安森美 (ON) 2023 Q1 法說會逐字稿

Good day, and thank you for standing by. Welcome to the onsemi First Quarter 2023 Earnings Conference Call. (Operator Instructions) Please be advised, today's conference is being recorded.

美好的一天，謝謝你的支持。歡迎來到 onsemi 2023 年第一季度收益電話會議。 （操作員說明）請注意，今天的會議正在錄製中。

I would now like to hand the conference over to your speaker today, Parag Agarwal. Please go ahead.

我現在想把會議交給今天的發言人 Parag Agarwal。請繼續。

Thank you, Kevin. Good morning, and thank you for joining onsemi's First Quarter 2023 Quarterly Results Conference Call. I'm joined today by Hassane El-Khoury, our President and CEO; and Thad Trent, our CFO.

謝謝你，凱文。早上好，感謝您參加 onsemi 2023 年第一季度季度業績電話會議。今天，我們的總裁兼首席執行官 Hassane El-Khoury 加入了我的行列；和我們的首席財務官 Thad Trent。

This call is being webcast on the Investor Relations section of our website at www.onsemi.com. A replay of this webcast, along with our 2023 first quarter earnings release, will be available on our website approximately 1 hour following this conference call, and the recorded webcast will be available for approximately 30 days following this conference call. Additional information is posted on the Investor Relations section of our website.

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 2023 年第一季度收益的發布將在本次電話會議後約 1 小時在我們的網站上提供，而錄製的網絡廣播將在本次電話會議後約 30 天內提供。更多信息發佈在我們網站的投資者關係部分。

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

我們的收益發布和本演示文稿包括某些非 GAAP 財務指標。這些非 GAAP 財務措施與最直接可比的 GAAP 措施和 GAAP 財務措施的調節包含在我們的收益發布中，該發佈單獨發佈在我們網站的投資者關係部分。

During the course of this conference call, we will make projections or other forward-looking statements regarding future events or the future financial performance of the company. We wish to caution that such statements are subject to risks and uncertainties that could cause actual results or events to differ materially from projections. Important factors that can affect our business including factors that could cause actual results to differ from our forward-looking statements are described in our most recent Form 10-Qs -- Form 10-Qs, other filings with Securities and Exchange Commission and in our earnings release for the first quarter of 2023.

在本次電話會議期間，我們將對未來事件或公司未來的財務業績做出預測或其他前瞻性陳述。我們希望提醒您，此類陳述存在風險和不確定性，可能導致實際結果或事件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，在我們最近的 10-Q 表格 -- 10-Q 表格、提交給美國證券交易委員會的其他文件以及我們的收益中有所描述2023 年第一季度發布。

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

我們的估計或其他前瞻性陳述可能會發生變化，除法律要求外，公司不承擔更新前瞻性陳述以反映實際結果、變更假設或其他可能發生的事件的義務。

Now let me turn it over to Hassane. Hassane?

現在讓我把它交給哈桑。哈桑？

Thank you, Parag. Good morning, and thank you all for joining us today. As we continue our transformation, I'm pleased to report another quarter where we've exceeded expectations with revenue of $1.96 billion and non-GAAP gross margin of 46.8%, both above the midpoint of our guidance.

謝謝你，帕拉格。早上好，感謝大家今天加入我們。隨著我們繼續轉型，我很高興地報告另一個季度，我們超出了預期，收入為 19.6 億美元，非 GAAP 毛利率為 46.8%，均高於我們指導的中點。

The current market environment did not deter us from our goals. We have teams around the world who are committed to operational excellence, and I am proud of the results they have achieved in this first quarter.

當前的市場環境並沒有阻止我們實現目標。我們在世界各地都有致力於卓越運營的團隊，我為他們在第一季度取得的成果感到自豪。

Over the last 2 years, we centered our transformation around the structural changes that would enable us to better navigate the uncertainty in the semiconductor industry. We streamlined our product portfolio, reduced price-to-value discrepancies double down on silicon carbide and improved the overall operations of the company.

在過去的 2 年裡，我們將轉型的重點放在了結構性變化上，這些結構性變化將使我們能夠更好地應對半導體行業的不確定性。我們精簡了產品組合，減少了碳化矽的價格與價值差異，並改善了公司的整體運營。

We have incredible talent in the company, and we have all -- have been all hands on deck to solve some of the world's toughest engineering problems to accelerate the ramp of this next-generation technology. Thanks to our team's relentless efforts, we are seeing greater-than-anticipated silicon carbide results ahead of our internal plan for manufacturing output at every stage of the process from bulls to die to modules. In Q1 alone, these results allowed us to shift nearly double our Q4 revenue and more than half of our 2022 full year revenue. We are on track to grow our revenue to $1 billion in 2023 and that's approximately 5x the revenue of 2022, setting ourselves up for leadership in the silicon carbide market with the majority of the substrate sourced internally.

我們公司擁有令人難以置信的人才，我們所有人都在全力以赴解決世界上一些最棘手的工程問題，以加速下一代技術的發展。由於我們團隊的不懈努力，我們在從公牛到芯片到模塊的過程的每個階段的製造產量內部計劃之前看到了超出預期的碳化矽結果。僅在第一季度，這些結果就使我們將第四季度的收入增加了近一倍，並超過了 2022 年全年收入的一半。我們有望在 2023 年將收入增加到 10 億美元，這大約是 2022 年收入的 5 倍，從而使我們在碳化矽市場處於領先地位，其中大部分襯底都來自內部。

Demand for electric vehicles, ADAS and energy infrastructure remained healthy and with a broad-based macroeconomic slowdown. While our automotive revenue increased 38% year-over-year, it was flat quarter-over-quarter. We are still supply constrained across several automotive technologies, while in some other technologies, we are cautiously monitoring inventory digestion.

對電動汽車、ADAS 和能源基礎設施的需求保持健康，但宏觀經濟普遍放緩。雖然我們的汽車收入同比增長 38%，但環比持平。我們在幾種汽車技術方面仍然受到供應限制，而在其他一些技術方面，我們正在謹慎監控庫存消化情況。

In Q2, we expect to see quarter-over-quarter growth in our automotive revenue. In Q1, we shifted our mix to energy infrastructure where there is high demand and high growth. Our industrial revenue in turn increased 1% sequentially instead of the decline we had anticipated, driven by the need for automotive energy sources and accelerated by global geopolitical issues, installation of energy storage systems is increasing along with our content that includes silicon carbide and silicon power solutions. Pricing across our business is stable, and we don't anticipate any changes in the pricing environment. A significant part of our business is secured by long-term supply agreements and pricing in these agreements is fixed for multiple years. Also, as part of our business transformation, we have walked away from price-sensitive businesses in nonstrategic areas to drive predictable financial results.

在第二季度，我們預計汽車收入將出現環比增長。在第一季度，我們將業務組合轉向需求高、增長快的能源基礎設施。我們的工業收入反過來增長了 1%，而不是我們預期的下降，這是由於對汽車能源的需求和全球地緣政治問題的推動，儲能係統的安裝正在增加，同時我們的內容包括碳化矽和矽動力解決方案。我們業務的定價是穩定的，我們預計定價環境不會發生任何變化。我們業務的很大一部分由長期供應協議提供保障，這些協議中的定價在多年內是固定的。此外，作為我們業務轉型的一部分，我們已經放棄了非戰略領域的價格敏感業務，以推動可預測的財務業績。

In Q1, automotive and industrial accounted for 79% of our total revenue as compared to 65% in the quarter a year ago. When we started our transformation, we targeted 75% of our business to be automotive and industrial by 2025, and we have achieved our desired end result 2 years earlier.

在第一季度，汽車和工業占我們總收入的 79%，而去年同期為 65%。當我們開始轉型時，我們的目標是到 2025 年將 75% 的業務用於汽車和工業，並且我們提前 2 年實現了預期的最終結果。

We also improved our demand visibility across all markets with commitments from our customers, new and existing in the form of LTSAs. These LTSAs also helped reduce our exposure to the volatility in the consumer and computing markets. Volkswagen, as an example, signed a 3-year agreement for more than 100 current production devices giving them the required supply chain sustainability with a major semiconductor partner. Our committed revenue through LTSAs increased again in Q1 by $1 billion.

我們還根據 LTSA 形式的新客戶和現有客戶的承諾，提高了我們在所有市場的需求可見性。這些 LTSA 還有助於減少我們在消費和計算市場波動中的風險。例如，大眾汽車與主要半導體合作夥伴就 100 多個當前生產設備簽署了一份為期 3 年的協議，為他們提供所需的供應鏈可持續性。我們通過 LTSA 承諾的收入在第一季度再次增加了 10 億美元。

We are supporting our customers today while working closely with them on next-generation designs for their intelligent power and sensing needs. In addition to the LTSA, we announced last quarter, we were recently honored with the 2022 Supplier of the Year Award from Hyundai Motor Group which recognized onsemi as a trusted provider for key technology in its ecosystem, offering supply chain resilience and manufacturing sustainability. Customers also recognize us as a strategic partner that provides high value through the entire design cycle, which gives them a competitive edge over their peers.

今天，我們為客戶提供支持，同時與他們密切合作開發下一代設計，以滿足他們的智能電源和傳感需求。除了我們上個季度宣布的 LTSA 之外，我們最近還獲得了現代汽車集團頒發的 2022 年度供應商獎，該獎項將 onsemi 視為其生態系統中關鍵技術值得信賴的供應商，提供供應鏈彈性和製造可持續性。客戶還將我們視為在整個設計週期中提供高價值的戰略合作夥伴，這使他們在同行中具有競爭優勢。

In March, we launched our new Elite power simulation tool to bring complex power electronics applications to market faster through system-level simulations saving design engineers from expensive, time-consuming hardware fabrication and testing in the early stages of development. This tool will also allow us to get a broader customer reach through our distribution network with a low-touch model to design in our products. Global automotive OEMs are choosing to partner with onsemi for the superior performance of our end-to-end silicon carbide solutions. Just last week, we announced an LTSA with ZEEKR, a leading all EV manufacturer in China who has selected onsemi's third-generation 1,200-volt EliteSiC MOSFET to increase the electric powertrain efficiency and extend the range of its expanding portfolio of high-performance electric vehicles.

3 月，我們推出了新的 Elite 電源仿真工具，通過系統級仿真將復雜的電力電子應用更快地推向市場，從而使設計工程師無需在開發的早期階段進行昂貴、耗時的硬件製造和測試。該工具還將使我們能夠通過我們的分銷網絡以低接觸模型設計我們的產品，從而獲得更廣泛的客戶群。全球汽車原始設備製造商選擇與 onsemi 合作，以獲得我們端到端碳化矽解決方案的卓越性能。就在上週，我們宣布了與 ZEEKR 的 LTSA，ZEEKR 是中國領先的全電動汽車製造商，該公司已選擇 onsemi 的第三代 1,200 伏 EliteSiC MOSFET 來提高電動動力總成效率並擴展其不斷擴展的高性能電動汽車產品組合的範圍.

These EliteSiC power devices deliver improved power and thermal efficiency which reduced the size and weight of the traction inverters to deliver improved performance, resulting in extended driving range and faster charging speeds. BMW Group has also selected onsemi's EliteSiC to support range extension for their next-generation electric vehicles. They secured an LTSA with us to equip their future electric drivetrains with our silicon carbide technology to increase efficiency and system level performance.

這些 EliteSiC 功率器件提高了功率和熱效率，從而減小了牽引逆變器的尺寸和重量，從而提高了性能，從而延長了行駛里程並加快了充電速度。寶馬集團還選擇了 onsemi 的 EliteSiC 來支持其下一代電動汽車的續航里程擴展。他們與我們簽訂了一份 LTSA，為他們未來的電動傳動系統配備我們的碳化矽技術，以提高效率和系統級性能。

We also continue to invest in silicon power and as auto OEMs move to a zonal architecture, we deliver intelligent power solutions that meet all voltage range requirements from 12 volts to 48 volts and beyond. Through these strategic partnerships, we are enabling our customer sustainability efforts while also working on our own.

我們還繼續投資矽電源，隨著汽車原始設備製造商轉向區域架構，我們提供智能電源解決方案，滿足從 12 伏到 48 伏及更高電壓範圍的所有要求。通過這些戰略合作夥伴關係，我們在為客戶的可持續發展努力提供支持的同時，也為我們自己努力。

We committed to the science-based targets initiative and pledged to set near-term science-based emission reduction targets in line with SBTi criteria and our decarbonization journey to achieve net 0 emissions by 2040. Our Q1 revenue for Intelligent Sensing increased 26% year-over-year.

我們致力於基於科學的目標倡議，並承諾根據 SBTi 標準和我們的脫碳之旅制定近期的基於科學的減排目標，到 2040 年實現淨零排放。我們的智能傳感第一季度收入同比增長 26%-超過一年。

We introduced our new Hyper Lux family of image sensors to support the transition to 8-megapixel devices, where ASPs can be up to 2.5x that of 1 or 2 megapixel image sensors. Our traction for image sensors in automotive has proliferated into industrial automation and smart retail applications. Our newest 8-megapixel image sensor achieved stunning 4K video quality with optimized near infrared response necessary for industrial applications with harsh lighting conditions such as security and surveillance, body cameras, doorbell cameras and robotics.

我們推出了新的 Hyper Lux 系列圖像傳感器，以支持向 8 兆像素設備的過渡，其中 ASP 最高可達 1 或 2 兆像素圖像傳感器的 2.5 倍。我們對汽車圖像傳感器的關注已經擴散到工業自動化和智能零售應用中。我們最新的 8 兆像素圖像傳感器實現了令人驚嘆的 4K 視頻質量，優化了近紅外響應，這是具有惡劣照明條件的工業應用所必需的，例如安全和監控、隨身攝像頭、門鈴攝像頭和機器人技術。

The shift out of lower-value commodity applications, coupled with capacity expansion and differentiated products and packages reduced the supply-to-demand gap and is driving margin expansion and revenue growth in our focused markets.

低價值商品應用的轉移，加上產能擴張和差異化產品和包裝，減少了供需差距，並推動了我們重點市場的利潤擴張和收入增長。

Automotive and industrial now account for more than 95% of our intelligent sensing business. Beyond image sensing, our intelligent sensing penetration is expanding with other sensing solutions in our portfolio. We shipped our 1 billionth inductive position sensor IC to Hella, one of the largest automotive supplier who uses our technology and their drive by wire systems, such as accelerator pedal sensing, steering and torque sensors as well as actuators for pressure boost and turbos. We also lead the market in automotive ultrasonic sensors with more than 20 sensors in 1 of the latest EV models from a leading European OEMs.

汽車和工業現在占我們智能傳感業務的 95% 以上。除了圖像傳感之外，我們的智能傳感滲透率正在與我們產品組合中的其他傳感解決方案一起擴展。我們向 Hella 運送了第 10 億個電感式位置傳感器 IC，Hella 是最大的汽車供應商之一，使用我們的技術及其線控驅動系統，例如油門踏板感應、轉向和扭矩傳感器以及增壓和渦輪增壓器執行器。我們還在汽車超聲波傳感器市場處於領先地位，在歐洲領先 OEM 的一款最新 EV 車型中配備了 20 多個傳感器。

In Q1, our Intelligent Power and Intelligent Sensing revenue accounted for 69% of our total revenue as compared to 64% in the quarter a year ago. As we get ready for the next chapters and with our journey, we are applying what we know, operational excellence in controlling what we can and executing to our commitments. We have positioned ourselves to lead in our focused markets with superior technology to offer our customers, and we have the agility to pivot and adapt to change as required by the business and market environment. And more importantly, we have the team to execute.

第一季度，我們的智能電源和智能傳感收入占我們總收入的 69%，而去年同期為 64%。當我們為下一章和我們的旅程做好準備時，我們正在運用我們所知道的卓越運營來控制我們可以做的事情並履行我們的承諾。我們已將自己定位為在我們的重點市場中領先，為我們的客戶提供卓越的技術，並且我們能夠根據業務和市場環境的需要靈活地調整和適應變化。更重要的是，我們有團隊來執行。

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

現在我將把電話轉給 Thad，以提供有關我們財務和指導的更多詳細信息。泰德？

Thanks, Hassane. As Hassane highlighted, we exceeded expectations in the first quarter, which is a testament to our employees around the globe who are committed to operational excellence. Our ability to focus, invest and execute has provided benefits across all areas of the business and allowed us to maintain our financial targets while navigating the market uncertainty.

謝謝，哈桑。正如 Hassane 強調的那樣，我們在第一季度超出了預期，這證明了我們在全球範圍內致力於卓越運營的員工。我們專注、投資和執行的能力為業務的所有領域帶來了好處，並使我們能夠在應對市場不確定性的同時維持我們的財務目標。

We continue to identify and extract operational efficiencies in our business groups and corporate functions while identifying gross margin expansion opportunities. I'll start by diving into our results for the first quarter. Total revenue was $1.96 billion, above the midpoint of our guidance, driven by strength in silicon carbide and energy infrastructure. In Q1, our silicon carbide manufacturing output was ahead of our internal plans, and we nearly doubled our Q4 revenue, increasing our confidence in our path to the $1 billion year.

我們繼續在我們的業務組和公司職能中識別和提取運營效率，同時識別毛利率擴張機會。我將首先深入探討我們第一季度的業績。受碳化矽和能源基礎設施實力的推動，總收入為 19.6 億美元，高於我們指導的中點。第一季度，我們的碳化矽製造產量超過了我們的內部計劃，我們第四季度的收入幾乎翻了一番，增強了我們邁向 10 億美元的信心。

Our automotive business now accounts for 50% of total revenue and at $986 million in Q1, it was flat sequentially, offset by a recovery in industrial revenue. Industrial revenue grew by 1% quarter-over-quarter, surpassing our original projections. We anticipate another stellar year for our energy infrastructure business with projected 50% growth over 2022 at accretive gross margins.

我們的汽車業務現在佔總收入的 50%，第一季度為 9.86 億美元，環比持平，被工業收入的複蘇所抵消。工業收入環比增長 1%，超出我們最初的預期。我們預計我們的能源基礎設施業務將迎來又一個輝煌的一年，預計 2022 年將增長 50%，毛利率將增加。

Revenue for the Power Solutions Group, or PSG, was $1 billion, an increase of 3% year-over-year. And we saw sequential gross margin expansion as our silicon carbide ramp exceeded expectations on both revenue and margins. Revenue for the Advanced Solutions Group, or ASG, was $593 million, a decrease of 14% year-over-year. And revenue for the Intelligent Sensing Group, or ISG, was up an impressive 32% year-over-year at a record of $354 million. ISG's impressive turnaround continues as Q1 was also their 11th quarter of gross margin expansion with record gross margin exceeding 50%.

電源解決方案集團 (PSG) 的收入為 10 億美元，同比增長 3%。由於我們的碳化矽增長超出了收入和利潤率的預期，我們看到了連續的毛利率擴張。 Advanced Solutions Group (ASG) 的收入為 5.93 億美元，同比下降 14%。智能傳感集團 (ISG) 的收入同比增長 32%，達到創紀錄的 3.54 億美元，令人印象深刻。 ISG 令人印象深刻的好轉仍在繼續，因為第一季度也是他們毛利率增長的第 11 個季度，毛利率超過 50%。

As a corporation, our consolidated gross margin held up nicely. GAAP and non-GAAP gross margin for the first quarter was 46.8%, above the midpoint of our guidance driven by higher-than-anticipated industrial revenue and improved manufacturing performance for silicon carbide output. We also exited an additional $47 million of revenue in the quarter at an average gross margin in the mid-40% range, bringing the total revenue to date to $341 million of noncore business exits. Our non-GAAP gross margin declined by 160 basis points quarter-over-quarter as expected with the ramp-up of silicon carbide and EFK headwinds and lower factory utilization of 71% as we continue to slow wafer starts.

作為一家公司，我們的綜合毛利率保持良好。第一季度的 GAAP 和非 GAAP 毛利率為 46.8%，高於我們指引的中點，這是由於高於預期的工業收入和碳化矽產量的製造績效改善所致。本季度我們還退出了 4700 萬美元的額外收入，平均毛利率在 40% 左右，使迄今為止非核心業務退出的總收入達到 3.41 億美元。我們的非 GAAP 毛利率環比下降 160 個基點，正如預期的那樣，由於碳化矽和 EFK 逆風的增加以及工廠利用率降低 71%，因為我們繼續放慢晶圓啟動。

Q1 was our first quarter of operations since acquiring our 300-millimeter fab in East Fishkill. The current operating cost is much higher than we had anticipated, so the dilutive impact is greater than we previously expected. However, based on our current outlook, we are confident we can realign the cost structure of the fab and drive efficiencies to recover by early 2024. As demonstrated in Q1, we expect to maintain our gross margin trajectory for 2023.

第一季度是我們收購位於 East Fishkill 的 300 毫米晶圓廠以來的第一季度運營。目前的運營成本遠高於我們的預期，因此攤薄影響大於我們之前的預期。然而，根據我們目前的展望，我們有信心可以在 2024 年初重新調整晶圓廠的成本結構並推動效率恢復。正如第一季度所示，我們預計將保持 2023 年的毛利率軌跡。

Our financial strategy remains unchanged as does our capital allocation strategy. In Q1, we returned more than 100% of our free cash flow to our shareholders with share repurchases of $104 million. This was the first repurchase from our new authorization, which allows us to repurchase up to $3 billion through 2025. Additionally, we issued $1.5 billion in convertible notes in Q1 with the proceeds used to repay our term loan. This was essentially leverage-neutral and highly accretive as we swapped out a portion of our variable rate debt approaching 7% with a fixed rate convert with a coupon of 50 basis points. We also entered a call spread transaction increasing the effective strike price to $156.78 per share, providing significant dilution protection.

我們的財務戰略和我們的資本配置戰略保持不變。第一季度，我們通過 1.04 億美元的股票回購將 100% 以上的自由現金流返還給股東。這是我們新授權的第一次回購，這使我們能夠在 2025 年之前回購高達 30 億美元。此外，我們在第一季度發行了 15 億美元的可轉換票據，所得款項用於償還我們的定期貸款。這基本上是槓桿中性的，並且高度增值，因為我們將接近 7% 的可變利率債務的一部分換成了固定利率轉換，票息為 50 個基點。我們還進行了看漲期權價差交易，將有效行使價提高至每股 156.78 美元，提供了顯著的稀釋保護。

Now let me give you some additional numbers for your models. GAAP operating expenses for the first quarter were $352.6 million as compared to $314.1 million in the first quarter of 2022. Non-GAAP operating expenses were $286 million as compared to $302.8 million in the quarter a year ago. Non-GAAP operating expenses were below our guidance as we manage discretionary spending across the company, given the uncertain macro environment. We also initiated structural changes to ASG to improve operational efficiency by reallocating resources to high-growth R&D initiatives while improving our product development and time to market on industry-leading proprietary products.

現在讓我為您的模型提供一些額外的數字。第一季度的 GAAP 運營費用為 3.526 億美元，而 2022 年第一季度為 3.141 億美元。非 GAAP 運營費用為 2.86 億美元，而去年同期為 3.028 億美元。鑑於不確定的宏觀環境，我們管理整個公司的可自由支配支出，因此非 GAAP 運營費用低於我們的指導。我們還對 ASG 進行了結構調整，以通過將資源重新分配給高增長的研發計劃來提高運營效率，同時改進我們的產品開發和行業領先的專有產品的上市時間。

GAAP operating margin for the fourth quarter was 28.8% and non-GAAP operating margin was 32.2%, a decrease of 190 basis points quarter-over-quarter. Our non-GAAP tax rate was 16.3%. GAAP earnings per diluted share for the first quarter was $1.03 as compared to $1.18 in the quarter a year ago. Non-GAAP earnings per share was $1.19, above the high end of our guidance. Our GAAP diluted share count was 448.5 million shares, and our non-GAAP diluted share count was 439.1 million shares.

第四季度 GAAP 營業利潤率為 28.8%，非 GAAP 營業利潤率為 32.2%，環比下降 190 個基點。我們的非 GAAP 稅率為 16.3%。第一季度的 GAAP 每股攤薄收益為 1.03 美元，而去年同期為 1.18 美元。非 GAAP 每股收益為 1.19 美元，高於我們指引的上限。我們的 GAAP 稀釋股數為 4.485 億股，我們的非 GAAP 稀釋股數為 4.391 億股。

Turning to the balance sheet. Cash and cash equivalents was $2.7 billion, and we had $1.6 billion undrawn on our revolver. Cash from operations was $408.9 million, and free cash flow was $87.4 million or 4.4% of revenue. Free cash flow was negatively impacted by timing of annual bonuses and CapEx payments.

轉向資產負債表。現金和現金等價物為 27 億美元，我們的左輪手槍有 16 億美元未動用。運營現金為 4.089 億美元，自由現金流為 8740 萬美元，佔收入的 4.4%。年度獎金和資本支出支付的時間安排對自由現金流產生了負面影響。

Capital expenditures during Q1 were $321.5 million, which equates to a capital intensity of 16.4% for the quarter. As we indicated previously, we are directing a significant portion of our capital expenditures towards silicon carbide and enabling our 300-millimeter capabilities at East Fishkill fab and expect our capital intensity to be in the mid- to high-teen percentage range for the next several quarters. Accounts receivable of $880.9 million increased by $38.6 million, and DSO of 41 days increased by 4 days. Inventory increased by $198.1 million sequentially and days of inventory increased by 23 days to 159 days. This includes approximately 43 days of bridge inventory to support fab transitions in the impending silicon carbide ramp. We continue to proactively manage distribution inventory, decreasing inventory in the channel by $79 million sequentially and at historically low levels with weeks of inventory at 7 weeks compared to 7.3 weeks in Q4. Total debt was $3.5 billion and net leverage is $0.25 billion. In Q1, we accrued $41 million in our balance sheet under property, plant and equipment related to the 25% investment tax credit for investments in our U.S. factories. This will eventually flow through our income statement as lower depreciation and will receive the associated cash benefit in the future.

第一季度的資本支出為 3.215 億美元，相當於本季度資本密集度為 16.4%。正如我們之前指出的那樣，我們將很大一部分資本支出用於碳化矽，並在 East Fishkill 工廠啟用我們的 300 毫米產能，並預計我們的資本強度在接下來的幾個百分比範圍內處於中高百分比範圍內宿舍。 8.809億美元的應收賬款增加了3860萬美元，41天的DSO增加了4天。存貨環比增加 1.981 億美元，存貨天數增加 23 天至 159 天。這包括大約 43 天的橋樑庫存，以支持即將到來的碳化矽坡道中的晶圓廠過渡。我們繼續主動管理分銷庫存，將渠道庫存連續減少 7900 萬美元，處於歷史低位，庫存週數為 7 週，而第四季度為 7.3 週。總債務為 35 億美元，淨槓桿為 2.5 億美元。在第一季度，我們在資產負債表中的財產、廠房和設備項下累計了 4100 萬美元，這與我們在美國工廠投資的 25% 投資稅收抵免有關。這最終將作為較低的折舊流入我們的損益表，並將在未來獲得相關的現金收益。

Let me now provide you key elements of our non-GAAP guidance for the second quarter. A table detailing our GAAP and non-GAAP guidance is provided in the press release related to our first quarter results. Our business continues to strengthen with total committed revenue under LTSAs of $17.6 billion, an increase of $1 billion quarter-over-quarter. We expect to recognize approximately $5.8 billion of committed revenue from our LTSAs in the next 12 months in addition to our noncanceled nonreturnable orders. Given the macro uncertainty, we are taking a cautious stance in our guidance. We anticipate Q2 revenue will be in the range of $1.975 billion to $2.075 billion. We expect automotive and industrial to increase quarter-over-quarter with other markets flat to down as we plan further exits in our nonstrategic end markets.

現在讓我為您提供我們第二季度非 GAAP 指南的關鍵要素。與我們第一季度業績相關的新聞稿中提供了一張表格，詳細說明了我們的 GAAP 和非 GAAP 指南。我們的業務繼續加強，LTSA 下的總承諾收入為 176 億美元，環比增長 10 億美元。除了我們未取消的不可退貨訂單外，我們預計在未來 12 個月內將從我們的 LTSA 確認約 58 億美元的承諾收入。鑑於宏觀不確定性，我們對我們的指導持謹慎態度。我們預計第二季度收入將在 19.75 億美元至 20.75 億美元之間。我們預計汽車和工業將比上一季度增長，而其他市場則持平或下降，因為我們計劃進一步退出我們的非戰略終端市場。

We expect non-GAAP gross margin to be between 45.5% and 47.5% due to lower factory utilization, EFK headwinds and the dilutive impact of ramping silicon carbide, which remains ahead of plan. This also includes share-based compensation of $4.5 million. As we previously stated, 2023 will be a transition year for our gross margins, and we expect to maintain our trajectory as we manage these temporary headwinds. We expect non-GAAP operating expenses of $297 million to $312 million, including share-based compensation of $28.8 million. We anticipate our non-GAAP OIE will be $3 million to $5 million. We expect our non-GAAP tax rate to be in the range of 15.5% to 16.5%, and our non-GAAP diluted share count for the second quarter is expected to be approximately 440 million shares. This results in non-GAAP earnings per share to be in the range of $1.14 to $1.28. We expect capital expenditures of $420 million to $460 million, primarily in brownfield investments in silicon carbide and EFK, which are a more efficient use of capital than the greenfield alternative of building a fab from the ground up.

由於較低的工廠利用率、EFK 逆風和碳化矽的稀釋影響，我們預計非 GAAP 毛利率將在 45.5% 和 47.5% 之間，這仍然提前於計劃。這還包括 450 萬美元的股權報酬。正如我們之前所說，2023 年將是我們毛利率的過渡年，我們希望在應對這些暫時的逆風時保持我們的軌跡。我們預計非 GAAP 運營費用為 2.97 億美元至 3.12 億美元，其中包括 2880 萬美元的股權薪酬。我們預計我們的非 GAAP OIE 將為 300 萬至 500 萬美元。我們預計我們的非 GAAP 稅率將在 15.5% 至 16.5% 之間，我們第二季度的非 GAAP 稀釋後股份數量預計約為 4.4 億股。這導致非 GAAP 每股收益在 1.14 美元至 1.28 美元之間。我們預計資本支出為 4.2 億至 4.6 億美元，主要用於對碳化矽和 EFK 的棕地投資，與從頭開始建造晶圓廠的綠地替代方案相比，這些資本的使用效率更高。

We are very proud of our financial results through this transformation and will continue to deliver value for our shareholders. We are equally pleased with our cultural transformation. onsemi is a very different company today. We challenged the status quo, and we hold ourselves accountable to our commitments. As many of you know, we will be holding an Analyst Day in New York on May 16, and we look forward to sharing our future plans to accelerate value for our shareholders. We hope to see you there.

我們對通過這次轉型取得的財務成果感到非常自豪，並將繼續為我們的股東創造價值。我們對我們的文化轉型同樣感到滿意。今天的 onsemi 是一家非常不同的公司。我們挑戰現狀，我們對自己的承諾負責。正如你們許多人所知，我們將於 5 月 16 日在紐約舉辦分析師日，我們期待分享我們未來的計劃，以加速為股東創造價值。我們希望看到你在那裡。

With that, I'd like to turn the call back over to Kevin to open the line for questions.

有了這個，我想把電話轉回給凱文，讓他打開問題熱線。

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

（操作員說明）我們的第一個問題來自德意志銀行的 Ross Seymore。

Hassane, I wanted to ask about the auto side of your business. Investors are getting a little more concern just about that market, given that it's one of the few that hasn't cyclically adjusted and you guys were flat sequentially versus what you thought would be up a bit, and that's all despite the silicon carbide side upsiding. So I guess, could you just talk a little bit about what you're seeing there, inventory demand and perhaps separate the silicon carbide side from the other parts of the business when you give that answer, please?

Hassane，我想問一下你的汽車業務。考慮到它是少數沒有進行週期性調整的市場之一，投資者對這個市場的擔憂有所增加，而且你們的連續持平與你們認為會上漲的情況相比，儘管碳化矽方面有所上漲，但僅此而已.所以我想，當您給出答案時，您能否談談您在那裡看到的情況、庫存需求，以及可能將碳化矽方面與業務的其他部分分開？

Sure. Look, obviously, for silicon carbide, it's a ramping business for us. You've seen tremendous progress in the first quarter, slightly ahead of where we thought we would be based on just the team doing a stellar job ramping the technology. that's going to keep ramping throughout the year. You can think about it as an uptick in the second half as we accelerate exiting the year on track for our -- the $1 billion that we talked about. And every day, we add more and more confidence in those numbers. The rest of automotive, obviously, we have some technologies that remain constrained. So demand is healthy. We remain constrained in our ability to supply to that demand. You can think about that as our silicon, high voltage, silicon medium voltage that not just go to the EV demand, but also a broader aspect of that demand. Other technologies, we're monitoring the inventory digestion, as I said in my prepared remarks. That was kind of the first quarter where we wanted to look at it. We used that opportunity to drain the distribution inventory, where you see we went from 7.3 to 7 weeks. And that's a pretty big number over $70 million drained from the inventory because we wanted to set ourselves up for the uncertainty in the second half of the year that everybody keeps talking about. So from a demand, I'm comfortable with the EV. That's a ramping business for us. The rest, we're cautiously monitoring. However, as I mentioned in my prepared remarks, Q2 is an up quarter for us in Q1. So you can think about automotive as we took a breather in Q1 to test the inventory, and we're going to keep ramping for the rest of the year. Full year, we're going to be up from last year. So that gives you kind of an idea on the overall demand as we see it outside of quarter-on-quarter fluctuation.

當然。很明顯，對於碳化矽來說，這對我們來說是一項蓬勃發展的業務。你在第一季度看到了巨大的進步，略高於我們認為我們將基於團隊在提陞技術方面所做的出色工作。這將在全年保持增長。你可以把它看作是下半年的一個上升，因為我們加速退出了我們談到的 10 億美元的年度。每一天，我們都對這些數字越來越有信心。顯然，在汽車的其餘部分，我們有一些技術仍然受到限制。所以需求是健康的。我們滿足該需求的能力仍然受到限制。您可以將其視為我們的矽、高壓、矽中壓，不僅滿足電動汽車需求，而且還滿足該需求的更廣泛方面。其他技術，正如我在準備好的發言中所說，我們正在監測庫存消化情況。那是我們想要查看的第一季度。我們利用這個機會耗盡了分銷庫存，你看到我們從 7.3 週減少到 7 週。這是一個相當大的數字，超過 7000 萬美元從庫存中流失，因為我們想為下半年每個人都在談論的不確定性做好準備。所以從需求來看，我對電動汽車很滿意。這對我們來說是一項蓬勃發展的業務。其餘的，我們正在謹慎監控。然而，正如我在準備好的發言中提到的那樣，第二季度對我們來說是第一季度的增長季度。因此，當我們在第一季度稍事休息以測試庫存時，您可以考慮汽車行業，我們將在今年餘下時間繼續增加。全年，我們將從去年開始。因此，這讓您對我們在季度環比波動之外看到的整體需求有所了解。

Perfect. And I guess moving for my follow-up over to Thad on the gross margin side of things. It seems like there were quite a few moving parts, especially the East Fishkill and the silicon carbide side, but the net of it all seems to be right in line with your plan. Can you just talk a little bit about those moving parts, East Fishkill's more expensive, but silicon carbide is ahead of plan. Does that still net out to the same trajectory through the rest of the year? Just walk us through those puts and takes and maybe the utilization side as part of that as well, please?

完美的。我想在毛利率方面對 Thad 進行後續跟進。似乎有很多活動部件，尤其是 East Fishkill 和碳化矽一側，但總的來說似乎完全符合您的計劃。你能談談那些活動部件嗎，East Fishkill 的更貴，但碳化矽比計劃提前。在今年餘下的時間裡，這是否仍會保持相同的軌跡？請向我們介紹這些投入和投入，也許利用方面也是其中的一部分，好嗎？

Yes. So the utilization dropped in the quarter from about 74% to 71%. We expect kind of what we're seeing right now is utilization to stay in that range, plus or minus for the remainder of the year. Obviously, if there's a second half recovery, we can ramp up quickly. You nailed it on the rest of it, silicon carbide performed better than expected. EFK cost, as I said, is coming in significantly higher than we expected. You can think about these as being kind of orders of magnitude more dilutive than what we expected. The good news is we are absorbing that. As I said, we're finding additional opportunities to improve gross margin across the company, and we're able to absorb that. We believe by the time we get into 2024, we've got the cost structure of EFK back in line to where we would expect it to be. So we're really confident in the margin outlook for this year. I don't think anything changes. I think if we look at street consensus for gross margin for 2023. Even with these headwinds, we think we can execute to that -- those expectations.

是的。因此，該季度的利用率從大約 74% 下降到 71%。我們預計我們現在看到的情況是利用率將保持在該範圍內，在今年剩餘時間裡會增加或減少。顯然，如果下半年出現復甦，我們可以迅速提升。你把它釘在了它的其餘部分，碳化矽的表現比預期的要好。正如我所說，EFK 成本遠高於我們的預期。你可以認為這些比我們預期的稀釋了幾個數量級。好消息是我們正在吸收它。正如我所說，我們正在尋找更多機會來提高整個公司的毛利率，我們能夠吸收這些機會。我們相信，到 2024 年時，我們已經將 EFK 的成本結構恢復到我們預期的水平。所以我們對今年的利潤率前景非常有信心。我認為沒有任何改變。我認為，如果我們看看 2023 年毛利率的街頭共識。即使有這些不利因素，我們認為我們可以執行這些預期。

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

我們的下一個問題來自美國銀行證券公司的 Vivek Arya。

Hassane, I wanted to ask about your plans for insourcing the material side for silicon carbide. Can you give us a progress on how that's going? I believe you said during the prepared remarks that you are targeting to be majority in-sourced. Is that a full year comment? Is that an exiting Q4 comment? So just give us an update on where you are from an in-sourcing perspective. And let's say, if you are majority in-sourced exiting the year, how does that help you on the gross margin side?

Hassane，我想問一下您計劃內包碳化矽的材料方面。你能告訴我們進展如何嗎？我相信您在準備好的發言中說過，您的目標是實現多數內包。這是一整年的評論嗎？這是第 4 季度的退出評論嗎？因此，請從內包的角度向我們提供最新情況。比方說，如果你在今年退出了大部分內包，這對你的毛利率有何幫助？

Yes. Look, my comment is exiting the year. It's basically reiterating our plan that I've stated throughout the year -- last year of establishing the supply, establishing the growth in our Hudson facility in order to set ourselves up exiting the year majority. So that holds even more now given the progress that we've had in Hudson just in the last quarter, which drove a lot of our favorability in our results and the gross margin, as Thad talked about. So I remain very, very happy with where we are from the progress and the confidence that we have in reiterating our plans. As far as the gross margin, obviously, insourced is always better because you can see the merchant, there's always margin stacking that happens to our ability to be able to mix and have a majority exiting of course, helps the margin as we move through the year. But the biggest portion of the margin expansion for silicon carbide is really going to come from the utilization of the fixed cost that we've implemented and that remains on track for us to get that business to at or above the corporate margin. So we remain very focused on that and really satisfied with -- where we've done so far.

是的。看，我的評論退出了這一年。這基本上是在重申我們全年的計劃——去年建立供應，建立我們哈德遜工廠的增長，以便讓我們自己退出今年的多數。因此，鑑於我們在上個季度在哈德遜取得的進展，現在更是如此，正如 Thad 所說，這推動了我們對結果和毛利率的青睞。因此，我對我們取得的進展以及我們重申計劃的信心仍然非常、非常高興。就毛利率而言，顯然，內包總是更好，因為你可以看到商家，我們能夠混合的能力總是會發生利潤疊加，當然，大多數人退出，這有助於我們通過年。但碳化矽利潤率增長的最大部分實際上將來自我們已經實施的固定成本的利用，並且我們仍有望使該業務達到或超過公司利潤率。因此，我們仍然非常專注於此，並且對我們迄今為止所做的事情感到非常滿意。

Got it. And for my follow-up, Hassane, I think you mentioned that -- so specific to autos that you took the opportunity in Q1 to drain some of the inventories. How are you seeing the overall pricing environment as you look Q2 through Q4 versus what you thought earlier? Are there any changes? There's a lot of macro crosscurrents, but how is that impacting your automotive outlook Q2 through Q4, especially on the pricing side? Are there any changes one way or another?

知道了。對於我的後續行動，Hassane，我想你提到了這一點 - 如此具體到汽車，以至於你在第一季度抓住機會消耗了一些庫存。從第二季度到第四季度，與您之前的想法相比，您如何看待整體定價環境？有什麼變化嗎？有很多宏觀交叉流，但這如何影響您的第二季度至第四季度的汽車前景，尤其是在定價方面？有任何變化嗎？

Absolutely, no changes. It's actually very, very predictable, and that's really the benefit that we've been talking about with the LTSAs that have us really, with our customers, align on pricing and volume through the duration of the LTSAs. So no conversations about pricing. The focus has always remained on supply and that's holding up not just through the year, but through the extent of the LTSAs we have with the customers. So very, very stable and no pressure on that. And by the way, it's not just in automotive. The pricing is holding up across all markets where we have LTSAs. And we -- because we -- as you know, we've been focusing on products that provide value. It's not a pricing conversation. It's about what the products bring to the customer, the things that would have pricing pressures. Thad talked about how we have been focusing on exiting those -- that business to the point where it's above -- the business we exited had a 4-handle on the gross margin, and we still are steadfast on exiting because that is where the margin pressure will come in and the pricing pressure, and we're not going to play in these markets, and we're getting ahead of it and exiting those businesses.

絕對沒有變化。這實際上是非常非常可預測的，這確實是我們一直在與 LTSA 討論的好處，它讓我們和我們的客戶在 LTSA 的持續時間內在定價和數量上保持一致。所以沒有關於定價的對話。重點始終放在供應上，這不僅持續了一年，而且還持續了我們與客戶簽訂的 LTSA 的範圍。非常非常穩定，沒有壓力。順便說一下，這不僅僅是在汽車領域。在我們擁有 LTSA 的所有市場中，定價都保持不變。我們——因為我們——如你所知，我們一直專注於提供價值的產品。這不是定價對話。它是關於產品給客戶帶來什麼，那些會產生定價壓力的東西。 Thad 談到了我們如何一直專注於退出那些業務 - 業務達到以上水平 - 我們退出的業務在毛利率上有 4 個句柄，我們仍然堅定地退出，因為這是利潤率壓力和定價壓力將會到來，我們不會在這些市場上發揮作用，我們正在領先於它並退出這些業務。

Our next question comes from Chris Danely with Citi.

我們的下一個問題來自花旗銀行的 Chris Danely。

I didn't know I went from a Jewish to Italian overnight. Anyway, can you just give us a little update and some color on the shortages and the lead time situation. I guess for Hassane, our shortages pretty much exclusively in the automotive business? Or are they elsewhere? And then is there any point in time this year where you think the shortages will go away?

我不知道我一夜之間從猶太人變成了意大利人。不管怎樣，你能不能給我們一些關於短缺和交貨時間情況的更新和一些顏色。我想對於 Hassane 來說，我們的短缺幾乎完全集中在汽車行業？或者他們在別處？那麼今年有什麼時間點你認為短缺會消失嗎？

Yes. Look, so the -- for me, I always refer to shortages as technologies because they're across all markets where we provide them high-voltage silicon is, of course, a constrained technology for us. We ramp capacity, yet the demand is much higher than even our increased capacity. And for that business, for example, goes into automotive and it goes into industrial, specifically in our alternative energy. And as Thad said, that's ramping very nicely this year after a very stellar '22 ramp that we talked about last year. So that is a technology that is constrained. We have some intelligent power technologies that are constrained. Think about it as a mixed signal analog, where demand in automotive and demand in industrial both have been increasing ahead of the capacity we've added. So those are technologies, agnostic of markets. We remain constrained not because of just capacity, but demand keeps accelerating because of the markets we are participating in.

是的。看，所以 - 對我來說，我總是將短缺稱為技術，因為它們遍及我們為他們提供高壓矽的所有市場，當然，對我們來說是一種受限的技術。我們提高了產能，但需求遠高於我們增加的產能。例如，對於該業務，它進入汽車行業，進入工業領域，特別是在我們的替代能源領域。正如 Thad 所說，在我們去年談到了非常出色的 22 年增長之後，今年的增長非常好。所以這是一種受限的技術。我們有一些受限的智能電源技術。將其視為混合信號模擬，其中汽車和工業需求的增長都超過了我們增加的容量。所以這些都是技術，與市場無關。我們仍然受到限制，不僅僅是因為產能，而是因為我們所參與的市場，需求不斷加速。

As far as the second half of the year, that really depends on what your view is for the second half of the year. Based on our outlook, that technology will still remain constrained there. While in other areas, not in these specific technologies, we're seeing some flattening in our lead times and therefore, we can see some of that easing. But the second half is really going to depend on how -- what the demand does. And based on our outlook, we're going to remain constrained.

至於下半年，這真的取決於你對下半年的看法。根據我們的展望，該技術仍將在那裡受到限制。而在其他領域，而不是在這些特定技術中，我們看到我們的交貨時間有些趨於平緩，因此，我們可以看到一些緩和。但下半年實際上將取決於需求的方式。根據我們的展望，我們將繼續受到限制。

Yes. And on the lead time, lead times are relatively stable, running kind of in that 41 to 43-week time frame. Quarter-on-quarter, I think down a week to 2 weeks, but I would call it pretty much across the board, lead times are stable.

是的。在交貨時間方面，交貨時間相對穩定，在 41 到 43 週的時間範圍內運行。季度環比，我認為減少了一周到兩週，但我認為它幾乎是全面的，交貨時間是穩定的。

Okay. Great. And then for my follow-up, just I guess one for Thad. So as the CapEx is ramping that, can you just talk about maybe over the next 3 to 5 years, how that's going to impact depreciation and gross margin? And can this all be offset by the efficiencies? Or what will be the -- I guess, the gross margin headwind from all this CapEx a little farther down the road?

好的。偉大的。然後對於我的後續行動，我猜 Thad 就是其中之一。因此，隨著資本支出的增加，您能否談談未來 3 到 5 年，這將如何影響折舊和毛利率？這一切都可以通過效率來抵消嗎？或者，我猜，所有這些資本支出對毛利率的不利影響會是什麼？

Yes. Well, I would start out by saying we're making big investments in silicon carbide and EFK, as I've mentioned. Now as you think about our capital expansion and expansion and just capacity, is to support the LTSAs that we have, right? So this is not a situation where we're building capacity, hoping that we can fill it. So we're very comfortable that with our margin projections that we can absorb that additional depreciation. I would tell you, in general, I wouldn't call it significant, but what you would see is offsetting revenue and gross margin to offset that depreciation.

是的。好吧，正如我所提到的，我首先要說我們正在對碳化矽和 EFK 進行大量投資。現在，當您考慮我們的資本擴張和擴張以及產能時，就是為了支持我們擁有的 LTSA，對嗎？所以這不是我們正在建設能力，希望我們能夠填補它的情況。因此，我們非常滿意我們的利潤率預測可以吸收額外的折舊。我會告訴你，一般來說，我不會稱之為重要，但你會看到抵消收入和毛利率以抵消折舊。

Our next question comes from Toshiya Hari with Goldman Sachs.

我們的下一個問題來自高盛的 Toshiya Hari。

I had a follow-up question on gross margins as well Thad. Just curious how we should be thinking about the timing of headwinds from both the silicon carbide ramp and the EFK ramp peaking. Is that sort of a second half '23 dynamic? Or should we expect the headwinds to stay relatively elevated in the early part of '24? And also the benefits from your fab-lite strategy, I think you've sized it at $160 million in reduced costs over time. When should we expect those benefits to kick in?

我還有一個關於毛利率的後續問題以及 Thad。只是好奇我們應該如何考慮來自碳化矽斜坡和 EFK 斜坡峰值的逆風時間。那是 23 年下半年的動態嗎？還是我們應該期望逆風在 24 世紀初期保持相對較高的水平？還有你的 fab-lite 策略的好處，我認為你已經將它的規模定為 1.6 億美元，隨著時間的推移成本降低了。我們應該期待這些好處什麼時候開始？

Yes. So the -- the impact of the $160 million, I'll start there. We expect to get that as we exit those fabs. We think that really starts to kick in, in '24 and '25 it takes at least 3 years to exit a fab. So I think most of that starts to roll in -- in '24 and '25. On the headwinds from silicon carbide and EFK, so the EFK has already hit us in Q1. You can think about that as being pretty consistent through the year. We think by early 2024, we can get that back in line and it isn't the headwind that we got surprised with.

是的。所以 - 1.6 億美元的影響，我將從那裡開始。我們希望在退出這些晶圓廠時得到它。我們認為這真的開始發揮作用，在 24 和 25 年退出晶圓廠至少需要 3 年時間。所以我認為其中大部分開始出現——在 24 和 25 年。在碳化矽和 EFK 的逆風中，EFK 已經在第一季度打擊了我們。您可以將其視為全年都非常一致。我們認為到 2024 年初，我們可以恢復正常，這並不是我們感到驚訝的逆風。

On silicon carbide, it's ahead of schedule, which is really great. It's performing much better than we expected. There is a headwind there. We think it likely peaks kind of in that Q3 time frame. And then we think by the time we get the 24, it's -- those margins are at the corporate average. So that's behind us as well. EFK will be a little bit of a drag, as we've talked about in previously, in '24 and '25 as we continue to do that foundry business for GlobalFoundries, but we think we can get the cost structure back in line this year.

在碳化矽上，提前了，真是太好了。它的表現比我們預期的要好得多。那裡有逆風。我們認為它可能會在第三季度的時間範圍內達到頂峰。然後我們認為當我們獲得 24 時，它是 - 這些利潤率處於公司平均水平。所以這也在我們身後。 EFK 會有點拖累，正如我們之前在 24 年和 25 年討論的那樣，因為我們繼續為 GlobalFoundries 開展代工業務，但我們認為今年我們可以使成本結構恢復正常.

That's helpful. And then as my follow-up, one for Hassane. Previous Analyst Day, you had guided revenue growth for the overall company in kind of the 7% to 9% range. I think that was a 2025 model. I think you have pretty good visibility given the LTSA pipeline. Is the 7% to 9% range still the right range in your view as you think about the overall company over the next several years? Or do you think with silicon carbide and some of the other opportunities that you've secured, you could potentially outgrow that?

這很有幫助。然後作為我的後續行動，一個是哈桑。上一個分析師日，您指導整個公司的收入增長在 7% 到 9% 的範圍內。我認為那是 2025 年的模型。考慮到 LTSA 管道，我認為您的可見性非常好。在您考慮未來幾年的整個公司時，您認為 7% 到 9% 的範圍是否仍然是正確的範圍？或者你認為碳化矽和你已經獲得的其他一些機會，你有可能超越它嗎？

Well, I would say must be present to win. I'll see you in -- at our Analyst Day on May 16 for that one.

好吧，我想說必須在場才能獲勝。我會在 5 月 16 日的分析師日見。

Our next question comes from Harsh Kumar with Piper Sandler.

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

First of all, congratulations on a very successful transition so far Hassane, the talent team and then also the near-term results in a choppy environment. So the first question I had is we had a peer of yours in other perhaps segment in the auto business that had poor results out of China or at least they blame China EV slowdown. I was curious, given your position in China, if you could comment on what you're seeing in the EV market? And then I've got a follow-up.

首先，祝賀 Hassane、人才團隊以及近期在動盪環境中取得的成功過渡。所以我的第一個問題是，我們在汽車業務的其他領域有一個同行，他們在中國的業績不佳，或者至少他們將責任歸咎於中國電動汽車的放緩。我很好奇，鑑於您在中國的職位，您是否可以評論一下您在電動汽車市場上看到的情況？然後我有一個後續行動。

Yes. Look, I mean, we all see the EV market in China. But the difference for us is China for us is a ramping market, and that's really going to be contributing to our ramp throughout the year. So even if the demand, call it, on the top demand is a little choppy out of China for us, it's incrementally favorable, and we're going to continue to ramp there. So we don't see it. We're kind of disconnected from it, given that for us, it's a ramp. It's not a mature market yet. And that puts us in a very good position.

是的。看，我的意思是，我們都看到了中國的電動汽車市場。但對我們來說不同的是，中國對我們來說是一個不斷增長的市場，這真的會為我們全年的增長做出貢獻。因此，即使需求，稱之為，對我們來說，中國的最高需求有點不穩定，但它逐漸有利，我們將繼續在那裡增加。所以我們看不到它。我們有點與它脫節，因為對我們來說，這是一個斜坡。這還不是一個成熟的市場。這使我們處於非常有利的位置。

Thanks Hassane. And then maybe one for Thad. What is -- you talked about the timing for the silicon carbide headwind and the Fishkill headwind. Could you quantify what you're seeing in terms of headwind? Would you be able to give us a number? And then the second part of that question is, I think, Hassane, you mentioned in your comments that -- or maybe Thad did that by the third quarter time frame, your silicon carbide business would be at corporate margins. So are we thinking 40s, high 40s? Or are we thinking 50s ultimately as a stable gross margin for the silicon carbide business?

謝謝哈桑。然後也許是給薩德的。什麼是——你談到了碳化矽逆風和 Fishkill 逆風的時機。你能量化你所看到的逆風嗎？你能給我們一個號碼嗎？然後這個問題的第二部分是，我認為，Hassane，你在評論中提到——或者 Thad 可能在第三季度的時間框架內做到了這一點，你的碳化矽業務將達到公司利潤率。那麼我們在想 40 多歲，40 多歲嗎？或者我們是否認為 50 年代最終是碳化矽業務的穩定毛利率？

Yes. So Harsh, what we've said is at scale at -- once we fully ramp silicon carbide, those margins would be at or above the corporate average. As I said, we've got headwinds that we think peak in Q3. We think by the time we get to '24, that headwind is behind us. In terms of the magnitude of the headwind, we've said historically that the silicon carbide is 100 to 200 basis points of a headwind we're performing better than we expected. So you can think about that as it's not at the high end of that range, somewhere in between there. But we're very, very confident in our outlook here based on our performance that we can continue to execute there and we feel very good. On EFK, as I said, we had the full impact in Q1. We -- you can see we absorbed it and offset it with gross margin expansion in other areas. Historically, we've said that's 40 to 70 basis points. I've said it's significantly higher. You can think about it as being greater than 2x what our expectations were. Again, we think we can absorb that throughout the year. Our margin trajectory doesn't change, and we're very comfortable with street consensus on gross margin for the year. So I think it gives you our confidence in managing through this.

是的。所以苛刻，我們所說的是規模——一旦我們完全提高碳化矽，這些利潤率將達到或高於公司平均水平。正如我所說，我們遇到了我們認為在第三季度達到頂峰的逆風。我們認為，到 24 歲時，逆風已經過去了。就逆風的大小而言，我們從歷史上講，碳化矽是逆風的 100 到 200 個基點，我們的表現比我們預期的要好。所以你可以考慮一下，因為它不在該範圍的高端，介於兩者之間。但是，根據我們可以繼續在那裡執行的表現，我們對我們在這裡的前景非常非常有信心，我們感覺非常好。正如我所說，在 EFK 上，我們在第一季度產生了全面影響。我們 - 你可以看到我們吸收了它並通過其他領域的毛利率擴張來抵消它。從歷史上看，我們說過這是 40 到 70 個基點。我說過它明顯更高。您可以認為它比我們的預期高出 2 倍。同樣，我們認為我們可以全年吸收它。我們的利潤率軌跡沒有改變，我們對今年毛利率的街頭共識非常滿意。所以我認為這讓你有信心解決這個問題。

Our next question comes from Raji Gill with Needham.

我們的下一個問題來自 Raji Gill 和 Needham。

Congratulations as well on great results in a tough environment. Just a quick question on the automotive market. You mentioned Hassane, a modest inventory digestion in the end market and then you're also kind of reducing distribution inventory. Can you talk a little bit about the overall demand picture for automotive? I know it's hard to kind of separate the significant ramp that you're seeing in electric vehicles and in turn, silicon carbide. But just curious if there's a softness in the demand market, if there's a shift away from high end to mid range? Any kind of color on the automotive market will be appreciated.

也恭喜你在艱苦的環境中取得了優異的成績。只是一個關於汽車市場的快速問題。你提到了 Hassane，在終端市場適度消化庫存，然後你也在減少分銷庫存。您能談談汽車的整體需求情況嗎？我知道很難將您在電動汽車和碳化矽中看到的顯著斜坡區分開來。但只是好奇需求市場是否疲軟，是否從高端轉向中端？汽車市場上的任何一種顏色都會受到讚賞。

Yes. Look, we don't see a big disconnect into demand. It was -- like I said, it was a momentary thing where we used this opportunity to kind of reposition the inventory that we have externally and we get back to growth in the second quarter and through the year, giving us an increase in our automotive revenue year-over-year. So that really doesn't change the outlook. But what we take a look at, if you think about it, it's a stable environment. We're going to be growing in automotive. I really don't see any areas that causes us pause or a change in our outlook. So we remain confident with that.

是的。看，我們沒有看到需求有很大的脫節。這是 - 就像我說的那樣，這是一瞬間的事情，我們利用這個機會重新定位我們擁有的外部庫存，我們在第二季度和全年恢復增長，從而增加了我們的汽車收入同比。所以這真的不會改變前景。但是，如果您考慮一下，我們所看到的是一個穩定的環境。我們將在汽車領域發展。我真的沒有看到任何導致我們停頓或改變我們前景的領域。所以我們對此充滿信心。

All right. Very good. And for my follow-up, on the LTSAs, Thad, you talked about $17.6 billion. That was up $1 billion quarter-over-quarter. Was that all primarily related to silicon carbide incremental designs or other drivers? And just along those lines, you saw kind of significant growth in energy infrastructure. You're talking about it up 50% year-over-year. Can you describe what's -- what are some of the tailwinds in that market?

好的。非常好。對於我的後續行動，關於 LTSA，薩德，你談到了 176 億美元。這比上一季度增加了 10 億美元。這是否主要與碳化矽增量設計或其他驅動因素有關？就在這些方面，你看到了能源基礎設施的顯著增長。你說的是同比增長 50%。你能描述一下那個市場的順風是什麼嗎？

Yes. So the LTSAs, we continue to stack those up another $1 billion this quarter to $17.6 billion. It's broad. It's across the board. There's silicon carbide. There's non silicon carbides. But when we think about how we're engaging with our customers that want assurance of supply, they're looking at the entire portfolio. and locking that up with us for multiple years. And again, keep in mind, these LTSAs, on average, are 4 to 5 years. So as Hassane said, pricing is stable and those really gives us better predictability of our business, and we're happy that we continue to engage with customers on that way. We see customers expanding their LTSAs, either by adding additional part numbers or extending the duration. And then we've got new customers that have been on the outside looking in, that are coming in saying, we need to get an LTSA with you. And so we think that trend will continue.

是的。因此，LTSA，我們在本季度繼續增加 10 億美元，達到 176 億美元。它很廣泛。這是全面的。有碳化矽。有非碳化矽。但是，當我們考慮如何與需要保證供應的客戶打交道時，他們會查看整個產品組合。並將其與我們鎖定多年。再次請記住，這些 LTSA 平均為 4 到 5 年。因此，正如 Hassane 所說，定價穩定，這確實讓我們對業務有了更好的可預測性，我們很高興我們繼續以這種方式與客戶互動。我們看到客戶通過添加額外的部件號或延長持續時間來擴展他們的 LTSA。然後我們有新客戶一直在外面尋找，他們進來說，我們需要與您一起獲得 LTSA。因此，我們認為這種趨勢將繼續下去。

And then on the automotive energy, the tailwind is to be market driven. We had a stellar year in '22 from '21 and that's compounding now the -- what we're going to see in '23 from '22, and that's all of it is market-driven. And that's primarily the big components here are silicon power and silicon carbide. But again, as Thad mentioned, we have a penetration with the whole BOM, bill of material. And if you recall, most of that market for us is under LTSAs. We have LTSAs with 8 of the top 10 energy vendors in the world. And they're ramping given the demand and we're ramping with them given our content.

然後在汽車能源方面，順風將由市場驅動。從 21 年到 22 年，我們度過了輝煌的一年，現在情況更加複雜了——我們將在 22 年到 23 年看到，而這一切都是市場驅動的。這主要是這裡的主要成分是矽粉和碳化矽。但同樣，正如 Thad 所提到的，我們對整個 BOM、物料清單都有一個滲透。如果您還記得的話，我們的大部分市場都在 LTSA 之下。我們與世界前 10 大能源供應商中的 8 家簽訂了 LTSA。鑑於需求，他們正在增加，而我們根據我們的內容與他們一起增加。

Our next question comes from Matt Ramsay with TD Cowen.

我們的下一個問題來自 Matt Ramsay 和 TD Cowen。

Hassane, I wanted to -- there's so much focus that typically goes into the silicon carbide space on substrate, but you guys mentioned a few times ramping CapEx and other things around brownfield fabs in order to support the business as you ramp the substrates out of GTAT. Maybe you could give us a little bit of color on how the nonsubstrate part of your supply chain is going for silicon carbide and just what position that might give you guys on a cost basis relative to some others that are doing greenfield facilities?

Hassane，我想——有太多的焦點通常會進入襯底上的碳化矽空間，但你們提到了幾次提高資本支出和棕地工廠周圍的其他事情，以便在你們將襯底從GTAT。也許你可以給我們一些關於你的供應鏈的非基板部分如何使用碳化矽的顏色，以及相對於其他一些正在做綠地設施的人來說，在成本基礎上可能給你們帶來什麼位置？

Yes. So look, as I mentioned, we're -- we've been increasing capacity. We started in 2022 in preparation for the '23 ramp and really the '24 ramp in this case, where a lot of the focus, like you said, has been on substrate because that's the first thing we have to ramp. But we've increased capacity in our wafering and internal epi. That gives us a very big cost advantage versus getting turnkey externally. And then following that is increase in our fab capacity, which also gives us a much better cost structure because the fab we are ramping is an existing power fab. That's where we do really most of our IGBTs and having a power fab at scale gives us that edge one from a cost and two from the speed at which we can scale. So think about it this way, increasing capacity in an existing fab that already does power is way cheaper and way less risk than brownfield and a power fab and silicon carbide. That has always given us the confidence in our ramp, has always given us the confidence in the slope of the ramp, which really exceeds everyone else out there, and we're on track to achieving it. All of these give us one, the cost; two, the risk mitigation; and three, the confidence in our outlook.

是的。所以看，正如我提到的，我們一直在增加容量。我們從 2022 年開始準備 '23 斜坡，在這種情況下實際上是 '24 斜坡，就像你說的那樣，很多重點都放在基板上，因為這是我們必須首先進行的斜坡。但是我們已經增加了晶圓加工和內部外延的產能。與從外部獲得交鑰匙服務相比，這為我們提供了非常大的成本優勢。然後是我們晶圓廠產能的增加，這也為我們提供了更好的成本結構，因為我們正在擴建的晶圓廠是一個現有的電力晶圓廠。那是我們真正做大部分 IGBT 的地方，擁有一個規模化的功率工廠讓我們在成本上有優勢，在我們可以擴展的速度上有兩個優勢。因此，以這種方式考慮，增加已經供電的現有晶圓廠的產能比棕地、電力晶圓廠和碳化矽更便宜，風險也更小。這一直讓我們對我們的坡道充滿信心，一直讓我們對坡道的坡度充滿信心，這確實超過了其他所有人，我們正在朝著實現這一目標的方向前進。所有這些都給了我們一個，成本；二、風險緩釋；第三，對我們前景的信心。

Hassane. I just want to follow-up, I wanted to ask, I think both of you guys mentioned in your script this morning, some little pockets where you're -- I think the words were cautiously monitoring inventory. Maybe you could -- obviously, the growth of the company and the results speak for themselves, and you're overcoming some of those things. But if you could just give us a little bit of color on where you are seeing those pockets of inventory? Are they clearing up? Are they getting worse? Just any color there would be helpful.

哈桑。我只是想跟進，我想問一下，我想你們兩個今天早上在你們的劇本中都提到了你們所在的一些小口袋——我認為這些話是在謹慎地監控庫存。也許你可以——很明顯，公司的成長和結果不言而喻，你正在克服其中的一些問題。但是，如果你能給我們一些關於你在哪裡看到這些庫存的顏色？他們在清理嗎？他們變得更糟了嗎？任何顏色都會有幫助。

Yes. Look, there -- when I say pockets, again, I'll go back to my comment from prior about the technology we remain constrained in technologies across all markets. And there are areas, primarily, as you can think about it, mostly on the consumer and compute where we've been -- one is cautiously monitoring specifically the disti inventory, and that's why you've seen us even this quarter be very aggressive in draining the dollars in the channel. So although the weeks were 0.3 weeks down in the channel, but dollars are almost $80 million down. And that's a pretty steep decrease that we have been managing. And look, we've been managing it throughout the whole -- even when supply was constrained across the board. So inventory for us is a big focal point, not just internally but externally. And until we get higher and higher confidence in what the second half is going to bring, we're going to be cautiously optimistic and really holding back on what we ship out of the company unless we are seeing high confidence in its POS-ing. We're not going to have inventory just sitting around, whether it's our distribution shelf or the customer shelf. And that really sets us up for a very nice recovery whenever that starts turning out to be.

是的。看，那裡 - 當我再次說口袋時，我會回到我之前關於我們在所有市場的技術中仍然受到限制的技術的評論。並且有一些領域，主要是，正如你所想的那樣，主要是我們一直在的消費者和計算領域——一個是謹慎地監控特別是 disti 庫存，這就是為什麼你看到我們甚至在本季度都非常積極在消耗渠道中的美元。因此，雖然週數在通道中下降了 0.3 週，但美元下降了近 8000 萬美元。這是我們一直在管理的一個非常陡峭的下降。看，我們一直在全面管理它——即使是在供應全面受限的情況下。因此，庫存對我們來說是一個很大的焦點，不僅是內部的，而且是外部的。在我們對下半年將帶來的東西越來越有信心之前，我們將持謹慎樂觀態度，並真正阻止我們從公司運出的東西，除非我們看到對其 POS-ing 的高度信心。我們不會讓庫存閒置，無論是我們的配送貨架還是客戶貨架。這真的讓我們在開始變得很好的時候恢復得很好。

Our next question comes from Christopher Rolland with Susquehanna.

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

I'm going to talk about the image sensors. You did talk about supply constraints across several auto tech. I just wanted to check the update of that. And then it seems like some of the drivers there are the move to 8-megapixel. I was wondering kind of what your competitive position is there? What percent of revenue might be at 8 versus 1 or 2 overall?

我要談談圖像傳感器。你確實談到了幾個汽車技術的供應限制。我只是想檢查它的更新。然後似乎有一些驅動程序轉向了 8 兆像素。我想知道你的競爭地位是什麼？ 8 比 1 或 2 的收入佔總收入的百分比是多少？

Yes. Look, obviously, our competitive advantage across the board and image sensor is really on technology. We've talked about specific technology. I mentioned a few of them where it's a near infrared that helps with different lighting conditions. That, of course, applies in automotive. And the examples I've given in my prepared remarks -- or sorry, industrial, but it also applies in automotive, where the high dynamic range, whether it's very bright light with sun or a very dark at night. Those are all competitive advantage on the inherent in our technology that customers value and that we provide these solutions for. On the 8-megapixel, that's a new generation that we have launched across both auto and industrial. You're going to -- you can expect that to be forward-looking and mix shift as we ramp that. So today, it's very small. But the commentary I gave about ASP with, of course, also translates to improved margins, that is on a forward-looking basis. Both Thad and I have always said our new products are at or ahead of our model, the 48% to 50%. And as we ramp these products, you're going to see the margin expansion that will be contributed to by these products becoming a higher percent of revenue. So that's more of a forward-looking statement that again gives us the confidence in our margin trajectory and the fact that we've always said it's not -- the model is not the destination. It's really a milestone.

是的。看，很明顯，我們的全面競爭優勢和圖像傳感器確實在技術上。我們已經討論了具體的技術。我提到了其中一些是近紅外線，有助於適應不同的照明條件。當然，這適用於汽車。我在準備好的評論中給出的例子——或者抱歉，工業，但它也適用於汽車，其中高動態範圍，無論是在陽光下非常明亮還是在夜晚非常黑暗。這些都是客戶重視的我們技術固有的競爭優勢，我們為其提供這些解決方案。在 8 兆像素上，這是我們在汽車和工業領域推出的新一代產品。你會 - 你可以期待它是前瞻性的，並且隨著我們的發展而混合轉變。所以今天，它非常小。但我對 ASP 的評論當然也轉化為提高的利潤率，這是在前瞻性的基礎上。 Thad 和我一直說我們的新產品達到或領先於我們的模型，即 48% 到 50%。隨著我們推出這些產品，您將看到這些產品將帶來的利潤率增長佔收入的比例更高。因此，這更像是一個前瞻性聲明，再次讓我們對我們的利潤率軌跡以及我們一直說它不是的事實充滿信心——模型不是目的地。這真的是一個里程碑。

Excellent. And just maybe following up there and then a quick one. So you mentioned the supply constraints across several auto tech -- technologies. I think you mentioned some, but just wanted kind of that more comprehensive list. And then lastly, M&A. You have a ton on your plate organically, but are you still considering inorganic? And how do you see that market?

出色的。也許只是跟進那裡，然後是一個快速的。所以你提到了幾種汽車技術的供應限制。我想你提到了一些，但只是想要更全面的列表。最後，併購。你的盤子裡有很多有機食品，但你還在考慮無機食品嗎？你如何看待這個市場？

Yes. Look, so across the board, obviously, I think I'll comment on image sensors. Image sensors is foundry business for us. We're seeing some easing in the foundry. So we get a little bit more capacity allocated to us. And I mentioned in my prepared remarks, we used this opportunity to really bridge that supply to demand gap that we've had in the last couple of years, and we're making progress into catching up. We're not caught up yet, but we're making progress. So that remains constrained, obviously.

是的。看，很明顯，我想我會全面評論圖像傳感器。圖像傳感器是我們的代工業務。我們看到鑄造廠有所放鬆。所以我們得到了更多的容量分配給我們。我在準備好的發言中提到，我們利用這個機會真正彌合了過去幾年的供需缺口，我們正在追趕。我們還沒有趕上，但我們正在取得進展。顯然，這仍然受到限制。

On high power silicon, Think about it as IGBT or silicon carbide, really, we've always said we're sold out on silicon carbide. So improvements that we have contribute to our -- achieving our numbers. IGBT, as I mentioned, remained constrained because of the strength in not just the automotive market, but also in the industrial a lot of our energy storage systems are silicon and silicon carbide, but a lot of it is -- remains still today on silicon. So that adds some of that constraint. So you can see it's really across the board, not specifically on markets, but it's driven by megatrend growth that we are participating in.

在高功率矽上，把它想像成 IGBT 或碳化矽，真的，我們一直說我們在碳化矽上已經賣光了。因此，我們為實現我們的數字做出了貢獻。正如我所提到的，IGBT 仍然受到限制，因為不僅在汽車市場，而且在工業領域，我們的許多儲能係統都是矽和碳化矽，但其中很多 - 今天仍然是矽.所以這增加了一些限制。所以你可以看到它確實是全面的，而不是具體在市場上，但它是由我們參與的大趨勢增長驅動的。

As far as M&A, look, you're right, our focus is on execution. We have a lot going on. A lot of it is a great work that creates a ton of value for our shareholders. So execution is key, and execution is our focal point. But we never look away from M&A. We're always looking because those are opportunities that we will participate in. But as we sit here today, I can't tell you there is something we are missing in order to achieve our organic plans of value creation. So we'll be opportunistic. We'll always drive and participate in the M&A landscape. But there's nothing I would say we have to have, which is the best place to be because we can be very disciplined in our approach of M&A.

至於併購，看，你是對的，我們的重點是執行。我們有很多事情要做。其中很多都是一項偉大的工作，為我們的股東創造了大量價值。所以執行是關鍵，執行是我們的重點。但我們從不關注併購。我們一直在尋找，因為這些是我們將參與的機會。但是當我們今天坐在這裡時，我不能告訴你為了實現我們的有機價值創造計劃，我們還缺少一些東西。所以我們會投機取巧。我們將始終推動並參與併購領域。但我不會說我們必須擁有什麼，這是最好的地方，因為我們可以在併購方法中非常自律。

Our next question comes from Gary Mobley with Wells Fargo.

我們的下一個問題來自富國銀行的 Gary Mobley。

I know Harsh asked about the China EV market, but I wanted to ask more broadly about China indigenous demand. Where do you see that demand profile sit today? And maybe give us a sense of China indigenous demand as a percentage of your sale currently versus where it's been in the past in terms of thinking about the optionality upside there?

我知道 Harsh 詢問了中國電動汽車市場，但我想更廣泛地詢問中國本土需求。您認為今天的需求概況在哪裡？也許讓我們了解中國本土需求在您當前銷售額中所佔的百分比與過去在考慮那裡的可選性優勢方面的百分比？

Yes. Look, in our -- just for our China, specifically in our nonstrategic markets Obviously, that's been down both the market is down, but also that's not a strategic market for us. So we've been exiting. And a lot of the exit is driven by the market in China for us. So that contributes -- it's part of our plan. So that's not a surprise for us. It's actually what we anticipated, and that's how we've been focusing on these exits as far as protecting our margin and that's been our strategic plan all along. And we're starting to see it play out, which is not a surprise for us. On the EV, although there's some pause in EV or a little bit of redirection on the EV market in China for us, that market is actually net incremental. We are the ramping party in EV in China, and therefore, that will remain through the rest of the year even with the current outlook as a net favorable to our revenue growth. So we're -- I would say, no surprises, no changes to our outlook and no changes to our execution as we move forward this year.

是的。看，在我們 - 僅針對我們的中國，特別是在我們的非戰略市場顯然，市場已經下跌，但這對我們來說也不是戰略市場。所以我們一直在退出。對我們來說，很多退出是由中國市場推動的。所以這有助於 - 這是我們計劃的一部分。所以這對我們來說並不奇怪。這實際上是我們的預期，這就是我們一直關注這些退出以保護我們的利潤率的方式，這一直是我們的戰略計劃。我們開始看到它發揮作用，這對我們來說並不奇怪。在電動汽車方面，儘管對我們來說，電動汽車在中國的電動汽車市場上有一些停頓或一些重定向，但該市場實際上是淨增量。我們是中國電動汽車的發展方，因此，即使目前的前景對我們的收入增長有利，我們今年剩餘時間仍將保持這種狀態。所以我們 - 我會說，毫無意外，我們的前景沒有改變，我們的執行也沒有改變，因為我們今年向前邁進。

Got it. As my follow-up, I want to ask about the supply of silicon carbide materials to support your $1 billion of revenue. I appreciate the fact that you'll be majority internally sourced for substrates exiting the year, but I presume that you'll probably purchase somewhere close to $200 million in merchant supply this year. Maybe if you can give us an update in terms of some of the constraints that you might be seeing there from your more traditional suppliers and how you may be broadening your supplier list there?

知道了。作為我的後續，我想問一下碳化矽材料的供應情況，以支持你們 10 億美元的收入。我很欣賞這樣一個事實，即你們將在今年退出大部分基板的內部採購，但我認為你們今年可能會購買接近 2 億美元的商業供應。也許您可以向我們提供您可能從更傳統的供應商那裡看到的一些限制的最新情況，以及您如何在那裡擴大您的供應商名單？

Yes. Look, I'm not worried about the merchant supply. Obviously, our percent of internal is going to be incrementally going up throughout the year. We're going to be majority internal. But as far as derisking, we've done a very good job on having multiple sources that we are able to pull on. All sources, not internal, are qualified. And we're getting what we need. So therefore, think about it as a very good and already in the playbook risk mitigation strategy while we continue to execute greatly on our internal substrate.

是的。看，我不擔心商家供應。顯然，我們的內部百分比將在全年逐步上升。我們將在內部佔多數。但就降低風險而言，我們在擁有我們能夠利用的多個來源方面做得非常好。所有來源（非內部來源）都是合格的。我們正在得到我們需要的東西。因此，在我們繼續在內部基礎上大力執行的同時，將其視為一個非常好的並且已經在劇本中的風險緩解策略。

Yes. And I would just add that although it's a tight market out there, obviously, I think that's well known. We -- as I've said, we've been building inventory in silicon carbide for this ramp. So we've been preparing for it. And then obviously, as we get more flex into internally supplied substrates, that helps us.

是的。我只想補充一點，雖然這是一個緊張的市場，但顯然，我認為這是眾所周知的。我們 - 正如我所說，我們一直在為這個斜坡建立碳化矽庫存。所以我們一直在為此做準備。然後很明顯，隨著我們在內部供應的基板上獲得更多的靈活性，這對我們有幫助。

Our next question comes from William Stein with Truist Securities.

我們的下一個問題來自 Truist Securities 的 William Stein。

Hassane, at the silicon carbide event you hosted, I think it was perhaps about a year ago. You talked about the trend in supply and demand in silicon carbide likely remaining in the shortage situation for many years. Then we have this surprise -- certainly surprised to many people announcement from Tesla that on their next-gen vehicle, the so-called robotaxi, they're going to be reducing silicon carbide usage meaningfully. I know it's only 1 customer. I know they're still small share of global auto production, but it's an important customer. It's an important data point. I wonder how that influences your view of supply and demand for silicon carbide longer term, not just the next year, but as we think about 5 years plus?

Hassane，在你主持的碳化矽活動中，我想大概是一年前的事了。您談到了碳化矽的供需趨勢，很可能多年處於供不應求的狀態。然後我們有這個驚喜 - 肯定讓很多人感到驚訝，特斯拉宣布他們的下一代車輛，即所謂的機器人出租車，他們將有意義地減少碳化矽的使用。我知道只有 1 個客戶。我知道他們在全球汽車生產中的份額仍然很小，但它是一個重要的客戶。這是一個重要的數據點。我想知道這如何影響您對碳化矽長期供需的看法，不僅僅是明年，而是我們考慮的 5 年以上？

Yes. Look, actually, the announcement doesn't change my outlook. It actually, I would say, confirms it because if you think about it, this is a new platform and a much broader platform as far as volume. And therefore, it's incrementally beneficial as far as demand is in the market. That's just on silicon carbide. The other thing is when you start thinking, and I don't want to talk about customers specifically. But as more and more, you can start thinking about silicon and silicon carbide, so IGBT plus SiC. This is a business that I've been talking about for really a couple of years. And you've heard me talk about how it's always a customer choice and our ability to supply both is incrementally beneficial for us. Therefore, when you start seeing silicon carbide, even with lower penetration of silicon carbide on a platform is still a net incremental silicon carbide in mass market vehicles. And that actually supports the concept that I've talked about that we are going to be constrained over the next few years.

是的。看，實際上，公告並沒有改變我的看法。我想說的是，它實際上證實了這一點，因為如果你仔細想想，這是一個新平台，就數量而言，這是一個更廣泛的平台。因此，就市場需求而言，它會逐漸受益。那隻是在碳化矽上。另一件事是當你開始思考的時候，我不想具體談論客戶。但是隨著越來越多，你可以開始考慮矽和碳化矽，所以IGBT加SiC。這是一個我已經談論了好幾年的行業。你已經聽我說過，這始終是客戶的選擇，而我們同時提供這兩種產品的能力對我們來說是越來越有利的。因此，當您開始看到碳化矽時，即使碳化矽在平台上的滲透率較低，在大眾市場車輛中仍然是碳化矽的淨增量。這實際上支持了我所說的我們將在未來幾年受到限制的概念。

That's super helpful. One other, if I can? Perhaps, Thad, you talked about the product revenue and margin of the exits you did during the quarter. Can you remind us how much is left of that? What sort of duration you expect for the exits to last? And should we continue to expect sort of this mid-40s gross margin level on the exits going forward?

這非常有幫助。另一個，如果我可以？也許，泰德，你談到了本季度你所做的退出的產品收入和利潤率。你能提醒我們還剩多少嗎？您希望退出持續多長時間？我們是否應該繼續期待這種 40 年代中期的退出毛利率水平？

Yes. So we think for the year, there's a total of about $400 million of exits. This first quarter, we are at $47 million below our original expectations. We thought it was going to be higher than that this quarter. But we actually think we will still exit this throughout the year. I think this next quarter in Q2, we're probably looking at about $85 million of exits and then the remainder of that to be in the second half. So you'll see these exits ramp additionally in the second half. And the gross margin is -- yes, it's kind of in that mid-40% range of what we're going to lose currently. And this is the stuff that's price sensitive that -- the reason we're going to lose it is because we're not going to go down that pricing curve, right? So this is -- these exits over time, we think these gross margins go back into the in the low range that we're not willing to participate in. So yes, so for the year, about $400 million, and you can think about it as kind of the mid-40% gross margin range.

是的。所以我們認為今年總共有大約 4 億美元的退出。今年第一季度，我們比最初預期低了 4700 萬美元。我們認為本季度會高於該水平。但我們實際上認為我們仍將全年退出。我認為在第二季度的下一個季度，我們可能會看到大約 8500 萬美元的退出，然後剩下的將在下半年。所以你會在下半年看到這些出口的增加。毛利率是——是的，它在我們目前將要損失的 40% 左右的範圍內。這是對價格敏感的東西——我們要失去它的原因是因為我們不會降低價格曲線，對吧？所以這是 - 隨著時間的推移，這些退出，我們認為這些毛利率回到我們不願意參與的低範圍內。所以是的，所以今年，大約 4 億美元，你可以考慮它的毛利率在 40% 左右。

Ladies and gentlemen, this does conclude the Q&A portion of today's conference. I'd like to turn the call back over to Hassane El-Khoury, President and CEO, for any closing remarks.

女士們，先生們，今天會議的問答部分到此結束。我想將電話轉回給總裁兼首席執行官 Hassane El-Khoury，聽取任何結束語。

Thank you again for joining our call. As Thad mentioned, we look forward to seeing many of you at our Analyst Day. Our future is bright, and we look forward to sharing with all of you what's next for onsemi. Thank you.

再次感謝您加入我們的電話會議。正如 Thad 提到的，我們期待在我們的分析師日見到你們中的許多人。我們的未來是光明的，我們期待與大家分享 onsemi 的下一步。謝謝。

Ladies and gentlemen, this does conclude today's presentation. You may now disconnect and have a wonderful day.

女士們，先生們，今天的演講到此結束。您現在可以斷開連接並度過美好的一天。