安森美 (ON) 2020 Q3 法說會逐字稿

Ladies and gentlemen, thank you for standing by, and welcome to the ON Semiconductor Third Quarter 2020 Earnings Conference Call. (Operator Instructions) I will now like to hand the conference over to your speaker today, to Mr. Parag Agarwal, Vice President of Investor Relations and Corporate Development. Thank you. Please go ahead.

女士們，先生們，感謝您的支持，歡迎參加安森美半導體 2020 年第三季度收益電話會議。 （操作員說明）我現在想將會議交給您今天的演講者，即投資者關係和企業發展副總裁 Parag Agarwal 先生。謝謝你。請繼續。

Thank you. Good morning, and thank you for joining ON Semiconductor Corporation Third Quarter 2020 Quarterly Results Conference Call. I'm joined today by Keith Jackson, our President and CEO; and Bernard Gutmann, our CFO. This call is being webcast on the Investor Relations section of our website at www.onsemi.com. A replay of this webcast, along with our 2020 third quarter earnings release, will be available on our website approximately 1 hour following this conference call, and the recorded webcast will be available for approximately 30 days following this conference call.

謝謝你。早上好，感謝您參加安森美半導體公司 2020 年第三季度季度業績電話會議。今天，我們的總裁兼首席執行官 Keith Jackson 也加入了我的行列；和我們的首席財務官 Bernard Gutmann。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 年第三季度收益發布將在本次電話會議後大約 1 小時在我們的網站上提供，錄製的網絡廣播將在本次電話會議後大約 30 天內提供。

The script for today's call and additional information related to our end markets, business segments, geographies, channels, share count and 2020 and 2021 fiscal calendars are also posted on our website. Our earnings release and this presentation include certain non-GAAP financial measures. Reconciliation of these non-GAAP financial measures to the most directly comparable measures under GAAP are also included in our earnings release, which is posted separately on our website in the Investor Relations section.

今天電話會議的腳本以及與我們的終端市場、業務部門、地理位置、渠道、股票數量以及 2020 年和 2021 年財政日曆相關的其他信息也發佈在我們的網站上。我們的收益發布和本演示文稿包括某些非公認會計準則財務指標。這些非公認會計原則財務指標與公認會計原則下最直接可比指標的對賬也包含在我們的收益發布中，該發佈單獨發佈在我們網站的投資者關係部分。

During the course of this conference call, we will make projections or other forward-looking statements regarding future events or the future financial performance of the company. The words believe, estimate, project, anticipate, intend, may, expect, will, plan, should or similar expressions are intended to identify forward-looking statements. We wish to caution that such statements are subject to risks and uncertainties that could cause actual events or results to differ materially from projections. Important factors, 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 Securities and Exchange Commission.

在本次電話會議期間，我們將對未來事件或公司未來財務業績做出預測或其他前瞻性陳述。相信、估計、預測、預期、打算、可能、期望、將、計劃、應該或類似的表達方式旨在識別前瞻性陳述。我們希望提醒您，此類陳述存在風險和不確定性，可能導致實際事件或結果與預測存在重大差異。可能影響我們業務的重要因素，包括可能導致實際結果與我們的前瞻性陳述不同的因素，在我們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。

Additional factors are described in our earnings release for the third 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.

我們在 2020 年第三季度的收益發布中描述了其他因素。我們的估計或其他前瞻性陳述可能會發生變化，公司不承擔更新前瞻性陳述以反映實際結果、改變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。

During the fourth quarter, we planned to attend 2 virtual conferences. This includes NASDAQ's 43rd Virtual Investor Conference on December 1, and Wells Fargo TMT Summit 2020 on December 2. Now let me turn it over to Bernard Gutmann, who will provide an overview of our third quarter 2020 results. Bernard?

在第四季度，我們計劃參加 2 次虛擬會議。這包括 12 月 1 日的納斯達克第 43 屆虛擬投資者會議和 12 月 2 日的 Wells Fargo TMT 峰會 2020。現在讓我把它交給 Bernard Gutmann，他將概述我們 2020 年第三季度的業績。伯納德?

Thank you, Parag, and thank you, everyone, for joining us today. During the third quarter, we saw a strong recovery in business conditions due to sharp acceleration in global economic activity, especially in the automotive market. Order activity has picked up meaningfully across end markets and geographies. Manufacturers are striving to meet the upsurge in demand, which was previously disrupted by the COVID-19 pandemic. Along with strong macro-driven recovery of our business, momentum in our key strategic growth areas in industrial, automotive and cloud power end markets is accelerating. Our design wins are accelerating, and the design funnel is expanding at a rapid pace.

謝謝你，帕拉格，謝謝大家今天加入我們。在第三季度，由於全球經濟活動（尤其是汽車市場）急劇加速，我們看到商業狀況強勁復甦。終端市場和地區的訂單活動顯著增加。製造商正在努力滿足之前因 COVID-19 大流行而中斷的需求激增。隨著我們業務在宏觀驅動下強勁復甦，我們在工業、汽車和雲能源終端市場的關鍵戰略增長領域的勢頭正在加速。我們的設計勝利正在加速，設計漏斗正在快速擴展。

As we stated earlier, gross margin improvement is the primary strategic priority for the company. We're on track with our manufacturing consolidation plan, and discussions are ongoing with various parties regarding the previously announced intended sale of our fabs in Belgium and Japan. In the near term, revenue tailwinds from the ongoing recovery in business conditions and favorable end market mix shift should help drive margin expansion.

正如我們之前所說，提高毛利率是公司的首要戰略重點。我們正在推進我們的製造整合計劃，並且正在與各方就先前宣布的出售我們在比利時和日本的晶圓廠的計劃進行討論。在短期內，商業狀況的持續復甦和有利的終端市場組合轉變帶來的收入順風應有助於推動利潤率擴張。

Now let me provide you details on our third quarter 2020 results. Total revenue for the third quarter of 2020 was $1.317 billion, a decrease of 5% as compared to revenues of $1.382 billion in the third quarter of 2019. The year-over-year decline in revenue was driven primarily by a slowdown in global macroeconomic activity due to the COVID-19 pandemic. And net income for the third quarter was $0.38 per diluted share as compared to a net loss of $0.15 per diluted share in the third quarter of 2019.

現在讓我為您提供有關我們 2020 年第三季度業績的詳細信息。 2020 年第三季度總收入為 13.17 億美元，比 2019 年第三季度的 13.82 億美元下降 5%。收入同比下降的主要原因是全球宏觀經濟活動放緩由於 COVID-19 大流行。第三季度每股攤薄收益為 0.38 美元，而 2019 年第三季度每股攤薄收益為 0.15 美元。

Non-GAAP net income for the third quarter of 2020 was $0.27 per diluted share as compared to $0.33 per diluted share in the third quarter of 2019. GAAP gross margin for the third quarter of 2020 was 33.5% as compared to 34.4% in the third quarter of 2019. Non-GAAP gross margin for the third quarter of 2020 was 33.5% as compared to 35.8% in the third quarter of 2019. The year-over-year decline in gross margin was driven primarily by lower revenue as discussed earlier and COVID-19 related costs. Our GAAP operating margin for the third quarter of 2020 was 9% as compared to negative 3.2% in the third quarter of 2019. Third quarter GAAP -- third quarter 2019 GAAP operating margins included impact of $169.5 million related to the intellectual property settlement with Power Integrations. Our non-GAAP operating margin for the third quarter of 2020 was 12% as compared to 13% in the third quarter of 2019. The year-over-year decline in operating margin was driven largely by lower revenue and the impact on gross margin due to COVID-19 pandemic.

2020 年第三季度非美國通用會計準則淨利潤為每股攤薄收益 0.27 美元，而 2019 年第三季度為每股攤薄收益 0.33 美元。2020 年第三季度美國通用會計準則毛利率為 33.5%，而第三季度為 34.4% 2019 年第三季度。2020 年第三季度非公認會計準則毛利率為 33.5%，而 2019 年第三季度為 35.8%。毛利率同比下降主要是由於前面討論的收入下降和COVID-19 相關費用。我們 2020 年第三季度的 GAAP 營業利潤率為 9%，而 2019 年第三季度為負 3.2%。第三季度 GAAP——2019 年第三季度 GAAP 營業利潤率包括與 Power 的知識產權和解相關的 1.695 億美元影響集成。我們 2020 年第三季度的非公認會計原則營業利潤率為 12%，而 2019 年第三季度為 13%。營業利潤率同比下降主要是由於收入下降和對毛利率的影響到 COVID-19 大流行。

GAAP operating expenses for the third quarter were $322.2 million as compared to $519.1 million in the third quarter of 2019. Third quarter 2019 GAAP operating expenses included $169.5 million related to the intellectual property settlement with Power Integrations. Non-GAAP operating expenses for the third quarter were $283.6 million as compared to $314.3 million in the third quarter of 2019. The year-over-year decrease in non-GAAP operating expenses was driven primarily by strong execution on the cost front, and by restructuring and cost-saving measures undertaken by the company.

第三季度 GAAP 運營費用為 3.222 億美元，而 2019 年第三季度為 5.191 億美元。2019 年第三季度 GAAP 運營費用包括與 Power Integrations 的知識產權和解相關的 1.695 億美元。第三季度非 GAAP 運營費用為 2.836 億美元，而 2019 年第三季度為 3.143 億美元。非 GAAP 運營費用同比下降的主要原因是成本方面的強勁執行，以及公司採取的重組和成本節約措施。

The third quarter free cash flow was $101.8 million and operating cash flow was $163.4 million. Capital expenditures during the third quarter were $61.6 million, which equates to a capital intensity of 4.7%. As we indicated previously, we are directing most of our capital expenditures towards enabling our 300-millimeter capabilities in the East Fishkill fab. We expect total capital expenditures for 2020 to be in the range of $370 million to $390 million.

第三季度自由現金流為 1.018 億美元，經營現金流為 1.634 億美元。第三季度的資本支出為 6160 萬美元，相當於 4.7% 的資本密集度。正如我們之前所指出的，我們將大部分資本支出用於在東菲什基爾工廠實現 300 毫米的能力。我們預計 2020 年的總資本支出將在 3.7 億美元至 3.9 億美元之間。

We exited the third quarter of 2020 with cash and cash equivalents of $1.654 billion as compared to $2.06 billion at the end of the second quarter of 2020. The decline in cash balance was primarily due to the paydown of amounts drawn under our revolving debt facility as a precautionary measure in response to the COVID-19 pandemic. At this time, with cash balance of approximately $1.6 billion, we are very comfortable with our liquidity position. In the fourth quarter, we expect to use approximately $690 million to pay off our 2020 convertible note principal at maturity.

我們在 2020 年第三季度結束時的現金和現金等價物為 16.54 億美元，而 2020 年第二季度末為 20.6 億美元。現金餘額下降的主要原因是償還了我們的循環債務工具項下提取的金額。應對 COVID-19 大流行的預防措施。目前，現金餘額約為 16 億美元，我們對自己的流動性狀況感到非常滿意。在第四季度，我們預計將使用約 6.9 億美元來償還我們 2020 年到期的可轉換票據本金。

At the end of the third quarter, days of inventory on hand were 133 days, down 7 days as compared to 140 days in the second quarter of 2020. In the fourth quarter, we intend to continue to reduce our balance sheet inventories. Therefore, we plan to run our factories at current levels of utilization despite expected higher revenue levels in the fourth quarter.

第三季度末，庫存天數為133天，比2020年第二季度的140天減少7天。第四季度，我們打算繼續減少資產負債表庫存。因此，儘管預計第四季度的收入水平會更高，我們仍計劃以當前的利用率水平運營我們的工廠。

In the third quarter, distribution inventory decreased by approximately 2 weeks as sales through distribution channel increased significantly quarter-over-quarter. Instead of shipping products in the distribution channel for revenue, we brought down channel inventory, even though it was within our comfort zone.

在第三季度，由於通過分銷渠道的銷售額環比顯著增加，分銷庫存減少了大約 2 週。我們沒有在分銷渠道中運送產品以獲取收入，而是降低了渠道庫存，即使它在我們的舒適範圍內。

Now let me provide you an update on the performance of our business units, starting with the Power Solutions Group, or PSG. Revenue for PSG in the third quarter was $647.4 million. Revenue for the Advanced Solutions Group, or ASG, for the third quarter was $494.6 million and revenue million -- and revenue for our Intelligent Sensing Group, or ISG, was $175.3 million.

現在讓我向您介紹我們業務部門的最新表現，首先是電源解決方案集團或 PSG。 PSG 第三季度的收入為 6.474 億美元。高級解決方案集團 (ASG) 第三季度的收入為 4.946 億美元，收入為 100 萬美元，而我們的智能傳感集團 (ISG) 的收入為 1.753 億美元。

Now I would like to turn the call over to Keith Jackson for additional comments on the business environment. Keith?

現在，我想將電話轉給 Keith Jackson，以獲取有關商業環境的更多評論。基思？

Thanks, Bernard. Let me first update you on our manufacturing optimization plans. And then I will provide an update on our current business environment. We are in discussions with various parties regarding the planned sale of our Belgium and Niigata fabs. We are working diligently to get quick resolutions on these fabs but we do not have an announcement to make at this time. Process for ceasing operations of our fab in Rochester, New York, is progressing as per plan, and we expect to begin seeing annual savings of $15 million starting in the first quarter of 2021.

謝謝，伯納德。讓我首先向您介紹我們的製造優化計劃。然後我將提供有關我們當前業務環境的最新信息。我們正在與各方討論出售我們的比利時和新潟工廠的計劃。我們正在努力盡快解決這些晶圓廠的問題，但我們目前沒有要發布的公告。我們在紐約羅切斯特的工廠停止運營的流程正在按計劃進行，我們預計從 2021 年第一季度開始每年可節省 1500 萬美元。

We achieved major milestone in the third quarter as we recognized our first revenue from our 300-millimeter products. We continue to make solid progress in our manufacturing transition to 300-millimeter fab in East Fishkill, New York. As I have indicated earlier, yields for our 300-millimeter manufacturing processes have been spectacular, and we expect to see a meaningful positive impact on our gross margin as our 300-millimeter manufacturing ramps in the coming years. Additionally, our 300-millimeter manufacturing capability in the East Fishkill fab has afforded us significant flexibility, which has enabled us to optimize our network.

我們在第三季度實現了重要的里程碑，因為我們確認了 300 毫米產品的第一筆收入。我們在向位於紐約東菲什基爾的 300 毫米晶圓廠的製造過渡方面繼續取得紮實的進展。正如我之前所指出的，我們 300 毫米製造工藝的產量非常驚人，隨著未來幾年 300 毫米製造工藝的增加，我們預計將對我們的毛利率產生有意義的積極影響。此外，我們在 East Fishkill 工廠的 300 毫米製造能力為我們提供了極大的靈活性，這使我們能夠優化我們的網絡。

We continue to make substantial progress in our key initiatives to expand gross margins. We are driving shift towards higher-margin products by aggressively winning designs in automotive, industrial and cloud power end markets. At the same time, we continue to optimize our portfolio to drive margin expansion. The fundamentals of our cost structure remain unchanged. With ongoing recovery as our revenue and factory utilization increase, we expect to see a meaningful increase in our gross margin. The benefits from manufacturing optimization, mix shift and portfolio optimization should be additive to fall through we see from incremental revenue.

我們繼續在擴大毛利率的關鍵舉措方面取得重大進展。我們通過在汽車、工業和雲電源終端市場積極贏得設計，推動向利潤率更高的產品轉變。同時，我們繼續優化我們的投資組合以推動利潤率擴張。我們成本結構的基本面保持不變。隨著我們的收入和工廠利用率的增加而持續復甦，我們預計我們的毛利率將顯著增加。我們從增量收入中看到的製造優化、組合轉變和產品組合優化帶來的好處應該是累加的。

Now let me comment on the current business environment. We've seen meaningful acceleration in order momentum in the third quarter, and we expect that business activity will continue to grow at above seasonal levels in the near term. Along with improving global macroeconomic environment, our accelerating design wins in automotive, industrial and cloud power end markets are key contributors to our momentum. From a geographic perspective, we are seeing acceleration in demand from all regions. Economic data such as PMI and GDP point towards a strong recovery in industrial activity and in the overall business environment across the globe.

現在讓我評論一下當前的商業環境。我們看到第三季度訂單勢頭明顯加速，我們預計短期內商業活動將繼續以高於季節性水平的速度增長。隨著全球宏觀經濟環境的改善，我們在汽車、工業和雲能源終端市場的加速設計勝利是我們發展勢頭的關鍵因素。從地理角度來看，我們看到所有地區的需求都在加速。 PMI 和 GDP 等經濟數據表明全球工業活動和整體商業環境強勁復甦。

Although COVID-19 pandemic temporarily affected our business, the underlying fundamentals of our business and secular trends driving our business remain unchanged. We continue to see strong momentum in key strategic initiatives for electric vehicles, robotics, factory and warehouse automation, cloud power and ADAS. We are well-positioned to benefit from ongoing recovery with our highly differentiated power, analog and sensor products, which enable key secular trends in automotive, industrial and cloud power end markets.

儘管 COVID-19 大流行暫時影響了我們的業務，但我們業務的基本面和推動我們業務的長期趨勢保持不變。我們繼續看到電動汽車、機器人、工廠和倉庫自動化、雲能源和 ADAS 等關鍵戰略舉措的強勁勢頭。憑藉我們高度差異化的電源、模擬和傳感器產品，我們處於有利地位，可以從持續復甦中受益，這些產品推動了汽車、工業和雲電源終端市場的關鍵長期趨勢。

Now I'll provide details of the progress in our various end markets for the third quarter of 2020. Revenue for the automotive market in the third quarter was $419.2 million and represented a 32% of our revenue in the third quarter. Third quarter automotive revenue declined by 6% year-over-year, primarily due to COVID-19-driven decline in automotive production. We are seeing strong momentum for our silicon carbide offerings with additional design wins at leading OEMs and Tier 1 customers. In addition to winning new designs, we are expanding our engagement with new customers for silicon carbide and are currently sampling products to many of these customers.

現在，我將詳細介紹 2020 年第三季度我們各個終端市場的進展情況。第三季度汽車市場的收入為 4.192 億美元，占我們第三季度收入的 32%。第三季度汽車收入同比下降 6%，主要是由於 COVID-19 驅動的汽車產量下降。我們看到我們的碳化矽產品發展勢頭強勁，並在領先的 OEM 和一級客戶中贏得了更多的設計勝利。除了贏得新設計外，我們還在擴大與碳化矽新客戶的合作，目前正在向其中許多客戶提供產品樣品。

On the ADAS front, we continue to win designs with major global automotive players. We're also seeing a higher level of attach rates for both ADAS and viewing applications. We are very well-positioned to benefit from technology transition in automotive LIDAR to newer SiPM and SPAD technologies from APD technology. We are seeing strong traction for our LiDAR products with leading customers. Other areas of automotive were strong as well in the third quarter. We saw strong growth in our lighting, ultrasonic and actuator solutions.

在 ADAS 方面，我們繼續贏得全球主要汽車廠商的設計。我們還看到 ADAS 和查看應用程序的附加率更高。我們處於有利位置，可以從汽車激光雷達的技術轉型中受益，從 APD 技術到更新的 SiPM 和 SPAD 技術。我們看到我們的 LiDAR 產品在領先客戶中的強大吸引力。汽車的其他領域在第三季度也表現強勁。我們的照明、超聲波和執行器解決方案實現了強勁增長。

From a geographical perspective, we saw strength across all regions. Despite steep increase in automotive production, it appears that dealer inventories are low. We expect current recovery in the global automotive production to continue in the near term. Based on our outlook and third-party reports, we believe that our 2020 annual automotive revenue growth rate should exceed 2020 global light vehicle annual production growth rate by a wide margin. Revenue in the fourth quarter of 2020 for the automotive end market is expected to be up quarter-over-quarter as we expect to see continuing recovery in global automotive production.

從地理角度來看，我們看到了所有地區的實力。儘管汽車產量急劇增加，但經銷商庫存似乎很低。我們預計目前全球汽車生產的複蘇將在短期內繼續。基於我們的展望和第三方報告，我們認為我們2020年汽車收入的年增長率將大大超過2020年全球輕型車年產量增長率。預計 2020 年第四季度汽車終端市場的收入將環比增長，因為我們預計全球汽車生產將持續復甦。

The industrial end market, which includes military, aerospace and medical, contributed revenue of $327.6 million in the third quarter. The Industrial end market represented 25% of our revenue in the third quarter. Year-over-year, our third quarter industrial declined 7%. This decline was driven by reduction in global industrial activity due to the COVID-19 pandemic and 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第三季度貢獻了 3.276 億美元的收入。工業終端市場占我們第三季度收入的 25%。與去年同期相比，我們第三季度的工業下降了 7%。這一下降是由於 COVID-19 大流行和與特定客戶相關的地緣政治問題導致全球工業活動減少所致。

In the Industrial end market, we are seeing strong adoption of our silicon carbide modules for solar power-related applications, and we are rapidly expanding our customers in the alternative energy market. On the industrial power front, we are seeing increasing design activity for motor control and building automation. Energy efficiency regulations that are slated to be enacted in 2021 and beyond are driving power management and motor control-related activity.

在工業終端市場，我們看到我們的碳化矽模塊在太陽能相關應用中得到廣泛採用，我們正在替代能源市場迅速擴大我們的客戶。在工業電源方面，我們看到電機控制和樓宇自動化的設計活動不斷增加。計劃於 2021 年及以後頒布的能效法規正在推動與電源管理和電機控制相關的活動。

Our business -- medical business grew strongly quarter-over-quarter in the third quarter as the pace of electric procedures picked up. We continue to work with leading market players to design in our image sensors for automation and machine vision applications. We have secured an additional design wins from large-format image sensors for professional movie camera applications. Revenue in the fourth quarter of 2020 for the industrial end market is expected to be up quarter-over-quarter.

我們的業務——隨著電子程序的步伐加快，第三季度醫療業務環比強勁增長。我們將繼續與領先的市場參與者合作，設計用於自動化和機器視覺應用的圖像傳感器。我們從用於專業電影攝影機應用的大畫幅圖像傳感器中獲得了額外的設計勝利。預計 2020 年第四季度工業終端市場的收入將環比增長。

The communications end market, which includes both networking and wireless, contributed revenue of $255.4 million in the third quarter and represented 19% of our revenue during the third quarter. Third quarter communications revenue declined by 7% year-over-year. We saw strong year-over-year growth in our 5G infrastructure business in the third quarter. Our smartphone business declined year-over-year in part due to geopolitical factors related to a customer. Revenue in the fourth quarter of 2020 for the Communications end market is expected to be flat or down quarter-over-quarter due to expected revenue decline from customer-specific geopolitical factors.

包括網絡和無線在內的通信終端市場在第三季度貢獻了 2.554 億美元的收入，占我們第三季度收入的 19%。第三季度通信收入同比下降 7%。第三季度，我們的 5G 基礎設施業務實現了強勁的同比增長。我們的智能手機業務同比下降，部分原因是與客戶相關的地緣政治因素。由於特定客戶的地緣政治因素導致收入預期下降，預計 2020 年第四季度通信終端市場的收入將與上一季度持平或下降。

The computing end market contributed revenue of $172.2 million in the third quarter. The computing end market represented 13% of our revenue in the third quarter. Third quarter computing revenue increased by 12% year-over-year due to strength in both server and client businesses. We are seeing strength in our server power business with increasing content and new server platforms and share gains. Most leading processor makers are projecting higher current requirements in their next-generation products. We expect this trajectory to continue in the near to midterm due to increasing demand for computational capabilities driven primarily by artificial intelligence. Revenue in the fourth quarter of 2020 for the computing end market is expected to be up quarter-over-quarter.

計算終端市場在第三季度貢獻了 1.722 億美元的收入。計算終端市場占我們第三季度收入的 13%。由於服務器和客戶端業務的實力，第三季度計算收入同比增長 12%。隨著內容的增加和新的服務器平台以及分享收益的增加，我們看到了我們的服務器電源業務的實力。大多數領先的處理器製造商都在為其下一代產品提出更高的電流要求。由於對主要由人工智能驅動的計算能力的需求不斷增加，我們預計這一軌跡將在近期至中期繼續下去。計算終端市場 2020 年第四季度的收入預計將環比增長。

The consumer end market contributed revenue of $142.9 million in the third quarter. Consumer end market represented 11% of our revenue in the third quarter. Third quarter consumer revenue declined by 9% year-over-year. Year-over-year decline was due to broad-based weakness in the consumer electronics market due to COVID-19 pandemic and our selective participation in this market. Revenue in the fourth quarter of 2020 for the consumer end market is expected to be up quarter-over-quarter.

消費者終端市場在第三季度貢獻了 1.429 億美元的收入。消費者終端市場占我們第三季度收入的 11%。第三季度消費者收入同比下降 9%。同比下降是由於 COVID-19 大流行導致消費電子市場普遍疲軟以及我們選擇性地參與該市場。預計 2020 年第四季度消費者終端市場的收入將環比增長。

In summary, we are accelerating our efforts to drive margin expansion. We are rationalizing our fixed-cost footprint. At the same time, we are also aggressively winning design to drive mix shift towards automotive, industrial and cloud power end markets, which have higher margins. Ramp-up of our 300-millimeter manufacturing processes at East Fishkill fab should further help in gross margin expansion. In the near term, strong revenue growth driven by ongoing recovery in our business should contribute to margin expansion.

總之，我們正在加快推動利潤率擴張的努力。我們正在合理化我們的固定成本足跡。與此同時，我們也在積極贏得設計，以推動向利潤率更高的汽車、工業和雲計算終端市場轉變。我們在 East Fishkill 工廠的 300 毫米製造工藝的提升應該會進一步幫助擴大毛利率。在短期內，由我們業務持續復甦推動的強勁收入增長應有助於利潤率擴張。

Business conditions have improved meaningfully, and we expect the improvement to continue in the near term. We are seeing broad-based recovery across most end markets and geographies. Key secular mega-trends and long-term drivers of our business remain intact, and we are excited about our medium- to long-term prospects. We are seeing accelerating momentum in our key strategic initiatives for electric vehicles, robotics, factory and warehouse automation, cloud power and ADAS.

商業狀況已顯著改善，我們預計這種改善將在短期內繼續。我們看到大多數終端市場和地區的廣泛復甦。我們業務的主要長期大趨勢和長期驅動因素保持不變，我們對我們的中長期前景感到興奮。我們在電動汽車、機器人、工廠和倉庫自動化、雲計算和 ADAS 等關鍵戰略計劃中看到了加速發展的勢頭。

Now I'd like to turn it back over to Bernard for forward-looking guidance. Bernard?

現在我想把它交還給伯納德以獲得前瞻性指導。伯納德?

Thank you, Keith. Based on product booking trends, backlog levels and estimated turns levels, we anticipate that whole ON Semiconductor revenue will be in the range of $1.3 billion to $1.4 billion in the fourth quarter of 2020. For fourth quarter of 2020, we expect GAAP and non-GAAP gross margin between 32.9% and 34.9%. We expect total GAAP operating expenses of $315 million to $333 million.

謝謝你，基思。根據產品預訂趨勢、積壓水平和預計周轉水平，我們預計 2020 年第四季度整個安森美半導體收入將在 13 億美元至 14 億美元之間。對於 2020 年第四季度，我們預計 GAAP 和非GAAP 毛利率在 32.9% 和 34.9% 之間。我們預計 GAAP 總運營費用為 3.15 億美元至 3.33 億美元。

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. We expect total non-GAAP operating expenses of $283 million to $297 million in the fourth quarter. The expected increase in our fourth quarter operating expenses as compared to those in the third quarter is driven by planned reinstatement of salaries and benefits that will reduce the decline in our business results, resulting from the COVID-19 pandemic.

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。我們預計第四季度非美國通用會計準則運營費用總額為 2.83 億美元至 2.97 億美元。與第三季度相比，我們第四季度運營費用的預期增長是由計劃恢復工資和福利推動的，這將減少我們的業務成果因 COVID-19 大流行而下降。

In our 2020 operating expenses, the variable component of compensation was not significant. However, as we enter into 2021, we plan to accrue meaningful variable compensation with the expectation that 2021 will be a strong year. Consequently, we expect an increase of about $25 million to $30 million quarter-over-quarter in our operating expenses in the first quarter of 2021.

在我們 2020 年的運營費用中，薪酬的可變部分並不重要。然而，隨著我們進入 2021 年，我們計劃累積有意義的可變薪酬，預計 2021 年將是強勁的一年。因此，我們預計 2021 年第一季度的運營費用將環比增加約 2500 萬美元至 3000 萬美元。

We anticipate fourth quarter of 2020 GAAP net income and expense including interest expense, will be an expense of $41 million to $44 million, which includes both noncash interest expense of $9 million to $10 million. We anticipate that both net operating -- net other income and expense, including interest expense, will be an expense of $32 million to $34 million. Net cash paid for income tax in the fourth quarter of 2020 is expected to be $22 million to $28 million. For 2020, we expect cash paid for taxes in the range of $52 million to $58 million. We expect total capital expenditures of $100 million to $120 million in the fourth quarter of 2020. We are currently targeting an overwhelming proportion of our CapEx for enabling our 300-millimeter capability at an accelerated base.

我們預計 2020 年第四季度 GAAP 淨收入和費用（包括利息費用）將為 4100 萬美元至 4400 萬美元，其中包括 900 萬美元至 1000 萬美元的非現金利息費用。我們預計淨運營——其他淨收入和支出，包括利息支出，將是 3200 萬美元到 3400 萬美元的支出。 2020 年第四季度為所得稅支付的淨現金預計為 2200 萬至 2800 萬美元。到 2020 年，我們預計支付的稅款現金在 5200 萬美元至 5800 萬美元之間。我們預計 2020 年第四季度的總資本支出將達到 1 億至 1.2 億美元。我們目前的目標是在資本支出中佔壓倒性的比例，以加速我們的 300 毫米能力。

We expect share-based compensation of $16 million to $18 million in the fourth quarter of 2020, 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 2020 年第四季度的股票薪酬為 1600 萬美元至 1800 萬美元，其中約 300 萬美元預計為銷售成本，其餘部分預計為運營費用。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 fourth quarter of 2020 is expected to be in the 425 million to 426 million shares based on our current stock price. Our non-GAAP diluted share count for the fourth quarter of 2020 is expected to be 413 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 Form 10-K, respectively.

根據我們目前的股價，我們 2020 年第四季度的 GAAP 稀釋後股票數量預計將在 4.25 億至 4.26 億股之間。根據我們目前的股價，我們 2020 年第四季度的非公認會計原則稀釋後的股票數量預計為 4.13 億股。我們的 10-Q 表格和 10-K 表格的季度報告和年度報告分別定期提供有關股票數量和每股收益計算的更多詳細信息。

With that, I would like to start the Q&A session. Thank you, and Dylan, please open up the line for questions.

有了這個，我想開始問答環節。謝謝你，迪倫，請打開電話提問。

(Operator Instructions) I show our first question comes from the line of Ross Seymore from Deutsche Bank.

（操作員說明）我表明我們的第一個問題來自德意志銀行的 Ross Seymore。

I want to focus both my questions on margins. So the first one is on the gross margin side of things. I see that you're guiding to about a 50% incremental gross margin in the fourth quarter. Given that you're not changing utilization, I understand that. But I guess, first, why aren't you changing utilization given the strength in the business? And then if we go beyond the first quarter, can you just talk about how the fab closures, the utilization increases in the 300-millimeter ramp all layer in to the gross margin because I would assume it would need to be above that 50% incremental that you've guided to historically and even in the fourth quarter.

我想把我的兩個問題都集中在利潤上。所以第一個是在毛利率方面。我看到您正在指導第四季度毛利率增加約 50%。鑑於您沒有改變利用率，我理解這一點。但我想，首先，鑑於業務的實力，你為什麼不改變利用率？然後，如果我們超過第一季度，您能否談談晶圓廠關閉、300 毫米晶圓利用率的增加如何全面影響毛利率，因為我認為它需要高於 50% 的增量你在歷史上甚至在第四季度都被引導過。

So thank you, Ross, for your question, this is Bernard. We are also intending to continue working on our inventory in the short-term goal. We don't plan on increasing our utilization substantially to keep working on that. And you're correct, as we start getting the benefits of the factory closures, we have talked about $75 million of annual savings coming from those closures or sales. The watches they're closing is on its way to being completed. And as a result, we expect to get about $15 million of that of annual savings in -- starting in the first quarter of 2021. The other 2 is a function of whether we end up -- what we end up negotiating with the intended buyers of the 2 fabs, and that's ongoing and in progress right now. So yes, the answer is, yes, we should expect to see a better than 50% fall-through as we go throughout 2020.

羅斯，謝謝你的問題，我是伯納德。我們還打算在短期目標中繼續處理我們的庫存。我們不打算大幅提高利用率來繼續努力。你是對的，當我們開始從工廠關閉中受益時，我們談到了這些關閉或銷售每年可節省 7500 萬美元。他們正在關閉的手錶即將完成。因此，我們預計從 2021 年第一季度開始，每年可節省約 1500 萬美元。另外兩個取決於我們最終與預期買家談判的結果2 家晶圓廠中的一家，目前正在進行中。所以是的，答案是，是的，我們應該期望在整個 2020 年看到超過 50% 的跌幅。

Great. And then as my follow-up question, again, sticking on the margin front, but moving to the OpEx side of things. I think everybody understands why you had variable comp down this year and why it would step up sequentially in the first quarter. But if I look at it year-over-year, it's basically flat is what you're guiding. There might have been some COVID-related impacts in the first quarter of 2020. But given the structural changes and cost cuts you guys announced earlier this year, I'm still struggling to figure out why the guide for OpEx in the first quarter of '21 would be flat year-over-year.

偉大的。然後作為我的後續問題，再次堅持邊緣前沿，但轉向運營支出方面。我想每個人都明白為什麼今年你的可變薪酬下降了，以及為什麼它會在第一季度依次上升。但是，如果我逐年查看它，您所指導的基本上是持平的。 2020 年第一季度可能會有一些與 COVID 相關的影響。但鑑於你們今年早些時候宣布的結構性變化和成本削減，我仍在努力弄清楚為什麼“第一季度運營支出指南” 21 將與去年同期持平。

So the -- as I said -- as we said in the prepared remarks, we have no variable comp in the end quarters in 2020 as well as 2019. So we're basically we did take significant cost reduction actions, some temporary and some permanent. And right now, the variable comp will be layered. Obviously that depends on the business results is next year points in the direction of being a strong year, which is what our assumptions are, then we should have a significant additional on variable comp. If obviously the year is not in that direction, then we will not.

所以 - 正如我所說 - 正如我們在準備好的評論中所說，我們在 2020 年和 2019 年的最後幾個季度沒有可變薪酬。所以我們基本上確實採取了顯著的成本削減措施，一些是臨時的，一些是永恆的。現在，變量 comp 將被分層。顯然，這取決於業務結果，明年將指向強勁的一年，這就是我們的假設，那麼我們應該在可變補償方面有一個顯著的附加值。如果顯然這一年沒有朝那個方向發展，那麼我們也不會。

I show our next question comes from the line of Chris Danely from Citigroup.

我展示了我們的下一個問題來自花旗集團的 Chris Danely。

Just a quick clarification on the gross margin. So why was it 50 basis points better than the guide? Was that all revenue upside? Or was there some mix or pricing or something else that was driving it higher?

只是對毛利率的快速澄清。那麼為什麼它比指南好 50 個基點呢？這就是所有收入的增長嗎？還是有一些組合或定價或其他推動它走高的東西？

Mostly revenue upside.

主要是收入增長。

Got it. And then any update on the CEO search?

知道了。然後關於 CEO 搜索的任何更新？

It's ongoing and there's nothing to announce at this time.

它正在進行中，目前沒有什麼要宣布的。

I show our next question comes from the line of Chris Caso from Raymond James.

我展示了我們的下一個問題來自 Raymond James 的 Chris Caso。

Just a question on inventory and what you're planning on doing with production. Could you give us a sense of where you would like both the channel inventory and your internal inventory to get to before you increased utilization? And generally, what's the reason for the more cautious approach to inventory right now?

只是一個關於庫存的問題，以及您計劃對生產做什麼。在您提高利用率之前，您能否告訴我們您希望渠道庫存和內部庫存到達哪裡？總的來說，現在對庫存採取更謹慎態度的原因是什麼？

So the inventory we have on the channel, we said in prepared remarks, we took it down 2 weeks. We are within our comfort range. So we feel good going into next year that we have been at an appropriate level for that. Internal inventories, we peaked in the second quarter at 240 days, decreased to 133 days in the third quarter, and we think there's still room to continue gradually decreasing it in 2000 -- into the fourth quarter.

所以我們在渠道上的庫存，我們在準備好的評論中說，我們把它減少了 2 週。我們在我們的舒適範圍內。因此，進入明年我們感覺很好，因為我們已經處於適當的水平。內部庫存，我們在第二季度達到頂峰，為 240 天，第三季度降至 133 天，我們認為在 2000 年（到第四季度）仍有繼續逐步減少的空間。

All right. As a follow-up on the automotive market, I guess that now you're running sort of down mid-to-high single digits year-on-year. Last quarter, you talked about anticipating that the customers would be running at full production in the second half of the year. Could you give us an update on that? Where are your customers running regarding their own production? And I guess with that, what's the gap between -- if the customers are kind of getting back to normal and you're still down year-on-year, what's the delta there? And what you kind of get you back to flat year-on-year and eventually growth?

好的。作為汽車市場的後續行動，我想現在你的運行速度同比下降了中高個位數。上個季度，您談到預計客戶將在下半年全面投入生產。你能告訴我們最新情況嗎？您的客戶在哪裡生產自己的產品？我猜想，如果客戶恢復正常而您仍然同比下降，那麼兩者之間的差距是什麼？那裡的增量是多少？你是什麼讓你恢復到同比持平並最終增長？

Yes. So we believe that the auto customers will be largely running at pre-COVID levels here in the fourth quarter. And really, the only difference, if there's any, would be change in inventory in the supply chain. There was definitely some caution in the supply chain that COVID-19 went in. And I would expect that in '21, it would start replenishing even above auto rates.

是的。因此，我們相信汽車客戶在第四季度將主要以 COVID 之前的水平運行。實際上，唯一的區別（如果有的話）將是供應鏈中庫存的變化。 COVID-19 進入供應鏈中肯定有一些謹慎。我預計在 21 年，它會開始補充甚至高於汽車費率。

I show our next question comes from the line of Raji Gill from Needham & Company.

我展示了我們的下一個問題來自 Needham & Company 的 Raji Gill。

Yes. And congrats as well on solid results. Regarding the momentum in the automotive business, you talked about outgrowing auto production by a wide margin. Obviously we're going to see a rebound in auto production post-COVID but on top of that, what's driving the wide margin commentary, specifically in sensors and EV? Any color there would be helpful in terms of how much semiconductor content you're going to layer on top of that rebound production.

是的。並祝賀你取得了不錯的成績。關於汽車業務的發展勢頭，您談到了汽車產量的大幅增長。顯然，我們將看到 COVID 後汽車生產的反彈，但最重要的是，是什麼推動了廣泛的評論，特別是在傳感器和電動汽車方面？那裡的任何顏色都會有助於您在反彈生產之上添加多少半導體內容。

Yes. So I think on the 2 topics, from an ADAS perspective, we're seeing a significant amount of the production move to Level 2, which has quite a bit more dollar content. Kind of goes from $10 at Level 1 to $150 at Level 2. So we're seeing that transition would drive very significant growth above the SARS rate. And then on the electric vehicles, there will be more electric vehicles still dominated by internal combustion, but nonetheless, more vehicles. And again, the content there goes from $40, $50 up to $500. So those -- if you look at both of those things, there are an order of a magnitude change, and so as a result of that, we would expect very significant outgrowing.

是的。所以我認為從 ADAS 的角度來看，在這 2 個主題上，我們看到大量生產轉移到了 2 級，其中包含更多的美元內容。從 1 級的 10 美元到 2 級的 150 美元。所以我們看到這種轉變將推動非常顯著的增長，高於 SARS 的速度。然後在電動汽車上，將會有更多的電動汽車仍然以內燃機為主，但仍然會有更多的汽車。再一次，那裡的內容從 40 美元、50 美元到 500 美元不等。所以那些——如果你看這兩件事，就會有一個數量級的變化，因此，我們預計會有非常顯著的增長。

And just for my follow-up, I know you can't provide more guidance. But if we're looking at gross margin trajectory, if you look at the margins in 2019, they were kind at 36% for the year-end. Obviously it took a big dip in the first half of this year because of COVID, but you're kind of moving back. So how do we think about the margins in 2021, getting back to kind of normal -- mid, more normalized levels what we saw in 2019 and then kind of moving beyond that. Is it really going to be a function of the revenue? I know you talked about the closure of that at -- to sell that fab. But should we be expecting to get back to kind of 2019 levels and beyond as we progress into 2021?

只是為了我的跟進，我知道你不能提供更多的指導。但是，如果我們看一下毛利率軌跡，如果你看一下 2019 年的利潤率，到年底的利潤率為 36%。顯然，由於 COVID，今年上半年它出現了大幅下滑，但你有點退縮了。那麼，我們如何看待 2021 年的利潤率，恢復到我們在 2019 年看到的中等水平、更正常化的水平，然後再超越這個水平。它真的會成為收入的函數嗎？我知道你談到了關閉那家工廠——出售那家工廠。但是，隨著我們進入 2021 年，我們是否應該期待回到 2019 年甚至更高的水平？

Depends on a lot of factors, but the same premises that we have put forth in the past, we do expect the 50% fall-through on just a pure revenue change and except a 2021 will be a good year in terms of revenue. We will layer on top of that mix savings with the premise that our revenue growth in automotive and industrial and cloud power, which only has better than corporate average gross margin will contribute to tailwinds to gross margin.

取決於很多因素，但在我們過去提出的相同前提下，我們確實預計 50% 的下降只是純粹的收入變化，除了 2021 年將是收入的好年頭。我們將在這種混合儲蓄的基礎上進行分層，前提是我們在汽車、工業和雲計算領域的收入增長，其毛利率僅高於企業平均毛利率，這將有助於毛利率的順風。

And as mentioned earlier in response to another call -- question, we do expect to get the savings from the factory sale or closures that we have announced previously. And last but not least, we do still have some lingering COVID costs in our numbers. We expect that most of those will take a while until that you get those to mainly logistics and freight costs. As the pressures on that eases out, we should also get a little bit of tailwinds in addition to what I just mentioned earlier.

正如前面在回應另一個電話時提到的——問題，我們確實希望從我們之前宣布的工廠銷售或關閉中獲得節省。最後但並非最不重要的一點是，我們的數據中仍然存在一些揮之不去的 COVID 成本。我們預計其中大部分將需要一段時間，直到您主要支付物流和貨運成本。隨著這方面的壓力減輕，除了我剛才提到的之外，我們還應該得到一點順風。

I show our next question comes from the line of Vijay Rakesh from Mizuho.

我展示了我們的下一個問題來自瑞穗的 Vijay Rakesh。

Just a couple of questions here. On the distri side, I know you talked about September quarter, this inventory coming down 2 weeks. Typically, 4Q inventories go down in the channel. Just wondering what you're seeing in terms of distributor inventories exiting 4Q versus where normal levels are?

這裡只是幾個問題。在分銷方面，我知道您談到了 9 月季度，該庫存下降了 2 週。通常，4Q 庫存在渠道中下降。只是想知道您在退出第四季度的分銷商庫存與正常水平之間看到了什麼？

I'm not sure I got all of that question, audio issues on our side. But we brought the [disti] inventory down in the third quarter to kind of the low end of our normal operating ranges. So we're not looking to take it down substantially from there, but kind of hold it toward that lower end. We think this does give us more flexibility, particularly if the market is more robust than we're seeing right now. So that's the plan. Did that get your question, Vijay?

我不確定我是否得到了所有這些問題，我們這邊的音頻問題。但我們在第三季度將 [disti] 庫存降至正常運營範圍的低端。因此，我們不打算從那里大幅降低它，而是將其保持在較低端。我們認為這確實給了我們更大的靈活性，特別是如果市場比我們現在看到的更強勁的話。所以這就是計劃。你的問題得到了嗎，維杰？

Yes, it does. And one other question here. On the gross margin side, obviously there are some near-term costs -- logistics, COVID logistics costs and operational costs. Just wondering what headwind from those are? And do you see those subside as you go into first half next year?

是的，它確實。還有另一個問題。在毛利率方面，顯然存在一些近期成本——物流、COVID 物流成本和運營成本。只是想知道那些是什麼逆風？當你進入明年上半年時，你是否看到這些消退？

Yes. Definitely much less than what we had in the first and second quarter. The lingering costs are more logistics. It will normalize when we see airlines flying again. So that's mostly commercial. So that's a big question mark. So probably, it's going to be more protracted but it's much less than what we had seen in the first half of the year. So it's just some lingering headwind, not significant.

是的。絕對比我們第一季度和第二季度的要少得多。揮之不去的成本是更多的物流。當我們看到航空公司再次飛行時，它會正常化。所以這主要是商業性的。所以這是一個很大的問號。所以很可能，它會更持久，但它比我們在今年上半年看到的要少得多。所以這只是一些揮之不去的逆風，並不重要。

I show our next question comes from the line of Christopher Rolland from Susquehanna.

我展示了我們的下一個問題來自 Susquehanna 的 Christopher Rolland。

I guess, first, following up on the automotive side of things and silicon carbide. Can you talk about the pipeline there after your win on silicone carbide? And then also, how we should think about IGBTs and your position there?

我想，首先，跟進汽車方面的事情和碳化矽。你能談談你在碳化矽上獲勝後那裡的管道嗎？然後，我們應該如何看待 IGBT 以及您在其中的地位？

So we continue to see wins for both IGBT and silicon carbide. It's maybe oversimplified, but in the lower lifetime or smaller cars, the IGBT is still the dominant solution. In the more powerful cars, designed with much longer range, silicon carbide is becoming the predominant solution. So we have wins at many different Tier 1s and OEMs at this stage for both IGBTs and silicon carbide.

因此，我們繼續看到 IGBT 和碳化矽的勝利。它可能過於簡單，但在壽命較短或較小的汽車中，IGBT 仍然是主要的解決方案。在功率更大、續航里程更遠的汽車中，碳化矽正成為主要的解決方案。因此，在這個階段，我們在許多不同的一級供應商和原始設備製造商中贏得了 IGBT 和碳化矽的勝利。

Great. And I was wondering if you could give us an update on your footprint consolidation. I guess, any update on Belgium and any other updates in terms of targets or potential opportunities?

偉大的。我想知道您是否可以向我們提供有關您的足跡整合的最新信息。我想，關於比利時的任何更新以及在目標或潛在機會方面的任何其他更新？

In Belgium, we are having what I would call the final round of negotiations right now and expect that we, during the quarter, we'll be able to find solutions there. In Niigata, there's still a process ongoing, and it will probably eat into the new year.

在比利時，我們現在正在進行我所說的最後一輪談判，並期望我們在本季度能夠在那裡找到解決方案。在新潟，還有一個過程正在進行中，它可能會吃到新的一年。

Our next question comes from the line of Craig Ellis from B. Riley Securities.

我們的下一個問題來自 B. Riley Securities 的 Craig Ellis。

And I'll just ask a couple of follow-ups. First on, on gross margin. So it's clear that it's hard to handicap the exact timing of a fab sale. But gentlemen, I'm wondering if you can just help us scope the amount of the $75 million in COGS efficiency gains that you'd expect to get in calendar '21, not by quarter, but just overall, how much of that could be realized in '21? And then how much would come through in calendar '22?

我只想問幾個後續問題。首先，毛利率。所以很明顯，很難影響晶圓廠銷售的確切時間。但是先生們，我想知道您是否可以幫助我們確定您希望在 21 年日曆中獲得的 7500 萬美元的 COGS 效率收益的金額，而不是按季度，而是總體而言，其中有多少可能是21 年實現？然後在 '22 日曆中會通過多少？

It's a tough question, Craig. Definitely, we can talk about the Rochester one, which is the first $50 million that will start immediately in Q1. The other is still a function of what we end up negotiating with the buying parties in terms of MSA that will drive what those savings are. Typically the closure of a fab takes somewhere in the 18 to 24 months. And obviously we have been already working on it.

這是一個棘手的問題，克雷格。當然，我們可以談論羅切斯特的，這是第一季度將立即啟動的第一個 5000 萬美元。另一個仍然是我們最終與購買方就 MSA 進行談判的功能，這將推動這些節省。通常，工廠的關閉需要 18 到 24 個月的時間。顯然我們已經在努力了。

Got it. And then if I could just bundle 2 follow-ups together, Bernard. The first is to Ross' question, beyond the first quarter, which not only would include discretionary comp, but also things like FICA, what should we expect from 2Q through 4Q? Do you actually get some OpEx decreases in the back half of the year as FICA goes away? And then with the debt paydown in the fourth quarter, the convert, what should we expect for interest expense in the first calendar quarter?

知道了。然後，如果我可以將 2 個後續行動捆綁在一起，伯納德。首先是羅斯的問題，除了第一季度之外，這不僅包括可自由支配的薪酬，還包括 FICA 之類的東西，我們應該從 2Q 到 4Q 期待什麼？隨著 FICA 的取消，您是否真的在下半年獲得了一些 OpEx 的減少？然後隨著第四季度的債務償還，轉換，我們對第一季度的利息支出有何預期？

Let me start from the last question first. Interest expense, we tend to continue paying down debt as we generate a good amount of free cash flow yet next year so it's just a function of how much that debt is paid down. Definitely, the paydown of the $690 million will be a little bit of interest away. So I expect the trend of interest expense to go down over time. And the OpEx trend, we expect this step function improvement will increase in OpEx in the first quarter and indeed, you're correct. In addition to that, there is within that assumption, a timing or seasonality of FICA and other U.S.-based payable expenses so I don't expect that the expenses will go up materially for the rest of the year -- may trend mostly flat.

讓我先從最後一個問題開始。利息費用，我們傾向於繼續償還債務，因為我們明年會產生大量的自由現金流，所以這只是償還債務的一個函數。毫無疑問，這 6.9 億美元的還款額將稍微有點利息。所以我預計利息支出的趨勢會隨著時間的推移而下降。而 OpEx 趨勢，我們預計第一季度 OpEx 的這種階梯函數改進將增加，事實上，你是對的。除此之外，在該假設範圍內，FICA 和其他基於美國的應付費用的時間或季節性，因此我預計今年剩餘時間的費用不會大幅增加——可能基本持平。

Next question comes from the line of Matt Ramsay from Cowen.

下一個問題來自 Cowen 的 Matt Ramsay。

This is Josh Buchalter on behalf of Matt Ramsey. Congrats on the results, and Keith, congratulations on your retirement. I guess, I wanted to start on the last call, you mentioned you weren't expecting to see any underutilization charges in the second half. Can you confirm that this is still the case, given you're keeping utilizations flat and inventory, it sounds like are going to trend downwards?

這是代表馬特拉姆齊的喬什布查爾特。祝賀結果，基思，祝賀你退休。我想，我想從最後一個電話開始，你提到你不希望在下半年看到任何未充分利用的費用。您能否確認情況仍然如此，鑑於您保持利用率持平和庫存，聽起來會呈下降趨勢？

Yes. Obviously with the disclaimer that we don't control what governments do. So at this stage, we don't expect there is no mandated shelter-in-place mandates from government. So if that continues, which we expect it to, we will not see any additional COVID-related period expenses. Why don't you...

是的。顯然，我們不控制政府做什麼的免責聲明。因此，在現階段，我們預計政府不會強制要求就地避難。因此，如果這種情況繼續下去，我們預計會這樣，我們將不會看到任何額外的與 COVID 相關的期間費用。你為什麼不...

Sure. Understood. Okay. And then I guess a bigger picture question. When you made the plans to invest in the 300-millimeter fab, it was obviously a very different environment. I'm just wondering if any of your strategic assumptions or plans changed for the new environment of porting volumes through this fab, since the deal was announced and congrats again.

當然。明白了。好的。然後我猜一個更大的問題。當您計劃投資 300 毫米晶圓廠時，顯然是一個非常不同的環境。我只是想知道你的任何戰略假設或計劃是否改變了通過這個晶圓廠進行批量移植的新環境，因為這筆交易已經宣布並再次恭喜。

No. We continue to be decided about that addition to our network. And so from that perspective, we continue to get qualifications of products, processes and customers from there and continue to enjoy the ramp that we envision. The only change I would get is maybe a little more acceleration on closure of some of the other factories has been brought about by the overall lower environment that COVID brought.

不會。我們將繼續決定是否將其添加到我們的網絡中。因此，從這個角度來看，我們繼續從那裡獲得產品、流程和客戶的資格，並繼續享受我們設想的坡道。我唯一能得到的改變可能是，由於 COVID 帶來的整體較低的環境，其他一些工廠的關閉速度可能會加快一點。

I show our next question comes from the line of Toshiya Hari from Goldman Sachs.

我展示了我們的下一個問題來自高盛的 Toshiya Hari。

I had 2 as well. First of all, you guys talked about geopolitical factors having impact on your business in Q3, and I believe in your Q4 guidance as well. If you could confirm how meaningful the headwinds were associated with geopolitical factors in Q3 and what's embedded in your Q4 guidance, that would be helpful.

我也有2個。首先，你們談到了地緣政治因素對你們第三季度業務的影響，我也相信你們第四季度的指導。如果您能確認第三季度逆風與地緣政治因素的關聯程度以及第四季度指南中包含的內容，那將很有幫助。

In Q3, there certainly was an impact, but primarily in Q4 until licenses are granted, the answer is there's no business at all, and they were one of the top customers.

在第三季度，肯定會產生影響，但主要是在第四季度，直到獲得許可證為止，答案是根本沒有業務，他們是最大的客戶之一。

Got it. And then as a quick follow-up, I wanted to double-click on gross margins as well. In the past, you guys have talked to a 40% plus long-term target for gross margins. I guess, A, is that still the case? Is that still very much intact; and B, to the extent it is, I was hoping you could rank order the drivers that get you there. I think throughout this call, you talked about obviously Rochester, which is done. You got to Belgium, you're rationalizing or optimizing your portfolio, you've got the 300-millimeter transition. And obviously you've got the COVID costs, which hopefully go away over time. So if you can rank order some of the drivers as you think about gross margin expansion over the next couple of years, that would be helpful.

知道了。然後作為快速跟進，我還想雙擊毛利率。過去，你們談到了 40% 以上的毛利率長期目標。我猜，A，還是這樣嗎？那仍然完好無損嗎？和 B，在某種程度上，我希望你能對讓你到達那裡的司機進行排名。我認為在整個電話會議中，您顯然談到了羅切斯特，這已經完成。你到了比利時，你正在合理化或優化你的投資組合，你已經完成了 300 毫米的過渡。顯然，您已經獲得了 COVID 成本，希望隨著時間的推移而消失。因此，如果您可以在考慮未來幾年的毛利率擴張時對一些驅動因素進行排序，那將很有幫助。

Pretty much summarized them very well for us. Thank you. Definitely, when we did our model, which actually was 43% is predicated on a $7.1 billion revenue, we believe that, that still holds true. So we do have a good amount of catch-up from the current levels of 5.15 due to that level, with the fact that we have a good fall-through on that. Actually, that still holds true. The footprint consolidation as well as the benefits of the 300 millimeter in the out years will also be a significant factor, and mix as a third one is the one that will help us get there.

幾乎為我們很好地總結了它們。謝謝你。毫無疑問，當我們製作模型時，實際上 43% 是基於 71 億美元的收入，我們相信這仍然適用。因此，由於該水平，我們確實從當前的 5.15 水平有很大的追趕，事實上我們對此有很好的回落。實際上，這仍然成立。足跡整合以及 300 毫米在未來幾年的優勢也將是一個重要因素，而混合作為第三個因素將幫助我們實現這一目標。

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

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

Congratulations first of all. 2 questions. First of all, would you be able to give us some color on particularly the automotive and the industrial markets? I know you said those should be up, but maybe help us think about how we should think about modeling them. And then another part of that same question, you talked about distribution inventory in auto. How many weeks excess do you think, if at all, there is in the system, particularly in auto?

首先恭喜。 2個問題。首先，您能給我們介紹一下汽車和工業市場嗎？我知道你說過那些應該是的，但也許可以幫助我們思考我們應該如何考慮對它們進行建模。然後是同一個問題的另一部分，您談到了汽車中的分銷庫存。如果有的話，你認為系統中有多少週，特別是在汽車方面？

Okay. I'll start with auto. I believe that the distribution and entire supply chain there, there is no excess going into fourth quarter. I think that's largely been taken care of. In fact, if anything, may have undershot and set us up for next year having to do replenishment. So that market, the supply chain, there is lean at this stage and I don't know any pockets of fatness.

好的。我將從汽車開始。我相信那裡的分銷和整個供應鏈，進入第四季度沒有多餘的。我認為這在很大程度上得到了照顧。事實上，如果有的話，可能已經低於並讓我們為明年不得不做補貨做好了準備。所以那個市場，供應鏈，在這個階段是瘦的，我不知道有任何肥胖的口袋。

As I mentioned earlier, we expect auto production rates in Q4 to be largely back to where they were in 2019. So again, by quarter-over-quarter, that is still an improvement from Q3. From an industrial perspective, we're seeing recovery there. We think, again, largely, the excess supply is a channel, but there's no rebuilding that we can see so moderate recovery on industrial.

正如我之前提到的，我們預計第四季度的汽車生產率將在很大程度上回到 2019 年的水平。因此，按季度來看，這仍然比第三季度有所改善。從工業的角度來看，我們看到那裡正在復蘇。我們再次認為，供應過剩在很大程度上是一個渠道，但沒有任何重建可以讓我們看到工業如此溫和的複蘇。

Understood. And then your closure of fabs, you mentioned you cited 3, I think, in total. Maybe help us understand where is this production going to? Is it going to Fishkill?

明白了。然後你關閉了晶圓廠，你提到你總共引用了 3 個。也許能幫助我們了解這部作品的去向？會去菲什基爾嗎？

And on a scale of 1 to 10, if you say, prior to you getting control of Fishkill, if 10 is kind of like where you want to be, where do you think you are at this point in time?

在 1 到 10 的範圍內，如果你說，在你控制 Fishkill 之前，如果 10 有點像你想去的地方，你認為你現在在哪裡？

So most of the production in those 2 particular factories are going into our other internal fabs. And what we're doing is taking selective high-volume runners out of the other internal fabs and moving into East Fishkill. So a little bit of a 2-step process to get into the fab. And relative to -- 10 is full ownership and full running, we are at this stage down around 2. We're just starting our ramp in manufacturing there in the third quarter and ramping from there.

因此，這兩家特定工廠的大部分產品都進入了我們的其他內部晶圓廠。我們正在做的是將選擇性的大批量生產者從其他內部晶圓廠中挑選出來，並搬到東菲什基爾。所以進入晶圓廠需要一個兩步的過程。相對於 - 10 是完全所有權和全面運行，我們在這個階段下降了大約 2。我們剛剛在第三季度開始在那裡進行製造，並從那裡開始。

I show our next question comes from the line of Mark Lipacis from Jefferies.

我展示了我們的下一個問題來自 Jefferies 的 Mark Lipacis。

I had a question about the process of shutting down or selling a factory. When you're transferring parts from your old facilities to your new facilities, can you describe what the qualification process is like? How long does that take? Or is it a matter of practice for you that parts that you have primarily make it one factory, also are always qualifying them at other factories just for redundancy sake, and that's not a big deal to requalify parts? That's the first question. I have a follow-up.

我有一個關於關閉或出售工廠的過程的問題。當您將零件從舊設施轉移到新設施時，您能描述一下認證過程嗎？這需要多長時間？或者對您而言，您主要將其作為一個工廠的零件，為了冗餘而總是在其他工廠對它們進行資格認證，這對您來說是一個實踐問題，而重新認證零件並不是什麼大問題？這是第一個問題。我有後續行動。

Great. So for the first one, most of our high-volume processes have more than one factory to run in just from a supply chain risk perspective. For those products, in essence, take these specific products that you're running that may not be in the alternate factory. You have to run some reliability tests, and you have to run those by your customers. And for those processes, it's anywhere from 180 days to a year. For other processes that don't have as much volume, you do have to first bring up the process in the new factory. That can take anywhere from 9 months to a year, then you have to run the same qualifications.

偉大的。因此，對於第一個，僅從供應鏈風險的角度來看，我們的大多數大批量流程都有不止一個工廠要運行。對於這些產品，本質上，採用您正在運行的這些特定產品，這些產品可能不在替代工廠中。您必須運行一些可靠性測試，並且您必須由您的客戶運行這些測試。對於這些流程，它需要 180 天到一年。對於其他數量不多的流程，您必須首先在新工廠中啟動該流程。這可能需要 9 個月到一年的時間，然後你必須獲得相同的資格。

So that gets you kind of out in the 2-year range for that. We had started moving things for the factories that we're talking about here before we announced those transactions. And so we're well into that second phase now of getting the customers qualified. By the selling of the factories in our customer agreements, there will be some amount of time required where we'll still take product from those factories, but you're now down into that kind of 18-month or so range.

所以這會讓你在 2 年的範圍內有所收穫。在我們宣布這些交易之前，我們已經開始為我們在這裡談論的工廠轉移東西。所以我們現在已經進入了讓客戶合格的第二階段。通過在我們的客戶協議中出售工廠，我們仍將需要一些時間才能從這些工廠獲取產品，但您現在已降至 18 個月左右的範圍。

Got you. That's very helpful. And longer term, Keith, can you -- as you work your way to your gross margin bogey, does your -- do you think that translates to a higher internal mix or higher outsourced foundry mix on the front end -- at the end?

得到你。這很有幫助。從長遠來看，Keith，你能否——當你努力達到你的毛利率目標時，你是否認為這最終會轉化為更高的內部組合或更高的前端外包代工組合？

Yes. The front end part will become more external, but that's less to do with consolidation and more to do with some of our fastest-growing products use nodes that we use foundries for.

是的。前端部分將變得更加外部化，但這與整合的關係不大，更多的是與我們使用代工廠的一些增長最快的產品使用節點有關。

Our next question comes from the line of Harlan Sur from JPMorgan.

我們的下一個問題來自摩根大通的 Harlan Sur。

Has the East Fishkill fab been auto grade-qualified? And if not, when you guys expect to achieve qualification? And then in terms of revenues today from Fishkill, what products and end markets are you shipping into?

東菲什基爾工廠是否通過了汽車級認證？如果沒有，你們什麼時候希望獲得資格？然後就目前 Fishkill 的收入而言，您向哪些產品和終端市場發貨？

So today, we're shipping primarily into industrial with some automotive content out of EFK, so we are qualified for both.

所以今天，我們主要向工業領域運送一些來自 EFK 的汽車內容，因此我們有資格滿足這兩種需求。

Great. And then, Keith, with 13- to 15-week lead times on average, you guys are booking into the March quarter. You also have a good view on customer forecast as well. I believe normal seasonality for the team is flat to down a couple of percentage points in March. You talked about above seasonal demand trends near term. Wondering if you're seeing this in the orders for the March quarter?

偉大的。然後，基思，平均交貨時間為 13 到 15 週，你們將預訂到 3 月季度。您還可以很好地了解客戶預測。我相信團隊的正常季節性在 3 月份持平甚至下降了幾個百分點。您談到了近期的季節性需求趨勢。想知道您是否在 3 月季度的訂單中看到了這一點？

Yes. Orders are good. And the comments we've made on above-market seasonality will extend the past this year.

是的。訂單很好。我們對高於市場季節性的評論將延續到今年。

Our next question comes from the line of John Pitzer from Crédit Suisse.

我們的下一個問題來自瑞士信貸的 John Pitzer。

Keith, maybe just a follow-on there to Harlan's second question. When you think about the calendar first quarter, is there enough leverage above seasonal revenue growth and gross margin leverage that you can have up margins be flattish despite the increase in OpEx? And if that's not the case, why isn't variable comp more tied to profitability? Why not wait until later on in '21 to reestablish some of the variable comp?

基思，也許只是哈倫第二個問題的後續。當您考慮日曆第一季度時，是否有足夠的槓桿超過季節性收入增長和毛利率槓桿，即使運營支出增加，您的利潤率也可以持平？如果不是這樣，為什麼可變薪酬不與盈利能力更相關？為什麼不等到 21 年晚些時候重新建立一些變量 comp？

So we really don't want to give guidance for Q1. We do it one quarter at a time. What I will tell you is, certainly, we would expect revenues to continue to increase nicely throughout next year. And the way accounting works, you have to accrue for the entire year at the expected rate for the year, even though you may have a quarter somewhere in there that doesn't fully meet the objectives.

所以我們真的不想為第一季度提供指導。我們一次做一個季度。我要告訴你的是，當然，我們預計明年的收入將繼續良好增長。會計工作的方式是，你必須以當年的預期比率累計全年，即使你可能有一個季度沒有完全達到目標。

That's helpful. And then back to the auto side. When you look calendar year '17 to '18, SARs was down a little bit in '18, but you guys significantly outgrew the market almost by on a 10 percentage points. I'm just kind of curious, given how weak the auto sector has been for you and the overall semi market since really the end of calendar year '18, '19 was down, '20 is going to end up being down. How are you viewing your outgrowth to SARS as we go on into calendar year '21? And do you have kind of a view you can give us on what you think SARs growth will be next year?

這很有幫助。然後回到汽車方面。當您查看 17 到 18 日曆年時，SAR 在 18 年略有下降，但你們的增長幅度幾乎超過了市場 10 個百分點。我只是有點好奇，考慮到自 18 年年底以來汽車行業和整個半成品市場的疲軟程度，'19 年下跌，'20 年最終會下跌。隨著我們進入 '21 日曆年，您如何看待您對 SARS 的影響？對於明年 SAR 的增長情況，您有什麼看法可以告訴我們嗎？

So the answer is, yes, we got actually wide margins. As I mentioned in my comments, very significant with the drivers being more level 2 cars on ADAS and a higher percentage of EV. From a SARs perspective, we tend to try and be conservative on that and look for kind of 2019 levels next year on a SARs basis. But again, we think we have been outperforming the overall SARs. In 2020, we think the supply chain did lean out, which took some of that margin away. But in 2021, as I mentioned earlier, we think there may have to be some restocking to hit people levels as appropriate.

所以答案是，是的，我們實際上得到了很大的利潤。正如我在評論中提到的那樣，駕駛者在 ADAS 上更多的是 2 級汽車，並且電動汽車的比例更高，這一點非常重要。從 SAR 的角度來看，我們傾向於在這方面保持保守，並在 SAR 的基礎上尋找明年的 2019 年水平。但同樣，我們認為我們的表現優於整體 SAR。到 2020 年，我們認為供應鏈確實出現了傾斜，這剝奪了部分利潤。但是，正如我之前提到的，在 2021 年，我們認為可能需要進行一些補充庫存才能適當地達到人員水平。

So Keith, if in '18, you outgrew SARs by 10 percentage points, do you think '21 is setting up to be an '18 [FT] year for you?

所以基思，如果在 18 年，你的增長率超過了 SAR 10 個百分點，你認為 21 年對你來說是 18 年嗎？

I think the opportunity for double-digit outperformance is there.

我認為出現兩位數的優異表現的機會就在那裡。

I show our next question comes from the line of Kevin Cassidy from Rosenblatt Securities.

我表明我們的下一個問題來自 Rosenblatt Securities 的 Kevin Cassidy。

Just going back to factory utilization. Is there any more efficiency coming in? Can you get higher gross margin at the same utilization, say, compared to a couple of years ago?

只是回到工廠利用率。有沒有更多的效率進來？例如，與幾年前相比，您能否在相同的利用率下獲得更高的毛利率？

There is some help that comes from mix as we have talked about. But definitely, we depend on a lot on our revenue increases. The...

正如我們所談到的，mix 有一些幫助。但可以肯定的是，我們在很大程度上依賴於我們的收入增長。這...

I would just add that as we're looking forward, the other traditional lever is pricing. And of course, '19 was not necessarily a good year, but as we're seeing -- or '20, excuse me, is not a good year, but '21 is shaping up to be a little better pricing environment.

我只想補充一點，正如我們所期待的那樣，另一個傳統的槓桿是定價。當然，19 年不一定是好年頭，但正如我們所見——或者 20 年，對不起，不是好年頭，但 21 年正在形成一個更好的定價環境。

Okay. Great. And just one follow-up kind of on the qualification process. You can have your internal qualifications, but does your customers -- has there been any change in the qualification process relative to the customers? Do they just agree with your data from your manufacturing? Or do they want to test the parts, too?

好的。偉大的。只有一種關於資格認證過程的後續行動。你可以有你的內部資格，但是你的客戶——相對於客戶的資格過程是否有任何變化？他們只是同意您的製造數據嗎？還是他們也想測試零件？

Most of them agree with our reliability data. They don't need to duplicate that. But they do need to verify the products are still functioning exactly the same way in their applications. So that takes them -- that's part of the 6-month kind of check that they've got to do on their side.

他們中的大多數人都同意我們的可靠性數據。他們不需要復制它。但他們確實需要驗證產品在其應用程序中的運行方式是否完全相同。所以這需要他們 - 這是他們必須在他們身邊進行的 6 個月檢查的一部分。

I show our next question comes from the line of David O'Connor from Exane BNP Paribas.

我展示了我們的下一個問題來自 Exane BNP Paribas 的 David O'Connor 的話。

Maybe to go back on the 10-point outperformance, Keith, that you mentioned. You talked about ADAS and EP being the main contributors. As we exit 2020, can you give us a sense of how big these are now for the business? And I have a follow-up.

也許回到你提到的 10 分的優異表現，基思。您談到 ADAS 和 EP 是主要貢獻者。在我們退出 2020 年之際，您能否讓我們了解一下這些對企業的影響有多大？我有一個後續行動。

So sensors, the ADAS center is about 20% of our total automotive. The electric piece is always smaller, but -- and we haven't disclosed on what it is, but we know it's going to ramp-up at a very strong and fast pace in '21 and beyond.

所以傳感器，ADAS 中心約占我們汽車總量的 20%。電動部分總是更小，但是——我們還沒有透露它是什麼，但我們知道它會在 21 年及以後以非常強勁和快速的速度增長。

That's helpful. And then maybe as my follow-up, on the 300-millimeter is East Fishkill fab, you talked about the spectacular yields there. Which are those high-volume products where you're seeing these yields? And is there an opportunity to pull in the ramp-up there given you seem to be ahead of schedule?

這很有幫助。然後也許作為我的後續行動，在 300 毫米的東菲什基爾工廠，你談到了那裡的驚人產量。哪些是您看到這些產量的大批量產品？鑑於您似乎提前了，是否有機會在那裡進行加速？

Yes. So our first products to ramp there are medium voltage MOSFETs and then followed by IGBTs and we are ramping that pretty much at the pace our customers are qualifying at this date.

是的。因此，我們的第一批產品是中壓 MOSFET，然後是 IGBT，我們正在以我們的客戶目前符合條件的速度進行爬坡。

I show our next question comes from the line of Tristan Gerra from Baird.

我展示了我們的下一個問題來自 Baird 的 Tristan Gerra。

Given the lead times sort of still somewhat elevated in parts of your business, at least, industry-wide. And given your utilization rates below normal level, are there opportunities for you to gain actually market share because your utilization rates being below will actually be an opportunity to other ship in areas where some of your competitors may be tight? Or am I not looking at this the correct way?

鑑於在您的部分業務中，至少在整個行業範圍內，交貨時間仍然有所延長。鑑於您的利用率低於正常水平，您是否有機會獲得實際的市場份額，因為您的利用率低於實際將是在您的一些競爭對手可能緊張的地區其他船舶的機會？還是我沒有以正確的方式看待這個？

No. I think we do have some upside opportunities with extra capacity in the factories. We're actually -- the inventory positions we're taking are really ensuring that, that excess capacity can go directly to the customers that may have opportunity to grow a little faster. And I mentioned earlier, the ADAS and the EV side of it, particularly those, we think, may be due for some additional inventory in the channel.

不，我認為我們確實有一些上行機會，因為工廠有額外的產能。實際上，我們正在採取的庫存頭寸確實確保了過剩產能可以直接流向可能有機會更快增長的客戶。我之前提到過，ADAS 和它的 EV 方面，特別是那些，我們認為，可能是由於渠道中的一些額外庫存。

Okay. Great. And then just a quick follow-up. I know you haven't quantified the dilution from Quantenna. Is it fair to assume that it's now worse than the initial dilution that the business was incurring wide after the close? And are you giving any consideration to taking additional action on that business besides just waiting for the new product to ramp?

好的。偉大的。然後只是快速跟進。我知道你還沒有量化 Quantenna 的稀釋度。可以公平地假設它現在比收盤後業務發生的最初稀釋更糟糕嗎？除了等待新產品上市之外，您是否考慮過對該業務採取額外行動？

So there's not been appreciable decline in that business, if that's where you're headed. So I'm not sure where that came from. So we're not seeing additional declines, and we are seeing the backlog and design pipeline picking up. So...

因此，如果那是您前進的方向，那麼該業務並沒有明顯下降。所以我不確定那是從哪裡來的。所以我們沒有看到額外的下降，我們看到積壓和設計管道正在增加。所以...

I show our next question comes from the line of Vivek Arya from Bank of America.

我展示了我們的下一個問題來自美國銀行的 Vivek Arya。

Keith, I had a conceptual question on gross margins. When I look at gross margins in the power discrete industry, they tend to be, at best, around high 30s percent, even for the largest companies in the space such as Infineon, who have been running 300-millimeter fabs for quite some time. And when I look at ON's history, gross margins have never really exceeded 38%, 39%. And even then, quarterly revenues were much higher and current levels.

基思，我有一個關於毛利率的概念性問題。當我查看功率分立器件行業的毛利率時，它們往往最多只有 30% 左右，即使對於該領域最大的公司，如英飛凌，它們已經運營 300 毫米晶圓廠已有一段時間了。當我回顧 ON 的歷史時，毛利率從未真正超過 38%、39%。即便如此，季度收入也要高得多，達到目前的水平。

So how much of the gross margin dynamics are just the result of selling certain kinds of products, which says that there is a limit to how much you can expand gross margin regardless of revenue levels or fab closures or 300-millimeter capability? So I just wanted to run this hypothesis by you.

那麼，有多少毛利率動態僅僅是銷售某些類型產品的結果，也就是說，無論收入水平、關閉工廠或 300 毫米產能如何，您可以擴大多少毛利率是有限度的？所以我只是想通過你來運行這個假設。

So simple answer there is when we gave our expectations for being able to reach 43%, it fully comprehended the product mix and market mix that we see here. And while there are some number of bps, which we disclosed on a mix per se, but from a product perspective, we still think we can get over 40. It does take a leaning out of our manufacturing, which we are in the process of and getting the utilization rates up. But we don't think inherently that power business is stuck in the 30s. We definitely think we can get that in the 40s. The other piece of that equation is a lot of the new EV stuff is in modules. And there, we think the opportunity for the modules is for better margin than the discrete devices.

如此簡單的答案是，當我們給出能夠達到 43% 的預期時，它完全理解了我們在這裡看到的產品組合和市場組合。雖然我們披露了一些 bps 本身的組合，但從產品的角度來看，我們仍然認為我們可以超過 40 個。這確實需要我們的製造業傾斜，我們正在這樣做並提高利用率。但我們並不認為電力業務一直停留在 30 年代。我們絕對認為我們可以在 40 年代實現這一目標。該等式的另一部分是許多新的電動汽車材料都在模塊中。在那裡，我們認為模塊的機會是比分立器件獲得更好的利潤。

Got it. Very helpful. And Keith, as my follow-up, in terms of the competitive landscape, just given U.S. and China trade tensions, do you see any headwinds to gaining share in China? i.e., that share perhaps going more to your European or Japanese competitors? Like have you -- other than Huawei, have you seen any effect of trade tension so far? Or do you anticipate any effects going into next year?

知道了。很有幫助。基思，作為我的後續行動，就競爭格局而言，剛剛考慮到美國和中國的貿易緊張局勢，你認為在中國獲得份額有什麼阻力嗎？即，該份額可能更多地流向了您的歐洲或日本競爭對手？像你一樣——除了華為，到目前為止你有沒有看到貿易緊張的影響？或者你預計明年會有什麼影響？

I think there will be more reluctance for customers to accept sole source positions from U.S.-based companies as a result of the trade tensions. I still think they're very wise economic buyers, and they're going to do the best thing for their company, but they certainly don't want to be completely reliant on the U.S. supplier.

我認為，由於貿易緊張局勢，客戶將更不願意接受美國公司的獨家採購職位。我仍然認為他們是非常明智的經濟買家，他們會為他們的公司做最好的事情，但他們當然不想完全依賴美國供應商。

But do you see shares shifting to European competitors?

但您是否看到股票轉向歐洲競爭對手？

We certainly saw it at the account you mentioned. Elsewhere, we have not seen it.

我們當然在您提到的帳戶中看到了它。在其他地方，我們還沒有看到它。

I show our next question comes from the line of Shawn Harrison from Loop Capital.

我展示了我們的下一個問題來自 Loop Capital 的 Shawn Harrison。

Keith, for you, are you seeing anything either on the raw material supply or kind of, I guess, the foundry supply as well, given kind of you see to speak to distributors, you're reading the press about some prebuying of either materials or capacity next year just given the trade tensions?

基思，對您而言，您是否看到任何關於原材料供應或某種（我猜）代工供應的信息還是考慮到貿易緊張局勢，明年的產能？

So we've seen some tightness and some things like substrates in the communications market. I think that's fairly wide spread. I think the expansion there is slower than the market itself has been growing. And there's certainly some tightness in spot areas in the foundry market. But overall, the supply chain is in pretty good shape.

所以我們在通信市場上看到了一些緊張和一些東西，比如基板。我認為這是相當廣泛的傳播。我認為那裡的擴張比市場本身的增長要慢。代工市場的現貨領域肯定存在一些緊張。但總體而言，供應鏈狀況良好。

Very helpful. And Bernard as a follow-up, just if you could speak to how you're thinking about the return of the share buyback in '21, what's either maybe a leverage ratio you're looking at or some type of metric before a share buyback could return?

很有幫助。伯納德（Bernard）作為後續行動，如果您可以談談您如何考慮 21 年股票回購的回報，那麼您正在查看的槓桿比率或股票回購前的某種指標可能是什麼能回來嗎？

Sure, Shawn. So historically, what we have done is we have focused on paying down debt until we reach about a 2x net leverage. And we obviously need to get concurrence from our Board to continue with the same strategy, but that would be the general approach towards share buyback.

當然，肖恩。所以從歷史上看，我們所做的是我們專注於償還債務，直到我們達到大約 2 倍的淨槓桿率。我們顯然需要得到董事會的同意才能繼續採用相同的策略，但這將是股票回購的一般方法。

Our next question comes from the line of Nik Todorov from Longbow Research.

我們的下一個問題來自 Longbow Research 的 Nik Todorov。

Once you guys completed the 3 front-end fab optimizations, can you maybe talk about approximately at what revenue level you will be at full utilization of your non-300-millimeter footprint?

一旦你們完成了 3 項前端晶圓廠優化，您能否談談您在充分利用非 300 毫米足跡時的收入水平？

That's a difficult question. I'm not sure I have the answer for that because a lot of it will depend on the mix. Definitely, it moves us upwards towards our sweet spot of 80% to 85%, which is where we like to operate at.

這是一個很難的問題。我不確定我是否有答案，因為很多都取決於組合。毫無疑問，它將我們向上推向 80% 到 85% 的最佳位置，這是我們喜歡操作的地方。

Our next question comes from the line of Craig Hettenbach from Morgan Stanley.

我們的下一個問題來自摩根士丹利的 Craig Hettenbach。

I have a question on silicon carbide. Naturally, a lot of the discussion is around EVs, but Keith, from an industrial perspective, can you talk about any interesting applications or opportunities you see in the industrial market?

我有一個關於碳化矽的問題。當然，很多討論都是圍繞電動汽車展開的，但是 Keith，從工業的角度來看，你能談談你在工業市場上看到的任何有趣的應用或機會嗎？

Yes. The -- we're seeing big pickup in solar energy. The pickups that you get there from an efficiency perspective are pretty significant. We have an opportunity for about $650 worth of silicone carbide there. And then in EV charging, so not the traction inverters, but actual charging stations. We're also seeing opportunities for up to $500 there.

是的。 - 我們看到太陽能大幅回升。從效率的角度來看，您獲得的皮卡非常重要。我們有機會在那裡購買價值約 650 美元的碳化矽。然後在電動汽車充電中，不是牽引逆變器，而是實際的充電站。我們還在那裡看到了高達 500 美元的機會。

Got it. And then just a follow-up on just the geopolitical issues with the customer. Is that something that you expect, ultimately, revenue will go to another OEM, and that could be opportunity at some point next year?

知道了。然後只是跟進客戶的地緣政治問題。這是您所期望的嗎，最終，收入將流向另一家 OEM，而這可能是明年某個時候的機會？

The way the rules are written, it's unclear if anyone can ship without a license. And so that's -- at least, our interpretation. And so I think right now, the license process is most critical to answering who might be providing that supply.

規則的編寫方式，尚不清楚是否有人可以在沒有許可證的情況下發貨。這就是——至少，我們的解釋。所以我認為現在，許可流程對於回答誰可能提供該供應最為關鍵。

And we should benefit the shift into other customers of ours. There is the opportunity for us to also take advantage of that and widen -- get that wider in our approach.

我們應該受益於轉向我們的其他客戶。我們也有機會利用這一點並擴大範圍——在我們的方法中擴大範圍。

I show our next question comes from the line of Craig Ellis from B. Riley Securities.

我展示了我們的下一個問題來自 B. Riley Securities 的 Craig Ellis。

Keith, I wanted to start just going back to some of your end market commentary. You mentioned that in cloud power, there should be some server share gain and content gain. So I wanted to see if we could get some specifics around that for calendar '21.

基思，我想開始回到你的一些終端市場評論。您提到在雲計算中，應該有一些服務器份額增益和內容增益。所以我想看看我們是否可以為 21 年日曆提供一些細節。

And then also in cloud power, what is your interaction with base station customers signaling for base station production next year? And what does that mean for growth in that part of cloud power?

然後在雲計算方面，您與基站客戶的互動是什麼？這對雲計算這部分的增長意味著什麼？

Okay. So one is kind of share gain and generation change, cloud power content. And the second one is what kind of ramps we're seeing in base stations, if I got that correct.

好的。所以一種是份額增益和代變，雲計算的內容。第二個是我們在基站中看到的坡道，如果我沒記錯的話。

So kind of going from the back. On the base station, basically, China is driving most of that growth. And we do see some significant growth there in China. U.S., maybe late in '21, moving into '22 would become much more substantial. From a cloud server perspective, we get about $60 out of the current generation in power content, and it goes to 75 with the VR 14s, which are coming out next year.

有點像從後面走。在基站方面，基本上，中國正在推動大部分增長。我們確實在中國看到了一些顯著的增長。美國，可能在 21 年後期，進入 22 年將變得更加重要。從雲服務器的角度來看，我們從當前一代的電力內容中獲得了大約 60 美元，而明年推出的 VR 14s 則達到 75 美元。

That's great. And then the follow-up is on IMM. So I think it seems like right now, medical, military and energy efficiency are bid areas of strength. But we know that in industrial, there are areas of weakness, too, energy extraction, et cetera, et cetera. No different than 2009 when industrial broadly was probably the last end market to come off the bottom. The question is this, when do you think that segment broadly will be back to good growth? Is that something that could happen in the first half of '21? Or is that really something that would happen later next year?

那太棒了。然後是 IMM 的後續行動。所以我認為現在看來，醫療、軍事和能源效率是有實力的領域。但我們知道，在工業領域，能源開採等也存在薄弱環節。與 2009 年沒有什麼不同，當時工業可能是最後一個走出底部的終端市場。問題是，您認為該細分市場何時會恢復良好增長？這會在 21 年上半年發生嗎？或者這真的會在明年晚些時候發生嗎？

Yes. Okay. So the broad-based piece of it should improve. We've always seen that kind of following the GDP in general. What we do see different in industrial this time, Craig, is that the automation has actually been, I believe, accelerated by COVID-19 and the experience this company has had there.

是的。好的。所以它的基礎廣泛的部分應該改進。我們總能看到這種追隨 GDP 的情況。克雷格，這次我們在工業領域看到的不同之處在於，我相信，自動化實際上已經被 COVID-19 和這家公司在那裡的經驗加速了。

They're looking for much more automation, both in assembly and in their warehouses to kind of make its dependence on people less. And so that would be kind of like in automotive, we see electric vehicles and ADAS being a supercharger, I think, in this case, automation is the supercharger for industrial.

他們正在尋找更多的自動化，無論是在裝配還是在他們的倉庫中，以減少對人的依賴。所以這有點像汽車，我們看到電動汽車和 ADAS 是增壓器，我認為，在這種情況下，自動化是工業增壓器。

That's helpful. And congrats on the retirement, Keith.

這很有幫助。並祝賀退休，基思。

Thank you.

謝謝你。

Thank you. I show no further questions in the queue. At this time, I like to turn the call back over to Mr. Parag Agarwal, Vice President of Investor Relations and Corporate Development for closing. Please go ahead, sir.

謝謝你。我在隊列中沒有其他問題。目前，我想將電話轉回投資者關係和企業發展副總裁 Parag Agarwal 先生完成。請繼續，先生。

Thank you, everyone, for joining the call today. We look forward to seeing you at various virtual conferences during the fourth quarter. Goodbye.

謝謝大家今天加入電話會議。我們期待在第四季度的各種虛擬會議上見到您。再見。

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

女士們，先生們，今天的電話會議到此結束。感謝您的參與。您現在可以斷開連接。