安森美 (ON) 2024 Q3 法說會逐字稿

Good day. And thank you for standing by. Welcome to the On semi third quarter 2024 earnings conference call. (Operator Instructions) Please be advised that today's conference is being recorded.

再會。感謝您的支持。歡迎參加 On semi 2024 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。

I would now like to hand the call over to Parag Agarwal, Vice President of Investor relations and corporate development. Please go ahead.

我現在想將電話轉交給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 Tanya. Good morning and thank you for joining our third quarter, 2024 quarterly results conference call.

謝謝你坦妮亞。早安，感謝您參加我們的 2024 年第三季業績電話會議。

I'm joined today by Hassane El-Khoury, our President and CEO and Thad Trent. Our CFO this call is being webcast on the installation section of our website at www.on semi dotcom.

今天，我們的總裁兼執行長 Hassane El-Khoury 和 Thad Trent 也加入了我的行列。我們的 CFO 此次電話會議正在我們網站 www.on semi dotcom 的安裝部分進行網路直播。

A replay of this webcast along with our 2024 3rd quarter earnings release will be available on our website approximately one hour following this conference call and the recorded webcast will be available for approximately 30 days following this conference call.

在本次電話會議後約一小時，我們將在我們的網站上重播本次網路廣播以及我們的 2024 年第三季收益發布，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。

Additional information is posted on the investor relations section of our website our earnings release and this presentation includes certain non-GAAP financial measures, the constellation of this non-GAAP financial measures to the most directly comparable GAAP financial measures. And the 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.

更多資訊發佈在我們網站的投資者關係部分，我們的收益發布和本簡報包括某些非公認會計原則財務指標，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財務指標的組合。關於使用非公認會計準則財務指標時的某些限制的討論包含在我們的收益發布中，該收益發佈單獨發佈在我們網站的投資者關係部分。

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

在本次電話會議期間，我們將對未來事件或公司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 events or results to differ materially from projections.

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

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 third quarter of 2024 our estimate or other forward-looking statements might change and the company assumes no obligation to update forward-looking statements to reflect actual results, change assumptions or other events that may occur except as required by law.

我們最新的表格、10-K 表 10 Q 以及向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有重大差異的因素。在我們2024 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，公司不承擔更新前瞻性陳述以反映實際結果、假設變化或可能發生的其他事件的義務，除非另有要求。

Now, let me turn it over to Hassan, Hassane?

現在，讓我把它交給哈桑，哈桑？

Thank you, Barag, good morning and thanks to everyone for joining us on the call. Our third quarter results once again demonstrated the structural changes we have made to the business with revenue gross margin and earnings per share all above the midpoint of our guidance with a sharp focus on execution and operational excellence we have delivered on our commitments amid continued softness in the market.

謝謝巴拉格，早安，謝謝大家加入我們的電話會議。我們的第三季業績再次證明了我們對業務所做的結構性變化，收入毛利率和每股收益均高於我們指導的中點，並專注於執行和卓越運營，我們在經濟持續疲軟的情況下兌現了我們的承諾。

Over the last several quarters, we've talked about an L shaped recovery and as expected, the demand environment remains muted with ongoing inventory digestion and slow end demand.

在過去的幾個季度中，我們一直在談論 L 型復甦，正如預期的那樣，由於庫存持續消化和終端需求緩慢，需求環境仍然低迷。

Our outlook for all markets remains unchanged as uncertainty persists among our customers.

由於我們的客戶仍然存在不確定性，我們對所有市場的前景保持不變。

Automotive continues to be soft with slowing ev sell through industrial which slowed first has not broadly recovered except for pockets and utility scale solar and aerospace and defense.

汽車產業持續疲軟，工業電動車銷售放緩，首先放緩，但除小規模和公用事業規模的太陽能、航空航太和國防領域外，尚未普遍復甦。

Regionally, China and Japan are recovering with strength and suvs but North America and Europe remain soft in both automotive and industrial.

從地區來看，中國和日本的實力和SUV正在復蘇，但北美和歐洲在汽車和工業方面仍然疲軟。

Despite the current slowdown, we are confident in our strategy, we are in the markets that matter, the fastest growing segments of the automotive industrial and a data center that will continue to outpace the growth of the semiconductor market overall. And we are committed to delivering value to our customers through product and system level innovation.

儘管目前經濟放緩，但我們對我們的策略充滿信心，我們處於重要的市場、汽車工業成長最快的領域以及將繼續超過半導體市場整體成長的資料中心。我們致力於透過產品和系統級創新為客戶提供價值。

The breadth and performance of our portfolio continues to be a differentiator enabling us to optimize energy efficiency for our customers applications. As a one stop source for intelligent power and sensing solutions.

我們產品組合的廣度和性能仍然是一個優勢，使我們能夠優化客戶應用的能源效率。作為智慧電源和感測解決方案的一站式來源。

In Q3, our silicon carbide revenue increased sequentially driven by utility scale solar and share gains in China about outside of China. Although programs went into production, the sell through is expected to be below our forecast for the second half of this year.

第三季度，我們的碳化矽收入在公用事業規模太陽能和中國境外份額成長的推動下持續成長。儘管節目已投入製作，但今年下半年的銷售量預計將低於我們的預測。

We will continue to cautiously monitor and demand to avoid building inventory on our customer's shelves that would impact 2025 for the full year 2024. We don't expect meaningful market growth as third party reports would suggest we expect our silicon carbide revenue to be in the low to mid single digit growth over 2023.

我們將繼續謹慎監控和需求，以避免在客戶貨架上建立庫存，這將影響2025 年和2024 年全年。收入將在2023 年將出現低至中個位數成長。

On the technology development front, we have qualified our 200 millimeter M three silicon carbide ahead of schedule. Our 8 inch wafers are running in the fab at 350 micron thickness and yields are equivalent to those on our 6 inch wafers. We are sampling from both internal and external sources for substrates.

在技​​術開發方面，我們提前對200毫米M三碳化矽進行了鑑定。我們的 8 吋晶圓在晶圓廠中運行，厚度為 350 微米，產量與我們的 6 吋晶圓相當。我們從內部和外部來源取樣以獲取基質。

We remain very deliberate with our silicon carbide strategy. We are focused on vertically integrating up where our advanced packaging solutions deliver system optimization for our customers.

我們對碳化矽策略仍然非常謹慎。我們專注於垂直整合，我們的先進包裝解決方案為客戶提供系統最佳化。

We will participate where we are differentiated and where our margin levels match the value we provide to our customers.

我們將參與我們具有差異化以及我們的利潤水平與我們為客戶提供的價值相匹配的領域。

In automotive, China is driving the pace of innovation and leading the transition to 800 volt architectures where silicon carbide is critical to enabling faster charging, extended range and better energy efficiency in vehicles. Our 1,200 volt M three E silicon carbide is well positioned to be used in China's extended range electric vehicles as they transition to 800 volt architectures where a small internal combustion engine can recharge the battery.

在汽車領域，中國正在推動創新步伐，引領 800 伏特架構的過渡，其中碳化矽對於實現車輛更快充電、延長續航里程和提高能源效率至關重要。我們的 1,200 伏特 M 3 E 碳化矽非常適合用於中國的增程式電動車，因為它們正在向 800 伏特架構過渡，其中小型內燃機可以為電池充電。

We expect to exit the year with approximately 50% of China's best silicon carbide market share based on our design win activity. As we continue to broaden our penetration with the top OEMs in industrial, we lead the market with our silicon carbide portfolio. Our industrial sick customer count over the last four quarters increased 17% as compared to the previous four quarters.

根據我們的設計獲勝活動，我們預計今年將佔據中國最佳碳化矽市場份額的約 50%。隨著我們不斷擴大與工業頂級原始設備製造商的滲透，我們憑藉碳化矽產品組合引領市場。過去四個季度我們的工業病假客戶數量比前四個季度增加了 17%。

Beyond Silicon Carbide, we have been investing in the performance of our power portfolio to address emerging trends in renewable energy.

除了碳化矽之外，我們也一直投資於電力產品組合的性能，以應對再生能源的新興趨勢。

Global solar installations are expected to reach 552 gigawatts in 2024 versus 433 gigawatts in 2023, a 27% year on year increase. And global energy storage system installation are expected to reach 178 gigawatt with a year over year increase of 69%.

預計2024年全球太陽能裝置容量將達到552吉瓦，而2023年將達433吉瓦，年增27%。全球儲能係統裝置容量預計將達到178吉瓦，年增69%。

We continue to gain momentum in these markets based on the leading performance and power density realized using our high density F five BP, IGBT and hybrids and IGBT modules. We announced in the quarter.

基於使用我們的高密度 F 5 BP、IGBT 和混合動力以及 IGBT 模組實現的領先性能和功率密度，我們繼續在這些市場中獲得動力。我們在本季宣布了這一消息。

We are designed in with the four of the top five utility scale manufacturers with our latest generation of field stop seven modules delivering application optimized solutions that increase power density and efficiency with voltages ranging from 650 to 1,200 volts.

我們與排名前五的公用事業規模製造商中的四家合作，設計了最新一代的現場停止七模組，提供應用優化的解決方案，提高功率密度和效率，電壓範圍為 650 至 1,200 伏特。

Our intelligence sensing business grew 11% quarter over quarter with strength in Adas and industrial imaging across a range of applications such as machine vision robotics and scanning.

憑藉在機器視覺機器人和掃描等一系列應用中的 ADAS 和工業成像領域的優勢，我們的智慧感測業務環比成長 11%。

We are proliferating our portfolio to access new industrial applications enabling our customers to select and optimize feature set for their needs.

我們正在豐富我們的產品組合，以獲取新的工業應用，使我們的客戶能夠根據自己的需求選擇和優化功能集。

Over the last year, we have released 10 new image sensors across four product families and we are getting traction and applications that include medical imaging, biometrics, autonomous mobile robots and automated guided vehicles to name a few. Our 5 and 8 megapixel hyperx LP image sensors, for example, are an excellent, an excellent choice for entry level four K video surveillance camera with industry leading low power, low light sensitivity and wake on motion.

去年，我們在四個產品系列中發布了 10 款新影像感測器，我們正在獲得關注和應用，其中包括醫學成像、生物識別、自主移動機器人和自動導引車等。例如，我們的 5 和 800 萬像素 hyperx LP 影像感測器是入門級 4 K 視訊監控攝影機的絕佳選擇，具有業界領先的低功耗、低光靈敏度和運動喚醒功能。

In 2025 we plan to introduce a new family or image sensors to further broaden our offering.

2025 年，我們計劃推出新的系列或影像感測器，以進一步擴大我們的產品範圍。

We've also received positive feedback from our customers and channel partners on this weird technology we acquired last quarter. This differentiated technology enables us to expand our industrial offering into agriculture, medical imaging inspection and aerospace and defense applications.

我們也收到了客戶和通路合作夥伴對我們上季收購的這項奇怪技術的正面回饋。這種差異化技術使我們能夠將我們的工業產品擴展到農業、醫學影像檢查以及航空航太和國防應用領域。

In data centers, we have a tremendous opportunity as we expect the power delivery market for enterprise cloud and A I servers to double from $2.2 billion in 2024 to $4.4 billion by 2028. As power requirements in racks continue to scale from 40 kilowatts to 120 kilowatts. We expect our addressable content per rack to continue to increase.

在資料中心，我們擁有巨大的機會，因為我們預計企業雲端和人工智慧伺服器的電力傳輸市場將從2024 年的22 億美元翻一番，到2028 年達到44 億美元。需求不斷從40 千瓦擴大到120 千瓦。我們預計每個機架的可尋址內容將繼續增加。

We have invested in this space through the downturn, delivering a silicon and silicon carbide portfolio capable of meeting the ever increasing demands of AI data centers across the entire power trees.

在經濟低迷時期，我們在這一領域進行了投資，提供了矽和碳化矽產品組合，能夠滿足整個電力樹中人工智慧資料中心不斷增長的需求。

We have released multi face controllers which combined with our industry leading smart power stages to deliver full vcore solutions to power NVIDIA and arm based.

我們發布了多面控制器，與業界領先的智慧功率級相結合，提供完整的 vcore 解決方案，為 NVIDIA 和基於 ARM 的處理器提供動力。

We continue to gain traction with our T 10 power trench mos FS ifuse point of load and VCORE products. Securing design wins with three of the top four Hypers SCRS in North America which are expected to contribute to revenue in 2025.

我們的 T 10 Power Trench MOS FS ifuse 負載點和 VCORE 產品繼續獲得關注。確保北美四大 Hypers SCRS 中的三項獲得設計勝利，預計將在 2025 年為收入做出貢獻。

We have also been investing to broaden our portfolio of analog mixed signal products and we look forward to electronica next month when we plan to share more detail about our new portfolio.

我們也一直在投資擴大我們的模擬混合訊號產品組合，我們期待下個月的電子展，屆時我們計劃分享有關我們新產品組合的更多細節。

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

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。

Thanks for time. Our team's focus on execution and operational excellence in the face of ongoing market challenges delivered another quarter for revenue gross margin and earnings per share were above the midpoint of our guidance. Q3 free cash flow increased 41% sequentially as we achieved our CapEx target ahead of schedule with our capacity expansion largely behind us.

感謝您抽出時間。面對持續的市場挑戰，我們的團隊專注於執行和卓越運營，使得另一個季度的收入毛利率和每股收益高於我們指導的中點。第三季自由現金流較上季成長 41%，因為我們提前實現了資本支出目標，而產能擴張已基本落後。

The consistency of our results demonstrate the resilience we have built in our business model. We remain focused on high growth mega trends, optimizing our manufacturing footprint and we're investing to lead the market where we can add value for our customers.

我們結果的一致性證明了我們在業務模式中建立的彈性。我們仍然專注於高成長的大趨勢，優化我們的製造足跡，我們正在投資以引領市場，為我們的客戶增加價值。

The structural improvements continue to deliver better results than the company was able to achieve in prior downturns. If we dive into revenue for the third quarter, we saw broad based softness offset by silicon carbide growth which resulted in a 2% sequential increase to $1.76 billion. As Hassan mentioned, inventory digestion persists across our business groups in automotive and industrial, which accounted for 79% of our revenue.

結構改進繼續帶來比公司在之前的經濟低迷時期取得的更好的業績。如果我們深入研究第三季的收入，我們會看到碳化矽成長抵消了廣泛的疲軟，導致季增 2% 至 17.6 億美元。正如哈桑所提到的，我們汽車和工業業務部門持續消化庫存，這兩個部門占我們收入的 79%。

Automotive revenue was $951 million which increased 5% sequentially driven by silicon carbide and a image sensors. We continue to see softness and in demand but content gains driven by silicon carbide in China are driving our growth in this market as compared to the third quarter of 2023 automotive revenue was down 18% revenue for industrial was $440 million, down 6% sequentially and 29% year over year.

汽車產業收入為 9.51 億美元，在碳化矽和影像感測器的推動下環比增長 5%。我們繼續看到疲軟和需求旺盛，但中國碳化矽推動的內容成長正在推動我們在該市場的成長，與2023 年第三季相比，汽車收入下降了18%，工業收入為4.4 億美元，環比下降6%，年增 29%。

We saw pockets of growth in utility scale solar and our aerospace and defense business. While the traditional industrial remained relatively stable. In the third quarter, we have recently received trusted foundry accreditation at our Eastville fab which will allow us to expand our aerospace and defense business.

我們看到公用事業規模太陽能以及航空航太和國防業務出現了一些成長。而傳統工業則保持相對穩定。在第三季度，我們的伊斯特維爾工廠最近獲得了值得信賴的代工認證，這將使我們能夠擴大我們的航空航太和國防業務。

Looking at the split between the business units revenue for the Power Solutions group or PSG was $829 million. A decrease of 1% quarter over quarter and 23% year over year. Revenue for the analog and mixed signal group or AM G was $654 million an increase of 1% quarter quarter and a decrease of 16% year over year revenue for the intelligent intelligence sensing group or ISG was $279 million and 11 percent increase quarter over quarter driven by eight ISG revenue decreased 15% over the same quarter last year.

從電源解決方案集團（PSG）的業務部門收入分配來看，其收入為 8.29 億美元。環比下降 1%，年減 23%。類比和混合訊號部門（AM G）的營收為 6.54 億美元，季度環比成長 1%，年減 16%；智慧感測部門（ISG）的營收為 2.79 億美元，季增 11%八月份ISG營收比去年同季下降15%。

GAAP gross margin was 45.4% and non-GAAP gross margin was 45.5% compared to 45.3% in Q2 and 47.3% in the quarter a year ago, we have maintained our gross margin a bit above the mid 40% and improved it by 20 basis points over Q2 with utilization remaining flat at 65%.

GAAP 毛利率為 45.4%，非 GAAP 毛利率為 45.5%，而第二季度為 45.3%，去年同期為 47.3%，我們的毛利率保持在 40% 略高於中間水平，並提高了 20 個基點與第二季相比，利用率維持在65% 不變。

As a reminder in prior downturns, our gross margin had been around 30% at these utilization levels as we continue to drive efficiencies across the company through our fab right strategies. We are well positioned to benefit from gross margin expansion once the market begins to recover.

提醒一下，在先前的經濟低迷時期，我們的毛利率在這些利用率水準上一直在 30% 左右，因為我們繼續透過晶圓廠權策略來提高整個公司的效率。一旦市場開始復甦，我們就可以從毛利率的擴張中受益。

As I mentioned earlier, our investments in capacity expansion are largely behind us. We now expect our capital intensity target to be in the mid-single digit percentage range for 2025 and beyond as compared to a previous target of 11%.

正如我之前提到的，我們在產能擴張方面的投資基本上已經落後了。我們現在預計 2025 年及以後的資本密集度目標將在中個位數百分比範圍內，而先前的目標為 11%。

This is the result of the excellent work our manufacturing teams have done to improve our efficiencies across our network. This new CapEx target includes the brownfield investments in the Czech Republic. We anticipate making over a multiyear period lowering. Our capital intensity will increase free cash flow margin towards our targeted 25% to 30%.

這是我們的製造團隊為提高整個網路的效率所做的出色工作的結果。這項新的資本支出目標包括捷克共和國的棕地投資。我們預計將在多年內降低。我們的資本密集度將使自由現金流利潤率提高到 25% 至 30% 的目標。

We also remain committed to our long-term target of returning 50% of free cash flow to shareholders.

我們也持續致力於實現將 50% 的自由現金流返還給股東的長期目標。

Over the last 12 months, we've returned 75% of free cash flow with $200 million in share buybacks in the third quarter. Since initiating our $3 billion share repurchase program in February of 2023 we have returned just over $1 billion to our shareholders.

在過去 12 個月中，我們在第三季透過 2 億美元的股票回購返還了 75% 的自由現金流。自 2023 年 2 月啟動 30 億美元的股票回購計畫以來，我們已向股東返還略多於 10 億美元的資金。

Now let me give you some, give you some numbers for your models. GAAP operating expenses for the third quarter were $354 million as compared to $344 million in the third quarter of 2023.

現在讓我給你一些，給你一些模型的數字。第三季 GAAP 營運費用為 3.54 億美元，而 2023 年第三季為 3.44 億美元。

Non-GAAP operating expenses were $304 million compared to $322 million. In the quarter a year ago, non-GAAP operating expenses were lower than the midpoint of our guidance due to active cost control and lower variable compensation.

非 GAAP 營運支出為 3.04 億美元，去年同期為 3.22 億美元。一年前的季度，由於積極的成本控制和較低的可變薪酬，非公認會計準則營運費用低於我們指導的中點。

GAAP operating margin for the quarter was 25.3% and non-GAAP operating margin was 28.2%.

本季 GAAP 營運利潤率為 25.3%，非 GAAP 營運利潤率為 28.2%。

Our GAAP tax rate was 11.5% and non-GAAP tax rate was 16% diluted. GAAP earnings per share for the second quarter was $0.93 as compared to a $1.29 in the quarter a year ago. Non-GAAP earnings per share was$0.99 as compared to $1.39 in Q3 of 2023 and GAAP diluted share count was 432 million shares. And our non-GAAP diluted share count was 428 million shares.

我們的 GAAP 稅率為 11.5%，非 GAAP 稀釋稅率為 16%。第二季 GAAP 每股收益為 0.93 美元，去年同期為 1.29 美元。非 GAAP 每股盈餘為 0.99 美元，而 2023 年第三季為 1.39 美元，GAAP 稀釋後股數為 4.32 億股。我們的非 GAAP 稀釋後股票數量為 4.28 億股。

Turning to the balance sheet cash and short term investments was $2.8 billion with total liquidity of $3.9 billion including $1.1 billion undrawn on our revolver.

資產負債表上的現金和短期投資為 28 億美元，流動性總額為 39 億美元，其中左輪手槍未動用 11 億美元。

Cash from operations was $466 million and free cash flow increased 41% sequentially to $294 million representing 17% of revenue. Capital expenditures during Q3 were $172 million which equates to a capital intensity of 10% inventory increased by $18 million sequentially and decreased by one day to 213 days.

營運現金為 4.66 億美元，自由現金流環比成長 41% 至 2.94 億美元，佔營收的 17%。第三季的資本支出為 1.72 億美元，相當於 10% 庫存的資本強度，比上一季增加了 1,800 萬美元，減少了 1 天，達到 213 天。

This includes 100 days of bridge inventory to support fab transitions and the silicon carbide ramp excluding these strategic bills. Our base inventory decreased sequentially by $32 million or four days to 113 days, which continues to be within our target range of 100 to 120 days.

這包括 100 天的橋樑庫存，以支援晶圓廠轉型和碳化矽產能提升（不包括這些戰略費用）。我們的基礎庫存環比減少了 3,200 萬美元或四天，至 113 天，仍然在我們 100 至 120 天的目標範圍內。

Our mass market customer count grew 15% year over year in the third quarter. As we have been increasing inventory in the distribution channel to support this growth. Distribution weeks of inventory were 9.7 versus 8.9 weeks in Q2. And we expect distribution inventory to increase to 10 weeks plus or minus in Q4 as we continue to see this long tail of high margin customers.

第三季我們的大眾市場客戶數量年增 15%。由於我們一直在增加分銷渠道的庫存以支持這種增長。庫存配送週數為 9.7 週，而第二季為 8.9 週。我們預計第四季度的分銷庫存將增加到 10 週左右，因為我們繼續看到高利潤客戶的長尾。

Looking forward, let me give you some key elements of our non-GAAP guidance for the fourth quarter. Given the current macro environment and our demand visibility, we anticipate Q4 revenue will be in the range of 1.71 billion to $1.81 billion.

展望未來，讓我向您介紹我們第四季非公認會計準則指引的一些關鍵要素。考慮到當前的宏觀環境和我們的需求可見性，我們預計第四季營收將在 17.1 億至 18.1 億美元之間。

We expect non-GAAP gross margin to be between 44% and 46% with flat to slightly down utilization. This includes share based compensation of $7 million. We expect non-GAAP offering expenses of $300 million to $315 million including share based compensation of $31 million.

我們預計非 GAAP 毛利率將在 44% 至 46% 之間，利用率持平或略有下降。其中包括 700 萬美元的股權激勵。我們預計非 GAAP 發行費用為 3 億至 3.15 億美元，其中包括 3,100 萬美元的股權激勵。

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 is expected to be approximately 427 million shares.

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。我們預計我們的非 GAAP 稅率約為 16%，我們的非 GAAP 稀釋後股數預計約為 4.27 億股。

This results in non-GAAP earnings per share to be in the range of $0.92 to $1.04. We expect capital expenditures in the range of $130 million to $170 million. And as a reminder, today's press release contains a table detailing our GAAP and Non-GAAP guidance. While we are cautious about the near term macro, we remain committed to our long term strategy.

這導致非 GAAP 每股收益在 0.92 美元至 1.04 美元之間。我們預計資本支出在 1.3 億至 1.7 億美元之間。提醒一下，今天的新聞稿包含一個表格，詳細介紹了我們的 GAAP 和非 GAAP 指南。雖然我們對近期宏觀經濟持謹慎態度，但我們仍然致力於我們的長期策略。

We've remained disciplined and continue to invest for the future both in new generations of intelligent power and sensing products and to position the company to scale efficiently for a market recovery.

我們始終保持紀律，並繼續為未來投資新一代智慧電源和感測產品，並使公司能夠有效擴展規模以實現市場復甦。

To wrap up. We're investing in the fastest growing segments of the industry as the world shifts towards renewable energy electrification, automation and AI. The breadth and performance of our portfolio addressed the growing need for energy efficiency and the proliferation of sensor driven ecosystems.

總結一下。隨著世界轉向再生能源電氣化、自動化和人工智慧，我們正在投資該行業成長最快的領域。我們產品組合的廣度和性能滿足了對能源效率日益增長的需求以及感測器驅動的生態系統的擴散。

Our employees continue to be the foundation of the resiliency of on semi and I want to acknowledge the hard work of our train of our teams across the globe as we remain committed to unlocking value.

我們的員工仍然是 on semi 彈性的基礎，我要感謝我們全球團隊的辛勤工作，因為我們仍然致力於釋放價值。

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

就這樣。我想將電話轉回給 Tanya 以開始問答電話。

(Operator Instructions) Ross Seymore, Deutsche Bank.

（操作員指令）Ross Seymore，德意志銀行。

Hi, guys. Thanks for, let me ask a question. I guess the first one is on the silicon carbide business. I know it's not the hugest part of your total revenues, but strategically, it's incredibly important.

嗨，大家好。謝謝你，我想問一個問題。我想第一個是碳化矽業務。我知道這不是您總收入中最大的一部分，但從戰略上講，它非常重要。

When Hassan, you talked about that being up low to mid single digits. Do you believe that there is just evidence of a cyclical weakness or something started to secularly change as people have gotten a little more concerned on not only the pace of growth but competition coming in and commoditization and those sorts of dynamics.

當哈桑時，你談到了低至中個位數。您是否認為有證據表明週期性疲軟或某些事情開始發生長期變化，因為人們不僅更加關注成長速度，還更加關注競爭的到來、商品化以及諸如此類的動態。

Yeah. Right. I we we do still believe it's cyclical. Therefore, that's why I made the comment that the long term trend for electrification and ev in general has not changed. And very important to note the designs or the models that we expected to ramp did go into production, they just didn't ramp to the level that we expected, which says that it's a short term demand, but back to the lumpiness of EV adoption and not a change in strategy or a mega trend type. Otherwise, you know, those models would have been canceled or or not even launched.

是的。正確的。我仍然相信它是周期性的。因此，這就是為什麼我說電氣化和電動車的長期趨勢總體上沒有改變。非常重要的是要注意我們預期的設計或模型確實投入了生產，它們只是沒有達到我們預期的水平，這表明這是短期需求，但又回到了電動車採用的混亂狀態而不是策略的改變或大趨勢類型的改變。否則，你知道，這些模型將被取消，甚至不會推出。

So customers did launch the sell through as we expected and you saw during the quarter is not coming as expected from the O Ems. And therefore, we're cautiously monitoring the Q4 for that, but nothing changes in our long term, nothing changed in the strategic importance of sick and the importance of place in evs as EVs in China followed by us and Europe will continue to to be adopted.

因此，客戶確實按照我們的預期啟動了銷售，並且您在本季看到 O Ems 的銷售情況並未達到預期。因此，我們正在謹慎地關注第四季度的情況，但從長遠來看，沒有任何變化，病態的戰略重要性以及電動車的地位的重要性沒有變化，因為中國和歐洲的電動車將繼續保持領先地位。

Thanks for that. And I guess for my follow up one for that on the gross margin side of things has anything changed in your ability to hold the 45% obviously in your quarter and guide it didn't. But as you look forward, you said utilization is going to be flat to down.

謝謝你。我想在我的後續行動中，毛利率方面的事情發生了變化，你在本季度保持 45% 的能力明顯發生了變化，而指導卻沒有變化。但展望未來，您表示利用率將持平甚至下降。

On one hand, you also talked about demand continuing to be weak, but the CapEx is also coming down. So lots of moving parts, it seems is the net conclusion, anything different than what you've said before on both the 45% floor and the 50% peak.

一方面，您也談到需求持續疲軟，但資本支出也在下降。因此，最終的結論似乎是有很多變動的部分，與您之前所說的 45% 下限和 50% 峰值有所不同。

No, I think if you look at where our utilization is today, you know, it's 65% plus or minus, you know, that's, that's where historically we've been at a low point. And holding that mid 40% margin is, has been kind of a major initiative for us as we look forward. You know, you, you obviously get some mix in, in Q4, which why our guidance is, is slightly lower. But no, as we look forward, you know, we're optimizing that manufacturing footprint, we're focused on Fabri we're continuing to take cost out. So, you know, at these levels we can hold.

不，我想如果你看看我們今天的利用率，你知道，它是 65% 左右，你知道，這就是我們歷史上一直處於低點的地方。展望未來，維持 40% 的中間利潤率對我們來說是一項重大舉措。您知道，您顯然在第四季度進行了一些混合，這就是為什麼我們的指導略低。但不，正如我們展望的那樣，你知道，我們正在優化製造足跡，我們專注於 Fabri，我們將繼續降低成本。所以，你知道，我們可以保持在這些水平。

Vivek Arya, Bank of America Securities.

Vivek Arya，美國銀行證券公司。

Thanks for my question. My question is if we look forward, Q1 is when you tend to have some of these pricing discussions with their customers. And I imagine at some point right, some of the benefits of long term supply agreements tail off. So as I, I'm curious, what's kind of your early preview on how these pricing discussions will take place just how we should think about Q1 seasonality. Given all the comments you made about the macro environment.

謝謝我的問題。我的問題是，如果我們展望未來，第一季是您傾向於與客戶進行一些定價討論的時候。我想在某個時候，長期供應協議的一些好處會逐漸消失。因此，作為我，我很好奇，您對這些定價討論將如何進行的早期預覽是什麼，以及我們應該如何考慮第一季的季節性。鑑於您對宏觀環境的所有評論。

Yeah, look, we don't, we don't guide two quarters out. But let me give you kind of our, our strategy and how we approach this because first off the industry is not going back to in my view, A Q1 kind of cliff negotiations happens throughout ramps happen, you know, any quarter and new design wins, which is where you set pricing happened during any quarter.

是的，聽著，我們不，我們不引導兩個季度出去。但讓我給你介紹一下我們的策略以及我們如何解決這個問題，因為在我看來，首先該行業不會再回到過去，第一季度的懸崖談判會在整個斜坡過程中發生，你知道，任何季度和新設計都會獲勝，您可以在其中設定任何季度發生的定價。

So I don't believe A Q1 as you have always seen it historically is kind of a pricing cliff. Having said that our approach and we've been very consistent with that since we since I started four years ago is we're going to price on value. We're not going to chase after the market. We actually went, walked away from a lot of that business.

因此，我不相信 A Q1 會像你在歷史上看到的那樣是一種定價懸崖。話雖如此，自從四年前我開始以來，我們的方法一直非常一致，那就是我們將按價值定價。我們不會去追逐市場。我們實際上離開了很多這樣的業務。

We will continue to price on value and we will continue to pursue opportunities where we provide value, which means that as soon as an opportunity is a a pricing discussion, meaning the lowest price wins, that is not strategically a business we want to win in which means our focus on getting to that 53% margin model that, that reiterated in the in the prior comment is a strategic focus for us and we will continue to create products that differentiate, add value to the customer and therefore hold the margin and not get into this quarterly or even annual price negotiations levels.

我們將繼續按價值定價，我們將繼續尋求提供價值的機會，這意味著一旦機會成為定價討論，意味著最低價格獲勝，這不是戰略上我們想要贏得的業務意味著我們專注於實現53% 的利潤率模型，先前評論中重申的這一點是我們的戰略重點，我們將繼續創造差異化的產品，為客戶增加價值，從而保持利潤率，而不是獲得利潤。 。

Thank you. And for my follow up, if the macro environment is softer wise on deciding to expand distribution inventory, I thought the prior thinking was that you would keep inventory, I think around nine weeks or below nine weeks, but it is going up in Q3 and the assumption is that it goes up in Q4. So what's the thinking and, and the trend behind that? And can that create an overhang as we go into the first half of next year?

謝謝。對於我的後續行動，如果宏觀環境在決定擴大分銷庫存方面更加溫和，我認為之前的想法是你會保留庫存，我認為大約九週或九週以下，但它在第三季度會上升，假設第第四季會上升。那麼這背後的想法和趨勢是什麼呢？當我們進入明年上半年時，這會造成懸而未決嗎？

Yes. So that's a very good question. So a few quarters ago, we mentioned that we're going to start seeing the disty inventory which we really have starved over the last few years, servicing the high volume customers or a lot of the key customers for us. And the strategy behind that is to expand the mass market, customers and expand the mass market in general that we have starved and that's typically a high margin business.

是的。這是一個非常好的問題。因此，幾個季度前，我們提到我們將開始看到過去幾年我們真正匱乏的庫存，為我們的大批量客戶或許多關鍵客戶提供服務。背後的策略是擴大大眾市場、客戶，並擴大我們一直匱乏的大眾市場，這通常是一項高利潤業務。

So what we've done two quarters ago is we started putting very strategic products into the channel and the customer count, the mass market customer count has been very favorable. Therefore, our strategy has really been executed properly and and yielded the results we wanted, which is mass market, higher customer count and higher margin mix into that channel.

因此，我們兩個季度前所做的就是開始將非常具有策略意義的產品放入通路和客戶數量中，大眾市場的客戶數量非常有利。因此，我們的策略確實得到了正確的執行，並產生了我們想要的結果，即大眾市場、更高的客戶數量和更高的利潤組合。

So we will continue to do that. What we monitor is of course, the FIFO level, meaning products that we put in are they P OS ing out? And over how many quarters are they P OS ing out? Which means we're not building inventory in the disty that just stays there and creates that overhang. So we have a very tight process. We started that strategy with the intent of growing that mass market customers. We have done that and therefore we have a pretty good recipe to be able to do that while not building the overhang that typically you would see in a distribution inventory in a slow market environment.

所以我們將繼續這樣做。我們監控的當然是 FIFO 級別，這意味著我們放入的產品是否已 P OS 取出？他們在多少個季度內使用 POS 機？這意味著我們不會在附近建立庫存，而庫存會停留在那裡並造成懸垂。所以我們有一個非常嚴格的流程。我們啟動該策略的目的是擴大大眾市場客戶。我們已經做到了這一點，因此我們有一個非常好的方法來做到這一點，同時不會造成通常在市場緩慢環境下的分銷庫存中會看到的過剩。

Yeah. And the fact the the mass market customer count has been up 15% year over year. So you can see that the strategy of moving that inventory in there is working for that customer base, you just need inventory in the disty shelfs. Our disties would still take more inventory than we're, we're willing to ship them, but we are controlling it tightly.

是的。事實上，大眾市場客戶數量比去年同期成長了 15%。所以你可以看到，將庫存轉移到那裡的策略適用於該客戶群，你只需要遠處貨架上的庫存。我們的經銷商仍然會比我們需要更多的庫存，我們願意運送它們，但我們正在嚴格控制它。

Toshiya Hari of Goldman Sachs.

高盛的 Toshiya Hari。

Hi, good morning. Thanks so much for taking the question. Hasan, I guess my first question is on the, the silicon carbide business and I'm curious, you know, what your, you know, application mix or customer mix looks like today and going into 2025 you know, versus what it looked like a year ago, I think a year ago, you know, it was something like 80% auto, 20% industrial.

嗨，早安。非常感謝您提出問題。 Hasan，我想我的第一個問題是關於碳化矽業務，我很好奇，你知道，你知道，你知道的應用組合或客戶組合今天和進入2025 年會是什麼樣子，與它看起來是什麼樣子的一年前，我想一年前，你知道，大約 80% 是汽車，20% 是工業。

And then within auto, you were very over indexed to one North American customer. I think on prior calls, you had talked about, you know, that mix broadening out to, you know, companies in Europe and customers in China, particularly on the automotive side. So I'm curious what that looks like today and more importantly, how to broaden out into, into 25.

然後在汽車領域，您對一位北美客戶的索引非常過度。我想在之前的電話中，您曾談到，這種組合擴大到歐洲的公司和中國的客戶，特別是在汽車領域。所以我很好奇今天會是什麼樣子，更重要的是，如何擴展到 25 個。

Sure. So the mix overall between auto and industrial is about the same. You can think about 8,020 you know, give or take on depending on the quarter and the ramps that we talked about and that we don't expect that to change because look the industrial softness and the automotive softness both kinda happened, which means there's not a over strength in one market or over a softness in the other to change. That mix in on a quarter, on quarter or even a year on year. So we expect that to be the same about 8,020 which matches the total the TAM of that market.

當然。因此，汽車和工業之間的整體組合大致相同。你可以想想你知道的 8,020，給予或接受取決於我們談到的季度和坡道，我們預計這種情況不會改變，因為看起來工業疲軟和汽車疲軟都發生了，這意味著沒有一個市場的過度強勢或另一市場的過度疲軟需要改變。這種情況按季度、按季度甚至按年計算。因此，我們預計該數字約為 8,020，與該市場的 TAM 總數相符。

So we're indexed to the market mix as it stands as far as diversification. Yes, you know, I talked about ramps in China ev which is really the the strength that we've seen in the silicon carbide. We've seen share gains in key customers. Already, you know, we always talked about penetration, gaining share within those accounts that's been happening. I talked about Europe ramping in the second half. That also did happen. The difference is the end volume is not what we expected. So from share gains from design wins that are actually going to production, everything is happening on schedule and we're in the sockets.

因此，我們將市場組合納入多元化的指數。是的，你知道，我談到了中國電動車的成長，這確實是我們在碳化矽中看到的優勢。我們看到主要客戶的份額增加。你知道，我們一直在談論滲透，在那些正在發生的帳戶中獲得份額。我談到了歐洲下半年的崛起。這也確實發生了。不同之處在於最終的體積不是我們預期的。因此，從實際投入生產的設計勝利中獲得的份額收益來看，一切都按計劃進行，我們處於有利地位。

But the end units is not where we expect it to be, which goes back to, you know, Ross's question earlier when the market does recover and that volume goes up again, we're going to see that benefit on the upside because we're already all in these sockets and it's qualified. So that's what we have to look forward to and that's what we're staging for.

但最終單位並沒有達到我們預期的水平，這又回到了羅斯早些時候提出的問題，當市場確實復甦並且成交量再次上升時，我們將看到這種好處，因為我們'已全部插入這些插座並且合格。所以這就是我們必須期待的，這就是我們所期待的。

Got it. Thank you. And then as my follow up on capital intensity and maybe this one's for, for that. So medium to long term, your, your target is now mid single digits percentage of revenue versus 11% which I think is a pretty big change. You talked about, you know, some of the reasons and you know, you know, capacity expansion being behind you and you guys being able to identify some productivity gains. But has there been any changes in how you think about, you know, for example, in S IC, internal substate substrates versus external silicon Broadley, you know, foundry versus internal, whether it be a way for processing or packaging and test any structural changes to how you think about your footprint.

知道了。謝謝。然後作為我對資本強度的後續行動，也許這個是為了那個。因此，從中長期來看，您的目標現在是收入的中個位數百分比，而不是 11%，我認為這是一個相當大的變化。你談到了一些原因，你知道，你知道，產能擴張正在發生，你們能夠發現一些生產力的提升。但是，您的思考方式是否有任何變化，例如，在 S IC 中，內部基板與外部矽 Broadley，您知道，代工與內部，無論是處理還是封裝和測試任何結構的方式改變您對足蹟的看法。

Yeah. And, and so just to be clear, the the 5% is is now our new long term target, right? So we've achieved our target, our original target was 11%. We achieved that. And you know, we talked about that last quarter coming down below. You know, the fact is our, our manufacturing footprint is just getting optimized here, right? So now we've moved into a phase where we're still going to invest in the Czech Republic. But a lot of this now starts to become maintenance capital on the footprint that we have. As we're, we continue to focus on, on the fab right strategy. So I wouldn't say there's a structural change here as much as the performance has exceeded our expectations.

是的。而且，需要明確的是，5% 現在是我們新的長期目標，對吧？所以我們已經實現了我們的目標，我們最初的目標是 11%。我們做到了。你知道，我們在下面討論了上個季度的情況。你知道，事實是我們的製造足跡剛剛在這裡得到優化，對嗎？因此，現在我們已經進入了仍將在捷克共和國投資的階段。但其中許多現在開始成為我們現有佔地面積的維護資本。目前，我們將繼續專注於晶圓廠正確的策略。因此，我不會說這裡存在結構性變化，儘管表現超出了我們的預期。

Yeah, on the silicon carbide, you know, we obviously, we're going to keep expecting the growth on silicon carbide as the market kind of recovers and goes on the uptick, as I mentioned in my prior comments, a large shift of capacity is going to be going from that 6 to 8 inch where you're going to get more output with an already installed CapEx on the six inch as we convert it with a very CapEx light. You know, it's purely a conversion. We're not building new furnaces or new sites. As you convert from 6 to 8, you're going to get a boost in capacity just from the number of die.

是的，就碳化矽而言，您知道，隨著市場的復甦和持續上升，我們顯然將繼續期待碳化矽的增長，正如我在之前的評論中提到的那樣，產能的大幅轉移將從6英寸變為8 英寸，當我們使用非常資本支出燈對其進行轉換時，您將通過在6 英寸上安裝的資本支出獲得更多輸出。你知道，這純粹是一種轉換。我們不會建造新的熔爐或新的場地。當您從 6 個轉換為 8 個時，您將僅從晶片數量中獲得容量的提升。

That's going to keep supporting our, our growth and then follow that up with the Czech Republic investments, but we also do procure externally. We never said it was going to be 100% internal, we have an internal and external mix. The mix will change as we go over time based on our CapEx and our internal expansion and our eight inch internally has been performing very well already at 350 micro going into FAB, which is basically best in class today. So we expect that to continue with the CapEx level that that mentioned so very efficient, forward-looking expansion to support a revenue growth. So you're going to see a lot of it going to the bottom line.

這將繼續支持我們的成長，然後是捷克共和國的投資，但我們也進行外部採購。我們從未說過它將是 100% 內部的，我們有內部和外部的組合。隨著時間的推移，根據我們的資本支出和內部擴展，這種組合將會發生變化，我們的8 英寸內部在進入FAB 時已經在350 微晶片上表現得非常好，這基本上是當今同類產品中最好的。因此，我們預期資本支出水準將繼續維持上述非常有效率、前瞻性的擴張，以支持收入成長。所以你會看到很多都進入了底線。

Great. Thank you.

偉大的。謝謝。

And one moment for our next question, our next question will be coming from Chris Dli, a city. Your line is open.

我們的下一個問題將來自克里斯·德利 (Chris Dli) 這座城市。您的線路已開通。

Hey guys, I think that's me, Chris Daneley. Maybe I should put on my Sopranos accent again. Hey, a couple longer term questions. So thad you mentioned that CapEx is peaking and going down, can you just talk about like depreciation for 25 versus 24 and then what you expect depreciation to do for the next several years? Is it, as it tails off?

嘿夥計們，我想這就是我，克里斯·丹利。也許我應該再帶上黑道口音。嘿，有幾個長期問題。那麼，您提到資本支出正在達到頂峰並下降，您能否談談 25 與 24 的折舊，以及您預計未來幾年的折舊情況？是嗎，隨著它逐漸消失？

Yeah, it's really consistent with where we are today. You know, if you think about what we're bringing on and what we've, what we've brought on in the last few years, it's already hitting the P&L, right? And then you've got some roll off as we continue to bring on that capacity and in the Czech Republic. So it's, it's roughly in line to where it's going to be as we look into 25. I don't see it as a headwind. You know, it's, it's roughly kind of in that 7% of revenue range and I don't expect that changing for 25 or 26.

是的，這與我們今天的處境非常一致。你知道，如果你想想我們正在帶來什麼，我們已經做了什麼，我們在過去幾年裡帶來了什麼，它已經達到了損益表，對嗎？然後，隨著我們繼續在捷克共和國提高這種能力，您會得到一些下滑。所以，它與我們展望 25 時的情況大致一致。你知道，它大約在收入的 7% 範圍內，我預計這種情況不會在 25 或 26 年內發生變化。

Well, wouldn't depreciation go down with the lower CapEx.

那麼，資本支出降低的話，折舊不會下降嗎？

Yeah. Yeah, eventually it will, right? But you still got some capacity that's coming on this year, right? So I don't think that has it, but when you look out into the 26 yeah, it should start coming down.

是的。是的，最終會的，對吧？但今年你仍然有一些產能，對嗎？所以我認為沒有，但是當你觀察 26 時，是的，它應該開始下降。

Okay, great. And then for my follow up another longer term question on just a silicon carbide. So if the market is, if, if growth is slowing and the market's flattening out a little bit. What about all this this bridge inventory you guys have? Is there any risk of like pricing or anything like that or how do, how do we get rid of that bridge inventory? And then where do we expect that to go over the next.

好的，太好了。然後我跟進另一個關於碳化矽的長期問題。因此，如果市場成長正在放緩，市場是否會趨於平緩。你們擁有的這些橋樑庫存怎麼樣？是否存在類似定價或類似風險，或者我們如何擺脫橋樑庫存？然後我們預計接下來會發生什麼？

Four quarters?

第四季？

Yeah, so there, there's no concern pricing. We, when we talk about the bridge and the strategic inventory build on silicon carbide, we're talking about substrates only. So we can basically build it to whatever customer demand comes in. So we hold it in purely in substrates. Most of it doesn't even have AP in it. So voltage is not even defined yet.

是的，所以，不用擔心定價。當我們談論基於碳化矽的橋樑和戰略庫存時，我們只談論基材。因此，我們基本上可以根據客戶的任何需求來建造它。大部分甚至沒有AP。所以電壓還沒定義。

So it is at the most common denominator of our whole customer, whether it's auto or industrial and launching from that is where we we create the finished goods. So there's no risk to obsolescence, no risk to pricing. We will build to demand based on when we get it and based on the outlook. And that's why we don't, we don't add value to that inventory and hold it anywhere closer to finished. Good. Just to keep that optionality.

因此，它是我們整個客戶的最共同點，無論是汽車客戶還是工業客戶，我們都從這個客戶出發創造成品。因此，不存在過時風險，也不存在定價風險。我們將根據需求的時間和前景來滿足需求。這就是為什麼我們不這樣做，我們不會為庫存增加價值，也不會將其保留在接近成品的地方。好的。只是為了保持這種選擇性。

Thanks. That sounds.

謝謝。聽起來是這樣。

Blayne Curtis, Jeffrey.

布萊恩·柯蒂斯，傑弗裡。

Hey, thanks for taking my question. I just want to drill into the auto segment. I thought I heard you say that the growth sequentially in auto was driven by Slim car. But I just want to kind of double click on the what you're seeing by geography. I mean, there's been this expectation that China is going to gain share any of these. Can you just talk about what drove what geography drove that strength and to the extent that China EVs do take share globally, you're positioning there. I thought you, you talked about 50% share, but those are in designs if it happens now, just kind of curious if that's good or bad for you.

嘿，謝謝你回答我的問題。我只是想深入了解汽車領域。我想我聽到你說汽車的連續增長是由超薄汽車推動的。但我只想雙擊您所看到的地理位置。我的意思是，人們一直期望中國將獲得其中任何一個的份額。您能否談談是什麼推動了這種優勢，以及中國電動車在全球範圍內佔據的份額，以及您所處的位置。我以為你談到了 50% 的份額，但如果現在發生的話，這些都在設計中，只是有點好奇這對你來說是好是壞。

Yeah, so the the strength obviously for us an auto and in soil car by was driven by China and the share gains we've had in China specifically when I talk about design wins or the share based on design wins. You know, I refer also to my comment, I think last quarter about the Beijing Auto Show and the 800 volt kind of platforms that we're in where I would say it's, it's further from design win. It's actually in vehicles today.

是的，所以我們的汽車和土壤汽車的實力顯然是由中國和我們在中國的份額增長所推動的，特別是當我談論設計勝利或基於設計勝利的份額時。你知道，我也提到了我的評論，我認為上個季度關於北京車展和我們所處的 800 伏特平台，我想說的是，它距離設計勝利還很遠。如今它實際上已經出現在車輛中。

So as these vehicles ramp which they started now and they will ramp into '25 that should start seeing extended strength. But we did see the strength in China both from a total market and our penetration in that market with the designs that we already have. We expect that to continue in '25.

因此，隨著這些車輛現在開始加速，他們將進入 25 年，應該會開始看到實力的增強。但我們確實從整個市場以及我們已經擁有的設計在該市場的滲透中看到了中國的實力。我們預計這種情況將在 25 年繼續下去。

And I was just curious you mentioned the data center. Can you just wrap some maybe timing around that in terms of when you could see kind of first revenue? And in terms of you said you've been working on it for a long time here, you know, what's the right time frame to think about getting design wins for them?

我只是好奇你提到了資料中心。您能否簡單地概括一下何時可以看到第一筆收入的時間安排？就您所說的而言，您已經在這裡工作了很長時間，您知道，考慮為他們贏得設計勝利的合適時間範圍是多少？

Yes. So look, we already already have design ones. We're we already have revenue in in that segment. Obviously, it's it's early time revenue, but there is revenue. The products that we have launched. Now you expect revenue in 2025 as the products get qualified and the customers ramp.

是的。所以看，我們已經有了設計方案。我們已經在該領域獲得了收入。顯然，這是早期的收入，但收入是有的。我們推出的產品。現在，隨著產品獲得合格資格和客戶數量增加，您預計 2025 年將獲得收入。

For example, you know, we did that. We announced the P 10 trench fit last quarter. We already have design wins on that being qualified at the hyper Scaler. So we expect revenue from these products that I talked about in 2025 but we already have product or revenue on existing products already this year.

例如，你知道，我們就是這樣做的。我們上個季度發布了 P 10 風衣。我們已經獲得了在 hyper Scaler 上合格的設計勝利。因此，我們預期 2025 年我談到的這些產品會產生收入，但今年我們已經有了現有產品的產品或收入。

So we're in the markets. We're working on new platform, working on new designs and with our new product introduction, that's really going to boost the portfolio that we are able to offer customers.

所以我們在市場上。我們正在開發新平台、新設計以及新產品的推出，這確實會增強我們能夠為客戶提供的產品組合。

Thanks for that.

謝謝你。

Quinn Bolton of Needham and company.

李約瑟及其公司的奎因·博爾頓。

Hey, so I just wanted to follow up on the, the A I data center wins that you just mentioned, I think you said you had wins at three of the four hyper scalar for multi phase controllers and individual voltage RS. I just wanted one clarify and two, if that's the case, is that more for CPU power or is it also include GP U or A I Accelerator? And then I got a follow up.

嘿，所以我只是想跟進您剛才提到的人工智慧資料中心的勝利，我想您說過您在多相控制器和單獨電壓 RS 的四個超標量中的三個方面取得了勝利。我只是想澄清一、二，如果是這樣的話，是 CPU 功率更大還是還包括 GPU 或 AI 加速器？然後我得到了跟進。

Yeah, we didn't, we, we're not specifying exactly which product specifically I rattled off the portfolio because when you go into an account and we target the power tree, you need to be able to show coherent or cohesive power distribution from the beginning to the end. That's why we started with sick with the PSU all the way to the the course. That really is, is the general approach that we have both for the NVIDIA and Arm.

是的，我們沒有，我們，我們沒有具體具體說明我具體介紹了哪些產品，因為當您進入一個帳戶並且我們以權力樹為目標時，您需要能夠顯示來自的連貫或內聚的權力分佈從開始到結束。這就是為什麼我們從 PSU 開始一直到課程的原因。這確實是我們針對 NVIDIA 和 Arm 採取的通用方法。

Got it. And then for that, I think East Fishkill was expected to be about 100 basis point, headwind to margins Q3 Q4 and then sort of taper off into next year. Just want to make sure that's still the right way to think about the East Fishkill overhang.

知道了。然後，我認為東菲什基爾預計將達到約 100 個基點，對第三季和第四季的利潤率構成逆風，然後在明年開始逐漸減少。只是想確保這仍然是思考東菲什基爾懸挑的正確方法。

Yeah, that's correct. It's still about 100 basis points dilutive to the, the corporate gross margin will continue to be that way in Q4. When we look into '25 it'll be, you know, you can think about it as being fairly linear in terms of improvement, you know, and by the end of the year, most of that 100 basis points will be will be off the company at that point. As we exited that that business for global foundries.

是的，這是正確的。它仍然稀釋了約 100 個基點，公司毛利率將在第四季度繼續保持這種狀態。當我們研究 25 年時，你知道，你可以認為它在改進方面是相當線性的，你知道，到今年年底，這 100 個基點中的大部分將被取消那時的公司。當我們退出全球代工廠的這項業務時。

Perfect. Thank you.

完美的。謝謝。

Josh Buchalter of TD Cohen. Your line is open.

TD Cohen 的 Josh Buchalter。您的線路已開通。

Hey guys, thanks for taking my question. Good morning. Sorry for belaboring silicon carbide, but you're probably used to it by now. I wanted to sort of ask about the guidance for low single digit growth again. Can you it was helpful walking through some of the auto versus non auto and then commentary on your lead customer. Can you give us any details on what each of those buckets are growing because I'm trying to reconcile the ongoing share gains in China with what looks like a stabilized outlook at your lead customer with, with the low single digit growth. Thank you.

嘿夥計們，謝謝你提出我的問題。早安.很抱歉對碳化矽進行了過多的闡述，但您現在可能已經習慣了。我想再次詢問有關低個位數成長的指導。介紹一下汽車與非汽車的一些情況，然後對您的主要客戶進行評論，這對您有幫助嗎？您能否向我們詳細介紹這些類別的成長情況，因為我正在努力協調中國市場持續的份額成長與您的主要客戶看似穩定的前景以及低個位數的成長。謝謝。

Sure. So we're look, we're, we're not breaking out growth by industrial and, and, and auto in general. We talked about the diversification as we get more and more of designs, both regional diversification and within a customer diversification as we get into more platforms within the customer to offset the lumpiness that, that you see model to model North America is up for us. And that's based on commentary I made before both on ramp and share again, I will leave the guide and outlook to our customers earnings and our customers commentary.

當然。所以我們看，我們，我們，我們並沒有突破工業和汽車行業的整體成長。我們談到了多元化，因為我們獲得了越來越多的設計，包括區域多元化和客戶多元化，因為我們進入了客戶內部的更多平台，以抵消北美模型對我們的影響。這是基於我之前在斜坡上所做的評論並再次分享，我將把指南和前景留給我們的客戶收入和客戶評論。

But for North America, for us was up, China was up so you can see everything was, was up as expected, just not at the level that we expected it for the second half of the year due to end demand, which is very well publicized by the O Ems themselves. But being up regionally gives you a little indication of where the shares are as far as design win and ramp and the penetration within these accounts.

但對於北美來說，對我們來說，中國的價格上漲了，所以你可以看到一切都在預期上漲，只是沒有達到我們對下半年的預期水平，因為終端需求非常好由O Ems 自己公佈。但區域性的上升可以讓您稍微了解設計獲勝和提升以及這些帳戶中的滲透率的份額。

Got it. Thank you. And then, and following up on that, One of your large peers talked about their China auto business up 20% sequentially this quarter. I'm guessing you won't give us a metric there. But maybe you could talk about what you're seeing in that in that vertical specifically because, you know, since the earnings, we've gotten a little bit of concern that there might be some pull in or, or, or idiosyncrasy is going on with that market. So I'd be curious to hear you expand on what you're seeing in the China auto market a bit. Thank you.

知道了。謝謝。隨後，您的一位大型同行談到他們的中國汽車業務本季環比增長了 20%。我猜你不會在那裡給我們一個指標。但也許你可以談談你在這個垂直領域所看到的具體情況，因為，你知道，自從收益公佈以來，我們有點擔心可能會出現一些吸引力，或者，或者，或者特質正在發生與那個市場。因此，我很想聽聽您詳細介紹一下您在中國汽車市場所看到的情況。謝謝。

Yeah, I, I think I, I know who you're referring to because I think there's only one that did earnings already. So we're, we're not in the same bucket for us. Electrification when I refer to electrification is really the drive train. Which is where silicon carbide plays not necessarily in, in in general. So it may be a mix thing only which is a discrepancy. But our China business did grow as well. We're not breaking out regionally regional growth from the overall growth, but China did grow in automotive and it grows specifically with the strength and ev driven by silicon carbon.

是的，我，我想我，我知道你指的是誰，因為我認為只有一個人已經獲利了。所以我們，我們不是在同一個桶子裡。當我提到電氣化時，電氣化實際上是傳動系統。一般來說，碳化矽不一定發揮作用。所以這可能只是一個混合的東西，存在差異。但我們的中國業務也確實成長了。我們並沒有將地區成長與整體成長分開，但中國在汽車領域確實有所成長，而且它的成長特別是由矽碳驅動的強度和電動車。

And one moment for our next question and our next question will be coming from Christopher Roland of Susquehanna. Your line is open.

我們的下一個問題將由薩斯奎哈納的克里斯多福羅蘭（Christopher Roland）提出。您的線路已開通。

Hey, thanks for the question. I guess my first is, can you break down automotive geographically for us just into some larger buckets between, you know, Europe, Japan and China for us.

嘿，謝謝你的提問。我想我的第一個問題是，您能否將我們的汽車產業從地理上劃分為歐洲、日本和中國之間的一些更大的類別。

So I'm trying to think, you know that.

所以我試著思考，你知道的。

Well, Chi China's strong, I think China is strong, you know, because I just walked out, I mean, just as a.

嗯，誌中國強大，我認為中國強大，你知道，因為我剛剛走出去，我的意思是，只是作為一個。

Percent as a percent of revenue. Sorry.

佔收入的百分比。對不起。

No, we're, we're not breaking down markets by regional percentages.

不，我們不會按地區百分比來細分市場。

We're because there's a lot of it, it does it ship through or, or and leave the country. It's, it's, it gets too lumpy and too confusing. So we look at it as a market by region indication, whether was it up or, or how it behaved just to give you a strength of where the strength is coming from as we get through this L shape.

我們是因為有很多東西，它會通過或或離開這個國家。是的，是的，它變得太混亂、太混亂了。因此，我們將其視為按地區劃分的市場指標，無論是上漲還是上漲，或者其表現如何，只是為了讓您了解當我們經歷這個 L 形時，力量來自何處。

Okay. I I was just talking kind of larger percentages roughly, but if, if, if you can't provide that. That's okay. I guess for my second question, you know, guys like t I are going back to consumer customers, broader markets. It sounds like, you know what with your distribution comments? You might be a little more warm to these markets. I'm not sure. But could you talk about how you're approaching that, that other bucket?

好的。我只是粗略地談論了更大的百分比，但是如果，如果，如果你不能提供這一點。沒關係。我想對於我的第二個問題，你知道，像我這樣的人會回到消費者客戶，更廣闊的市場。聽起來，你知道你的發行評論是什麼嗎？您可能對這些市場更加熱情一些。我不知道。但你能談談你是如何接近這個目標的嗎？

Yeah.

是的。

I keep price but are a little more open.

我保留價格，但更開放一些。

Yeah, I wouldn't, I wouldn't talk about, you know, open to consumer market or not. You know, our focus is value when we put the you know, when we, I talk about the mass market and like that set, seeing that market with distribution inventory because it has to be on the shelf for us to to ship. We're not looking at it's for this market or that market. We look at it as a mass market. Any customer can buy those products as long as you know, the margin is provided on the value that those products provide.

是的，我不會，我不會談論是否向消費者市場開放。你知道，當我們把你知道的東西放在大眾市場上時，我們的重點是價值，就像那樣，看到該市場的分銷庫存，因為它必須放在貨架上供我們運輸。我們並不是針對這個市場或那個市場。我們將其視為大眾市場。只要您知道，任何客戶都可以購買這些產品，保證金是根據這些產品提供的價值提供的。

But I will be very, very clear on the call. Our strategy of chasing other markets at the expense of margin just to get top line or utilization is not and no longer part of our strategy. So we're not going to get into this trap of let's go, you know, maybe squint a little bit on pricing to get what we need on utilization and revenue. We're actually focusing on value we are not going to dilute our value and we will maintain the product value, whether it's going through mass market or not.

但我會在電話會議上非常非常明確地表達。我們以犧牲利潤為代價追逐其他市場只是為了獲得收入或利用率的策略不再是我們策略的一部分。因此，我們不會陷入這個陷阱，讓我們走吧，你知道，也許在定價上稍微關註一下，以獲得我們所需的利用率和收入。我們實際上專注於價值，我們不會稀釋我們的價值，我們將保持產品價值，無論它是否進入大眾市場。

Thank you.

謝謝。

Mr and one moment for our next question, our next question will be coming from Vijay Rakesh of Mizuho. Your line is open.

先生，請等一下我們的下一個問題，我們的下一個問題將來自 Mizuho 的 Vijay Rakesh。您的線路已開通。

Alright, thanks for let me ask you a question, Hassan, and that just a quick question on the inventory side. When you look at this T and OEM inventory, can you talk to where those levels should be existing, let's say December versus what normal levels are, then I follow up.

好吧，謝謝你讓我問你一個問題，哈桑，這只是一個關於庫存方面的簡單問題。當您查看此 T 和 OEM 庫存時，您能否談談這些水平應該存在於哪裡，比方說 12 月與正常水平相比，然後我會跟進。

Yeah. Hey, look on the, the disty side. You know, I said it in my prepared remarks, we expect the, the weeks of inventory and disty to increase slightly, you know, 10 weeks plus or minus. You know, as we focus on that mass market, when you talk about in customers like that's, that's really hard to hard for us to monitor, right? You know, there's definitely inventory out there. We think the inventory digestion is ongoing. But you know, a lot of that is going to depend on in demand if in demand picks up that inventory burns through quicker.

是的。嘿，看看遠處。你知道，我在準備好的演講中說過，我們預計庫存週數和庫存量將略有增加，你知道，增加或減少 10 週。你知道，當我們專注於大眾市場時，當你談論這樣的客戶時，我們真的很難監控，對吧？你知道，那裡肯定有庫存。我們認為庫存消化正在進行中。但你知道，這在很大程度上取決於需求，如果需求回升，庫存消耗得更快。

Yeah, one thing, one thing just to be, is, is, it's not an industry commentary either. You know, you have some customers that have low, very low inventory. We're talking about a couple of weeks and then you have others that have much longer inven much larger inventory that they're trying to bring down. So it's not an industry commentary where we can say it's, you know, inventory is everywhere and that's more related to. If you look at the tier one and you listen to their earnings, they're stating their inventory position and what they're trying to get it to. The O EMS have finished. Good inventory. That's also very well publicized from our side, we're able to triangulate a lot of that. And obviously, we're into the accounts with the O EMS directly trying to get the the end demand. So that's why it's, I wouldn't say as a, it's a industry wide, it's a customer by customer. So it's hard to say, you know, how many weeks do we believe? Or how long does it take to drink?

是的，一件事，一件事，是，是，這也不是行業評論。您知道，您的一些客戶的庫存非常低。我們談論的是幾週的時間，然後其他人的庫存時間更長，他們正在試圖減少更多的庫存。所以這不是一個行業評論，我們可以說，庫存無處不在，這更相關。如果你看看第一層並聽聽他們的收入，他們會說明他們的庫存狀況以及他們想要達到的目標。 O EMS 已完成。良好的庫存。這在我們這邊也得到了很好的宣傳，我們能夠對其中的許多內容進行三角測量。顯然，我們直接與 O EMS 打交道，試圖獲得最終需求。這就是為什麼，我不會說這是一個整個產業，一個客戶一個客戶。所以很難說，你知道，我們相信多少個星期？或者要喝多久？

Got it. And the last question, when you look at the good to hear this 200 m, silicon carbon is ramping well, but as you, let's say, looking out exiting 2025 let's say, what would be a mix of internal 200 millimeter.

知道了。最後一個問題，當你看到這個 200 m 的聲音時，矽碳正在很好地增長，但是當你展望 2025 年時，讓我們說，內部 200 毫米的混合會是什麼。

Silicon carbide.

碳化矽。

Well, we are actually driving to about a 8,020 or 7,030. Even if we are able to do more internally, we are managing the mix because we would like to always have a external feed into our factory just to keep the the lines and really the quality baseline fresh across all sources. So we don't expect that outlook to change.

嗯，我們實際上正在行駛到大約 8,020 或 7,030。即使我們能夠在內部做更多的事情，我們也會管理組合，因為我們希望始終有外部資源進入我們的工廠，以保持所有來源的生產線和真正的品質基線新鮮。因此，我們預計這種前景不會改變。

Well, it's a 17.

嗯，這是17號。

And one moment for our next question, our next question will be coming from Tours Vanberg of Steel. Your line is open.

我們的下一個問題將由 Tours Vanberg of Steel 提出。您的線路已開通。

Yes. Thank you. Hasan, I had a question on the share in China UV for eight on a volt, I think last quarter, I think you said approaching 60%. I think now you said 50%. Is, is that just a technicality or, or did something change? Quarter over quarter?

是的。謝謝。哈桑，我有一個關於八伏一伏的中國紫外線份額的問題，我想上個季度，我想你說接近 60%。我想現在你說的是50%。這只是技術問題，還是發生了一些變化？季度比季度？

No, no, nothing changed. Nothing changed. It's it's the same, same design wins, same everything as you ramp. You're going to start, well as you ramp actual design, you're going to start getting that, the update from it.

不，不，什麼都沒有改變。一切都沒有改變。這是相同的，相同的設計獲勝，相同的一切，因為你斜坡。你將開始，並逐步推進實際設計，你將開始從中獲得更新。

Perfect. Just want to clarify that second question is on the mass, the mass market and the staging of inven inventory. So how, how far will you go is 10 weeks, sort of the highest we should expect for the next few quarters or would it go beyond that as you continue that staging?

完美的。只是想澄清第二個問題是關於大眾、大眾市場和發明庫存的分期。那麼，你會在 10 週內走多遠，這是我們對未來幾季的預期最高水平，或者當你繼續這個階段時，它會超出這個範圍嗎？

Yeah, look, I, I think our new target range as we think about kind of a normalized market as a 99 to 11 weeks, right? So that 1,010 weeks plus or minus right in the sweet spot, but I don't think you're going to see us go north of, of 11.

是的，我認為我們的新目標範圍是 99 到 11 週的正常化市場，對嗎？所以 1,010 週正處於最佳位置，但我認為你不會看到我們超過 11 週。

Great. Thank you. Ted.

偉大的。謝謝。特德.

One moment for our next question and our next question will be coming from Chris Caso of Wolf research. Your line is open.

我們的下一個問題請稍等一下，我們的下一個問題將來自沃爾夫研究中心的克里斯·卡索。您的線路已開通。

Yes. Thank you. Good morning. The first question is on the capital intensity that you, you mentioned moving lower. But you know, I, I guess is there anything structural in that, that we should be contemplating or is this just a function of, of where utilization is right now? And, and the fact that, you know, you can grow revenue into the existing capacity. And perhaps, you know, with that, you know, given where the utilization levels are right now, is there a particular, you know, sort of revenue capacity that you could grow into without increasing the CapEx very much?

是的。謝謝。早安.第一個問題是關於你提到的資本密集度下降。但你知道，我，我想這裡面有什麼結構性的東西，我們應該考慮，還是這只是現在利用率的一個函數？而且，事實上，您知道，您可以將收入增加到現有產能。也許，你知道，考慮到目前的利用率水平，是否存在一種特定的收入能力，你可以在不增加太多資本支出的情況下成長？

Yeah, Chris, it's that. So look, we've made big investments over the last several years. Those investments went primarily to silicon carbide and EFK, right? So both of those investments are now behind us, we do have more in silicon carbide as, as we go forward, think about that Czech Republic investment, but that's over a multi year period.

是的，克里斯，就是這樣。所以看，我們在過去幾年裡進行了大量投資。這些投資主要投向了碳化矽和 EFK，對嗎？因此，這兩項投資現在都已經過去了，我們確實在碳化矽方面有更多的投資，隨著我們的前進，考慮捷克共和國的投資，但這已經是多年的時間了。

So I wouldn't look at the structural, I would look at this is achieving that, that target early and it's based on the performance of our manufacturing footprint. I've said this many times, we continue to optimize that footprint and, and drive cost out and drive efficiency up which gets more units out. And you know, obviously it's 65% utilized, we have a lot of capacity. So there isn't a need to bring capacity on other than for the strategic nature of of Silicon Carbide. The rest of this will be primarily maintenance.

因此，我不會專注於結構，我會專注於是否儘早實現該目標，並且它基於我們製造足跡的績效。我已經說過很多次了，我們將繼續優化佔地面積，並降低成本並提高效率，從而獲得更多單位。你知道，顯然利用率是 65%，我們有很多容量。因此，除了碳化矽的戰略性質之外，沒有必要增加產能。其餘的主要是維護。

And I wouldn't, yeah, and I wouldn't think about, you know, our CapEx level as hindering any growth future growth at all. As I mentioned in my prior answer Silicon Carbide volume or capacity is going to go just by very low CapEx conversion from 6 to 8 will give you a boost in capacity. You know, our analog mixed signal new products will be landing in the East Fishkill, which is again a new fab that's going to support the growth. So we're very comfortable with where our footprint is and we'll continue to look at optimizing our brownfield investment.

我不會，是的，我也不會認為我們的資本支出水準會阻礙任何未來的成長。正如我在先前的回答中提到的，碳化矽的體積或容量將透過從 6 到 8 的非常低的資本支出轉換來提高容量。你知道，我們的類比混合訊號新產品將登陸東菲什基爾，這又是一個支援成長的新工廠。因此，我們對我們的足跡非常滿意，我們將繼續考慮優化我們的棕地投資。

Got it. Thank you. I, I guess as a follow up, I'll ask you another question on silicon carbide and you know, in interested in your view on, you know, where this market goes into next year. And I recognize that you know, where where volume goes is is is a tough question at this point. But you know, the other part of silicon carbide is is is penetration because silicon carbide you know, the penetration rate still relatively low and you've got some visibility there on design wins. So, II I guess the first part of the question is, you know, where do you think you can grow this business next year. And then secondly, you know how much of that growth, potential growth, you know comes from from penetration versus just eb units?

知道了。謝謝。我想，作為後續行動，我會問您另一個關於碳化矽的問題，您知道，我想了解您對明年這個市場的看法。我體認到，你知道，目前成交量去向是一個棘手的問題。但你知道，碳化矽的另一部分是滲透率，因為碳化矽的滲透率仍然相對較低，而且你對設計勝利有一定的了解。所以，我想問題的第一部分是，你認為明年你可以在哪裡發展這項業務。其次，你知道這種成長、潛在成長有多少是來自於滲透率而不是只來自 eb 單位？

Yeah. Look in general, I I agree with the, with the statement that our view or long term view of silicon carbide or electrification market remains unchanged. You know, that was what we started the call with, with Ross's question of does that cause us to change any of our outlook? The answer is no because of exactly the two points you brought up. EVs are going to continue to grow. You know, the the rate of growth year on year will be lumpy but it is still growth. And then you have on top of that, you got silicon carbide penetration within the es as you mentioned today, we're only if I take out the market, North America market leader, we're about 6% as an industry, silicon carbide penetrated into s if you refer to my comments last quarter about the Beijing Auto show, most if not all of the new model that were introduced specifically in China were 800 volt drive driven with silicon carbide. So that penetration of silicon carbide tev will continue to grow into 2025. And then the market will define how much of the unit volume of evs will grow into 25. For us. We expect silicon carbide to also grow in 2025. Given those two trends that I mentioned.

是的。總的來說，我同意我們對碳化矽或電氣化市場的看法或長期看法保持不變的說法。你知道，這就是我們開始通話的原因，羅斯的問題是這是否會導致我們改變我們的觀點？答案是否定的，因為正是你提到的兩點。電動車將繼續成長。要知道，年成長率會起伏不定，但仍然是成長。最重要的是，正如您今天提到的，碳化矽在 es 內的滲透率只有當我拿出市場時，我們才是北美市場的領導者，作為一個行業，我們大約佔 6%，碳化矽如果你參考我上季度關於北京車展的評論，大多數（如果不是全部）專門在中國推出的新車型都是由碳化矽驅動的800 伏特驅動器。因此碳化矽電動車的滲透率將繼續增長到2025年。我們預期碳化矽在 2025 年也會成長。

Got it. Thank you.

知道了。謝謝。

And one moment for our next question and our next question will be coming from Jed Dorsheimer of William Blair. Your line is open.

我們的下一個問題將由威廉布萊爾的傑德多斯海默提出。您的線路已開通。

Hi. Thanks for taking my question fitting me in. I guess first question, Hassan. I was wondering if you might be able to elaborate on the value proposition that your customers are asking you about in the power tree data center specifically. Do you see it? How does that relate to the efficiency and the shift to modules in evs? And you know what gives you confidence that silicon carbide versus gallium nitride is going to be the the solution there. And then I have a follow.

你好。感謝您提出適合我的問題。我想知道您是否能夠詳細說明您的客戶在電力樹資料中心中具體詢問您的價值主張。你看到了嗎？這與電動車的效率和向模組的轉變有何關係？您知道是什麼讓您相信碳化矽與氮化鎵將成為解決方案。然後我就有了關注。

Okay. There's just a couple of things and I will try to reiterate just to make sure I get the the question and I can give you the right answer. So from the A I in general, the power tree is efficiency, you know, you can have the most efficient conversion at the GP U and then you can lose most of it from call it the the PSU all the way in. So efficiency of the power tree is important, that's becoming more and more important not to the module or to the server maker, but more for the hyper scaler 1% efficiency loss on a power tree. Think about that loss on a rack, think about that utility bill that they would otherwise not be getting by getting the 1% efficiency. That's the the benefit that we're seeing.

好的。只有幾件事，我會盡力重申，以確保我明白問題並能給你正確的答案。因此，從一般意義上來說，電源樹就是效率，你知道，你可以在 GPU 上進行最高效的轉換，然後你可能會因為將其稱為 PSU 而失去大部分轉換。這對於模組或伺服器製造商變得越來越重要，但對於超級擴展器來說更重要，電源樹上1% 的效率損失。想想機架上的損失，想想他們透過獲得 1% 的效率而無法獲得的水電費。這就是我們看到的好處。

Your next question is about silicon carbide versus gan. Those are two different things, silicon carbide. When we talk about silicon carbide and the, the product that we announced last quarter at 650 volt, that's more closer to the grid in the power tree. If I think the power tree grid all the way to GP U, that's more in the PSU high voltage PSU conversion. As you get closer, you get silicon and GAN as you get closer, higher frequency lower voltage where you want the efficiency. That's where, for example, you have silicon products that are as efficient which are T 10 trench fat and that's what's gaining wind. So it's not about silicon carbide versus Gan versus silicon. It's really a different branches in that power tree is where the most optimal technology needs to fit. And our ability to provide all of these, give us that portfolio and that competitive advantage of the customer. So that's how we look at it. And by the way, it's to your comment on electrification or EVs same concept in evs, there's, we still have IG BT, we have silicon carbide and we have hybrid where you don't need 100% sick or 100% IG BT. We look at the power tree and automotive, the same way where we focus on providing the best efficiency with the most optimized, you know, performance to cost benefit for the customer. The same formula is getting us into the power tree for A.

您的下一個問題是關於碳化矽與氮化鎵。這是兩種不同的東西，碳化矽。當我們談論碳化矽和我們上季度推出的 650 伏特產品時，它在電源樹中更接近電網。如果我認為電源樹網格一直到 GPU，那麼更多的是 PSU 高壓 PSU 轉換。當你靠近時，你會得到矽和 GAN，當你靠近時，你會得到矽和 GAN，在你想要效率的地方，頻率更高，電壓更低。例如，在那裡，您可以擁有同樣高效的矽產品，即 T 10 溝渠脂肪，這就是風靡的原因。所以這不是碳化矽、氮化鎵和矽的問題。這確實是電力樹中不同的分支，需要適合最優化的技術。我們有能力提供所有這些，為我們提供了產品組合和客戶的競爭優勢。這就是我們的看法。順便說一句，您對電氣化或電動車的評論與電動車中的概念相同，我們仍然有 IG BT，我們有碳化矽，我們有混合動力，您不需要 100% 生病或 100% IG BT。我們專注於電源樹和汽車，就像我們專注於為客戶提供最佳效率和最優化的性能成本效益一樣。同樣的公式讓我們進入 A 的能量樹。

I got it. That's helpful. I'll jump back in queue. Thank you.

我得到了它。這很有幫助。我會插回隊列。謝謝。

One moment for our next question and our next question will be coming from Harsh Kumar of Piper Sandler. Your line is open.

我們的下一個問題請稍等一下，我們的下一個問題將來自 Piper Sandler 的 Harsh Kumar。您的線路已開通。

Yeah. Hey guys. Thanks for squeezing me in. Fellows, good job controlling what you can control in this tough environment. Pat. I had one for you. Your guiding revenue to a flattish. Should I assume the mix between the two key and markets, automotive and industrial to be kind of the same flattish? Just basically what it was last quarter? Or is there some puts and takes that I can think about?

是的。嘿夥計們。謝謝你們讓我加入。拍。我幫你準備了一份。您的指導收入持平。我是否應該假設汽車和工業這兩個關鍵市場之間的組合同樣平坦？基本上是上個季度的情況嗎？或者有一些我可以考慮的放法和取法嗎？

No, we think automotive is going to be up, you know, lid low to mid single digits just with the silicon carbide continuing to ramp. Industrial is kind of flattish, you know, maybe slightly down the other bucket will, will likely be down, but we think auto will, will outgrow the overall total.

不，我們認為汽車產業將會上漲，你知道，隨著碳化矽的持續成長，汽車產業將會出現低至中個位數的成長。工業是有點平淡，你知道，也許其他方面會略有下降，很可能會下降，但我們認為汽車會，會超過整體總量。

Great. Thank you for that color and then maybe one for Hassan Hassan. When you talk to curious, want to get some visibility on what kind of conversations you have with your customers, it seems like there's excess inventory, it seems like there's lackluster and demand seems like it's both. So when you talk to your customers, when do they envision or turn to happen or they simply don't know and is interest rate a factor here at all as it starts to kick it into the e economy. And then my last part of the question separate was one of your competitors got basically a lot of chip back money much more than I would have thought. I was curious if, where you guys stand in that, in that spectrum?

偉大的。謝謝你提供的那種顏色，也許還有哈桑·哈桑的顏色。當你與好奇者交談時，想要了解你與客戶進行什麼樣的對話時，似乎庫存過剩，似乎乏善可陳，而需求似乎兩者兼而有之。因此，當您與客戶交談時，他們預計或何時會發生，或者他們根本不知道利率是否是其中的一個因素，因為它開始將其帶入電子經濟。然後我的問題的最後一部分是你的一個競爭對手基本上得到了比我想像的更多的籌碼返還資金。我很好奇，你們在這個範圍內處於什麼位置？

Sure. So first on the dialogue with the customers, look the the conversation with the customer, nobody's got a better crystal ball than, than the other. So the conversation with customers is really around, how are we both going to get ready for a recovery in demand? And if the recovery is, it happens quickly, how are we going to be ready versus, you know, 2021 for example, where the shortages happen? That's the strategic dialogue of visibility of communication and really the tightness of the relationship that that really is important here.

當然。因此，首先在與客戶的對話中，看看與客戶的對話，沒有人比其他人擁有更好的水晶球。因此，與客戶的對話實際上圍繞著這樣一個問題：我們如何為需求復甦做好準備？如果復甦發生得很快，那麼我們將如何做好準備，以應對 2021 年發生短缺的情況？這就是溝通可見度的策略對話，以及關係的緊密程度，這裡非常重要。

You know, I was in, in Europe, for example, last week where the dialogue was, I would say 50% about that. The other 50% is new designs.

你知道，例如，上週我在歐洲進行了對話，我想說 50%。另外50%是新設計。

So the design in activity at the O Ems driven by the O Ems into the tier one also has not slowed down, which tells you that nobody's taking this as a change. In a long term strategy, you know, electrification and and so on. So everybody remains committed to their plans. Everybody acknowledges that there's lumpiness in demand. It could be helped by interest rates. Absolutely. Because it's consumer confidence and consumer spend. But when is it going to play its way through the economy? That's the the knee in the curve that we're waiting. But what we can do now is making sure we're ready. You know, we talked about strategic inventory builds on the silicon car bits for us to react quicker, et cetera. These are things we can do along with our customers to be ready as far as you know, chips money. I won't comment on you know where, where we are specifically, we've always said we're going to do what we need to do for us as a company. And the support from the Chips Act is, is very welcome to offset some of the investment we have to make in North America.

因此，由 O Ems 推動的 O Ems 進入第一層的設計活動也沒有放緩，這告訴你沒有人認為這是一種改變。在長期策略中，你知道，電氣化等等。所以每個人都仍然致力於他們的計劃。每個人都承認需求不穩定。利率可能會有所幫助。絕對地。因為這是消費者信心和消費者支出。但它什麼時候才能在經濟中發揮作用？這就是我們正在等待的曲線拐點。但我們現在能做的是確保我們做好準備。你知道，我們談到了基於矽汽車部件的戰略庫存，以便我們更快地做出反應，等等。據您所知，這些是我們可以與客戶一起做的事情，以做好籌碼準備。我不會評論你知道我們具體在哪裡，我們一直說我們將做我們作為一家公司需要做的事情。非常歡迎《晶片法案》的支持，以抵消我們必須在北美進行的一些投資。

We're not going after it just to build new fabs and build new capacity that we otherwise will not need. Because you may get funding, but you'll pay for it on the on the back end. Once you have the building running, we're not going to be going down that path. You heard that about our investments and our CapEx and our new model, we're going to work within these parameters as far as what the what I would call the preliminary terms that one of our competitors got. You know, I wish him luck. I think the struggles were not related to funding the struggles were related to operational, but I wish him luck.

我們追求它不僅僅是為了建造新的晶圓廠和建造我們不需要的新產能。因為你可能會獲得資金，但你將在後端支付費用。一旦大樓投入運行，我們就不會再走這條路了。您聽說過，關於我們的投資、資本支出和新模式，我們將在這些參數範圍內開展工作，直到我們的競爭對手之一獲得的我所說的初步條款。你知道，我祝他好運。我認為這些鬥爭與資金無關，與營運有關，但我祝他好運。

Fair enough. Thank you. So, thanks Pat, thanks for all.

很公平。謝謝。所以，謝謝帕特，謝謝大家。

And this concludes our Q&A session. I would now like to turn the call back over to Hassan Al Kho President and CEO for closing remarks.

我們的問答環節到此結束。現在我想將電話轉回給 Hassan Al Kho 總裁兼執行長致閉幕詞。

Thank you for joining us on the call this morning. And I want to thank all our employees for pushing through this prolonged period of uncertainty. We'll continue to navigate the market environment and deliver value to our stakeholders by focusing on our execution and operational excellence. Thank you.

感謝您今天早上參加我們的電話會議。我要感謝我們所有員工度過了這段漫長的不確定時期。我們將繼續引導市場環境，並透過專注於我們的執行力和卓越運營，為我們的利害關係人創造價值。謝謝。

And this concludes today's conference call. Thank you for participating. You may now disconnect.

今天的電話會議到此結束。感謝您的參與。您現在可以斷開連線。