安森美 (ON) 2018 Q1 法說會逐字稿

Good day, ladies and gentlemen, and welcome to the ON Semiconductor First Quarter 2018 Earnings Conference Call.

女士們，先生們，美好的一天，歡迎參加安森美半導體 2018 年第一季度收益電話會議。

(Operator Instructions)

（操作員說明）

As a reminder, this call is being recorded.

提醒一下，此通話正在錄音中。

I would now like to introduce your host for today's conference, Parag Agarwal, VP of Corporate Development and Investor Relations.

我現在想介紹一下今天會議的主持人，企業發展和投資者關係副總裁 Parag Agarwal。

You may begin.

你可以開始了。

Thank you, Sara.

謝謝你，薩拉。

Good morning, and thank you for joining ON Semiconductor Corporation's First Quarter 2018 Quarterly Results Conference Call.

早上好，感謝您參加安森美半導體公司 2018 年第一季度季度業績電話會議。

I'm joined today by Keith Jackson, our President and CEO; and Bernard Gutmann, our CFO.

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。

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

本次電話會議正在我們網站 www.onsemi.com 的投資者關係部分進行網絡直播。

A replay of this broadcast, along with our earnings release for the first quarter of 2018, will be available on our website approximately 1 hour following this conference call, and a recorded broadcast will be available for approximately 30 days following this conference call.

本次廣播的重播以及我們 2018 年第一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提供，錄製的廣播將在本次電話會議後約 30 天內提供。

The script for today's call and additional information related to our end markets, business segments, geographies, channels and share count 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、渠道和股票數量相關的其他信息也發佈在我們的網站上。

Our earnings release and this presentation include certain non-GAAP financial measures.

我們的收益發布和本演示文稿包括某些非公認會計準則財務指標。

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

這些非 GAAP 財務指標與 GAAP 下最直接可比指標的對賬在我們的收益發布中，該發佈在我們網站的投資者關係部分單獨發布。

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

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。

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

相信、估計、預測、預期、打算、可能、期望、將、計劃、應該或類似的表達方式旨在識別前瞻性陳述。

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

我們希望提醒您，此類陳述存在風險和不確定性，可能導致實際事件或結果與預測存在重大差異。

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 Forms 10-Ks, Form 10-Qs and other filings with the Securities and Exchange Commission.

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-Ks 表格、10-Qs 表格和其他文件中進行了描述。

Additional factors are described in our earnings release for the first quarter of 2018.

我們在 2018 年第一季度的收益報告中描述了其他因素。

Our estimates 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 the law.

我們的估計可能會發生變化，公司不承擔更新前瞻性陳述以反映實際結果、更改的假設或其他因素的義務，除非法律要求。

For all synergies-related discussion on this call, we have used Fairchild's 2015 results as the base for all comparisons.

對於本次電話會議中所有與協同效應相關的討論，我們使用了飛兆半導體 2015 年的結果作為所有比較的基礎。

We will host our 2019 Analyst Day on March 8 in Scottsdale, Arizona.

我們將於 3 月 8 日在亞利桑那州斯科茨代爾舉辦 2019 年分析師日。

We will send the invitations for the event shortly.

我們將盡快發送活動邀請函。

Now let me turn it over to Bernard Gutmann, who will provide an overview of the first quarter 2018 results.

現在讓我把它交給伯納德·古特曼，他將概述 2018 年第一季度的業績。

Bernard?

伯納德?

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

謝謝你，帕拉格，謝謝大家今天加入我們。

We delivered yet another quarter of strong financial results, which exceeded our guidance and Street consensus on all key metrics.

我們又交付了四分之一的強勁財務業績，超出了我們在所有關鍵指標上的指導和華爾街共識。

Near to midterm outlook for our business remains strong.

我們業務的近中期前景依然強勁。

Furthermore, long-term outlook for our business continues to improve as we are seeing an inflection in long-term demand for our products.

此外，由於我們看到對我們產品的長期需求出現拐點，我們業務的長期前景繼續改善。

We continue to expand our gross margin and operating margins, and we are making prudent investments to drive future revenue growth and gross margin expansion -- and margin expansion.

我們繼續擴大我們的毛利率和營業利潤率，我們正在進行審慎的投資，以推動未來的收入增長和毛利率擴張——以及利潤率擴張。

With strong revenue growth, coupled with margin expansion, our free cash flow generation remains robust.

憑藉強勁的收入增長以及利潤率的擴張，我們的自由現金流產生仍然強勁。

We're making strong progress towards our target financial model.

我們正在朝著我們的目標財務模型邁進。

We continue to see solid strength in our business.

我們繼續看到我們業務的強大實力。

Indications from our customers and macroeconomic data point to continuing strength in demand for our products in near to midterm.

我們的客戶和宏觀經濟數據表明，在近中期，對我們產品的需求持續強勁。

Our design win pipeline continues to expand, driven by a strong product portfolio for emerging and fast-growing applications in the automotive and industrial end markets.

在面向汽車和工業終端市場新興和快速增長應用的強大產品組合的推動下，我們的設計獲勝渠道不斷擴大。

Global macroeconomic environment remains highly favorable, and we're seeing strong demand from all geographies.

全球宏觀經濟環境仍然非常有利，我們看到來自所有地區的強勁需求。

We see an upwards inflection in long-term demand for our products, especially for automotive and industrial end markets.

我們看到對我們產品的長期需求出現上升趨勢，尤其是汽車和工業終端市場。

This inflection in demand is driven by strong traction of our power management products for medium- and high-voltage applications.

需求的這種變化是由我們的電源管理產品在中高壓應用中的強大牽引力推動的。

We continue to further strengthen our position in imaging market for automotive and industrial applications, and demand outlook for our imaging products continues to strengthen.

我們繼續進一步鞏固我們在汽車和工業應用成像市場的地位，我們的成像產品的需求前景繼續加強。

We have established ourselves as a strategic long-term partner for our customers, and our customers are increasingly relying on us to meet long-term demand for power management and sensor semiconductor products.

我們已將自己確立為客戶的戰略性長期合作夥伴，我們的客戶越來越依賴我們來滿足對電源管理和傳感器半導體產品的長期需求。

With increasing strategic engagement with us, many customers are now asking us to enter into long-term supply agreements.

隨著與我們的戰略合作不斷增加，許多客戶現在要求我們簽訂長期供應協議。

Accelerating long-term demand for our products and customer requests for long-term supply agreements necessitate us to increase the level of investments in our manufacturing capacity.

加速對我們產品的長期需求和客戶對長期供應協議的要求，使我們有必要增加對我們製造能力的投資水平。

We continue to invest to drive our revenues and margins.

我們繼續投資以提高我們的收入和利潤率。

We are also increasing our investments in our captive raw wafer manufacturing capacity in the Czech Republic.

我們還在增加對捷克共和國自備原始晶圓製造能力的投資。

The primary objective of our increased investment in our raw wafer manufacturing capacity is to offset the impact of steep rise in market prices for raw wafers.

我們增加對原始晶圓製造能力的投資的主要目標是抵消原始晶圓市場價格急劇上漲的影響。

This investment should help us expand our margins as we don't expect any moderation in raw wafer pricing for the foreseeable future.

這項投資應有助於我們擴大利潤率，因為我們預計在可預見的未來，原始晶圓價格不會出現任何放緩。

I must point out that we're among a very few semiconductor companies with the capability to manufacture their own raw wafers.

我必須指出，我們是少數有能力製造自己的原始晶圓的半導體公司之一。

As a result of our increased capital investment, our capital intensity for 2018 and 2019 will likely be in the 8% to 9% range as opposed to our target of 7%.

由於我們增加了資本投資，我們 2018 年和 2019 年的資本密集度可能會在 8% 到 9% 的範圍內，而我們的目標是 7%。

As I indicated earlier, the increase in capital expenditure is driven by the need to make investments to adjust to higher-growth environment and to further improve our manufacturing cost structure.

正如我之前指出的，資本支出的增加是由於需要進行投資以適應更高增長的環境並進一步改善我們的製造成本結構。

We believe that after making higher capital investments in 2018 and '19, our long-term capital intensity should come down to 7%.

我們認為，在 2018 年和 19 年進行更高的資本投資後，我們的長期資本密集度應降至 7%。

Free cash flow generation remains a key priority for the company.

自由現金流的產生仍然是公司的一個關鍵優先事項。

Despite higher capital investments, we expect to generate approximately $800 million of free cash flow in 2018.

儘管資本投資增加，我們預計 2018 年將產生約 8 億美元的自由現金流。

We intend to use this free cash flow for deleveraging and share repurchases.

我們打算將這一自由現金流用於去槓桿和股票回購。

I am very pleased to announce that we have reinitiated our stock repurchase program in the second quarter.

我很高興地宣布，我們已經在第二季度重新啟動了股票回購計劃。

Given our accelerating momentum in key strategic markets and our road map for margin expansion and free cash flow generation, we are very upbeat about our future outlook, and we believe that repurchase of our shares at current price level is a very attractive use of our cash.

鑑於我們在關鍵戰略市場的加速勢頭以及我們的利潤率擴張和自由現金流產生的路線圖，我們對未來前景非常樂觀，我們相信以當前價格水平回購我們的股票是對我們現金的非常有吸引力的用途.

Now let me provide you with additional details on our first quarter 2018 results.

現在讓我為您提供有關我們 2018 年第一季度業績的更多詳細信息。

Total revenue for the first quarter of 2018 was $1.378 billion, a decrease of 4% as compared to GAAP revenue of $1.437 billion in the first quarter of 2017.

2018 年第一季度總收入為 13.78 億美元，與 2017 年第一季度 GAAP 收入 14.37 億美元相比下降 4%。

Our revenue for the first quarter increased by 7% as compared to non-GAAP revenue of $1.28 billion in the first quarter of 2017.

與 2017 年第一季度的非公認會計原則收入 12.8 億美元相比，我們第一季度的收入增長了 7%。

Recall that in the first quarter of 2017, we had a onetime benefit of $155 million to our revenue due to the change from sell-through to sell-in revenue recognition.

回想一下，在 2017 年第一季度，由於從銷售收入確認轉變為銷售收入確認，我們的收入一次性獲得了 1.55 億美元的收益。

GAAP net income for the first quarter was $0.31 per diluted share as compared to $0.18 in the first quarter of 2017.

第一季度 GAAP 淨收入為每股攤薄收益 0.31 美元，而 2017 年第一季度為 0.18 美元。

Non-GAAP net income for the first quarter was $0.40 per diluted share as compared to $0.27 in the first quarter of 2017.

第一季度非美國通用會計準則淨利潤為每股攤薄收益 0.40 美元，而 2017 年第一季度為 0.27 美元。

GAAP and non-GAAP gross margin for the first quarter was 37.6%.

第一季度 GAAP 和非 GAAP 毛利率為 37.6%。

On a GAAP basis, our first quarter gross margin improved by 260 basis points year-over-year, and our non-GAAP gross margin -- on a non-GAAP basis, gross margin improved by 220 basis points year-over-year.

在 GAAP 基礎上，我們的第一季度毛利率同比增長 260 個基點，我們的非 GAAP 毛利率——在非 GAAP 基礎上，毛利率同比增長 220 個基點。

This strong gross margin performance was driven by solid operational execution and improved mix resulting from higher contribution from our automotive, industrial and server businesses.

這種強勁的毛利率表現是由穩健的運營執行和汽車、工業和服務器業務的更高貢獻帶來的改善組合推動的。

With tailwinds from additional manufacturing synergies from Fairchild, mix improvement and portfolio optimization, we expect to make strong progress towards our target model in the current year.

借助飛兆半導體的額外製造協同效應、組合改進和產品組合優化，我們預計今年將在我們的目標模型方面取得重大進展。

GAAP operating margin for the first quarter of 2018 was 13.5% as compared to 12.7% in the first quarter of 2017.

2018 年第一季度的 GAAP 營業利潤率為 13.5%，而 2017 年第一季度為 12.7%。

Our non-GAAP operating margin for the first quarter of 2018 was 15.7%, an increase of approximately 250 basis points over 13.2% in the first quarter of 2017.

我們 2018 年第一季度的非公認會計原則營業利潤率為 15.7%，比 2017 年第一季度的 13.2% 增加了約 250 個基點。

On a year-over-year non-GAAP revenue increase of 7% for the first quarter of 2018, our non-GAAP operating income increased by 28%.

2018 年第一季度非 GAAP 收入同比增長 7%，我們的非 GAAP 營業收入增長了 28%。

This strong operating income performance demonstrates the leverage and strength of our operating model.

這種強勁的營業收入表現證明了我們運營模式的槓桿作用和實力。

GAAP operating expenses for the first quarter were $332 million as compared to $320 million in the first quarter of 2017.

第一季度 GAAP 運營費用為 3.32 億美元，而 2017 年第一季度為 3.2 億美元。

Non-GAAP operating expenses for the first quarter were $301 million as compared to $285 million in the first quarter of 2017.

第一季度非美國通用會計準則運營費用為 3.01 億美元，而 2017 年第一季度為 2.85 億美元。

Operating expenses for the first quarter were higher than the midpoint of the guidance due to higher revenue and increased R&D investments to support newly emerging opportunities in automotive and industrial end markets.

由於收入增加和研發投資增加以支持汽車和工業終端市場新出現的機會，第一季度的運營費用高於指引的中點。

We expect our non-GAAP operating expenses as a percent of revenue to continue to decline for the remainder of the year, and we expect to make strong progress in 2018 towards our target non-GAAP operating expense intensity of 21%.

我們預計我們的非美國通用會計準則運營費用佔收入的百分比將在今年剩餘時間內繼續下降，我們預計 2018 年將在實現非美國通用會計準則運營費用強度 21% 的目標方面取得強勁進展。

First quarter free cash flow was $127 million, and operating cash flow was $226.5 million.

第一季度自由現金流為 1.27 億美元，經營現金流為 2.265 億美元。

Capital expenditures during the first quarter were $100 million, which equate to a capital intensity of 7%.

第一季度的資本支出為 1 億美元，相當於 7% 的資本密集度。

We continue to delever our balance sheet, and in the first quarter, we used $136 million to pay down our debt.

我們繼續去槓桿化我們的資產負債表，在第一季度，我們用了 1.36 億美元來償還我們的債務。

We exited first quarter of 2018 with cash and cash equivalents of $925 million as compared to $949 million in the first quarter of 2017.

2018 年第一季度，我們的現金和現金等價物為 9.25 億美元，而 2017 年第一季度為 9.49 億美元。

At the end of the first quarter of 2018, days of inventory on hand were 123 days, up by 8 days as compared to 115 days at the end of the fourth quarter of 2017.

2018年一季度末，庫存天數123天，較2017年四季度末的115天增加8天。

The increase in inventory was driven by expectation of continuing strong demand in our products in the near to midterm.

庫存增加是由於預期我們的產品在近中期持續強勁的需求。

Semiconductor industry supply has been strained in recent months due to a strong demand environment.

由於強勁的需求環境，近幾個月來半導體行業供應緊張。

And by maintaining an adequate level of inventory in line with expected demand, we want to ensure that we are able to meet our customer requirements.

通過保持符合預期需求的充足庫存水平，我們希望確保我們能夠滿足客戶的要求。

We expect our internal inventories to decline in terms of days during the second quarter of 2018.

我們預計我們的內部庫存將在 2018 年第二季度按天數下降。

After successive declines in the last 3 quarters, distribution inventory went up in the first quarter.

繼前三個季度連續下降後，一季度分銷庫存上升。

This increase was driven by expectation of strong distribution sell-through in the second quarter.

這一增長是由第二季度強勁的分銷銷售預期推動的。

We expect distribution inventories to remain within our normal range of 11 to 13 weeks in the mid -- near term.

我們預計中短期內分銷庫存將保持在 11 至 13 週的正常範圍內。

To mitigate the risk of excessive inventory in the channel, we are proactively managing inventory in the distribution channel.

為了降低渠道庫存過多的風險，我們正在積極管理分銷渠道中的庫存。

We have implemented systems to ensure that distributors do not carry more inventory than that is needed to support 11 to 13 weeks of resales.

我們已實施系統以確保分銷商的庫存不會超過支持 11 至 13 周轉售所需的庫存。

For the first quarter of 2018, our lead times were up slightly quarter-over-quarter.

2018 年第一季度，我們的交貨時間環比略有增長。

Our global factory utilization for the first quarter was slightly up quarter-over-quarter.

我們第一季度的全球工廠利用率環比略有上升。

Now let me provide you with an update on performance of our business units, starting with Power Solutions Group or PSG.

現在讓我向您介紹我們業務部門的最新業績，從 Power Solutions Group 或 PSG 開始。

Revenue for PSG was $693 million.

PSG 的收入為 6.93 億美元。

Revenue for Analog Solutions Group for the first quarter of 2018 was $496 million, and revenue for the Image Sensor Group was $189 million.

模擬解決方案集團 2018 年第一季度的收入為 4.96 億美元，圖像傳感器集團的收入為 1.89 億美元。

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

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。

Keith?

基思？

Thanks, Bernard.

謝謝，伯納德。

First quarter of 2018 was another successive quarter of strong results and solid, all-around performance.

2018 年第一季度是又一個連續季度取得強勁業績和穩健、全面的業績。

We continue to deliver strong revenue growth along with solid margin expansion and robust free cash flow generation.

我們繼續實現強勁的收入增長，同時實現穩健的利潤率擴張和強勁的自由現金流產生。

Our momentum in key strategic markets continues to accelerate, driven by new products and our exposure to the fastest-growing subsegments in automotive and industrial markets.

在新產品以及我們接觸汽車和工業市場增長最快的細分市場的推動下，我們在關鍵戰略市場的發展勢頭繼續加快。

We are seeing strong ADAS, LED lighting, machine vision and energy efficiency applications.

我們看到了強大的 ADAS、LED 照明、機器視覺和能效應用。

With tailwinds from increasing favorable macroeconomic conditions and strong momentum in our business, we are well positioned to make strong progress towards our target financial model in 2018.

隨著宏觀經濟條件日益有利和我們業務強勁勢頭的推動，我們有能力在 2018 年朝著我們的目標財務模式取得強勁進展。

Business conditions remain favorable, and demand continues to strengthen across most end markets.

商業環境仍然有利，大多數終端市場的需求繼續增強。

Pricing continues to be benign as compared to historic trends.

與歷史趨勢相比，定價繼續保持良性。

We are seeing strong demand for our products in automotive and industrial end markets.

我們看到汽車和工業終端市場對我們產品的強勁需求。

As I've indicated in recent earnings calls, our business today is driven by sustainable secular growth drivers in the fastest-growing semiconductor end markets as opposed to being driven by macroeconomic and industry cyclicality a few years ago.

正如我在最近的財報電話會議中所指出的那樣，我們今天的業務是由增長最快的半導體終端市場的可持續長期增長驅動力驅動的，而不是幾年前受到宏觀經濟和行業周期性的驅動。

Through our investments over the last many years in high-growth segments and in highly differentiated products in automotive, industrial and communications end markets, we have radically transformed the nature of our business.

通過過去多年對汽車、工業和通信終端市場的高增長細分市場和高度差異化產品的投資，我們從根本上改變了我們的業務性質。

Customers are increasingly relying on us as a key provider of enabling technologies for newly emerging and disruptive applications in automotive and industrial end markets.

客戶越來越依賴我們作為支持技術的主要供應商，為汽車和工業終端市場的新興和顛覆性應用提供支持。

The sustained demand for semiconductors over the past several quarters has put pressure on the industry's ability to meet demand.

過去幾個季度對半導體的持續需求給該行業滿足需求的能力帶來了壓力。

We expect the strength in demand to continue for the foreseeable future, driven primarily by structural changes in the end market dynamics and a strong global macroeconomic environment.

我們預計，在可預見的未來，需求的強勁勢頭將主要受到終端市場動態的結構性變化和強勁的全球宏觀經濟環境的推動。

We expect demand for semiconductors from automotive and industrial end markets to continue to grow at a steady pace for the next few years.

我們預計未來幾年汽車和工業終端市場對半導體的需求將繼續穩定增長。

Furthermore, revival of computing end market by artificial intelligence and data centers and emergence of new applications, such as IoT, should result in strong demand for a broad array of semiconductor products.

此外，人工智能和數據中心對計算終端市場的複興以及物聯網等新應用的出現，將導致對各種半導體產品的強勁需求。

Given the increasingly strategic nature of our engagement with our customers and generally tight semiconductor industry supply environment, many customers now want to enter into a long-term supply agreement with us.

鑑於我們與客戶接觸的戰略性越來越強，以及半導體行業供應環境普遍緊張，許多客戶現在希望與我們簽訂長期供應協議。

To ensure that we are well positioned to address our customers' demand, we intend to put in capacity to address areas of strategic thrust in automotive and industrial end markets.

為確保我們能夠很好地滿足客戶的需求，我們打算投入能力解決汽車和工業終端市場的戰略重點領域。

We're also making strong progress in expanding our capacity in our 8-inch joint venture fab in Japan.

我們還在擴大我們在日本的 8 英寸合資工廠的產能方面取得了重大進展。

As Bernard noted in his remarks, prices for raw wafers have increased substantially in the last few months.

正如伯納德在他的講話中指出的那樣，在過去幾個月中，原始晶圓的價格大幅上漲。

We're among the very few semiconductor device manufacturers with captive wafer manufacturing operations.

我們是極少數擁有專屬晶圓製造業務的半導體設備製造商之一。

We have been able to moderate the impact of rise in cost of raw wafers.

我們已經能夠緩和原始晶圓成本上漲的影響。

Given our outlook for semiconductor industry growth for the next few years, we believe that prices for raw materials for semiconductor manufacturing will continue to be a challenge for the semiconductor industry.

鑑於我們對未來幾年半導體行業增長的展望，我們認為半導體製造原材料的價格將繼續成為半導體行業的挑戰。

We are raising our investment to further extend our competitive advantage from our captive raw wafer operations.

我們正在增加投資，以進一步擴大我們自備原始晶圓業務的競爭優勢。

With higher level of investments in strategic capacity for fast-growing products and in our captive raw wafer manufacturing operations, we expect to see a rise in our capital intensity for 2018 and 2019.

隨著對快速增長產品的戰略產能和我們的專屬原始晶圓製造業務的更高水平的投資，我們預計 2018 年和 2019 年的資本密集度將會上升。

We expect capital intensity of 8% to 9% for 2018 and 2019, slightly higher than our target model of 7%.

我們預計 2018 年和 2019 年的資本密集度為 8% 至 9%，略高於我們 7% 的目標模型。

As Bernard indicated in his remarks, this higher level of capital intensity is driven by the need to make investments to adjust to better expected demand for our products.

正如伯納德在他的講話中指出的那樣，這種更高水平的資本密集度是由於需要進行投資以適應對我們產品更好的預期需求。

We expect capital intensity to subside to 7% after 2019.

我們預計 2019 年後資本密集度將下降至 7%。

Our margin performance continues to be stellar.

我們的利潤率表現繼續出色。

Our operating model has shown strong operating leverage.

我們的經營模式顯示出強大的經營槓桿。

As Bernard mentioned earlier, on year-over-year revenue increase of 7% for the first quarter of 2018, our non-GAAP operating income increased by 28%.

正如伯納德之前提到的，在 2018 年第一季度收入同比增長 7% 的情況下，我們的非公認會計準則營業收入增長了 28%。

Insourcing of Fairchild's back-end operations remains on track, and this insourcing should drive meaningful margin expansion in 2018 and 2019.

Fairchild 後端業務的內包仍在進行中，這種內包應該會推動 2018 年和 2019 年的利潤率大幅增長。

At the same time, mix shift towards margin-rich automotive and industrial end markets and further divestiture of noncore businesses should drive additional margin expansion despite increases in prices for raw material.

與此同時，儘管原材料價格上漲，但向利潤豐厚的汽車和工業終端市場的混合轉變以及對非核心業務的進一步剝離應該會推動利潤率進一步擴大。

Now I'll provide details of the progress in our various end markets for the first quarter of 2018.

現在，我將詳細介紹 2018 年第一季度我們各個終端市場的進展情況。

Revenue for the automotive market in the first quarter was $445 million and represented 32% of our revenue in the first quarter.

第一季度汽車市場的收入為 4.45 億美元，占我們第一季度收入的 32%。

First quarter automotive revenue grew by 8% year-over-year.

第一季度汽車收入同比增長 8%。

For the first quarter, we again saw strong, broad-based demand for most product lines.

在第一季度，我們再次看到對大多數產品線的強勁、廣泛的需求。

We continue to see strong demand for our image sensors for ADAS applications.

我們繼續看到用於 ADAS 應用的圖像傳感器的強勁需求。

With a complete line of image sensors, including 1, 2 and 8 megapixels, we're the only provider of complete range of pixel densities on a single platform for the next generation of ADAS and autonomous driving applications.

憑藉包括 1、2 和 8 兆像素在內的完整圖像傳感器系列，我們是唯一一家在單一平台上為下一代 ADAS 和自動駕駛應用提供全系列像素密度的供應商。

We believe that a complete line of image sensors on a single platform provides us with significant competitive advantage, and we continue working to extend our technology lead over our competitors.

我們相信，單一平台上的完整圖像傳感器系列為我們提供了顯著的競爭優勢，我們將繼續努力擴大我們對競爭對手的技術領先優勢。

Our design win pipeline for ADAS continues to grow at a rapid pace.

我們的 ADAS 設計獲勝管道繼續快速增長。

We are actively engaged with our ecosystem partners for development of next-generation ADAS systems, and we remain the primary image sensor partner for leading ADAS and autonomous driving technology leaders.

我們積極與生態系統合作夥伴合作開發下一代 ADAS 系統，並且我們仍然是領先的 ADAS 和自動駕駛技術領導者的主要圖像傳感器合作夥伴。

Driven by our technology lead, we are seeing strong traction for our image sensors for ADAS applications in China.

在我們技術領先的推動下，我們看到我們的圖像傳感器在中國的 ADAS 應用具有強大的吸引力。

Our silicon carbide development remains on track, and we expect to see silicon carbide-related revenue from automotive market in the second half of this year.

我們的碳化矽發展仍在正常進行，我們預計今年下半年汽車市場將出現碳化矽相關收入。

In addition to image sensors, we experienced strong growth in our mixed-signal ASIC, power modules and MOSFETs.

除了圖像傳感器，我們的混合信號 ASIC、電源模塊和 MOSFET 也實現了強勁增長。

Growth in our LED lighting business continues to accelerate, driven by the ramp of design wins and increased penetration of LEDs in automotive lighting.

我們的 LED 照明業務增長繼續加速，這得益於設計勝出的增長和 LED 在汽車照明中的滲透率提高。

Our design win momentum continues to be strong in the automotive market.

我們的設計獲胜勢頭在汽車市場繼續保持強勁。

As carmakers are increasing focus on reducing carbon dioxide emissions, they're relying on us to provide highly efficient IGBTs and other power management devices.

隨著汽車製造商越來越重視減少二氧化碳排放，他們依靠我們提供高效的 IGBT 和其他電源管理設備。

Revenue in the second quarter for the automotive end market is expected to be up quarter-over-quarter.

汽車終端市場第二季度的收入預計將環比增長。

The industrial end market, which includes military, aerospace and medical, contributed revenue of $362 million in the first quarter.

包括軍事、航空航天和醫療在內的工業終端市場在第一季度貢獻了 3.62 億美元的收入。

The industrial end market represented 26% of our revenue in the first quarter.

工業終端市場占我們第一季度收入的 26%。

Our first quarter industrial revenue grew by a solid 11% year-over-year.

我們第一季度的工業收入同比增長了 11%。

The strength in the industrial market was very broad based with all the subsegments posting robust year-over-year growth.

工業市場的實力非常廣泛，所有細分市場都實現了強勁的同比增長。

We continue to benefit from demand for our power modules and power management semiconductor solutions for the industrial markets.

我們繼續受益於工業市場對我們的電源模塊和電源管理半導體解決方案的需求。

Our power module business for industrial applications continues to grow at a tremendous pace, and we expect this momentum to continue for the next few years as we launch new products with higher efficiency.

我們的工業應用功率模塊業務繼續以驚人的速度增長，隨著我們推出效率更高的新產品，我們預計這種勢頭將在未來幾年繼續保持。

With focus on energy efficiency around the globe, our design win pipeline for our power modules continues to expand at a rapid rate, and we expect power modules to be a long-term driver for our industrial business.

隨著對全球能源效率的關注，我們的電源模塊設計贏得管道繼續快速擴展，我們預計電源模塊將成為我們工業業務的長期驅動力。

We believe that we have one of the most comprehensive industrial power management portfolios, comprising a broad range of devices across the power spectrum.

我們相信，我們擁有最全面的工業電源管理產品組合之一，包括功率範圍內的各種設備。

This portfolio of devices is further complemented by a rapidly expanding portfolio of power modules for a broad range of applications, ranging from alternative energy to commercial air conditioning.

快速擴展的電源模塊產品組合進一步補充了該設備組合，適用於從替代能源到商用空調等廣泛應用。

Commercial -- customers are increasingly relying on us as a credible alternative to the current market leader for medium- to high-voltage power semiconductor solutions.

商業——客戶越來越依賴我們作為當前中高壓功率半導體解決方案市場領導者的可靠替代品。

In the machine vision market, we continue to -- our momentum with our PYTHON line of image sensors.

在機器視覺市場，我們繼續——我們的 PYTHON 圖像傳感器系列的勢頭。

According to Yole Développement, a leading market research firm, ON Semiconductor is the leader in image sensors for industrial applications.

據領先的市場研究公司 Yole Développement 稱，安森美半導體是工業應用圖像傳感器的領導者。

With leadership in industrial and automotive markets, ON Semiconductor has emerged as a powerhouse for most demanding and challenging imaging applications.

憑藉在工業和汽車市場的領導地位，安森美半導體已成為最苛刻和最具挑戰性的成像應用的強大力量。

As I indicated on previous earnings calls, we continue to develop synergies with our expertise in the automotive imaging market to accelerate our growth in the machine vision market as both of these markets are driven by artificial intelligence and face similar challenges such as low-light conditions, dynamic range and harsh operating environments.

正如我在之前的財報電話會議上所指出的那樣，我們將繼續利用我們在汽車成像市場的專業知識發展協同效應，以加速我們在機器視覺市場的增長，因為這兩個市場都是由人工智能驅動的，並且面臨著類似的挑戰，例如弱光條件，動態範圍和惡劣的工作環境。

Revenue in the second quarter for the industrial end market is expected to be up quarter-over-quarter.

工業終端市場第二季度的收入預計將環比增長。

The communications end market, which includes both networking and wireless, contributed revenue of $240 million in the first quarter.

包括網絡和無線在內的通信終端市場在第一季度貢獻了 2.4 億美元的收入。

The communications end market represented 17% of our revenue in the first quarter.

通信終端市場占我們第一季度收入的 17%。

First quarter communications revenue declined by 3% year-over-year due to weakness in the smartphone market, but with higher content and increasing penetration at large global OEMs, we were able to mitigate the impact of softness in the overall market.

由於智能手機市場疲軟，第一季度通信收入同比下降 3%，但隨著內容的增加和全球大型 OEM 的滲透率不斷提高，我們能夠減輕整體市場疲軟的影響。

Revenue in the second quarter for the communications end market is expected to be flat to down quarter-over-quarter due to softness in the end market demand.

由於終端市場需求疲軟，預計第二季度通信終端市場的收入將環比持平至下降。

The computing end market contributed revenue of $149 million in the first quarter.

計算終端市場在第一季度貢獻了 1.49 億美元的收入。

The computing end market represented 11% of our revenue in the first quarter.

計算終端市場占我們第一季度收入的 11%。

First quarter computing revenue grew by 20% year-over-year.

第一季度計算收入同比增長 20%。

This year-over-year growth was driven primarily by the ramp in our cloud and server business and generally healthier client PC market.

這一同比增長主要是由於我們的雲和服務器業務的增長以及普遍健康的客戶端 PC 市場。

Momentum in our server business continues to accelerate.

我們的服務器業務發展勢頭繼續加快。

As we indicated earlier, we expect our server business to be a meaningful part of our computing business in 2018.

如前所述，我們預計我們的服務器業務將在 2018 年成為我們計算業務的重要組成部分。

We are engaged with the leading cloud and server players and are working with leading CPU providers on their next-generation platforms.

我們與領先的雲和服務器廠商合作，並與領先的 CPU 供應商合作開發他們的下一代平台。

Revenue in the second quarter for the computing end market is expected to be up quarter-over-quarter due to normal seasonality and continuing ramp in our service -- server business.

由於正常的季節性和我們的服務——服務器業務的持續增長，計算終端市場第二季度的收入預計將環比增長。

The consumer end market contributed revenue of $182 million in the first quarter.

消費者終端市場在第一季度貢獻了 1.82 億美元的收入。

The consumer end market represented 13% of our revenue in the first quarter.

消費者終端市場占我們第一季度收入的 13%。

First quarter of 2018 consumer revenue was up 7% as compared to the consumer revenue in the first quarter of 2017.

與 2017 年第一季度的消費者收入相比，2018 年第一季度的消費者收入增長了 7%。

Revenue in the second quarter for the consumer end market is expected to be approximately flat quarter-over-quarter.

消費者終端市場第二季度的收入預計將與上一季度持平。

In summary, demand for our products continues to strengthen, and we are putting in additional capacity to ensure that we are able to meet customer demand for the next few years.

總之，對我們產品的需求繼續增強，我們正在增加產能以確保我們能夠滿足未來幾年的客戶需求。

At the same time, we are making investments in our captive raw wafer manufacturing capacity to extend our competitive advantage.

與此同時，我們正在對我們的專屬原始晶圓製造能力進行投資，以擴大我們的競爭優勢。

Our execution remains solid on all fronts to establish leadership in highly differentiated power, analog and sensor semiconductor solutions.

我們在所有方面的執行力都保持穩健，以在高度差異化的電源、模擬和傳感器半導體解決方案方面建立領導地位。

Customers are increasingly relying on us as a key provider of enabling technologies for newly emerging and disruptive applications in automotive and industrial end markets.

客戶越來越依賴我們作為支持技術的主要供應商，為汽車和工業終端市場的新興和顛覆性應用提供支持。

Along with strong revenue performance, we are driving significant margin expansion.

隨著強勁的收入表現，我們正在推動利潤率的顯著增長。

We solidly remain on track to make strong progress in 2018 towards our target financial model.

我們堅定不移地在 2018 年朝著我們的目標財務模型邁進。

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

現在我想把它交還給伯納德以獲得前瞻性指導。

Bernard?

伯納德?

Thank you, Keith.

謝謝你，基思。

Based on product booking trends, backlog levels and estimated turns levels, we anticipate that total ON Semiconductor revenues will be between $1.405 million (sic) [billion] to $1.455 billion in the second quarter of 2018.

根據產品預訂趨勢、積壓水平和預計周轉水平，我們預計 2018 年第二季度安森美半導體的總收入將在 140.5 萬美元（原文如此）[十億] 至 14.55 億美元之間。

For the second quarter of 2018, we expect GAAP and non-GAAP gross margin in the range of 37% to 39%.

對於 2018 年第二季度，我們預計 GAAP 和非 GAAP 毛利率在 37% 至 39% 之間。

Factory utilization in the second quarter is likely to be down as compared to that of the first quarter.

與第一季度相比，第二季度的工廠利用率可能會下降。

We expect total GAAP operating expenses of $333 million to $351 million.

我們預計 GAAP 總運營費用為 3.33 億美元至 3.51 億美元。

Our GAAP operating expenses include the amortization of intangibles, restructuring, asset impairments and other charges, which are expected to be $28 million to $32 million.

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 2800 萬至 3200 萬美元。

We expect total non-GAAP operating expenses of $305 million to $319 million.

我們預計非美國通用會計準則運營費用總額為 3.05 億美元至 3.19 億美元。

The quarter-over-quarter increase in operating expenses in the second quarter is driven primarily by the seasonality of our stock-based compensation grants.

第二季度運營費用的環比增長主要是由我們基於股票的薪酬贈款的季節性驅動的。

We expect our non-GAAP operating expenses as a percentage of revenue to continue to decline for the remainder of the year, and we expect to make strong progress in 2018 towards our target non-GAAP operating expense intensity of 21%.

我們預計我們的非公認會計原則運營費用佔收入的百分比將在今年剩餘時間內繼續下降，我們預計 2018 年將在實現非公認會計原則運營費用強度 21% 的目標方面取得強勁進展。

We anticipate second quarter GAAP net other income and expense, including interest expense, will be $32 million to $35 million, which includes noncash interest expense of $8 million to $9 million.

我們預計第二季度 GAAP 其他淨收入和支出（包括利息支出）將為 3200 萬美元至 3500 萬美元，其中包括 800 萬美元至 900 萬美元的非現金利息支出。

We anticipate non-GAAP other income and expense, including interest expense, will be $24 million to $26 million.

我們預計非公認會計原則的其他收入和支出，包括利息支出，將在 2400 萬美元至 2600 萬美元之間。

Cash paid for income taxes in the second quarter of 2018 is expected to be $11 million to $15 million.

2018 年第二季度為所得稅支付的現金預計為 1100 萬至 1500 萬美元。

We expect our 2018 cash tax rate to be 10% or lower.

我們預計 2018 年的現金稅率為 10% 或更低。

We expect total capital expenditures of $130 million to $150 million in the second quarter of 2018.

我們預計 2018 年第二季度的總資本支出為 1.3 億美元至 1.5 億美元。

We also expect share-based compensation of $24 million in the second quarter -- to $26 million in the second quarter of 2018, of which $2 million is expected be in cost of goods sold and the remaining amount is expected to be in operating expenses.

我們還預計第二季度的股票薪酬為 2400 萬美元——到 2018 年第二季度為 2600 萬美元，其中 200 萬美元預計用於銷售商品成本，其餘部分預計用於運營費用。

This expense is included in our non-GAAP financial measures.

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 second quarter of 2018 is expected to be 445 million to 447 million shares based on the current stock price.

根據當前股價，我們 2018 年第二季度的 GAAP 稀釋後股票數量預計為 4.45 億至 4.47 億股。

Our non-GAAP diluted share count for the second quarter of 2018 is expected to be 432 million shares based on the current stock price.

根據當前股價，我們 2018 年第二季度的非公認會計原則稀釋後的股票數量預計為 4.32 億股。

Further details on share count and earnings per share calculations are provided regularly in our quarterly and annual reports on Forms 10-Q and Form 10-K.

我們的 10-Q 表格和 10-K 表格的季度和年度報告定期提供有關股票數量和每股收益計算的更多詳細信息。

For the full year 2018, we expect to generate free cash flow of approximately $800 million.

2018 年全年，我們預計將產生約 8 億美元的自由現金流。

With that, I would like to start the Q&A session.

有了這個，我想開始問答環節。

Thank you.

謝謝你。

And Sara, please open up the line for questions.

莎拉，請打開電話提問。

(Operator Instructions) Our first question comes from Chris Danely with Citi.

（操作員說明）我們的第一個問題來自 Citi 的 Chris Danely。

This is Philip Li on behalf of Chris Danely.

我是代表 Chris Danely 的 Philip Li。

Just wanted to ask you on the higher capital investments for the next calendar '18 and '19.

只是想問你關於下一個日曆 '18 和 '19 的更高資本投資。

What is the impact on the model in terms of gross margins, operating margins and other changes to the -- to your long-term model?

就毛利率、營業利潤率和對您的長期模型的其他變化而言，對模型有什麼影響？

It basically should have no impact to that [either way].

它基本上應該對此沒有影響[無論哪種方式]。

As a matter of fact, it will enable us to have more strength and power for revenue growth.

事實上，這將使我們有更多的實力和動力來實現收入增長。

But we're not changing any of our models in terms of margins.

但我們不會在利潤率方面改變我們的任何模型。

Got it.

知道了。

And as a follow-up, can you talk about the pricing environment now and how it trended last quarter and how you expect it to trend for the rest of the year?

作為後續，您能否談談現在的定價環境以及上個季度的趨勢以及您預計今年剩餘時間的趨勢？

Yes, it was much better than normal Q1s that we saw.

是的，它比我們看到的正常第一季度要好得多。

So it's very benign.

所以這是非常良性的。

And we expect that to continue for the rest of the year.

我們預計這種情況將持續到今年餘下的時間。

Our next question comes from Ross Seymore with Deutsche Bank.

我們的下一個問題來自德意志銀行的羅斯·西莫爾。

Keith, I want to talk about the cycle dynamic.

基思，我想談談週期動態。

Investors seemingly are increasingly concerned about the semi cycle once again.

投資者似乎再次越來越關注半週期。

I know you talked about in your script that you believe ON is exposed to a lot more secular and a lot less cyclical dynamics, whether it be because of mix or some of these long-term agreements that you alluded to today.

我知道你在你的劇本中談到你認為 ON 面臨更多的世俗和更少的周期性動態，無論是因為混合還是你今天提到的一些長期協議。

Can you talk a little bit more about why you think you're more secularly exposed?

你能多談談為什麼你認為你更世俗嗎？

And what does that mean?

那是什麼意思？

That the cycle won't impact you?

週期不會影響你？

Or is it just a lot less than it did in the past?

還是只是比過去少了很多？

Yes, we're not predicting the end of cycles in the industry.

是的，我們沒有預測行業周期的結束。

But there are couple of dynamics now that were not present in the last 2 decades, and that really is the acceleration of dollar content for power in automotive and industrial.

但現在有一些在過去 2 年中沒有出現的動態，這確實是汽車和工業電力中美元含量的加速。

The advantages that are being given in those 2 markets are really significantly increasing the amount of content per unit, which we think gives us a lot of moderation in any cycles that may be coming.

這兩個市場的優勢確實顯著增加了每單位的內容量，我們認為這讓我們在任何可能到來的周期中都能獲得很大的節制。

So what we're seeing is just a stronger overall demand for power semiconductors going forward.

因此，我們所看到的只是未來對功率半導體的整體需求更加強勁。

Great.

偉大的。

And I guess as my follow-up, one for you, Bernard.

我想作為我的後續行動，給你一個，伯納德。

I -- basically, both questions are going to be on inventory, internal and external.

我——基本上，這兩個問題都是關於庫存的，內部的和外部的。

If I remember right, you guys thought, at least on the internal side, you'd be flat to down on your days of inventory, and it went up.

如果我沒記錯的話，你們認為，至少在內部方面，你們的庫存天數會持平到下降，而且它會上升。

And so I just want to see, how is inventory going up as demand is so tight?

所以我只想看看，在需求如此緊張的情況下，庫存是如何上升的？

And then why did utilization go up in the first quarter but now it's going down in the second?

那麼為什麼第一季度利用率上升，但現在第二季度下降？

It seems like there's a lot of mixed messages there.

那裡似乎有很多混合信息。

So the inventory position is we're really trying to position ourselves to have to be able to take advantage of demand.

所以庫存位置是我們真的試圖定位自己，以便能夠利用需求。

And as such, we basically ran our factories as very, very high during the first quarter to really position ourselves to have the inventories to serve the markets.

因此，我們基本上在第一季度將我們的工廠運行得非常非常高，以真正定位自己以擁有服務市場的庫存。

When we talk about the utilization in the second quarter, it's marginally down.

當我們談論第二季度的利用率時，它略有下降。

It's virtually flat, so I don't see that as a statistically meaningful change.

它幾乎是平的，所以我不認為這是一個具有統計學意義的變化。

It's pretty much about the same level.

這幾乎是同一水平。

Our next question comes from Vivek Arya with Bank of America.

我們的下一個問題來自美國銀行的 Vivek Arya。

Keith, on automotive, your Q1 growth year-on-year was quite decent, up 8%.

基思，在汽車方面，您的第一季度同比增長相當不錯，增長了 8%。

On a sequential basis, it was up about 2%, which I think has been somewhat below the seasonal trends that you have seen.

在連續的基礎上，它上漲了約 2%，我認為這在一定程度上低於你所看到的季節性趨勢。

Any specific reason for that?

有什麼具體原因嗎？

And I think as part of that, we also saw image sensors only grow 2% or 3% year-on-year, but you have seen that as a strong growth opportunity for ON.

我認為，作為其中的一部分，我們還看到圖像傳感器同比僅增長 2% 或 3%，但您已經將其視為 ON 的強勁增長機會。

So if you could give us some more color on what's happening in autos and then in image sensors in terms of these growth rates, that would be very helpful.

因此，如果您可以就這些增長率為汽車和圖像傳感器中發生的事情提供更多信息，那將非常有幫助。

Yes, the image sensor piece overall, we've been managing the consumer part down as a margin play.

是的，整體而言，圖像傳感器部分，我們一直在將消費者部分作為保證金進行管理。

And so growth in total was much higher for the automotive image sensors than is reflected there in the division.

因此，汽車圖像傳感器的總體增長遠高於該部門反映的增長。

The actual sequential for automotive of 20%...

汽車的實際順序為 20%...

Year-over-year.

一年又一年。

Year-over-year, yes.

年復一年，是的。

So that's actually substantially higher for the -- for that piece of the business.

因此，對於那部分業務來說，這實際上要高得多。

And then sequentially, there's nothing significant.

然後依次，沒有什麼重要的。

There are some shifts in customer patterns that happens from time to time, but there's no significance overall to the sequential.

客戶模式會不時發生一些變化，但總體上對順序沒有意義。

So also noteworthy is that the fourth quarter sequential was very high.

所以同樣值得注意的是，第四季度環比非常高。

So we're coming off a very high base.

所以我們的基數很高。

Where normally fourth quarter is modestly up, it was up more than -- it was about 6% up sequentially.

通常第四季度會適度上漲，但漲幅超過 - 環比上漲約 6%。

I see.

我懂了。

And then for my follow-up, another one on end markets in communications.

然後是我的後續，另一個是關於通信終端市場的。

So I think it's generally well understood that there is weakness in some high-end smartphone demand.

所以我認為，一些高端智能手機的需求疲軟，這一點大家都很好理解。

Do you think June is sort of the bottom of this cycle and we should start to see more seasonal patterns in the back half?

你認為 6 月是這個週期的底部，我們應該開始在後半段看到更多的季節性模式嗎？

And if you could also give us some color in terms of where do you think the rebound would come from.

如果你也可以給我們一些顏色，你認為反彈會來自哪裡。

Could it come from your U.S. customers or Korean customers or Chinese customers?

它可能來自您的美國客戶或韓國客戶或中國客戶嗎？

Any color on geography would also be very helpful.

地理上的任何顏色也將非常有幫助。

Yes, we do expect the second half to resume growth very significantly.

是的，我們確實預計下半年將非常顯著地恢復增長。

We have new model launches from most of the cellphone manufacturers occurring in Q3.

我們在第三季度推出了大多數手機製造商的新型號。

And so therefore, we actually should see a nice pickup in the second half.

因此，我們實際上應該在下半場看到一個不錯的回升。

Our next question comes from Chris Caso with Raymond James.

我們的下一個問題來自 Chris Caso 和 Raymond James。

Question on wafer capacity that you're building.

關於您正在建設的晶圓產能的問題。

Can you talk about the magnitude of the CapEx there?

你能談談那裡資本支出的規模嗎？

And then how much of that raw wafer capacity that you do have internally?

然後你內部有多少原始晶圓產能？

And how does that change with that new capacity that you've put in place?

隨著您部署的新能力，這將如何改變？

So it's approximately a $60 million investment this year and should take our internal capabilities up about 15%.

因此，今年的投資約為 6000 萬美元，應該會使我們的內部能力提高約 15%。

And what's the cost savings that you get from doing that?

這樣做可以節省多少成本？

It should be in the order of 15% to 25% depending on the type of wafers.

根據晶片的類型，它應該在 15% 到 25% 的數量級。

Okay.

好的。

And just as a follow-up on capacity in general.

就像一般容量的後續行動一樣。

Can you talk in general terms, perhaps look at over the last year or so, how much additional capacity you've put in place?

您能否籠統地說一下，也許看看在過去一年左右的時間裡，您增加了多少產能？

And I know that's a tough question because there's differences between front-end and back-end capacity, but I guess the nature of the question is how capacity has been expanding as related to how demand has been increasing.

我知道這是一個棘手的問題，因為前端和後端容量之間存在差異，但我想問題的本質是容量如何擴大與需求如何增加相關。

Yes, I could only give you estimates.

是的，我只能給你估計。

That would be calculations I don't have in front of me.

那將是我面前沒有的計算。

But certainly, we have been adding capacity for the double-digit growth we've been getting.

但可以肯定的是，我們一直在為我們已經獲得的兩位數增長增加容量。

And so with the exception of the raw wafer capacity, it is all additive to our revenue perspective.

因此，除了原始晶圓產能之外，這一切都對我們的收入前景產生了影響。

Our next question comes from Rajvindra Gill with Needham & Company.

我們的下一個問題來自 Needham & Company 的 Rajvindra Gill。

Just to follow up again on the wafers.

只是為了再次跟進晶圓。

You talked about that you're one of the few companies that actually have internal manufacturing for raw wafers.

您談到您是少數幾家實際上擁有原始晶圓內部製造的公司之一。

Can you talk a little bit about how that can give you a competitive advantage going forward, both from a cost savings perspective but also from kind of a product delivery?

您能否談談這如何為您帶來未來的競爭優勢，無論是從節省成本的角度還是從產品交付的角度來看？

I mean, I kind of view that as a kind of a unique advantage that you have in the marketplace.

我的意思是，我認為這是你在市場上擁有的一種獨特優勢。

Yes.

是的。

So in addition to pricing going up fairly significantly for external wafers, we also have capacity limitations.

因此，除了外部晶圓的價格大幅上漲外，我們還存在產能限制。

It's a very, very tight market, and I think that's well known.

這是一個非常非常緊張的市場，我認為這是眾所周知的。

So we get to protect our top line growth as well as improve our gross margins.

因此，我們可以保護我們的收入增長並提高我們的毛利率。

It is not our intention to produce all of our wafers internally, but it is in specialty areas where we think there might be constraints from the industry.

我們並不打算在內部生產我們所有的晶圓，但在我們認為可能會受到行業限制的特殊領域。

We're making those investments to make sure we're not constrained in our growth and to have a price advantage.

我們進行這些投資是為了確保我們的增長不受限制並具有價格優勢。

As I mentioned earlier, it's anywhere from 15% to 25% depending on the type of wafer.

正如我之前提到的，它在 15% 到 25% 之間，具體取決於晶圓的類型。

Very good.

很好。

And Bernard, so the CapEx intensity is increasing.

和伯納德，所以資本支出強度正在增加。

We've been in a kind of a supply-constrained environment for several quarters actually starting at the beginning of last year.

實際上，從去年年初開始，我們幾個季度一直處於供應受限的環境中。

So I'm just wondering, is the entire industry -- have they underestimated the level of demand that's coming from auto, industrial now that we've had many quarters where we've seen increasing dollar content for auto, industrial, machine vision applications?

所以我只是想知道，整個行業 - 他們是否低估了來自汽車、工業的需求水平，因為我們已經有很多季度看到汽車、工業、機器視覺應用的美元含量在增加?

I'm just trying to get a sense of -- it seems like the demand environment is coming in much stronger than expected, and this has been happening for several quarters and the industry is trying to catch up as fast as they can.

我只是想了解一下——似乎需求環境的到來比預期的要強得多，這種情況已經發生了幾個季度，該行業正試圖盡快趕上。

I just wondered if you could elaborate a little bit on that as well.

我只是想知道您是否也可以詳細說明一下。

So I think we agree with your statement, with your assessment.

所以我認為我們同意你的說法和你的評估。

Definitely, the demand environment for us has been very strong for those end markets, for automotive and industrial.

毫無疑問，我們的需求環境對於汽車和工業等終端市場非常強勁。

And as such, we are trying to make sure we have the capacity to serve those needs.

因此，我們正在努力確保我們有能力滿足這些需求。

And we believe we're also gaining share.

我們相信我們也在獲得份額。

So as a result, we are definitely increasing our CapEx investments and make sure that we are in a position to serve those demands.

因此，我們肯定會增加我們的資本支出投資，並確保我們能夠滿足這些需求。

And do you see CapEx investments increasing across the industry?

您是否看到整個行業的資本支出投資都在增加？

Slightly.

輕微地。

Slightly.

輕微地。

Our next question comes from Shawn Harrison with Longbow Research.

我們的下一個問題來自 Longbow Research 的 Shawn Harrison。

If I may follow up just on the CapEx outside of the raw wafers.

如果我可以跟進原始晶圓之外的資本支出。

With the Fujitsu investment announced last year and now the increase in CapEx outside of the raw wafers, is there a way to highlight what dollar of CapEx going in would represent in terms of revenue opportunity for you coming out on the other side in terms of just the return on that investment?

隨著富士通去年宣布的投資以及現在原始晶圓之外資本支出的增加，有沒有一種方法可以突出資本支出的美元在收入機會方面代表你從另一方面出來的收入機會那項投資的回報？

I would say our 7% model we've put in place was for something in the low to mid-single-digit growth rates.

我想說的是，我們採用的 7% 模型是針對中低個位數增長率的。

And as we go to the 8% or 9%, we're now looking for something in the high single-digit range.

當我們達到 8% 或 9% 時，我們現在正在尋找高個位數範圍內的東西。

Okay.

好的。

And as a follow-up, with $800-plus million of free cash forecast for the -- for calendar '18, that implies, give or take, around $700 million for the rest of the year.

作為後續行動，對於 18 年日曆，預計將有 800 多萬美元的自由現金，這意味著在今年剩餘時間裡，給予或接受大約 7 億美元。

Could you split between buyback versus debt reduction?

你能在回購和減債之間進行區分嗎？

Is it a 50-50 split?

是50-50分嗎？

Just some type of range we should think about for the next 3 quarters of the year.

只是我們應該為今年接下來的三個季度考慮的某種範圍。

No, we haven't given the details on that, but we will continue delevering in a meaningful way and, at the same time, have some share buybacks to have a full picture.

不，我們還沒有提供這方面的細節，但我們將繼續以有意義的方式去槓桿，同時進行一些股票回購以全面了解情況。

Is there a minimum level of leverage that you would not like to go below, Bernard?

伯納德，有沒有你不想低於的最低杠桿水平？

At this moment, not really.

此刻，還真不是。

Obviously, we don't really want to get to 0. And for that, we need still a lot of money to pay down our debt.

顯然，我們並不是真的想達到 0。為此，我們仍然需要大量資金來償還債務。

But we're also trying to risk-manage the rising interest rate environment we are currently under.

但我們也在嘗試對我們目前所處的利率上升環境進行風險管理。

Our next question comes from Craig Ellis with B. Riley.

我們的下一個問題來自 Craig Ellis 和 B. Riley。

Keith, I wanted to follow up on a couple of comments that were made in the prepared script.

基思，我想跟進準備好的腳本中的一些評論。

So on a couple instances, the company addressed the long-term demand environment and stated it was very positive and also indicated that customers are interested in long-term supply agreements, which I don't recall hearing in at least the recent past.

因此，在幾個例子中，該公司談到了長期需求環境，並表示這是非常積極的，並表示客戶對長期供應協議感興趣，我不記得至少在最近的過去聽到過。

So the question is, is one, if you were to engage in more long-term supply agreements, what would that do for manufacturing efficiencies given the visibility you would have?

所以問題是，如果你要簽訂更長期的供應協議，考慮到你的可見性，這對製造效率有什麼影響？

And two, what would the implications be for pricing?

第二，對定價有何影響？

So generally, it stabilizes our manufacturing environment, which is more efficient for us so we can plan more level rather than peaks and valleys.

所以總的來說，它穩定了我們的製造環境，這對我們來說更有效率，所以我們可以計劃更多的水平而不是高峰和低谷。

And generally, again, speaking, we would only do this for margin products that enhance our situation.

一般來說，再一次，我們只會對提高我們情況的保證金產品這樣做。

So the 2 together we see as a very positive move for the company.

因此，我們認為將兩者結合在一起對公司來說是一個非常積極的舉措。

Okay.

好的。

And how quickly can you move on those deals?

你能多快完成這些交易？

And how material could they be as a percent of revenue?

它們佔收入的百分比有多大？

So we're moving on them actively all the time, and they would never be more than 50% of our capacity in any market.

所以我們一直在積極推進它們，它們在任何市場上都不會超過我們產能的 50%。

Okay.

好的。

And then the follow-up is for Bernard.

然後是伯納德的後續行動。

Bernard, nice to see the midpoint of gross margin guidance at 38%, a real milestone for the company.

伯納德，很高興看到毛利率指導的中點為 38%，這對公司來說是一個真正的里程碑。

The question is, as you look at where the business is from a portfolio optimization standpoint with your carve-outs and bridge inventory built, which, you had been saying last year, was not possible due to the demand environment, where are we on those 2 items as we look out over the next year or 2?

問題是，當您從投資組合優化的角度來看業務在哪裡時，您已經建立了分拆和過渡庫存，您去年曾說過，由於需求環境，這是不可能的，我們在哪裡？明年我們要關注的 2 個項目還是 2 個項目？

Well, we'll continually look at opportunities for portfolio enhancing and small divestitures where -- that are not strategic and, at the same time, help us from a gross margin point of view.

好吧，我們將不斷尋找投資組合增強和小型資產剝離的機會——這不是戰略性的，同時從毛利率的角度來看對我們有幫助。

Don't expect anything big, but we'll continue looking at doing some work in that area.

不要指望有什麼大不了的，但我們會繼續考慮在該領域做一些工作。

We continue being in the same situation with the inventory bridge build.

我們繼續處於與庫存橋構建相同的情況。

As we talked about earlier, we see demands -- long-term demands being pretty strong.

正如我們之前談到的，我們看到了需求——長期需求非常強勁。

So at this moment, we are not able to build bridge inventories, but we're getting the fall-through on the incremental revenues, and that's showing up in the gross margin improvement that we have seen historically, and we'll continue seeing it showing through our upcoming guidance of 38%.

因此，目前，我們無法建立橋樑庫存，但我們正在經歷增量收入的下滑，這體現在我們歷史上看到的毛利率改善中，我們將繼續看到它通過我們即將發布的 38% 的指導來顯示。

Our next question comes from Harsh Kumar with Piper Jaffray.

我們的下一個問題來自 Harsh Kumar 和 Piper Jaffray。

Keith, I had a question.

基思，我有一個問題。

Every time previously we've talked to you and you guys have publicly spoken, you've said you were more tied to macro.

每次我們之前和你們交談過，你們公開發言時，你們都說你們更依賴於宏觀。

Now it seems like greater than 55%, almost 58% of your revenues are coming from automotive and industrial.

現在似乎超過 55%，幾乎 58% 的收入來自汽車和工業。

Should we think of you as maybe not so tied to macro and maybe more kind of tied to these end markets?

我們是否應該認為您可能不那麼依賴於宏觀，也許更多地依賴於這些終端市場？

So, I mean, clearly, we can't distance ourself from the macro environment.

所以，我的意思是，很明顯，我們不能遠離宏觀環境。

We are a broad-based supplier.

我們是一家基礎廣泛的供應商。

But even within those 2 markets, there's still an economic tie.

但即使在這兩個市場中，仍然存在經濟聯繫。

The difference is just the dollar content and how rapidly it's rising, particularly in industrial, for us.

不同之處在於美元含量以及它的增長速度，特別是在工業領域，對我們來說。

And so that certainly is providing a boost to the overall macro demand.

因此，這無疑提振了整體宏觀需求。

Fair enough.

很公平。

And Keith, I wanted to understand the long-term commitments you're talking about.

基思，我想了解你所說的長期承諾。

Would this be that a customer would commit a certain amount of dollars, fixed dollars, that they have to buy per year?

這會是客戶每年必須購買一定數量的固定美元嗎？

And again, would that not lower your seasonality to some degree?

再說一次，這不會在一定程度上降低你的季節性嗎？

So it is for amounts that extend beyond a year.

因此，它適用於超過一年的金額。

And it would maybe moderate it slightly but not necessarily.

它可能會稍微緩和它，但不一定。

So we do take into account the customers' patterns into those contracts.

因此，我們確實在這些合同中考慮了客戶的模式。

Our next question comes from Tristan Gerra with Baird.

我們的下一個問題來自 Tristan Gerra 和 Baird。

Given your outlook for continued strength in demand and tightness, what would be your initial Q3 visibility?

鑑於您對需求持續強勁和供應緊張的展望，您在第三季度的初始能見度是多少？

And also, could you talk about any other manufacturing bottlenecks that you see outside of raw wafers, including potential back-end tightness?

此外，您能否談談您在原始晶圓之外看到的任何其他製造瓶頸，包括潛在的後端密封性？

So on the visibility, obviously, we don't guide out.

所以在能見度上，很明顯，我們沒有引導出去。

Our normal seasonality for the third quarter is approximately 4% up.

我們第三季度的正常季節性約為 4%。

Yes, just a little color on that.

是的，只是有點顏色。

We would see the handset market coming back in the second half, which is not present in Q2.

我們將看到手機市場在下半年回歸，而這在第二季度是不存在的。

So that is what provides some of the impetus as well as the consumer side also increasing in the third quarter.

因此，這提供了一些推動力，同時消費者方面也在第三季度有所增加。

Okay.

好的。

And then could you remind us of your exposure to China ZTE specifically?

然後你能具體提醒我們你對中國中興通訊的了解嗎？

It is not a significant exposure.

這不是一個重要的曝光。

And it is included right now in our guidance for the second quarter.

它現在包含在我們第二季度的指導中。

Our next question comes from Kevin Cassidy with Stifel.

我們的下一個問題來自 Stifel 的 Kevin Cassidy。

In reference to the long-term supply agreement again, the industry has had these in the past.

再次參考長期供應協議，該行業過去曾有過這些。

Is there any changes to the way these can be enforced?

這些可以執行的方式是否有任何變化？

Is this -- these agreements different than in the past?

這是 - 這些協議與過去不同嗎？

Well, I'm not familiar with all of the industry practices.

嗯，我不熟悉所有的行業慣例。

In our case, they are very much tied to dollar amounts, and so it is not just a number of units.

在我們的例子中，它們與美元金額密切相關，因此它不僅僅是一些單位。

And therefore, again, we think it leads to a very healthy thing for both companies.

因此，我們再次認為這對兩家公司來說都是一件非常健康的事情。

Okay.

好的。

And on the computing segment, with the servers now becoming a bigger portion, can you tell us how much that changed, say, even year-over-year in the first quarter?

在計算領域，隨著服務器現在變得越來越大，你能告訴我們變化有多大，比如第一季度的同比變化？

How much is server related versus desktop and notebook related?

服務器相關與台式機和筆記本相關的程度如何？

In the first quarter results, actually, I don't have that.

實際上，在第一季度的結果中，我沒有。

It's actually driven by servers.

它實際上是由服務器驅動的。

A big part is coming from servers.

很大一部分來自服務器。

So mostly -- so most of the change was from servers?

所以大部分 - 所以大部分變化來自服務器？

Yes.

是的。

Okay.

好的。

So I guess the answer is the delta is pretty much all servers.

所以我想答案是增量幾乎是所有服務器。

Our next question comes from Harlan Sur with JPMorgan.

我們的下一個問題來自摩根大通的 Harlan Sur。

Nice job on the solid execution by the team.

團隊的紮實執行力做得很好。

Bernard, you gave us some parameters for OpEx as a percent of revenues kind of second half.

伯納德，你給了我們一些運營支出的參數，作為下半年收入的百分比。

But the other way that the team has always articulated OpEx target is that you'll be growing OpEx at about half the rate of revenues.

但團隊始終明確運營支出目標的另一種方式是，您將以大約一半的收入率增長運營支出。

Is that another way that we can think about it for 2018?

這是我們在 2018 年可以考慮的另一種方式嗎？

As you go forward, as a general measurement, that's correct.

當你繼續前進時，作為一般測量，這是正確的。

We did spend as a percent of incremental revenue a little bit more in the first quarter as we are investing more R&D into automotive and industrial applications.

由於我們在汽車和工業應用方面投入更多研發，第一季度我們的支出佔增量收入的百分比確實增加了一點。

But as a long-term view, yes, it is still a good -- correct way to look at it.

但從長遠來看，是的，它仍然是一個很好的——正確的看待它的方式。

And we expect, as I said in the prepared remarks, to continue showing improvements towards the 21% as we go throughout the year.

正如我在準備好的評論中所說，我們預計，隨著我們全年的發展，將繼續向 21% 邁進。

Great.

偉大的。

And then, Keith, first half of this year, cloud spending is strong.

然後，Keith，今年上半年，雲支出強勁。

You talked about new compute workloads, which is clearly also a driver.

您談到了新的計算工作負載，這顯然也是一個驅動因素。

You've got pretty upgrade cycle, and we're also seeing some healthy enterprise spending as well.

你的升級週期很長，我們也看到了一些健康的企業支出。

You saw strong sequential and year-over-year growth in compute in Q1, guiding for strong growth in Q2.

您在第一季度看到了強勁的連續和同比增長，為第二季度的強勁增長提供了指導。

Seems like cloud spending will be strong throughout all of this year.

似乎雲支出將在今年全年保持強勁。

Is that kind of how you guys see it, continued strength throughout 2018?

你們是這樣看的嗎，在整個 2018 年持續強勢？

Yes, we do believe that will be the case.

是的，我們確實相信情況會如此。

And it really is -- yes, it's all the trends in AI as well as just the general continuation of the server strategies.

它確實是——是的，這是人工智能的所有趨勢，也是服務器策略的一般延續。

Our next question comes from Christopher Rolland with Susquehanna.

我們的下一個問題來自 Christopher Rolland 和 Susquehanna。

My first question, on the raw wafers, are they only silicon?

我的第一個問題是關於原始晶圓，它們只是矽嗎？

Or are you guys doing specialty like silicon carbide?

或者你們是在做像碳化矽這樣的專業嗎？

Are you insourcing that as well?

你也內購嗎？

And perhaps talk a bit more about that ramp that you guys see coming in the second half for silicon carbide.

也許更多地談談你們在下半年看到的碳化矽坡道。

The investments include both the pure silicon and specialty wafers.

投資包括純矽和特種晶圓。

And so it's the mix that supports our growth.

所以它是支持我們增長的組合。

Great.

偉大的。

And I don't know if you have any details or -- on silicon carbide, perhaps what percent of sales that could be a few years down the road.

而且我不知道您是否有任何詳細信息，或者 - 關於碳化矽，也許幾年後的銷售額百分比。

While we are expecting tremendous growth, today, it's a very low percentage.

雖然我們期待巨大的增長，但今天，這個百分比非常低。

I would imagine it would show up even with high growth as being something that's in the 4% or 5% range in 3 years.

我可以想像，即使在高增長的情況下，它也會在 3 年內出現在 4% 或 5% 的範圍內。

Great.

偉大的。

And then lastly, just lead times.

最後，只是交貨時間。

Where are you guys now?

你們現在在哪裡？

So lead times are in the middle teens, and they increased slightly over last quarter.

因此，交貨時間處於中間十幾歲，並且比上一季度略有增加。

As we mentioned in previous occasions, we saw a lead time expansion in the first half of last year.

正如我們在之前的場合中提到的，我們在去年上半年看到了交貨時間的延長。

And since then, they have been relatively constant with a slight uptick in the second quarter.

從那以後，它們一直相對穩定，在第二季度略有上升。

Our next question comes from Craig Hettenbach with Morgan Stanley.

我們的下一個問題來自摩根士丹利的 Craig Hettenbach。

Just wanted to follow up on the long-term supply agreements and just any other context you can provide, particularly as it relates to prior periods of tightness and what the parallel is to that versus what might be different this go-around.

只是想跟進長期供應協議以及您可以提供的任何其他背景，特別是因為它與之前的緊縮時期以及與之相似的情況與這次復飛可能不同的情況有關。

I think the environment is a little different.

我覺得環境有點不同。

In the past, I would say these were kind of panic reactions to extremely tight markets.

在過去，我會說這些是對極度緊張的市場的恐慌反應。

So they don't happen very often.

所以它們不會經常發生。

In this case, our customers are looking out and expecting very strong growth on the power side and also not seeing the attendant capacity increases coming from the marketplace and are looking for more long-term agreements to mitigate both of those things.

在這種情況下，我們的客戶正在關注並期待電力方面的強勁增長，但也沒有看到來自市場的隨之而來的容量增加，並且正在尋找更長期的協議來緩解這兩個問題。

Great.

偉大的。

And then just as a follow-up on the industrial market and the double-digit growth again there.

然後就像工業市場的跟進和兩位數的增長一樣。

Can you talk about just what you're seeing from a demand perspective and then also just a sell-through perspective through the distributions channel?

你能談談你從需求的角度看到了什麼，然後也只是從分銷渠道的銷售角度談談嗎？

So those are -- I don't know if you'll relate it to the industrial piece for the sell-through, but the sell-through on the distribution side is looking much stronger than it did in the first quarter.

所以這些是 - 我不知道你是否會將其與工業部分聯繫起來進行銷售，但分銷方面的銷售看起來比第一季度要強得多。

And so we're seeing some acceleration in growth as we've entered 2018.

因此，隨著我們進入 2018 年，我們看到了一些加速增長。

The industrial side, again, it's very broad-based growth, but almost all of it is driven by the need for higher energy efficiency in each of the applications, which gives much more dollar content for us.

工業方面，再次，它是非常廣泛的增長，但幾乎所有這些都是由每個應用程序對更高能效的需求所驅動的，這為我們提供了更多的美元內容。

Our next question comes from Mark Delaney with Goldman Sachs.

我們的下一個問題來自高盛的 Mark Delaney。

I have 2 questions.

我有 2 個問題。

The first is about free cash flow, and I think the company maintained its view for about $800 million of free cash flow this year, but that's despite what you talked about in terms of the higher CapEx requirements, which I think is maybe an $80 million to $90 million incremental headwind to free cash flow.

第一個是關於自由現金流，我認為該公司維持其對今年自由現金流約 8 億美元的看法，但儘管你談到了更高的資本支出要求，我認為這可能是 8000 萬美元9000 萬美元增加自由現金流的阻力。

So can you be a bit more explicit about what would be driving the implied higher view of operating cash flow this year?

那麼，您能否更明確地說明是什麼推動了今年運營現金流的隱含更高觀點？

Is that flow-through from net income?

這是來自淨收入的流動嗎？

Or is there factors like working capital or cash taxes, things like that, that are helping the free cash flow view?

或者是否有諸如營運資金或現金稅之類的因素有助於自由現金流的觀點？

It's primarily from net income with potentially some help from a -- a little bit on cash taxes.

它主要來自淨收入，可能來自現金稅的一些幫助。

But the primary impact is better growth and fall-through on the bottom -- on the net income side.

但主要影響是更好的增長和跌破底部 - 在淨收入方面。

That's helpful.

這很有幫助。

Now the follow-up question is about the view of the communications segment for all of 2018.

現在的後續問題是關於 2018 年全年通信部門的看法。

I think, if I'm not mistaken, Keith, last quarter, you said you thought this segment would not decline this year.

我想，如果我沒記錯的話，Keith，上個季度，你說你認為這個細分市場今年不會下降。

Given what seems like a slower start to the year, is that still the view for the full year?

鑑於今年的開局似乎較慢，這仍然是全年的觀點嗎？

And I ask to help us gauge the potential magnitude of the pickup in the second half of the year in the comms segment.

我要求幫助我們評估下半年通信領域的潛在增長幅度。

Yes, I do expect the second half of the year demand will offset the weakness here at the beginning of the year, and we do expect to see some of the 5G-type spending toward the end of the year.

是的，我確實預計下半年的需求將抵消年初的疲軟，我們確實預計到年底會看到一些 5G 類型的支出。

And the net of that should be kind of flattish.

其網絡應該是平淡無奇的。

(Operator Instructions) Our next question comes from John Pitzer with Crédit Suisse.

（操作員說明）我們的下一個問題來自瑞士信貸的 John Pitzer。

So Keith, I just want to go back to the long-term supply agreements.

所以基思，我只想回到長期供應協議。

I think you said in an answer to an earlier question that you'd never have more than half of your capacity in any product area on long-term supply agreement.

我認為您在回答之前的問題時說過，根據長期供應協議，您在任何產品領域的產能永遠不會超過一半。

I'm just kind of curious if you could quantify the agreements you have in place today either as a percent of capacity or revenue over the lifetime.

我很好奇您是否可以將您今天達成的協議量化為整個生命週期中容量或收入的百分比。

And are you getting any sort of prepayments?

你得到任何形式的預付款嗎？

Because oftentimes, you'll see that in long-term supply agreements to help offset some of the CapEx needs that you have.

因為通常情況下，您會在長期供應協議中看到這一點，以幫助抵消您擁有的一些資本支出需求。

And then just to reiterate an earlier question, these agreements tend to be pretty easy to keep in place when things are tight, a little bit harder to kind of enforce when the industry goes into a less tight supply situation.

然後只是重申一個較早的問題，當情況緊張時，這些協議往往很容易保持到位，當行業進入供應不那麼緊張的情況時，執行起來就有點困難。

So I guess what's your insurance that in a different business environment, you'll get the pricing and the volume commitments that you've asked for?

所以我猜你的保險是什麼，在不同的商業環境中，你會得到你所要求的定價和數量承諾？

Our experience has actually been quite good with customers we engage.

我們的客戶體驗實際上非常好。

They are respectful of the supply agreements.

他們尊重供應協議。

They have not yielded disappointments in the past, and we see continued compliance going forward.

他們過去並沒有讓人失望，我們看到繼續合規。

As far as percentages, it really is mostly in the power areas, and these are customers that, irrespective of market, are seeing growth in those businesses.

就百分比而言，它實際上主要是在電力領域，而這些客戶，無論市場如何，都在這些業務中看到了增長。

So back to my earlier comments on being more secular, we see the demand increasing even with the economy ebbing and flowing.

所以回到我之前關於更世俗化的評論，我們看到即使經濟起伏不定，需求也在增加。

And then, Keith, my -- as a follow-up, you guys have kind of been pruning your portfolio of lower-margin businesses.

然後，基思，我的 - 作為後續行動，你們一直在修剪你的低利潤業務組合。

And despite that, you've been able to put up some good growth rates year-over-year for multiple quarters now.

儘管如此，您現在已經能夠在多個季度中實現一些良好的同比增長率。

I'm just kind of curious, where are you in that process?

我只是有點好奇，你在那個過程中的什麼位置？

And I guess as we think about the target model, as you get a cost advantage by making more of your own wafers, as you continue to prune the portfolio, why wouldn't there be an upside to the target margins over time?

我想，當我們考慮目標模型時，當您通過製造更多自己的晶圓獲得成本優勢時，隨著您繼續修剪產品組合，為什麼隨著時間的推移目標利潤率不會上升？

Certainly, we are expecting to bring in the date for achievement of the target models.

當然，我們預計會帶來實現目標模型的日期。

And then at the Analyst Day next year, we hope to unveil to you how much higher we can go after that.

然後在明年的分析師日上，我們希望向您展示我們之後可以走多遠。

And just as far as pruning low-margin business, are you basically through with that?

就修剪低利潤業務而言，您基本上完成了嗎？

Or is there more revenue you'd be willing to give up to -- so as to drive higher margins?

還是你願意放棄更多的收入——以提高利潤率？

Yes, no, there's still some more to come this year, then we should be done.

是的，不，今年還有更多的事情要做，那麼我們應該完成。

We do have a follow-up question from Craig Ellis with B. Riley.

我們確實有一個來自 Craig Ellis 和 B. Riley 的後續問題。

I just wanted to touch on one of the things we've been looking for on gross margins.

我只是想談談我們一直在尋找的毛利率問題之一。

Bernard, in the past, you said that in the second half of this year, we could expect back-end synergies from your Fairchild acquisition.

伯納德，您過去曾說過，在今年下半年，我們可以期待您收購仙童的後端協同效應。

Can you just help us understand, when would we expect those to hit?

您能幫我們理解一下，我們預計什麼時候會出現這種情況？

And over what period should they be benefiting gross margins at the margin?

他們應該在什麼時期從毛利率中受益？

I expect it to start kicking in, in the second half, as you mentioned, of 2018 and a gradual improvement throughout the second half of '18 and also 2019.

正如您所提到的，我預計它將在 2018 年下半年開始發揮作用，並在 18 年下半年和 2019 年逐步改善。

And then just with regards to -- oh, go ahead.

然後只是關於 - 哦，繼續。

Go ahead.

前進。

With regards to CapEx and its linearity with the guidance at 8% to 9% this year and next, should we expect fairly linear CapEx through the year?

關於資本支出及其與今明兩年指引為 8% 至 9% 的線性關係，我們是否應該期望全年資本支出相當線性？

Or is there any reason it would be either front-end loaded or back-end loaded in either year?

或者有什麼理由在任何一年都加載前端或後端加載？

It's more -- there is lumpiness depending on the delivery of equipment and installation thereof.

更重要的是——根據設備的交付和安裝，存在不均勻性。

So in general terms, we're trying to make it as linear as possible, but there might be ups and downs based on those factors.

所以總的來說，我們試圖讓它盡可能線性，但可能會基於這些因素而起起落落。

Our next question comes from Vijay Rakesh with Mizuho.

我們的下一個問題來自瑞穗的 Vijay Rakesh。

Just wondering, on the inventory side, can you give us a color on how much of it is PC, handsets and how much of it are auto, industrial?

只是想知道，在庫存方面，您能否告訴我們其中有多少是 PC、手機以及有多少是汽車、工業？

So our inventory profile generally tracks the percentage of our business.

因此，我們的庫存概況通常會跟踪我們業務的百分比。

There's not a dramatic change in Q1.

第一季度沒有顯著變化。

There might have been slightly more handset inventory than normal, but everything else should have been right in line.

手機庫存可能比正常情況略多，但其他一切都應該是正確的。

Got it.

知道了。

And I'm just wondering, how much of your wafers are now insourced?

我只是想知道，你們現在有多少晶圓是內購的？

And also, on the EV side, you guys mentioned second half ramps.

而且，在電動汽車方面，你們提到了下半年的坡道。

But are you supplying mostly to U.S. customers or to Chinese OEMs?

但您主要是向美國客戶還是中國 OEM 供應產品？

If you can give us some color there.

如果你能給我們一些顏色。

Okay.

好的。

So on the insourcing part, it's less than 50% today of the raw wafers.

所以在內包部分，現在不到原始晶圓的 50%。

And on the shipments in silicon carbide, it will be more China based.

而在碳化矽的出貨量上，它將更多地以中國為基地。

That concludes our question-and-answer session.

我們的問答環節到此結束。

I would now like to turn the call back over to Parag Agarwal for any further remarks.

我現在想將電話轉回給 Parag Agarwal 以徵求任何進一步的意見。

Thank you, everyone, for joining the call today.

謝謝大家今天加入電話會議。

And please feel free to reach out to us with any follow-up questions.

如有任何後續問題，請隨時與我們聯繫。

Goodbye.

再見。

Ladies and gentlemen, thank you for participating in today's conference.

女士們，先生們，感謝你們參加今天的會議。

This does conclude today's program.

今天的節目到此結束。

You may all disconnect.

你們都可以斷開連接。

Everyone, have a great day.

大家，有一個美好的一天。