安森美 (ON) 2024 Q1 法說會逐字稿

Good day and thank you for standing by. Welcome to the ON Semi First Quarter 2024 Earnings Conference Call. (Operator Instructions). Please be advised today's conference is being recorded.

美好的一天，感謝您的支持。歡迎參加安森美半導體 2024 年第一季財報電話會議。 （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.

現在我想將會議交給今天的發言人帕拉格·阿加瓦爾 (Parag Agarwal)。請繼續。

Thank you, Kevin. Good morning and thank you for joining On Semi's First Quarter 2024 Quarterly Results Conference Call. I'm joined today by Hassane El-Khoury, our President and CEO, and Thad Trent, our CFO. This call is being webcast on the Investor Relations section of our website at www.onsemi.com. A replay of this webcast, along with our 2024 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.

謝謝你，凱文。早安，感謝您參加 On Semi 2024 年第一季季度業績電話會議。今天，我們的總裁兼執行長 Hassane El-Khoury 和財務長 Thad Trent 也加入了我的行列。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。本次網路廣播的重播以及我們的 2024 年第一季收益發布將在本次電話會議後約 1 小時在我們的網站上發布，錄製的網路廣播將在本次電話會議後約 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 includes certain non-GAAP financial measures. Reconciliation of these non-GAAP financial measures to the most directly comparable GAAP 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 Investors Relations section.

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。這些非公認會計原則財務指標與最直接可比較的公認會計原則指標的調節以及對使用非公認會計原則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。

During the course of this conference call, we will make projections or other forward-looking statements regarding the 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 events or results 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 and other filings with the Securities and Exchange Commission and in our earnings release for the first quarter of 2024. 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.

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。我們希望提醒您，此類陳述存在風險和不確定性，可能導致實際事件或結果與預測有重大差異。我們最近向美國證券交易委員會提交的表格 10-K、表格 10-Q 和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。我們2024 年第一季的收益發布中。 。

Now let me hand 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 on the call. In the first quarter, our worldwide team delivered revenue of $1.86 billion, non-GAAP gross margin of 45.9% and non-GAAP earnings per share of $1.08, all above the midpoint of our guidance. We have remained laser focused on our execution, driving new design win growth of 30% quarter-over-quarter, and gaining share in silicon and silicon carbide based on the strength of our technology.

謝謝你，帕拉格。早安，感謝大家加入我們的電話會議。第一季度，我們的全球團隊實現了 18.6 億美元的收入，非 GAAP 毛利率為 45.9%，非 GAAP 每股收益為 1.08 美元，均高於我們指引的中點。我們始終專注於我們的執行，推動新設計訂單環比成長 30%，並基於我們的技術實力獲得矽和碳化矽市場份額。

Customers value the breadth of our portfolio and the superior performance of our intelligent power and sensing technologies, which continue to fuel platform wins. Leading indicators of future revenue to support our plan to outgrow the market in automotive and industrial with new product revenue in Q1 increasing 9% year-over-year, and we expect it to continue to outpace total company growth with favorable gross margins at scale. Specifically, we believe our silicon carbide business to have the best financial performance in the industry on a fully loaded basis with more than 50% of substrates coming from internal production in the first quarter. The performance of our silicon carbide solutions, combined with our vertically integrated supply chain, are enabling us to rapidly diversify our customer base.

客戶重視我們產品組合的廣度以及智慧電源和感測技術的卓越性能，這將繼續推動平台的成功。未來收入的領先指標支持我們的計劃，以超越汽車和工業市場的成長，第一季新產品收入年增 9%，我們預計它將繼續超過公司整體成長，並實現良好的毛利率。具體來說，我們相信我們的碳化矽業務在滿載的基礎上擁有行業中最好的財務業績，第一季超過 50% 的基板來自內部生產。我們的碳化矽解決方案的性能與我們垂直整合的供應鏈相結合，使我們能夠迅速實現客戶群的多元化。

Having just returned from the China Auto Show in Beijing, I remain confident that we are continuing to gain share and expanding into the top 10 leading Chinese OEMs, where we are already designed into the newly announced 800-volt EV platforms and set to start ramping in the second half of 2024. As for the global silicon carbide market, we still expect an increase in the TAM, although at a lower rate than previously anticipated. The increase is primarily driven by incremental volumes of EVs produced globally over 2023, even as total SAAR is projected to be flat to slightly down.

剛從北京的中國車展回來，我仍然有信心我們將繼續獲得份額並擴展到中國前10 名領先的原始設備製造商中，我們已經設計到新發布的800 伏特電動汽車平台中，並準備開始擴大規模2024年下半年。這一增長主要是由 2023 年全球電動車產量增量推動的，儘管 SAAR 總量預計將持平或略有下降。

We continue to gain share in silicon carbide and diversify across all markets and still expect our revenue to increase 2x the market growth in 2024. Outside of silicon carbide, there was incremental softness in the market in the first quarter. Inventory digestion persisted across the automotive and industrial markets with stabilization in the traditional part of our industrial business. We remain cautious about the second half outlook, but we expect customer inventory levels to normalize and the market to stabilize.

我們繼續擴大碳化矽市場份額，並在所有市場實現多元化，仍然預計 2024 年我們的營收將成長為市場成長率的 2 倍。汽車和工業市場的庫存消化持續存在，我們工業業務的傳統部分趨於穩定。我們對下半年前景保持謹慎，但我們預計客戶庫存水準將正常化，市場將穩定。

We will maintain our disciplined approach to navigating the current environment and expect to deliver predictable results as we have demonstrated. Through this environment, we're also investing to further our leadership in the high-growth megatrends of automotive, industrial and cloud, including data centers. During our Analyst Day last May, we highlighted a $19 billion high-margin TAM opportunity that we could service by expanding our portfolio of power management and sensor interface technologies. To best align with the strategic intent, we have formed the analog and mixed signal group, which will deliver industry-leading full system solutions for these markets.

我們將保持嚴謹的態度來應對當前環境，並期望實現我們已經證明的可預測的結果。透過這種環境，我們也進行投資，以進一步鞏固我們在汽車、工業和雲端（包括資料中心）高成長大趨勢中的領導地位。在去年 5 月的分析師日期間，我們強調了 190 億美元的高利潤 TAM 機會，我們可以透過擴展電源管理和感測器介面技術組合來提供服務。為了最好地符合策略意圖，我們成立了模擬和混合訊號小組，將為這些市場提供業界領先的完整系統解決方案。

Electrification remains the largest growth opportunity for On Semi across xEVs from BEV to ATV. We provide a unique value proposition for our customers with our wide range of silicon carbide and IGBT solutions along with our high-powered packaging technologies. Our revenue from xEV grew by approximately 60% year-over-year, significantly outpacing unit production, and we continue to gain share with our silicon carbide and silicon products primarily in BEV.

電氣化仍然是安森美半導體在從 BEV 到 ATV 等 xEV 領域的最大成長機會。我們透過廣泛的碳化矽和 IGBT 解決方案以及高效能封裝技術為客戶提供獨特的價值主張。我們的 xEV 收入年增約 60%，大大超過了單位產量，並且我們主要在 BEV 領域的碳化矽和矽產品的市場份額繼續增加。

In automotive sensing, the shift towards higher-resolution image sensor for ADAS systems continues with customers moving to better performance options. Our revenue for 8-megapixel image sensors increased more than 30% quarter-over-quarter and more than 60% year-over-year, demonstrating the market trend towards higher resolution for ADAS systems. In medical, we are leveraging AI technology in our processors for hearing aids to adapt to the user's unique hearing environment for an improved listening experience, and we are designed in more than 50% of over-the-counter hearing aids currently available in the market.

在汽車感測領域，隨著客戶轉向更好的性能選擇，ADAS 系統繼續轉向更高解析度的影像感測器。我們的 800 萬像素影像感測器收入環比成長超過 30%，年成長超過 60%，這顯示了 ADAS 系統解析度更高的市場趨勢。在醫療領域，我們在助聽器處理器中利用人工智慧技術，以適應使用者獨特的聽力環境，從而改善聆聽體驗，目前市場上超過 50% 的非處方助聽器均採用我們的設計。

With a relentless focus on innovation, we are actively investing in new products and technologies to extend our competitive advantage and drive above-market revenue growth at favorable margins, consistent with our Analyst Day commitment. We remain on track and continue to make progress towards 200-millimeter in silicon carbide. We are already sampling new mixed-signal products, and we are gaining share across the portfolio based on the differentiation of our technology.

憑藉對創新的不懈關注，我們正在積極投資新產品和技術，以擴大我們的競爭優勢，並以有利的利潤率推動高於市場的收入成長，這與我們在分析師日的承諾是一致的。我們仍保持正軌，並繼續在 200 毫米碳化矽方面取得進展。我們已經在對新的混合訊號產品進行採樣，並且基於我們技術的差異化，我們正在獲得整個產品組合的份額。

Our investment in cloud and data centers over the last 3 years has enabled us to benefit from the incremental opportunity we are seeing from the rapid rise of AI. Next-generation AI server racks will require 200 to 300 kilowatts of power, as much as the power needed in a BEV. Our full suite of high-efficiency power tree solutions from the power supply unit or PSU to the CPU or GPU consuming the power continues to present the content expansion opportunity as customers look to us to solve their power density problems in data centers. As we look forward with disciplined, consistent execution while maintaining the customer-centric mindset, we will navigate the current environment and continue to deliver value for our stakeholders.

過去 3 年我們對雲端和資料中心的投資使我們能夠從人工智慧快速崛起帶來的增量機會中受益。新一代人工智慧伺服器機架將需要 200 至 300 千瓦的功率，與純電動車所需的功率相當。當客戶希望我們解決資料中心的功率密度問題時，我們的全套高效能電源樹解決方案（從電源單元或 PSU 到消耗電力的 CPU 或 GPU）繼續提供內容擴展機會。當我們期待在保持以客戶為中心的思維的同時，遵守紀律、一致的執行力時，我們將駕馭當前的環境，並繼續為我們的利害關係人提供價值。

Let me now turn it over to Thad to give you more details on our results. Thad?

現在讓我將其轉交給泰德，向您提供有關我們結果的更多詳細資訊。泰德？

Thanks, Hassane. Our teams have been relentless in their pursuit of operational excellence. Their focus on execution to drive more predictable and sustainable results once again delivered first quarter results that exceeded expectations. Our ability to respond to the current market environment and deliver better results than ever in a downturn demonstrates the resiliency we've built into the business over the last 3 years.

謝謝，哈桑。我們的團隊一直不懈地追求卓越營運。他們專注於執行，以推動更可預測和可持續的結果，再次實現了超出預期的第一季業績。我們有能力應對當前的市場環境並在經濟低迷時期提供比以往更好的業績，這證明了我們在過去三年中在業務中建立的彈性。

Amid continued inventory digestion in automotive and industrial, we reported Q1 revenue of $1.86 billion, down 8% quarter-over-quarter and down 5% year-over-year. Our automotive business of $1 billion grew 3% as compared to the quarter a year ago and declined 9% quarter-over-quarter, in line with our expectations. Vehicle electrification and advanced safety applications remain the long-term growth drivers for this business.

在汽車和工業庫存持續消化的情況下，我們報告第一季營收為 18.6 億美元，季減 8%，年減 5%。我們 10 億美元的汽車業務與去年同期相比成長 3%，季減 9%，符合我們的預期。汽車電氣化和先進的安全應用仍然是該業務的長期成長動力。

Our revenue for industrial was $476 million, down 14% versus the first quarter of 2023, and down 4% sequentially. We are seeing early signs of stabilization in our traditional industrial business, which is slightly less than half of our total industrial. Long term, we expect upside opportunities in industrial to come from energy infrastructure, factory automation and medical applications.

我們的工業收入為 4.76 億美元，比 2023 年第一季下降 14%，比上一季下降 4%。我們看到傳統工業業務穩定的早期跡象，該業務僅佔工業總量的一半以下。從長遠來看，我們預計工業的上升機會將來自能源基礎設施、工廠自動化和醫療應用。

As a result of our strategy to shift to the high-growth megatrends for the sustainable ecosystem, our automotive and industrial revenue accounted for 80% of our business in Q1.

由於我們轉向可持續生態系統高成長大趨勢的策略，我們的汽車和工業收入佔第一季業務的80%。

Looking at the split between the operating units. Revenue for the Power Solutions Group, or PSG, was $874 million, an increase of 2% year-over-year coming from higher silicon carbide revenue in automotive and industrial applications, offset by a decline of silicon power products. Revenue for the analog and mixed signal group, or AMG, was $697 million, a 6% decline year-over-year driven by declines in industrial and automotive. As previously announced, we have formed AMG to deliver industry-leading full system analog mixed-signal solutions. Prior period revenue has been reclassified and is available on the Investor Relations section of our website.

看看營運單位之間的劃分。電源解決方案集團（PSG）的收入為 8.74 億美元，年增 2%，這得益於汽車和工業應用中碳化矽收入的增加，但被矽功率產品的下滑所抵消。類比和混合訊號部門 (AMG) 的收入為 6.97 億美元，由於工業和汽車業務下滑，年減 6%。正如先前宣布的，我們成立了 AMG，以提供業界領先的全系統類比混合訊號解決方案。前期收入已重新分類，可在我們網站的投資者關係部分查看。

Revenue for the Intelligent Sensing Group, or ISG, was $292 million, an 18% decrease year-over-year due to a decline in industrial and automotive. Gross margin -- GAAP gross margin was 45.8% in the first quarter and non-GAAP gross margin was 45.9% compared to 46.7% in Q4 and 46.8% in the quarter a year ago. These results exceeded expectations, even though utilization was at 65%, a slight decrease from 66% in Q4.

智慧感測集團（ISG）的收入為 2.92 億美元，由於工業和汽車業務的下滑，年減 18%。毛利率－第一季 GAAP 毛利率為 45.8%，非 GAAP 毛利率為 45.9%，而第四季為 46.7%，去年同期為 46.8%。儘管利用率為 65%，較第四季的 66% 略有下降，但這些結果超出了預期。

In prior downturns, at similar utilization levels, our gross margin was approximately 30%. [Commuted] by utilization, our gross margin expansions continue. Most notably, our Fab Right strategy of optimizing our existing footprint is well underway, and our teams continue to drive operational excellence with cost improvement opportunities. At East Fishkill, we have aggressively improved the operational efficiency of the fab, reducing the fixed and variable cost to reach parity and wafer costs with our other fabs. The dilutive impact in Q1 was 140 basis points as compared to 200 basis points in the fourth quarter. We expect this to be roughly 100 basis points dilutive for the remainder of the year for the ongoing foundry business with GLOBALFOUNDRIES.

在先前的經濟低迷時期，在類似的利用率水準下，我們的毛利率約為 30%。 [換算]以利用率計算，我們的毛利率繼續擴張。最值得注意的是，我們優化現有足跡的 Fab Right 策略正在順利進行，我們的團隊繼續透過成本改進機會推動卓越營運。在東菲什基爾，我們積極提高了晶圓廠的營運效率，降低了固定和可變成本，以達到與其他晶圓廠相同的成本和晶圓成本。第一季的稀釋影響為 140 個基點，而第四季為 200 個基點。我們預計今年剩餘時間格羅方德公司正在進行的代工業務將稀釋約 100 個基點。

As a result of our cost-reduction efforts at EFK and our Fab Right initiatives, we now expect 1 point of utilization improvement across our manufacturing network will result in approximately 15 to 20 basis points of gross margin improvement.

由於 EFK 的成本降低工作和 Fab Right 計劃，我們現在預計整個製造網路的利用率提高 1 個百分點將導致毛利率提高約 15 至 20 個基點。

Now let me give you some additional numbers for your models. GAAP expenses for the first quarter was $328 million as compared to $353 million in the first quarter of 2023. Non-GAAP operating expenses were $314 million as compared to $286 million in the quarter a year ago. As Hassane mentioned, we continue to invest to further our leadership position in our focus markets.

現在讓我為您的模型提供一些額外的數字。第一季的 GAAP 支出為 3.28 億美元，而 2023 年第一季為 3.53 億美元。正如哈桑所提到的，我們繼續投資以進一步鞏固我們在重點市場的領導地位。

GAAP operating margin for the quarter was 28.2% and non-GAAP operating margin was 29%. Our GAAP tax rate was 15.7% and non-GAAP tax rate was 16%. GAAP earnings per share for the first quarter was $1.04 as compared to $1.03 in the quarter a year ago. Non-GAAP earnings per share was near the high end of our guidance at $1.08 as compared to $1.19 in Q1 of 2023.

本季 GAAP 營運利潤率為 28.2%，非 GAAP 營運利潤率為 29%。我們的 GAAP 稅率為 15.7%，非 GAAP 稅率為 16%。第一季 GAAP 每股收益為 1.04 美元，去年同期為 1.03 美元。非 GAAP 每股盈餘接近我們指引的上限，為 1.08 美元，而 2023 年第一季為 1.19 美元。

GAAP diluted share count was 437 million shares, and our non-GAAP diluted share count was 4302 million shares. In Q1, we deployed $100 million or 36% of our free cash flow for share repurchases. In the last 12 months, we have repurchased $560 million worth of shares and returned nearly 100% of our free cash flow back to our shareholders.

GAAP 稀釋後股票數量為 4.37 億股，非 GAAP 稀釋後股票數為 43.02 億股。第一季度，我們部署了 1 億美元（即自由現金流的 36%）用於股票回購。在過去 12 個月中，我們回購了價值 5.6 億美元的股票，並將近 100% 的自由現金流返還給股東。

Turning to the balance sheet. Cash and cash equivalents was $2.6 billion, and we have $1.1 billion undrawn on our revolver. Cash from operations was $499 million, and free cash flow increased 3x year-over-year to $276 million, representing 15% of revenue. Capital expenditures during Q1 were $222 million, which equates to a capital intensity of 12%. As previously indicated, we expect 2024 capital intensity to be in the low teens for the full year.

轉向資產負債表。現金和現金等價物為 26 億美元，我們的左輪手槍還有 11 億美元未動用。營運現金為 4.99 億美元，自由現金流年增 3 倍，達到 2.76 億美元，佔營收的 15%。第一季的資本支出為 2.22 億美元，相當於資本密集度為 12%。如前所述，我們預計 2024 年全年資本密集度將處於十幾歲以下。

Inventory increased by $35 million sequentially, and days increased by 15 days to 194. This includes 86 days of bridge inventory to support fab transition in the silicon carbide brand. Excluding these strategic builds, our base inventory decreased $31 million sequentially to approximately 109 days.

庫存較上月增加了 3,500 萬美元，天數增加了 15 天，達到 194 天。不包括這些戰略構建，我們的基礎庫存環比減少了 3,100 萬美元，至約 109 天。

We continue to proactively manage distribution inventory. [Distri] inventory was down $19 million sequentially with weeks of inventory at weeks -- at 8 weeks as expected versus 7.2 weeks in Q4. As previously mentioned, we expect to replenish the channel in 2024 to service mass market customers and expect inventory to start to normalize with increasing inventory levels to approximately 9 weeks over the next few quarters.

我們繼續主動管理分銷庫存。 [Distri] 庫存環比減少了 1,900 萬美元，庫存週數為 8 週，預期為 8 週，而第四季度為 7.2 週。如前所述，我們預計將在 2024 年補充管道，為大眾市場客戶提供服務，並預計庫存將開始正常化，在未來幾季將庫存水準增加至約 9 週。

Now let me provide you the 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. Given the current macro environment and our demand visibility, we anticipate Q2 revenue will be in the range of $1.68 billion to $1.78 billion with softness across all end markets. We expect non-GAAP gross margin to be between 44.2% and 46.2%. As we have shown, our structural changes are proving sustainable, and we expect to hold the mid-40% gross margin for -- floor with utilization in the mid-60% range.

現在讓我向您提供第二季非公認會計準則指引的關鍵要素。與我們第一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。考慮到當前的宏觀環境和我們的需求可見性，我們預計第二季營收將在 16.8 億美元至 17.8 億美元之間，所有終端市場均疲軟。我們預計非 GAAP 毛利率將在 44.2% 至 46.2% 之間。正如我們所表明的，我們的結構性變革被證明是可持續的，我們預計毛利率將保持在 40% 的下限，而利用率將在 60% 的範圍內。

Our Q2 non-GAAP gross margin includes share-based compensation of $6.5 million. We expect non-GAAP operating expenses of $313 million to $328 million, including share-based compensation of $28.6 million. We anticipate our non-GAAP other income to be a net benefit of $12 million with our interest income exceeding interest expense. We expect our non-GAAP tax rate to be approximately 16% and our non-GAAP diluted share count for the second quarter is expected to be approximately 432 million shares. This results in non-GAAP earnings per share to be in the range of $0.86 to $0.98. We expect capital expenditures in the range of $180 million to $220 million.

我們第二季的非 GAAP 毛利率包括 650 萬美元的股權激勵。我們預計非 GAAP 營運費用為 3.13 億美元至 3.28 億美元，其中包括 2,860 萬美元的股權激勵。我們預計我們的非 GAAP 其他收入將為 1,200 萬美元的淨收益，其中利息收入將超過利息支出。我們預計非 GAAP 稅率約為 16%，第二季非 GAAP 稀釋後股數預計約為 4.32 億股。這導致非 GAAP 每股收益在 0.86 美元至 0.98 美元之間。我們預計資本支出在 1.8 億至 2.2 億美元之間。

Our financial strategy and long-term targets remain unchanged. We are investing for our future while leaning on our playbook to drive operational efficiencies across the organization. We also remain committed to our capital allocation strategy of returning 50% of our free cash flow to shareholders over the long term.

我們的財務策略和長期目標保持不變。我們正在為未來進行投資，同時依靠我們的行動手冊來提高整個組織的營運效率。我們也持續致力於將 50% 的自由現金流長期返還給股東的資本配置策略。

We are a different company today, and I'd like to take this opportunity to thank our employees around the world for the value they've unlocked during our transformation journey. Their efforts were most recently recognized by the management top 250 ranking published by The Wall Street Journal, which identifies the most effectively managed businesses. We are proud to have been named as posting the biggest gain of any company and we will continue to strive for operating excellence as we navigate the coming quarters.

今天我們是一家不同的公司，我想藉此機會感謝我們世界各地的員工在我們的轉型之旅中釋放的價值。他們的努力最近得到了《華爾街日報》發布的管理 250 強排名的認可，該排名確定了管理最有效的企業。我們很自豪被評為獲得最大收益的公司，我們將在未來幾季繼續努力實現卓越營運。

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

這樣，我想將電話轉回給凱文，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。

First question, Hassane, I just want to get into the linearity of demand you saw in the first quarter and thus far in the second quarter and maybe specifically what you're seeing in the silicon carbide side. I know you said that the market TAM is going to be slower, but you'll still grow 2x that. What's your estimation for what the market TAM is going to do?

第一個問題，哈桑，我只想了解您在第一季和第二季迄今為止看到的需求線性，也許特別是您在碳化矽方面看到的情況。我知道你說過市場 TAM 會變慢，但你還是會成長 2 倍。您對市場 TAM 將做什麼的估計是什麼？

Yes. Specifically, on the first quarter, we did see a slowdown through the quarter. Specifically, if I were to break it, you can think about it after Chinese New Year, typically, we would expect a slight recovery or back to linearity, and we didn't -- that's where we started to see some of the incremental softness that we talked about, specifically in auto.

是的。具體來說，在第一季度，我們確實看到了整個季度的放緩。具體來說，如果我要打破它，你可以在農曆新年之後考慮一下，通常情況下，我們預計會略有恢復或回到線性，但我們沒有——這就是我們開始看到一些增量疲軟的地方我們談過，特別是在汽車領域。

As far as the silicon carbide, I think it's too early in the year to call a market. What I'm basing my comments on, and specifically the 2x growth, is really a bottoms-up share gain that we have based on a vehicle-by-vehicle and socket-by-socket that we're designed in. And we know what the sockets and the designs of the platforms are out there.

就碳化矽而言，我認為今年判斷市場還為時過早。我的評論所基於的，特別是 2 倍的增長，實際上是自下而上的份額增長，這是我們基於我們設計的逐輛​​車和逐插座的基礎上獲得的。和平台的設計。

What is pending to see today, and like I said, it's early in the year still, is the sell-through of these vehicles. As we get through the second half of the year, that picture will get clearer. I'll get a little bit more accurate as far as what the market would do. But for right now, we're looking at it as are we designed in more than 2x the sockets that are deployed this year, and the answer is yes.

今天有待觀察的是這些車輛的銷售情況，正如我所說，現在還處於年初。隨著下半年的到來，這種情況將會變得更加清晰。我會更準確地了解市場的走勢。但就目前而言，我們正在研究它，因為我們設計的插座是今年部署的插座的兩倍以上，答案是肯定的。

I guess for my follow-up, Thad, one for you on the gross margin side of things. Congrats for holding the 45% floor. Can you just walk some of the idiosyncratic puts and tastes going forward? I know you said what the utilization impact will be when revenues and all of that go up. But East Fishkill exiting fabs, all those sorts of things, what sort of -- what are the pluses and minuses as we think about gross margin through the year?

泰德，我想我的後續行動是針對毛利率方面的。恭喜你守住了45%的底線。您能否繼續探討一些特殊的看跌期權和口味？我知道你說過當收入和所有這些都增加時，利用率會受到什麼影響。但是東菲什基爾退出晶圓廠，所有這些事情，當我們考慮全年的毛利率時，有哪些優點和缺點？

Sure, sure. So just starting with the utilization. So as I mentioned in the prepared remarks, 1 point of utilization is 15 to 20 basis points of gross margin improvement. So think about us being at the mid-60s. If we get back up into the low 80s, you can do the math on -- the tailwind there.

一定一定。那就從利用率開始吧。正如我在準備好的發言中提到的，1 個利用率點意味著毛利率提高 15 到 20 個基點。想想我們現在是 60 年代中期。如果我們回到 80 年代低點，你可以計算一下——那裡的順風。

For East Fishkill, we expect this year, it's about 100 basis points dilutive as we go through the rest of the year. That's the foundry business. As I mentioned, we now have the cost parity with our other fabs. So we're happy with the progress we've made there. That gap is underutilized. So you get that benefit, as I mentioned, on the utilization.

對於東菲什基爾，我們預計今年的稀釋率將在今年剩餘時間稀釋約 100 個基點。這就是鑄造業務。正如我所提到的，我們現在與其他晶圓廠的成本相當。因此，我們對在那裡取得的進展感到滿意。這一差距沒有得到充分利用。因此，正如我所提到的，您可以在利用率方面獲得好處。

The other component is the fab divestitures from 2022, the 4 fabs. We start to see that's starting to be monetized in 2025. That's $160 million of annualized costs. We won't see it all in '25, but we'll start to recognize it in '25 and the outer-years as we move that production into our fab network. So that's another nice tailwind.

另一個組成部分是從 2022 年開始剝離的晶圓廠，即 4 座晶圓廠。我們開始看到它在 2025 年開始貨幣化。我們不會在 25 年看到這一切，但當我們將生產轉移到我們的晶圓廠網路時，我們將在 25 年及以後的幾年中開始認識到這一點。所以這是另一個很好的順風。

And then we've got the ramping of new products that are accretive to gross margins. That includes silicon carbide. As we continue to scale silicon carbide in '25 and further, that becomes accretive. And all new products, as Hassane mentioned, the new product revenue is growing, that at scale is all accretive as well. So to do the math there, you start to get pretty close to our target.

然後我們不斷推出新產品，從而增加毛利率。其中包括碳化矽。隨著我們在 25 年及以後繼續擴大碳化矽規模，這種規模將會不斷增加。正如哈桑所提到的，所有新產品的新產品收入都在成長，而且規模上也是不斷增加的。因此，在那裡進行數學計算，您開始非常接近我們的目標。

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'm trying to understand the message and the outlook for the second half that we get the -- weaker and the headwinds for Q2, but how should we think about the pace of recovery from here? Because I thought I heard Thad say that you plan to increase, I think, distribution inventory. That sounds like a positive message, but if things started to get weaker towards the end of Q1, that doesn't sound like a positive message. So I'm just trying to understand what are you trying to signal for the second half. Is Q2 the bottom? And how should we think about Q3 from what we know today? Obviously, it's a fluid environment.

哈桑，我試圖了解下半年的資訊和前景，即第二季的疲軟和逆風，但我們應該如何考慮從現在開始的復甦步伐？因為我想我聽到泰德說你計劃增加分銷庫存。這聽起來像是一個積極的信息，但如果情況在第一季末開始變得疲軟，那聽起來就不是一個積極的信息。所以我只是想了解下半場你想發出什麼訊號。 Q2是底部嗎？根據我們今天的了解，我們應該如何看待第三季？顯然，這是一個流動的環境。

Yes. I'll -- let me try to clarify here. First off, I'm not going to call the bottom. I was very clear last time, I'll call it when I'm sitting on the top on the other side. But what we are seeing -- we did see the slowdown -- that slowdown -- inventory digestion and demand. And I believe the 2 are related persisted in our outlook for Q2. But for the second half, we are starting to see stabilization in demand.

是的。讓我試著在這裡澄清一下。首先，我不會觸底。上次我就說得很清楚了，等我坐到另一邊上面的時候再叫。但我們所看到的——我們確實看到了放緩——這種放緩——庫存消化和需求。我相信這兩者是相關的，這與我們對第二季度的展望一致。但下半年，我們開始看到需求趨於穩定。

Now I wouldn't go as far as calling it a recovery. But I think if I were to use a letter that everybody talks about, it's an L at this point, meaning we're seeing stabilization, we're seeing recovery, meaning it's not deteriorating further. Now whether or not the demand will pick up, that's too close to call that. But at least we see stabilization in our outlook.

現在我不會稱之為復甦。但我認為，如果我要使用每個人都在談論的字母，那麼此時它是一個L，意味著我們正在看到穩定，我們正在看到復甦，意味著它不會進一步惡化。現在，無論需求是否會回升，都很難說。但至少我們看到前景趨於穩定。

Okay. And then on the silicon carbide, just 1 or 2 near term and then kind of the longer term. On the near term, what did your silicon carbide sales do in Q1, either sequentially or year-on-year? And what's your China exposure? And then there's a lot of industry discussion about low-priced EVs. And I think you guys have both silicon and silicon carbide. And I'm wondering if there is an industry move towards the so-called lower-priced EVs, especially in the U.S. market? Would that be positive or neutral to ON's power opportunity?

好的。然後是碳化矽，短期內只有 1 或 2 個，然後是長期。短期來看，你們第一季的碳化矽銷售額是較上季還是年比？您在中國的曝光度如何？然後，業界對低價電動車進行了許多討論。我認為你們都有矽和碳化矽。我想知道產業是否會轉向所謂的低價電動車，特別是在美國市場？這對 ON 的電力機會是積極的還是中性的？

Yes. So on the first question, we're not breaking up the silicon carbide on a quarterly -- last year, we annual and we talked about, for both competitive reasons, we're not breaking up the quarterly. What we have said is, it will obviously increase in 2024 from 2023, but we will update the annual year or the annual results for 2024 as we get towards the end of the year.

是的。因此，關於第一個問題，我們不會按季度分解碳化矽——去年，我們每年都討論過，出於競爭原因，我們不會按季度分解碳化矽。我們說過的是，2024年的數據會比2023年明顯增加，但我們會在接近年底時更新2024年的年度或年度業績。

As for the low-cost EVs, it's an interesting dynamic in the market. Our position, we will benefit regardless of what technology the customer uses, whether it's silicon carbide or IGBT. And we have seen areas where we have benefited from both, whether at the same customer account or even in the same platform.

至於低成本電動車，這是市場上有趣的動態。我們的立場是，無論客戶使用什麼技術，無論是碳化矽還是IGBT，我們都會受益。我們已經看到了我們從這兩者中受益的領域，無論是在同一個客戶帳戶中，還是在同一個平台上。

What I also want to highlight is we've been pushing the efficiency on silicon carbide, both device and package with our new generation that we're -- we've announced and designed in -- to customers, where it will be ramping in the second half of this year, specifically with a lot of the China OEMs that you can argue are at a low-cost or low-price point for a low-cost EV. Those have also silicon carbide because the dynamic that you see, the benefit they get from using On Semi's silicon carbide with On Semi's packaging from a module perspective, given the efficiency that they will save way more dollars on the battery than they were just going from silicon carbide to IGBT.

我還想強調的是，我們一直在向客戶提高碳化矽的效率，無論是裝置還是封裝，我們已經宣布並設計了新一代碳化矽，它將在客戶中逐步普及今年下半年，特別是許多中國原始設備製造商，你可以說它們的低成本電動車處於低成本或低價位。這些也有碳化矽，因為你看到的動態，從模組的角度來看，他們從使用On Semi 的碳化矽和On Semi 的封裝中獲得的好處，考慮到他們將在電池上節省更多美元的效率，比他們剛剛獲得的效率要高得多。

So from a system-level solution, the battery is the biggest bond and can save battery by using any of the technology, they win on the low cost, and we've seen customers do that. But regardless of what technology and what system level of cost they want to optimize, we will benefit, whether it's silicon carbide or IGBT.

所以從系統級解決方案來看，電池是最大的紐帶，可以透過使用任何技術來節省電池，他們以低成本取勝，我們已經看到客戶這樣做了。但無論他們想要優化什麼技術和什麼系統成本水平，我們都會受益，無論是碳化矽還是IGBT。

Our next question comes from Chris Danely with Citi.

我們的下一個問題來自花旗銀行的克里斯丹利 (Chris Danely)。

Just another question on silicon carbide. So if you're not going to give us the quarterly revenue, what are gross margins doing? Are they stabilizing? Or are they going down? And then how about your pricing expectations for the rest of the year? Have your pricing expectations changed? And what revenue level do you need to get -- to that 50% gross margin target?

關於碳化矽的另一個問題。那麼，如果您不打算向我們提供季度收入，那麼毛利率會怎麼樣呢？他們穩定了嗎？或者他們正在下降？那麼您對今年剩餘時間的定價預期如何？您的定價預期有變動嗎？您需要達到什麼收入水準—達到 50% 的毛利率目標？

Yes. The -- I think the gross margin is -- for silicon carbide is stable. As we talked about last year, it will remain stable as we increase revenue, but we've also added capacity. So kind of the utilization and the growth will offset each other to give us that stability in the gross margin.

是的。我認為碳化矽的毛利率是穩定的。正如我們去年談到的，隨著我們增加收入，它將保持穩定，但我們也增加了產能。因此，利用率和成長將相互抵消，從而使我們的毛利率保持穩定。

Longer term, of course, you got the utilization as we grow into our installed footprint. So that will give us a nice upside on the gross margin. As we ramp internal substrates, that will give us -- the incremental gross margin that gets us to -- be above the 50% that we talked about. And as we march closer to the model for -- the corporate level model at 53% long term.

當然，從長遠來看，隨著我們安裝足跡的擴大，您會得到利用。因此，這將為我們的毛利率帶來很大的上升空間。當我們增加內部基板時，這將使我們的毛利率增量超過我們所說的 50%。隨著我們越來越接近長期的企業級模式（53%）。

Now one thing I do want to highlight is we also are making incremental improvements on our efficiency side, which means that we are able to service the same level of power that the customer require with a smaller die. So from a system-level cost, we are also making technology improvements in order to improve our cost. So between the cost, the new products that we talked about earlier, and growing into the capacity, that's where that's going to give us the incremental margin. We see it in the standard margin if you take out underutilization. And that's what we're going to grow into. So we're pretty comfortable with our trajectory on silicon carbide margin, and we'll continue to execute.

現在我想強調的一件事是，我們也在效率方面進行漸進式改進，這意味著我們能夠使用更小的晶片提供客戶所需的相同功率等級。所以從系統層面的成本來說，我們也在進行技術的改進，以提高我們的成本。因此，在成本、我們之前討論的新產品和產能成長之間，這將為我們帶來增量利潤。如果您剔除未充分利用的情況，我們會在標準利潤中看到它。這就是我們將要成長的樣子。因此，我們對碳化矽利潤率的軌跡非常滿意，我們將繼續執行。

Great. And then for my follow-up, between your 2 big markets, auto and industrial, would it be fair to say that the industrial market appears to be stabilizing, but -- the automotive market is getting a little bit weaker? And is all of that weakness in silicon carbide? Or is there weakness in auto outside of silicon carbide?

偉大的。然後，對於我的後續行動，在汽車和工業這兩個大市場之間，可以公平地說，工業市場似乎正在穩定，但是──汽車市場正在變得有點疲軟？所有這些弱點都是碳化矽嗎？或者汽車領域除了碳化矽之外還有其他弱點嗎？

Sorry, you blanked out the last discussion -- I didn't catch it.

抱歉，你刪掉了最後的討論──我沒聽清楚。

Oh, okay. Yes. Can you guys hear me okay now?

哦好的。是的。你們現在聽得到我說話嗎？

Yes, Chris.

是的，克里斯。

Okay. Great. So just between the 2 big end markets, auto and industrial, is it fair to say that broadly speaking, the industrial market for you guys is stabilizing? And then on the automotive market, is it fair to say it's getting a little bit incrementally weaker? And is that incremental weakness all silicon carbide? Or is there weakness in the non-silicon carbide automotive business?

好的。偉大的。那麼，在汽車和工業這兩個大型終端市場之間，可以公平地說，從廣義上講，你們的工業市場正在穩定嗎？那麼在汽車市場上，可以說它正在逐漸疲軟嗎？這種逐漸增加的弱點都是碳化矽嗎？還是非碳化矽汽車業務有弱點？

Yes. I think at a high level, between the market, your comment is true. I don't think from an overall -- from the automotive side, the second part of your question, I don't think it's only on the silicon carbide. Silicon carbide, I think it's well understood in general as far as the TAM. But our growth on silicon carbide is really more on share gains rather than just specific to total market. And we've been very consistent about that. 2024 is still on track for that. But we did see incremental softness in automotive on the silicon side as well, which is more on the broader aspect of automotive.

是的。我認為在市場的高層，你的評論是正確的。我不認為從整體上——從汽車方面來看，你問題的第二部分，我不認為它只涉及碳化矽。碳化矽，我認為就 TAM 而言，它總體上是很好理解的。但我們在碳化矽方面的成長實際上更多是基於份額的成長，而不僅僅是針對整個市場。我們對此一直非常一致。 2024 年仍有望實現此目標。但我們確實也看到了汽車矽方面的疲軟，這更多是在汽車的更廣泛的方面。

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 question on the silicon carbide business as well. For this year, Hassane, what's the rough split between automotive and industrial? And more importantly, I was hoping you could speak to your diversification efforts. I think customer concentration has been a bit of an issue from an investor perspective. Your largest customer was significant last year. I think they'll continue to be significant this year, but how should we think about your customer base and your customer mix broadening, an SiC specifically, going forward?

我也有關於碳化矽業務的問題。 Hassane，今年汽車和工業之間的大致差異是什麼？更重要的是，我希望您能談談您的多元化努力。我認為從投資人的角度來看，客戶集中度一直是個問題。去年你們最大的客戶非常重要。我認為它們今年將繼續發揮重要作用，但我們應該如何考慮您的客戶群和客戶組合的擴大，特別是碳化矽，未來？

Yes. So the first part of the question. It's been pretty consistent. You can think about it as 80-20, 80% auto, 20% industrial, give or take. Depending on the quarter and when the ramp happens, they're a little bit asynchronous ramps based on the end market.

是的。所以問題的第一部分。一直很一致。你可以把它想像成 80-20，80% 汽車，20% 工業，給予或接受。根據季度和斜坡發生的時間，它們是基於終端市場的一些非同步斜坡。

As far as diversification, we've been very consistent on 2024 will be more diversified than what 2023 was. That remains the case. Last quarter, we called out ramps in automotive OEMs in Europe starting to ramp EV with On Semi silicon carbide. The comment I made today is further proliferation in the Chinese EV, which today is the biggest penetration of electrification in light vehicle production. Between those 2 efforts as these ramp in the second half getting us to that 2x market that I talked about, that's going to come with further diversification across all geographies. Very consistent with where our LTSAs originally were, and where the ramps have started to occur. So predictable, consistent and we're executing to that.

就多元化而言，我們一直非常一致地認為 2024 年將比 2023 年更加多元化。情況仍然如此。上個季度，我們呼籲歐洲汽車原始設備製造商開始利用安森美半導體碳化矽生產電動車。我今天發表的評論是中國電動車的進一步普及，目前電動車是輕型車生產中電氣化滲透率最高的產品。在這兩項努力之間，隨著下半年的這些努力，我們進入了我談到的兩倍市場，這將伴隨著所有地區的進一步多元化。與我們的 LTSA 最初所在位置以及坡道開始出現的位置非常一致。如此可預測、一致，我們正在執行這一點。

Great. And as a follow-up, I feel like you talked about data center a little bit more than on prior calls. To level set us, can you speak to the exposure you have to AI or data center more broadly today? And how are you thinking about the growth profile there over the coming years given the focus on AI infrastructure spend across your end customers?

偉大的。作為後續行動，我覺得您比之前的電話會議更多地談論了資料中心。為了讓我們了解一下，您能談談您今天對人工智慧或資料中心的更廣泛的了解嗎？鑑於最終客戶對人工智慧基礎設施支出的關注，您如何看待未來幾年的成長狀況？

Yes. If you go back to our last Analyst Day where Sudhir, in his prepared comments, he talked about the power tree being very similar in automotive, industrial and cloud and data center. We've talked a lot about our penetration and our success in auto and industrial, and we've shifted our focus over the last 3 years to the cloud and data center.

是的。如果你回到我們上一次分析師日，蘇迪爾在他準備好的評論中談到了汽車、工業、雲端和資料中心的電源樹非常相似。我們已經談論了很多關於我們在汽車和工業領域的滲透和成功，並且在過去的三年裡我們已經將重點轉移到了雲端和資料中心。

And at Analyst Day, we talked about that outlook being about 22% CAGR over the next 5 years. That's what our investment thesis has been. We've been introducing products both on the power discrete side, and furthermore on, call it, controllers and point of load and so on, which is more on the intelligent power coming from our Analog and Mixed-Signal Group that we've organized around that effort. So all of these put together are where our investment has been.

在分析師日，我們談到了未來 5 年複合年增長率約 22% 的前景。這就是我們的投資理念。我們一直在推出功率分立方面的產品，此外，稱之為控制器和負載點等，更多的是來自我們組織的模擬和混合訊號組的智慧功率圍繞這一努力。所以所有這些加在一起就是我們的投資所在。

I talked more about it this quarter than I did last quarter even just because of our progress. Last quarter, I talked about our success in sampling, a lot of these products coming from that group. We're further sampling and engaging with customers. I'm very bullish about it. You'll hear more about it as we get through the year. But the target markets are auto industrial, but on top of that is the cloud and data centers.

即使只是因為我們的進步，本季我比上個季度更多地談論了它。上個季度，我談到了我們在抽樣方面的成功，其中許多產品都來自該組。我們正在進一步取樣並與客戶互動。我對此非常看好。當我們度過這一年時，你會聽到更多關於它的資訊。但目標市場是汽車工業，但最重要的是雲端和資料中心。

Are you able to size it for us today? Is it low singles, mid-singles? Any hints there?

今天你能為我們量一下尺寸嗎？是低單打還是中單打？有什麼提示嗎？

Not yet.

還沒有。

Our next question comes from Gary Mobley with Wells Fargo Securities.

我們的下一個問題來自富國銀行證券的加里·莫布里。

Hassane, you probably realized this already, but most investors are worried about the ability for non-China silicon carbide suppliers to compete in the China market against local competition. And your messaging on that front was clear that you're gaining share at the top 10 China automotive OEMs. But longer term, what's your hook to remain successful in that marketplace? Is it a focus on higher-voltage battery systems? Is it hybrid silicon, silicon carbide solution? Is it local investment into the China market? Any color there would be helpful.

Hassane，您可能已經意識到這一點，但大多數投資者擔心非中國碳化矽供應商在中國市場與本地競爭對手競爭的能力。你們在這方面傳達的訊息很明確，即你們正在中國十大汽車原始設備製造商中獲得份額。但從長遠來看，您在該市場保持成功的秘訣是什麼？重點是更高電壓的電池系統嗎？是混合矽、碳化矽溶液嗎？是本土投資進入中國市場嗎？任何顏色都會有幫助。

Yes. Look, I've always been very consistent on -- we compete on the value of our products. Because at the end of the day, if you don't have value in the product, somebody somewhere is willing to take a lower margin for just good enough. That's not the business we're in. Therefore, maintaining our investments and maintaining an aggressive road map that provides value for the customer.

是的。看，我一直非常堅持——我們在產品的價值上競爭。因為歸根結底，如果你的產品沒有價值，某個地方的某人就會願意接受較低的利潤，以獲得足夠好的產品。這不是我們從事的業務。

From a customer perspective, they need to be looking at it by -- if I use On Semi, I can save hundreds of dollars on battery versus if I use somebody maybe cheaper locally, and I will have to add that cost on the battery. If that is the case, which is what we do and why we win in any geography, then it's irrelevant what the competition is doing as long as we maintain our leadership on the technology.

從客戶的角度來看，他們需要透過以下方式來看待這個問題：如果我使用On Semi，我可以節省數百美元的電池費用，如果我使用本地可能更便宜的產品，我將不得不增加電池成本。如果是這樣的話，這就是我們所做的，也是我們在任何地區獲勝的原因，那麼只要我們保持在技術上的領先地位，競爭對手在做什麼就無關緊要了。

We've proven this year after year. The competition in China has been no less or more, whether it's European vendors or local Chinese vendor. And we've proven our ability with our internal and vertically integrated strategy to compete to have the best financial structured business for silicon carbide, and to grow above market by gaining share. All of these are the leading indicators of how we were going to continue to tackle that business both in the short term and the long term.

我們年復一年地證明了這一點。無論是歐洲供應商或中國本土供應商，中國的競爭不分上下。我們已經透過內部和垂直整合策略證明了我們有能力競爭，擁有最好的碳化矽財務結構業務，並透過獲得份額來超越市場。所有這些都是我們將如何在短期和長期內繼續處理該業務的領先指標。

As a follow-up, I wanted to ask about your design win metrics. You called out a 30% quarter-over-quarter increase in design wins. I presume that's lifetime value. But looking at it as a more long-term basis, what -- the trends you're seeing there, lifetime value on maybe a trailing 12-month basis, is that supportive of the 10% to 12% long-term revenue growth targets you guys have outlined?

作為後續行動，我想問您的設計獲勝指標。您稱設計獲勝量較上季成長了 30%。我認為這就是終身價值。但從更長期的角度來看，您所看到的趨勢（可能是過去 12 個月的終身價值）是否支持 10% 至 12% 的長期收入成長目標你們已經概述了嗎？

That's right. We do see that. That's kind of based on the model. You're right, it is a lifetime revenue. But the way I look at it, to support the 10% to 12%, it is the, I guess, the overlaid annual revenue on top of the base, on top of the new products that continue to grow. If I put all of these together, our next outlook is supporting the 10% to 12%. So you take the base, you add the new products, and you add new design wins on top of it, and that layering effect gives us that 10% to 12% growth.

這是正確的。我們確實看到了這一點。這是基於模型的。你說得對，這是一輩子的收入。但在我看來，為了支援 10% 到 12%，我猜是在基礎之上、在持續成長的新產品之上疊加的年收入。如果我把所有這些放在一起，我們的下一個前景是支持 10% 到 12%。因此，你在基礎上添加新產品，並在其之上添加新的設計勝利，這種分層效應為我們帶來了 10% 到 12% 的增長。

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。

Hassane, I had a quick question for you on distribution and OEM partner inventory. I guess the question is, which one for you is bigger? And then are you comfortable at this point with the inventory you're holding? Clearly, you mentioned that you're raising inventory at the distri, but would you give us some color on the inventory of the OEM partners? And also, this environment is a very good test of pricing. Are you seeing pricing generally hold up pretty well for your products?

Hassane，我有一個關於分銷和 OEM 合作夥伴庫存的快速問題要問您。我想問題是，哪一個對你來說比較大？那麼此時您對所持有的庫存感到滿意嗎？顯然，您提到您正在提高分銷商的庫存，但是您能否給我們一些有關 OEM 合作夥伴庫存的資訊？而且，這種環境也是定價的一個很好的考驗。您是否認為您的產品定價總體上保持得很好？

Yes. Let me start with the pricing. Pricing is -- we've been saying pricing is stable. That's the power of the LTSA. A lot of the conversations we've had with customers on -- given the demand environment has been more on what do we do on the volumes rather than the pricing. That goes back to win-win. We invested in capacity. We will support customers in a softer market. But it has not been a pricing discussion, and we don't expect it to be a pricing discussion.

是的。讓我從定價開始。定價是－我們一直說定價是穩定的。這就是 LTSA 的力量。鑑於需求環境，我們與客戶進行的許多對話更多是關於我們在數量上做什麼，而不是在定價上。這又回到了雙贏。我們投資於產能。我們將在市場疲軟的情況下為客戶提供支援。但這並不是定價討論，我們也不希望這成為定價討論。

As far as the inventory, look, we've been -- it changes based on the market. We believe the industrial side of it. If you recall, we start taking utilization down and reducing our shipments in industrial back at the end of 2022. So we've had longer than most of our peers, kind of a period in 2023, where we've helped customer drain in the industrial market drain their inventory. That's why we're seeing that stabilization that Thad talked about, and even better outlook for the standard part of our industrial business. So that's on the industrial.

就庫存而言，看，我們一直在根據市場變化。我們相信它的工業方面。如果您還記得，我們​​從 2022 年底開始降低利用率並減少工業出貨。工業市場耗盡庫存。這就是為什麼我們看到泰德談到的穩定，以及我們工業業務標準部分的更好前景。這就是工業領域。

On the automotive, I don't think we're done. We saw that softness in Q1. As I mentioned earlier, you see it in the outlook for Q2. But I do think that there is further stabilization in the second half of the year. So that tells you kind of where we feel the inventory of the customers.

在汽車領域，我認為我們還沒有完成。我們在第一季看到了這種疲軟。正如我之前提到的，您可以在第二季的展望中看到這一點。但我確實認為下半年會進一步穩定。這可以告訴你我們對客戶庫存的感受。

But I will remind everybody, inventory at the customer is related to also demand. If demand picks up, inventory drain accelerates. If demand stays stable, it will take longer. But we feel like customers have a healthy level of inventory, and we feel good about it for the second half to call the stabilization.

但我要提醒大家，客戶的庫存也跟需求有關。如果需求回升，庫存消耗就會加速。如果需求保持穩定，則需要更長的時間。但我們認為客戶的庫存水準處於健康水平，我們對下半年的穩定感到滿意。

As far as the disti, we've always run very disciplined distribution inventory. We do have a second half ramp for new products that we talked about. You're going to see us click that up. Remember, this quarter -- or the prior quarter, we drained $19 million on the inventory in the channel. Although weeks of inventory went up, dollars came down, although we beat slightly the guide. So with that, that gives you the disciplined approach that we've been pushing for, and we'll continue to do that. But we do expect inventory at the disti to go up, just readying for the ramps, both silicon carbide and some other new products that we have in the second half.

就分銷而言，我們一直運行非常嚴格的分銷庫存。我們確實有下半年推出我們談到的新產品。你會看到我們點擊它。請記住，本季（或上一季）我們在通路庫存上消耗了 1900 萬美元。儘管庫存週數有所增加，但美元有所下降，儘管我們略高於指導值。因此，這為您提供了我們一直在推動的嚴格方法，我們將繼續這樣做。但我們確實預期經銷商的庫存將會增加，為下半年的碳化矽和其他一些新產品的增加做好準備。

Internal inventory has been very disciplined. We drained the base aggressively based on the utilization. We've taken a declining utilization to maintain inventory. The only inventory that went up is the strategic for a good reason. It's all a cap transfers.

內部庫存非常嚴格。我們根據利用率積極排空基地。我們採取了降低利用率來維持庫存的措施。唯一增加的庫存是戰略庫存，這是有充分理由的。都是上限轉會。

Got it. I had a sort of a multipart question on silicon carbide. You talked about 2x growth relative to the market based on design wins, bottoms-up approach. I guess, when you talk to your customers, what kind of growth are they implying?

知道了。我有一個關於碳化矽的多部分問題。您談到了基於設計勝利、自下而上的方法相對於市場的 2 倍增長。我想，當你與客戶交談時，他們暗示著什麼樣的成長？

And then secondly, you talked about wins in China. Are these based on your own internal wafers? Are they based on your outsourced wafers or external wafers? And then is there any situation you see where silicon carbide is flat in 2024 and just kind of wild possibility?

其次，你談到了在中國的勝利。這些是基於您自己的內部晶圓嗎？它們是基於您的外包晶圓還是外部晶圓？那麼，您是否會看到碳化矽在 2024 年持平且可能性很大的情況？

I don't want to talk about wild possibility. Look, I can only comment on what we see and where the customers and the market is. Silicon carbide is going to grow in 2024. And it's -- and we are going to grow 2x. What I can say about the market is specifically what I commented on earlier, we know the platforms that are ramping this year. We know the platforms we are in. We know what products we are putting in those platforms because think about it by now, all the stuff is qualified and just shipping and ramping. So based on that, that's where the 2x comes in.

我不想談論瘋狂的可能性。看，我只能評論我們所看到的以及客戶和市場在哪裡。碳化矽將在 2024 年成長。關於市場，我能說的就是我之前評論過的，我們知道今年正在崛起的平台。我們知道我們所處的平台。基於此，2x 就派上用場了。

What I'm not commenting on as far as the TAM is, well, until those cars ship in the market, you don't really have a TAM to call out. So that's the reason for that.

就 TAM 而言，我沒有評論的是，在這些汽車上市之前，你實際上沒有 TAM 可以調用。這就是原因。

As far as mix, I said 50% of our substrates -- over 50% of our substrates are internal. But we don't ship, I guess, a different mix, whether it's going to China or it's going to the U.S. or going to Europe. We ship out of our inventory based on what we need to run manufacturing. And right now, it is a mix of over 50% is -- remains internal. But no customer has a requirement where the substrates need to come from because the substrates are not what gets qualified at a customer level. It is the device that gets qualified at a customer level.

至於混合，我說我們 50% 的基材——超過 50% 的基材是內部的。但我想，我們不會運送不同的產品，無論是運往中國、美國或歐洲。我們根據生產所需的庫存來出貨。目前，超過 50% 的內容仍然是內部的。但沒有客戶對基材的來源有要求，因為基材不符合客戶等級的要求。它是獲得客戶級認證的設備。

Our next question comes from Harlan Sur with JPMorgan.

我們的下一個問題來自摩根大通的 Harlan Sur。

With the view that dynamics in the second half are going to start to normalize or stabilize, are LTSA, customer calls to revised volumes, push out cancellations on the non-LTSA business, are these activity levels here starting to stabilize or decline ahead of the second half shipment stabilization? Or do these activity levels continue to remain at pretty high levels?

鑑於下半年的動態將開始正常化或穩定，LTSA、客戶要求修改數量、取消非 LTSA 業務，這些活動水準在下半年出貨穩定？或者這些活動水平是否繼續保持在相當高的水平？

Yes. No, you're right in that comment. So they are -- they have slowed down, requests for pushouts, requests for changing volumes, and so on, which gives us that comfort to call out the second half stabilization that we talked about. But yes, it's basically just like the LTSAs have been a tool in the market softness, and seeing it earlier, that same tool for the slowdown in that discussion and the amendments that we're doing with customers gives us that other side of it.

是的。不，你的評論是對的。所以他們已經放慢了速度，要求推出，要求改變數量，等等，這讓我們放心地呼籲我們談到的下半年穩定。但是，是的，這基本上就像 LTSA 一直是市場疲軟的一個工具一樣，而且之前看到的，同樣的工具可以減緩討論以及我們正在與客戶進行的修訂，這給了我們另一面。

And Harlan, I would add, if you look at the non-LTSA orders, the order pattern is getting stronger. So that's the stabilization we're seeing. We're seeing less cancellations, less pushouts than what we saw over the last couple of quarters.

我想補充一點，哈倫，如果你看看非 LTSA 訂單，你會發現訂單模式變得越來越強。這就是我們看到的穩定。與過去幾季相比，我們看到取消預訂和取消預訂的情況都減少了。

Perfect. Then from a geographical perspective, Asia ex Japan, which is primarily China, has declined about 24%-dollar terms over the past 2 years versus the total company, which is down 4%. How much of the decline in China is just broad-based China weakness? How much of it is your lean distribution strategy? Or how much of it is just related to low-margin, commodity-focused China business, which you've been moving away from over the past several years?

完美的。然後從地理角度來看，亞洲（日本除外）（主要是中國）在過去兩年中以美元計算下降了約 24%，而公司整體下降了 4%。中國的衰退有多少是由於中國廣泛的疲軟造成的？您的精益分銷策略佔了多少比例？或者其中有多少只是與低利潤、以大宗商品為重點的中國業務有關，而您在過去幾年中一直在放棄這些業務？

Yes. I think -- yes, I don't have the breakdown. But a majority of it is the exits that we talked about because if you recall, a lot of those exits were in the non-auto and industrial. So if you, add it all up and you do it year-on-year, then those exits are targeting that market, which is where the demand has been. So that's expected on the industrial and automotive.

是的。我想——是的，我沒有崩潰。但其中大部分是我們討論過的退出，因為如果你還記得的話，其中許多退出都是在非汽車和工業領域。因此，如果你將所有這些加起來並逐年進行，那麼這些退出就是針對該市場，也就是需求所在的市場。這在工業和汽車領域是預期的。

Actually, we've seen the share gains, obviously, on silicon carbide, I talked about in automotive. But in industrial -- in prior quarters, I've talked about LTSAs with 8 of the top 10 energy storage or renewable energy vendors. Most of them are in China. We've had tremendous growth in those markets over the last few years that we called out '22 to '23 even. So all of these are share gains. But yes, they are offset. And one is the general weakness that everybody sees with how big the market is for Semi's in China. But specifically for On Semi, it is the exits, which are today helping hold the margin where we are structurally.

事實上，我們顯然已經看到了我在汽車領域談到的碳化矽的份額成長。但在工業領域，在前幾個季度，我已經與排名前 10 的儲能或再生能源供應商中的 8 家討論過 LTSA。其中大部分在中國。過去幾年，我們在這些市場取得了巨大的成長，我們甚至稱之為「22 到 23」。所以所有這些都是份額收益。但是，是的，它們是抵消的。其中之一是每個人都看到中國半導體市場有多大的普遍弱點。但對安森美來說，正是退出，今天幫助我們維持了結構性的利潤率。

Our next question comes from Christopher Rolland with Susquehanna.

我們的下一個問題來自薩斯奎哈納的克里斯多福羅蘭。

I guess my first one is on the image sensor business, primarily -- if you could talk about kind of demand and sell-through there but also inventories and your plans on internalizing some of those wafers from foundry into GLOBFO as well.

我想我的第一個主題主要是關於圖像感測器業務——如果您能談談那裡的需求和銷售情況，還有庫存以及您將其中一些晶圓從代工廠內部化到 GLOBFO 的計劃。

Yes. So I think -- look, demand for -- we have a high market share in image sensors. So demand for image sensor overall demand follows the automotive. We do believe that inventory situation is getting better. I put that under the commentary I made about general automotive.

是的。所以我認為——看，需求——我們在影像感測器方面擁有很高的市場份額。因此影像感測器的需求總體跟隨汽車需求。我們確實相信庫存狀況正在好轉。我把它放在我對通用汽車的評論下面。

But the growth that we've seen specifically on the 8 megapixel is specific to a migration to higher-resolution cameras that we really talked about. Over the last 2 to 3 quarters, we've been calling it out. So that continues. That's a trend we can -- clearly see based on the growth of that business even in light of the light vehicle production numbers that are starting to come up. So from that perspective, it's clear.

但我們在 800 萬像素相機上看到的增長是特定於我們真正談論的向更高解析度相機的遷移。在過去的兩到三個季度裡，我們一直在呼籲這一點。就這樣繼續下去。這是我們可以根據該業務的成長清楚地看到的趨勢，即使是考慮到輕型汽車產量的開始上升。所以從這個角度來看，這是很清楚的。

We do have an effort to introduce new products coming out of the fab. It is not 100% internal. We do have foundry partners that we value in this business, and we will continue to work together internally and externally. But as you can think about it as a supply assurance rather than a shift in strategy to just go internal.

我們確實努力推出來自工廠的新產品。它不是 100% 內部的。我們確實擁有我們在該業務中重視的代工合作夥伴，我們將繼續在內部和外部合作。但你可以將其視為一種供應保證，而不是僅僅轉向內部的策略轉變。

Great. And also just a couple of housekeeping. Did you guys give lead times, utilizations and then cumulative LTSAs and/or next 12-month LTSAs?

偉大的。而且還只是一些家事服務。你們是否給出了交付週期、利用率以及累積 LTSA 和/或接下來 12 個月的 LTSA？

Yes. Chris, it's Thad. Let me get through that. So just starting in reverse order, the lifetime LTSA value is $15.7 billion over the next 12 months, the value of that is $4.7 billion. I think that's consistent with what you heard last quarter if you think about what rolled off in Q1. Lead times are down just slightly, roughly around 40 to 41 weeks. So not a big change on that side of things. And I did mention in the prepared remarks, utilization decreased slightly from 66% to 65%. We expect to be running in this range, plus or minus, for the remainder of the year until we start to see more of a market recovery. As we see the stabilization, we believe we can keep this utilization for the remainder of the year.

是的。克里斯，是泰德。讓我解決這個問題。因此，從相反的順序開始，LTSA 生命週期價值在未來 12 個月內為 157 億美元，即 47 億美元。如果你考慮一下第一季的情況，我認為這與你上季度聽到的情況是一致的。交貨時間略有縮短，約 40 至 41 週。所以這方面並沒有什麼大的改變。我在準備好的發言中確實提到，利用率從 66% 略有下降至 65%。我們預計今年剩餘時間將在這個範圍內運行，直到我們開始看到更多的市場復甦。隨著我們看到穩定的情況，我們相信我們可以在今年剩餘時間內保持這種利用率。

And Thad, since I have you, do you have SiC LTSAs as well?

Thad，既然我有你，你也有 SiC LTSA 嗎？

I don't have that.

我沒有那個。

Our next question comes from Joseph Moore with Morgan Stanley.

我們的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 the opportunity in hybrid cars. As you sort of see some of the demand shifting from battery power to hybrid, what's the opportunity for ON? Is it silicon carbide? Is it IGBT opportunity? Can you just talk to that?

我想知道您是否可以談談混合動力汽車的機會。當您看到一些需求從電池動力轉向混合動力時，ON 的機會是什麼？是碳化矽嗎？這是IGBT的機會嗎？你能談談嗎？

Yes. So the -- both the opportunity in, I would say, plug-in hybrid, parallel hybrid, or the non-BEV part of the electrification effort in mobility is both on IGBT. And some customers still are putting silicon carbide in there depending on the drivetrain. But the opportunity for us that I called out in prior quarters is about $350 worth of content for non-BEV. That's only in the powertrain. And then about $750 in a full BEV vehicle compared to $50 powertrain content in internal combustion. So those are kind of the ballpark numbers that we've talked about.

是的。因此，我想說，插電式混合動力、並聯混合動力或移動電氣化工作的非純電動車部分的機會都在 IGBT 上。一些客戶仍然根據傳動系統的不同在其中放置碳化矽。但我在前幾個季度指出的機會是價值約 350 美元的非 BEV 內容。這只是在動力系統中。一輛全電動汽車的價格約為 750 美元，而內燃機動力系統的價格為 50 美元。這些是我們討論過的大概數字。

Great. And then in terms of the pricing conversation, LTSA pricing, you said, is holding up. When you have new agreements, new customers, new designs, do you see -- is the pricing for that any different than what you've seen in the past, the way -- what pricing is embedded in your current model?

偉大的。然後就定價對話而言，您所說的 LTSA 定價是穩定的。當你有新協議、新客戶、新設計時，你是否看到——其定價與你過去看到的有什麼不同——你目前的模式中嵌入了哪些定價？

No. I mean we don't see -- on a product-by-product basis, there -- if we say the value of the product is what we price on, value doesn't change, whether it's design to design. Where you do see pricing movement is new technologies that we want to introduce, where the customer gets a benefit but also, we get a benefit, whether it's moving to a much smaller die given the efficiency of our new model. Those are a normal course of the business, where it is incremental margin for us, but you may see an ASP delta. But it's a different product. But that's the way the industry runs.

不，我的意思是，我們沒有看到——在逐個產品的基礎上——如果我們說產品的價值就是我們定價的基礎，那麼無論是設計還是設計，價值都不會改變。您確實看到定價變動的地方是我們想要引入的新技術，客戶從中受益，我們也從中受益，無論是考慮到我們新模型的效率是否轉向更小的晶片。這些是正常的業務流程，對我們來說是增量利潤，但您可能會看到平均售價增加。但這是不同的產品。但這就是這個行業的運作方式。

And Joe, it's Thad. Just remember, we walked away from that $475 million of highly volatile price-sensitive market. So I think in this situation, you probably see some pricing pressure on that. Obviously, we're not seeing a [beach]. We don't have that business today.

喬，是泰德。請記住，我們離開了價值 4.75 億美元的高度波動的價格敏感市場。所以我認為在這種情況下，你可能會看到一些定價壓力。顯然，我們沒有看到[海灘]。我們今天沒有這個生意。

Our next question comes from Joshua Buchalter with TD Cowen.

我們的下一個問題來自 TD Cowen 的 Joshua Buchalter。

I apologize for beating the silicon carbide horse. But I understand there's a lot of volatility in that market, and you're reluctant to give a granular market forecast right now. But maybe we compare it to a few quarters ago, has the increased volatility been, would you say, because of a meaningful change in the adoption curve across the EV industry at a broad base of customers? Or is it because of pushouts or unit dynamics because of the early adopters that's driving the lower and more volatile forecast?

我為擊敗碳化矽馬而道歉。但我知道該市場波動很大，而且您現在不願意給出詳細的市場預測。但也許我們將其與幾個季度前進行比較，你會說，波動性的增加是否是因為整個電動汽車行業在廣大客戶群體中的採用曲線發生了有意義的變化？還是因為早期採用者的推出或單位動態導致預測較低且波動較大？

So I can't call out a specific customer. I think everybody can read what specific customers talk about and what their specific outlooks are. But what I would tell you is it's not a pushout, meaning every design that we thought would go to production when we were sitting here in 2023 is still going to production. So it's not a pushout of models. OEMs are not sacrificing the long-term view that they have on BEVs just because of the short-term volatility.

所以我無法呼叫特定的客戶。我認為每個人都可以閱讀特定客戶的談論內容以及他們的具體觀點。但我要告訴你的是，這並不是一次淘汰，這意味著我們在 2023 年坐在這裡時認為會投入生產的每項設計仍然會投入生產。所以這不是模型的推出。原始設備製造商不會僅僅因為短期波動而犧牲他們對純電動車的長期看法。

So we are seeing the design qualify, design ramp with a plan to ramp in -- starting in the second half of this year. What I called out Europe already. I talked about China as well. So it's not a pushout.

因此，我們看到設計合格，設計斜坡併計劃從今年下半年開始投入使用。我已經把歐洲稱為歐洲了。我也談到了中國。所以這不是推出。

What I would say the TAM is -- my comment about the TAM is what those volumes are. So the volumes that were planned last year are different than they are planned this year given the environment, but the same models planned are still going to market. So it's a very important distinction because one is the longevity and the strategy of the OEMs, and the other one is just reacting to a macro environment that we're in today.

我想說的 TAM 是——我對 TAM 的評論是這些卷是什麼。因此，考慮到環境，去年計劃的銷量與今年計劃的銷量有所不同，但計劃中的相同型號仍將投放市場。所以這是一個非常重要的區別，因為一個是原始設備製造商的壽命和策略，另一個是對我們今天所處的宏觀環境的反應。

That's helpful. And maybe for Thad. You called out that over the last 12 months, you've returned over 100% of free cash flow to investors, which is more than your formal policy of 50%. And was this because of some dislocation in the market you saw, and we should expect it to trend back towards 50%? Or should we expect it to sort of remain elevated here in particular as you go through the period of peak capital spending?

這很有幫助。也許是為了泰德。您指出，在過去 12 個月中，您已將超過 100% 的自由現金流返還給投資者，這超過了您正式政策的 50%。這是因為您看到的市場出現一些混亂嗎？或者我們應該期望它在這裡保持較高的水平，特別是當你經歷資本支出高峰期時？

Yes. If you look back over the last 12 months, in Q4, we bought back $300 million. That was above our target there. And that was the dislocation, right? We've said our policy longer term is 50% over the long term, but we will take advantage and be opportunistic where it makes sense.

是的。如果你回顧過去 12 個月，在第四季度，我們回購了 3 億美元。這超出了我們的目標。這就是錯位，對吧？我們已經說過，我們的長期政策是 50%，但我們會利用這一優勢，並在有意義的情況下投機取巧。

Our next question comes from Quinn Bolton with Needham.

我們的下一個問題來自奎因·博爾頓和李約瑟。

I know you're not calling for a recovery yet in the second half of the market. But Hassane, your comments on the battery electric vehicle ramps in the second half of the year certainly imply that perhaps silicon carbide sees a better second half. So I'm wondering what's the offset that would keep revenue sort of more stable in the second half if I'm reading your comments about the battery electric vehicle ramps in the second half correctly.

我知道您還沒有呼籲下半年市場復甦。但是哈桑，您對下半年電動車銷售成長的評論肯定意味著碳化矽下半年可能會更好。因此，我想知道如果我正確地閱讀了您對下半年電池電動車銷量成長的評論，那麼下半年收入保持更加穩定的抵消額是多少。

Yes. If you look at the -- and again, we don't guide -- we guide only 1 quarter at a time. But the second half, silicon carbide is higher than the first half of silicon carbide. That's absolutely correct, and that's because of the ramps that I called out.

是的。如果你看一下——再說一次，我們不提供指導——我們一次只指導一個季度。但下半年碳化矽價格高於上半年碳化矽。這是絕對正確的，那是因為我喊出了坡道。

When I talk about stabilization, we go back to normalization. And you can think about it as normal supply and demand. Where demand is, that's what's going to be the offset or not for the second half. So it's too early to call is demand going to recover or not. But there's definitely demand increase on silicon carbide specifically that we can pinpoint to.

當我談論穩定時，我們回到正常化。你可以將其視為正常的供給和需求。需求在哪裡，就決定了下半年是否會被抵銷。因此，現在判斷需求是否會恢復還為時過早。但我們可以明確指出，碳化矽的需求肯定會增加。

Got it. Makes sense. And then just -- I think you touched on it quickly in the prepared comments, but can you just give us the progress update on the 200-millimeter substrates and manufacturing needs to look into next year?

知道了。說得通。然後 - 我認為您在準備好的評論中很快就提到了這一點，但是您能否向我們介紹明年 200 毫米基板和製造需求的最新進展？

Yes. Still on track. What we talked about is qualifying '24 ramp in '25, and we're still on track to exactly that timeline. So no changes there, which is obviously a positive development of our silicon carbide efforts.

是的。仍在軌道上。我們談論的是 25 年的排位賽 24 坡道，我們仍在按計劃完成該時間表。所以沒有任何變化，這顯然是我們碳化矽努力的積極發展。

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

女士們先生們，今天演講的問答部分到此結束。現在我想將電話轉回給總裁兼執行長 Hassane El-Khoury，讓其發表結束語。

Thanks to the tremendous effort of our global teams. We've transformed the company, improved our resiliency, and adapted to changing market conditions to deliver sustainable financial results. We remain dedicated to our customers, our financial commitments, and our strategy of enabling the sustainable ecosystem. Thanks to everyone on the call for joining and supporting On Semi.

感謝我們全球團隊的巨大努力。我們對公司進行了轉型，提高了彈性，並適應不斷變化的市場條件，以實現可持續的財務表現。我們仍然致力於我們的客戶、我們的財務承諾以及我們實現永續生態系統的策略。感謝大家加入並支持 On Semi。

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。