安森美 (ON) 2025 Q1 法說會逐字稿

Good day, and thank you for standing by. Welcome to the ON Semi first quarter 2025 earnings conference call. (Operator Instructions) Please be advised, today's conference is being recorded. I would now like to hand the conference over to your speaker today, Parag Agarwal. Please go ahead.

您好，感謝您的支持。歡迎參加安森美半導體 2025 年第一季財報電話會議。（操作員指示）請注意，今天的會議正在錄音。現在我想將會議交給今天的發言人 Parag Agarwal。請繼續。

Thank you, Kevin. Good morning, and thank you for joining ON Semi's first quarter of 2025 results conference call. I'm joined today by Hassane El-Khoury, our President and CEO; and Thad Trent, our CFO.

謝謝你，凱文。早安，感謝您參加安森美半導體 2025 年第一季業績電話會議。今天與我一起出席的還有我們的總裁兼執行長 Hassane El-Khoury；以及我們的財務長 Thad Trent。

This call is being webcast on the Investor Relations section of our website at www.onsemi.com. A replay of this webcast, along with our first 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.

本次電話會議將在我們網站 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第一季財報將在本次電話會議結束後約一小時在我們的網站上提供，錄製的網路廣播將在本次電話會議結束後約 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. Reconciliation of these non-GAAP financial measures to the most directly comparable GAAP financial measures and a discussion of certain limitations when using non-GAAP financial measures are included in our earnings release, which is posted separately on our website in the Investor Relations section.

更多資訊已發佈在我們網站的投資者關係部分。我們的收益報告和本簡報包括某些非公認會計準則財務指標。這些非 GAAP 財務指標與最直接可比較的 GAAP 財務指標的對帳以及使用非 GAAP 財務指標時某些限制的討論都包含在我們的收益報告中，該報告在我們網站的「投資者關係」部分單獨發布。

During the course of this conference call, we'll 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本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 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.

我們希望提醒的是，此類聲明受風險和不確定性的影響，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 10-K 表格、10-Q 表格和其他文件以及第一季度收益報告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。

Our estimates 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. Now let me turn it over to Hassane. Hassane?

我們的估計或其他前瞻性陳述可能會發生變化，除非法律要求，否則公司不承擔更新前瞻性陳述以反映實際結果、變化假設或可能發生的其他事件的義務。現在讓我把發言權交給哈桑。哈桑？

Thank you, Parag. Good morning, and thanks to everyone for joining us on the call. Despite a challenging macroeconomic landscape, we delivered Q1 revenue of $1.45 billion and non-GAAP earnings per share of $0.55, both exceeded the midpoint of our guidance with non-GAAP gross margin of 40%.

謝謝你，帕拉格。早安，感謝大家參加我們的電話會議。儘管宏觀經濟情勢充滿挑戰，我們第一季的營收仍達到 14.5 億美元，非公認會計準則每股收益為 0.55 美元，均超過了我們預期的中位數，非公認會計準則毛利率為 40%。

Our focus remains on streamlining our operations through our Fab Right approach and investing in R&D to deliver differentiated products to our customers. Both initiatives aim to deliver gross margin expansion as the market recovers.

我們的重點仍然是透過 Fab Right 方法簡化營運並投資研發，為客戶提供差異化產品。這兩項措施都旨在隨著市場復甦而提高毛利率。

In an uncertain geopolitical environment, our manufacturing network is a source of competitive advantage as we have proactively established a flexible and geographically diversified supply chain for our customers that not only enhances supply resilience, but also reduces our risk exposure.

在不確定的地緣政治環境中，我們的製造網絡是競爭優勢的來源，因為我們主動為客戶建立了靈活且地域多樣化的供應鏈，這不僅增強了供應彈性，而且還降低了我們的風險敞口。

With 19 front and back-end facilities in addition to our external network, we are well positioned to respond effectively to tariff-related concerns. Based on our understanding of current tariff policies, our expectation is that there will be minimal direct impact to our business.

除了外部網路外，我們還擁有 19 個前端和後端設施，能夠有效應對與關稅相關的問題。根據我們對當前關稅政策的理解，我們預計這對我們的業務的直接影響將很小。

At this time, we expect no major issues in servicing our global customer base and are assisting these customers to minimize their impact by optimizing our supply chains. Although we began to see early signs of stabilization with favorable booking trends towards the end of the first quarter in certain parts of the industrial market, inventory digestion persists and customers remain cautious, as I described last quarter.

目前，我們預計在為全球客戶提供服務時不會出現重大問題，並且正在透過優化供應鏈來幫助這些客戶最大限度地減少其影響。儘管我們開始看到工業市場某些領域在第一季末出現良好的預訂趨勢的早期穩定跡象，但正如我上個季度所描述的那樣，庫存消化仍在持續，客戶仍然保持謹慎。

While customers optimize their working capital and the extended downturn, we have used pricing to defend or increase share in strategic areas over the long term and expect low single-digit pricing decline in certain parts of our business.

在客戶優化營運資本和應對長期低迷的同時，我們利用定價來長期捍衛或增加戰略領域的份額，並預計我們業務的某些部分的價格將出現低個位數下降。

On the revenue side, following a strong Q4, our automotive revenue in the first quarter declined 26% sequentially, in line with our expectations. Our industrial revenue was better than expected, decreasing only 4% sequentially. The traditional parts of the industrial market are starting to show signs of recovery. You'll recall this was the first part of industrial to show signs of weakness going into the downturn.

在營收方面，繼第四季表現強勁之後，我們第一季的汽車營收季減 26%，符合我們的預期。我們的工業收入優於預期，僅較上季下降4%。工業市場傳統部分開始出現復甦跡象。你會記得，這是工業領域在經濟衰退中第一個顯露出疲軟跡象的部分。

Medical and Aerospace and Defense also increased sequentially and our AI data center revenue, which we report as part of our other bucket more than doubled year over year in the first quarter. Our differentiated intelligent power and sensing solutions enable us to deliver the performance and power efficiency that our customers need to thrive in their space.

醫療、航空航太和國防業務也環比成長，而我們報告的另一項業務——人工智慧資料中心收入在第一季同比增長了一倍以上。我們差異化的智慧電源和感測解決方案使我們能夠提供客戶在其領域蓬勃發展所需的性能和電源效率。

Through the downturn, we continued investing to diversify our portfolio and deliver differentiation as the market landscape continues to evolve. In automotive, while inventory digestion persisted in the first quarter, leading OEMs are adopting our silicon carbide in their next platform architectures. We have extended our technology leadership with our fourth-generation EliteSiC MOSFET devices based on trench architecture.

在經濟低迷時期，隨著市場格局的不斷演變，我們繼續投資以實現投資組合多元化，並實現差異化。在汽車領域，雖然第一季庫存消化持續進行，但領先的原始設備製造商正在其下一代平台架構中採用我們的碳化矽。我們透過基於溝槽結構的第四代 EliteSiC MOSFET 裝置擴展了我們的技術領先地位。

We have already secured a new 750-volt plug-in hybrid electric vehicle or PHEV designed with one of our major US automotive OEMs. This signals the beginning of a transition from silicon to silicon carbide and new PHEV platforms to extend vehicle range and reach a broader customer base, adding to our penetration in full battery electric vehicles or BEVs where we continue to gain share over incumbents.

我們與美國一家主要汽車原始設備製造商合作設計了一款新型 750 伏特插電式混合動力電動車（PHEV）。這標誌著從矽到碳化矽和新 PHEV 平台的轉變的開始，以延長車輛行駛里程並覆蓋更廣泛的客戶群，增加我們在純電動車或 BEV 領域的滲透率，我們將繼續在該領域獲得相對於現有企業的份額。

Based on the latest electric vehicle launches in China, most of which were unveiled last week at the Shanghai Auto Show, we expect to have our silicon carbide in nearly 50% of the new models. Most of these new models are set to ramp in late 2025, including a PHEV with our silicon carbide.

根據中國最新推出的電動車（其中大部分於上週在上海車展上亮相），我們預計近 50% 的新車型將採用我們的碳化矽。大多數新車型預計將於 2025 年底量產，其中包括一款採用我們碳化矽的 PHEV。

Broader adoption of SiC and PHEVs is expected over the next few years as OEMs redesign hybrid platforms to meet tightening global emission standards and capitalize on the performance offered by silicon carbide technology to extend the range. We're also winning with our image sensors and automotive applications, which continue to be a differentiator for ON Semi.

隨著原始設備製造商重新設計混合動力平台以滿足日益嚴格的全球排放標準，並利用碳化矽技術提供的性能來延長續航里程，預計未來幾年 SiC 和 PHEV 將得到更廣泛的應用。我們的影像感測器和汽車應用也取得了成功，這仍然是安森美半導體的差異化優勢。

The superior performance of our technology makes ON Semi the partner of choice for the top automakers. In the first quarter, we began shipments of our 8 megapixel image sensor to the leading OEM in China with a global footprint where we expect to be designed into ADAS systems for their low, mid, and high-end vehicles. Another OEM based in Asia has selected our 8-megapixel image sensor for their next-generation ADAS platform.

我們技術的卓越性能使安森美半導體成為頂級汽車製造商的首選合作夥伴。第一季度，我們開始向中國領先的 OEM 廠商出貨 800 萬像素影像感測器，該廠商的業務遍布全球，我們預計將被設計到其低端、中端和高端車輛的 ADAS 系統中。另一家位於亞洲的 OEM 廠商已為其下一代 ADAS 平台選擇了我們的 800 萬像素影像感測器。

In AI data center, we continue to make progress in our strategy by leveraging our strengths in intelligent power, silicon carbide and silicon powered devices anchored our strategy and are instrumental in every branch of the Power treatment. At the entry point of power into the data center, we are capitalizing on the transition to modular UPS systems with our EliteSiC power module solutions, delivering higher efficiency and power density than traditional silicon solutions.

在AI資料中心，我們利用在智慧電源方面的優勢，繼續推進我們的策略，碳化矽和矽供電設備是我們策略的基石，並在電源處理的每個分支中發揮重要作用。在電源供應器進入資料中心的入口處，我們利用 EliteSiC 電源模組解決方案，充分利用向模組化 UPS 系統的過渡，提供比傳統矽解決方案更高的效率和功率密度。

We are shipping to the three largest UPS suppliers and with a new platform win that began ramping in Q1, we expect our revenue for UPS to grow between 40% and 50% for the full year over 2024. Within the power supply unit and the battery backup unit, our silicon carbide JFET, combined with our T10 trench fats to create a winning high-power AC to DC solution. SiC JFETs are essential in the transition from 3-kilowatt to 5-kilowatt PSUs required in the next-generation architecture and only ON Semi has a distinctive technology.

我們正在向三大 UPS 供應商發貨，隨著第一季新平台的勝利開始顯現，我們預計 2024 年全年 UPS 收入將成長 40% 至 50%。在電源單元和電池備用單元內，我們的碳化矽 JFET 與我們的 T10 溝槽脂肪相結合，打造出成功的高功率 AC 到 DC 解決方案。SiC JFET 在下一代架構所需的從 3 千瓦到 5 千瓦 PSU 的轉變中至關重要，而且只有安森美半導體擁有獨特的技術。

SiC JFET is superior in these high current solutions because it offers the lowest on resistance in a given footprint. Similarly, our T10 MOSFETs offer industry-leading ultra-low RDS(on) and reduced switching losses. We are ramping with a large US hyperscaler securing the majority share in their PSU and BBU. We are expanding our portfolio of power solutions using a combination of pets and power management ICs to address the intermediate bus conversion and Vicor branch of the Power Tree.

SiC JFET 在這些大電流解決方案中表現出色，因為它在給定的佔位面積內提供最低的導通電阻。同樣，我們的 T10 MOSFET 提供業界領先的超低 RDS(on) 和降低的開關損耗。我們正在與美國大型超大規模企業合作，確保獲得其 PSU 和 BBU 的大部分份額。我們正在擴展我們的電源解決方案組合，使用寵物和電源管理IC的組合來解決中間總線轉換和電源樹的Vicor分支。

With the launch of our Treo platform last November, we introduced our expanding portfolio, including voltage translators, LDOs, ultra-low power analog front end, ultrasonic sensors multi-phase controllers for client and single pair Ethernet controllers for automotive zonal architecture applications.

隨著去年 11 月 Treo 平台的推出，我們推出了不斷擴展的產品組合，包括電壓轉換器、LDO、超低功耗模擬前端、用於客戶端的超音波感測器多相控制器以及用於汽車區域架構應用的單對乙太網路控制器。

Advancements through the Treo platform are enabling us to accelerate development and deliver innovative solutions to our customers across automotive, medical, industrial, and AI data center markets at accretive margins. We have already recognized the vast production revenue from the Treo platform and are well on our way to doubling the number of products available year-over-year as we build the franchise towards delivering on our $1 billion commitment by 2030.

Treo 平台的進步使我們能夠加速開發，並為汽車、醫療、工業和人工智慧資料中心市場的客戶提供創新解決方案，從而提高利潤率。我們已經意識到 Treo 平台的巨大生產收入，並且我們正在朝著實現 2030 年 10 億美元承諾的目標邁進，使可用產品的數量逐年翻一番。

As we look ahead, while the semiconductor industry is navigating complex macroeconomic factors, there is an increasing need for semiconductors to improve power efficiency and sensing capabilities in rapidly evolving sectors like AI data centers, automotive and industrial. During this downturn, we have maintained our strategic direction, and we have continued to deliver value to our customer base on the performance of our technology.

展望未來，半導體產業在應對複雜的宏觀經濟因素的同時，人工智慧資料中心、汽車和工業等快速發展的產業對半導體提高電源效率和感測能力的需求日益增加。在經濟低迷時期，我們始終堅持策略方向，並持續以技術優勢為客戶創造價值。

We are focused on operational excellence and are well positioned for recovery with gross margin expansion as we continue to realize the benefit of our fab right initiatives. Let me now turn it over to Thad to give you more details on our results and approach going into the second quarter.

我們專注於卓越運營，隨著我們繼續實現晶圓廠正確舉措的益處，我們已做好充分準備，透過毛利率擴大實現復甦。現在，讓我將時間交給 Thad，讓他向您詳細介紹我們第二季的業績和方法。

Thanks, Hassan. While it was a challenging start to the year, continuing to focus on operational excellence has allowed us to drive cost out of our operations to focus on free cash flow generation. We exceeded the midpoint of our guidance with revenue of $1.45 billion and non-GAAP earnings per share of $0.55, while Q1 free cash flow increased 72% year over year.

謝謝，哈桑。雖然今年的開局充滿挑戰，但繼續專注於卓越營運使我們能夠降低營運成本，專注於創造自由現金流。我們的營收達到 14.5 億美元，非公認會計準則每股收益為 0.55 美元，超出了預期中位數，而第一季自由現金流年增 72%。

We increased our share buyback to 66% of free cash flow, repurchasing $300 million of shares in the first quarter. With our large capital investment behind us, we are confident in our liquidity and strong balance sheet, and believe returning capital to shareholders is the best use of capital.

我們將股票回購額度提高至自由現金流的 66%，第一季回購了價值 3 億美元的股票。憑藉我們大量的資本投資，我們對我們的流動性和強勁的資產負債表充滿信心，並相信向股東返還資本是資本的最佳用途。

For 2025, we intend to increase our share repurchase to 100% of free cash flow. As of today, there is approximately $1.5 billion remaining on our repurchase authorization and we expect free cash flow will remain strong with the cost control actions we have taken, aggressive working capital management, and limited capital investments.

到 2025 年，我們打算將股票回購額度提高至自由現金流的 100%。截至今天，我們的回購授權還剩下約 15 億美元，我們預計，透過採取成本控制措施、積極的營運資本管理和有限的資本投資，自由現金流將保持強勁。

Last quarter, I told you that we would be moving aggressively and with urgency and making structural changes to expand gross and operating margins and generate strong free cash flow in the future. In the first quarter, we took two significant steps to benefit the company in the long term and better position us for a market recovery. First, as part of our Fab Right initiative, we reduced our internal Fab capacity by 12% through our manufacturing realignment program to lower our fixed cost structure.

上個季度，我告訴你們，我們將採取積極、緊急的行動，進行結構性變革，以擴大毛利率和營業利潤率，並在未來產生強勁的自由現金流。第一季度，我們採取了兩項重要舉措，使公司長期受益，並為市場復甦做好準備。首先，作為 Fab Right 計畫的一部分，我們透過製造業重組計畫將內部晶圓廠產能減少了 12%，以降低固定成本結構。

These actions will reduce our ongoing depreciation costs by approximately $22 million on an annualized basis, and we expect to see the benefit on the income statement in Q4 of this year. We will continue to rationalize our manufacturing footprint, driving gross margin expansion towards our long-term target and providing greater leverage in our business model as the market recovers.

這些措施將使我們的持續折舊成本將按年減少約 2,200 萬美元，我們預計今年第四季的損益表將反映這一效益。隨著市場復甦，我們將繼續合理化我們的製造佈局，推動毛利率擴張以實現我們的長期目標，並在我們的商業模式中提供更大的槓桿。

The second action in Q1 was a company-wide restructuring initiative. We made the difficult decision to reduce our global workforce by 9% and further reduce our non-manufacturing sites, driving sustainable efficiencies across the company. These actions are expected to generate approximately $25 million of savings in Q2 versus Q1 with an additional $5 million per quarter of savings realized in the second half of the year.

第一季的第二項行動是全公司範圍的重組計劃。我們做出了艱難的決定，將全球員工人數減少 9%，並進一步減少非製造工廠，從而推動整個公司的可持續效率。預計這些措施將使第二季比第一季節省約 2,500 萬美元，下半年每季還將額外節省 500 萬美元。

These actions are structural rather than temporary and will drive incremental leverage in both gross and operating margins for the long term. Coupled with our lower capital intensity, we remain on track to our targeted 25% to 30% free cash flow margin for the year.

這些舉措是結構性的而非暫時性的，並將在長期內推動毛利率和營業利潤率的增量槓桿。加上我們較低的資本密集度，我們仍有望實現今年 25% 至 30% 的自由現金流利潤率目標。

Turning to financial results for the quarter. The slowdown in demand across all end markets resulted in revenue of $1.45 billion, above the midpoint of our guidance. Automotive and industrial accounted for 80% of revenue in the first quarter.

談到本季的財務業績。所有終端市場的需求放緩導致收入達到 14.5 億美元，高於我們預期的中位數。汽車和工業佔第一季營收的80%。

Automotive revenue was $762 million, which decreased 26% sequentially, driven by weakness in Europe and seasonality in Asia, mainly in China due to Chinese New Year. Revenue for the Industrial was $400 million, down 4% sequentially, while our medical and aerospace and defense businesses continue to grow, traditional industrial remained stable.

汽車業務營收為 7.62 億美元，季減 26%，主要受歐洲市場疲軟以及亞洲季節性因素（主要是中國農曆新年）的影響。工業業務收入為 4 億美元，季減 4%，而我們的醫療、航空航太和國防業務持續成長，傳統工業業務保持穩定。

Outside of auto and industrial, our other businesses increased 1% quarter over quarter mainly driven by client computing business, offset by normal seasonality in wireless. Looking at the first quarter split between the business units. Revenue for the Power Solutions Group, or PSG, was $645 million, a decrease of 20% quarter over quarter and 26% year over year.

除汽車和工業外，我們的其他業務環比增長 1%，主要受客戶端計算業務的推動，但無線業務的正常季節性影響有所抵消。看看第一季各業務部門的分工。電源解決方案集團（PSG）的營收為 6.45 億美元，季減 20%，年減 26%。

Revenue for the analog and mixed signal group, or AMG was $566 million, a decrease of 7% quarter-over-quarter and a decrease of 19% year over year. Revenue for the intelligent sensing group, or ISG, was $234 million, a 23% decrease quarter-over-quarter. ISG revenue decreased 20% over the same quarter last year. Turning to gross margin in the first quarter. GAAP gross margin was 20.3%, which includes restructuring charges as a part of our manufacturing realignment program.

類比和混合訊號集團（AMG）的收入為 5.66 億美元，環比下降 7%，年減 19%。智慧感測集團（ISG）的收入為 2.34 億美元，季減 23%。ISG 營收較去年同期下降了 20%。談談第一季的毛利率。GAAP 毛利率為 20.3%，其中包括作為製造業調整計畫一部分的重組費用。

Non-GAAP gross margin was 40%, down 530 basis points sequentially and 590 basis points from the quarter a year ago. Non-GAAP gross margin declined in line with guidance due to the lower revenue and under absorption with lower utilization levels over the last few quarters.

非公認會計準則毛利率為 40%，較上一季下降 530 個基點，較去年同期下降 590 個基點。由於過去幾季收入較低、利用率較低，導致吸收不足，非公認會計準則毛利率與預期一致下降。

Manufacturing utilization increased slightly from 59% in Q4 to 60%, which does not include any impact from our capacity reduction actions. Now let me give you some additional numbers for your models. GAAP operating expenses for the first quarter were $868 million as compared to $328 million in the first quarter of 2024.

製造利用率從第四季的 59% 小幅上升至 60%，這還不包括我們削減產能行動的影響。現在讓我為你們的模型提供一些額外的數字。第一季的 GAAP 營運費用為 8.68 億美元，而 2024 年第一季為 3.28 億美元。

GAAP operating expenses increased sequentially as it includes restructuring charges of $539 million. Non-GAAP operating expenses were $315 million compared to $314 million in the quarter a year ago. GAAP operating margin for the quarter was negative 39.7% and non-GAAP operating margin was 18.3%. Our GAAP tax rate was 13.5% and non-GAAP tax rate was 16%. Diluted GAAP earnings per share for the first quarter was a loss of $1.15 as compared to earnings of $1.04 in the quarter a year ago.

由於包括 5.39 億美元的重組費用，GAAP 營運費用較上季增加。非公認會計準則營運費用為 3.15 億美元，而去年同期為 3.14 億美元。本季 GAAP 營業利益率為-39.7%，非 GAAP 營業利潤率為 18.3%。我們的 GAAP 稅率為 13.5%，非 GAAP 稅率為 16%。第一季稀釋 GAAP 每股收益為虧損 1.15 美元，去年同期每股收益為 1.04 美元。

Non-GAAP earnings per share was $0.55 as compared to $1.08 in Q1 of 2024. GAAP diluted share count was 421 million shares, and our non-GAAP diluted share count was 422 million shares.

非公認會計準則每股收益為 0.55 美元，而 2024 年第一季為 1.08 美元。以 GAAP 計算，稀釋後股份數為 4.21 億股；以非 GAAP 計算，稀釋後股份數為 4.22 億股。

Turning to the balance sheet. Cash and short-term investments was $3 billion with total liquidity of $4.1 billion, including $1.1 billion undrawn on our revolver. Cash from operations was $602 million, and free cash flow increased 72% year over year to $455 million, representing 31% of revenue.

轉向資產負債表。現金和短期投資為 30 億美元，總流動資金為 41 億美元，其中包括未動用的 11 億美元循環信貸額度。營運現金流為 6.02 億美元，自由現金流年增 72% 至 4.55 億美元，佔營收的 31%。

Capital expenditures in Q1 were $147 million. Inventory was down quarter-over-quarter on a dollar basis by $164 million and increased by 3 days to 219 days. This includes 100 days of bridge inventory to support fab transitions in silicon carbide. We expect this inventory to peak in the second quarter. Excluding the strategic builds, our base inventory is healthy at 119 days.

第一季的資本支出為 1.47 億美元。庫存以美元計算環比下降 1.64 億美元，庫存週轉天數增加 3 天至 219 天。這包括 100 天的橋樑庫存，以支持碳化矽晶圓廠的轉型。我們預計該庫存將在第二季達到高峰。除去策略性建設，我們的基本庫存為 119 天，狀況良好。

Distribution inventory declined another $27 million with weeks of inventory increasing to 10.1 weeks versus 9.6 weeks in Q4. Our plan to support the mass market has continued to pay dividends, resulting in another 29% increase in customer count year over year.

分銷庫存又減少了 2,700 萬美元，庫存週數從第四季的 9.6 週增加到 10.1 週。我們支持大眾市場的計畫繼續帶來回報，導致客戶數量年增 29%。

We do not expect a material change in the weeks of inventory over the near term. Looking forward, let me provide you the key elements of our non-GAAP guidance for the second quarter. As a reminder, today's press release contains the table detailing our GAAP and non-GAAP guidance.

我們預計短期內庫存週數不會有重大變動。展望未來，讓我向您提供我們第二季非公認會計準則指引的關鍵要素。提醒一下，今天的新聞稿包含詳細說明我們的 GAAP 和非 GAAP 指南的表格。

First, our guidance is inclusive of our current expectation that there is no material direct impact of tariffs announced as of today. Given our current visibility, we anticipate Q2 revenue will be in the range of $1.4 billion to $1.5 billion. Our non-GAAP gross margin is expected to be between 36.5% and 38.5%, which includes share-based compensation of $8 million.

首先，我們的指引包含了我們目前的預期，即截至今天宣布的關稅不會產生重大直接影響。鑑於我們目前的前景，我們預計第二季的營收將在 14 億美元至 15 億美元之間。我們的非公認會計準則毛利率預計在 36.5% 至 38.5% 之間，其中包括 800 萬美元的股權激勵費用。

Our second quarter guide includes 900 basis points of non-cash under-absorption charges, and we expect utilization to decline slightly in Q2. Approximately half of the sequential gross margin decline is from the increased under-absorption in Q2, and the remaining is attributable to unfavorable pricing as we are seeing low single-digit price declines.

我們第二季的指南包括 900 個基點的非現金吸收不足費用，我們預計第二季利用率將略有下降。毛利率環比下降約有一半是由於第二季度的吸收不足增加，其餘部分則歸因於不利的定價，因為我們看到價格出現了低個位數的下降。

Moving on to non-GAAP operating expenses. We expect OpEx to be in the range of $285 million to $300 million, including share-based compensation of $29 million. We expect our non-GAAP other income to be a net benefit of $11 million with our interest income exceeding interest expense.

繼續討論非 GAAP 營運費用。我們預計營運支出將在 2.85 億美元至 3 億美元之間，其中包括 2,900 萬美元的股權激勵費用。我們預計，非公認會計準則下的其他收入將實現 1,100 萬美元的淨收益，其中利息收入將超過利息支出。

We expect our non-GAAP tax rate to be approximately 16% and our non-GAAP diluted share count is expected to be approximately 419 million shares. This results in non-GAAP earnings per share to be in the range of $0.48 to $0.58.

我們預計我們的非公認會計準則稅率約為 16%，我們的非公認會計準則稀釋股數預計約為 4.19 億股。這使得非公認會計準則每股收益介於 0.48 美元至 0.58 美元之間。

We expect capital expenditures in the range of $70 million to $90 million. We took difficult steps in the first quarter to rightsize and refocus the company on the key drivers to achieve our long-term ambitions. By continuing to lean into our fab right strategy and focus on higher value product lines, we are committing to building a solid foundation that will be a tailwind when the macro environment becomes more robust.

我們預計資本支出在 7,000 萬美元至 9,000 萬美元之間。我們在第一季採取了艱難的措施來調整公司規模並重新將重點放在實現長期目標的關鍵驅動因素上。透過繼續依靠我們的晶圓廠正確策略並專注於更高價值的產品線，我們致力於建立一個堅實的基礎，當宏觀環境變得更加強勁時，這將成為順風。

In the meantime, we will remain cautious in our approach and position ourselves to capitalize in the future on strong customer relationships with our intelligent power and sensing platforms. With that, I'll turn the call back over to Kevin to open up the line for Q&A.

同時，我們將繼續保持謹慎的態度，並在未來利用我們智慧電源和感測平台與客戶建立的牢固關係。說完這些，我會把電話轉回給凱文，讓他開始問答環節。

(Operator Instructions)

（操作員指示）

Ross Seymore, Deutsche Bank.

德意志銀行的羅斯·西摩。

I guess my first one on the revenue side of things. You guys have been consistent with your conservatism, but the flat guide, it seems to be a bit below the kind of up low single to high single-digit sequential growth that your peers are seeing. Is there anything structurally different at ON that would keep you from experiencing the same sort of upturn that others have started to allude to?

我想這是我在收入方面的第一個問題。你們一直堅持保守主義，但持平的指導似乎略低於你們同行所看到的從低個位數到高個位數的連續增長。ON 在結構上是否存在什麼不同，以致於無法經歷其他人已經開始提到的那種好轉？

Hey, Ross, no, it's not really structural. It's really depending on the end markets that we versus our peers are exposed to. As you know, we have a big focus on automotive for EV specifically. EV outside of China is still -- has not seen the recovery. China, as I've mentioned, we've gotten a lot of the wins.

嘿，羅斯，不，這並不是真正的結構性問題。這其實取決於我們與同行所接觸的終端市場。如您所知，我們非常重視汽車，特別是電動車。中國以外的電動車仍未復甦。中國，正如我所提到的，我們取得了許多勝利。

That's where most of the ramp is happening in second half of 2025. So other than just within the markets, whether you're broad or more focused on submarkets like we are for the EV, that's the only thing I could point to.

2025 年下半年，大部分成長將發生在那裡。因此，除了市場內部之外，無論您是廣泛還是更專注於子市場（例如我們對電動車的關注），這是我唯一可以指出的事情。

And for my follow-up, perhaps for that on the gross margin side of things. the charge that you took and then generally looking forward, how -- what are the metrics we should use to think about gross margin? You've been very overt with your second quarter what do we think about, say, second half or relative to revenue growth? How much of it is just utilization-based, absorption based? Or are there many idios that on has? Just any metrics to help us hone in on that would be great.

我的後續問題可能是關於毛利率方面的問題。您收取的費用以及整體展望，我們應該使用什麼指標來考慮毛利率？您已經非常明確地介紹了第二季的情況，那麼我們認為下半年或相對於收入成長的情況如何呢？其中有多少只是基於利用、基於吸收？或者說，這上面有很多愚蠢的人？任何能夠幫助我們實現這一點的指標都是很好的。

Yeah. So as I mentioned, we took about 12% of our capacity offline and that was late in the first quarter. So you didn't really see much of an impact of that in the first quarter. As we go forward with this new footprint, the incremental -- as utilization goes up for every point of utilization, it's now 25 basis points to 30 basis points of gross margin improvement. Previously, that was 20 to 25.

是的。正如我所提到的，我們在第一季末就下線了大約 12% 的產能。因此，你在第一季並沒有真正看到它帶來的巨大影響。隨著我們推進這項新業務，利用率每提高一個點，毛利率就會提高 25 個基點到 30 個基點。此前，這個數字是 20 到 25。

So it's now increased because of taking that capacity offline. As I mentioned, there's about $22 million of depreciation savings on an annualized basis. We'll start to see that hitting the P&L in Q4 just because of the lag with the inventory bleed. It takes time for that to hit. But as we go forward, the gross margin expansion in the short term is all about utilization.

因此，由於將該容量離線，現在它有所增加。正如我所提到的，按年計算，折舊節省約為 2200 萬美元。我們將開始看到，由於庫存流失的滯後，第四季度的損益將受到影響。要達到這個目標需要時間。但隨著我們不斷前進，短期內的毛利率擴張完全取決於利用率。

So as the market recovers, utilization will go up. Now we are expecting utilization to go down slightly here in Q2. But if we -- based on early signs of stabilization and recovery, we're hoping that we'll see some improvement later in the year. And then we'll see that impact hitting us in late '25 and in '26.

因此隨著市場復甦，利用率將會上升。現在我們預計第二季的使用率將略有下降。但如果我們——基於穩定和復甦的早期跡象，我們希望在今年稍後看到一些改善。然後我們將在 2025 年末和 2026 年看到這種影響。

Vivek Arya, Bank of America.

美國銀行的維韋克·艾瑞亞（Vivek Arya）。

I had a question on pricing. I think Hassane in the past, you had mentioned you're pricing to value, right, and suggested that pricing could stay kind of more resilient. But now I think you're suggesting that the pricing could be a headwind, that it could go down low single digit. And I'm curious, what has changed if anything, is it a geographic issue? Is it a product?

我對定價有疑問。我認為 Hassane 過去曾提到您的定價是基於價值的，正確的，並且表示定價可以保持更強的彈性。但現在我認為您暗示定價可能會成為一種阻力，價格可能會下降個位數。我很好奇，如果有的話，是什麼變化了，是地理問題嗎？它是一個產品嗎？

Is it a competitive headwind? Just what has changed on the pricing side? And how much of this flat Q2 sales is because of pricing? And then how much is pricing a headwind when we look at the back half of the year.

這是競爭的逆風嗎？定價方面到底發生了哪些變化？第二季銷售持平有多少是因為定價造成的？那麼，當我們展望下半年時，定價阻力有多大？

Yeah. So what changed, obviously, we've been in this downturn. It's a very extended downturn, and we have to react to market condition or competitive threats that some of our competitors are using pricing, and we are going to use the pricing to defend and increase share in forward-looking programs.

是的。那麼，顯然發生了什麼變化，我們正處於經濟低迷之中。這是一次持續時間很長的低迷期，我們必須對市場狀況或一些競爭對手利用定價手段進行的競爭威脅做出反應，我們將利用定價手段來捍衛和增加前瞻性計劃的份額。

So I don't see that as my comments as going back to the old pricing ways where it's the first quarter, obviously, it's not in the first quarter for us, it's the second. So it's not a plan that I can give you what it is by quarter or what it is for the second half.

因此，我不認為我的評論會回到第一季的舊定價方式，顯然，對我們來說不是第一季度，而是第二季度。因此，我無法告訴您每個季度的具體計劃或下半年的具體計劃。

We're using it as a tool. We have forward-looking programs that are actually beneficial from a gross margin perspective that we will defend or even penetrate and increase share based on pricing decisions we make today.

我們將其用作一種工具。我們擁有前瞻性的計劃，這些計劃實際上從毛利率的角度來看是有益的，我們將根據我們今天做出的定價決策來捍衛甚至滲透並增加份額。

So we are going to take it as a tool, but it is a different environment we are operating in. It's not geographical. It is not specific to a product. It's really what I would call is a more opportunistic approach to it. From the revenue side, I wouldn't read any more into from the revenue in Q2 -- it's not the revenues specifically or the top line is more on demand driven. It is not really on the pricing impact specifically.

因此我們將把它當作一種工具，但我們所處的營運環境是不同的。這不是地理問題。它並不特定於某種產品。我實際上認為這是一種更具機會主義的方法。從收入方面來看，我不會對第二季的收入做出更多解讀——這不是具體的收入，也不是收入更多地受到需求驅動。這其實並不是對定價的具體影響。

Okay. And then my follow-up question, I think, Thad, you mentioned something on gross margin. When we look at Q2, the low end is 36.5%. And I think you mentioned that some of it was because of under-absorption and some of it was pricing. So if we start to hypothetically see sales growth from Q3 and Q4 what should be the new range of gross margins that we should be thinking about for the back half of the year? Like even a broad range, I think, would be useful in kind of aligning the models.

好的。然後是我的後續問題，我想，Thad，你提到了毛利率的問題。當我們看第二季時，低端是 36.5%。我認為您提到過，部分原因是吸收不足，部分原因是定價。因此，如果我們假設第三季和第四季的銷售額將會成長，那麼我們應該考慮下半年的新毛利率範圍是多少？我認為，即使是廣泛的範圍也有助於調整模型。

Yeah. So as I was saying earlier, the impact of utilization is about a two-quarter delay for it to hit the P&L, right, as you've got to burn through roughly 200 days of inventory to see that benefit. So it takes about two quarters for that to impact.

是的。因此，正如我之前所說的那樣，利用率的影響大約需要兩個季度才能體現在損益表中，因為你必須消耗掉大約 200 天的庫存才能看到這一好處。因此，大約需要兩個季度才能產生影響。

Given that we're expecting utilization to step down here slightly in Q2, that will be a little bit of a headwind. So if you think about the rest of this year, we're likely going to be kind of in the -- let's use the midpoint of our guidance, kind of in this range.

鑑於我們預計第二季利用率會略有下降，這將是一個小小的阻力。因此，如果你考慮今年剩餘的時間，我們可能會處於某種程度上 - 讓我們使用指導的中點，大致在這個範圍內。

Again, we think this is temporary, it's utilization-driven. If you take that 900 basis points of under absorption, you add it to our guide, that gives you an indication of kind of where our standard margins in and kind of where we think sustainability is in the short term.

再次強調，我們認為這只是暫時的，是由利用率驅動的。如果您將這 900 個基點的吸收不足添加到我們的指南中，這將為您指明我們的標準利潤率在哪裡，以及我們認為短期永續性在哪裡。

But for the remainder of this year, I think we're going to be kind of in this kind of tight range here with improvement coming assuming that utilization does improve as the market recovers later in the second half. So I think there's a nice tailwind going forward. I think for the next couple of quarters, we are kind of in this, let me call it, 37.5%, 38% range, just depending on utilization.

但就今年剩餘時間而言，我認為我們將處於這種狹窄的範圍內，假設利用率隨著下半年後期市場復甦而提高，情況就會有所改善。所以我認為未來會有好的順風。我認為在接下來的幾個季度裡，我們的成長率大概在 37.5% 到 38% 之間，這取決於利用率。

Chris Danely, Citi.

花旗銀行的克里斯丹尼利 (Chris Danely)。

So given the pricing environment and you're saying you're using pricing to defend market share. Can you just give us an update on that $350 million to $400 million non-core business that you were going to exit. Is that still the plan? Has the size of that changed how rapidly do you think you're going to exit that this year? Or will you try and defend your market share and use pricing on that business?

因此，考慮到定價環境，您說您正在使用定價來捍衛市場份額。您能否向我們介紹一下您即將退出的價值 3.5 億至 4 億美元的非核心業務的最新情況？這還是計劃嗎？它的規模有變化嗎？您認為今年退出的速度有多快？或者您會嘗試捍衛自己的市場份額並對該業務進行定價？

Yeah. So what I -- specifically on the pricing, we still expect to exit that. We've always said, this is more market dependent than anything else. I do include some of the pricing in there just to offset some of the utilization in the short term, but it is not on that specific, what I would call the non-core exits that we are planning. We're not defending it to the point where we want to keep it. You can think about it as it helps with utilization. We'll modulate it in the short term, but our expectation remains.

是的。所以我—特別是在定價方面，我們仍然希望退出。我們一直說，這比其他任何事情都更依賴市場。我確實在其中包括了一些定價，只是為了在短期內抵消一些利用率，但這並不是我們正在計劃的具體的非核心退出。我們並沒有捍衛它到我們想要保留它的程度。您可以考慮一下，因為它有助於利用。我們會在短期內對其進行調整，但我們的期望仍然不變。

Yeah. And Chris, I would add, in the first quarter, we walked away from about $50 million of that business. We still think that's that $300 million is probably the likely number for the year. It will be market dependent. If we can hold margins on that in a favorable range, we will keep it. So I think it's really going to be dependent on what -- how the market plays out and the recovery plays out.

是的。克里斯，我想補充一下，在第一季度，我們放棄了約 5000 萬美元的業務。我們仍然認為 3 億美元可能是今年的可能數字。這將取決於市場。如果我們能夠將利潤率保持在有利的範圍內，我們就會保留它。所以我認為這實際上將取決於市場如何表現以及復甦如何表現。

Okay. Great. And for my follow-up, it sounds like there's some nice momentum on silicon carbide exiting this year. Any update on I guess, the long-term growth rate you're expecting there? And then how about the gross margin range? Do you still think you can get that business to 50%.

好的。偉大的。就我的後續情況而言，聽起來碳化矽今年的退出勢頭良好。我猜您預期的長期成長率有什麼更新嗎？那麼毛利率範圍如何？您還認為您可以將該業務的成長率提高到 50% 嗎？

Yeah. From a long-term range, obviously, we're not guiding. We're still expecting growth. We're expecting to be the market share leader in that business based on the traction we've had today and really the wins in the outlook not just the ones we're ramping in 2025. I mentioned some of the trends for going to the plug-in hybrids with silicon carbide.

是的。從長遠來看，顯然我們不會提供指導。我們仍然期待成長。基於我們目前所取得的進展以及前景的真正勝利，而不僅僅是我們在 2025 年所取得的進展，我們有望成為該業務的市場份額領導者。我提到了使用碳化矽的插電式混合動力車的一些趨勢。

We have been penetrating that, which will ramp in the outer years. So the outlook remains unchanged. We're still very bullish about the prospects of our silicon carbide within that market and the position we will keep and gained. As far as gross margin. We do believe that the gross margin today, the gross margin is really more impacted by the underutilization.

我們一直在深入研究這一點，未來幾年這一領域將會蓬勃發展。因此前景保持不變。我們仍然非常看好我們的碳化矽在該市場中的前景以及我們將保持和獲得的地位。就毛利率而言。我們確實相信，今天的毛利率，毛利率實際上受到利用不足的影響更大。

If you recall, we added the capacity for the market that didn't really turn out. We modulated a little bit. the capacity that we kept online. But from a standard margin perspective, we are still pricing on value. And as we grow into the capacity that we installed, we still believe we have the best cost structure in the industry.

如果你還記得的話，我們增加了市場容量，但結果卻不然。我們做了一點調整。我們保持在線的容量。但從標準利潤率的角度來看，我們仍然根據價值定價。隨著我們安裝的產能不斷增長，我們仍然相信我們擁有業內最佳的成本結構。

Joshua Buchalter, TD Cowen.

約書亞·布查爾特（Joshua Buchalter），TD Cowen。

For my first one, I kind of wanted to look backwards. I mean entering the year, you guys called out, I think demand had gotten appreciably worse? It looked like in the quarter, things tracked to where you were expecting. But your peers you didn't really flag all that much of a demand deterioration in the quarter. Can you maybe look back and reflect on what's happened over the last few months, in particular, for ON Semi?

對於我的第一個作品，我有點想回顧一下。我的意思是，進入今年以來，你們喊道，我認為需求已經變得明顯惡化了？看起來，本季的情況正如您所預期的那樣。但您的同行並沒有真正注意到本季需求出現如此大的惡化。您能否回顧一下過去幾個月發生的事情，特別是對於安森美半導體而言？

And in particular, was this in your view, an inventory issue that you guys needed to clean up? Or were there legitimate pockets of demand that weakened.

具體來說，您認為這是需要解決的庫存問題嗎？或是否存在一些合法的需求減弱的情況。

Yeah. Look, the quarter played out pretty tightly. I mean, to what we expected. We were above the midpoint of our guidance. the industrial was more favorable than we expected.

是的。看起來，本季的進展相當順利。我的意思是，符合我們的期望。我們已超出預期的中點。工業狀況比我們預期的要好。

Automotive was right on to what we expected going into the quarter. And our other business, a small piece of a small piece of the total, was favorable as well, being up 1%. So I think in terms of what we saw within the quarter, it pretty much came in line with what we expected. We did see some early signs of stabilization in the industrial market, specifically like the traditional industrial side of the of that business. There are some pockets that are still down.

汽車產業的表現完全符合我們對本季的預期。我們的其他業務，只佔總業務的一小部分，也表現良好，成長了 1%。因此，我認為就我們在本季看到的情況而言，它與我們的預期基本一致。我們確實看到了工業市場的一些早期穩定跡象，特別是像該業務的傳統工業方面。還有一些口袋還在下垂。

But we took that as a favorable sign coming out of the quarter. There is uncertainty given the tariff situation, but there's some early signs of stabilization, which gives us some hope.

但我們認為這是本季的一個利好訊號。關稅情況存在不確定性，但有一些早期穩定跡象，這給了我們一些希望。

Okay. Then I was also hoping for a little more, can you maybe explain a bit of what's in the $283 million restructuring charge that was in gross margin. Was that primarily inventory write-downs. And can you speak to sort of how you're thinking about your on-book and channel inventory now?

好的。然後我還希望了解更多，您能否解釋一下毛利率中 2.83 億美元的重組費用是多少。這主要是庫存減記嗎？您能否談談您現在對現有書籍和通路庫存的看法？

Yeah. Okay. There's a lot there. So on the restructuring, we did a restructuring and then we also did a capacity reduction as well, so an impairment of some of our assets.

是的。好的。那裡有很多東西。因此，在重組方面，我們進行了重組，然後也進行了產能削減，因此我們的部分資產遭受了減損。

What hit the gross margin line was as a part of the manufacturing realignment program, we did take inventory out as we took capacity out in some of the areas that we're defocusing there. and is our manufacturing footprint change.

影響毛利率的原因是，作為製造業重組計劃的一部分，我們確實清理了庫存，因為我們在一些不再關注的領域中削減了產能。以及我們的製造足跡變化。

So we had some consumables and other inventory that we took as a part of that charge. What hit the OpEx line, obviously, was restructuring charges associated with more of the restructuring activity rather than the fab right activities.

因此，我們將一些消耗品和其他庫存作為該費用的一部分。顯然，影響營運支出的是與重組活動而非晶圓廠相關活動相關的重組費用。

On the distribution, there's no change in our distribution. Obviously, we're taking a very disciplined approach to channel inventory. Although the weeks are, call it, flattish around the 10, which is the sweet spot of where we believe we're going to be long term, we said between 9 and 11 weeks, we actually drain dollars out of the channel as we remain cautious on the outlook.

在分佈方面，我們的分佈沒有改變。顯然，我們對通路庫存採取了非常嚴謹的方法。儘管我們認為第 10 週左右的走勢比較平穩，但從長期來看，這是最佳點位，我們說過，在第 9 週到第 11 週之間，我們實際上會將美元從該頻道中抽走，因為我們對前景保持謹慎。

Obviously, for our distribution inventory, we're always cautious not to ship in more than what we can see demand for and we'll remain disciplined on that. So no change or no impact to the DC inventory.

顯然，對於我們的分銷庫存，我們始終謹慎，不會運送超過我們所能預見的需求的數量，並且我們將對此保持紀律。因此，對 DC 庫存沒有變化或影響。

Yeah. And then on the inventory and the balance sheet, we have 219 days -- it did go down by $164 million. Part of that is the write-off that we took as a part of the restructuring activities. But if you look at our base inventory, exclude the fab transitions and silicon carbide, it's at 119 days. So it's healthy.

是的。然後在庫存和資產負債表上，我們有 219 天 - 它確實下降了 1.64 億美元。其中一部分是我們作為重組活動的一部分進行的註銷。但如果你看看我們的基本庫存，排除晶圓廠轉型和碳化矽，它是 119 天。所以它是健康的。

Our target has always been 100 to 120 days. So we're within that target. I expect inventory will be peaking here in the second quarter and will start to drain in Q3 and Q4 as the Fab transitions continue to get executed, and we stop buying from the divested fabs that we divested a few years ago. So inventory should be peaking here.

我們的目標一直是100到120天。所以我們達到了這個目標。我預計庫存將在第二季度達到峰值，並將在第三季和第四季開始減少，因為晶圓廠轉型仍在繼續進行，而且我們不再從幾年前剝離的晶圓廠購買產品。因此庫存應該在這裡達到峰值。

Blayne Curtis, Jefferies.

布萊恩‧柯蒂斯，傑富瑞集團。

This is Crawford Clarke on for Blayne Curtis with Jefferies. And congrats on the results. I wanted to ask about the industrial segment, I think you've talked a little bit about it thus far in response to some other questions, but it sounds like some of your competitors are talking about maybe a little bit more of a broad-based recovery in their end markets. I know you mentioned some strength in aerospace events and Medical, but I was hoping you might be able to put a finer touch on some of the trends you're seeing outside of those two subsegments.

這是傑富瑞 (Jefferies) 的布萊恩柯蒂斯 (Blayne Curtis) 的克勞福德克拉克 (Crawford Clarke)。並對所取得的成果表示祝賀。我想問一下工業領域的情況，我想您目前已經在回答其他一些問題時談到了這一點，但聽起來您的一些競爭對手正在談論他們的終端市場可能出現更廣泛的復甦。我知道您提到了航空航太活動和醫療領域的一些優勢，但我希望您能夠更詳細地介紹您在這兩個子領域之外看到的一些趨勢。

Yeah, obviously, I can only focus and comment on the markets or the submarkets in industrial we're focusing on strategically and not as a broad base because we're not a broad-based industrial supplier. So I would say outside of some of the energy infrastructure, everything is up.

是的，顯然，我只能關注和評論我們策略上關注的市場或工業子市場，而不是廣泛的基礎，因為我們不是廣泛的工業供應商。所以我想說，除了一些能源基礎設施之外，一切都在上漲。

So I would say, broadly, it is starting to see signs of recovery. That's what Thad said, including some of the what we call the consumer side of industrial. And if you recall, that was the first one that actually went into the downturn.

因此我想說，總體而言，它開始出現復甦的跡象。這就是薩德所說的，包括我們所說的工業的消費面。如果你還記得的話，這是第一個真正陷入衰退的公司。

So we're starting to see signs of recovery there. So from a green shoot and a stabilization perspective, we're actually more positive about industrial now. There's a few pockets. But again, there's still uncertainty given the -- just the geopolitical environment and the tariffs. Outside of that, we do see stabilization and we do see signs of that recovery.

因此我們開始看到那裡復甦的跡象。因此，從復甦和穩定的角度來看，我們現在對工業的看法實際上更加樂觀。有幾個口袋。但同樣，考慮到地緣政治環境和關稅，仍然存在不確定性。除此之外，我們確實看到了穩定，也看到了復甦的跡象。

Got it. Very helpful. And then if you could just talk a little bit about your expectations for demand within the automotive segment by geography. I know people are calling out strength in China, obviously, first quarter was a little bit tougher given some trends related to Chinese New Year. But if you could talk again about your expectations for demand in auto.

知道了。非常有幫助。然後，您可以稍微談談您對不同地區汽車領域需求的預期嗎？我知道人們都在稱讚中國的實力，但顯然，考慮到與中國新年有關的一些趨勢，第一季會更加艱難。但是如果您可以再次談談您對汽車需求的預期。

Yeah, same thing. We do see strength in China automotive, specifically driven by EVs and for us, it's driven by new ramps for silicon carbide, as I've mentioned, coming out of the Shanghai Auto Show, we do see the models that we are in the models that are going to production. We said we're about 50% of these new models that are ramping. We expect that to start ramping in the second half, and therefore, our automotive market, China specifically.

是的，同樣的事情。我們確實看到了中國汽車市場的強勁表現，特別是由電動車推動的，而對於我們來說，這是由碳化矽的新增長所驅動的，正如我所提到的，在上海車展上，我們確實看到了即將投入生產的車型。我們說過，這些新車型中約有 50% 正在加速生產。我們預計這一數字將在下半年開始上升，因此我們的汽車市場，特別是中國市場，將會開始上升。

Other regions, we'll see -- but from a positive outlook, I would say China, automotive and China EV is the focus, and we see that as remaining favorable.

其他地區，我們會看到——但從積極的前景來看，我認為中國、汽車和中國電動車是重點，我們認為這仍然是有利的。

Yeah. And let me give a little more color to your first question on the guidance going forward. We expect industrial and the other bucket, both to be up kind of mid to high single digits quarter on quarter. We think auto is going to be down, again, just as Hassane talked about kind of in that high single-digit percentage as well. But to your point, we're seeing industrial strength, and we're seeing it continue in the second quarter.

是的。請容許我更詳細地解釋一下您關於未來指導的第一個問題。我們預計工業和其他行業的環比成長都將達到中高個位數。我們認為汽車銷量將再次下降，就像哈桑所說的那樣，下降幅度也高達個位數。但正如您所說，我們看到了工業實力的增強，而且這種勢頭將在第二季度持續下去。

Quinn Bolton, Needham & Company.

奎因·博爾頓，Needham & Company。

I think before your capacity actions, you guys had sized the business to have a 45% gross margin at $1.7 billion of revenue at a 65% utilization rate post the fab capacity actions you've taken, are there new metrics you can give us sort of just help level set as demand recovers, utilizations recover where gross margins could go over the next year or two.

我認為在你們採取產能行動之前，你們已經將業務規模定為 45% 的毛利率、17 億美元的收入和 65% 的利用率，在採取晶圓廠產能行動之後，你們能否提供一些新的指標來幫助設定水平，隨著需求的恢復，利用率的恢復，毛利率可能會在未來一兩年內上升。

Well, yeah, I think I gave the data point earlier that every point of utilization is now 25 basis points to 30 basis points of gross margin improvement. So if you think about us today, roughly at 60%, stepping down slightly in the second quarter in terms of utilization, you can do the math getting back up to 85%.

嗯，是的，我想我之前給出的數據點是，現在每個利用率點都會帶來 25 個基點到 30 個基點的毛利率提高。因此，如果您考慮我們今天的利用率，大約為 60%，第二季度利用率略有下降，您可以計算出回到 85%。

I also gave the data point that we're -- the gross margins in Q2 are expected to be negatively impacted by 900 basis points of under-absorption. So as I said, the gross margin is going to be driven by utilization in the short term.

我還給出了數據點，預計第二季的毛利率將受到 900 個基點的吸收不足的負面影響。正如我所說，短期內毛利率將由利用率決定。

Got it. But the standard, I guess, then utilization or standard gross margin would be about 46.5, right? If I take the midpoint of the range, at that 900, that's where you would sort of get back to as utilizations increase. But is that utilization getting back to 65%, 75% or should we just use the 30 -- 25 basis points to 30 basis points point of utilization is I assume that's pretty linear.

知道了。但我猜標準利用率或標準毛利率大約是 46.5，對嗎？如果我取該範圍的中點，即 900，那麼隨著利用率的增加，您就會回到這個位置。但利用率是否會回到 65%、75% 或我們應該只使用 30-25 個基點到 30 個基點的利用率點，我認為這是相當線性的。

Yeah, that's right. That's right. So the 25 basis points to 30 basis points is the right move. The 900 basis points is assuming you get back to fully utilized, right? So that will take us a while to get there. But your math is absolutely right.

是的，沒錯。這是正確的。因此，25個基點至30個基點是正確的舉措。900 個基點是假設您已恢復充分利用，對嗎？所以我們需要一段時間才能實現這一目標。但你的數學絕對正確。

Gary Mobley, Loop Capital.

加里·莫布利（Gary Mobley），Loop Capital。

Okay. Hassane, you've highlighted a couple of times 50% win rate for silicon carbide-based models introduced in the Shanghai Auto Show recently, it sounds very impressive, but maybe if you could just add a little more context in terms of what market share position you're coming from. Obviously, that's a huge market opportunity and just sort of size the dollar impact that, that could eventually translate into? And did you have to concede on pricing against some of the China suppliers to win that business?

好的。Hassane，您最近在上海車展上多次強調了基於碳化矽的車型的獲勝率達到 50%，這聽起來非常令人印象深刻，但也許您可以再補充一些背景信息，說明一下您的市場份額狀況。顯然，這是一個巨大的市場機遇，它最終能對美元產生怎樣的影響？為了贏得這筆生意，你們是否必須在價格上向一些中國供應商讓步？

Yeah. So first, from a market share perspective, we do expect that 50%, specifically in China, if you noticed, it's the only really EV market that is growing with the 800-volt focus, 800-volt battery, which yields to a 1,200-volt silicon carbide device. We do maintain the share there. We see that share increasing. Obviously, I'm not giving a guidance on the dollars, until the customers start ramping.

是的。首先，從市場份額的角度來看，我們確實預計會達到 50%，特別是在中國，如果你注意到的話，它是唯一一個真正以 800 伏特為重點、800 伏特電池為增長點的電動汽車市場，而 800 伏特電池可產生 1,200 伏特的碳化矽設備。我們確實保持了那裡的份額。我們看到這一份額正在增加。顯然，在客戶開始增加之前，我不會給出有關金額的指導。

We do see a big ramp in the second quarter already, and that will continue through the second half of the year. So we do see those programs ramping. When I say we see it, we see it in the backlog. We're starting to prep for those shipments. So from a market penetration, I think we can say we have well-penetrated the market.

我們確實已經看到第二季的大幅成長，而且這種成長將持續到今年下半年。因此我們確實看到這些項目正在加速發展。當我說我們看到它時，我們在積壓中看到了它。我們正開始為這些貨物做準備。因此從市場滲透率來看，我認為我們可以說我們已經很好地滲透了市場。

It is not a pricing discussion. It is more of a capability discussion it's not really competing with the local. You mentioned China for China or local vendors for silicon carbide. Our competition in China specifically is really more with our standard peers, our global peers rather than the local because we're still ahead on performance. I made the brief comment in the call, we introduced our trench or sampled our trench and we're going to start to see as the new wave of these products to go to market.

這不是定價討論。這更多的是一場能力討論，而不是真正與當地人的競爭。您提到了中國或當地的碳化矽供應商。具體來說，我們在中國市場的競爭更多的是與標準同業、全球同業的競爭，而不是與本地同業的競爭，因為我們在業績上仍然領先。我在電話中做了簡短的評論，我們介紹了我們的溝槽或對我們的溝槽進行了採樣，我們將開始看到這些產品的新一波進入市場。

We'll start revenue on our trench in 2026. So we have a very strong road map on silicon carbide. It is not specifically related to pricing. It is more on performance of the product which ends up saving a ton of money for our customers on their system-level side, whether it's lower batteries, or smaller system cost. That's the reason we win.

我們將於 2026 年開始在海溝上創造收入。因此，我們在碳化矽方面擁有非常強大的路線圖。它與定價沒有特別的關係。它更專注於產品的性能，最終為我們的客戶在系統層面節省大量資金，無論是更低的電池成本還是更低的系統成本。這就是我們獲勝的原因。

And like I said, we've maintained and increased our share in China, and we will continue to do that. It's a big focus market for us.

正如我所說，我們在中國的市場份額保持並增加，我們將繼續這樣做。這是我們關注的一個重點市場。

Just a quick follow-up. It sounds like, correct me if I'm wrong, that OpEx could trend down maybe another $5 million per quarter of that $292.5 million base that you're guiding to for the second quarter?

只是一個快速的跟進。聽起來，如果我錯了，請糾正我，營運支出可能會在第二季預測的 2.925 億美元基礎上每季再下降 500 萬美元？

Yeah, that's right. You'll get about $5 million per quarter in Q3 and Q4.

是的，沒錯。您將在第三季和第四季每季獲得約 500 萬美元。

Vijay Rakesh, Mizuho.

瑞穗的 Vijay Rakesh。

Just a quick question on the pricing side. Is that commentary on pricing specific to ON? Or is that what you see in the industry? And if you could give us some color on silicon versus silicon carbide, what you're thinking in terms of pricing? And I have a follow-up.

關於定價方面，我只想問一個簡單的問題。這是針對 ON 的具體定價評論嗎？或者這就是您在行業中看到的情況？您能否向我們介紹一下矽和碳化矽的區別，您對定價有何看法？我還有一個後續問題。

Yeah. I don't know -- I don't believe the pricing is ON-specific. I think a lot of my peers have talked about it. A lot of my peers have talked about in the context of the annual price negotiations and so on. I talk about it a little differently.

是的。我不知道——我不認為定價是特定於 ON 的。我想我的很多同齡人都談論過這個問題。我很多同行都在年度價格談判的背景下談論過這個問題。我對此的看法略有不同。

I talk about it as a pocket of pricing in order to maintain or even increase our share especially in the outlook, given where most of our customers are. So it's not something specific. And it is not related to silicon or silicon carbide specifically. I'm not breaking it down to that because we are using it as a tool. Now one thing on the pricing as well.

我將其視為定價的一部分，以便維持甚至增加我們的份額，特別是在前景方面，考慮到我們的大多數客戶所在的地方。所以這不是什麼具體的事情。它與矽或碳化矽沒有特別的關係。我沒有把它分解成那樣，因為我們將它用作一種工具。現在還有一件事與定價有關。

A lot of people failed to also look at along with any of these low single-digit pricing declines that we talked about, we're working on cost improvements for our products as well, which are usually at that range or slightly above. So forward looking, as we gain the share and we ramp, we are expecting to offset most of the pricing declines with cost actions.

很多人沒有註意到，除了我們談到的這些低個位數價格下降之外，我們還在努力改善我們產品的成本，這些成本通常都在這個範圍內或略高一些。因此，展望未來，隨著我們市場份額的擴大和產量的提升，我們預計可以透過成本行動來抵消大部分價格下跌的影響。

That's why we feel comfortable doing it in the short term to maintain and grow the share. But in the long run, we usually -- we've always offset any pricing discussions with cost actions. And you've seen us do some of the cost actions today with the Fab realignment or capacity realignment discussions that we've had.

這就是為什麼我們願意在短期內這樣做以維持和增加份額。但從長遠來看，我們通常——我們總是透過成本行動來抵消任何定價討論。您已經看到我們今天就晶圓廠調整或產能調整討論採取了一些成本行動。

We're going to continue to do that. I'm not seeing as a concerning approach or concerning sign. It doesn't change our trajectory in the gross margin. We still have very strong gross margin expansion opportunities ahead of us. That's why we are setting up the company for. And as the market recover, you're going to start seeing all of that come through the P&L.

我們將繼續這樣做。我並不認為這是令人擔憂的做法或令人擔憂的跡象。它不會改變我們的毛利率軌跡。我們仍然擁有非常強勁的毛利率擴張機會。這就是我們成立這家公司的原因。隨著市場復甦，您將開始看到所有這些都透過損益表體現出來。

Got it. And just a quick follow-up. On the order side, the high single-digit percent down sequentially. Is that -- so are you seeing some headwinds from the auto tariffs or all the parts? Or can you give us some more color around that?

知道了。這只是一次快速的跟進。訂單方面，高個位數百分比季減。那麼，您是否看到了來自汽車關稅或所有零件的一些阻力？或者您能給我們更多有關這方面的詳細資訊嗎？

Yeah. Look, it's -- we said we don't have a direct impact on the tariff for our business. That's the only thing I can comment on at this point because look, the tariff is one day, yes, one day no. It's too soon to talk about any impact -- indirect impact, meaning to us, therefore, an impact to our customers. That's too soon to call that.

是的。你看，我們說過，關稅不會對我們的業務產生直接影響。這是我目前唯一能評論的事情，因為看，關稅是一天，是的，一天不是。現在談論任何影響還為時過早——間接影響對我們來說意味著對我們的客戶的影響。現在下結論還為時過早。

That's where we -- in our guide, we talked about we remain cautious based on what we know today, there's no direct impact. However, there could be indirect impact, but that is a time-based question, which I don't have an answer to. That, therefore, our -- the best thing I can give you is our cautiousness in the guide and our outlook.

這就是我們在指南中談到的，根據我們今天所知道的情況，我們仍然保持謹慎，沒有直接影響。然而，可能會有間接影響，但這是一個基於時間的問題，我沒有答案。因此，我能給你的最好的東西就是我們在指南和觀點上的謹慎。

We also haven't seen any material pull-ins or push-outs as it relates to tariffs. So as Hassane said, no direct impact indirect over the long term, we'll see what happens. But in the short term, we haven't seen any customer activity that would give us concern.

我們還沒有看到與關稅相關的任何實質的拉動或擠壓。因此，正如哈桑所說，從長遠來看，不會產生直接影響，但會產生間接影響，我們拭目以待。但在短期內，我們還沒有看到任何令我們擔憂的客戶活動。

Harlan Sur, J.P. Morgan.

哈蘭‧蘇爾 (Harlan Sur)，J.P. 摩根大通。

Your shipments to direct customers were better for the second consecutive quarter. In fact, over the past two quarters, your direct business is up 3% versus your distri business down about 34%. Do your direct customers have just have less excess inventories, and therefore, maybe you guys are shipping more towards consumption trends? Any color on the large divergence would be helpful.

你們對直接客戶的出貨量連續第二季表現較好。事實上，在過去兩個季度中，您的直銷業務成長了 3%，而分銷業務下降了約 34%。你們的直接客戶是否只是庫存過剩，因此，你們可能會更多地按照消費趨勢發貨？任何有關巨大分歧的顏色都會有幫助。

No, not really. Anything to read into that. A lot of our distribution business also or half of our distribution business is going to customers that we deal with directly. The other half of our distribution is more on fulfillment. So I wouldn't read a lot into it, but we did talk about some of the pockets of inventory subsiding as far as the inventory drain which is translating into better-than-expected industrial and green shoots of industrial.

不，不是真的。任何可以解讀的內容。我們的大部分分銷業務，或者說一半的分銷業務都流向我們直接打交道的客戶。我們分銷的另一半更多的是履行。所以我不會對此進行過多的解讀，但我們確實討論了一些庫存減少的情況，庫存流失轉化為工業狀況好於預期以及工業復甦的萌芽。

I look at all of these as overall as a single outlook or a single indication to where the markets are, but not specifically distri or direct.

我把所有這些都看作是一個整體的單一前景或一個對市場所在位置的單一指示，而不是具體的分銷或直接指示。

I appreciate that. And then part of the weaker dynamic back in 4Q was a lower book of terms business you saw better bookings trends towards the end of this particular quarter or the reported March quarter. Did that include your turns business and within your guidance for this quarter, June quarter, are you guys assuming similar, higher, lower turns percentage versus 1Q?

我很感激。第四季較弱的動態部分是業務預訂量較低，您會看到本季末或報告的 3 月季度的預訂趨勢更好。這是否包括你們的周轉業務？在你們對本季、六月季度的指導中，你們是否假設與第一季相比，週轉率百分比相似、更高或更低？

Yeah, Harlan, I would say we saw strength, right? We saw strength late in the quarter in terms of order patterns, right, and specifically in the industrial side of the house. As we look into Q2, we still need turns, right? I mean I think customers are booking at lead time just given the uncertainty. But we still need turns.

是的，哈蘭，我想說我們看到了力量，對吧？我們在本季末看到了訂單模式的強勁表現，特別是在工業方面。當我們研究 Q2 時，我們仍然需要轉彎，對嗎？我的意思是，我認為客戶之所以會提前預訂，就是因為存在不確定性。但我們仍然需要輪流。

And I would say it's pretty consistent with how we entered the first quarter as well. No material change. Other than order patterns, I think, have gotten a little more stable, a little more predictable.

我想說這與我們進入第一季的情況非常一致。無實質變化。除了訂單模式之外，我認為，已經變得更加穩定、更加可預測了。

Tore Svanberg, Stifel.

托爾·思文伯格，Stifel。

I had a longer-term question on Treo. Hassane, you reiterated the $1 billion for 2030. And you did talk about some design wins. Just could you help us a little bit where you're getting these design wins? And could we start to see already some material revenue in Treo next year?

我對 Treo 有一個長期的問題。哈桑，你重申了 2030 年 10 億美元的目標。您確實談到了一些設計上的成功。您能否稍微幫助我們一下，您是如何獲得這些設計勝利的？明年我們是否能開始看到 Treo 的一些實質收入？

Yeah. That's a good question. So first off, our exposure with Treo is really very broad. I gave some examples that span from automotive, from AI data center and from industrial, medical. The beauty of the platform is it's very versatile as far as going from high-performance analog to high-power drivers and high-power PMICs and so on.

是的。這是個好問題。首先，我們對 Treo 的了解確實非常廣泛。我舉了一些涉及汽車、人工智慧資料中心以及工業和醫療領域的例子。該平台的優點在於它用途非常廣泛，從高性能模擬到高功率驅動器和高功率 PMIC 等等。

So overall, we're very, very pleased with the traction. I talked about we remain on track to double the number of products year on year. That remains on track and a focus for the team. And really, we're starting to ship revenue this year. As far as material revenue, of course, it's a ramping business, ramping product revenue, and more importantly, at more favorable margins.

總的來說，我們對這種發展勢頭感到非常非常滿意。我說過，我們仍有望實現產品數量逐年翻倍。這仍然是團隊的重點。事實上，我們今年就開始實現收入了。當然，就材料收入而言，這是一個不斷成長的業務，產品收入不斷成長，更重要的是，利潤率更有利。

We talked about the margin profile for that Treo platform being 60% to 70%, that remains true as we start the ramp and will continue as we expand. As far as material revenue in 2026, obviously, it's going to be more material than it is this year. But material from a company, you're still not going to see it at a company level, given the scale of our other business. And other business is ramping.

我們談到 Treo 平台的利潤率是 60% 到 70%，當我們開始提升業務時，這個數字仍然適用，並且會隨著我們的擴展而繼續保持。就 2026 年的材料收入而言，顯然會比今年更重要。但考慮到我們其他業務的規模，你仍然不會在公司層級看到來自公司的材料。其他業務也在蓬勃發展。

Where we are today based on where we expect it to be, we're on track, actually slightly ahead, but we're very excited about the promise of the franchise that we've built.

根據我們的預期，我們目前的情況是，我們正走在正軌上，實際上略微領先，但我們對我們所建立的特許經營的前景感到非常興奮。

As my follow-up for Thad, Thad CapEx, 6% of revenue this quarter with the new footprint, how should we think about CapEx for the second half of the year?

作為我對 Thad 的後續關注，Thad 資本支出佔本季收入的 6%，隨著新業務的開展，我們應該如何看待下半年的資本支出？

Yeah. For the whole year, look, there's some lumpiness, right, in terms of the CapEx, just based on timing of equipment coming in. But most of our CapEx now is just maintenance CapEx. So for the year, you should think about CapEx as being in that mid-single digit percentage of revenue. With the lower capital intensity, this is what's given us confidence in the free cash flow and why we're increasing our buyback to 100% of free cash flow.

是的。就全年而言，就資本支出而言，存在一些不均勻性，這僅取決於設備投入的時間。但我們現在的資本支出大多只是維護資本支出。因此，就今年而言，您應該認為資本支出佔收入的百分比在個位數中間。由於資本密集度較低，我們對自由現金流充滿信心，這也是我們將回購比例提高到自由現金流 100% 的原因。

David Williams, The Benchmark Company.

大衛威廉斯（David Williams），基準公司。

I guess first is, can you kind of give us a revenue run rate to get to that full capacity utilization, just kind of given what you've taken out this quarter?

我想首先要問的是，您能否根據本季的支出，給出一個達到滿載產能利用率的收入運行率？

Look, it's -- I don't have a specific number as you think about it sitting here because it's going to depend on internal versus external. I think if you model the downside of kind of as capacity came out or utilization decreased, it's likely the same going up. So we manufacture about 70% of our products in-house. But I think it's going to be very linear as revenue increases. But I don't have a top line because it depends on mix, right?

你看，這是——我沒有一個具體的數字，因為這取決於內部還是外部。我認為，如果你模擬產能下降或利用率下降的不利因素，那麼上升趨勢可能也是一樣的。因此，我們約 70% 的產品都是內部生產的。但我認為隨著收入的增加，它將呈現線性成長。但我沒有頂線，因為這取決於混合，對嗎？

If the higher-value products are ramping first, that will have a different impact than lower ASP products. But I think from a modeling standpoint, you should just look at the downside and the upside is very similar.

如果高價值產品先增加產量，其影響將與較低 ASP 產品的影響不同。但我認為從建模的角度來看，你應該只看缺點，優點也非常相似。

And then just kind of secondly, and I think, Hassane, you spoke to this earlier, but just wondering what you're seeing in terms of the silicon carbide competitive dynamics within the domestic market in China. It sounds like we're seeing more of that. But just kind of curious how you're seeing that. Obviously, your performance is better. But how do you think this plays out over the next 12 to 18 months? Could we see that shift back into maybe the more domestic side given the tariff situation?

其次，哈桑，我想您之前已經談到了這一點，但我只是想知道您對中國國內市場的碳化矽競爭動態有何看法。聽起來我們看到了更多這樣的情況。但我只是有點好奇你是如何看待這一點的。顯然，你的表現更好。但您認為未來 12 到 18 個月內情況會如何發展？考慮到關稅情況，我們是否會看到這種轉變重新轉向國內方面？

Yeah. I don't think we are in the same bucket as some of the local. The local, they're not really competing at the stage where we are with our customers I mentioned most of our competition are the global peers, not really the local. Now is there going to be just like IGBT, a small sliver in the market that's really not looking for performance, but just an on-off switch. That would potentially use the local, yeah, but that's not really a focus market for us.

是的。我不認為我們和一些當地人屬於同一類。在我們與客戶合作的這個階段，本地客戶實際上並沒有與我們競爭，我提到，我們的大多數競爭對手是全球同行，而不是本地客戶。現在，市場上是否會出現像 IGBT 一樣的一小部分產品，它們實際上並不追求性能，而只是追求開關。是的，這可能會利用本地市場，但這並不是我們真正的重點市場。

So where we play, which is really performance, especially as the automotive OEMs in China want to compete on a global scale, which most of them do they're going to be focusing really on performance, really on integration and a system level performance impact, which is really us and we come in the lead.

因此，我們的重點在於性能，特別是當中國的汽車原始設備製造商希望在全球範圍內競爭時，他們中的大多數都會真正關注性能、整合和系統級性能影響，這才是我們真正處於領先地位。

We're seeing that in the my mention on the 50% penetration just based on the Shanghai Auto Show from a few weeks ago. So with that, it gives me comfort. Now obviously, we're not sitting still. I talked about introducing our trench, which is again yet a new generation for us versus the peer -- global peer and versus the local vendors in China.

我們看到，我剛才提到的 50% 滲透率只是基於幾週前的上海車展。有了這個，我感到很安慰。顯然，我們並沒有坐以待斃。我談到了介紹我們的溝槽，對於我們來說，與全球同行以及中國本地供應商相比，這又是一個新一代。

So we're not standing still from an R&D. As they develop their local solutions, we're going to maintain our technology leadership. It is not a question of tariff in this case because, as you know, our silicon carbide is manufactured outside of the US from a global footprint as well. And our flexibility in our supply chain gives us a lot of options to serve the customers.

因此，我們不會停止研發。當他們開發本地解決方案時，我們將保持我們的技術領先地位。在這種情況下，這不是關稅問題，因為如您所知，我們的碳化矽也是在美國以外生產的，並且具有全球影響力。我們供應鏈的靈活性為我們服務客戶提供了多種選擇。

But most of the decision at a customer level is really made on technology and our performance. That's why we've always won. That's how we continue to win.

但客戶層面的大多數決策實際上是基於技術和我們的表現而做出的。這就是我們總是獲勝的原因。這就是我們不斷獲勝的方法。

Christopher Rolland, Susquehanna.

克里斯多福羅蘭 (Christopher Rolland)，薩斯奎漢納。

Hassane, perhaps just back to your last answer there. Just as we think about potential reciprocal tariffs, you were talking about flexibility in your footprint. Some people have a China for China strategy, how do you serve China without these reciprocal tariffs and do you increase a Fabless relationship in country? I know you deal with SMIC, I think, do you increase that relationship? What is the kind of flexibility that you do have to address reciprocal tariffs in China, let's say?

Hassane，也許只是回到你最後的回答。正如我們考慮潛在的互惠關稅一樣，您正在談論足跡的靈活性。有些人有「中國針對中國」的策略，那麼在沒有這些互惠關稅的情況下，您如何為中國服務，以及如何在該國增加與無晶圓廠的關係？我知道您與中芯國際有業務往來，我想，您會加強這種關係嗎？比如說，你們在解決中國互惠關稅問題上擁有什麼樣的彈性？

Yeah. So well, first, I don't want to ponder on what the tariff could or could not be given that just the volatility of the tariff situation 1 day versus the other. I will give you what we are doing, which is what we control. First off, we are in China, and we do have manufacturing in China. We have a couple of our sites, our manufacturing sites are actually in China.

是的。那麼，首先，我不想考慮關稅會是多少或不會是多少，因為關稅情況每天都在波動。我會告訴你我們正在做的事情，也就是我們所控制的事情。首先，我們在中國，並且我們確實在中國進行製造。我們有幾個站點，我們的製造站點實際上在中國。

We do have foundry relationships. So we are not looking at China from the outside. We're looking at China from the inside. So therefore, for me, I'm not worried about the impact of it. We have a lot of factories total globally, it gives us full flexibility.

我們確實有代工關係。所以我們不是從外部來看中國。我們從內部觀察中國。因此，對我來說，我並不擔心它的影響。我們在全球擁有許多工廠，這為我們提供了充分的靈活性。

Most of our products are qualified in more than one location, which means from servicing the customers, whether customers in China or customers in China that would export, we are very well positioned for it. Of course, we're always on our strategic footprint, whether we do something specifically in China or not, but there has to be a strategic need for it, not just in reaction to a tariff that may or may not be there.

我們的大部分產品都在多個地方獲得認證，這意味著從服務客戶的角度來說，無論是中國的客戶還是中國出口的客戶，我們都處於非常有利的地位。當然，無論我們是否在中國採取具體行動，我們始終都在戰略足跡上，但這必須有戰略需要，而不僅僅是為了應對可能存在或不存在的關稅。

So we look at it from a technology perspective. We look at it from a competitive advantage perspective, we do feel very competitive with our existing footprint, and we'll continue to address that.

因此我們從技術角度來看它。我們從競爭優勢的角度來看這個問題，我們確實覺得我們現有的足跡非常有競爭力，我們將繼續解決這個問題。

As a second question, just as I look at distri inventory, this is the lowest level of just inventory you guys have had in quite some time. And so I'm just wondering, is there a change in strategy here? Or is it just a reflection of the softer outlook. How do you guys know that this is the right level? And I would think, given the macro uncertainty your distries would also want more geographic-based inventory and flexibility there. So why drain the channel at this point in time? And yeah, just is this where we're going to hold these inventory levels?

第二個問題，當我查看分銷庫存時，這是你們相當長一段時間以來的最低庫存水準。所以我只是想知道，這裡的策略有改變嗎？或者這只是更溫和的前景的反映。你們怎麼知道這是正確的層次？我認為，考慮到宏觀的不確定性，您的經銷商也希望擁有更多基於地理位置的庫存和靈活性。那為什麼此時要排幹渠道呢？是的，這就是我們要維持的庫存水準嗎？

No. So if you think about it from our weeks of inventory, we are where we want to be. That's our sweet spot. I said we're focused on 9 to 11 weeks, and will go up or down depending on if we have a ramp in the following quarter or not. So we will manage the business within that range.

不。因此，如果你從我們數週的庫存來考慮，你會發現我們已經達到了我們想要的水平。這是我們的最佳位置。我說過，我們專注於第 9 到第 11 週，然後根據下一季是否有成長來決定是否增加或減少。所以我們會在該範圍內管理業務。

as the dollars, we've always said, we maintained a very high discipline on distri inventory. I'll tell you, distribution will take more inventory from us. But however, what we are waiting on is a really sustainable recovery. We've seen starts of it. So as the top line revenue grows into the outlook, then we will continue to feed the inventory in the channel to service the customer.

正如我們一直所說，我們對分銷庫存保持著非常嚴格的紀律。我告訴你，分銷將會佔用我們更多的庫存。但無論如何，我們正在等待的是真正可持續的復甦。我們已經看到了它的開始。因此，隨著營業收入的成長，我們將繼續透過通路補充庫存來為客戶提供服務。

But for us, it is a customer-focused effort. I mentioned earlier, 50% of our distribution is what we call named customers. So we do have outlook. We do have a forecast and we do have really backlog from these customers directly, whether we service them through the distribution or not. So we don't see that as a, call it, a strategic drain of inventory but more of a management of the inventory with the outlook that we see in the macro environment.

但對我們來說，這是一項以客戶為中心的努力。我之前提到過，我們 50% 的經銷商都是我們所謂的指定客戶。所以我們確實有前景。我們確實有一個預測，而且我們確實直接從這些客戶那裡積壓了訂單，無論我們是否透過分銷為他們提供服務。因此，我們並不認為這是一種策略性的庫存消耗，而是一種根據宏觀環境前景進行的庫存管理。

From a dollar perspective, that very well can change as we see more sustainable signs of recovery. But you can expect the weeks of inventory to remain in that range that we've described.

從美元的角度來看，隨著我們看到更多可持續的復甦跡象，這種情況很可能會改變。但您可以預期庫存週數將保持在我們所描述的範圍內。

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

女士們、先生們，今天會議的問答部分到此結束。我想將電話轉回給總裁兼執行長 Hassane El-Khoury，請他做最後發言。

Thank you for joining us on the call this morning. As we navigate the rest of this year, on behalf of the executive team, I'd like to express my gratitude to our global employees, our customers and our shareholders for their commitment and dedication to ON Semi. Thank you.

感謝您今天上午參加我們的電話會議。值此我們迎來今年剩餘時間之際，我謹代表執行團隊向我們全球的員工、客戶和股東對安森美半導體的承諾和奉獻表示感謝。謝謝。

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

女士們、先生們，今天的演講到此結束。現在您可以斷開連接，享受美好的一天。