目標是減少我們的利潤波動並最大限度地提高我們的製造投資回報。我們的產品戰略將推動我們的製造足跡和資本投資。我們打算過渡到更輕的晶圓廠模式,在這種模式下,我們的利潤率不會受到晶圓廠負載的嚴重影響。
As you can already tell, we have hit the ground running, and we are making progress in a short period of time. We will provide you with greater insight into our strategy and targets at our Analyst Day on August 5. In the meantime, we plan to continue to provide updates as we make progress.
正如您已經知道的那樣,我們已經開始運行,並且我們正在短時間內取得進展。我們將在 8 月 5 日的分析師日讓您更深入地了解我們的戰略和目標。與此同時,我們計劃在取得進展的同時繼續提供更新。
Now moving on to the fourth quarter 2020 results. Revenue for the fourth quarter of 2020 was $1.45 billion, an increase of 3% year-over-year. We saw a steep improvement in demand in the fourth quarter, and the momentum has continued thus far in the current quarter. The surge in demand is driven by a broad-based improvement in global macroeconomic conditions and lean channel and end-market inventories.
現在轉到 2020 年第四季度的結果。 2020年第四季度收入為14.5億美元,同比增長3%。我們看到第四季度的需求急劇改善,並且本季度迄今為止這種勢頭仍在繼續。需求激增是由全球宏觀經濟狀況的廣泛改善以及精益渠道和終端市場庫存推動的。
The automotive end market had the steepest recovery in the fourth quarter. Based on current demand trends and the global macro outlook, we expect to continue to see above-seasonal demand trends in the near term.
汽車終端市場在第四季度的複蘇最為迅速。基於當前的需求趨勢和全球宏觀前景,我們預計短期內將繼續看到高於季節性的需求趨勢。
On the supply side, we have been able to manage our customers' requirements for our products thus far. As semiconductor vendor increase supply and customers fulfill pent-up demand, the temporary supply-demand imbalance should subside in a few quarters.
在供應方面,到目前為止,我們已經能夠管理客戶對我們產品的要求。隨著半導體供應商增加供應和客戶滿足被壓抑的需求,暫時的供需失衡應該會在幾個季度內消退。
Let me discuss a few highlights of our key strategic end markets, starting with automotive. Revenue for the automotive market in Q4 2020 was a record $491 million and represented 34% of our revenue and an increase of 6% from Q4 of 2019. Our 2020 automotive revenue declined by 7.5% year-over-year but significantly outperformed the 2020 global automotive production unit, which declined by 16% over the same period. The significant outperformance was driven by increasing content for our products and fastest-growing applications in the automotive market.
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。 2020 年第四季度汽車市場的收入達到創紀錄的 4.91 億美元,占我們收入的 34%,比 2019 年第四季度增長 6%。我們 2020 年的汽車收入同比下降 7.5%,但明顯優於 2020 年全球汽車產量同比下降 16%。我們的產品內容增加和汽車市場增長最快的應用程序推動了顯著的優異表現。
Our design win funnel continues to expand. We won ADAS and viewing sockets on many of the recently announced platforms. We also secured a win for our LiDAR products with a European automotive OEM. We expect this win to ramp later this year.
我們的設計取勝漏斗繼續擴大。我們在許多最近發布的平台上贏得了 ADAS 和查看套接字。我們還與一家歐洲汽車 OEM 贏得了 LiDAR 產品的勝利。我們預計這一勝利將在今年晚些時候擴大。
Another significant design during the fourth quarter was with a major Tier 1 for our sensor module, which features a lens integrated in a sensor pocket -- package for in-vehicle experience application.
第四季度的另一個重要設計是我們的傳感器模塊的主要第 1 層,該模塊具有集成在傳感器口袋中的鏡頭 - 用於車載體驗應用程序包。
We continue to see strong momentum for our silicon carbide and IGBT product for electric vehicles and expect to see strong ramp in our EV-related revenue with various models going into production in 2020 and 2022.
我們繼續看到我們用於電動汽車的碳化矽和 IGBT 產品的強勁勢頭,並預計隨著各種車型在 2020 年和 2022 年投產,我們的電動汽車相關收入將強勁增長。
The industrial end market, which includes military, aerospace and medical, contributed revenue of $384 million (sic) [$348 million] in the fourth quarter of 2020 at 24% of our revenue. Year-over-year, our fourth quarter industrial revenue increased by 2%. This increase was driven by broad-based pickup in global industrial activity, partially offset by geopolitical issues related to a specific customer.
包括軍事、航空航天和醫療在內的工業終端市場在 2020 年第四季度貢獻了 3.84 億美元(原文如此)[3.48 億美元] 的收入,占我們收入的 24%。與去年同期相比,我們第四季度的工業收入增長了 2%。這一增長是由全球工業活動的廣泛回升推動的,部分被與特定客戶相關的地緣政治問題所抵消。
In the industrial end market, we continue to see strong momentum for our power modules and alternative energy applications. Our customer base for power semiconductor and alternative energy has expanded by approximately 50% in 2020. We expect to see strong growth in this business as the new U.S. administration is focused on the reduction in global carbon emissions. We are seeing strong traction for machine vision, factory automation applications with our exit -- XGS family of image sensors. In the communications end market, we expect strong growth in 2021 for 5G-related revenue driven by increased 5G capital expenditure by carriers.
在工業終端市場,我們繼續看到我們的功率模塊和替代能源應用的強勁勢頭。我們的功率半導體和替代能源客戶群在 2020 年擴大了約 50%。隨著美國新政府專注於減少全球碳排放,我們預計該業務將實現強勁增長。隨著我們的退出——XGS 系列圖像傳感器,我們看到了機器視覺、工廠自動化應用的強大牽引力。在通信終端市場,由於運營商增加 5G 資本支出,我們預計 2021 年 5G 相關收入將強勁增長。
Now I will turn the call over to Bernard to provide additional details on our financials and guidance. Bernard?
現在,我將把電話轉給伯納德,以提供有關我們財務和指導的更多詳細信息。伯納德?
Bernard Gutmann - CFO, Executive VP & Treasurer
Bernard Gutmann - CFO, Executive VP & Treasurer
Thank you, Hassane. During the fourth quarter of 2020, we saw continuing recovery in business conditions driven by robust growth in global economic activity. Order activity accelerated sharply across most end markets as customers are ramping production and replenishing inventories to meet a steep increase in end-market demand. Along with the strong broad-based recovery in macroeconomic conditions, secular megatrends in automotive, industrial and cloud power markets continue to drive our business.
謝謝你,哈桑。在 2020 年第四季度,我們看到在全球經濟活動強勁增長的推動下,商業狀況持續復甦。隨著客戶提高產量和補充庫存以滿足終端市場需求的急劇增長,大多數終端市場的訂單活動急劇加速。隨著宏觀經濟條件的強勁廣泛復甦,汽車、工業和雲能源市場的長期大趨勢繼續推動我們的業務發展。
Gross margin improvement is the primary strategic priority for the company. As Hassane indicated in his remarks, we are going through a detailed review of our product portfolio. The primary objective is to reallocate our capital to drive margin expansion and growth. Our revised product strategy will determine our capital expenditures and investments in other resources needed to support the business. We will update you with our progress as we go through the process.
提高毛利率是公司的首要戰略重點。正如 Hassane 在他的講話中所指出的,我們正在對我們的產品組合進行詳細審查。主要目標是重新分配我們的資本以推動利潤率擴張和增長。我們修訂後的產品戰略將決定我們對支持業務所需的其他資源的資本支出和投資。我們將在整個過程中向您更新我們的進展。
We are on track with our manufacturing consolidation plans, and discussions are ongoing with various parties regarding the previously announced intended sales of our fabs in Belgium and Niigata, Japan. We have closed our operations and sold the fab in Rochester, New York. And we should begin to realize annual savings of $15 million, starting in the first quarter of 2021.
我們正在推進我們的製造整合計劃,並且正在與各方討論先前宣布的我們在比利時和日本新潟的工廠的預期銷售。我們已經關閉了我們的業務並出售了位於紐約羅切斯特的工廠。從 2021 年第一季度開始,我們應該開始實現每年 1500 萬美元的節省。
Now let me provide you additional details on our results. Total revenue for the fourth quarter of 2020 was $1.45 billion, an increase of 3% as compared to revenue of $1.40 billion in the fourth quarter of 2019. The year-over-year increase in revenue was driven by growth in our key strategic end markets. GAAP net income for the fourth quarter was $0.21 per diluted share as compared to a net income of $0.14 per diluted share in the fourth quarter of 2019. Non-GAAP net income for the fourth quarter of 2020 was $0.35 per diluted share as compared to $0.30 per diluted share in the fourth quarter of 2019.
現在讓我為您提供有關我們結果的更多詳細信息。 2020 年第四季度的總收入為 14.5 億美元,比 2019 年第四季度的 14.0 億美元增長 3%。收入的同比增長受到我們關鍵戰略終端市場增長的推動.第四季度的 GAAP 淨收入為每股攤薄收益 0.21 美元,而 2019 年第四季度的淨收益為每股攤薄收益 0.14 美元。2020 年第四季度的非 GAAP 淨收益為每股攤薄收益 0.35 美元,而 0.30 美元2019 年第四季度每股攤薄收益。
GAAP and non-GAAP gross margin for the fourth quarter of 2020 were 34.4% as compared to 34.6% in the fourth quarter of 2019. The year-over-year decline in gross margin was driven primarily by a weakening U.S. dollar against currencies in most regions in which we operate our manufacturing facilities. Our GAAP operating margin for the fourth quarter of 2020 was 11.6% as compared to 9.9% in the fourth quarter of 2019.
2020 年第四季度的 GAAP 和非 GAAP 毛利率為 34.4%,而 2019 年第四季度為 34.6%。毛利率同比下降的主要原因是美元兌大多數貨幣貶值我們經營製造設施的地區。我們 2020 年第四季度的 GAAP 營業利潤率為 11.6%,而 2019 年第四季度為 9.9%。
Our GAAP -- our non-GAAP operating margin for the fourth quarter of 2020 was 14.2% as compared to 12.3% in the fourth quarter of 2019. The year-over-year increase in operating margin was driven largely by lower operating expenses.
我們的 GAAP——我們 2020 年第四季度的非 GAAP 營業利潤率為 14.2%,而 2019 年第四季度為 12.3%。營業利潤率的同比增長主要是由較低的運營費用推動的。
GAAP operating expenses for the fourth quarter of 2020 were $329.6 million as compared to $346.8 million in the fourth quarter of 2019. Non-GAAP operating expenses for the fourth quarter of 2020 were $292.4 million as compared to $313.6 million in the fourth quarter of 2019. The year-over-year decrease in non-GAAP operating expenses was driven primarily by restructuring and cost-saving measures undertaken by the company.
2020 年第四季度的 GAAP 運營費用為 3.296 億美元,而 2019 年第四季度為 3.468 億美元。2020 年第四季度的非 GAAP 運營費用為 2.924 億美元,而 2019 年第四季度為 3.136 億美元。非美國通用會計準則運營費用的同比下降主要是由於公司採取的重組和成本節約措施。
Fourth quarter 2020 free cash flow was $284 million, and operating cash flow was $400 million. Full year 2020 free cash flow increased to $501 million from $160 million in 2019 despite a 5% decline in revenue. Capital expenditures for the fourth quarter of 2020 were $116.4 million, which equates to a capital intensity of 8%. As indicated previously, we are directing most of our capital expenditures towards enabling our 300 millimeter capabilities of the East Fishkill fab.
2020 年第四季度自由現金流為 2.84 億美元,經營現金流為 4 億美元。儘管收入下降了 5%,但 2020 年全年自由現金流從 2019 年的 1.6 億美元增加到 5.01 億美元。 2020 年第四季度的資本支出為 1.164 億美元,相當於 8% 的資本密集度。如前所述,我們將大部分資本支出用於啟用東菲什基爾工廠的 300 毫米能力。
Total capital expenditures for 2020 was $384 million. We exited the fourth quarter of 2020 with cash and cash equivalents of $1.081 billion as compared to 1.64 -- $1.654 billion at the end of the third quarter of 2020. The decline in our cash balance was primarily related to the repayment of our 2020 convertible note principal at maturity in December 2020.
2020 年的總資本支出為 3.84 億美元。我們在 2020 年第四季度結束時的現金和現金等價物為 10.81 億美元,而 2020 年第三季度末為 1.64 - 16.54 億美元。我們現金餘額的下降主要與償還 2020 年可轉換票據有關本金於 2020 年 12 月到期。
At the end of the fourth quarter of 2020, days of inventory on hand were 120 days, down 13 days as compared to 133 days in the third quarter of 2020. At this time, we're comfortable with the level of our balance sheet inventory. In the fourth quarter of 2020, distribution inventory decreased marginally as sales through the distribution channels increased significantly quarter-over-quarter. Distribution inventories are within our target range of 11 to 30 weeks.
截至 2020 年第四季度末,庫存天數為 120 天,比 2020 年第三季度的 133 天減少了 13 天。目前,我們對資產負債表庫存水平感到滿意. 2020 年第四季度,由於通過分銷渠道的銷售額環比大幅增長,分銷庫存略有下降。分銷庫存在我們 11 至 30 週的目標範圍內。
Now let me provide you an update on the performance by our business units, starting with Power Solutions Group or PSG. Revenue for PSG for the fourth quarter was $716 million. Revenue for the Advanced Solutions Group or ASG for the fourth quarter was $522 million, and revenue for our Intelligent Sensing Group or ISG was $208 million.
現在讓我向您介紹我們業務部門的最新業績,從 Power Solutions Group 或 PSG 開始。 PSG 第四季度的收入為 7.16 億美元。第四季度高級解決方案集團或 ASG 的收入為 5.22 億美元,我們的智能傳感集團或 ISG 的收入為 2.08 億美元。
Moving on to guidance. Based on product booking trends, backlog levels and estimated turn levels, we anticipate that total ON Semiconductor revenue will be in the range of $1.41 billion to $1.51 billion in the first quarter of 2021. For the first quarter of 2021, we expect GAAP and non-GAAP gross margin between 34.1% and 36.1%. We expect total GAAP operating expenses for the first quarter of 2021 of $345 million to $363 million. Our GAAP operating expenses include the amortization of intangibles, restructuring, asset impairments and other charges, which are expected to be in the $32 million to $36 million range.
繼續指導。根據產品預訂趨勢、積壓水平和估計的周轉水平,我們預計 2021 年第一季度安森美半導體的總收入將在 14.1 億美元至 15.1 億美元之間。對於 2021 年第一季度,我們預計 GAAP 和非-GAAP 毛利率在 34.1% 和 36.1% 之間。我們預計 2021 年第一季度的 GAAP 總運營費用為 3.45 億美元至 3.63 億美元。我們的 GAAP 運營費用包括無形資產攤銷、重組、資產減值和其他費用,預計在 3200 萬美元至 3600 萬美元之間。
We expect total non-GAAP operating expenses of $313 million to $327 million in the first quarter. The expected increase in our first quarter operating expenses as compared to those in the fourth quarter is driven by the expected accrual for variable compensation in anticipation of a strong financial performance in 2021 and is in line with the $25 million to $30 million increase foreshadowing the last quarter's earnings call's prepared remarks. In our 2020 operating expenses, the variable component of compensation was not significant.
我們預計第一季度非美國通用會計準則運營費用總額為 3.13 億美元至 3.27 億美元。與第四季度相比,我們第一季度運營費用的預期增長是由於預期 2021 年強勁的財務業績而預期的可變薪酬應計,並且與上一季度 2500 萬至 3000 萬美元的增長相一致季度財報電話會議準備好的評論。在我們 2020 年的運營費用中,薪酬的可變部分並不重要。
For the first quarter of 2021, we anticipate GAAP net other income and expense, including interest expense, will be an expense of $34 million to $37 million, which includes the noncash interest expense of $4 million to $5 million. We anticipate our non-GAAP net other income and expenses, including interest expense, will be an expense of $30 million to $32 million. Net cash paid for income taxes in the first quarter of 2021 is expected to be in the $18 million to $24 million. For 2021, we expect cash paid for income taxes to be in the range of $80 million to $90 million.
對於 2021 年第一季度,我們預計 GAAP 其他淨收入和費用(包括利息費用)將在 3400 萬美元至 3700 萬美元之間,其中包括 400 萬美元至 500 萬美元的非現金利息費用。我們預計我們的非公認會計原則淨其他收入和支出,包括利息支出,將是 3000 萬美元至 3200 萬美元的支出。 2021 年第一季度為所得稅支付的淨現金預計在 1800 萬美元至 2400 萬美元之間。到 2021 年,我們預計為所得稅支付的現金將在 8000 萬美元至 9000 萬美元之間。
We expect total capital expenditures of $90 million to $100 million in the first quarter of 2021. We expect share-based compensation of $15 million to $17 million in the first quarter of 2021, of which approximately $3 million is expected to be in cost of goods sold, and the remaining amount is expected to be in operating expenses. This expense is included in our non-GAAP financial measures.
我們預計 2021 年第一季度的總資本支出為 9,000 萬美元至 1 億美元。我們預計 2021 年第一季度的股票薪酬為 1,500 萬美元至 1,700 萬美元,其中約 300 萬美元預計為商品成本已售出,剩餘金額預計將計入營業費用。這筆費用包含在我們的非公認會計原則財務措施中。
Our GAAP diluted share count for the first quarter of 2021 is expected to be 438 million to 439 million shares based on our current stock price. Our non-GAAP diluted share count for the first quarter of 2021 is expected to be 431 million shares based on our current stock price. Further details on share count and earnings per share calculations are provided regularly in our quarterly and annual reports on Form 10-Q and 10-K, respectively.
根據我們目前的股價,我們 2021 年第一季度的 GAAP 稀釋後股票數量預計為 4.38 億至 4.39 億股。根據我們目前的股價,我們在 2021 年第一季度的非公認會計原則稀釋後的股票數量預計為 4.31 億股。有關股票數量和每股收益計算的更多詳細信息,分別在我們的 10-Q 表格和 10-K 表格的季度報告和年度報告中定期提供。
I would like to end my comments on a personal note. As you're all aware, I have decided to retire after 39 years with ON Semiconductor and its predecessor company. It has truly been an honor to serve the company and its shareholders, employers and customers for all these years. I have enjoyed interacting with all of you over the years. You have kept me on my toes and always helped me strive to do better at my job. ON Semiconductor has a very bright future, and the company is well positioned to deliver significant value to its shareholders, customers and employees.
我想以個人筆記結束我的評論。眾所周知,在安森美半導體及其前身公司工作了 39 年後,我決定退休。這些年來為公司及其股東、雇主和客戶服務,真是一種榮幸。這些年來,我很享受與你們所有人的互動。你讓我保持警覺,總是幫助我努力在工作中做得更好。安森美半導體擁有非常光明的未來,公司處於有利地位,可以為其股東、客戶和員工創造巨大價值。
With that, I would like to start the Q&A session. Thank you, and Michelle, please open the line for questions.
有了這個,我想開始問答環節。謝謝你,米歇爾,請打開電話提問。
Operator
Operator
(Operator Instructions) Our first question comes from the line of Ross Seymore with Deutsche Bank.
(操作員說明)我們的第一個問題來自德意志銀行的 Ross Seymore。
Ross Clark Seymore - MD
Ross Clark Seymore - MD
First, Bernard, great working with you all the years. Congrats on the retirement. My first question is for Hassane. You mentioned a laundry list of actions you're going to take structurally for the company. I know you're not going to go into exceedingly detailed levels before the analyst meeting in August. But I wondered how you're balancing the gross margin side versus the OpEx and operating margin side. You mentioned about doubling down on R&D. How do you balance the gross margin versus the operating margin priority for the company?
首先,伯納德,多年來與您合作非常愉快。恭喜退休。我的第一個問題是關於哈桑的。您提到了您將為公司在結構上採取的一系列行動。我知道在 8 月的分析師會議之前,你不會進入非常詳細的水平。但我想知道您如何平衡毛利率方面與運營支出和營業利潤率方面。您提到了將研發投入翻倍。您如何平衡公司的毛利率與營業利潤率優先級?
Hassane El-Khoury - President, CEO & Director
Hassane El-Khoury - President, CEO & Director
Sure, Ross. Let me give you kind of how the approach has been because we started doing that work. At a high level, you can think about it as self-funding, meaning it's -- I don't like to dabble. Whether we say we're working on it or not, if we are creating products in low-margin businesses or markets that are not our strategic markets, those investments are going to stop. That's going to release capital for us to reinvest, and that's where they're doubling down.
當然,羅斯。讓我告訴你這種方法是怎樣的,因為我們開始做這項工作。在高層次上,你可以將其視為自籌資金,這意味著它——我不喜歡涉足。無論我們是否說我們正在努力,如果我們在低利潤業務或不是我們戰略市場的市場中創造產品,這些投資都會停止。這將為我們釋放資本進行再投資,這就是他們加倍下注的地方。
So in -- don't think about it as we're going to double down, and OpEx is going to click up beyond the level. We're going to actually reallocate OpEx. And with the simplicity and removing complexity on the way we run our operations here, that's going to relieve a lot of more capital for us to reinvest. So I'm not worried about having enough investments that we can reallocate while maintaining at or below our OpEx, which obviously will drive our operating margin favorably.
所以在 - 不要考慮它,因為我們將加倍努力,並且 OpEx 將點擊超出水平。我們實際上將重新分配 OpEx。隨著我們在這裡運營業務的簡單化和消除複雜性,這將為我們減少更多的資本進行再投資。因此,我不擔心有足夠的投資可以重新分配,同時保持在或低於我們的運營支出,這顯然會有利地推動我們的營業利潤率。
Ross Clark Seymore - MD
Ross Clark Seymore - MD
And I guess one for either you or Bernard. The guidance is better than seasonally. You said that's going to continue for a bit. Was the better-than-seasonal comment just about the first quarter or was it longer than that? And any color between the different segments to get to your guidance for the first quarter?
我猜你或伯納德都有一個。指導優於季節性。你說這會持續一段時間。是關於第一季度的好於季節性的評論還是比那更長?不同細分市場之間有什麼顏色可以為您提供第一季度的指導嗎?
Hassane El-Khoury - President, CEO & Director
Hassane El-Khoury - President, CEO & Director
Yes. This is Hassane again. Our focus right now is in the first quarter. Obviously, we're coming out of a very lean inventory, both our customers and in the supply chain. So that's the rebound you're seeing in Q1 better than seasonal. I remain cautiously optimistic for the rest of the year, but it's too soon to call the rest of the year at this point.
是的。這又是哈桑。我們現在的重點是第一季度。顯然,我們的客戶和供應鏈中的庫存都非常少。所以這就是你在第一季度看到的比季節性更好的反彈。我對今年餘下的時間保持謹慎樂觀,但現在說餘下的時間還為時過早。
In the prepared remarks, we talked about. It may take a few quarters to kind of stabilize the supply and demand situation. And that's when we'll get a little bit more clarity. Obviously, if you've seen the news, a lot of that strength is coming from automotive. And we see it the same way, which is a big market and a focus market for us. So we're watching it closely, but I remain cautiously optimistic until we get out of the trend of supply-demand imbalance.
在準備好的評論中,我們談到了。可能需要幾個季度才能穩定供需形勢。那時我們會更清楚一點。顯然,如果您已經看過新聞,那麼很多力量都來自汽車。我們也以同樣的方式看待它,這對我們來說是一個大市場,也是一個重點市場。所以我們正在密切關注它,但我仍然保持謹慎樂觀,直到我們擺脫供需失衡的趨勢。
Operator
Operator
And our next question comes from the line of Chris Danely with Citi.
我們的下一個問題來自花旗銀行的 Chris Danely。
Christopher Brett Danely - MD & Analyst
Christopher Brett Danely - MD & Analyst
First of all, Bernard, congratulations. (foreign language) I'm jealous. First question is just on OpEx. I guess what's the thought process of an upfront payment to everybody in front of the upturn versus afterwards? And is this -- should we consider this as a new baseline for OpEx? Or could it trend down after this?
首先,伯納德,祝賀你。 (外語)我吃醋了。第一個問題只是關於運營支出。我猜想在好轉之前和之後向每個人預付預付款的思考過程是什麼?這是 - 我們應該將其視為 OpEx 的新基準嗎?或者在此之後它會趨於下降嗎?
Bernard Gutmann - CFO, Executive VP & Treasurer
Bernard Gutmann - CFO, Executive VP & Treasurer
So it is not an upfront payment. It is an accrual, an accounting accrual as we have an annual plan, which actually would, cash-wise, pays in next year in February if we achieve the numbers. So this is just an accounting accrual recognizing the liability we are creating with delivering results that lead the new plan.
所以這不是預付款。這是一個應計項目,一個會計應計項目,因為我們有一個年度計劃,如果我們達到這些數字,它實際上將在明年 2 月以現金方式支付。因此,這只是一項會計應計,確認我們正在創造的負債,並交付導致新計劃的結果。
Hassane El-Khoury - President, CEO & Director
Hassane El-Khoury - President, CEO & Director
Yes. I mean let me just put that stake in the ground. We are 100% focused on pay for performance. We have to accrue throughout the year. But pay will occur in 2022 in the first quarter, just like it did this time for the prior year. So it's after the fact. We don't do any advanced planning as far as payment in any form to employees until after the performance period is done and validated.
是的。我的意思是讓我把那根木樁放在地上。我們 100% 專注於績效薪酬。我們必須全年累積。但薪酬將在 2022 年第一季度發生,就像上一年的這個時候一樣。所以這是事後的事。在績效期完成和驗證之前,我們不會以任何形式向員工支付任何高級計劃。
Bernard Gutmann - CFO, Executive VP & Treasurer
Bernard Gutmann - CFO, Executive VP & Treasurer
And then to your question about the trend on OpEx, we believe we have the step-function increase. And pretty much after that, it should be fairly steady.
然後對於你關於 OpEx 趨勢的問題,我們相信我們有階躍函數增加。在那之後,它應該相當穩定。
Christopher Brett Danely - MD & Analyst
Christopher Brett Danely - MD & Analyst
Okay. And for my follow-up, hey, Hassane, you mentioned you're going to take a look at the product lines. I guess what sort of rough percentage of revenue are we talking about that's being targeted as far as these low-margin product lines? And can you shed any light on what are these low-margin product lines? Is it some MOSFETs or IGBTs or some other sort of like passive types of products you guys have?
好的。對於我的後續行動,嘿,哈桑,你提到你要看看產品線。我猜我們所說的收入的粗略百分比是針對這些低利潤產品線的?你能解釋一下這些低利潤的產品線是什麼嗎?是一些 MOSFET 或 IGBT 還是你們擁有的其他類似無源類型的產品?
Hassane El-Khoury - President, CEO & Director
Hassane El-Khoury - President, CEO & Director
Sure. It's too soon to tell as far as to give you a percent because literally, I am looking at everything. But the way I look at it is strategic alignment to our end markets, strategic alignment to our margin target and really strategic alignment to the growth that we want to set for the company, both in gross margin expansion and revenue. So to put a percent on how much is that, it's hard to tell.
當然。現在說給你一個百分比還為時過早,因為從字面上看,我正在查看所有內容。但我看待它的方式是與我們的終端市場進行戰略調整,與我們的利潤目標進行戰略調整,以及與我們希望為公司設定的增長進行真正的戰略調整,包括毛利率擴張和收入。因此,要確定這個百分比是多少,很難說。
But it's not going to be, like you were expecting of IGBT or a FET of whatever kind. Because we're not looking at it as just a product family. I'll give you an example. We have IGBTs that goes into EV. I love that. That's a growth market. It's good margin, and we have a very good position in that market. That's going to be obviously a growth product and market for us. But IGBT in a low-margin consumer, that is not going to be an investment for us. So that's the surgical approach we are actually proceeding in order to get the right balance we talked about already.
但它不會像您期望的 IGBT 或任何類型的 FET 那樣。因為我們不只是將其視為一個產品系列。我給你舉個例子。我們有用於 EV 的 IGBT。我喜歡那個。那是一個增長的市場。這是很好的利潤,我們在那個市場上有很好的地位。這顯然是我們的增長產品和市場。但是對於低利潤消費者來說,IGBT 對我們來說不是一項投資。這就是我們實際上正在進行的手術方法,以便獲得我們已經討論過的正確平衡。
Operator
Operator
And our next question comes from the line of Toshiya Hari with Goldman Sachs.
我們的下一個問題來自高盛的 Toshiya Hari。
Toshiya Hari - MD
Toshiya Hari - MD
Hassane, you talked about you guys addressing demand so far, being pretty successful in addressing demand so far. But can you speak to where lead times are for your business today versus 3 months ago, 6 months ago? And sort of related to that, how is the pricing outlook for your business over the next 6 to 12 months in relation to what you guys have seen over the past few years?
哈桑,你談到你們到目前為止解決需求,到目前為止在解決需求方面非常成功。但是,您能談談今天與 3 個月前、6 個月前相比,您的業務的交貨時間在哪裡嗎?與此相關的是,與你們過去幾年看到的情況相比,未來 6 到 12 個月貴公司的定價前景如何?
Bernard Gutmann - CFO, Executive VP & Treasurer
Bernard Gutmann - CFO, Executive VP & Treasurer
So let me address the lead times. They have been inching up. They are still in the mid-teens but moving upwards in direction.
所以讓我談談交貨時間。他們一直在慢慢上升。他們仍處於十幾歲的中期,但朝著向上的方向發展。
Hassane El-Khoury - President, CEO & Director
Hassane El-Khoury - President, CEO & Director
Yes. For the pricing, I mean, we see a healthy pricing environment. Obviously, there are price increases that we have incurred from our supply chain, and we are working with customers to pass those on down the supply chain from where we are. There, of course, with supply and demand, we are always reviewing our pricing posture, and we're doing that as we speak.
是的。對於定價,我的意思是,我們看到了一個健康的定價環境。顯然,我們的供應鏈價格上漲,我們正在與客戶合作,將這些價格從我們所在的供應鏈向下傳遞。當然,在供需方面,我們一直在審查我們的定價態勢,我們正在這樣做。
It's not just only -- let me riff a little bit on, it's not just the supply and demand. We do have high-value products and the high-value products demand a higher margin. So I'm reviewing all our pricing discipline outside of just the supply and demand, and that's something you should see from us moving forward as a structural change we're implementing in the company. Where that's going to get us and where it's going to land as far as tangible result that I can credibly talk to you, that's going to be in the August meeting because that will give me enough runway to establish that process and see the impact.
這不僅僅是 - 讓我稍微重複一下,不僅僅是供需。我們確實有高價值的產品,而高價值的產品需要更高的利潤率。因此,我正在審查我們所有的定價規則,而不僅僅是供需,這是我們在公司中實施的結構性變革,你應該從我們那裡看到這一點。這將把我們帶到哪裡,以及它會在哪裡著陸,直到我可以可信地與你交談的切實結果,這將在 8 月的會議上進行,因為這將為我提供足夠的跑道來建立這個過程並看到影響。
Toshiya Hari - MD
Toshiya Hari - MD
Great. And then as a quick follow-up, just on sort of the long-term model. Again, I appreciate you're not going to preview your August Analyst Day. But when you look at some of the numbers that Keith and Bernard put up during their last -- during your last Investor Day, mid-single-digit revenue growth, 43% gross margin, 22 -- 21% OpEx intensity, given what you've seen so far, Hassane, where do your views differ the most? Is it more on the growth side? Is it more on the margin side? Is it both? Any color would be super helpful.
偉大的。然後作為一個快速跟進,只是在某種長期模型上。再次感謝您不打算預覽您的 8 月分析師日。但是,當您查看 Keith 和 Bernard 在上一個投資者日(在您的上一個投資者日)提供的一些數字時,收入增長中位數,毛利率為 43%,運營支出強度為 22% - 21%,考慮到您的情況到目前為止,哈桑,你的觀點最不同的地方在哪裡?更多的是增長方面嗎?是不是更偏邊緣?兩者都有嗎?任何顏色都會非常有幫助。
Hassane El-Khoury - President, CEO & Director
Hassane El-Khoury - President, CEO & Director
Look, it's not about the top line or gross margin. My focus is on the timing of it. That's kind of where I'm putting my energy right now. And then we will talk about what does that yield on top line and how quickly do we get to the -- I'm going to call it the 43% because that's the only number that is available externally.
看,這與收入或毛利率無關。我的重點是它的時機。這就是我現在投入精力的地方。然後我們將討論這在頂線上產生了什麼,以及我們以多快的速度達到 - 我將稱之為 43%,因為這是唯一可以從外部獲得的數字。
A lot of people ask me, what should we be looking for as far as financial model. And my answer, and I'll reiterate it here, just hold us accountable to whatever we -- the company has done already, even though it was not me personally, until I stand in front of all of you in August and change it. But for now, just hold us accountable to the target and the financial model that we have made available already as a company.
很多人問我,就財務模型而言,我們應該尋找什麼。我的回答,我會在這裡重申,只要讓我們對我們已經做過的任何事情負責——公司已經做過的事情,即使不是我個人,直到我在八月份站在你們所有人面前改變它。但就目前而言,只要讓我們對目標和我們作為公司已經提供的財務模型負責。
Operator
Operator
And our next question comes from the line of Raji Gill with Needham.
我們的下一個問題來自於李約瑟的 Raji Gill。
Rajvindra S. Gill - Senior Analyst
Rajvindra S. Gill - Senior Analyst
Yes. And best of luck, Bernard, and congrats, Hassane, on the new role. Hassane, a question on the 300 millimeter, the transition that's been undergoing for a couple of years. Any thoughts on how that progress is happening? And what are your thoughts on that transition to 300 millimeter? Are there steps that you want to try to accelerate that transition? And what would they be?
是的。祝你好運,伯納德,並祝賀哈桑擔任新角色。 Hassane,關於 300 毫米的問題,已經經歷了幾年的過渡。關於這一進展如何發生的任何想法?您對過渡到 300 毫米有何看法?是否有您想嘗試加速過渡的步驟?他們會是什麼?
Hassane El-Khoury - President, CEO & Director
Hassane El-Khoury - President, CEO & Director
Sure. Obviously, 300 millimeter transition is a transition that we need as a company. We have it internally, and the company has already set itself on a path to have an in-source fab for that. There's obviously -- we're looking at the baseline to see if we need more, how do we get it. It doesn't necessarily mean we're going to have a multitude of fabs at the 12 inch. It's going to be driven -- to answer your question more directly, it's going to be driven by the product portfolio that we're going to have and we want to be investing in over the next 5 years, and that's part of the portfolio rationalization. I can't really address a need for a manufacturing footprint until I know exactly what we want to do, where the margin is going to come from and what the manufacturing footprint needed in order to support it, inside or outside. So that's the work we're doing on right now.
當然。顯然,300 毫米過渡是我們作為公司需要的過渡。我們在內部擁有它,而且該公司已經走上了一條為此擁有源內工廠的道路。顯然——我們正在查看基線,看看我們是否需要更多,我們如何獲得它。這並不一定意味著我們將擁有大量 12 英寸的晶圓廠。它將被驅動——更直接地回答你的問題,它將由我們將擁有並且我們希望在未來 5 年內投資的產品組合驅動,這是投資組合合理化的一部分.在我確切地知道我們想要做什麼之前,我無法真正解決對製造足蹟的需求,利潤將來自哪里以及需要什麼製造足跡來支持它,內部或外部。這就是我們現在正在做的工作。
However, we do have the East Fishkill engagement. We have been making progress on it, where products are taping out. Some products are already sampling. So technology development and product move into that fab is ongoing, and I'm happy with where we are.
但是,我們確實有 East Fishkill 的參與。我們一直在這方面取得進展,產品正在流片。一些產品已經開始提供樣品。因此,技術開發和產品進入該工廠的工作正在進行中,我對我們所處的位置感到滿意。
To accelerate is going to be dependent on, as I mentioned, product and margin focus. And that's going to be with the capital associated with it. That's the work in progress we have to do. We have not completed yet, but I expect it to be complete by the time I give an updated financial model in the August meeting, which will include capital and manufacturing footprint targets.
正如我所提到的,加速將取決於對產品和利潤的關注。這將與與之相關的資本有關。這是我們必須做的正在進行中的工作。我們還沒有完成,但我希望在我在 8 月的會議上給出更新的財務模型時完成,其中將包括資本和製造足跡目標。
Rajvindra S. Gill - Senior Analyst
Rajvindra S. Gill - Senior Analyst
And for my follow-up, Hassane, you talked about product rationalization. And I think you had mentioned achieving that either through potentially M&A or divestment, and maybe if I -- maybe correct me if that's not the case. But wondering how you would think about product rationalization in -- with respect to those 2 possible strategies.
對於我的後續行動,Hassane,你談到了產品合理化。而且我認為您已經提到通過潛在的併購或撤資來實現這一目標,也許如果我 - 如果不是這種情況,請糾正我。但是想知道你會如何考慮產品合理化——關於這兩種可能的策略。
Hassane El-Khoury - President, CEO & Director
Hassane El-Khoury - President, CEO & Director
Sure. But it's not -- those are obviously part of the strategy, but that's not the one that's going to get you the most impact. The one that's going to get you the most impact is literally defocusing on products that we don't see bring us any -- whether it's top line growth or margin expansion.
當然。但這不是——這些顯然是戰略的一部分,但這並不是會給你帶來最大影響的。對您產生最大影響的一個實際上是分散注意力在我們認為沒有給我們帶來任何好處的產品上——無論是收入增長還是利潤率擴張。
And by defocusing, there are multiple ways. You put it in harvest, you EOL it. It's short-lived, if you talk about EOL, anywhere from 6 months to 18 months. Depending on engagement with the customer as far as when we're going to exit that business, we'll notify customers, we'll support them in a transition, a transition to our products, which are better-margin structured. So we will force a conversion, or we will just exit the business and exit that customer at the top line. And we're looking at everything equally.
通過散焦,有多種方法。你把它放在收穫中,你把它停產。如果您談論 EOL,它是短暫的,從 6 個月到 18 個月不等。根據與客戶的接觸,我們將在何時退出該業務時通知客戶,我們將支持他們過渡,過渡到我們的產品,這些產品的利潤結構更好。因此,我們將強制轉換,或者我們將退出業務並退出該客戶。我們平等地看待一切。
Where is that going to be as far as divesting? If there is a business that we believe has value for somebody outside of ON Semiconductor, we will monetize it instead of through an EOL, like I mentioned. We will monetize it through a divestiture.
就剝離而言,這將在哪裡?如果有一項我們認為對安森美半導體以外的人有價值的業務,我們將把它貨幣化,而不是像我提到的那樣通過 EOL。我們將通過資產剝離將其貨幣化。
Leading up to the third tenet, which is the M&A, M&A is just going to be a complementary view of what we are able to do with our portfolio rationalization. Once we have a portfolio footprint that we like in the market -- end markets that we want, then M&A would be an inorganic growth within these markets. We're not going to use M&A to solve our internal issues because then you're just creating chaos after chaos. We're going to rationalize our internal markets, our internal portfolio, that M&A will just strengthen that posture.
直到第三個原則,即併購,併購只是對我們能夠通過我們的投資組合合理化做些什麼的補充觀點。一旦我們在市場上擁有我們喜歡的投資組合足跡——我們想要的終端市場,那麼併購將成為這些市場中的無機增長。我們不會使用併購來解決我們的內部問題,因為那樣你只會在混亂之後製造混亂。我們將合理化我們的內部市場,我們的內部投資組合,併購只會加強這種態勢。
Operator
Operator
And our next question comes from the line of Matt Ramsay with Cowen.
我們的下一個問題來自 Matt Ramsay 和 Cowen 的對話。
Matthew D. Ramsay - MD & Senior Technology Analyst
Matthew D. Ramsay - MD & Senior Technology Analyst
Thanks and congrats, Bernard. Hassane, it's kind of an interesting call, right, because you guys are clearly going to put out longer-term targets in August, but folks are poking and prodding, you trying to get a little bit of hint about where that's going. But I might just ask a couple of questions along those lines.
謝謝和祝賀,伯納德。哈桑,這是一個有趣的電話,對,因為你們顯然將在 8 月提出長期目標,但人們正在戳戳和催促,你試圖得到一點關於它的去向的暗示。但我可能會在這些方面提出幾個問題。
One is, you talked a little bit in your script about potentially taking the company a little bit more towards being fab light. And obviously, the product portfolio will, I would imagine, mostly inform that decision. But no secret the U.S. government is thinking about incentivizing semiconductor manufacturing and R&D in the states. So I wonder, I guess, first question is how much is that going to inform your decision?
一個是,你在劇本中談到了可能讓公司更傾向於成為輕工廠。顯然,我想,產品組合將主要為該決定提供信息。但是,美國政府正在考慮激勵各州的半導體製造和研發,這已不是什麼秘密。所以我想知道,我想,第一個問題是這對你的決定有多大影響?
And then the second piece is around the channel. Texas is taking an interesting strategy of going more direct. You guys have a pretty broad distributor footprint. How are you thinking about that in terms of making your decisions going forward?
然後第二塊在通道周圍。得克薩斯州正在採取更直接的有趣策略。你們有相當廣泛的分銷商足跡。在做出決定方面,您如何看待這一點?
Hassane El-Khoury - President, CEO & Director
Hassane El-Khoury - President, CEO & Director
Sure. Let me tackle the fab light comment I made. So fab light, obviously, is an analog range that goes between fabless and only internal manufacturing. So where we are, a lighter fab, which means we're going to be shrinking our manufacturing footprint from where we are today. So that's the fab light comment, and that's going to be a result of what we need to manufacture internally versus what there are foundries that do a better job at the manufacturing that we do. And that's the balance we're going to be doing, and we started that effort. Obviously, there was a management change that did occur to start looking at that in parallel with me looking at the portfolio rationalization. So that's ongoing, and the results and the reporting I do real time.
當然。讓我來解決我所做的工廠燈評論。顯然,晶圓廠光是介於無晶圓廠和僅內部製造之間的模擬範圍。所以我們在哪裡,一個更輕的晶圓廠,這意味著我們將從今天的位置縮小我們的製造足跡。所以這是晶圓廠的評論,這將是我們需要在內部製造的結果,而不是在我們所做的製造方面做得更好的代工廠的結果。這就是我們要做的平衡,我們開始了這項努力。顯然,管理層確實發生了變化,開始關注這一點,而我則關注投資組合的合理化。所以這是持續的,結果和報告是我實時做的。
From the government side of it, listen, we're going to make the best decision for our company that drives shareholder value. That's the first and foremost decision-making. If at the end of that first tranche of decisions, there's alignment with where the administration is going or what state we are in, that's great. But we're not going to make a short-term decision based on the current politics that will hinder us from potentially achieving our maximum value creation that we could otherwise. So our focus is on value creation as we see it for the company, our shareholders, our customers and our employees. And then we'll figure out how we land in the politics at that time.
從政府的角度來看,聽著,我們將為推動股東價值的公司做出最佳決策。這是首要的決策。如果在第一批決定結束時,與政府的去向或我們所處的狀態保持一致,那就太好了。但我們不會根據當前的政治做出短期決定,這將阻礙我們實現我們原本可以實現的最大價值創造。因此,我們的重點是為公司、股東、客戶和員工創造價值。然後我們會弄清楚我們當時是如何涉足政治的。
From the distribution and other work we have been doing, it is the channel rationalization, just like the portfolio. Once you know where you want to grow and how aggressively you want to grow in which market, you're going to partner with the distributors that are strong indeed in that same arena you want to play in, and that's going to be an outcome of the portfolio. And that's why I keep going back to, the portfolio work we're doing is going to drive a lot of those dependencies because it's all interlocked, but it definitely starts with a portfolio rationalization to market and the strategy. Everything else is really how do you execute the strategy to the best you can.
從我們一直在做的分銷和其他工作來看,就是渠道合理化,就像組合一樣。一旦你知道你想在哪裡發展以及你想在哪個市場上以多大的積極性發展,你就會與在你想打的同一個領域確實很強大的經銷商合作,這將是一個結果投資組合。這就是為什麼我一直在回顧,我們正在做的投資組合工作將推動很多這些依賴關係,因為它們都是相互關聯的,但它肯定始於對市場和戰略的投資組合合理化。其他一切實際上是您如何盡您所能執行該策略。
Operator
Operator
And our next question comes from the line of Vijay Rakesh with Mizuho.
我們的下一個問題來自瑞穗的 Vijay Rakesh。
Vijay Raghavan Rakesh - MD of Americas Research & Senior Semiconductor Analyst
Vijay Raghavan Rakesh - MD of Americas Research & Senior Semiconductor Analyst
Hassane and Bernard, a good quarter and guide here. Bernard, congratulations on a great career. Just a couple of questions. Just wondering on the automotive side, you mentioned sensor module and some pickup on the electric vehicle side. Is your guide still for longer term, 9% to 11% above what the automotive market growth is? Or do you see upside based on some of the wins that you have here? And then I have a follow-up.
哈桑和伯納德,一個很好的季度和指導。伯納德,祝賀你取得了偉大的職業生涯。只是幾個問題。只是想知道在汽車方面,您提到了傳感器模塊和電動汽車方面的一些皮卡。你的指南是否仍然是長期的,比汽車市場增長高出 9% 到 11%?或者您是否看到了基於您在這裡獲得的一些勝利的好處?然後我有一個跟進。
Hassane El-Khoury - President, CEO & Director
Hassane El-Khoury - President, CEO & Director
Think of it it's high single.
想想它是高單。
Bernard Gutmann - CFO, Executive VP & Treasurer
Bernard Gutmann - CFO, Executive VP & Treasurer
Yes. We basically think it's high single digits above the SAAR levels. And we actually confirm that with our 2020 performance.
是的。我們基本上認為它高於 SAAR 水平的高個位數。實際上,我們通過 2020 年的表現證實了這一點。
Vijay Raghavan Rakesh - MD of Americas Research & Senior Semiconductor Analyst
Vijay Raghavan Rakesh - MD of Americas Research & Senior Semiconductor Analyst
Got it. And Hassane, you made a comment on lean inventory. Can you give us some level? Is that like 2 to 3 weeks of inventory versus normal, like 4 to 6 weeks? Or what are the inventory levels here?
知道了。還有Hassane,你對精益庫存發表了評論。你能給我們一些水平嗎?庫存是 2 到 3 週,而正常情況是 4 到 6 週?或者這裡的庫存水平是多少?
Hassane El-Khoury - President, CEO & Director
Hassane El-Khoury - President, CEO & Director
Yes. So Vijay, I can't give you a target right now. I'm looking at it because not all businesses, obviously, we have here are created equal. Some of them need more inventory than others, and there's going to be a lot of ins and outs, to be fair. As we figure out our, as I mentioned before, our EOL, some bridge build or some fab moves that we need to make, that's going to kind of put a -- bumps in the road for our inventory. And we're going to manage it as such, but there's going to be a few ins and outs before we get to a model.
是的。所以維杰,我現在不能給你一個目標。我正在研究它,因為顯然,並非所有企業都是平等的。他們中的一些人需要比其他人更多的庫存,而且會有很多來龍去脈,公平地說。正如我之前提到的,當我們弄清楚我們的 EOL、一些橋樑建設或我們需要進行的一些晶圓廠搬遷時,這將會給我們的庫存帶來一些障礙。我們會這樣管理它,但是在我們得到一個模型之前會有一些細節。
So I'll be ready to give you a model where we want to end up in the August meeting. But between now and then, I'm really going to be opportunistic about what we need to do in order to quickly shift to where I want us to be as a company, whether it's portfolio or manufacturing footprint.
因此,我將準備好為您提供一個我們希望在 8 月會議上結束的模型。但從現在到那時,我真的會對我們需要做的事情持機會主義態度,以便快速轉變到我希望我們作為一家公司成為的地方,無論是投資組合還是製造足跡。
Operator
Operator
And our next question comes from the line of Harsh Kumar with Piper Sandler.
我們的下一個問題來自 Harsh Kumar 和 Piper Sandler 的台詞。
Harsh V. Kumar - MD & Senior Research Analyst
Harsh V. Kumar - MD & Senior Research Analyst
Bernard, first of all, thank you for all the help over the years as we've worked together, and we really appreciate it and enjoy your retirement. And then for my question, so everybody is talking about tightness in the auto industry. Hassane, you guys have plenty of capacity here, at least available to you. Is there any opportunity for you to be able to take some incremental share? Or is that just not how things work in automotive, given the long design cycles?
伯納德,首先,感謝您多年來在我們一起工作時提供的所有幫助,我們非常感謝您並享受您的退休生活。然後對於我的問題,每個人都在談論汽車行業的緊張。哈桑,你們這裡有足夠的容量,至少對你們來說是可用的。您是否有機會獲得一些增量份額?或者,考慮到設計週期長,汽車的工作方式不就是這樣嗎?
Hassane El-Khoury - President, CEO & Director
Hassane El-Khoury - President, CEO & Director
Sure, Harsh. So obviously, for areas where we are double sourced, we're one of 2 suppliers, we have some of these in our product lines, if we're able to support it, we will. Of course, we're going to ship. We've already engaged with customers where we know we don't have 100% share in order for us to help if they need it. So that's ongoing, and that's the way we're running the business day-to-day.
當然,苛刻。所以很明顯,對於我們雙重採購的領域,我們是兩個供應商之一,我們的產品線中有一些供應商,如果我們能夠支持它,我們會的。當然,我們要發貨。我們已經與我們知道我們沒有 100% 份額的客戶進行了接觸,以便我們在他們需要時提供幫助。所以這一直在進行,這就是我們日常運營業務的方式。
The challenge that we are looking at is, okay, even if we do ship that product, is that customer getting the rest of the product from supplier number 2, 3 and 4. That's what I don't know. So to be able to evaluate how much share is actually going to go into revenue, that's going to be, call it, towards the end of the quarter when the dust settles.
我們正在考慮的挑戰是,好吧,即使我們確實運送了該產品,客戶從 2 號、3 號和 4 號供應商那裡獲得其餘產品。這是我不知道的。因此,為了能夠評估實際將進入收入的份額,這將是,稱之為,在塵埃落定的季度末。
We're ready to help, but the problem is our product line is not the bottleneck as far as creating the end products, if that makes sense? We're watching it. We're going to go after it because like you said, if we have the capacity, we're going to sell it. And we're going to give it to the end customer, not sit on distributor shelf or even on our shelves. It's going to go as quickly as we can see the demand for it.
我們準備提供幫助,但問題是我們的產品線並不是創造最終產品的瓶頸,如果這有意義嗎?我們正在關注它。我們會去追求它,因為就像你說的,如果我們有能力,我們會賣掉它。我們將把它提供給最終客戶,而不是坐在分銷商的貨架上,甚至是我們的貨架上。只要我們看到對它的需求,它就會以最快的速度發展。
Harsh V. Kumar - MD & Senior Research Analyst
Harsh V. Kumar - MD & Senior Research Analyst
Got it. And for my follow-up, Hassane, can you talk about the activity that ON Semi is seeing in the EV space in China, specific to charging and chargers? This has been an area, I think that ON's been very active in that particular geography. Could you just talk about what you think is your position there?
知道了。對於我的後續行動,Hassane,你能談談安森美在中國電動汽車領域看到的活動,特別是充電和充電器嗎?這是一個領域,我認為 ON 在那個特定的地區非常活躍。你能談談你認為你在那裡的位置嗎?
Hassane El-Khoury - President, CEO & Director
Hassane El-Khoury - President, CEO & Director
Yes. We're still very active in that area. Obviously, when you have the products that customers value as far as the technical prowess and the portfolio that we're able to manage, we're definitely always considered. And more often than not, we are the ones being selected. That has not changed. And our posture in China EV specifically is strong, and we've had design wins actually in the second half of 2020 that support that view in the market.
是的。我們在那個領域仍然非常活躍。顯然,當您擁有客戶重視的技術實力和我們能夠管理的產品組合時,我們絕對會被考慮在內。而且通常情況下,我們是被選中的人。這並沒有改變。而且我們在中國電動汽車領域的姿態特別強大,我們實際上在 2020 年下半年贏得了支持市場這一觀點的設計勝利。
Operator
Operator
And our next question comes from the line of Chris Caso with Raymond James.
我們的下一個問題來自 Chris Caso 和 Raymond James。
Christopher Caso - Research Analyst
Christopher Caso - Research Analyst
And my congratulations to Bernard as well. It's been a pleasure working with you. Hassane, I just want to ask a follow-up question regarding some of the comments about refocusing the product line and potentially consolidating the manufacturing footprint. I recognize that we're asking you some unfair questions because the plan isn't always together -- isn't all together yet.
我也祝賀伯納德。和你一起工作很愉快。哈桑,我只想問一個關於重新調整產品線和可能鞏固製造足蹟的評論的後續問題。我知道我們在問你一些不公平的問題,因為計劃並不總是在一起——還沒有全部在一起。
But when I look at the gross margins for ON now versus the prior peak at similar revenue levels, the delta is about 300 basis points, and most of that's depreciation. So I guess the question is, as you've done the initial review of manufacturing, is there enough flex in the system potentially selling fabs or such, such that you would be able to make a meaningful dent in that depreciation if your business review would warrant that smaller footprint? Is there ability to consolidate if that's the -- if that's the decision that you want to make?
但是,當我查看 ON 現在的毛利率與類似收入水平的先前峰值時,增量約為 300 個基點,其中大部分是折舊。所以我想問題是,當您對製造進行了初步審查時,系統中是否有足夠的彈性可能會出售晶圓廠等,這樣如果您的業務審查會保證更小的足跡?如果這是您想要做出的決定,是否有能力進行整合?
Hassane El-Khoury - President, CEO & Director
Hassane El-Khoury - President, CEO & Director
The answer is yes. There's always opportunity, and we're looking at everything. And it's not just depreciation. And once you -- when you start consolidating, there's obviously the utilization for the fab -- the receiving fabs. And really, there's overhead simplification.
答案是肯定的。總是有機會,我們正在尋找一切。這不僅僅是折舊。一旦你 - 當你開始整合時,顯然有晶圓廠的利用率 - 接收晶圓廠。確實,有開銷簡化。
When I say about rationalizing portfolio and manufacturing footprint, all of this is going to drive costs out of the company. It's not going to be sucked in anywhere else, and it's not going to be reallocated. It's going to be managed out of the company. Of course, some timing is different depending on what category of spend, COGS versus OpEx, and we're in OpEx and we're in COGS. But we are tracking every dollar that is the outcome of every decision we make in order to decide where it's going to end up.
當我談到合理化投資組合和製造足跡時,所有這些都將降低公司的成本。它不會被其他任何地方吸收,也不會被重新分配。它將在公司之外進行管理。當然,根據支出類別,COGS 與 OpEx 的不同,某些時間會有所不同,我們在 OpEx 中,我們在 COGS 中。但是我們正在跟踪我們做出的每一個決定的結果的每一美元,以決定它最終的去向。
But to answer your question more generally, I am optimistic about the levers that we have to drive gross margin expansion since I've been here in the company. So that has not been a worry of mine of, great, now what do I do. There's enough to do. And my focus is putting it in an executable strategy that I will ask, starting with our Board of Directors, but more importantly, our shareholders and you all outside to hold us accountable to. And that's the work we're doing right now, is how do we translate that into an executable plan.
但為了更籠統地回答你的問題,我對我們必須推動毛利率擴張的槓桿持樂觀態度,因為我一直在公司工作。所以這不是我擔心的,太好了,現在我該怎麼辦。有足夠的事情要做。我的重點是把它放在一個可執行的戰略中,我會要求,從我們的董事會開始,但更重要的是,我們的股東和外面的你們都讓我們負責。這就是我們現在正在做的工作,就是我們如何將其轉化為可執行的計劃。
Christopher Caso - Research Analyst
Christopher Caso - Research Analyst
That's great. As a follow-up, if I could ask a near-term question regarding production. And if you could talk about where the utilization is now as compared to where it was last year? And how does that track as you go into next year as you try to address some of the bottlenecks?
那太棒了。作為後續行動,如果我可以問一個有關生產的近期問題。如果你能談談現在的利用率與去年相比在哪裡?在您嘗試解決一些瓶頸時,當您進入明年時,該跟踪如何?
And then finally, maybe you could talk about where the bottlenecks are. Are they more in the front end or the back end or perhaps at some of the outside suppliers?
最後,也許你可以談談瓶頸在哪裡。他們更多是在前端還是後端,或者可能在一些外部供應商?
Bernard Gutmann - CFO, Executive VP & Treasurer
Bernard Gutmann - CFO, Executive VP & Treasurer
So definitely, utilization last year in the first quarter was quite low. And we were also affected at that time by the -- especially towards the end of it by the pandemic and the shelter-in-place closings that we have in several of our factories in China, and towards the end, in the Philippines and Malaysia.
可以肯定的是,去年第一季度的利用率非常低。我們當時也受到了影響——尤其是在大流行結束時,我們在中國的幾家工廠以及接近尾聲的菲律賓和馬來西亞工廠關閉了就地庇護所.
We did see a little bit of an increase in the utilization in the fourth quarter to the low 70s, about 70%, 75%. And we expect that as we ramp in 2021 in the first quarter in anticipation of a seasonal growth in the second quarter primarily on the fab side, we should see it helping a little bit of -- improve utilization in our foundries.
我們確實看到第四季度的利用率略有增加,達到 70 年代的低點,大約 70%、75%。我們預計,隨著我們在 2021 年第一季度的增長,預計第二季度主要是晶圓廠方面的季節性增長,我們應該會看到它有助於提高代工廠的利用率。
Hassane El-Khoury - President, CEO & Director
Hassane El-Khoury - President, CEO & Director
Yes. Most of the -- it's Hassane again. Most of our constraints are primarily on the outside, not internally. And the front end and the back end for us is, I would call it a balanced loading. There's gives and takes, depending on the product line. But managing the supply constraint externally is really with the foundry at this point.
是的。大多數——又是哈桑。我們的大多數約束主要是外部的,而不是內部的。對我們來說,前端和後端是,我稱之為平衡加載。取決於產品線,有給予和索取。但在這一點上,從外部管理供應限制實際上是由代工廠負責。
Operator
Operator
And our next question comes from the line of Vivek Arya with Bank of America.
我們的下一個問題來自美國銀行的 Vivek Arya。
Vivek Arya - Director
Vivek Arya - Director
Congratulations and best wishes to both Hassane and Bernard. Hassane, for my first question, I'm curious as to your insights on the current demand environment. I think you mentioned auto units were down kind of in the mid-teens, but your sales are only down 7.5% last year and, in fact, are at a record in Q4. And this delta between auto units and auto semiconductor sales is perhaps one of the widest that we have seen.
向哈桑和伯納德表示祝賀和最良好的祝愿。 Hassane,對於我的第一個問題,我很好奇您對當前需求環境的見解。我認為你提到汽車銷量在十幾歲時有所下降,但去年你的銷售額僅下降了 7.5%,事實上,在第四季度創下了歷史新高。汽車單位和汽車半導體銷售之間的這種差異可能是我們所見過的最廣泛的差異之一。
So my question is, how much are you shipping to real end demand versus customers stocking up when they just read about the shortages and the auto production shutdowns? How do we get the confidence that these above-seasonal quarters that you're seeing in Q4 and Q1 will not be followed by some process of normalization later in the year? What is your level of insight into actual consumption of what you're shipping into the automotive supply chain?
所以我的問題是,當客戶剛剛了解到短缺和汽車停產的消息時,你會為真正的最終需求運送多少貨品而不是囤貨?我們如何確信您在第四季度和第一季度看到的這些高於季節性的季度不會在今年晚些時候出現一些正常化過程?您對運送到汽車供應鏈中的產品的實際消費情況的洞察程度如何?
Hassane El-Khoury - President, CEO & Director
Hassane El-Khoury - President, CEO & Director
Sure. So I'm going to answer direct as it relates to getting to our customer, which are the Tier 1. And I will skip any conversation about, does it go through disti or not disti. Because for disti, we ship it to disti if it ships out right away to an end customer. So that's kind of how we're dealing with the disti, so we don't have a stranded inventory that could go to demand.
當然。因此,我將直接回答與我們的客戶(即第 1 層)相關的問題。我將跳過任何關於它是否通過 disti 或不通過 disti 的對話。因為對於 disti,如果它立即運送給最終客戶,我們會將其運送到 disti。這就是我們處理 disti 的方式,所以我們沒有可以滿足需求的滯留庫存。
So then to answer your question directly, how do we deal with the Tier 1, it's literally direct engagement. We know what the production rates are, and we know what we're shipping in. And we know which OEMs -- we all know this way -- in this side as far as what OEM are not manufacturing which products. So we know where our product ends with which OEM for which model year to a, call it, 98th percentile. And that's how we manage it.
那麼直接回答您的問題,我們如何處理第 1 層,這實際上是直接參與。我們知道生產率是多少,我們知道我們在運送什麼。而且我們知道哪些 OEM - 我們都知道這一點 - 就哪些 OEM 不生產哪些產品而言。因此,我們知道我們的產品在哪個 OEM 的哪個型號年份結束,稱之為 98th percentile。這就是我們管理它的方式。
If we know, for example, there's a shortage in an area or a shutdown of an OEM plant, and we do have products that are targeted for that, we are going to redirect our products to somebody else. Sometimes, that engagement is with OEM. They say we're shutting down this factory, but we want our capacity to go to this other factory. We know it's going to a, call it, a vehicle versus a -- just a Tier 1 making a box that may not end up in a vehicle. Now obviously, you're not going to get it 100% right, but if we get 80% to 90% of it, I'll be very happy.
例如,如果我們知道某個地區出現短缺或 OEM 工廠關閉,並且我們確實有針對此的產品,我們會將我們的產品重定向到其他人。有時,這種參與是與 OEM 的。他們說我們要關閉這家工廠,但我們希望我們的產能可以去這家另一家工廠。我們知道這將是一輛汽車,而不是一輛汽車——只是一個製造一個可能不會最終安裝在汽車中的盒子的 1 級汽車。現在很明顯,你不可能做到 100% 正確,但如果我們能做到 80% 到 90%,我會非常高興。
And we monitor our inventory. It's a -- there is a lot of demand. And like you said, we're rationalizing all of that demand to make -- or the supply to match the demand. And I use the term cautiously optimistic because it will take a couple of quarters, which is, call it, a full manufacturing cycle time from start to finished goods to kind of get that through the system and see what the real demand is in that time frame. But we're -- it's gorilla warfare that we're doing every day, but I'm happy with what the team's insights are for us to make decisions.
我們監控我們的庫存。這是一個 - 有很多需求。就像你說的,我們正在合理化所有的需求——或者供應來匹配需求。我謹慎樂觀地使用這個詞,因為這將需要幾個季度,也就是說,從開始到成品的完整製造週期時間才能通過系統得到它,看看那個時候的真正需求是什麼框架。但我們是——我們每天都在做大猩猩戰爭,但我很高興團隊的洞察力讓我們做出決定。
Vivek Arya - Director
Vivek Arya - Director
Got it. And Hassane, as my follow-up, the gross margins for Q1 guided up about 70 basis points at the midpoint even though sales are kind of flattish. And I heard some mention of the benefits of some prior fab closure decisions. So I was hoping if you could -- or Bernard could walk us through the gross margin improvement, kind of level set us on Q1. Are we now looking at all the benefits of pricing and fab closures and everything until you make new decisions? Like is this Q1 gross margin the new baseline? Or are you still seeing the headwinds from utilization and other perspective? Or maybe a different way to ask the same question, what is the incremental gross margin we should be modeling from Q2 onwards?
知道了。哈桑,作為我的後續行動,第一季度的毛利率在中點上升了約 70 個基點,儘管銷售額有點平淡。我聽到一些人提到了一些先前關閉工廠的決定的好處。所以我希望如果你能 - 或者伯納德可以引導我們完成毛利率的提高,那種水平讓我們處於第一季度。我們現在是否正在考慮定價和關閉工廠的所有好處以及一切,直到您做出新的決定?就像這個第一季度的毛利率是新的基線嗎?還是您仍然從利用率和其他角度看到不利因素?或者用不同的方式來問同樣的問題,我們應該從第二季度開始建模的增量毛利率是多少?
Bernard Gutmann - CFO, Executive VP & Treasurer
Bernard Gutmann - CFO, Executive VP & Treasurer
So definitely, the Q1 number includes the benefit of the closure of Rochester. That's fully executed, and we are seeing those going to our numbers, and that is having an effect on ON. And we said before, it's $50 million a year. So that's having an effect on our gross margin.
因此,毫無疑問,第一季度的數字包括關閉羅切斯特的好處。這已完全執行,我們看到那些進入我們的數字,這對 ON 產生了影響。我們之前說過,每年 5000 萬美元。所以這對我們的毛利率有影響。
Hassane El-Khoury - President, CEO & Director
Hassane El-Khoury - President, CEO & Director
As far as moving forward and what you should expect, I will start with our Q1 guide. And that's part of the regular updates I'll be giving you until I give you a trajectory for our gross margin. And Vivek, you know what trajectory and how committed I am once I deploy a step function by the quarters based on my prior life. That's the one we're building right now.
至於前進和你應該期待什麼,我將從我們的 Q1 指南開始。這是我將向您提供的定期更新的一部分,直到我為您提供我們的毛利率軌跡。還有 Vivek,一旦我根據我以前的生活按季度部署階梯函數,你就會知道我的軌跡和投入程度。這就是我們現在正在建造的。
Now how much of this is in Q1 for the Rochester closure or the pricing judgment that I've talked about or other levers we're doing? It's actually -- there's a lot of line items that we have been pulling on. I'm not waiting, obviously, till August or till Q2 to start the work. We've made tremendous progress. You're going to see a few weeks in Q1 on some items or a full month or 2 months in Q1 on others, depending on when we pull the trigger.
現在,第一季度羅切斯特的關閉或我談到的定價判斷或我們正在做的其他槓桿有多少?實際上 - 我們一直在推出很多訂單項。顯然,我不會等到八月或第二季度開始工作。我們已經取得了巨大的進步。根據我們何時扣動扳機,您將在第一季度看到某些項目的幾週或第一季度的整整一個月或 2 個月。
My focus, though, is what I call structural gross margin improvement. And what I mean by structural is gross margin improvement that we drive and it doesn't happen to us. I'll take the stuff, the favorable things that happened to us, but there has to be a structural baseline that is a "up into the right" gross margin baseline that you can hold us accountable to. And that's the plan we're going to be deploying.
不過,我的重點是我所說的結構性毛利率改善。我所說的結構性是指我們推動的毛利率提高,而這不會發生在我們身上。我會接受這些事情,發生在我們身上的有利事情,但必須有一個結構基線,它是一個“正確的”毛利率基線,你可以讓我們對它負責。這就是我們要部署的計劃。
Operator
Operator
And our next question comes from the line of Christopher Rolland with Susquehanna International Group.
我們的下一個問題來自 Susquehanna International Group 的 Christopher Rolland。
Christopher Adam Jackson Rolland - Senior Analyst
Christopher Adam Jackson Rolland - Senior Analyst
Bernard, I echo my congrats. Thank you for all the time we spent together. It was great. There's no business like no business. Enjoy your retirement.
伯納德,我表示祝賀。感謝我們一起度過的所有時光。太好了。沒有生意就像沒有生意一樣。享受你的退休生活。
All the good questions have been asked for the most part. Two quick ones. I guess, first of all, disti revenue has traditionally been maybe in the 50s, and we've had 2 strong quarters now in 63%, 64%. Maybe talk about what you're seeing on the disti side? Are there shortages direct and people are going disti at some of your competitors, for example? What's driving that disti number so much higher than typical?
大多數好的問題都被問到了。兩個快的。我想,首先,傳統上 disti 的收入可能在 50 年代,我們現在有兩個強勁的季度,分別為 63%、64%。也許談談您在 disti 方面看到的內容?例如,是否存在直接短缺並且人們正在向您的一些競爭對手進行分配?是什麼驅使這個 disti 數字比典型數字高這麼多?
Bernard Gutmann - CFO, Executive VP & Treasurer
Bernard Gutmann - CFO, Executive VP & Treasurer
Resales have been pretty strong in the channel. We are managing our inventories to be within our normal 11 to 13 weeks and keeping it that way. So it's more just overall strength.
該渠道的轉售非常強勁。我們將庫存管理在我們正常的 11 到 13 週內,並保持這種狀態。所以更多的是綜合實力。
Hassane El-Khoury - President, CEO & Director
Hassane El-Khoury - President, CEO & Director
Yes. But I don't know of the discrepancy that you're mentioning as far as -- I'm guessing the 60% and the 50% numbers are percent mix from distribution. It's been very consistent at about the 60% range. So there hasn't been really a change in behavior. Because direct customers are not going to switch to disti because they can't get products from us. And that's why the comment I gave to Vivek earlier. We are driving the disti inventory to be able to be a straight shot through disti to our end customer. There's no point on building inventory on the shelf at disti.
是的。但我不知道你提到的差異 - 我猜 60% 和 50% 的數字是分佈的百分比混合。它在大約 60% 的範圍內非常一致。所以行為上並沒有真正的改變。因為直接客戶不會因為無法從我們這裡獲得產品而轉向 disti。這就是我之前給 Vivek 的評論的原因。我們正在推動 disti 庫存,以便能夠直接通過 disti 向我們的最終客戶發送。在 disti 的貨架上建立庫存是沒有意義的。
So if the customer cannot get it direct from us, I can guarantee you, they're not going to be able to get it from the distributor by bypassing. That's not a driver, but it's been consistent. I don't see any change in distribution percentage for the company.
因此,如果客戶不能直接從我們這裡得到它,我可以向你保證,他們將無法繞過經銷商從分銷商那裡得到它。這不是一個驅動程序,但它一直是一致的。我沒有看到公司的分配百分比有任何變化。
Christopher Adam Jackson Rolland - Senior Analyst
Christopher Adam Jackson Rolland - Senior Analyst
Sure. Understood. My second question on the comp side. That was better than we had expected. Could you talk about the importance of maybe North America into this as you put handsets into comms versus rest of the world, China and others? Just talk about maybe where we're seeing outsized strength and how important that North American customer is in particular.
當然。明白了。我在比賽方面的第二個問題。這比我們預期的要好。當您將手機用於通訊與世界其他地區、中國和其他國家時,您能否談談北美在這方面的重要性?談談我們在哪裡看到了巨大的力量,以及北美客戶的重要性。
Hassane El-Khoury - President, CEO & Director
Hassane El-Khoury - President, CEO & Director
I mean obviously, North American customer is important because the deployment and the capital expenditure is happening. And given our position with the 5G power side of the market, we are very well positioned across the regions. There's a certain level of total market. And as things lose share regionally, we will gain it somewhere else. And that's the work we're really monitoring on a global basis, regardless of where the design in happens.
我的意思很明顯,北美客戶很重要,因為部署和資本支出正在發生。鑑於我們在市場 5G 電源方面的地位,我們在各個地區都處於有利地位。有一定的市場總量。隨著事情在區域內失去份額,我們將在其他地方獲得它。這就是我們真正在全球範圍內監控的工作,無論設計發生在哪裡。
Operator
Operator
And our next question comes from the line of Craig Ellis with B. Riley Securities.
我們的下一個問題來自 B. Riley Securities 的 Craig Ellis。
Craig Andrew Ellis - Senior MD & Director of Research
Craig Andrew Ellis - Senior MD & Director of Research
Bernard, congrats. It's been great working with you over the years. Hassane, I wanted to start just by following up on compute sequential strength and dig into it the following way: One, can you help us understand just the distinction between what server power might have done versus notebook, given the strength in notebook units? And then as you look at the things that distinguish where you'll want to allocate resources, any initial views on the ability to drive high gross margins and value out of those 2 different sides of the business going forward would be helpful.
伯納德,恭喜。這些年來和你一起工作真是太好了。 Hassane,我想從跟踪計算順序強度開始,然後通過以下方式深入研究:第一,考慮到筆記本單元的強度,您能否幫助我們了解服務器電源與筆記本電腦之間的區別?然後,當您查看區分您想要在哪里分配資源的事物時,任何關於從業務的這兩個不同方面推動高毛利率和價值的能力的初步看法都會有所幫助。
Bernard Gutmann - CFO, Executive VP & Treasurer
Bernard Gutmann - CFO, Executive VP & Treasurer
Yes. So our focus in the computing space is more on the server and cloud. That's where we view where we have opportunities for enhanced shareholder value in the future. In the meantime, we're taking opportunities -- of the fact that the client computing has been quite strong. And in that sense, we believe some of it is from the work-from-home scenario. And obviously, we are taking advantage of that. But the focus in the long run where we see better margins and also enhanced growth is on the server side.
是的。因此,我們在計算領域的重點更多地放在服務器和雲上。這就是我們認為未來我們有機會提高股東價值的地方。與此同時,我們正在抓住機會——客戶端計算非常強大的事實。從這個意義上說,我們相信其中一些來自在家工作的場景。顯然,我們正在利用這一點。但從長遠來看,我們看到更高的利潤率和增強的增長的重點是服務器端。
Hassane El-Khoury - President, CEO & Director
Hassane El-Khoury - President, CEO & Director
Yes. And that's -- it's kind of when you overlay our strategic markets. I talk about automotive and industrial. There are other, I'd call it, submarkets that you're familiar with like the server within the compute that is a focused market, because I look at it as an adjacent technology market. If we are able to create high-value products in auto and industrial, those are very valuable for these submarkets that I'm talking about. They will drive growth and margin accretion for the company. And those would be things -- you're not going to see us invest as a point product in them, but we're definitely going to be addressing them as part of the adjacency we drive. And that's effectively the OpEx efficiency metric.
是的。那就是 - 當你覆蓋我們的戰略市場時。我談論汽車和工業。還有其他,我稱之為你熟悉的子市場,例如計算中的服務器,這是一個重點市場,因為我將其視為一個相鄰的技術市場。如果我們能夠在汽車和工業領域創造高價值產品,那麼這些產品對我所說的這些子市場非常有價值。它們將推動公司的增長和利潤增長。這些就是事情-您不會看到我們將其作為重點產品進行投資,但我們肯定會將它們作為我們驅動的鄰接的一部分來解決。這實際上是運營支出效率指標。
Craig Andrew Ellis - Senior MD & Director of Research
Craig Andrew Ellis - Senior MD & Director of Research
Got it. And then for the follow-up, Hassane, you mentioned early in your script that you've been boarded on, you've had some notable positive surprises. I was just hoping you could list 2 or 3 of those and talk about them and their implications as you think about driving the business forward and creating additional shareholder value.
知道了。然後對於後續行動,Hassane,你在劇本的早期提到你已經被登上了,你有一些明顯的積極驚喜。我只是希望您能列出其中的 2 或 3 個,並在您考慮推動業務發展和創造額外的股東價值時談論它們及其影響。
Hassane El-Khoury - President, CEO & Director
Hassane El-Khoury - President, CEO & Director
Sure. I'll give you -- I don't want to steal my own thunder for the August meeting, but I'll give you one that we have -- if you look at the product portfolio mapping versus gross margin profile, I really like the distribution. I thought the distribution is going to be more -- less levers and much higher gross margin businesses than what I found. So we do have some very healthy gross margins. And the focus for me is how do we double down on those and grow them in order to start effectively shifting the mix while we disposition the dilutive tail.
當然。我會給你——我不想在 8 月的會議上搶走自己的風頭,但我會給你一個我們擁有的——如果你看看產品組合映射與毛利率概況,我真的很喜歡分佈。我認為分配會比我發現的更多——更少的槓桿和更高的毛利率業務。所以我們確實有一些非常健康的毛利率。對我來說,重點是我們如何在這些方面加倍努力並發展它們,以便在我們處理稀釋尾巴的同時開始有效地改變組合。
There's more levers in that view of the business than I have thought walking in. And that gets me excited because I don't have to wait 5 years to change a mix. We can actually try to manage a mix shift effectively, and we control it.
這種對業務的看法比我想像的要多得多。這讓我很興奮,因為我不必等待 5 年來改變組合。我們實際上可以嘗試有效地管理混音轉換,並且我們可以控制它。
Operator
Operator
And our next question comes from the line of Kevin Cassidy with Rosenblatt Securities.
我們的下一個問題來自 Rosenblatt Securities 的 Kevin Cassidy。
Kevin Edward Cassidy - Senior Semiconductor Research Analyst
Kevin Edward Cassidy - Senior Semiconductor Research Analyst
Congratulations, Bernard. Just on the foundries, how many different foundries do you use? And are they all raising prices? Is this what you're talking about when you say the supply chain is -- your supply chain is increasing prices?
恭喜,伯納德。就鑄造廠而言,您使用了多少個不同的鑄造廠?他們都在提高價格嗎?當你說供應鍊是 - 你的供應鏈正在提高價格時,這就是你所說的嗎?
Bernard Gutmann - CFO, Executive VP & Treasurer
Bernard Gutmann - CFO, Executive VP & Treasurer
So we use the same usual suspects that pretty much everybody else uses, the big ones and small ones. We have a pretty long list of foundries. And we are subject to the same pressures that probably all of our competitors are subject to.
所以我們使用幾乎所有其他人都使用的相同的常見嫌疑人,大的和小的。我們有很長的代工廠名單。我們承受的壓力可能與我們所有的競爭對手都承受的壓力相同。
Hassane El-Khoury - President, CEO & Director
Hassane El-Khoury - President, CEO & Director
Yes. But the comment I made about the supply chain is not really foundry versus internal. You need to look at it as material. There is also -- it's not really the supply shortages that everybody is seeing, but more importantly that I look at is the materials that is required.
是的。但我對供應鏈的評論並不是真正的代工廠與內部。您需要將其視為材料。還有 - 這並不是每個人都看到的供應短缺,但更重要的是我看到的是所需的材料。
So there are pockets that our suppliers have asked for. And if we're able to absorb them, we are; if not, we usually have a dual-source strategy, so we'll move somewhere else. But with a -- the supply constraint that everybody is seeing, some of it, we just have to basically eat in order for us to support our customers. And in those cases, we are going to pass it down. But it's not a foundry versus internal cost conversation. It's more, call it, raw material for our supply chain.
因此,我們的供應商要求提供一些口袋。如果我們能夠吸收它們,我們就是;如果沒有,我們通常有雙源策略,所以我們會搬到其他地方。但是由於每個人都看到的供應限制,其中一些,我們只需要基本上吃才能支持我們的客戶。在這些情況下,我們將把它傳遞下去。但這不是代工廠與內部成本的對話。它更像是我們供應鏈的原材料。
Kevin Edward Cassidy - Senior Semiconductor Research Analyst
Kevin Edward Cassidy - Senior Semiconductor Research Analyst
Okay. Understood. And maybe just as a quick follow-up. And maybe in part of your strategy development, is there consideration for consolidating foundries or trying to get prices down by putting more into one foundry?
好的。明白了。也許只是作為一個快速跟進。也許在你的戰略發展的一部分,是否考慮整合代工廠或試圖通過向一個代工廠投入更多來降低價格?
Hassane El-Khoury - President, CEO & Director
Hassane El-Khoury - President, CEO & Director
Well, obviously, if you are able to consolidate even your business on the foundry, you will get the volume pricing benefit versus being able to be spread across multiple. We don't always have the choice because of the technology footprint that you need. Some foundry just doesn't do a wide range of the technology we need and -- but that's part of how we are looking at it. So when I say manufacturing consolidation, it's both internal and external in order to get the best pricing and the best posture we can to service our end markets.
好吧,顯然,如果您能夠在代工廠上整合您的業務,您將獲得批量定價優勢,而不是能夠分散在多個代工廠。由於您需要的技術足跡,我們並不總是有選擇的餘地。一些代工廠只是不做我們需要的廣泛技術,但這是我們看待它的一部分。因此,當我說製造整合時,它既是內部的,也是外部的,以便獲得最好的定價和最好的姿態來服務我們的終端市場。
Operator
Operator
And our next question comes from the line of David O'Connor with Exane Paribas.
我們的下一個問題來自 David O'Connor 和 Exane Paribas 的台詞。
David O'Connor - Analyst of IT Hardware and Semiconductors
David O'Connor - Analyst of IT Hardware and Semiconductors
Great maybe 1 or 2 just follow-ups on my side. Hassane, you mentioned about being positively surprised when you came in and started looking at the business. Was there any negative surprises that kind of stood out for you? That's my first question.
偉大的也許 1 或 2 只是我身邊的後續行動。哈桑,你提到當你進來並開始關注業務時感到非常驚訝。有沒有讓你印象深刻的負面驚喜?這是我的第一個問題。
And then maybe as the follow-up, the industry has been caught by surprise by this foundry tightness. How do you think that changes the relationship, if at all, with foundries in the kind of longer term? Is there anything in terms of securing that capacity that needs to change or just even in the relationship?
然後也許作為後續,行業已經被這種代工的緊張所震驚。您認為這會如何改變與鑄造廠的長期關係(如果有的話)?在確保這種能力方面有什麼需要改變的,甚至只是在關係中?
Hassane El-Khoury - President, CEO & Director
Hassane El-Khoury - President, CEO & Director
Sure. It's hard for me to answer the negative surprises because I don't have any. My mind works differently. If I see something that is not what I expected, I look at it as a positive opportunity. So it's always positive, whether it's a surprise or an opportunity.
當然。我很難回答負面的驚喜,因為我沒有。我的思維方式不同。如果我看到一些與我預期不同的東西,我會將其視為一個積極的機會。所以它總是積極的,無論是驚喜還是機會。
Of course, there are a couple that I just didn't know. I didn't have an opinion one way or another because they're internal. I didn't have the privilege of getting in and looking at nonpublic information before I joined that I discovered. But I looked at it as, well, that's part of the reason I took the job is in order to be able to identify all of these opportunities and turn them into positive surprises for us and our shareholders.
當然,有一對我只是不知道。我沒有任何意見,因為它們是內部的。在我加入之前,我沒有進入和查看非公開信息的特權,我發現了這一點。但我認為,這也是我接受這份工作的部分原因,是為了能夠識別所有這些機會,並將它們轉化為我們和股東的積極驚喜。
But I will tell you, in general, the umbrella that I would answer is there hasn't been a day in the last 8 weeks where I will come thinking, what the heck did I just do. It's always been, let's go at it, let's write more things down, and let's start executing. That's been kind of the mindset I've had. And really, the response from the team has been tremendous, and that's why you see an energized workforce, but more importantly, the results are going to start showing. So that's on this side.
但我會告訴你,總的來說,我要回答的問題是,在過去的 8 周中,我沒有一天會思考,我到底做了什麼。一直都是,讓我們開始吧,讓我們寫下更多的東西,讓我們開始執行。這就是我曾經的一種心態。確實,團隊的反應是巨大的,這就是為什麼你會看到一支充滿活力的員工隊伍,但更重要的是,結果將開始顯現。所以這是在這一邊。
Now how do we deal with the long term, kind of the industry caught by surprise and so on? It's really -- once you have a strategy and a 5-year outlook with a 3-year credible window, then you start having those strategic conversations with your suppliers and turning the conversation from a tactical to a strategic, where if you're able to commit this is your growth and you're able to keep their factories not lumpy, up and down, then you have a much better relationship.
現在我們如何應對長期的、出乎意料的行業等等?真的——一旦你有了一個戰略和一個 3 年可信窗口的 5 年展望,那麼你就開始與你的供應商進行這些戰略對話,並將對話從戰術轉變為戰略,如果你能夠承諾這是您的成長,並且您能夠保持他們的工廠不會起伏不定,那麼您的關係就會好得多。
I have a lot of those relationships personally. Wei-Chung, who we brought in as the Head of Global Manufacturing and Operation, has a lot of these relationships. And we're going to strengthen those, but it's all going to start with we, as a company, what do we want to do strategically and how can they help.
我個人有很多這樣的關係。我們聘請的全球製造和運營主管 Wei-Chung 與這些人有很多關係。我們將加強這些,但這一切都將從我們作為一家公司開始,我們想在戰略上做什麼以及他們如何提供幫助。
Operator
Operator
And our next question comes from the line of Harlan Sur with JPMorgan.
我們的下一個問題來自摩根大通的 Harlan Sur。
Harlan Sur - Senior Analyst
Harlan Sur - Senior Analyst
Hassane, welcome to the team, and thank you to Bernard for your contributions and support over the past number of years. As a part of your strategy, Hassane, focus on high-margin, high-growth products and markets, I think a key part of that is you lead with certain leadership products and then drive further dollar content attached given the breadth of the portfolio. What's your assessment of the current sales and marketing organization and focus and the ability to cross-sell and drive higher attach rates to targeted opportunities?
Hassane,歡迎加入團隊,並感謝 Bernard 在過去幾年中的貢獻和支持。作為你戰略的一部分,哈桑,專注於高利潤、高增長的產品和市場,我認為其中的一個關鍵部分是你以某些領先的產品領先,然後考慮到產品組合的廣度,進一步推動附加的美元內容。您對當前的銷售和營銷組織和重點以及交叉銷售和提高目標機會的附加率的能力有何評價?
Hassane El-Khoury - President, CEO & Director
Hassane El-Khoury - President, CEO & Director
Yes. I think from our direct sales force and our marketing, the mindset is there. And my drive for these groups is really adding the focus. If you have a sales force and/or marketing, I would call it, sales and marketing, with a very heavy bag to sell and a portion of that bag is not going to drive the value, I'd rather lighten that bag and have a really hardcore sell of the things that we want them to sell still at a breadth and a bill of material coverage. That's how I'm thinking about it.
是的。我認為從我們的直銷團隊和營銷部門來看,這種心態就在那裡。我對這些群體的推動確實增加了焦點。如果您有銷售人員和/或營銷人員,我會稱之為銷售和營銷,有一個非常重的包要出售,而該包的一部分不會推動價值,我寧願減輕那個包並擁有我們希望他們銷售的東西的真正核心銷售仍然在廣度和材料清單範圍內。我就是這麼想的。
And that, by the way, is going to match our distribution. I answered the prior question where portfolio rationalization is going to drive our distribution footprint. I'm going to be looking at distribution the same way I look at our direct sales and marketing. It's going to be, how do we maximize the content that I want to maximize.
順便說一句,這將與我們的分佈相匹配。我回答了之前的問題,投資組合合理化將推動我們的分銷足跡。我將像看待直銷和營銷一樣看待分銷。這將是,我們如何最大化我想要最大化的內容。
Harlan Sur - Senior Analyst
Harlan Sur - Senior Analyst
Yes. Makes sense. And then maybe if you could just give us your thoughts on the silicon carbide power portfolio. I know the team has been talking about the growing portfolio and design win pipeline of next-generation silicon carbide-based power solutions in both automotive and industrial, but wanted to get your views.
是的。說得通。然後也許你能告訴我們你對碳化矽電源組合的看法。我知道該團隊一直在談論汽車和工業領域的下一代基於碳化矽的電源解決方案不斷增長的產品組合和設計贏得管道,但希望得到您的意見。
Hassane El-Khoury - President, CEO & Director
Hassane El-Khoury - President, CEO & Director
Sure. I would put that under one of the positive surprises that I've seen since joining. I think our products are very competitive. I like where we are on the technology development for that. And really, more importantly, is the design wins that we've had in these markets.
當然。我會把它放在我加入後看到的積極驚喜之一。我認為我們的產品很有競爭力。我喜歡我們在這方面的技術開發。實際上,更重要的是,我們在這些市場上贏得了設計勝利。
Now obviously, as far as revenue drive, as we all know, the mix of IGBT versus silicon carbide, we're going to see that cross over probably over the next, I don't know, 4 to 5 years. But we're here, we're playing, and we're going to start taking share based on where our products are going to be. So I see that as a positive surprise for me, and it's going to be definitely part of the strategic intent that we're talking about.
現在顯然,就收入驅動而言,眾所周知,IGBT 與碳化矽的混合,我們可能會在接下來的 4 到 5 年內看到這種交叉。但我們在這裡,我們正在玩,我們將開始根據我們的產品將在哪里分享份額。所以我認為這對我來說是一個積極的驚喜,它肯定會成為我們正在談論的戰略意圖的一部分。
Operator
Operator
And our next question comes from the line of John Pitzer with Crédit Suisse.
我們的下一個問題來自瑞士信貸的 John Pitzer。
John William Pitzer - MD, Global Technology Strategist and Global Technology Sector Head
John William Pitzer - MD, Global Technology Strategist and Global Technology Sector Head
Yes. Hassane, congratulations. Hassane, you mentioned earlier that we're all trying to steal your thunder for the August Analyst Day, and I apologize if this is an attempt. But you talked about the margin targets that are out there today, and that they wouldn't change until August. But in that preamble, you also talked about timing to get there was being a big focus.
是的。哈桑,恭喜。哈桑,你之前提到我們都想在八月分析師日搶走你的風頭,如果這是一次嘗試,我深表歉意。但是你談到了今天的保證金目標,而且它們要到 8 月才會改變。但是在那篇序言中,你還談到了實現目標的時機是一個很大的焦點。
I'm kind of curious, relative to the existing targets that are out there, how quickly do you think you can get there? And if you could help me understand where the low-hanging fruit is versus the stuff that's a little bit harder to do.
我有點好奇,相對於現有的目標,你認為你能多快到達那裡?如果你能幫助我了解容易實現的目標與更難做的事情在哪裡。
Hassane El-Khoury - President, CEO & Director
Hassane El-Khoury - President, CEO & Director
Sure. So you see already, Q1 is a move in the right direction as far as margin. So that -- I'll just tell you that. You're not going to wait until -- we have one more quarter before the August discussion we will have. So you'll see more progress then.
當然。所以你已經看到,就保證金而言,Q1 是朝著正確方向邁出的一步。所以——我會告訴你。你不會等到 - 在我們將進行的 8 月討論之前,我們還有一個季度。所以你會看到更多的進步。
As far as the timing, of course, fab changes will take the longest because it takes time to change your manufacturing footprint between transferring technology and getting customer quals. But you're also not going to hear me say, "Wait for me for 3 years before we unwind all of this." We have and there are enough levers for us to make a positive impact on margin. But what I'm hesitating, because I really haven't done the full scope of it, is the scale of that positive impact we can do in the short term.
當然,就時間而言,晶圓廠的變化將花費最長的時間,因為在轉移技術和獲得客戶資格之間改變您的製造足跡需要時間。但你也不會聽到我說,“等我 3 年,然後我們才能解開這一切。”我們擁有並且有足夠的槓桿來對利潤率產生積極影響。但我猶豫的是,因為我真的沒有完成它的全部範圍,是我們可以在短期內產生的積極影響的規模。
And again, all I'm asking for is till August. But you're not going to see, yes, we're stuck with manufacturing, so it's going to take a long time. That's not what you can expect. You'll expect something much more favorable.
再說一次,我所要求的只是到八月。但是你不會看到,是的,我們被困在製造業中,所以這需要很長時間。這不是你可以期待的。你會期待更有利的東西。
John William Pitzer - MD, Global Technology Strategist and Global Technology Sector Head
John William Pitzer - MD, Global Technology Strategist and Global Technology Sector Head
No, that's helpful. So just as my follow-up, just going back to your M&A comments. I know you're not going to be too specific, but I was hoping you could give us some broad strokes of how you're thinking about M&A. You clearly created a lot of value at Cypress with the Broadcom IoT acquisition. If you look at the history with ON, there's sort of been this tension between M&A and profitability targets. And oftentimes, the M&A set the profitability targets back. What kind of principled views do you have on M&A around accretion, around the model, around what it needs to add to the business?
不,這很有幫助。因此,就像我的後續行動一樣,回到您的併購評論。我知道你不會說得太具體,但我希望你能給我們一些關於你對併購的看法的大致思路。顯然,您通過收購 Broadcom IoT 為賽普拉斯創造了很多價值。如果您查看 ON 的歷史,就會發現併購和盈利目標之間存在某種緊張關係。通常,併購會重新設定盈利目標。您對併購、併購、模式以及需要為業務增加的內容有哪些原則性觀點?
Hassane El-Khoury - President, CEO & Director
Hassane El-Khoury - President, CEO & Director
Sure. There's not really one recipe for M&A. What -- in parallel to what I talk about with the strategy for the company, I do have a M&A strategy very specifically that matches up to that. And what do I mean? Some deals are strategic deals, where they may not be accretive right in the first year or when we do it or at the synergy, but they're strategic to give us a position in the market that we would like, a leadership position. We're going to be looking at those, for example.
當然。併購的秘訣並不只有一種。什麼 - 與我談論的公司戰略平行,我確實有一個非常具體的併購戰略與之相匹配。我是什麼意思?有些交易是戰略性交易,它們可能不會在第一年或當我們這樣做時或在協同作用下產生增值,但它們具有戰略意義,可以讓我們在市場中獲得我們想要的地位,即領導地位。例如,我們將研究這些。
There are some that are financial deals where you do a deal because it strengthen your current markets or capability that you are growing organically, where you can give it an adrenaline shot in the arm and accelerate the attainment versus doing it organically. So I look at M&A, and you've seen it the way we've done it at Cypress, in order to fit a certain purpose. And that's the thesis that I form prior to going into the M&A. Because if I can't explain it to all of our employees, I sure as heck cannot explain it to all of you out there. So focusing on why we are doing it is key.
有些是金融交易,您可以在其中進行交易,因為它可以增強您當前的市場或您正在有機增長的能力,您可以在其中給它一劑腎上腺素並加速實現而不是有機地進行交易。所以我看併購,你已經看到了我們在賽普拉斯所做的方式,以適應特定目的。這就是我在進行併購之前形成的論點。因為如果我不能向我們所有的員工解釋,我肯定無法向你們所有人解釋。因此,關注我們為什麼這樣做是關鍵。
But we're not going to do a bad deal just to do a bad deal. We do have the scale. We have the growth. We have a lot of opportunity for us to create value. So you're not going to see us rushing doing something just for the sake of doing something. We're going to be very disciplined. But when we do something, you can expect that it's going to be to achieve a very specific thesis that is very well aligned with our strategy.
但我們不會為了做壞事而做壞事。我們確實有規模。我們有成長。我們有很多機會創造價值。所以你不會看到我們只是為了做某事而匆忙做某事。我們會非常有紀律。但是當我們做某事時,你可以期望它會實現一個非常具體的論文,這與我們的戰略非常吻合。
Operator
Operator
And our next question comes from the line of William Stein with Truist Securities.
我們的下一個問題來自 Truist Securities 的 William Stein。
William Stein - MD
William Stein - MD
Great. I offer my congrats again to Bernard. And so Hassane, probably for you. I'm hoping you can dig into the end markets a little bit more. In particular, I think we didn't hear about consumer and compute in the quarter. Maybe that's a tell as to the strategic focus of those end markets. But maybe you can talk also about the Q1 outlook by end market a little bit.
偉大的。我再次向伯納德表示祝賀。所以哈桑,可能適合你。我希望你能更多地挖掘終端市場。特別是,我認為我們在本季度沒有聽說過消費者和計算。也許這說明了這些終端市場的戰略重點。但也許你也可以談談終端市場的第一季度前景。
Hassane El-Khoury - President, CEO & Director
Hassane El-Khoury - President, CEO & Director
Sure. Your comment is very accurate. I'm starting to set the stage of where we're going to be. And obviously, the Q&A session is very, very long, but it's very also important just to kind of set the stage of where we are. But you're going to start expecting these commentary in order for us, as a company, to start driving the narrative of where we are and what our strategy is. And that's why you didn't see a lot of commentary on -- as far as some of the end markets that I'll gladly take if they support growth at the right margin profile that we have, but what I call -- they are opportunistic markets.
當然。你的評論非常準確。我開始為我們將要去的地方做好準備。很明顯,問答環節非常非常長,但設置我們所處的階段也非常重要。但是您將開始期待這些評論,以便我們作為一家公司開始推動關於我們所處位置和戰略的敘述。這就是為什麼你沒有看到很多評論——就一些終端市場而言,如果它們支持我們所擁有的正確利潤率的增長,我很樂意接受,但我所說的——它們是機會主義市場。
I'm not going to be delving into a lot of those details moving forward. But if there's anything notable, we will just tell you regarding that. And that includes kind of given the breakdown, forward-looking guidance by all of these end markets. I don't think that, that dilutes a little bit of what we are doing. So I want to keep the message on point.
我不會深入研究這些細節。但如果有什麼值得注意的,我們只會告訴你。這包括所有這些終端市場的細分、前瞻性指導。我不認為這會稀釋我們正在做的事情。所以我想保持信息的重點。
William Stein - MD
William Stein - MD
Okay. Maybe then I can ask a little bit about the backlog. We've heard a lot about shortages that stimulate double ordering because customers get nervous. It sounds like that's not so much happening with your business. But maybe you can give us some idea as to the size of the backlog now and the duration of the backlog relative to what it looks like typically.
好的。也許那時我可以問一些關於積壓的問題。我們聽說過很多關於短缺會刺激重複訂購的消息,因為客戶會感到緊張。聽起來您的業務並沒有那麼多事情發生。但也許你可以給我們一些關於現在積壓的大小以及相對於它通常看起來的積壓持續時間的想法。
Hassane El-Khoury - President, CEO & Director
Hassane El-Khoury - President, CEO & Director
Listen, there's always a risk of double ordering, and we have a lot of metrics. Our sales force and our operations team have way more data than I can tell you about how do we trend and make sure that there are inconsistencies between what we expect, what the market tells us and what the orders on our books are. So I'll leave it at that. And whenever we see risk of double ordering, we pick up the phone and have to engage directly. We don't depend just on the backlog to drive our inventory and our wafer starts. So we do that, again, as a day-to-day.
聽著,總是有雙重訂購的風險,我們有很多指標。我們的銷售人員和我們的運營團隊擁有的數據比我能告訴你的要多得多,關於我們如何發展趨勢,並確保我們的預期、市場告訴我們的和我們賬面上的訂單之間存在不一致。所以我就這樣吧。每當我們看到重複訂購的風險時,我們都會拿起電話並直接參與。我們不僅僅依靠積壓來推動我們的庫存和我們的晶圓開工。因此,我們再次將其作為日常工作。
Typically, in normal times, we don't have to do this. But again, if it goes back to the comment I made earlier, when we get an order, I want to make sure to whatever confidence I can, 80%, 90%, 100% confidence, that it's going to be on a board at a customer that's going to ship to an end consumer. That's the focus. So we're trying to plow through it. But there are indications of some double booking that we just ignore, I guess.
通常,在正常情況下,我們不必這樣做。但是再一次,如果回到我之前發表的評論,當我們收到訂單時,我想確保盡我所能,80%、90%、100% 的信心,它將在董事會上將運送給最終消費者的客戶。這就是重點。所以我們正在努力克服它。但是有跡象表明我們只是忽略了一些重複預訂,我猜。
William Stein - MD
William Stein - MD
Congrats on the great results and guidance.
祝賀偉大的成果和指導。
Hassane El-Khoury - President, CEO & Director
Hassane El-Khoury - President, CEO & Director
Thank you.
謝謝你。
Operator
Operator
And this does conclude today's question-and-answer session. And I would like to turn the conference back over to Parag Agarwal for any further remarks.
這確實結束了今天的問答環節。我想把會議轉回給 Parag Agarwal 做進一步的評論。
Parag Agarwal - VP of IR & Corporate Development
Parag Agarwal - VP of IR & Corporate Development
Thank you, everyone, for joining the call today. We look forward to seeing you at various conferences and various nondeal road shows throughout the quarter. Thank you, and goodbye.
謝謝大家今天加入電話會議。我們期待在整個季度的各種會議和各種非交易路演中見到您。謝謝,拜拜。
Operator
Operator
Ladies and gentlemen, this concludes today's program. You may all disconnect. Everyone, have a great day.
女士們,先生們,今天的節目到此結束。你們都可以斷開連接。大家,有一個美好的一天。