安森美 (ON) 2020 Q2 法說會逐字稿

Ladies and gentlemen, thank you for standing by, and welcome to the ON Semiconductor Second Quarter 2020 Earnings Conference Call. (Operator Instructions)

女士們，先生們，感謝你們的支持，歡迎來到安森美半導體 2020 年第二季度收益電話會議。 （操作員說明）

I would now like to hand the conference over to your speaker for today, Mr. Parag Agarwal. Sir, please go ahead.

我現在想將會議交給今天的發言人 Parag Agarwal 先生。先生，請繼續。

Thank you, Jay. Good morning, and thank you for joining ON Semiconductor Corporation's Second Quarter 2020 Quarterly Results Conference Call. I am 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 second quarter earnings release will be available on our website approximately 1 hour following this conference call. And the recorded webcast will be available for approximately 30 days following this conference call.

謝謝你，傑伊。早上好，感謝您參加安森美半導體公司 2020 年第二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 加入了我的行列；和我們的首席財務官 Bernard Gutmann。此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。此網絡廣播的重播以及我們 2020 年第二季度的收益發布將在本次電話會議後約 1 小時在我們的網站上發布。錄製的網絡廣播將在本次電話會議後大約 30 天內可用。

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.

今天電話會議的腳本以及與我們的終端市場、業務部門、地域、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。

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

我們的收益發布和本演示文稿包括某些非 GAAP 財務措施。這些非 GAAP 財務指標與 GAAP 下最直接可比指標的對賬包含在我們的收益發布中，該發佈單獨發佈在我們網站的“投資者關係”部分。

During the course of this conference call, we'll make projections or other forward-looking statements regarding future events or future financial performance of the company. The words believe, estimate, project, anticipate, intend, may, expect, will, plan, should or similar expressions are intended to identify forward-looking statements. We wish to caution that such statements are subject to risks and uncertainties that could cause actual events or results to differ materially from projections. Important factors 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，我們將對公司的未來事件或未來財務業績做出預測或其他前瞻性陳述。相信、估計、項目、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，在我們的 10-K 表格、10-Q 表格和提交給美國證券交易委員會的其他文件中有所描述。

Additional factors are described in our earnings release for the second quarter of 2020. Our estimates, our other financial -- or other forward-looking statements may change, and the company assumes no obligation to update forward-looking statements to reflect actual results changed assumptions or other factors, except as required by law.

我們在 2020 年第二季度的收益發布中描述了其他因素。我們的估計、我們的其他財務報表或其他前瞻性報表可能會發生變化，並且公司不承擔更新前瞻性報表以反映實際結果變化假設的義務或其他因素，法律要求的除外。

We plan to host our Analyst Day on March 5, 2021. At this time, our intent is to hold the event virtually. However, if conditions improve and risks related to COVID-19 pandemic subside substantially, we will hold the event in-person in Phoenix, Arizona. We will provide additional information on the event in due course.

我們計劃在 2021 年 3 月 5 日舉辦我們的分析師日。目前，我們打算以虛擬方式舉辦該活動。但是，如果情況有所改善並且與 COVID-19 大流行相關的風險大幅消退，我們將在亞利桑那州鳳凰城親自舉辦活動。我們將在適當時候提供有關該活動的更多信息。

During the third quarter, we start to attend 4 virtual conferences. These include KeyBanc Capital Markets' Future of Technology Series on August 11; Jefferies' Virtual Semiconductor, IT, Hardware and Communications Infrastructure Summit on September 2; Citi Global Technology Conference on September 10; and Deutsche Bank Technology Conference on September 15.

第三季度，我們開始參加 4 場虛擬會議。其中包括 8 月 11 日 KeyBanc Capital Markets 的技術未來系列； 9 月 2 日 Jefferies 的虛擬半導體、IT、硬件和通信基礎設施峰會； 9月10日花旗全球科技大會； 9 月 15 日和德意志銀行技術會議。

Now let me turn it over to Bernard Gutmann, who will provide an overview of our second quarter 2020 results. Bernard?

現在讓我把它交給 Bernard Gutmann，他將概述我們 2020 年第二季度的業績。伯納德？

Thank you, Parag, and thank you, everyone, for joining us today. During the second quarter, we saw a moderate improvement in business conditions as macroeconomic activity picked up across the world. We are seeing improvement in order activity across most end markets and geographies as the global community adjusts to changed business and social conditions brought about by the pandemic. The COVID-19 pandemic continues to be a significant headwind to our results. However, through strong execution and unwavering commitment from our employees, customers and supply chain partners, we believe we are -- that we are successful in navigating the current environment.

謝謝 Parag，也謝謝大家今天加入我們。在第二季度，隨著全球宏觀經濟活動的回升，我們看到商業環境溫和改善。隨著國際社會適應大流行帶來的商業和社會條件變化，我們看到大多數終端市場和地區的訂單活動有所改善。 COVID-19 大流行繼續對我們的結果構成重大阻力。然而，通過我們的員工、客戶和供應鏈合作夥伴的強有力的執行和堅定的承諾，我們相信我們是——我們成功地駕馭了當前的環境。

Despite near-term challenges, long-term drivers of our business remain intact. We're seeing strong momentum in our key end markets, driven by accelerating design wins for our power, analog and sensor products.

儘管存在近期挑戰，但我們業務的長期驅動因素仍然完好無損。在我們的電源、模擬和傳感器產品加速設計勝利的推動下，我們在關鍵終端市場看到了強勁勢頭。

At this time, improving our gross margin is the primary strategic priority for the company. As evident from our most recent press releases, we have accelerated our plans to optimize our manufacturing network. In addition, we're making strong progress in ramp of our 300-millimeter manufacturing processes at East Fishkill fab. Keith will later provide additional details regarding our progress on the manufacturing front in his remarks.

目前，提高毛利率是公司的首要戰略重點。從我們最近的新聞稿中可以明顯看出，我們已經加快了優化製造網絡的計劃。此外，我們在 East Fishkill 工廠的 300 毫米製造工藝的提升方面取得了重大進展。基思稍後將在他的講話中提供有關我們在製造方面取得的進展的更多詳細信息。

Now let me provide you with details on our second quarter 2020 results. Total revenue for the second quarter of 2020 was $1.213 billion, a decrease of 10% as compared to revenues of $1.348 billion in the second quarter of 2019. The year-over-year decline in revenue was driven primarily by slowdown in macro -- in global macroeconomic activity due to the COVID-19 pandemic. GAAP net loss for the quarter was $0.00 per diluted share as compared to a net income of $0.24 per diluted share in the second quarter of 2019. Non-GAAP net income for the second quarter of 2020 was $0.12 per diluted share as compared to $0.42 per diluted share in the second quarter of 2019. GAAP gross margin for the second quarter of 2020 was 30.8% as compared to 37% in the second quarter of 2019. Non-GAAP gross margin for the second quarter of 2020 was 30.8% as compared to 37.1% in the second quarter of 2019. The year-over-year decline in gross margin was driven primarily by lower revenue as discussed earlier and COVID-related costs.

現在讓我向您提供我們 2020 年第二季度業績的詳細信息。 2020 年第二季度的總收入為 12.13 億美元，與 2019 年第二季度的 13.48 億美元相比下降了 10%。收入同比下降的主要原因是宏觀經濟放緩—— COVID-19 大流行導致的全球宏觀經濟活動。本季度的 GAAP 淨虧損為攤薄後每股 0.00 美元，而 2019 年第二季度的攤薄後每股淨收益為 0.24 美元。2020 年第二季度的非 GAAP 淨收益為攤薄後每股 0.12 美元，而 2020 年第二季度的非 GAAP 淨收益為攤薄後每股 0.42 美元2019 年第二季度攤薄後的份額。2020 年第二季度的 GAAP 毛利率為 30.8%，而 2019 年第二季度為 37%。2020 年第二季度的非 GAAP 毛利率為 30.8%，相比之下2019 年第二季度為 37.1%。毛利率同比下降主要是由於前面討論的收入下降和與 COVID 相關的成本。

Second quarter 2020 gross margin included approximately $24 million of COVID-19-related cost. These costs include approximately $13 million related to the underutilization of our factory network in the first half of the second quarter. At this time, we do not expect to incur this underutilization charge in the third quarter of 2020 and beyond. And consequently, we expect to see a substantial increase in our gross margin for the third quarter. Other COVID-19-related costs in the second quarter included higher logistics costs and costs related to the implementation of enhanced health and safety protocols for our employees.

2020 年第二季度的毛利率包括約 2400 萬美元的 COVID-19 相關成本。這些成本包括約 1300 萬美元，與第二季度上半年我們工廠網絡未充分利用相關。目前，我們預計不會在 2020 年第三季度及以後產生這種未充分利用的費用。因此，我們預計第三季度的毛利率將大幅增長。第二季度其他與 COVID-19 相關的成本包括更高的物流成本以及與為我們的員工實施增強的健康和安全協議相關的成本。

Our GAAP operating margin for the second quarter of 2020 was 3.6% as compared to 11.7% in the second quarter of 2019. Our non-GAAP operating margin for the second quarter of 2020 was 7.4% as compared to 15.7% in the second quarter of 2019. The year-over-year decline in operating margin was driven largely by lower revenue and lower gross margin due to the COVID-19 pandemic.

我們 2020 年第二季度的 GAAP 營業利潤率為 3.6%，而 2019 年第二季度為 11.7%。我們 2020 年第二季度的非 GAAP 營業利潤率為 7.4%，而 2019 年第二季度為 15.7% 2019 年營業利潤率同比下降主要是由於 COVID-19 大流行導致收入和毛利率下降。

GAAP operating expenses for the second quarter were $331 million as compared to $341 million in the second quarter of 2019. Second quarter GAAP operating expenses include approximately $11.8 million associated with our previously announced restructuring programs. Non-GAAP operating expenses for the second quarter were $284.6 million as compared to $288.2 million in the second 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 taken underway by the company.

第二季度的 GAAP 運營費用為 3.31 億美元，而 2019 年第二季度為 3.41 億美元。第二季度的 GAAP 運營費用包括與我們先前宣布的重組計劃相關的約 1180 萬美元。第二季度非美國通用會計準則運營費用為 2.846 億美元，而 2019 年第二季度為 2.882 億美元。非美國通用會計準則運營費用同比下降主要是由於成本方面的強勁執行和重組以及公司正在採取的節約成本的措施。

Second quarter free cash flow was $81.2 million, and operating cash flow was $154.5 million. Capital expenditures during the second quarter were $73.3 million, which equate to a capital intensity of 6%. Given the current macroeconomic environment, we are directing most of the capital expenditures towards enabling our 300-millimeter capabilities in the East -- at the East Fishkill fab. We expect total capital expenditures for 2020 to be approximately $400 million.

第二季度自由現金流為 8120 萬美元，運營現金流為 1.545 億美元。第二季度的資本支出為 7330 萬美元，相當於 6% 的資本密集度。鑑於當前的宏觀經濟環境，我們將大部分資本支出用於實現我們在東部的 300 毫米能力——在 East Fishkill 工廠。我們預計 2020 年的總資本支出約為 4 億美元。

We exited the second quarter of 2020 with cash and cash equivalents of $2.06 billion as compared to $1.982 billion at the end of the first quarter of 2020. At this time, with cash balances of approximately $2 billion, we are very comfortable with our liquidity position.

我們在 2020 年第二季度結束時的現金和現金等價物為 20.6 億美元，而 2020 年第一季度末為 19.82 億美元。此時，我們的現金餘額約為 20 億美元，我們對流動性狀況非常滿意.

At the end of the second quarter, days of inventory on hand were 140 days, up by 9 days as compared to 131 days in the first quarter of 2020. The increase in days of inventory was driven primarily by our expectations of recovery in demand in the second half of the current year. In addition, we want to ensure that we have significant inventory at hand to support our customers in case of any supply disruption. In the second quarter, distribution inventory decreased marginally in terms of weeks of inventory.

二季度末，庫存天數為 140 天，較 2020 年第一季度的 131 天增加了 9 天。庫存天數的增加主要是由於我們對需求復甦的預期推動今年下半年。此外，我們希望確保手頭有大量庫存，以在供應中斷時支持我們的客戶。第二季度，就庫存週數而言，分銷庫存略有下降。

Now let me provide you with an update on performance of our business units, starting with the Power Solutions Group, or PSG. Revenue for PSG in the second quarter was $618 million. Revenue for Advanced Solutions Group for the second quarter was $427 million, and revenue for our Intelligent Sensing Group was $168 million.

現在讓我向您介紹我們業務部門的最新業績，首先是電源解決方案集團 (PSG)。 PSG 第二季度的收入為 6.18 億美元。 Advanced Solutions Group 第二季度的收入為 4.27 億美元，我們的智能傳感集團的收入為 1.68 億美元。

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

現在我想把電話轉給 Keith Jackson，就商業環境發表更多評論。基思？

Thanks, Bernard. I will start with structural changes we are making to drive margin expansion and then I will provide an update on current business environment. To drive gross margin expansion, we have accelerated the pace of our manufacturing footprint optimization. We announced a plan to explore potential sale of our 6-inch fab in Niigata, Japan. Production from the Niigata, Japan fab is expected to be transitioned to other fabs in our network. This announcement comes on the heels of our announcement in February regarding our plan to transition production from our 6-inch automotive centric fab in Belgium.

謝謝，伯納德。我將從我們為推動利潤率擴張而進行的結構性變革開始，然後我將提供有關當前業務環境的最新信息。為了推動毛利率的增長，我們加快了製造足跡優化的步伐。我們宣布了一項計劃，探索我們在日本新潟的 6 英寸晶圓廠的潛在銷售。日本新潟工廠的生產預計將轉移到我們網絡中的其他工廠。該公告是在我們 2 月份宣布我們計劃從比利時的 6 英寸汽車中心工廠過渡生產之後發布的。

With manufacturing optimization plans we've announced thus far, we expect to see significant improvement in our manufacturing cost structure and gross margin. Our 300-millimeter manufacturing capability in the East Fishkill fab has afforded us significant flexibility, which has enabled us to optimize our network.

通過我們迄今為止宣布的製造優化計劃，我們預計我們的製造成本結構和毛利率將得到顯著改善。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。

During the second quarter, we started our first 300-millimeter wafer production at the East Fishkill fab. We are currently sampling our 300-millimeter products to customers, and we expect to recognize our first 300-millimeter revenue in the third quarter. As we've noted in our earlier calls, we are very pleased with our accelerated progress in ramping our 300-millimeter manufacturing processes. The yields have been spectacular, and we expect to see a meaningful positive impact on our gross margins as our 300-millimeter manufacturing ramps up in the coming years.

第二季度，我們在 East Fishkill 工廠開始了第一批 300 毫米晶圓的生產。我們目前正在向客戶提供 300 毫米產品的樣品，我們預計將在第三季度確認我們的第一筆 300 毫米收入。正如我們在之前的電話中指出的那樣，我們對我們在提升 300 毫米製造工藝方面的加速進展感到非常高興。產量非常可觀，隨著我們 300 毫米製造在未來幾年的加速發展，我們預計將對我們的毛利率產生有意義的積極影響。

We've made substantial progress in key initiatives for driving gross margin expansion. We have launched new products and built a robust design win pipeline in automotive, industrial and cloud-power end-markets to drive richer mix. We continue to optimize our portfolio to ensure healthy margins for the company. We've accelerated the optimization of our manufacturing network. In addition, we will continue to work on expanding our gross margin through operational improvements within our network. As our revenue recovers driven by global macroeconomic recovery and the ramp up of design wins, we expect to see strong operating leverage and robust gross margin expansion.

我們在推動毛利率擴張的關鍵舉措方面取得了實質性進展。我們推出了新產品，並在汽車、工業和雲電源終端市場建立了穩健的設計製勝渠道，以推動更豐富的產品組合。我們繼續優化我們的投資組合，以確保公司的健康利潤率。我們加快了製造網絡的優化。此外，我們將繼續致力於通過網絡內的運營改進來擴大我們的毛利率。隨著我們的收入在全球宏觀經濟復甦和設計勝利增加的推動下復甦，我們預計將看到強勁的經營槓桿和強勁的毛利率增長。

Let me now comment on the current business environment. We are beginning to see moderate recovery in the business environment. The improvement is broad-based with improving order activity across most end markets. Unlike in the second quarter, we have not seen any meaningful pushout or cancellation of orders.

現在讓我評論一下當前的商業環境。我們開始看到商業環境溫和復蘇。這種改善是廣泛的，大多數終端市場的訂單活動都在改善。與第二季度不同，我們沒有看到任何有意義的訂單推出或取消。

Based on the current outlook, we expect to see improving business trends through the rest of the year. Improvement in our business is driven not only by improving global macroeconomic environment, but also by our accelerating design wins in Automotive, Industrial and Cloud power end markets. Our customers are restarting their factories and are engaging with our teams on ongoing projects.

根據目前的展望，我們預計今年剩餘時間的業務趨勢將有所改善。我們業務的改善不僅受到全球宏觀經濟環境改善的推動，還受到我們在汽車、工業和雲電源終端市場加速設計勝利的推動。我們的客戶正在重啟他們的工廠，並與我們的團隊合作開展正在進行的項目。

Our factories are resuming normal operation. And at this time, we don't expect to see any meaningful supply constraints in the current quarter and beyond.

我們的工廠正在恢復正常運作。目前，我們預計本季度及以後不會出現任何有意義的供應限制。

From a geographic perspective, we are seeing recovery in demand from Americas and Europe as economic activity is approved in these regions, and we're very encouraged by improving PMI numbers from both Europe and the U.S. We are beginning to see signs of recovery in automotive demand from Europe and the U.S., while demand from China and Asia remains healthy.

從地理角度來看，我們看到美洲和歐洲的需求正在復蘇，因為這些地區的經濟活動得到批准，我們對歐洲和美國 PMI 數據的改善感到非常鼓舞。我們開始看到汽車行業復甦的跡象來自歐洲和美國的需求，而來自中國和亞洲的需求依然健康。

Despite the disruption caused by the COVID-19 pandemic, we continue to make progress towards our strategic and financial goals. Key secular megatrends and long-term drivers of our business remain intact. We are seeing accelerating momentum in key strategic initiatives for electric vehicles, robotics, factory and warehouse automation, cloud-power and ADAS. Customers are increasingly relying on us to provide enabling technologies in power, analog and sensors, and they value the differentiation in technology and quality our products offer.

儘管 COVID-19 大流行造成了破壞，但我們繼續朝著我們的戰略和財務目標取得進展。我們業務的主要長期大趨勢和長期驅動力保持不變。我們看到電動汽車、機器人技術、工廠和倉庫自動化、雲電源和 ADAS 的關鍵戰略計劃正在加速發展。客戶越來越依賴我們提供電源、模擬和傳感器方面的支持技術，他們重視我們產品在技術和質量方面的差異化。

Now I'll provide details of the progress in our various end markets for the second quarter of 2020. Revenue for the Automotive market in the second quarter was $327 million and represented 27% of our revenue in the second quarter. Second quarter automotive revenue declined 26% year-over-year. Year-over-year decline in automotive market was driven primarily by the closure of Automotive production factories in various parts of the world due to COVID-19 pandemic. Although the COVID-19 pandemic caused a temporary slowdown in our Automotive revenue, key secular drivers powering our business have remained intact.

現在我將詳細介紹 2020 年第二季度我們在各個終端市場的進展情況。第二季度汽車市場的收入為 3.27 億美元，占我們第二季度收入的 27%。第二季度汽車收入同比下降 26%。汽車市場的同比下降主要是由於 COVID-19 大流行導致世界各地的汽車生產工廠關閉所致。儘管 COVID-19 大流行導致我們的汽車收入暫時放緩，但為我們的業務提供動力的主要長期驅動因素仍然完好無損。

Our content in the fastest-growing automotive applications continues to grow at a healthy pace. Based on our design win pipeline, indications from customers and revenue trends, we believe that we are gaining significant share in the most attractive segments of the automotive semiconductor market. We are beginning to see recovery in the automotive market in the U.S. and Europe. Conversations with customers indicate that we should see going recovery in the third and in the fourth quarter of the current year.

我們在增長最快的汽車應用中的內容繼續以健康的速度增長。根據我們的設計中標管道、客戶的指示和收入趨勢，我們相信我們正在汽車半導體市場最具吸引力的細分市場中獲得重要份額。我們開始看到美國和歐洲汽車市場的複蘇。與客戶的對話表明，我們應該會在今年第三季度和第四季度看到復蘇。

We are seeing strong momentum for our silicon carbide and silicon products for electric vehicles. We recently won a very significant design with one of the leading global automotive OEMs for our silicon carbide power modules for traction inverters for electric vehicles. We expect to start seeing revenue from this win a year from now. Based on our current engagement with various Automotive OEMs, we expect to win multiple designs in the near to mid-term.

我們看到用於電動汽車的碳化矽和矽產品的強勁勢頭。我們最近與全球領先的汽車 OEM 之一贏得了一項非常重要的設計，用於我們的電動汽車牽引逆變器的碳化矽功率模塊。我們希望從現在起一年後開始看到這次勝利的收入。根據我們目前與各種汽車原始設備製造商的合作，我們預計將在中短期內贏得多項設計。

With a broad portfolio of silicon and silicon carbide products and industry-leading module capabilities, we believe that we are uniquely positioned to be a strong leader in power semiconductor market for electric vehicles. We expect to see strong revenue growth in our IGBT modules for EV traction inverters as our design wins ramp in China this year.

憑藉廣泛的矽和碳化矽產品組合以及行業領先的模塊能力，我們相信我們具有獨特的優勢，可以成為電動汽車功率半導體市場的強大領導者。隨著我們的設計今年在中國取得成功，我們預計用於電動汽車牽引逆變器的 IGBT 模塊的收入將實現強勁增長。

In ADAS, we continue to win designs for our CMOS image sensors with leading global OEMs. Our competitive position in automotive CMOS image sensors remains solid, and our customers value our technology leadership and breadth of product offerings in this market. We're seeing strong customer interest in our recently introduced backside illumination image sensors for automotive applications. We are making strong progress in LIDAR, and we expect to commence commercial shipments of our LIDAR products in mid- to late '21 -- in 2021.

在 ADAS 方面，我們繼續贏得全球領先 OEM 的 CMOS 圖像傳感器設計。我們在汽車 CMOS 圖像傳感器領域的競爭地位依然穩固，我們的客戶重視我們在該市場的技術領先地位和廣泛的產品供應。我們看到客戶對我們最近推出的用於汽車應用的背照式圖像傳感器表現出濃厚的興趣。我們在激光雷達方面取得了長足的進步，我們預計我們的激光雷達產品將在 21 世紀中後期——2021 年開始商業出貨。

During the second quarter, we also secured major design wins for surround vision applications. We expect to begin seeing revenue from these wins in mid-2021. Our ability to integrate our automotive sensor products with our analog and power products, coupled with our deep automotive systems expertise has provided us with a very formidable competitive advantage. Customers continue to place very high value on our ability to provide complete solutions for various automotive sensor applications.

在第二季度，我們還贏得了環視應用的主要設計。我們預計將在 2021 年年中開始看到這些勝利的收入。我們將汽車傳感器產品與我們的模擬和電源產品集成的能力，加上我們深厚的汽車系統專業知識，為我們提供了非常強大的競爭優勢。客戶繼續高度重視我們為各種汽車傳感器應用提供完整解決方案的能力。

Revenue in the third quarter of 2020 for the automotive end market is expected to be up strongly quarter-over-quarter as we expect to see worldwide recovery in automotive production.

預計 2020 年第三季度汽車終端市場的收入將環比強勁增長，因為我們預計全球汽車生產將復蘇。

The Industrial end market, which includes military, aerospace and medical, contributed revenue of $348 million in the second quarter. The Industrial end market represented 29% of our revenue in the second quarter. Year-over-year, our second quarter Industrial revenue declined 3%. This decline was driven by a reduction in global industry activity and supply constraints due to the COVID-19 pandemic.

包括軍事、航空航天和醫療在內的工業終端市場在第二季度貢獻了 3.48 億美元的收入。工業終端市場占我們第二季度收入的 29%。與去年同期相比，我們第二季度的工業收入下降了 3%。這種下降是由於 COVID-19 大流行導致全球行業活動減少和供應限制所致。

We are seeing strong traction for our silicon carbide products in Industrial power applications with an expanding base of customers. Recently, we announced a win with Delta for our silicon carbide power modules for solar inverter applications. Demand for Industrial automation continues to grow at a rapid pace. We've secured major design wins for our image sensors for Industrial applications, and we expect revenue from these wins to be recognized in late 2020. We continue to secure design wins for our large-format sensors in diverse industrial applications. We are engaged with leading global players on many warehouse automation and robotic delivery products. We expect that e-commerce customers will be a key driver of our growth of industrial revenue in a year's time frame. As is the case in the automotive market, we leverage our broad company-wide portfolio and customer relationship to secure design wins for our sensor products in the industrial market.

隨著客戶群的擴大，我們看到我們的碳化矽產品在工業電源應用中具有強大的吸引力。最近，我們宣布我們的太陽能逆變器應用碳化矽功率模塊贏得了 Delta。對工業自動化的需求繼續快速增長。我們已經為我們的工業應用圖像傳感器贏得了重大設計勝利，我們預計這些勝利的收入將在 2020 年底得到確認。我們將繼續確保我們的大幅面傳感器在各種工業應用中的設計勝利。我們在許多倉庫自動化和機器人交付產品方面與全球領先企業合作。我們預計電子商務客戶將成為我們一年內工業收入增長的主要驅動力。與汽車市場的情況一樣，我們利用我們廣泛的公司範圍產品組合和客戶關係來確保我們的傳感器產品在工業市場上的設計勝利。

We continue to make strong progress in Industrial IoT space and are on track to launch our first Industrial IoT connectivity product incorporating WiFi technology from our Quantenna acquisition within a year. Revenue in the third quarter of 2020 for the industrial end market is expected to be down quarter-over-quarter. Geopolitical issues related to a specific customer have adversely impacted our third quarter industrial revenue. We don't expect any further meaningful decline in revenue from this customer beyond the third quarter.

我們繼續在工業物聯網領域取得重大進展，並有望在一年內推出我們的首款工業物聯網連接產品，該產品採用了我們收購的 Quantenna 的 WiFi 技術。預計2020年第三季度工業終端市場收入環比下降。與特定客戶相關的地緣政治問題對我們第三季度的工業收入產生了不利影響。我們預計該客戶的收入在第三季度之後不會進一步出現顯著下降。

The communications end market, which includes both networking and wireless, contributed revenue of $255 million in the quarter and represented 21% of our revenue during the second quarter. Second quarter communications revenue increased by 3% year-over-year. We saw strong year-over-year growth in our 5G business in the second quarter. On the smartphone front, we continue to increase our content in most popular platforms.

包括網絡和無線在內的通信終端市場在本季度貢獻了 2.55 億美元的收入，占我們第二季度收入的 21%。第二季度通信收入同比增長 3%。第二季度，我們的 5G 業務實現了強勁的同比增長。在智能手機方面，我們繼續在最流行的平台上增加我們的內容。

Revenue in the third quarter of 2020 for the communications end market is expected to be down quarter-over-quarter. Our third quarter communications revenue has been impacted by delayed launches in certain platforms and geopolitical issues related to a specific customer. We don't expect any further meaningful decline in revenue from this customer beyond the third quarter.

預計2020年第三季度通信終端市場收入環比下降。我們第三季度的通信收入受到某些平台延遲發布和與特定客戶相關的地緣政治問題的影響。我們預計該客戶的收入在第三季度之後不會進一步出現顯著下降。

The computing end market contributed revenue of $158 million in the second quarter. Computing end market represented 13% of our revenue in the second quarter. Second quarter computing revenue increased by 14% year-over-year due to strength in both server and client businesses. Revenue in the third quarter of 2020 for the computing end market is expected to be up quarter-over-quarter. We expect growth in both server and client parts of the computing business.

計算終端市場在第二季度貢獻了 1.58 億美元的收入。計算終端市場占我們第二季度收入的 13%。由於服務器和客戶端業務的強勁表現，第二季度計算收入同比增長 14%。預計2020年第三季度計算終端市場收入環比增長。我們預計計算業務的服務器和客戶端部分都會增長。

The consumer end market contributed revenue of $126 million in the second quarter. Consumer end market represented 10% of our revenue in the second quarter. Second quarter consumer revenue declined by 22% year-over-year. The year-over-year decline was due to broad-based weakness in consumer electronics market due to COVID-19 pandemic and our selective participation in this market.

消費終端市場在第二季度貢獻了 1.26 億美元的收入。消費者終端市場占我們第二季度收入的 10%。第二季度消費者收入同比下降 22%。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有選擇地參與該市場。

Revenue for the third quarter of 2020 for the consumer end market is expected to be up quarter-over-quarter due to normal seasonality.

由於正常的季節性，預計 2020 年第三季度消費終端市場的收入將環比增長。

In summary, gross margin expansion is the key strategic priority for the company. We've accelerated the pace of our manufacturing footprint optimization with the goal to drive significant gross margin expansion. Ramp of our 300-millimeter manufacturing processes at East Fishkill fab should further help in gross margin expansion. In the near term, the expected decline in COVID-19-related expenses and impact of cost realignment measures should help expand margins. We've seen moderate improvement in business conditions to date, and we expect that this improvement should continue in the near term. We are seeing broad-based recovery across most end markets and geographies. Key secular megatrends and long-term drivers of our business remain intact, and we are excited about our medium- to long-term prospects.

綜上所述，擴大毛利率是公司的關鍵戰略重點。我們加快了製造足跡優化的步伐，目標是推動毛利率顯著增長。我們在 East Fishkill 工廠的 300 毫米製造工藝的斜坡應進一步有助於毛利率的增長。在短期內，與 COVID-19 相關費用的預期下降和成本調整措施的影響應有助於擴大利潤率。迄今為止，我們已經看到商業環境出現適度改善，我們預計這種改善將在短期內持續下去。我們看到大多數終端市場和地區都出現了廣泛的複蘇。我們業務的主要長期大趨勢和長期驅動力保持不變，我們對我們的中長期前景感到興奮。

We are seeing accelerating momentum in our key strategic initiatives for electric vehicles, robotics, factory and warehouse automation, cloud-power and ADAS. As COVID-19-related impact subsides, we expect to see meaningful improvement in revenue growth and margin expansion.

我們在電動汽車、機器人技術、工廠和倉庫自動化、雲電源和 ADAS 等關鍵戰略計劃中看到了加速發展的勢頭。隨著與 COVID-19 相關的影響消退，我們預計收入增長和利潤率擴張將出現有意義的改善。

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

現在我想把它轉回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 total ON Semiconductor revenue will be in the range of $1.2 billion to $1.33 billion in the third quarter of 2020. Our third quarter revenue has been impacted moderately by geopolitical issues related to a particular customer. At this time, near- to mid-term expectations related to this customer have been derisked to a large extent, and we don't expect to see any further meaningful decline in revenue from this customer beyond the third quarter.

謝謝你，基思。根據產品預訂趨勢、積壓水平和估計的周轉水平，我們預計 ON Semiconductor 2020 年第三季度的總收入將在 12 億美元至 13.3 億美元之間。我們的第三季度收入受到相關地緣政治問題的適度影響給特定的客戶。目前，與該客戶相關的近期和中期預期已在很大程度上降低了風險，我們預計該客戶的收入在第三季度之後不會有任何進一步的顯著下降。

For the third quarter of 2020, we expect GAAP and non-GAAP gross margin between 32% to 34%. Our third quarter gross margin outlook includes COVID-19-related costs of approximately $11 million. We expect total GAAP operating expenses of $307 million to $327 million. Our GAAP operating expenses include the amortization of intangibles, restructuring, asset impairments and other charges, which are expected to be $30 million to $34 million. We expect total non-GAAP operating expenses of $277 million to $293 million in the third quarter.

對於 2020 年第三季度，我們預計 GAAP 和非 GAAP 毛利率在 32% 至 34% 之間。我們第三季度的毛利率展望包括約 1100 萬美元的 COVID-19 相關成本。我們預計 GAAP 運營費用總額為 3.07 億美元至 3.27 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，預計為 3000 萬至 3400 萬美元。我們預計第三季度非美國通用會計準則運營費用總額為 2.77 億美元至 2.93 億美元。

We anticipate third quarter of 2020 GAAP net other income and expense including interest expense, will be an expense of $42 million to $45 million, which includes a noncash interest expense of $9 million to $10 million. We anticipate our non-GAAP net other income and expense, including interest expense, will be an expense of $33 million to $35 million.

我們預計 2020 年第三季度 GAAP 淨其他收入和支出（包括利息支出）將為 4200 萬至 4500 萬美元的支出，其中包括 900 萬至 1000 萬美元的非現金利息支出。我們預計我們的非 GAAP 淨其他收入和支出（包括利息支出）將為 3300 萬至 3500 萬美元的支出。

Net cash paid for income taxes in the third quarter of 2020 is expected to be $17 million to $22 million. For 2020, we expect cash paid for taxes to be in the range of $54 million to $60 million.

預計 2020 年第三季度支付所得稅的現金淨額為 1700 萬至 2200 萬美元。到 2020 年，我們預計為納稅支付的現金將在 5400 萬至 6000 萬美元之間。

We expect total capital expenditures of $80 million to $90 million in the third quarter of 2020. We are currently targeting an overwhelming proportion of our CapEx for enabling our 300-millimeter capability at an accelerated pace. For 2020, we expect total capital expenditures of approximately $400 million. We also expect share-based compensation of $17 million to $19 million in the third quarter of 2020, of which approximately $2 million is expected to be the 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 年第三季度的總資本支出為 8000 萬至 9000 萬美元。我們目前的目標是將絕大部分資本支出用於加速實現我們的 300 毫米能力。 2020 年，我們預計總資本支出約為 4 億美元。我們還預計 2020 年第三季度的股權薪酬為 1700 萬至 1900 萬美元，其中約 200 萬美元預計將用於銷售商品成本，其餘金額預計將用於運營費用。這筆費用包含在我們的非 GAAP 財務措施中。

Our GAAP diluted share for the third quarter of 2020 is expected to be 416 million shares based on our current stock price. Our non-GAAP diluted share account for the third quarter of 2020 is expected to be 411 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.

根據我們當前的股價，我們 2020 年第三季度的 GAAP 稀釋後股份預計為 4.16 億股。根據我們當前的股價，我們 2020 年第三季度的非 GAAP 攤薄股數預計為 4.11 億股。我們的 10-Q 表和 10-K 表的季度和年度報告分別定期提供有關股數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 Jay, please open the line for questions.

有了這個，我想開始問答環節。謝謝你。 Jay，請打開問題熱線。

(Operator Instructions) First question comes from the line of Ross Seymore of Deutsche Bank.

（操作員說明）第一個問題來自德意志銀行的 Ross Seymore。

First question I had is on the gross margin line. It's good to see no negative surprises on that for the time in a couple of quarters. So I just wanted to look at -- in the near term, how do you expect those COVID-related charges to trend? You still have a bit in the third quarter, do they go away in the fourth quarter? And then much more importantly, longer term, with the Belgium fab and the Niigata fab but potentially being sold or shut down, how do we think about the long-term gross margin potential? When do those benefits come in? What's your new target, et cetera?

我的第一個問題是毛利率。很高興在幾個季度內暫時沒有出現負面意外。所以我只是想看看 - 在短期內，您如何看待與 COVID 相關的費用趨勢？你在第三節還有一點，他們在第四節就走了嗎？然後更重要的是，從長遠來看，比利時工廠和新潟工廠可能被出售或關閉，我們如何看待長期毛利率潛力？這些好處什麼時候進來？你的新目標是什麼，等等？

Thank you, Ross. Let me first address the COVID-related expenses is a little bit difficult to predict exactly when those are going to go away. As we said, a lot of those are related to grade expenses, which are the premium right now as well as safety protocols that we have put in place. Obviously, it will be a function of how the COVID pandemic progresses over time, and we expect those gradually to come down, but we are projecting that those will continue during the third quarter.

謝謝你，羅斯。讓我首先解決與 COVID 相關的費用有點難以準確預測這些費用何時會消失。正如我們所說，其中很多與成績費用有關，這是目前的溢價以及我們已經制定的安全協議。顯然，這將取決於 COVID 大流行如何隨著時間的推移而發展，我們預計這些會逐漸下降，但我們預計這些將在第三季度繼續。

We have typically assessed the savings associated with a 6-inch fab to be in the $25 million to $30 million of fixed costs that go away per year. The timing of the savings is really a function of business dynamics. And we don't have a perfect time line from the time we conclude a sale. It will still take us probably about 1 year to 1.5 years until we get full savings. But that depends on really when we get these deals concluded.

我們通常評估與 6 英寸晶圓廠相關的節省是每年減少 2500 萬至 3000 萬美元的固定成本。節省時間實際上是業務動態的函數。從完成銷售開始，我們沒有一個完美的時間表。我們可能還需要大約 1 年到 1.5 年的時間才能獲得全部儲蓄。但這實際上取決於我們何時達成這些交易。

Long term, we still are aspiring and still are targeting to achieve our long-term goal of 43% that we inaugurated in our 2019 Analyst Day, albeit probably a little bit delayed with the fact that the '19 and '20 were obviously not very good years from a top line point of view.

從長遠來看，我們仍然有抱負並且仍然致力於實現我們在 2019 年分析師日設立的 43% 的長期目標，儘管由於 19 年和 20 年顯然不是很好這一事實可能會有點延遲從頂線的角度來看是好年頭。

Got it. And then my follow-up, I just wanted to hit on the revenue side. In the last couple of quarters, you talked about supply disruptions. And I think everybody understands that, but they were in the first quarter, a bit over $100 million, I think, it was about the same in the second quarter, as what you originally said. So did you have those supply disruptions impacting revenue in the second quarter? And then potentially more importantly, if you don't have any in the third quarter, are those revenues just gone? Or like so many of your peers, are you actually expecting to catch up on some of the formerly delinquent shipping?

知道了。然後是我的後續行動，我只是想談談收入方面。在過去的幾個季度中，您談到了供應中斷。我想每個人都明白這一點，但他們在第一季度，超過 1 億美元，我認為，第二季度與你最初所說的大致相同。那麼，您是否有那些影響第二季度收入的供應中斷？然後可能更重要的是，如果您在第三季度沒有任何收入，那麼這些收入是否就消失了？或者像您的許多同行一樣，您是否真的希望趕上一些以前拖欠的運輸？

So we did continue to have supply constraints or pandemic-induced supply constraints in the second quarter. That was reflected in the total numbers. They are much less in the third quarter, and we're hopeful that there will be none before the end of the year. But at this stage, again, everything is, is still unknown if there's flare-ups or changes around the world, there's still risk.

因此，我們在第二季度確實繼續存在供應限製或大流行引起的供應限制。這反映在總數上。他們在第三季度要少得多，我們希望在今年年底之前不會有。但在現階段，一切都還未知，世界各地是否會爆發或發生變化，仍然存在風險。

Next question comes from the line of Chris Danely of Citigroup.

下一個問題來自花旗集團的 Chris Danely。

First question is you managed to do a really good job keeping the OpEx down in Q2, and you're giving us some good guidance for Q3. How about longer-term trends in OpEx with some of these restructuring plans, what can we expect for the next, I guess, several quarters?

第一個問題是你在第二季度成功地降低了運營支出，你為我們提供了第三季度的一些很好的指導。通過其中一些重組計劃，OpEx 的長期趨勢如何，我猜，接下來幾個季度我們可以期待什麼？

So indeed, we did take some significant actions that helped us overachieve our second quarter and third quarter guidance. In the long run, we are still targeting to achieve a 21% of OpEx as we have elaborated in our Analyst Day. However, we have to be aware of that, that at some point of time in -- depending on business conditions, some of the temporary actions as well as some of the variable comp will come back and will cause a temporary blip that will be gradually leveraged through as we increase revenues.

因此，確實，我們確實採取了一些重大行動，幫助我們超額完成了第二季度和第三季度的指導。從長遠來看，我們的目標仍然是實現 21% 的運營支出，正如我們在分析師日所闡述的那樣。然而，我們必須意識到，在某個時間點 - 根據業務條件，一些臨時行動以及一些可變補償會回來，並會導致暫時的波動，這種波動將逐漸消失在我們增加收入的過程中發揮槓桿作用。

Got it. And then for my follow-up, any commentary or color on the Coke industry's investment? Why did you adopt the shareholder rights program? And do you expect them to be a passive or active shareholder?

知道了。然後對於我的後續行動，對可口可樂行業的投資有何評論或色彩？你為什麼採用股東權利計劃？您希望他們成為被動股東還是主動股東？

They have indicated publicly that they're a passive intent as a shareholder and had no further communications.

他們已經公開表示他們是作為股東的被動意圖並且沒有進一步的溝通。

Next question comes from the line of Chris Caso of Raymond James.

下一個問題來自 Raymond James 的 Chris Caso。

I wanted you to comment on the linearity of bookings through the quarter. And it sounds like you're expecting some improvements as you go through the end of the year, if you could elaborate on that a little bit more.

我希望您對本季度預訂的線性度發表評論。聽起來您希望在今年年底時有所改進，如果您能詳細說明一下的話。

Yes. We had good linear pickup through the entire second quarter, and we continue to see good activity here in the third. So at this stage, we don't know when they stop ramping. But so far, we've -- it's been quite strong since the middle of the second quarter.

是的。我們在整個第二季度都有良好的線性回升，我們在第三季度繼續看到良好的活動。所以在這個階段，我們不知道他們什麼時候停止增長。但到目前為止，我們已經 - 自第二季度中期以來一直非常強勁。

And what about with regard to Q4 seasonality? And I guess given all the ups and downs we've had this year, I'm not sure that, that normal seasonality generally applies. But any thoughts on how we should be thinking about number quarter in light of all that's going on right now?

那麼關於第四季度的季節性呢？我想考慮到我們今年經歷的所有起起落落，我不確定正常的季節性是否普遍適用。但是，鑑於目前正在發生的一切，我們應該如何考慮數字四分之一有什麼想法嗎？

Yes. In our comments, we mentioned we expected conditions to continue to improve. We really only give guidance one quarter at a time, but we see no reason to believe there should be any retraction of the current trends.

是的。在我們的評論中，我們提到我們預計情況會繼續改善。我們真的一次只給出一個季度的指導，但我們認為沒有理由相信當前趨勢應該有任何縮減。

Next question comes from the line of Raji Gill from Needham & Company.

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

Congrats to the accelerated transition to 300-millimeter. I think that's very good progress. If you could remind us the cost savings, the potential cost savings as you transition to 300-millimeter. I believe that 12-inch facility has a revenue capacity of about $2.2 billion or about 40% of your revenue. So I'm just wondering if you can maybe outline what are the cost savings -- what would the cost savings be once you ultimately transition 200-, 300-millimeter? And given kind of the accelerated time line you've had and you're starting to see revenue from 300-millimeter customer in the third quarter, should we expect the transition to happen a little bit sooner than later?

祝賀加速過渡到 300 毫米。我認為這是非常好的進步。如果您能提醒我們節省的成本，以及過渡到 300 毫米時可能節省的成本。我相信 12 英寸設施的收入能力約為 22 億美元，約佔你們收入的 40%。所以我只是想知道您是否可以概述節省的成本是什麼——一旦您最終過渡 200 毫米、300 毫米，節省的成本是多少？考慮到你已經有了某種加速的時間線，並且你開始在第三季度看到來自 300 毫米客戶的收入，我們是否應該期望過渡早一點發生？

So the first question on the long-term benefits of East Fishkill, definitely a 300-millimeter fab gives us a sizable good improvement in gross margin in -- somewhere in that -- in that 20% to 25% of total finished goods cost. Now obviously, that is when you have a fully loaded path. In the interim period, we are paying a foundry cost. So the savings that we get are simply a function of the price that we're getting. We do and are very excited about loading have as Keith mentioned in his prepared remarks, we're seeing wonderful yields as we are running it through. So -- and we expect to have our first revenues in the third quarter. However, meaningful revenues were come in the years to come.

所以第一個關於 East Fishkill 的長期利益的問題，絕對是一個 300 毫米的晶圓廠給我們帶來了相當大的毛利率改善——在某個地方——佔成品總成本的 20% 到 25%。很明顯，那是當你有一個完全加載的路徑時。在此期間，我們正在支付鑄造成本。因此，我們獲得的節省只是我們獲得的價格的函數。正如基思在他準備好的發言中提到的那樣，我們確實對加載感到非常興奮，我們正在運行它時看到了驚人的收益。所以 - 我們預計將在第三季度獲得第一筆收入。然而，在接下來的幾年裡，收入可觀。

Now having said that, even the foundry costs that we're getting from them is quite attractive.

話雖如此，即使我們從他們那裡獲得的代工成本也很有吸引力。

Okay. And as for my follow-up, we're starting to see a recovery in automotive, particularly in U.S. and Europe. Wondering if you could discuss kind of what's your view on global auto production ending this year. And are there any thoughts in terms of what the rebound could look like in 2021?

好的。至於我的後續行動，我們開始看到汽車行業的複蘇，尤其是在美國和歐洲。想知道您是否可以討論一下您對今年結束的全球汽車生產有何看法。關於 2021 年的反彈會是什麼樣子，有什麼想法嗎？

Yes. I guess we don't have any firm opinions on 2021 yet, but I would expect that if you don't have the shutdown that we had in 2020, there's a very significant improvement year-on-year for next year. We're looking at something in the minus 20% for in the automotive sales decline year-on-year in 2020. Time will tell, but all of our customers are telling us they're pretty much back to full capacity sometime during the third quarter of this year.

是的。我想我們對 2021 年還沒有任何堅定的意見，但我希望如果你沒有像 2020 年那樣停工，那麼明年會有非常顯著的同比改善。我們預計 2020 年汽車銷量同比下降 20%。時間會證明一切，但我們所有的客戶都告訴我們，他們幾乎在第三季度的某個時候恢復了滿負荷生產今年四分之一。

Next question comes from the line of Vijay Rakesh from Mizuho.

下一個問題來自 Mizuho 的 Vijay Rakesh。

Just a couple of questions. One on the automotive side, I think you mentioned LIDAR would be shipping in 2021. Just wondering what your expectations are there, second half. And also, on the EV silicon carbide, now that it's ramping, are you still trying to grow internal silicon carbide wafers? Or would this be mostly all external? And how do you see that ramp into next year given it looks like multiple catalysts or subsidies on the EV side going forward?

只是幾個問題。在汽車方面，我想你提到過 LIDAR 將在 2021 年發貨。只是想知道下半年你的期望是什麼。還有，在EV碳化矽上，現在已經在爬坡了，你還想長內部碳化矽晶圓嗎？或者這主要是外部的？鑑於未來電動汽車方面看起來有多種催化劑或補貼，您如何看待明年的增長？

Okay. Yes. Automotive LIDAR would be in the launches for vehicle OEMs in the second half of next year with the new launches they've got after the summer. And we do expect to see a significant contribution.

好的。是的。汽車激光雷達將在明年下半年為汽車原始設備製造商推出，他們在夏季之後推出了新產品。我們確實希望看到重大貢獻。

On the EV side, with silicon carbide, our intent is to have both internal and external supply on an ongoing basis. Next year -- this year and next year, it should be mostly external supplies. And then as you transition to 2022, a larger percent of internal supply.

在電動汽車方面，對於碳化矽，我們的目的是持續提供內部和外部供應。明年——今明兩年應該主要是外供。然後當你過渡到 2022 年時，內部供應的百分比會更大。

Got it. And I think you mentioned one customer delay with geopolitical tensions. Is that the same customer that's impacting you on the industrial and the comm side? That's it.

知道了。我想你提到了一位客戶因地緣政治緊張局勢而延遲。在工業和通信方面影響您的是同一個客戶嗎？就是這樣。

Yes. It's a very large customer in China that is a broad-based customer, and it impacted several of the segments.

是的。它在中國是一個非常大的客戶，是一個基礎廣泛的客戶，它影響了幾個細分市場。

Next question comes from the line of Christopher Rolland from Susquehanna.

下一個問題來自 Susquehanna 的 Christopher Rolland。

Guys, some questions about Niigata, I guess. What is the revenue contribution there? And then how are you guys looking at the odds of successfully selling that facility?

伙計們，我猜是關於新潟的一些問題。那裡的收入貢獻是多少？那麼你們如何看待成功出售該設施的機率？

So we actually are expecting to have success there. We've seen good progress with interest in our Belgium factory. And so these assets still have interest in the marketplace, and we're expecting to have good results.

所以我們實際上期望在那裡取得成功。我們在比利時工廠看到了良好的進展。因此，這些資產仍然對市場感興趣，我們期待有好的結果。

Percentage of revenue, I'm not sure I have that number.

收入的百分比，我不確定我有那個數字。

Well, we probably don't have a precise number. It is a relatively small facility compared to the total footprint. As I mentioned earlier, the savings that we'll get from that facility is around $30 million per year.

好吧，我們可能沒有確切的數字。與總佔地面積相比，這是一個相對較小的設施。正如我之前提到的，我們將從該設施中獲得的節省每年約為 3000 萬美元。

Understood. For the remainder of your capacity, you still have quite a bit of extra there. Have you considered serving new products, some sort of fab filler product or something like that? In fact, growing out of your footprint organically? Or have you even considered the foundry model? I know you're doing that on a temp basis at Fishkill. I wonder if you could also give us an update on those temporary foundry customers that you have, have they actually decided to continue with you as well. But yes, how you can fill that extra capacity would be great.

明白了。對於剩餘的容量，您仍然有很多額外的空間。您是否考慮過提供新產品、某種晶圓廠填料產品或類似產品？事實上，有機地從你的足跡中成長？或者你有沒有考慮過代工模式？我知道你在 Fishkill 臨時工作。我想知道您是否也可以向我們提供有關您擁有的那些臨時代工客戶的最新信息，他們是否真的決定繼續與您合作。但是，是的，如何填補額外的容量會很棒。

Yes. So I'll try and get at what I think your question is. We do foundry services for many customers that are generally specialty processes that use our analog and sensor capabilities. They're not temporary. They are permanent relationships that we have with those customers. We continue to be excited by servicing them.

是的。所以我會試著弄明白我認為你的問題是什麼。我們為許多客戶提供代工服務，這些服務通常是使用我們的模擬和傳感器功能的特殊工藝。它們不是暫時的。它們是我們與這些客戶的永久關係。我們繼續為他們提供服務而感到興奮。

As far as looking at low-margin products to fill up factories, we're not looking at that. We don't think we need to look at that. We think the demands that we've talked about coming up for their power products, our sensor products will more than meet the needed amount of ramp over the next few years. So the trends in electric vehicles in factory and automation, et cetera. We've been talking about, we think, are more than sufficient. And then with the closure of 2 of our wafer fabs, we believe the balance in the medium term will be quite good.

至於尋找低利潤產品來填滿工廠，我們沒有考慮那個。我們認為我們不需要看那個。我們認為，我們已經談到了他們的電源產品的需求，我們的傳感器產品將在未來幾年內滿足所需的增長量。因此，工廠和自動化等領域的電動汽車趨勢。我們一直在談論，我們認為，已經綽綽有餘。然後隨著我們 2 家晶圓廠的關閉，我們相信中期的平衡會非常好。

Next question comes from the line of Craig Ellis of B. Riley FBR.

下一個問題來自 B. Riley FBR 的 Craig Ellis。

Guys, thanks for all the color on the COGS initiatives. I just wanted to follow-up on a few of the fab sale questions. Keith, so from your last question, can we deduce that there are no other fabs that the company would -- would sell if we don't have a strong recovery? Or are there some things that, that you could execute on if we had a lackluster rather than a strong recovery?

伙計們，感謝 COGS 倡議的所有色彩。我只是想跟進一些晶圓廠銷售問題。基思，所以從你的最後一個問題中，我們能否推斷出如果我們沒有強勁的複蘇，公司不會出售其他晶圓廠？或者，如果我們的複蘇乏善可陳而不是強勁復甦，您是否可以執行一些事情？

Yes. We have no current plans. The outlook that we've got right now, we think the remaining network is appropriate. But as always, we will see what the future holds.

是的。我們目前沒有計劃。我們現在的前景，我們認為剩下的網絡是合適的。但一如既往，我們將看到未來會怎樣。

Got it. And then perhaps touching on 2 end market issues with one question. One, it looks like compute in the third quarter will be back to record highs. Can you give us a sense for how the mix of PC versus server power is evolving there in? And then with auto, I know you don't want to give a specific outlook for calendar '21. But do you feel with all the design wins you have in your secular growth areas that exiting '21, that business could be back towards prior record levels?

知道了。然後可能會用一個問題觸及 2 個終端市場問題。第一，看起來第三季度的計算量將回到歷史新高。您能否讓我們了解一下 PC 與服務器功能的組合是如何演變的？然後對於 auto，我知道你不想給出日曆 '21 的具體前景。但是，您是否覺得在您退出 21 世紀的長期增長領域中獲得的所有設計勝利，該業務可能會回到之前的創紀錄水平？

So yes, we're seeing good results there. And I think I would give kind of 2 pieces of the color: One, the infrastructure piece for the cloud continues to grow, and we see very sharp growth there. We think there was certainly some COVID-related acceleration on the client side. We don't see that diminishing here this year. We think that continues with a lot of the remote learning and remote interactions that are going on, people continue to upgrade various parts of their client systems. So I would say as we enter into the first quarter of next year, we still see a strong compute environment and should expect next year to be as good, if not better, from a growth perspective.

所以是的，我們在那裡看到了很好的結果。我想我會給出兩種顏色：第一，雲的基礎設施部分繼續增長，我們看到那裡的增長非常迅速。我們認為客戶端肯定有一些與 COVID 相關的加速。今年我們沒有看到這種情況在減少。我們認為，隨著大量遠程學習和遠程交互的進行，人們將繼續升級其客戶端系統的各個部分。所以我想說，當我們進入明年第一季度時，我們仍然看到一個強大的計算環境，並且從增長的角度來看，明年應該會一樣好，甚至更好。

And then on automotive?

然後在汽車上？

Automotive. Certainly, what we've seen major interruptions, as you know, in the first part of the year with manufacturing. As I mentioned, our customers are telling us that they are full steam ahead here as they've gone into Q3. And in each of those major customers around the world, their efforts in electric vehicles are accelerating and their efforts from an ADAS perspective are accelerating. So we are expecting to see a return to the above-market growth for our products in automotive next year.

汽車。當然，正如你所知，我們在今年上半年看到了製造業的重大中斷。正如我所提到的，我們的客戶告訴我們，他們已經進入第三季度，他們在這裡全速前進。在全球的每個主要客戶中，他們在電動汽車方面的努力都在加速，他們從 ADAS 角度的努力也在加速。因此，我們預計明年我們的汽車產品將恢復高於市場的增長。

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

下一個問題來自 Cowen 的 Matt Ramsay。

Keith, I wanted to follow-up on some of the PC and server power stuff. There's been some fairly big disruptions with one of the big microprocessor suppliers there and the future road map. And I just wondered, maybe you could step back and tell us how you guys are aligned on the server power side regardless of chip vendor or of OEM or ODM mix? And if that might change any of your forward outlook there?

基思，我想跟進一些 PC 和服務器電源方面的問題。那裡的一家大型微處理器供應商和未來的路線圖出現了一些相當大的中斷。我只是想知道，也許你可以退後一步，告訴我們你們如何在服務器電源方面保持一致，而不管芯片供應商或 OEM 或 ODM 組合如何？如果這可能會改變你在那裡的任何前瞻性前景？

No, we are well aligned with the various processor options for PCs and servers, and very well aligned with the model changes that they have in their portfolio. So we frankly think that it does change things for them, but from our perspective, all of them still need power, and we're well positioned.

不，我們與 PC 和服務器的各種處理器選項保持一致，並且非常符合他們產品組合中的模型變化。所以我們坦率地認為它確實改變了他們的事情，但從我們的角度來看，他們仍然需要權力，我們處於有利地位。

All right. Great. And just as a follow-up, I guess, you're 1 year on from closing Quantenna now. And if you just kind of step back and look where the design win traction has been and maybe the revenue trends since you closed the deal, just kind of level set where you were versus your expectation, I think that would be helpful.

好的。偉大的。作為後續行動，我想，你現在距離關閉 Quantenna 已經一年了。如果你只是退後一步，看看設計獲勝的牽引力在哪裡，也許是你完成交易後的收入趨勢，只是你與預期的水平設置，我認為這會有所幫助。

Okay. On the Quantenna, we are not achieving the revenue growth we had hoped. Certainly, the market events have had an impact on that. We are quite excited about the progress we're making with our new combination products for the client market and the teams there on the engineering side, trying to drive a low-power combination product for that market are making great progress. So what we're seeing out there is good excitement for the future designs, but less revenue than we had hoped for, originally.

好的。在 Quantenna 上，我們沒有實現我們希望的收入增長。當然，市場事件對此產生了影響。我們對我們為客戶市場開發的新組合產品所取得的進展感到非常興奮，而那裡的工程團隊試圖為該市場推出低功耗組合產品正在取得重大進展。因此，我們所看到的是對未來設計的興奮，但收入低於我們最初的預期。

Next question comes from the line of Harlan Sur of JPMorgan.

下一個問題來自摩根大通的Harlan Sur。

Within the Intelligent Sensing Group, we tend to focus on the automotive piece, which is the largest segment, growing at a double-digit CAGR. But it looks like the industrial and edge applications are seeing strong adoption, robotics, machine vision, smart retail. So excluding some of the legacy businesses, do you guys still see a double-digit growth CAGR in industrial and edge over the next few years? And what's the current mix of Industrial and edge within ISG?

在智能傳感組，我們傾向於專注於汽車領域，這是最大的細分市場，以兩位數的複合年增長率增長。但看起來工業和邊緣應用正在得到廣泛採用，機器人技術、機器視覺、智能零售。因此，除了一些傳統業務之外，你們是否仍然看到未來幾年工業和邊緣領域的複合年增長率達到兩位數？ ISG 目前的工業和邊緣組合是什麼？

So we do see a lot of strong growth coming. It's been offset by our pulling back from some of the very low-margin consumer-like security business, security cameras for homes, et cetera. So that's masked some of the great growth, but we are seeing the adoption there in the industrial area, in the automation area, and in the robotics area, actually pretty exciting. So we are expecting double-digit growth for all of those portions of the market, and of course, in automotive to continue. So after seeing the COVID impact this year, plus some retraction from some of the security business, I would expect to see that double digits returning in 2021.

所以我們確實看到了很多強勁的增長。它被我們從一些利潤率非常低的消費者類安全業務、家庭安全攝像頭等業務中撤出所抵消。所以這掩蓋了一些巨大的增長，但我們看到在工業領域、自動化領域和機器人領域的採用，實際上非常令人興奮。因此，我們預計所有這些市場部分都將實現兩位數的增長，當然，汽車領域也將繼續。因此，在看到今年 COVID 的影響以及一些安全業務的一些撤回之後，我預計 2021 年會看到兩位數的回報。

Yes. And then on the cloud-power, obviously, benefiting from the strong cloud server spending trends, but especially in servers, you guys are seeing a strong pick up in dollar content. I think it's been about like a 15% CAGR on dollar content over the past 4 years on the server platforms. You've got Sapphire Rapids from Intel ramping next year. I think you guys are anticipating about 25% dollar content step-up on the upgrade? Are you -- is that still how you kind of see dollar content improvements on a go-forward basis?

是的。然後在雲計算方面，顯然，受益於強勁的雲服務器支出趨勢，但尤其是在服務器方面，你們看到了美元含量的強勁回升。我認為過去 4 年服務器平台上美元內容的複合年增長率約為 15%。明年英特爾將推出 Sapphire Rapids。我想你們預計升級會增加 25% 的美元內容？你 - 這仍然是你如何看待美元內容在前進的基礎上有所改善嗎？

Yes. We're seeing it go from about $60 to $75 next year, is our expectation growth per server.

是的。我們預計明年它會從 60 美元左右漲到 75 美元，這是我們對每台服務器的預期增長。

Next question comes from the line of John Pitzer of Crédit Suisse.

下一個問題來自 Crédit Suisse 的 John Pitzer。

Keith, I'm just kind of curious, you talked about the impact of the geopolitical in Q3. Can you quantify it? And in your prepared comments, you said that you think it's now been fully derisked. Is that customer effectively now 0? And are you concerned that to date, the U.S. has just been targeting a single entity in China? What are the risks if that broadens out?

基思，我只是有點好奇，你談到了第三季度地緣政治的影響。你能量化嗎？在你準備好的評論中，你說你認為現在已經完全消除了風險。該客戶現在有效為 0 嗎？你是否擔心迄今為止，美國祇是針對中國的一個實體？如果擴大，會有什麼風險？

Yes. We are very concerned about some of the increasing tensions on global trade. Very much believe that global trade is essential for technology and the growth of semiconductors. So clearly, would not like to see further there. We don't get comment on specific customers, but the answer is no. It's not 0. Our revenue expectations from China or those customers. But the pieces that look likely to be impacted, we think, have all been impacted at this stage.

是的。我們非常關注全球貿易中一些日益緊張的局勢。非常相信全球貿易對於技術和半導體的增長至關重要。如此清楚，不想在那裡進一步看到。我們沒有得到對特定客戶的評論，但答案是否定的。它不是 0。我們對中國或那些客戶的收入預期。但我們認為，看起來可能受到影響的部分在現階段都已受到影響。

That's helpful. And then, Keith, as you guys ramp the 300-millimeter Fishkill facility, I'd be curious as to what end markets we think that we should think about that fab supporting? And you've been a long-standing member of the SIA. I'd be curious to get your view of the CHIPS Act, post the sale of the fab in Japan and in Belgium, what percent of your capacity is going to be U.S.-based? And how might that help you in the future if the CHIPS Act passes, especially around tax rate?

這很有幫助。然後，基思，當你們建造 300 毫米 Fishkill 設施時，我很好奇我們認為我們應該考慮支持該晶圓廠的哪些終端市場？你一直是 SIA 的長期會員。我很想知道你對 CHIPS 法案的看法，在日本和比利時出售晶圓廠後，你的產能中有多少百分比將來自美國？如果 CHIPS 法案獲得通過，這對您未來有何幫助，尤其是在稅率方面？

Okay. Two separate questions there. On the 300-millimeter, the markets there, we're ramping up initially power products, so all of the server and automotive and industrial applications that we talk about growing are going to be filling that up with power products. And then that will be followed afterwards with more and more sensor and analog products. The CHIPS Act, we think, is an important part of balancing out the supply chain. For ON Semiconductor, we actually have several facilities already here in the U.S. and with the addition of East Fishkill, the vast majority of our wafers will be coming out of the United States.

好的。那裡有兩個不同的問題。在 300 毫米的市場上，我們最初正在增加電源產品，因此我們談論的所有服務器、汽車和工業應用都在增長，都將用電源產品來填補。之後會出現越來越多的傳感器和模擬產品。我們認為，CHIPS 法案是平衡供應鏈的重要組成部分。對於 ON Semiconductor，我們實際上已經在美國擁有多個設施，加上 East Fishkill，我們的絕大部分晶圓將來自美國。

Your next question comes from the line of David O'Connor of Exane BNP Paribas.

你的下一個問題來自 Exane BNP Paribas 的 David O'Connor。

Maybe 1 or 2 follow-ups from some previous answers. Keith, you spoke about improved order activity in most end markets and geographies, which are the end markets that are still impacted or still seeing pockets of weakness? And also in orders, the long lead-term orders, has visibility there improved, too? Or is it more just a short lead-term orders? And I have a follow-up.

也許從以前的一些答案中得到 1 或 2 個跟進。基思，你談到了大多數終端市場和地區的訂單活動有所改善，哪些終端市場仍然受到影響或仍然出現疲軟？還有訂單，長期訂單，那裡的知名度是否也有所提高？還是只是短期的提前期訂單？我有一個後續行動。

Yes. I'll start in reverse order from a lead time orders and impact we're seeing there. Clearly, customers are using those lead times to place their orders, so we don't see any increase in long-term orders from a normal pattern. In fact, if anything, a little bit less of that and more of the order as our lead times dictate.

是的。我將從提前期訂單和我們在那裡看到的影響的相反順序開始。顯然，客戶正在使用這些交貨時間來下訂單，因此我們沒有看到正常模式的長期訂單有任何增加。事實上，如果有的話，那就是少一點，多一點訂單，因為我們的交貨時間決定了。

Relative to where we still see some softness. In general, as I mentioned, the handset business looks like it's going to be re-ramping later this year rather than earlier. And some of the business I mentioned earlier was security and industrial in China is a little bit softer than it was in Q2.

相對於我們仍然看到一些柔軟的地方。總的來說，正如我所提到的，手機業務看起來將在今年晚些時候而不是早些時候重新崛起。我之前提到的一些業務是中國的安全和工業比第二季度要軟一些。

That's helpful. And then maybe as my follow-up. It sounds like you're accelerating traction on the silicon carbide with some of the inverter wins that you mentioned. When you look at your overall design wins on silicon carbide, what's the phasing of those wins when we look out over the next maybe 3 years, starting in 2021? Is the bulk of those wins ramping 2022? Or is it more spread out over the next 3 years?

這很有幫助。然後也許作為我的後續行動。聽起來您正在通過您提到的一些逆變器勝利來加速碳化矽的牽引力。當您查看您在碳化矽上的總體設計勝利時，從 2021 年開始，我們展望未來可能 3 年時，這些勝利的階段是什麼？這些勝利中的大部分是在 2022 年取得的嗎？或者它會在未來 3 年內更加分散？

So yes, we have ramps every year and they accelerate, I would say, significant acceleration in 2022, but we're actually starting to ramp here at the end of this year. Through all next year, but I'd say the biggest impact is 2022.

所以是的，我們每年都有坡道，我想說，它們會在 2022 年顯著加速，但實際上我們在今年年底開始在這裡坡道。明年一整年，但我想說影響最大的是 2022 年。

Next question comes from the line of Tristan Gerra of Baird.

下一個問題來自 Baird 的 Tristan Gerra。

Longer-term structural question on gross margin. I understand the low utilization rates and the COVID-related charges. But your gross margin earlier this year came down below the 2011-'12, which I think was around 32% at the time. And yet your revenue base was about 1/3 lower than it is now. So is that mostly attributed to ramping capacity in 2018? Or are there mix of pricing effects as well? And also what was the pricing decline year-over-year and quarter-over-quarter in the just reported quarter?

毛利率的長期結構性問題。我了解低利用率和與 COVID 相關的費用。但今年早些時候你們的毛利率低於 2011-12 年，我認為當時約為 32%。然而你的收入基礎比現在低了大約 1/3。那麼，這是否主要歸因於 2018 年的產能提升？還是混合了定價效應？在剛剛報告的季度中，價格同比下降和環比下降是多少？

So we attribute the impact mostly due to COVID and due to the underutilization that's driven by -- as a result of that. Long term, we still are aiming, and we are confident that we can achieve that long-term goal of 43%. We don't see any pricing issues as we go through. Pricing has been pretty healthy. But I think that's it.

因此，我們將影響主要歸因於 COVID 以及由此導致的未充分利用。從長遠來看，我們仍然在瞄準，我們有信心能夠實現43%的長期目標。我們沒有看到任何定價問題。定價一直很健康。但我認為就是這樣。

Okay. And then any update that we should get on your acquisition strategy? Is that something that is basically going to remain unchanged with what we've seen in the past decade? Or is there any changes as a result of the environment and the manufacturing shift that's ongoing right now at the company?

好的。然後我們應該了解您的收購策略的任何更新？這是否與我們在過去十年中看到的基本上保持不變？還是由於公司目前正在進行的環境和製造轉變而導致任何變化？

So no change in basic philosophy. When the time is right and the opportunities are right, we certainly will be an interested party. But at this stage, there's no activity.

所以基本理念沒有改變。當時機成熟時，我們當然會感興趣。但在這個階段，沒有任何活動。

Next question comes from the line of Kevin Cassidy of Rosenblatt Securities.

下一個問題來自 Rosenblatt Securities 的 Kevin Cassidy。

When you announced the acquisition of the East Fishkill fab, you had said it was about $300 million in investments you're going to make into the fab. Out of the $400 million in your CapEx for this year, how much of that is going towards the $300 million for East Fishkill?

當您宣布收購 East Fishkill 晶圓廠時，您曾說過您將對該晶圓廠進行大約 3 億美元的投資。在今年 4 億美元的資本支出中，有多少用於 East Fishkill 的 3 億美元？

It is a significant portion of it that we are devoting and that should really give us the ability to ramp up in a faster and more meaningful way.

這是我們投入的很大一部分，這應該讓我們有能力以更快、更有意義的方式提升。

Okay. Great. And in the Niigata fab, what process nodes were being run there?

好的。偉大的。在 Niigata 工廠中，正在運行哪些工藝節點？

Those are mostly analog nodes for various mixed-signal products and the markets for that were everything from automotive to consumer.

這些主要是用於各種混合信號產品的模擬節點，其市場涵蓋從汽車到消費者的所有領域。

Next question comes from the line of Gary Mobley, Wells Fargo Securities.

下一個問題來自 Wells Fargo Securities 的 Gary Mobley。

In the interest of time, I'll post both of my questions. I'm curious to know how the potential divestiture sale of Niigata fab might impact any relationship that you have with some Japan-based automotive OEMs. And Bernard, you mentioned that distributor inventory was down a little quarter-over-quarter. Remind us of how -- by how far you need to go before you're back into your long-term range goal? And would you expect that distributor inventory to decrease again in the third quarter?

為了節省時間，我將發布我的兩個問題。我很想知道新潟工廠的潛在剝離出售可能會如何影響您與一些日本汽車原始設備製造商的關係。伯納德，你提到經銷商庫存環比下降了一點。提醒我們如何 - 在您回到長期目標之前需要走多遠？您是否預計第三季度經銷商庫存會再次下降？

Yes. So I'll take that question before. So we are at the high end of our guide, so we're not really not really in a -- outside of our bonds. We also build the inventory in the -- in anticipation of a recovery, so that should help us to serve customers in -- during the fourth quarter.

是的。所以我會先回答這個問題。所以我們處於我們指南的高端，所以我們並不是真的不在我們的債券之外。我們還在預期復甦的情況下建立了庫存，這樣應該有助於我們在第四季度為客戶提供服務。

Yes. And on the relationships, clearly value our customers, and we're going to make sure that the transitions there do not impact them. We have a much larger 8-inch facility in Aizu, Japan. And so what we intend to do is use that for those customers in Japan that need that continuity of local supply.

是的。在關係方面，明確重視我們的客戶，我們將確保那裡的過渡不會影響他們。我們在日本會津有一個更大的 8 英寸工廠。因此，我們打算做的是將其用於需要本地供應連續性的日本客戶。

Next question comes from the line of Nik Todorov of Longbow Research.

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

I wonder I think, last quarter, you announced a $50 million cost-saving program. I just wonder how much of that has gone through. And how much is left to go?

我想知道，上個季度，您宣布了一項 5000 萬美元的成本節約計劃。我只是想知道其中經歷了多少。還剩下多少？

Well, we did accelerate and did that. So our guidance for the third quarter shows that we are continuing to be at the low point that we achieved in the second quarter. So for the most part, it's done.

好吧，我們確實加速了並做到了。因此，我們對第三季度的指導表明，我們仍處於第二季度達到的低點。所以在大多數情況下，它已經完成了。

Okay. Great. And a follow-up quickly. I think the gross margin -- the free cash flow generation was much stronger than expected. I wonder if you have any thoughts on how should we think about 2020 outlook for free cash flow. And then any thoughts on resuming the buyback?

好的。偉大的。並迅速跟進。我認為毛利率——自由現金流的產生比預期的要強得多。我想知道您是否對我們應該如何看待 2020 年的自由現金流前景有任何想法。然後有關於恢復回購的想法嗎？

So at this stage, on a prudent way, we are -- we still keep the share buyback program on hold. We are still prudent on that front, that will be for later on. The free cash flow, we talked about our CapEx being $80 million to $90 million for the third quarter, it's $400 million for the year. And the rest will -- should come directly from the P&L. Don't expect any other significant disruptions in the free cash flow, it should be mainly a result of the P&L, minus the CapEx of $80 million to $90 million in the third quarter and $400 million for the year.

因此，在這個階段，我們以謹慎的方式——我們仍然擱置股票回購計劃。我們在這方面仍然很謹慎，以後再說。自由現金流，我們談到第三季度的資本支出為 8000 萬至 9000 萬美元，全年為 4 億美元。其餘的將 - 應該直接來自損益表。不要指望自由現金流有任何其他重大中斷，這應該主要是損益的結果，減去第三季度 8000 萬至 9000 萬美元的資本支出和全年 4 億美元。

Next question comes from the line of Vivek Arya of Bank of America Securities.

下一個問題來自美國銀行證券公司的 Vivek Arya。

I think, Keith, you mentioned that automotive customers will be at full production rates in Q3. I just wanted to make sure if I heard that properly? Or the real question behind that is, how far below do you think your auto customers are below their prior peaks of production? And how does that compare to your automotive sales versus the prior peak?

我想，基思，你提到汽車客戶將在第三季度達到滿負荷生產率。我只是想確定我是否聽對了？或者這背後的真正問題是，您認為您的汽車客戶比他們之前的生產高峰低了多遠？這與您的汽車銷售與之前的峰值相比如何？

Yes. So my comment there is that during the third quarter, they should all reach full production. They weren't all full production from day 1. So it's going to vary a bit by, by end customer. But like I said, they're all bullish of getting back to what they consider full production during the third quarter.

是的。所以我的評論是，在第三季度，它們都應該達到滿負荷生產。從第一天開始，它們還沒有完全投入生產。因此最終客戶會有所不同。但正如我所說，他們都看好第三季度恢復到他們認為的滿負荷生產。

But if they are at full production, then why are your automotive revenues still 15%, 20% below your prior peaks?

但是，如果它們已全面投產，那麼為什麼您的汽車收入仍比之前的峰值低 15%、20%？

Let's try again. So they aren't full production for the entire quarter. They're achieving full production rates during the quarter. So they're still ramping, I guess, is the simple way to interpret that.

讓我們再試一次。所以整個季度他們都沒有滿負荷生產。他們在本季度實現了全面生產率。所以我猜他們仍在增加，這是解釋這一點的簡單方法。

Got it. And as a quick follow-up, if say, conceptually, your Q4 sales are flattish, should we assume that gross margins also stay flattish? Or are there other trends that could take them higher or lower?

知道了。作為快速跟進，如果從概念上講，您的第四季度銷售額持平，我們是否應該假設毛利率也保持持平？還是有其他趨勢可以使它們走高或走低？

So I'm not postulating on revenues in Q4, but you should see continued improvement on the gross margin front as the expenses around COVID go down, and we continue to get traction in our factories from Q2 levels.

因此，我沒有假設第四季度的收入，但隨著圍繞 COVID 的支出下降，你應該會看到毛利率持續改善，而且我們的工廠從第二季度開始繼續受到關注。

Next question comes from the line of Shawn Harrison of Loop Capital.

下一個問題來自 Loop Capital 的 Shawn Harrison。

Keith, I want to go back to auto as well. But more of it looks like in the first quarter you -- auto outperformed production by about 15 points, it was about 20 points in the second quarter. It looks like you picked up $5 to $7 of content per vehicle on average this year. Just maybe you could highlight where you've seen the content increase year-over-year? And do you expect -- I mean I know it's typically a high single-digit outperformance of production, but it looks like you'll be well ahead of down 20% for the year if this content trend continues?

基思，我也想回到汽車行業。但更多的是在第一季度你 - 汽車錶現優於生產約 15 個百分點，第二季度約為 20 個百分點。看起來你今年平均每輛車獲得了 5 到 7 美元的內容。也許你可以強調你看到內容逐年增加的地方？你是否期望 - 我的意思是我知道這通常是一個高個位數的生產表現，但如果這種內容趨勢繼續下去，看起來你今年將遠遠領先於下降 20%？

Yes. As I mentioned, the 2 trends on electrification and the ADAS, the safety side, continue to drive more dollar content for us. And as you pointed out, I think it's showing up in less declines than the marketplace overall as opposed to big gains. So hopefully, as the market turns around, you'll see those turn into big gains.

是的。正如我提到的，電氣化和安全方面的 ADAS 這兩個趨勢繼續為我們帶來更多的美元內容。正如你所指出的，我認為它的跌幅低於整體市場，而不是大漲。因此，希望隨著市場好轉，你會看到這些變成巨大的收益。

But it really is electric power, in the EV side and all of the ADAS applications starting to grow that continues to drive those trends.

但真正是電力，在電動汽車方面和所有 ADAS 應用開始增長，繼續推動這些趨勢。

Okay. And then Bernard, do you say you would expect internal inventory dollars to decline sequentially in the third quarter? Or was that just distribution?

好的。然後伯納德，你說你預計內部庫存美元在第三季度會連續下降嗎？還是那隻是分發？

We expect distribution down. And we expect to remain probably flattish in terms of inventory dollars in the third quarter, but down in terms of days.

我們預計分配下降。我們預計第三季度庫存美元可能持平，但天數下降。

Next question comes from the line of Craig Hettenbach of Morgan Stanley.

下一個問題來自摩根士丹利的 Craig Hettenbach。

Keith, just a question on EV. Since you do both IGBTs as well as silicon carbide, just want to get a sense of how you're seeing that market develop? And as -- particularly from a silicon carbide adoption, what are some of the signals you're getting from customers that they're moving forward versus that trade-off with IGBTs?

基思，只是關於 EV 的問題。既然你們既做 IGBT 也做碳化矽，只是想了解一下你們是如何看待這個市場發展的？而且 - 特別是從碳化矽的採用中，您從客戶那裡得到的一些信號是什麼，表明他們正在向前發展，而不是與 IGBT 進行權衡？

We're still seeing the predominance of the lower-cost vehicles go IGBT, and the high-end vehicles going silicon carbide, is the trend that we're seeing, a very definite bifurcation going on there. And that is geography independent. So we think there will be good growth in both sectors going forward.

我們仍然看到低成本車輛的優勢是 IGBT，而高端車輛是碳化矽，這是我們看到的趨勢，那裡正在發生非常明確的分歧。那是獨立於地理的。因此，我們認為這兩個行業未來都會有良好的增長。

Got it. And then just a follow-up to some of the questions that have been asked on the geopolitical issues. Do you have a rough sense that you can quantify roughly for Q3 what the impact is to the guidance? And then do you think there were any pull forwards ahead of that before some of those issues arose?

知道了。然後就地緣政治問題提出的一些問題進行跟進。您是否有一個粗略的感覺，您可以粗略地量化 Q3 對指南的影響？然後，您認為在其中一些問題出現之前，是否有任何進展？

So we're -- I'll start with the end of that. We're not expecting any additional issues there. We think that the new rule giving is kind of at a pause for a bit. So I'm not expecting any further impacts or surprises on that number. I don't know that we've got a number we're prepared to handle because it is a specific customer, and we don't share that type of information.

所以我們 - 我將從結束開始。我們預計不會有任何其他問題。我們認為新規則的發布有點暫停。因此，我預計該數字不會有任何進一步的影響或意外。我不知道我們有沒有準備好處理的號碼，因為它是特定客戶，我們不會共享此類信息。

There are no further questions at this time. Presenters, you may proceed.

目前沒有其他問題。主持人，您可以繼續。

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

謝謝大家今天加入電話會議。我們期待在本季度的各種會議上見到您。再見。

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

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。祝你有美好的一天。