安森美 (ON) 2023 Q3 法說會逐字稿

Good day and thank you for standing by. Welcome to the onsemi Third Quarter 2023 Earnings Conference Call. (Operator Instructions) Please be advised, today's conference is being recorded. I would now like to hand the conference over to your speaker today, Parag Agarwal, Vice President of Investor Relations and Corporate Development. Please go ahead.

美好的一天，感謝您的支持。歡迎參加 onsemi 2023 年第三季財報電話會議。 （操作員指示）請注意，今天的會議正在錄製中。現在，我想將會議交給今天的演講者、投資者關係和企業發展副總裁帕拉格·阿加瓦爾 (Parag Agarwal)。請繼續。

Thank you, Kevin. Good morning and thank you for joining onsemi's Third 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。早安，感謝您參加 onsemi 2023 年第三季業績電話會議。今天我們的總裁兼執行長 Hassane El-Khoury 也加入了我的行列。還有我們的財務長薩德‧特倫特 (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 third quarter earnings release, will be available on our website approximately 1 hour following this conference call, and the recorded webcast will be available for approximately 30 days following this conference call. Additional information is posted on the Investor Relations section of our website.

本次電話會議正在我們網站 www.onsemi.com 的投資者關係部分進行網路直播。在本次電話會議後約1 小時，我們將在我們的網站上提供本次網路廣播的重播以及我們的2023 年第三季度收益發布，並且錄製的網路廣播將在本次電話會議後大約30 天內提供。更多資訊發佈在我們網站的投資者關係部分。

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

我們的收益發布和本簡報包括某些非公認會計準則財務指標。這些非GAAP 財務指標與最直接可比較的GAAP 財務指標的調節以及對使用非GAAP 財務指標時的某些限制的討論都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。在本次電話會議期間，我們將對公司未來事件或未來財務表現做出預測或其他前瞻性陳述。

We wish to caution that such statements are subject to risk 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 materially from our forward-looking statements, are described in our most recent Form 10-K, Form 10-Qs, our other filings with the Securities and Exchange Commission and in our earnings release for the third quarter of 2023. Our estimates or other forward-looking statements might change and the company assumes no obligation to update forward-looking statements to reflect actual results, changed assumptions or other events that may occur except as required by law.

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有重大差異。我們最新的表格 10-K、表格 10-Q 以及我們向美國證券交易委員會提交的其他文件中描述了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存在重大差異的因素以及我們2023 年第三季的收益發布中。我們的估計或其他前瞻性陳述可能會發生變化，公司沒有義務更新前瞻性陳述以反映實際結果、假設變更或可能發生的其他事件，除非有要求根據法律。

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 thanks to everyone on the call for joining us. This morning, we are pleased to announce another quarter where we delivered revenue of $2.18 billion, non-GAAP gross margin of 47.3% and non-GAAP earnings per share of $1.39, all exceeding the midpoint of our guidance. Our Automotive and Industrial segments achieved record revenue, driven by demand in both silicon and silicon carbide.

謝謝你，帕拉格。早上好，感謝所有參加電話會議的人加入我們。今天早上，我們很高興地宣布另一個季度的收入為 21.8 億美元，非 GAAP 毛利率為 47.3%，非 GAAP 每股收益為 1.39 美元，全部超過我們指導的中位數。在矽和碳化矽需求的推動下，我們的汽車和工業部門實現了創紀錄的收入。

Despite these results in the third quarter, we are taking a very cautious approach as we are starting to see pockets of softness with Tier 1 customers in Europe working through their inventory and increasing risk to automotive demand due to high interest rates. It has been nearly 3 years since the start of our transformation and our worldwide employees have been relentless in their pursuit of operational excellence. The structural changes we have made across the company have allowed us to maintain our performance and deliver predictable financials. We have built the resilience required in our business to navigate a dynamic macro environment and we remain focused on controlling what we can, our execution and our commitment to our customers.

儘管第三季取得了這些成果，但我們仍採取非常謹慎的態度，因為我們開始看到歐洲一級客戶在處理庫存方面出現疲軟，並且由於高利率而增加了汽車需求的風險。自從我們開始轉型以來已經近三年了，我們的全球員工一直不懈地追求卓越營運。我們在整個公司進行的結構性變革使我們能夠保持業績並提供可預測的財務狀況。我們已經建立了業務所需的彈性，以適應動態的宏觀環境，並且我們仍然專注於控制我們所能控制的、我們的執行力和我們對客戶的承諾。

And silicon carbide has been a prime example of our execution. Our factories in Hudson, Rožnov and Bucheon, all had record output for silicon carbide in Q3. Acquiring GTAT 2 years ago was a strategic investment that allowed us to produce our own substrates internally and accelerate our path to becoming the world leader in silicon carbide power devices. By the end of 2023, we expect to have more than 25% market share of the silicon carbide market. We are now producing more than 50% of our own substrates internally, 1 quarter ahead of schedule and we plan to continue to do so through 2024 even as we transition furnaces for 200 millimeter production.

碳化矽是我們執行力的典型例子。我們位於哈德遜、羅阿諾夫和富川的工廠在第三季的碳化矽產量均創歷史新高。兩年前收購 GTAT 是一項策略性投資，使我們能夠在內部生產自己的基板，並加快我們成為碳化矽功率裝置全球領導者的步伐。到2023年底，我們預計將擁有碳化矽市場25%以上的市佔率。目前，我們 50% 以上的基板都是在內部生產的，比原計劃提前了 1 個季度，並且我們計劃在 2024 年之前繼續這樣做，即使我們將爐子過渡到 200 毫米的生產。

In fact, last week, we announced that we completed our expansion of the world's largest silicon carbide fab in Bucheon. At full capacity, this state-of-the-art facility will be able to manufacture more than 1 million 200-millimeter silicon carbide wafers per year. Our manufacturing output continues to exceed expectations and the acceleration of our ramp resulted in achieving a $1 billion run rate quarter in Q3, increasing nearly 50% over Q2.

事實上，上週我們宣布完成了位於富川市的全球最大碳化矽工廠的擴建。如果滿載運轉，這個最先進的工廠每年將能夠生產超過 100 萬片 200 毫米碳化矽晶圓。我們的製造產出持續超出預期，加速產能擴張，第三季的運行率達到 10 億美元，比第二季成長近 50%。

However, for the full year, a single automotive OEM's recent reduction in demand will impact our $1 billion target and we now expect to ship more than $800 million of silicon carbide in 2023, 4x last year's revenue. In '24, we expect the growth of our silicon carbide business to double the market growth.

然而，就全年而言，單一汽車 OEM 最近的需求減少將影響我們 10 億美元的目標，我們現在預計 2023 年碳化矽出貨量將超過 8 億美元，是去年收入的 4 倍。 24 年，我們預期碳化矽業務的成長將是市場成長的兩倍。

Over the past few quarters, we have accelerated the broad deployment of silicon carbide solutions and the design activity has been robust across all regions. So far in 2023, we have shipped to more than 500 unique customers that will continue to ramp through 2024, further expanding our geographical customer distribution. Additionally, we have design wins and/or LTSAs with the leading automotive players who have over 50% share of the global EV unit sales, which includes LTSAs with 4 of the top 5 China EV customers. NIO is among them. And in Q3, they made onsemi their prevailing silicon carbide supplier by signing an extension to their multiyear long-term supply agreement, doubling down on 1,200-volt EliteSiC technology as they transition into 800-volt battery solutions through 2030.

在過去的幾個季度中，我們加速了碳化矽解決方案的廣泛部署，並且所有地區的設計活動都很強勁。 2023 年到目前為止，我們已向 500 多個獨特客戶發貨，這些客戶將在 2024 年繼續增加，進一步擴大我們的客戶地理分佈。此外，我們還與佔全球電動車銷量 50% 以上份額的領先汽車廠商簽訂了設計合約和/或長期協議，其中包括與中國前 5 名電動車客戶中的 4 家簽訂的長期協議。蔚來汽車就是其中之一。在第三季度，他們簽署了多年長期供應協議的延期協議，使 Onsemi 成為主要的碳化矽供應商，在 2030 年過渡到 800 伏特電池解決方案時，加倍投入 1,200 伏特 EliteSiC 技術。

As we navigate the current market conditions, LTSAs continue to provide demand visibility and stability in pricing. EV traction remains the fastest-growing part of our SiC business, with 70% growth sequentially. Most recently, an OEM awarded onsemi a platform for their 750-volt and 1,200-volt EV traction inverters previously awarded to an incumbent. Opting for superior technology and a vertically integrated supply chain, this leading OEM has now signed an LTSA with onsemi through 2031, putting us in a position to support higher volume production.

當我們應對當前的市場狀況時，LTSA 繼續提供需求可見性和定價穩定性。電動車牽引仍然是我們 SiC 業務中成長最快的部分，環比成長 70%。最近，一家 OEM 向 Onsemi 授予了一個用於其 750 伏特和 1,200 伏特電動車牽引逆變器的平台，此前該平台授予了一家現有廠商。選擇卓越的技術和垂直整合的供應鏈，這家領先的 OEM 現已與 Onsemi 簽署了到 2031 年的 LTSA，使我們能夠支持更高的產量。

Energy infrastructure remained healthy in Q3, driven by the continued adoption of solar and energy storage solutions. We remain on track to our full year projections with nearly 70% revenue growth over 2022 and we expect the growth to continue in '24 as demand for our hybrid modules with silicon and silicon carbide solutions for this high-growth industrial megatrend remains strong.

在太陽能和儲能解決方案的持續採用的推動下，第三季能源基礎設施保持健康。我們仍將實現全年預測，到2022 年收入將增長近70%，並且我們預計這種增長將在2024 年繼續下去，因為這一高增長工業大趨勢對我們採用矽和碳化矽解決方案的混合模組的需求仍然強勁。

Our medical revenue, which is reported within our industrial end market, also remains healthy, driven by the improved accessibility of continuous glucose monitoring and hearing aids. We have deep, long-standing customer engagements in high-margin, high-growth areas of continuous glucose monitors and hearing health, where we have leading market share with our technologies. Our CGM business increased nearly 38% quarter-over-quarter, driven by a ramp from the top 2 leaders in the market.

在連續血糖監測和助聽器的可近性提高的推動下，我們在工業終端市場報告的醫療收入也保持健康。我們在高利潤、高成長的連續血糖監測儀和聽力健康領域與客戶有著長期深入的合作，我們的技術在這些領域擁有領先的市場份額。在市場前兩名領導者的推動下，我們的 CGM 業務較上季成長了近 38%。

onsemi is #1 in image -- in automotive image sensors and #1 in industrial scanning. In the industrial end market, our design activity has already surpassed all of 2022. This is a good indicator for the business, given that more than 40% of our image sensing revenue comes from new products. Last month, we introduced another 8-megapixel image sensor with the world's smallest, lowest power family of Hyperlux products that can extend battery life by up to 40% for industrial and commercial cameras. In fact, our 8-megapixel revenue more than doubled year-over-year in the third quarter as the business is shifting to higher resolution, higher ASP image sensors.

onsemi 在影像領域（汽車影像感測器）排名第一，在工業掃描領域排名第一。在工業終端市場，我們的設計活動已經超過了2022年全年。鑑於我們超過40%的影像感測收入來自新產品，這對業務來說是一個很好的指標。上個月，我們推出了另一款 800 萬像素影像感測器，它是世界上最小、功耗最低的 Hyperlux 產品系列，可將工業和商業相機的電池壽命延長高達 40%。事實上，隨著業務轉向更高解析度、更高 ASP 的影像感測器，我們的 800 萬像素收入在第三季度同比增長了一倍多。

And now let me turn the call over to Thad to give you more details on our results.

現在讓我將電話轉給泰德，向您提供有關我們結果的更多詳細資訊。

Thanks, Hassane. At the start of our transformation, we committed to delivering intelligent power and sensing technologies for the sustainable ecosystem. This meant tailoring our investments, our portfolio, our manufacturing footprint and our resources to focus on the high-growth megatrends in automotive and industrial, such as electric vehicles, ADAS and energy infrastructure. This has become our winning formula, allowing us to deliver the greatest value for all our stakeholders. Combined, intelligent power and intelligent sensing now account for 72% of our business, as compared to 68% in the quarter a year ago.

謝謝，哈桑。在轉型之初，我們致力於為永續生態系統提供智慧電源和感測技術。這意味著調整我們的投資、產品組合、製造足跡和資源，以專注於汽車和工業領域的高成長大趨勢，例如電動車、ADAS 和能源基礎設施。這已成為我們的致勝法寶，使我們能夠為所有利害關係人提供最大的價值。智慧電源和智慧感測合計占我們業務的 72%，而去年同期為 68%。

In the third quarter, our financial results exceeded the midpoint of our guidance, demonstrating the resilience in our business in a challenging market environment. Revenue of $2.18 billion increased 4% sequentially and non-GAAP operating margin was 32.6%. Revenue from intelligent power and intelligent sensing combined increased 5% year-over-year. As for the end markets they serve, we had another quarter of record automotive revenue with nearly $1.2 billion in Q3, increasing 9% sequentially and 33% year-over-year, driven by silicon as well as silicon carbide as the need for electrification and advanced features in vehicles continues to rise.

第三季度，我們的財務表現超出了我們指導的中點，證明了我們的業務在充滿挑戰的市場環境中的彈性。營收為 21.8 億美元，季增 4%，非 GAAP 營業利潤率為 32.6%。智慧電源和智慧感測營收合計較去年同期成長5%。至於他們所服務的終端市場，我們的汽車收入在第三季度再創歷史新高，接近12 億美元，環比增長9%，同比增長33%，這主要是受到矽和碳化矽以及電氣化和電動化需求的推動。車輛的先進功能不斷增加。

In Industrial, our record revenue of $616 million increased 1% sequentially and was up slightly year-over-year with continued strength in energy, infrastructure and medical. The rest of our businesses decreased 4% sequentially and 42% year-over-year as we exited $46 million of noncore business, which was below our expectations and is highlighting the resiliency of this business and the value of our full portfolio delivers for these customers. As always, we'll continue to be opportunistic in these noncore markets where margins are favorable and engagements are strategic with our customers.

在工業領域，隨著能源、基礎設施和醫療領域的持續強勁，我們的收入達到創紀錄的 6.16 億美元，環比增長 1%，同比略有增長。我們的其餘業務環比下降 4%，年減 42%，因為我們退出了 4,600 萬美元的非核心業務，這低於我們的預期，突顯了該業務的彈性以及我們整個產品組合為這些客戶提供的價值。一如既往，我們將繼續在這些非核心市場中抓住機會，這些市場的利潤豐厚，並且與客戶的合作具有戰略意義。

Looking at the split between operating units. Revenue for Power Solutions Group, or PSG, was $1.2 billion, an increase of 10% year-over-year, with more than 60% increase in auto and 50% increase in energy infrastructure. Revenue for the Advanced Solutions Group, or ASG, was $622 million, a 15% decline over Q3 '22, driven by deliberate exits and continued softness in noncore markets. Revenue for the Intelligent Sensing Group, or ISG, was $329 million, a 4% decrease year-over-year due to lower revenue in industrial applications. Our GAAP and non-GAAP gross margin of 47.3% was down 10 basis points sequentially and 200 basis points as compared to non-GAAP gross margin in Q3 '22, primarily due to headwinds from our East Fishkill fab and factory utilization, offset by strong manufacturing performance in silicon carbide.

看看營運單位之間的劃分。 Power Solutions Group（PSG）營收為12億美元，年增10%，其中汽車業務成長超過60%，能源基礎設施成長50%。受故意退出和非核心市場持續疲軟的推動，高級解決方案集團 (ASG) 的收入為 6.22 億美元，比 22 年第三季下降 15%。智慧感測集團（ISG）的收入為 3.29 億美元，年減 4%，原因是工業應用收入下降。我們的GAAP 和非GAAP 毛利率為47.3%，比22 年第三季的非GAAP 毛利率下降了10 個基點，與非GAAP 毛利率相比下降了200 個基點，這主要是由於我們東菲什基爾工廠和工廠利用率的不利因素，但被強勁的產能所抵消碳化矽的製造性能。

Total utilization increased slightly to 72% as silicon carbide utilization improved, while silicon utilization trended lower as planned. For the next few quarters, we expect to proactively lower utilization to the mid- to high-60% range while maintaining our gross margin above mid-40%. This is a direct result of our Fab Liter strategy of divesting 4 fabs in 2022, which is reducing our fixed cost footprint while we continue to consolidate operations in larger, more efficient fabs. As we move to our Fab Right strategy to optimize and drive efficiencies across our manufacturing network, we expect to generate incremental cost savings over the next few years. We continue to identify opportunities to drive operational efficiencies and remain committed to our long-term gross margin trajectory.

由於碳化矽利用率提高，總利用率小幅上升至 72%，而矽利用率則按計畫呈下降趨勢。在接下來的幾個季度，我們預計將積極將利用率降低至 60% 的中高範圍，同時將毛利率維持在 40% 中。這是我們在 2022 年剝離 4 座晶圓廠的 Fab Liter 策略的直接結果，該策略減少了我們的固定成本足跡，同時我們繼續在更大、更有效率的晶圓廠中整合營運。隨著我們轉向 Fab Right 策略以優化和提高整個製造網路的效率，我們預計在未來幾年內將逐步節省成本。我們繼續尋找提高營運效率的機會，並繼續致力於我們的長期毛利率軌跡。

Turning to silicon carbide. As Hassane mentioned, our silicon carbide manufacturing output is exceeding our internal expectations. And thanks to the tremendous efforts of our teams around the world, we have accelerated our gross and operating margin trajectory. Our Q3 gross margin for silicon carbide was greater than 40% with strong fall-through on a fully loaded basis, including all start-up costs. And as we previously highlighted, we expect our silicon carbide business to be at the corporate gross margin in Q4.

轉向碳化矽。正如 Hassane 所提到的，我們的碳化矽製造產量超出了我們的內部預期。由於我們世界各地團隊的巨大努力，我們加快了毛利率和營業利潤率的成長軌跡。我們的碳化矽第三季毛利率超過 40%，在滿載基礎上（包括所有啟動成本）大幅下滑。正如我們之前強調的那樣，我們預計我們的碳化矽業務第四季的毛利率將達到公司毛利率。

Further, the yield improvement learnings we're getting from our 150-millimeter wafer production ramp is increasing our confidence in our 200 millimeter capability and validating our strategy of driving cost savings through brownfield investments. This incredible execution and improved manufacturing output on 150 millimeters enables us to slow our capacity expansion and lower 2024 capital intensity from the high teens to the low teens percentage points ahead of our original plan and closing in on our long-term model.

此外，我們從 150 毫米晶圓產能提升中獲得的良率改進經驗增強了我們對 200 毫米產能的信心，並驗證了我們透過棕地投資推動成本節約的策略。這種令人難以置信的執行力和 150 毫米製造產量的提高使我們能夠放慢產能擴張速度，並將 2024 年資本密集度從原來的計劃提前到低個百分點，並接近我們的長期模型。

Now let me give you some additional numbers for your models. GAAP operating expenses for the third quarter were $344 million as compared to $634 million in the third quarter of 2022. Non-GAAP operating expenses were $322 million as compared to $304 million in the quarter a year ago. The increase in operating expenses is attributable to our reserve against the receivable balance with a manufacturing partner.

現在讓我為您的模型提供一些額外的數字。第三季 GAAP 營運支出為 3.44 億美元，而 2022 年第三季為 6.34 億美元。非 GAAP 營運支出為 3.22 億美元，去年同期為 3.04 億美元。營業費用的增加歸因於我們與製造合作夥伴的應收帳款餘額的準備金。

GAAP operating margin for the quarter was 31.5% and non-GAAP operating margin was 32.6%. Our GAAP tax rate was 16.4% and our non-GAAP tax rate was 15.6%. GAAP earnings per diluted share for the third quarter was $1.29 as compared to $0.70 in the quarter a year ago. Non-GAAP earnings per diluted share was near the high end of our guidance at $1.39 as compared to the $1.45 in Q3 of 2022. Our GAAP diluted share count was 451 million shares and our non-GAAP diluted share count was 439 million shares.

本季 GAAP 營運利潤率為 31.5%，非 GAAP 營運利潤率為 32.6%。我們的 GAAP 稅率為 16.4%，非 GAAP 稅率為 15.6%。第三季 GAAP 攤薄每股收益為 1.29 美元，去年同期為 0.70 美元。非 GAAP 每股攤薄收益接近我們指引的上限，為 1.39 美元，而 2022 年第三季為 1.45 美元。我們的 GAAP 攤薄股數為 4.51 億股，非 GAAP 攤薄股數為 4.39 億股。

In Q3, we returned 75% of our free cash flow through $100 million of share repurchases and we remain committed to our long-term strategy of returning 50% of free cash flow to our shareholders. Turning to the balance sheet, cash and cash equivalents was $2.7 billion and we had $1.1 billion undrawn on our revolver. Cash from operations was $567 million and free cash flow was $134 million, or 6.1% of revenue. Capital expenditures during Q3 were $433 million, which equates to a capital intensity of 19.9%. As we indicated previously, we are directing a significant portion of our capital expenditures towards silicon carbide and enabling our 300-millimeter capabilities at EFK.

第三季度，我們透過 1 億美元的股票回購返還了 75% 的自由現金流，我們仍然致力於將 50% 的自由現金流返還給股東的長期策略。看看資產負債表，現金和現金等價物為 27 億美元，我們的左輪手槍上還有 11 億美元未動用。營運現金為 5.67 億美元，自由現金流為 1.34 億美元，佔營收的 6.1%。第三季的資本支出為 4.33 億美元，相當於資本密集度為 19.9%。正如我們之前指出的，我們將很大一部分資本支出用於碳化矽，並在 EFK 實現 300 毫米產能。

Accounts receivable of $958 million increased by $14 million and DSO was 40 days, down 1 day from the second quarter. Inventory increased by $120 million sequentially and days of inventory increased by 3 days to 166 days. This includes approximately 64 days of bridge inventory to support fab transition and the silicon carbide ramp. Excluding these strategic builds, our base inventory declined 7 days quarter-over-quarter to 102 days.

應收帳款為 9.58 億美元，增加 1,400 萬美元，DSO 為 40 天，較第二季減少 1 天。庫存較上月增加 1.2 億美元，庫存天數增加 3 天至 166 天。這包括大約 64 天的橋樑庫存，以支援晶圓廠轉型和碳化矽產能提升。不包括這些戰略構建，我們的基礎庫存環比下降 7 天至 102 天。

We continue to proactively manage distribution inventory. Disti inventory declined $25 million sequentially with weeks of inventory at 6.9 weeks versus 7.7 weeks in Q2. Total debt remained flat at $3.5 billion and net leverage is 0.25x.

我們繼續主動管理分銷庫存。 Disti 庫存較上季下降 2,500 萬美元，庫存週數為 6.9 週，而第二季為 7.7 週。總債務維持在 35 億美元不變，淨槓桿率為 0.25 倍。

As we look forward, I'd like to highlight that onsemi today is a completely transformed company as compared to ON Semiconductor of the past. The structural changes in our business model have eliminated the historical volatility in the margins and earnings of the company. We remain fully committed to delivering strong operational and financial performance for our shareholders in all market conditions.

展望未來，我想強調的是，與過去的安森美半導體相比，現今的安森美半導體是一家徹底轉型的公司。我們業務模式的結構性變化消除了公司利潤率和收益的歷史波動。我們仍然完全致力於在所有市場條件下為我們的股東提供強勁的營運和財務表現。

Now let me provide you the key elements of our non-GAAP guidance for the fourth quarter. A table detailing our GAAP and non-GAAP guidance was provided in the press release related to our third quarter results. Given the current macro environment, we are taking a cautious stance in our guidance. We anticipate Q4 revenue to be in the range of $1.95 billion to $2.05 billion. We expect a mid-single-digit decline in automotive given the softness in Europe that Hassane described, with greater sequential declines in industrial and other end markets.

現在讓我向您提供我們第四季度非公認會計原則指導的關鍵要素。與我們第三季業績相關的新聞稿中提供了詳細說明我們的 GAAP 和非 GAAP 指引的表格。鑑於當前的宏觀環境，我們對指導採取謹慎立場。我們預計第四季營收將在 19.5 億美元至 20.5 億美元之間。鑑於哈桑所描述的歐洲經濟疲軟，我們預期汽車產業將出現中個位數下降，工業和其他終端市場的環比下降幅度更大。

We expect non-GAAP gross margin to be between 45.5% and 47.5%, primarily due to lower factory utilization and continued EFK headwind. Our Q4 non-GAAP gross margin includes share-based compensation of $4.3 million. We expect our non-GAAP operating expenses of $300 million to $315 million, including share-based compensation of $28.5 million. We anticipate our non-GAAP other income to be a net benefit of $4 million, with our interest income exceeding interest expense. This benefit is a result of the debt restructuring activities we completed over the last 2 years, reducing a historical drag on the P&L while effectively eliminating exposure to elevated rates going forward. 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 fourth quarter is expected to be approximately 438 million shares. This results in non-GAAP earnings per share to be in the range of $1.13 to $1.27.

我們預計非 GAAP 毛利率將在 45.5% 至 47.5% 之間，主要是由於工廠利用率較低和 EFK 持續不利。我們第四季的非 GAAP 毛利率包括 430 萬美元的股權激勵。我們預計非 GAAP 營運費用為 3 億至 3.15 億美元，其中包括 2,850 萬美元的股權激勵。我們預計我們的非 GAAP 其他收入將為 400 萬美元的淨收益，其中我們的利息收入超過利息支出。這項好處是我們過去兩年完成的債務重整活動的結果，減少了對損益表的歷史拖累，同時有效消除了未來利率上升的風險。我們預計我們的非 GAAP 稅率將在 15.5% 至 16.5% 之間，我們第四季的非 GAAP 稀釋後股數預計約為 4.38 億股。這導致非 GAAP 每股收益在 1.13 美元至 1.27 美元之間。

We expect capital expenditures of $425 million to $465 million in brownfield investments, primarily in silicon carbide and EFK. On a final note, given the market uncertainty, we are taking a cautious approach as we exit 2023 and plan for 2024. We are taking proactive actions to set ourselves up for success and we remain focused on our execution. The structural changes we have brought to our business have already proven effective in these market conditions. We have been exiting volatile businesses, lowering utilization, managing channel inventory, controlling wafer starts and we plan to continue to seek opportunities to improve our efficiencies as we navigate through the current market conditions.

我們預期棕地投資的資本支出為 4.25 億至 4.65 億美元，主要是碳化矽和 EFK。最後一點，鑑於市場的不確定性，我們在退出 2023 年併計劃 2024 年時採取謹慎態度。我們正在採取積極行動，為成功做好準備，並繼續專注於我們的執行。我們為業務帶來的結構性變革在這些市場條件下已被證明是有效的。我們一直在退出不穩定的業務、降低利用率、管理通路庫存、控制晶圓開工，我們計劃在應對當前市場狀況時繼續尋找提高效率的機會。

With that, I'd like to turn the call back over to Kevin to open up for Q&A.

至此，我想將電話轉回凱文以進行問答。

(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 want to ask about 2 questions on the automotive side. The first one that you talked about Europe being weaker, burning inventory. Can you give a little bit more color? Is that just Europe? Are you worried at all about that spreading to other regions and any more color? Is it just inventory? Is it true demand? Any details would be helpful.

Hassane，我想問兩個關於汽車方面的問題。第一個你談到歐洲疲軟，燃燒庫存。你能給多一點顏色嗎？那隻是歐洲嗎？您是否擔心這種情況會蔓延到其他地區並出現更多顏色？僅僅是庫存嗎？是真實的需求嗎？任何細節都會有幫助。

Sure. So we see it in Europe. Obviously, there's a big concentration of -- I highlighted the Tier 1s, big concentration of Tier 1s in Europe. But I think it's driven by end demand, coupled with -- we've always said there may be pockets of inventory that were being flat through normal demand. But having demand kind of start to soften because of the high interest rates is causing the inventory burn to last longer. So we have always said the LTSAs provide us a phone call. It sets us up very nicely to see it coming. So therefore, we're taking a very proactive measure on setting ourselves up to be able to allow customers to burn while we maintain our inventory levels, add their shelves, the disti and on our balance sheet as well.

當然。所以我們在歐洲看到了這一點。顯然，我強調了一級供應商的集中度，一級供應商的集中度在歐洲。但我認為這是由最終需求驅動的，再加上——我們一直說，可能有一些庫存在正常需求下持平。但由於高利率，需求開始疲軟，導致庫存燃燒持續更長時間。所以我們一直說 LTSA 為我們提供了電話。它讓我們非常高興地看到它的到來。因此，我們正在採取非常積極主動的措施，讓自己能夠在維持庫存水準、增加貨架、分銷以及資產負債表的同時，讓客戶有更多的消耗。

I guess as my follow-up also within automotive but on the SiC side, specifically. You lowered the bar from $1 billion roughly to over $800 million. I think you mentioned 1 customer. I don't expect you to name that 1 customer but again, is that inventory? Are you worried at all about any secular changes? Obviously, the EVs cost more on average than ICE vehicles. So some of the dynamics, I would assume, impacting Europe in general would impact the EV side. But any sort of change in your secular belief on the silicon carbide side?

我想我的後續行動也在汽車領域，但特別是在碳化矽方面。您將門檻從大約 10 億美元降低到了 8 億美元以上。我想您提到了 1 位客戶。我不希望您說出該 1 位客戶的名字，但是，那是庫存嗎？您擔心任何長期的變化嗎？顯然，電動車的平均成本高於內燃機汽車。因此，我認為影響整個歐洲的一些動態也會影響電動車方面。但是您對碳化矽方面的世俗信念有什麼改變嗎？

No, no change on the secular trend for EVs. EVs are going to grow. They're going to grow for us in the fourth quarter as well. It's just not going to grow in the fourth quarter at the rate that we expected. And of course, we're all looking at the same headlines as far as EVs are concerned. I think EVs are a long-term growth opportunity, even with the backdrop of a lot of the headlines that we're seeing. Customer designs have not slowed down, conversions to EV platforms have not slowed down. I take this as a temporary -- while a lot of the macro stuff gets worked out, whether it's the interest rates, which you called it, the expenses associated with purchasing an EV to the cost -- to the energy cost. All of that is just -- taken -- having an impact but we do not change our long-term view of the opportunity we have in EV. And like I said, we're still going to grow in Q4, just not at the rate.

不，電動車的長期趨勢沒有改變。電動車將會成長。他們也將在第四季為我們成長。第四季的成長速度不會達到我們預期的水平。當然，就電動車而言，我們都在關注相同的頭條新聞。我認為電動車是一個長期成長機會，即使在我們看到的許多頭條新聞的背景下也是如此。客戶設計並沒有放緩，向電動車平台的轉換也沒有放緩。我認為這是暫時的——雖然許多宏觀問題都得到了解決，無論是你所說的利率，還是與購買電動車相關的費用——能源成本。所有這些都只是產生了影響，但我們不會改變我們對電動車機會的長期看法。正如我所說，我們第四季仍將實現成長，只是成長速度有所不同。

(Operator Instructions) Our next question comes from Vivek Arya with BofA Securities.

（操作員指令）我們的下一個問題來自美國銀行證券公司的 Vivek Arya。

Hassane, can you help us with kind of the building blocks as we think about calendar '24, so silicon carbide, nonsilicon carbide and the exits that you're planning from the noncore areas? I just want to understand, right, how -- what the puts and takes are for those 3 building blocks so we can plan our models accordingly.

Hassane，當我們考慮 24 個日曆時，您能否幫助我們建立一些建造模組，例如碳化矽、非碳化矽以及您計劃從非核心區域退出的專案？我只是想了解，這 3 個建置模組的看跌期權和看跌期權是如何實現的，以便我們可以相應地規劃我們的模型。

Yes. Silicon carbide is -- what we are looking at is silicon carbide in '24, basically growing about 2x the market. So it's still on track to the target that we've put out on Analyst Day of growing 2x the market, that, we still have that visibility in '24.

是的。碳化矽－我們所關注的是 24 年的碳化矽，基本上成長了市場的兩倍左右。因此，它仍然有望實現我們在分析師日提出的市場成長 2 倍的目標，即我們在 24 年仍然具有這種可見性。

On the silicon side, we see flat, slightly down. Again, depending on what you believe, the market, we are not planning nor are we looking at a first half of '24 recovery. As I said on the last quarter, we see '24 as kind of going sideways with growth in silicon carbide for us. As far as the exits, by the end of this year, whatever we didn't exit is going to stay with us as a business. So we are not going to see us talking about this, the exits on the legacy business any longer in 2024. I put that all into the silicon outlook that I put out there.

在矽方面，我們看到平坦，略有下降。再說一次，這取決於你對市場的看法，我們沒有計劃，也沒有考慮 24 年上半年的復甦。正如我在上個季度所說，我們認為 24 年碳化矽的成長將呈現橫向趨勢。就退出而言，到今年年底，無論我們沒有退出什麼，都將作為一項業務留在我們身邊。因此，我們不會再看到我們在 2024 年談論遺留業務的退出。我將這一切都納入了我在那裡發布的矽前景中。

I see. So if I put it all together and look at the growth in silicon carbide and sort of the flattish plus/minus in other areas, is it unreasonable to expect ON's overall sales to grow next year? And if they do grow next year, how do you kind of align the gross margin? Can gross margins kind of hang onto these Q4 levels? Or are there other utilization or other things planned that can take gross margins down? So both kind of conceptually, can sales grow even if it's modest? And then can gross margins kind of continue at these Q4-type levels?

我懂了。因此，如果我將所有因素放在一起，看看碳化矽的成長以及其他領域的平緩正負值，那麼期望 ON 明年的整體銷售額成長是否不合理？如果他們明年確實成長，你如何調整毛利率？毛利率能維持在第四季的水平嗎？或者是否有其他利用率或其他計劃會降低毛利率？因此，從概念上講，即使銷售額不大，也能成長嗎？那麼毛利率能否繼續維持在第四季的水準？

Vivek, it's Thad. As you know, we guide 1 quarter at a time. I think given the macro uncertainty, we're not going to try and forecast 2024 at this point. We feel really good about our pipeline, our design pipeline and our LTSAs at this point. But I think it's too early to provide guidance on '24.

維維克，我是泰德。如您所知，我們一次指導一個季度。我認為考慮到宏觀不確定性，我們目前不會嘗試預測 2024 年。目前，我們對我們的管道、設計管道和 LTSA 感覺非常好。但我認為現在就 24 日提供指導還為時過早。

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

（操作員說明）我們的下一個問題來自花旗銀行的 Chris Danely。

So another question on silicon carbide. Can you tell us how much of the weakness in Q4 is silicon carbide versus, I guess, just regular semis? And then you say that you still expect silicon carbide to grow 2x the market in 2024. Has your silicon carbide, I guess, market expectations, have those moved downward over the last 3 months for '24?

那麼另一個關於碳化矽的問題。你能告訴我們第四季的弱點有多少是碳化矽與我猜的普通半成品相比嗎？然後您說您仍然預計 2024 年碳化矽將增長 2 倍於市場。我猜，您的碳化矽市場預期在過去 3 個月中是否有所下降？24 年？

No. So I would say majority of the weakness in Q4 is the silicon carbide, obviously. But the rest of the business is kind of exactly where we expected it at the end of the year. As far as the outlook in the silicon carbide market in general or the EV market in general, it really has not changed our outlook. Our investments that we have been putting and even the investments we announced in Bucheon are not investments for '23 or '24. Those are long-term investments. And that adds to the confidence we have in that market being a megatrend market for us and that's where we're investing in, to gain that leadership in that market as it evolves. So no change in the outlook and the strategy.

不，所以我想說第四季的大部分弱點顯然是碳化矽。但其餘業務與我們年底的預期完全一致。就整個碳化矽市場或整個電動車市場的前景而言，它確實沒有改變我們的前景。我們一直在進行的投資，甚至我們在富川宣布的投資都不是「23」或「24」的投資。這些都是長期投資。這增強了我們對該市場的信心，認為該市場對我們來說是一個大趨勢市場，這就是我們投資的領域，以在該市場的發展中獲得領導地位。因此，前景和策略沒有改變。

Great. And then for my follow-up, I know you're not commenting on next year but I think you said your gross margin should hold mid-40s. So if we look at your peers that have started to see the downturn, they're generally forecasting like 3 quarters in a row of declining sales. If you guys do have Q1, Q2 revenue down sequentially like your peers that are feeling this, can you still hold gross margins in the mid-40s, would you have to lower utilization rates further? Or I guess would that depend on just how much is silicon carbide versus how much is semis?

偉大的。然後，對於我的後續行動，我知道您不會對明年發表評論，但我認為您說過您的毛利率應該保持在 40 多歲左右。因此，如果我們看看那些已經開始看到經濟衰退的同行，他們通常預測銷售額將連續三個季度下降。如果你們確實像你們的同行一樣，第一季、第二季的收入連續下降，你們的毛利率還能維持在 40 多歲左右嗎？你們是否需要進一步降低利用率？或者我想這取決於碳化矽與半矽的含量是多少？

Yes. So right now, we're looking at taking our utilization down to that -- over the next several quarters down into that mid- to high-60% range. And as I said, we still expect to be able to hold that 40% -- that mid-40% gross margin floor there. This is really a result of all the structural changes that we've made inside the company, reducing that manufacturing footprint and really now focused on Fab Right, where we're getting optimized cost out of our existing footprint. But look, we're being cautious for the next several quarters and we'll take that utilization down. But we do believe we can hold that floor of mid-40.

是的。所以現在，我們正在考慮將利用率降低到這個水平——在接下來的幾個季度中降低到 60% 的中高範圍。正如我所說，我們仍然期望能夠維持 40% 的毛利率下限，即 40% 左右的毛利率下限。這實際上是我們在公司內部進行的所有結構性變革的結果，減少了製造足跡，現在真正專注於 Fab Right，我們正在從現有足跡中優化成本。但看，我們對接下來的幾季持謹慎態度，我們將降低利用率。但我們確實相信我們可以守住 40 左右的水平。

(Operator Instructions) Our next question comes from Harsh Kumar with Piper Sandler.

（操作員說明）我們的下一個問題來自 Harsh Kumar 和 Piper Sandler。

I guess it's been a while since you guys have seen a revenue decline on a sequential basis. There's a lot of things going on in the marketplace, the strike, the China economy, you talked about a European -- I guess, Hassane, I'd be curious, if you could give us a sense of magnitude. You don't have to give us numbers, obviously but just some color on what are some of the bigger factors and what are some of the smaller factors. And I do have 1 more.

我想你們已經有一段時間沒有看到收入連續下降了。市場上發生了很多事情，罷工，中國經濟，你談到了歐洲人——我想，哈桑，我很好奇，如果你能給我們一種規模感。顯然，你不必給我們提供數字，只需對哪些較大因素和哪些較小因素進行一些說明。我還有 1 個。

Sure. I mean at a high level, it's end demand, if you think about it and end demand is driven by -- you can call it 2 things. One is the financial, which is the higher interest rates that have been with us and now they're taking a toll on end demand. But also, in all honesty, the uncertainty, the macro uncertainty that as consumers, people are starting to feel, between these 2, we look at it and we look at the inventory levels across the board. We look at inventory levels internally that we have. And we've -- you've always seen us operating with a very proactive approach. So our decisions and our outlook is driven by that cautious outlook on what we can control, which is our execution. Thad talked about taking our utilization down because we don't want to bridge it by keep building inventory. You've seen us take down a lot more on the channel, which sets us up very nicely should that turn the other way. So all of these are proactive decisions that we have taken in the short term but set us up much better in the long run.

當然。我的意思是，從較高的層面來看，這是最終需求，如果你仔細想想，最終需求是由——你可以稱之為兩件事驅動的。一是金融方面，也就是我們一直面臨的較高利率，現在它們正在對最終需求造成影響。但老實說，作為消費者，人們開始感受到不確定性，宏觀的不確定性，在這兩者之間，我們會關注它，我們會全面關注庫存水準。我們會查看內部庫存水準。我們——你們總是看到我們以非常積極主動的方式運作。因此，我們的決策和前景是由對我們可以控制的事物（即我們的執行力）的謹慎前景所驅動的。泰德談到了降低我們的利用率，因為我們不想透過繼續增加庫存來彌補它。你已經看到我們在頻道上拿下了更多的東西，這讓我們在情況發生逆轉時非常好。因此，所有這些都是我們在短期內採取的積極主動的決定，但從長遠來看，我們會做得更好。

Got it. So it sounds like it's pretty broad. And then I did miss -- I think Ross asked earlier about silicon carbide. It was 1 customer driven. I did miss that in the commentary. Could you just confirm if it's mostly 1 customer-driven? Are you seeing kind of broad-based weakness -- in answer to my earlier question, is that broad-based weakness also prevalent in EVs overall with other guys? And is this also tied to your European commentary, the EV side and the European are they one and the same problem.

知道了。所以聽起來它相當廣泛。然後我確實錯過了——我想羅斯早些時候問過有關碳化矽的問題。這是 1 個客戶驅動的。我確實錯過了評論中的這一點。您能否確認一下是否主要是 1 個客戶驅動的？你是否看到了某種廣泛的弱點——回答我之前的問題，這種廣泛的弱點在電動車中是否也與其他公司一樣普遍存在？這是否也與您對歐洲的評論有關，電動車方面和歐洲是同一個問題嗎？

Look, I think from an automotive, I would say it's a broader stroke as far as the inventory comment I made specifically with Tier 1s in Europe. As far as the EV, yes, it is a single customer. I wouldn't say it is broad as far as in this immediate quarter. But we still expect it to grow in Q4. So it is not a -- I don't want to paint it as any decline or any issue in demand for EVs. EV demand is going to grow. It's going to grow in the fourth quarter and it's going to grow in 2024. It just didn't grow as much as we expected it to. And that's demand-driven, whether it's short-term demand or anything different, we'll have to wait until we get closer to '24.

看，我認為從汽車角度來看，就我專門針對歐洲一級汽車公司所做的庫存評論而言，我想說這是一個更廣泛的行程。就電動車而言，是的，它是單一客戶。我不會說就本季而言它是廣泛的。但我們仍然預期第四季會成長。所以這不是——我不想將其描述為電動車需求的任何下降或任何問題。電動車需求將會成長。第四季將會成長，2024 年也會成長。只是成長沒有我們預期的那麼快。這是需求驅動的，無論是短期需求還是其他任何不同的需求，我們都必須等到接近「24」的時候。

Just to be clear, on the silicon carbide, the expectation of being over $800 million, the impact there is 1 customer. It's the recent demand softness at 1 customer.

需要明確的是，對於碳化矽，預計超過 8 億美元，影響的是 1 個客戶。這是最近 1 位客戶的需求疲軟。

(Operator Instructions) Our next question comes from Gary Mobley with Wells Fargo Securities.

（操作員指示）我們的下一個問題來自富國銀行證券公司的加里‧莫布里（Gary Mobley）。

Hassane, I want to pin you down on your market forecast for silicon carbide for next year to really get a insight into what your expectations are. I know you cited in your footnotes of your presentation today, a lot of Yole forecast and Yole is forecasting roughly 43% growth in silicon carbide for next year. So are you expecting to grow your silicon carbide revenue 80% next year? Is that the proper read here?

Hassane，我想向您詳細介紹明年碳化矽的市場預測，以便真正了解您的期望。我知道您在今天演講的腳註中引用了 Yole 的許多預測，Yole 預測明年碳化矽的增長約為 43%。那麼您預計明年碳化矽收入將成長 80% 嗎？這是正確的讀法嗎？

Well, it depends on what the Yole -- but yes, we are expecting a 2x market.

嗯，這取決於 Yole 的情況——但是，是的，我們預計會有 2 倍的市場。

Okay. And with respect to distribution inventory, you've been running your distribution inventory below the long-term targets purposefully, I read here. What are the triggers and dashboard metrics that you're looking at before you start to take up that distribution inventory back up to a normal level? Is it just as simple as seeing better sell-through?

好的。關於分銷庫存，我在此處讀到，您一直有意將分銷庫存運行在低於長期目標的水平。在開始將分銷庫存恢復到正常水平之前，您要查看哪些觸發器和儀表板指標？難道只是看到更好的銷售那麼簡單嗎？

It's more -- yes, it's -- seeing sell-through in the mix that we are expecting. So we have -- look, there's no 1 KPI. Thad and I look at about 30 pages of KPIs that try to triangulate the health of the business and the sell-through because what we don't want is shipping into the distribution because we -- there's demand or there's backlog but the sell-through happens at a different mix. So you end up with what we call sludge in the channel.

更多的是——是的，是——看到我們預期的混合銷售。所以我們——看，沒有 1 個 KPI。 Thad 和我查看了大約 30 頁的 KPI，試圖對業務的健康狀況和銷售率進行三角測量，因為我們不希望將貨物運送到分銷中，因為我們——有需求或有積壓，但銷售率發生在不同的混合中。所以你最終會在通道中留下我們所說的污泥。

We've been managing this very, very tightly. We have a very robust process that gets us and has maintained very tight control over the distribution inventory. And like Thad said, last quarter, in Q3, we actually reduced the dollars and the weeks, putting ourselves up very nicely for a Q4 mix shift or even getting ready for 2024. So all of these KPIs are what lead us to making these decisions. So we're going to look at our metrics and make the decision as we see it.

我們一直非常非常嚴格地管理這件事。我們有一個非常強大的流程，可以讓我們對分銷庫存保持非常嚴格的控制。正如Thad 所說，上個季度，在第三季度，我們實際上減少了​​美元和周數，為第四季度的混合轉變做好了很好的準備，甚至為2024 年做好了準備。因此，所有這些KPI 都是引導我們做出這些決定的原因。因此，我們將查看我們的指標並根據我們的情況做出決定。

Yes. I would add that we've been managing that inventory in the 7- to 8-week range for several quarters now. I think we're going to stay in that range just given the uncertainty until we see the strong sell-through. But we're cautiously optimistic on that as we think about it.

是的。我想補充一點，我們幾個季度以來一直在 7 到 8 週的範圍內管理庫存。我認為考慮到不確定性，我們將保持在這個範圍內，直到我們看到強勁的銷售。但考慮到這一點，我們對此持謹慎樂觀的態度。

But I think for the foreseeable future, you're going to see us in that 7- to 8-week, you're not going to see us bouncing back up to historical levels the company ran at several years ago.

但我認為，在可預見的未來，你將在 7 到 8 週內看到我們，你不會看到我們反彈到公司幾年前的歷史水平。

(Operator Instructions) Our next question comes from Joshua Buchalter with TD Cowen.

（操作員說明）我們的下一個問題來自 TD Cowen 的 Joshua Buchalter。

I wanted to follow up on one of Gary's. So I totally understand the near-term dynamic where your customer is concentrated on ramping silicon carbide. But I'm a bit surprised to see that '24 guidance pegged to market growth, given -- I think the overwhelming consensus is that silicon carbide is going to be constrained for at least for the near term. Can you walk through how much, I guess, of your silicon carbide revenue in '24 is really program-specific? And how fungible supply is if there is changes in mix across your end customers?

我想跟進加里的其中一件事。因此，我完全理解您的客戶專注於增加碳化矽的近期動態。但令我感到有點驚訝的是，24 年的指導方針與市場成長掛鉤，因為我認為壓倒性的共識是碳化矽至少在短期內將受到限制。我猜您能說明一下您在 24 年的碳化矽收入中有多少是真正針對特定項目的嗎？如果最終客戶的組合發生變化，供應的可替代性如何？

Sure. So it is all -- I guess all of our '24 by now, for the '24, we have visibility on exactly what program, what voltage, what volume and what mix we need. As far as the inventory, Thad talks about ramping strategic inventory for silicon carbide. We stage inventory primarily in, I would say, in 2 spots. One is blank wafers or substrate, wafer substrate, which is fully fungible across any customer, any platform with any volume. And as we get closer, we stage inventory at Epi, which is when we, I guess, partition with the voltage levels of the product.

當然。所以這就是全部 - 我想現在我們所有的 24 小時，對於 24 小時，我們可以清楚地了解我們需要什麼程式、什麼電壓、什麼音量和什麼組合。就庫存而言，薩德談到了增加碳化矽的戰略庫存。我想說，我們主要在兩個地點存放庫存。一種是空白晶圓或基板、晶圓基板，它可以在任何客戶、任何平台、任何體積之間完全互換。隨著我們越來越接近，我們在 Epi 進行庫存管理，我猜，此時我們會根據產品的電壓等級進行劃分。

So this is where we maintain inventory to give us full flexibility, should the shift change. Because we've always said, when we would have 1 or 2 platforms at a customer, if 1 vehicle sells better than the other, the customer would want to shift while still using onsemi. So we give that flexibility to be able to shift on between platforms at a similar OEM or between OEMs. So the best place to keep that inventory is blank wafers and/or EPI.

因此，這就是我們維持庫存的地方，以便在輪班發生變化時為我們提供充分的靈活性。因為我們總是說，當我們為客戶提供 1 或 2 個平台時，如果其中一輛車的銷量比另一輛車好，客戶就會希望在繼續使用 onsemi 的同時進行轉移。因此，我們提供了這種靈活性，以便能夠在類似 OEM 的平台之間或 OEM 之間進行轉換。因此，保留庫存的最佳位置是空白晶圓和/或 EPI。

So is it safe to assume that SiC's going to remain constrained through '24?

那麼，可以安全地假設 SiC 在 24 世紀仍將受到限制嗎？

Yes, I believe so. It will be from our...

是的，我相信是這樣。它將來自我們的...

Got it. For my follow-up, you called out bridge inventory to support the fab transitions and silicon carbide ramps. With days above 160, can you walk us through how this unwinds? Basically, I just want to make sure that as your peers are cutting inventory levels at their end customers that, that won't become an issue as you complete some of the fab transitions and SiC ramps more fully.

知道了。在我的後續行動中，您調出了橋樑庫存來支援晶圓廠轉型和碳化矽產能提升。天數已超過 160 天，您能否向我們介紹一下這是如何緩解的？基本上，我只是想確保，當您的同行削減最終客戶的庫存水平時，當您更全面地完成一些晶圓廠轉型和 SiC 產能提升時，這不會成為問題。

Yes. So strategic inventory for fab transition usually are committed backlog. We call it no change, no return. So we build the bridge inventory given that the customer needs that bridge between the old fab and the new fab. So we see this as a very low risk, it will work itself down over a few quarters as we shut down the old fab. And before we start on the new fab, we will bleed inventory to a level and then we'll ramp it back up in the other fabs. So we don't see this as inventory jeopardy, which allows us to be a little bit more comfortable with the elevated levels of inventory.

是的。因此，晶圓廠轉型的策略性庫存通常是積壓的。我們稱之為沒有改變，沒有回報。因此，鑑於客戶需要在舊晶圓廠和新晶圓廠之間建立橋樑，我們建立了橋樑庫存。因此，我們認為這是一個非常低的風險，隨著我們關閉舊工廠，它會在幾個季度內自行下降。在我們開始建造新工廠之前，我們將庫存減少到一定水平，然後我們將在其他工廠恢復庫存。因此，我們並不認為這是庫存危機，這讓我們對庫存水準的上升感到更加放心。

But one thing, also Thad mentioned, is the base inventory, actually, we drove that down, which is the one that you're more referring to would be at risk of demand. That's the one we've been managing down. That's the one we'll keep managing down with the lower utilization that Thad talked about.

但泰德也提到，有一件事是基本庫存，實際上，我們降低了基礎庫存，這就是您更多提到的將面臨需求風險的庫存。這就是我們一直在管理的。這就是我們將繼續管理的問題，因為泰德談到了較低的使用率。

Yes. And just to be clear, the fab transitions, the inventory for the fab transitions is primarily for the divested fabs that we've divested over the last year. So it takes 3-plus years to fully transition out of a fab. And in that situations, you build inventory and you bleed it off over time. But as Hassane said, we've got good visibility on that. In a lot of cases, it's in [C&R] with those customers over a longer period of time. But it takes time. What we focused on is that base inventory and we feel good that we're driving that down as that's down to about 102 days right now.

是的。需要先明確的是，晶圓廠轉型、晶圓廠轉型的庫存主要針對我們去年剝離的晶圓廠。因此，從晶圓廠完全轉型需要三年以上的時間。在這種情況下，你會建立庫存，然後隨著時間的推移逐漸減少。但正如哈桑所說，我們對此有很好的了解。在許多情況下，需要與這些客戶進行較長時間的[C&R]。但這需要時間。我們關注的是基礎庫存，我們對將其降低感到滿意，因為目前庫存已降至約 102 天。

(Operator Instructions) The next question comes from Joseph Moore with Morgan Stanley.

（操作員說明）下一個問題來自摩根士丹利的約瑟夫摩爾。

I wonder if you could talk to pricing. Are you seeing anything that's different in terms of pricing given these -- the shortfall dynamics? And is that different in the businesses that you're exiting versus the kind of core automotive businesses?

我想知道你是否可以談談定價。鑑於這些短缺動態，您是否看到定價方面有什麼不同？您正在退出的業務與核心汽車業務有什麼不同嗎？

No, none of the outlook or the cautionary outlook that we've had has anything related to pricing. Our pricing is stable. It's locked into the LTSAs. The conversations we have had with customers regarding outlook, regarding -- regarding LTSA has all been around demand. Therefore, it's just (inaudible). So we feel pretty good about our price position.

不，我們的前景或謹慎前景都與定價無關。我們的定價是穩定的。它被鎖定在 LTSA 中。我們與客戶就前景、LTSA 進行的對話都是圍繞著需求展開的。因此，這只是（聽不清楚）。所以我們對我們的價格定位感覺很好。

Great. And then I may have missed it. Did you give a number for how much business you'll be exiting in the current quarter? And can you talk to the dynamics of -- could that accelerate in an environment where there's more plentiful supply, would that help you to get out of those businesses quicker?

偉大的。然後我可能就錯過了。您是否給出了本季將退出多少業務的數字？您能否談談動態—在供應更充足的環境中，這種情況會加速嗎？這會幫助您更快地擺脫這些業務嗎？

Yes. So we exited $46 million in Q3, it was below our expectations. And coming back to your pricing question, we're just not seeing pricing decline enough that customers are exiting that business. We are looking -- as we look into Q4, we think there's about another $125 million that we would exit. That brings the year up to somewhere around $275 million, below what we originally forecasted.

是的。因此，我們在第三季退出了 4600 萬美元，低於我們的預期。回到你的定價問題，我們只是沒有看到定價下降到足以讓客戶退出該業務。當我們研究第四季時，我們認為我們還會退出大約 1.25 億美元。這使得今年的收入達到約 2.75 億美元，低於我們最初的預測。

Just as a point of reference, the businesses now that we're talking about exiting, are at about a 45% gross margin. So it's not a bad business, assuming the pricing does hold up. The fact is, customers -- this is all customer-driven, customers aren't leaving as fast as we expected. I believe that at the end of this year, whatever is left, we're going to say is good business and we're going to continue to manage, if customers don't leave through the softness.

作為參考，我們現在談論退出的業務的毛利率約為 45%。因此，假設定價確實保持不變，這並不是一件壞事。事實是，客戶——這都是客戶驅動的，客戶離開的速度沒有我們預期的那麼快。我相信，到今年年底，無論剩下什麼，我們都會說這是好生意，如果客戶不因經濟疲軟而離開，我們將繼續管理。

(Operator Instructions) Our next question comes from Christopher Rolland with Susquehanna.

（操作員說明）我們的下一個問題來自 Susquehanna 的 Christopher Rolland。

I think the discussion for most broad-based guys are returning to the balance between bookings and backlog coverage going into a quarter and the turns business that is needed in the quarter. So I was wondering if you could perhaps talk about this for -- what's in your guide backlog coverage versus turns? And how should we be thinking about that for next year? If you can break it down into subsegments too, that would be great as well.

我認為大多數基礎廣泛的人的討論正在回歸到季度的預訂和積壓覆蓋率與本季度所需的周轉業務之間的平衡。所以我想知道您是否可以談談這個問題——您的指南積壓覆蓋範圍與輪次覆蓋範圍是什麼？明年我們該如何考慮這個問題？如果您也可以將其分解為子部分，那就太好了。

Sure. The outlook is not -- has nothing to do with the returning to turns business. We have full visibility about where the Q4 revenue is going to come in, including full backlog coverage. What we are talking about is getting the call ahead, which is the power of the LTSAs we keep talking about, where customers look at what their consumption is going to be and the consumption is lower than what they had expected. And of course, we're not here to push inventory to make the problem worse for our customers, so we negotiate a win-win with every single one of them.

當然。前景與輪流業務的回歸無關。我們完全了解第四季度的收入來源，包括完整的積壓訂單覆蓋範圍。我們所說的是提前接到電話，這就是我們一直在談論的 LTSA 的力量，客戶可以在其中查看他們的消費量，並且消費量低於他們的預期。當然，我們並不是為了增加庫存而讓客戶的問題變得更糟，因此我們與每位客戶進行談判，以實現雙贏。

So the outlook is purely demand. We know exactly what the mix is going to be. There is no turns business, even in the current quarter. And that, I would say, that comment is across all markets.

所以前景純粹是需求。我們確切地知道混合會是什麼。即使在本季度，也沒有輪換業務。我想說的是，這一評論適用於所有市場。

Okay. Great. Just maybe a quick follow-up there. are you seeing pushouts and cancellations or pushouts in those LTSAs? Is that why that number is lower? Just wondering why we had that sequential decrease in December. Maybe the Street was just mismodeling?

好的。偉大的。也許只是快速跟進。您是否在這些 LTSA 中看到了退出和取消或退出的情況？這就是這個數字較低的原因嗎？只是想知道為什麼 12 月會出現連續下降。也許《華爾街》只是建模錯誤？

And then my other question is around -- you had some comments around industrial and solar in particular. I think we've seen guys like Enphase and SolarEdge miss pretty huge. It sounded like you had some very product-specific drivers there but was just wondering why you are so optimistic around that business when it's falling generally so fast.

然後我的另一個問題是——您對工業和太陽能有一些評論。我認為我們已經看到像 Enphase 和 SolarEdge 這樣的公司錯過了相當大的機會。聽起來您那裡有一些非常特定於產品的驅動因素，但只是想知道為什麼您對該業務如此樂觀，而該業務普遍下降得如此之快。

Yes. I'll take the first part of your question on the cancellations. Look, we saw cancellations peak late last year. I would say at this point, as we look at the quarterly trends, it's pretty flat line at this point. So we're not seeing a lot of current quarter cancellations or even push outs within the forecast horizon here.

是的。我將回答你關於取消的問題的第一部分。看，我們在去年年底看到了取消的高峰。我想說，在這一點上，當我們觀察季度趨勢時，此時的線相當平坦。因此，我們在本季度沒有看到很多取消訂單，甚至在預測範圍內也沒有取消。

On the LTSAs, when a customer comes in and has a challenge, as Hassane said, we're talking about a win-win with them. And in some cases, we are allowing some pushouts as long as there's a win-win for both companies in that situation. We don't want to overship natural demand.

在 LTSA 上，正如哈桑所說，當客戶進來並遇到挑戰時，我們正在談論與他們的雙贏。在某些情況下，只要在這種情況下兩家公司都能實現雙贏，我們就會允許一些退出。我們不想超出自然需求。

But in terms of cancellations, we're not seeing a spike. Like I said, we saw that peak late last year.

但就取消而言，我們沒有看到激增。就像我說的，我們在去年年底看到了這個高峰。

As far as the industrial demand, you're right, I called out the renewable energy or energy storage. Those are all megatrends. The companies you referred to are more impacted by the residential, which obviously, is expected given the interest rates, given the consumer spending sentiment that I referred to earlier. The business we are targeting is the energy storage. A lot of it is larger-scale energy storage, which drives a lot more content. And it's not typically impacted by the residential specifically. That business has remained strong and we expect that business to remain strong on a forward-looking basis.

至於工業需求，你是對的，我提到了再生能源或儲能。這些都是大趨勢。你提到的公司受到住宅市場的影響更大，考慮到利率和我之前提到的消費者支出情緒，這顯然是預期的。我們的目標業務是儲能。其中很大一部分是更大規模的能源存儲，這可以驅動更多的內容。而且它通常不會特別受到住宅的影響。該業務一直保持強勁，我們預計該業務在前瞻性基礎上將保持強勁。

(Operator Instructions) Our next question comes from Quinn Bolton with Needham & Company.

（操作員說明）我們的下一個問題來自 Needham & Company 的 Quinn Bolton。

Just a clarification in response to one of the earlier questions, I think you said you were not looking for growth in the first half of the next year. Just wasn't sure if that was a sort of sequential comment or year-over-year comment, if you could clarify. And then I've got a follow-up on the silicon carbide business.

只是對之前的一個問題的澄清，我想您說過您不希望明年上半年實現增長。只是不確定這是否是一種連續評論或逐年評論，如果您能澄清一下。然後我對碳化矽業務進行了跟進。

Yes. Look, it's Thad. We're cautiously looking at the first half of next year. We think it's going to be soft but we do think there is a sequential down in Q1, based on what we can see today. We'll look at the rest of the year as we go further. But we're being very cautious in the first half.

是的。看，這是泰德。我們對明年上半年持謹慎態度。我們認為情況將會疲軟，但根據我們今天所看到的情況，我們確實認為第一季會出現連續下降。我們將進一步關註今年剩餘時間。但上半場我們非常謹慎。

Yes. My comment was more, I don't see a recovery, a market recovery. So it was more of a macro commentary.

是的。我的評論更多的是，我沒有看到復甦，市場復甦。所以這更多的是宏觀評論。

Got it. And then on the silicon carbide business, you talked about overall utilization rates being managed down to 68% for the next few quarters to manage inventory. I assume, given the outlook for EVs still growing in the fourth quarter into next year, that the silicon carbide is probably immune from some of those lower utilization rates but wanted to clarify that. And if utilization remains high in silicon carbide, could you actually see a scenario where silicon carbide moves above corporate average in 2024?

知道了。然後，在碳化矽業務方面，您談到未來幾季的整體利用率將降至 68%，以管理庫存。我認為，考慮到電動車的前景從第四季到明年仍然成長，碳化矽可能不會受到利用率較低的影響，但想澄清這一點。如果碳化矽的利用率仍然很高，您是否真的會看到碳化矽在 2024 年超過企業平均值的情況？

Yes, that's a good question. So the utilization for silicon carbide in Q3 was up, where silicon was down and that pulled the total up. As we look forward, we don't see the silicon carbide utilization decreasing. We will be bringing on additional capacity next year to support '25 and beyond. But I don't expect that utilization to decline. I think it's the silicon that will actually decline, that gets us down into that 65% -- the mid-60% to high-60% range.

是的，這是一個好問題。因此，第三季碳化矽的利用率上升，而矽的利用率下降，從而拉動了總量的上升。展望未來，我們預期碳化矽利用率不會下降。明年我們將增加額外的產能來支持 '25 及以後的發展。但我預計利用率不會下降。我認為矽實際上會下降，這會讓我們下降到 65%——中 60% 到高 60% 的範圍。

(Operator Instructions) Our next question comes from Vijay Rakesh with Mizuho.

（操作員說明）我們的下一個問題來自 Mizuho 的 Vijay Rakesh。

Just a quick question on your commentary on softer demand with higher inventory, I guess. Is that more -- is that pretty -- what are you seeing across the board in both combustion engine and EV? Or can you characterize that a little better?

我想，我想簡單問一下您對需求疲軟和庫存增加的評論。您在內燃機和電動車方面看到了什麼？或者你能更好地描述一下這一點嗎？

Well, it's hard to -- for a lot of the general content in automotive, it's hard to figure out if it's EV or not. But I can tell you, it's not silicon carbide. It's not IGBT. It's not the EV-specific constraint. It's more of a general -- I would call it, general purpose automotive demand that can go in either car. But given the volume for EV, it's more driven by the internal combustion demand because that's where the volume is skewed to.

嗯，這很難——對於汽車領域的許多一般內容來說，很難弄清楚它是否是電動車。但我可以告訴你，它不是碳化矽。這不是IGBT。這不是電動車特定的限制。它更像是一種通用的——我稱之為通用汽車需求，可以應用於任何一輛車。但考慮到電動車的銷量，它更多地受到內燃需求的驅動，因為這是銷量偏向的地方。

Got it. And then as you look at your silicon carbide road map, you talked about 2024 might be a transition to 200 millimeter. Is that still something that you see? And what's your expectation on what mix would be on 200 millimeter, let's say, exiting '24?

知道了。然後，當您查看碳化矽路線圖時，您談到 2024 年可能會過渡到 200 毫米。這仍然是你所看到的嗎？您對 200 毫米（比如說 24 年後）的混音有何期望？

So what we've -- so we're on track to what we've always said. We're -- finished qualifying and the conversion started. I talked about in my prepared remarks. For 200 millimeter, we feel very comfortable and actually more confident today than we were even 90 days ago on the 200 millimeter, given the performance that we've had in the silicon carbide business, ramping all the way from substrates, all the way through devices. The fabs are ready, Epi is ready and furnaces started conversion. So our plan has always been qualify '24 and ramp revenue in '25. So you're not going to really see a mix shift in '24, that would be more of a '25, '24 is when we transition manufacturing to the 200 millimeter.

所以我們已經——所以我們正在朝著我們一直所說的方向前進。我們已經完成了排位賽，轉換開始了。我在準備好的發言中談到了這一點。對於 200 毫米，我們感覺非常舒服，實際上比 90 天前在 200 毫米上更有信心，考慮到我們在碳化矽業務中的表現，從基板一路上升到設備。晶圓廠已準備就緒，Epi 已準備就緒，熔爐已開始轉換。因此，我們的計劃始終是在 24 年取得資格並在 25 年增加收入。因此，你不會在 24 年真正看到混合轉變，這更像是 25 年，24 年是我們將製造過渡到 200 毫米的時候。

Got it. And last question, when you look at silicon carbide, when do you start to see it getting accretive to the corporate margins, I guess?

知道了。最後一個問題，當你看到碳化矽時，我猜你什麼時候開始看到它會增加公司利潤？

Well, so we're going to hit the corporate average in Q4, as I said. As you go into next year, I think it's going to be at or above, depending on kind of what the market does. And that's going to be dependent on overall utilization. But we'll definitely be at parity and potentially higher in 2024.

嗯，正如我所說，我們將在第四季度達到公司平均水平。當你進入明年時，我認為它會達到或更高，這取決於市場的表現。這將取決於總體利用率。但到 2024 年，我們肯定會達到同等水平，甚至可能更高。

(Operator Instructions) Our next question comes from Timothy Arcuri with UBS.

（操作員說明）我們的下一個問題來自 UBS 的 Timothy Arcuri。

I just wanted to ask a question also on the 2023 silicon carbide cut from $1 billion down to $800 million. You guys had always talked about the LTSAs being legally binding and it didn't seem like they would be subject to any changes in EV ramps. It sounded like a little bit of a higher bar than what we hear from others. So can you talk about that? Was that some structural change in a program from one of your customers where something is just permanently pushed out? Or should we still expect that, that amount you're not getting this year, does that push into next year?

我只是想問一個關於 2023 年碳化矽從 10 億美元削減到 8 億美元的問題。你們一直在談論 LTSA 具有法律約束力，而且它們似乎不會受到電動車坡道的任何變化的影響。這聽起來比我們從其他人那裡聽到的要高一些。那你能談談這個嗎？是否是您的一位客戶對專案進行了某種結構性更改，導致某些內容永久推出？或者我們仍然應該期望，今年沒有得到的金額會延續到明年嗎？

So obviously, I'm not going to comment on specific customer details and specifically on programs. But I will comment on the LTSAs. So the LTSAs are legally binding. Therefore, for us to agree or even acknowledge that pushout or even the demand in general, outside of silicon carbide in Q4, there has to have been, which there is, a win-win for us and the customer. We've always said, if anything, the LTSAs give us a phone call. We get the phone call way ahead of time in certain areas when the customer knows that it's coming. And we're able to manage with the customer for a win-win, whether that win-win is a quarter later or a year later or a longer term that depends on case by case. So we manage it with the customer because what we don't want is, of course, enforce the LTSA at the expense of just shipping inventory if demand is lower. So we take it very cautiously. We have -- it has to be a win for us but also a win for the customer and that's what keeps the strategic customers engaged.

顯然，我不會評論特定的客戶詳細信息，特別是程序。但我會對 LTSA 發表評論。因此，LTSA 具有法律約束力。因此，為了讓我們同意甚至承認第四季度碳化矽之外的推出甚至整體需求，我們和客戶必須實現雙贏。我們總是說，如果有的話，LTSA 會打電話給我們。當客戶知道它即將到來時，我們會在某些地區提前接到電話。我們能夠與客戶實現雙贏，無論這種雙贏是一個季度後、一年後還是更長的期限，具體取決於具體情況。因此，我們與客戶一起管理它，因為我們當然不希望強制執行 LTSA，而在需求較低時才運送庫存。所以我們非常謹慎地對待它。我們－這必須是我們的勝利，也是客戶的勝利，這就是維持策略客戶參與的原因。

Got it. Got it. Sure. So given that, is the commitment still to $4.5 billion between '23 and '25, so that we still have [$3.7 billion] left between '24 and '25?

知道了。知道了。當然。那麼考慮到這一點，在 23 至 25 年間的承諾是否仍為 45 億美元，以便我們在 24 至 25 年間仍有 [37 億美元]？

We're not commenting on that. What I have commented is, obviously, if you take the growth rate that I described in 2024, you can compare it to where we were before. So no change in our outlook.

我們對此不予評論。顯然，我所評論的是，如果你採用我所描述的 2024 年的成長率，你可以將其與我們之前的情況進行比較。所以我們的觀點沒有改變。

(Operator Instructions) Our next question comes from Tristan Gerra with Baird.

（操作員說明）我們的下一個問題來自 Tristan Gerra 和 Baird。

I just wanted to expand a little bit on the coverage for next year for LTSA. Obviously, I'm guessing that you don't have full year coverage like you did entering this year but could you talk about maybe percentagewise? Or when is the average LTA expiring next year? Just wanted to kind of look at the transition for LTSAs into notably the second half of next year.

我只是想稍微擴大一下 LTSA 明年的覆蓋範圍。顯然，我猜您沒有像今年那樣擁有全年保險，但您能談談百分比嗎？或是明年平均長期協議什麼時候到期？只是想了解 LTSA 到明年下半年的過渡情況。

Yes. So what you'll see in our filing is that we've got $5.7 billion of LTSA commitment over the next 12 months. So hopefully, that gets you in the ballpark there.

是的。因此，您將在我們的文件中看到，我們在未來 12 個月內承諾提供 57 億美元的 LTSA。希望這能讓你達到目標。

Okay. And what's the average duration? And how should we look at how some of those are unwinding later next year or even in '25?

好的。平均持續時間是多少？我們應該如何看待其中一些在明年晚些時候甚至在 25 年將如何解除？

Yes. So the number I gave you is the 12 months -- from this point forward, 12 months. Now your question is a broader question about LTSAs in general. So the LTSAs go out 3 to 5 years on average, sometimes much longer. It just depends on the customer situation. I think last quarter, we talked about customers coming back, extending LTSAs or expanding LTSAs. So it just -- as these things come up for renewal, customers are coming in and engaging. I would say the customers are looking over the long term versus the short term when it comes to the negotiation and the extension of LTSAs.

是的。所以我給你的數字是 12 個月——從現在開始，12 個月。現在您的問題是關於一般 LTSA 的更廣泛的問題。因此，LTSA 平均有效期為 3 到 5 年，有時甚至更長。這僅取決於客戶的情況。我認為上個季度，我們討論了客戶回歸、延長 LTSA 或擴大 LTSA。因此，當這些東西需要更新時，客戶就會進來並參與其中。我想說，在談判和延長 LTSA 時，客戶會著眼於長期而不是短期。

(Operator Instructions) Our next question comes from Christopher Caso with Wolfe Research.

（操作員說明）我們的下一個問題來自 Wolfe Research 的 Christopher Caso。

Yes. Thank you. I think I'll just go back to the commentary on silicon carbide into next year. Just some of the questions coming in during the call, there was some uncertainty that I hope we could resolve. So what -- my interpretation of what you're saying is, silicon carbide, it sounds like it's down significantly in Q4, given the fact that it's a majority of the decline here. But you're also suggesting that it grows next year and you stay supply constrained. So that would suggest that what you're implying is some improvement at some point next year in silicon carbide. How do we just reconcile those comments, unless we got some of them wrong?

是的。謝謝。我想明年我會回到對碳化矽的評論。只是電話會議期間提出的一些問題，我希望我們能解決一些不確定性。那又怎樣——我對你所說的解釋是，碳化矽，聽起來它在第四季度大幅下降，因為事實上它是這裡下降的大部分。但你也建議明年它會成長，但供應仍然有限。因此，這表明您所暗示的是碳化矽在明年的某個時候會有所改善。我們如何協調這些評論，除非我們弄錯了其中一些？

Yes. So the -- I guess, I would say the 1 comment that I believe you got wrong is Q4 in silicon carbide is not down. Q4 silicon carbide is growth from Q3. It is just not at the level that we expected. That's what drove the mix. So it is not silicon carbide going backwards.

是的。所以，我想，我想說的是，我認為你錯了的第 1 條評論是碳化矽的第四季度並沒有下降。第四季碳化矽較第三季有所成長。只是沒有達到我們預期的水平。這就是推動混合的原因。所以碳化矽並不是倒退。

With that correction and the ramps that we're starting -- we have in Q3 and will continue to ramp in Q4, plus the breadth of customers that I described, those are going to drive sequential growth through 2024. So silicon carbide is not down quarter -- will not be down quarter-on-quarter, Q3, Q4, it will be up and it will continue to be up in subsequent quarters through Q4.

透過這項修正和我們開始的成長－我們在第三季進行了調整，並將在第四季繼續成長，加上我所描述的客戶範圍，這些將推動到2024 年的連續成長。所以碳化矽並沒有下降季度——不會環比、第三季、第四季下降，而是會上升，並且在接下來的幾季到第四季將繼續上升。

That's very helpful. Yes. Yes. And just moving onto CapEx for silicon carbide as we go to next year. And your earlier comments suggest this is long-term investment. But given the current environment, are there any changes to the investments that you were planning for calendar '24? Although certainly, it sounds like you'd continue to invest, what do we expect for the CapEx profile next year in light of the change in environment?

這非常有幫助。是的。是的。明年我們將轉向碳化矽的資本支出。您之前的評論表明這是長期投資。但考慮到當前的環境，您為 24 日曆年所規劃的投資是否有任何變化？當然，聽起來您會繼續投資，但鑑於環境的變化，我們對明年的資本支出狀況有何期望？

Yes. Chris, in my prepared remarks, I noted that because of our strong performance in silicon carbide and being ahead of our internal plans and our confidence in moving into 200 millimeter, that we're actually taking our capital intensity in 2024 down. We had expected the high teens for 2024. I'm now saying it's low-teens and it's quickly closing in on that long-term target. So we will continue to make investments but not at the rate that we needed to just because the performance across the entire manufacturing chain is ahead of schedule and exceeding our expectations.

是的。克里斯，在我準備好的發言中，我指出，由於我們在碳化矽領域的強勁表現、領先於我們的內部計劃以及我們對進入 200 毫米的信心，我們實際上正在降低 2024 年的資本強度。我們原本預計 2024 年會達到較高的數字。我現在說的是較低的數字，並且正在迅速接近該長期目標。因此，我們將繼續進行投資，但不會僅僅因為整個製造鏈的績效提前並超出我們的預期而以我們需要的速度進行投資。

(Operator Instructions) Our next question comes from William Stein with Truist Securities.

（操作員指示）我們的下一個問題來自 Truist Securities 的 William Stein。

I'm hoping you can discuss the dynamics in the industrial end market. This is where we're seeing more weakness from other semi companies and similar component manufacturers over the last quarter. The call has been very focused on the change in outlook in silicon carbide but I'd love for you to discuss trends more broadly in the industrial end market and your expectations as we progress into next year.

希望您能討論一下工業終端市場的動態。這是我們在上個季度看到其他半導體公司和類似零件製造商更加疲軟的地方。這次電話會議非常關注碳化矽前景的變化，但我希望您能更廣泛地討論工業終端市場的趨勢以及您對明年的期望。

Yes. So for industrial, obviously, we see the same as a lot of our broad-based peers, so weakness in industrial. However, within industrial, I called out the 2 areas that we have seen and will continue to see strength. That's the renewable energy that we talked about earlier with energy storage and so on. And the medical, both driven by very specific trends on the energy storage. Obviously, it is the renewable deployment at just not the residential scale but more commercial scale that's driving a lot of the strength. And on the medical, it is a very specific trend of accessibility of the continuous glucose and the hearing aid, which is now almost over the counter that's driving a lot of that demand for us. And given that we have a leadership position here, we're seeing that strength.

是的。因此，對於工業領域，顯然，我們與許多廣泛基礎的同行一樣，看到工業領域的疲軟。然而，在工業領域，我指出了我們已經看到並將繼續看到實力的兩個領域。就是我們前面講的再生能源，還有儲能等等。醫療領域也是由非常具體的儲能趨勢所驅動的。顯然，再生能源的部署不僅僅是住宅規模，而是商業規模，這推動了很大的力量。在醫療方面，連續血糖和助聽器的可及性是一個非常特殊的趨勢，現在幾乎可以透過櫃檯購買，這推動了我們的大量需求。鑑於我們在這裡擁有領導地位，我們看到了這種力量。

So outside of these 2, we do see the softness across in industrial. 2024, I commented, we don't expect 2024 to see a very big change in recovery. So you can call it -- we'll call it when we get closer to it. But I don't have signs that will change the -- my view of the trend and outlook.

因此，除了這兩者之外，我們確實看到了工業領域的疲軟。 2024年，我評論道，我們預計2024年復甦不會有太大變化。所以你可以稱呼它——當我們接近它時我們會稱呼它。但我沒有任何跡象會改變我對趨勢和前景的看法。

Thank you. 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 for any closing remarks.

謝謝。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 Hassane El-Khoury，讓其結束語。

Thank you again for joining our call. As always, we aim to deliver consistency and transparency in our results and we thank you for your support along the way. The executive staff and I are incredibly proud of our team's continued performance, dedication to our customers and commitment to delivering shareholder value. Our employees all over the world are solving complex technology and business problems for customers. Congratulations to the team and thank you all.

再次感謝您加入我們的通話。一如既往，我們的目標是提供結果的一致性和透明度，並感謝您一路以來的支持。我和管理人員對我們團隊的持續表現、對客戶的奉獻以及對提供股東價值的承諾感到無比自豪。我們遍布世界各地的員工正在為客戶解決複雜的技術和業務問題。恭喜團隊並感謝大家。

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。