安森美 (ON) 2022 Q1 法說會逐字稿

Ladies and gentlemen, thank you for standing by, and welcome to onsemi First Quarter 2022 Earnings Conference Call. (Operator Instructions) And please be advised that today's program is being recorded.

女士們，先生們，感謝您的支持，歡迎參加 onsemi 2022 年第一季度收益電話會議。 （操作員說明）請注意，今天的節目正在錄製中。

I would now like to hand the conference over to Parag Agarwal, Vice President of Investor Relations and Corporate Development. Please go ahead.

我現在想將會議交給投資者關係和企業發展副總裁 Parag Agarwal。請繼續。

Thank you, Carmen. Good morning, and thank you for joining onsemi's First Quarter 2022 Quarterly Results Conference Call. I'm joined today by Hassane El-Khoury, our President and CEO; and Thad Trent, our CFO. This call is being webcast on the Investor Relations section of our website at www.onsemi.com. A replay of this webcast, along with our 2022 first quarter earnings release, will be available on our website approximately 1 hour following this conference call and the recorded webcast will be available for approximately 30 days following this conference call.

謝謝你，卡門。早上好，感謝您參加 onsemi 2022 年第一季度季度業績電話會議。今天，我們的總裁兼首席執行官 Hassane El-Khoury 也加入了我的行列；和我們的首席財務官 Thad Trent。本次電話會議正在我們網站 www.onsemi.com 的投資者關係部分進行網絡直播。本次網絡廣播的重播以及我們的 2022 年第一季度收益發布將在本次電話會議後約 1 小時在我們的網站上提供，錄製的網絡廣播將在本次電話會議後約 30 天內提供。

Additional information related to our end markets, business segments, geographies, channels, share count and 2022 fiscal calendar 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 measures and our GAAP are included in our earnings release, which is posted separately on our website in the Investor Relations section.

與我們的終端市場、業務部門、地域、渠道、股票數量和 2022 財年日曆相關的其他信息發佈在我們網站的投資者關係部分。我們的收益發布和本演示文稿包括某些非公認會計原則財務措施。這些非公認會計原則財務指標與最直接可比指標和我們的公認會計原則的對賬包含在我們的收益發布中，該發佈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 will make projections or other forward-looking statements regarding future events or the future financial performance of the company. The words believe, estimate, project, anticipate, intend, may, expect, will, plan, should or similar expressions are intended to identify forward-looking statements. 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. Important factors that can affect our business, including factors that could cause actual results to differ from our forward-looking statements are described in our most recent Form 10-K, Form 10-Qs and other filings with the Securities and Exchange Commission.

在本次電話會議期間，我們將對公司的未來事件或未來財務業績做出預測或其他前瞻性陳述。相信、估計、預測、預期、打算、可能、期望、將、計劃、應該或類似的表達方式旨在識別前瞻性陳述。我們希望提醒您，此類陳述存在風險和不確定性，可能導致實際事件或結果與預測存在重大差異。可能影響我們業務的重要因素，包括可能導致實際結果與我們的前瞻性陳述不同的因素，在我們最近提交給證券交易委員會的 10-K 表格、10-Q 表格和其他文件中進行了描述。

Additional factors are described in our earnings release for the first quarter of 2022. Our estimates or other forward-looking statements may change, and the company assumes no obligation to update forward-looking statements to reflect actual results, change assumptions or other events that may occur except as required by law.

我們在 2022 年第一季度的收益發布中描述了其他因素。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、改變假設或其他可能發生的事件的義務除非法律要求，否則發生。

Now let me turn it over to Hassane. Hassane?

現在讓我把它交給哈桑。哈桑？

Thank you, Parag, and thank you, everyone, for joining us today. I will start off by saying how extremely proud I am of our team's execution in the first quarter. Our employees worldwide continue to push through challenging times, and their efforts have delivered yet another quarter of outstanding results.

謝謝你，帕拉格，謝謝大家今天加入我們。我將首先說我對我們團隊在第一季度的執行感到非常自豪。我們世界各地的員工繼續在充滿挑戰的時代前行，他們的努力又取得了四分之一的優異成績。

We had strong revenue growth of 31% year-over-year, driven by solid performance of our Intelligent Power and Sensing Solutions in the automotive and industrial end markets. Key megatrends such as vehicle electrification, ADAS, energy infrastructure and factory automation are accelerating, and we expect to see sustained growth as we service our customers under long-term supply agreements and expand our pipeline of new Intelligent Power and Sensing products at favorable margins.

由於我們的智能電源和傳感解決方案在汽車和工業終端市場的穩健表現，我們的收入實現了 31% 的強勁增長。汽車電氣化、ADAS、能源基礎設施和工廠自動化等主要大趨勢正在加速，隨著我們根據長期供應協議為客戶提供服務並以有利的利潤率擴大我們的新智能電源和傳感產品管道，我們預計將看到持續增長。

Along with our strong revenue performance in the first quarter, we achieved a gross margin of 49.4%, an increase of 1,420 basis points from a year ago. This outstanding margin performance was driven by improvements we implemented in 2021, including manufacturing efficiencies, reallocation of capacity to strategic and high-margin products to drive favorable mix shift and continued elimination of price-to-value discrepancies.

隨著我們第一季度強勁的收入表現，我們實現了 49.4% 的毛利率，比一年前增加了 1,420 個基點。這種出色的利潤率表現是由我們在 2021 年實施的改進推動的，包括製造效率、將產能重新分配給戰略和高利潤率產品以推動有利的組合轉變以及繼續消除價格與價值的差異。

On the market environment, despite an overhang of unfavorable macroeconomics and geopolitical dynamics, demand for products in our focus end markets of automotive and industrial continues to be strong. In the first quarter, automotive and industrial grew 8% quarter-over-quarter and 42% year-over-year to 65% of our revenue, both delivering record quarters. The growth in our automotive revenue, while SAAR was revised down, highlights the strength of our portfolio and supports the content growth we expect per vehicle driven by ADAS and vehicle electrification. Lead times are flat quarter-over-quarter, and we do not see meaningful customer pushouts or increasing cancellation trends. We are fully cognizant of potential risks from inflation, higher interest rates and ongoing geopolitical tensions. We are monitoring the business environment diligently and have been managing our inventory, manufacturing and customer engagements to support our long-term financial targets and sustain our gross margin within our target range of 48% to 50%.

市場環境方面，儘管宏觀經濟和地緣政治形勢不利，但我們重點關注的汽車和工業終端市場對產品的需求仍然強勁。第一季度，汽車和工業部門環比增長 8%，同比增長 42%，占我們收入的 65%，均創下歷史新高。儘管 SAAR 被下調，但我們汽車收入的增長突顯了我們產品組合的實力，並支持了我們預期由 ADAS 和汽車電氣化驅動的每輛車的內容增長。交貨時間環比持平，我們沒有看到有意義的客戶推出或取消趨勢增加。我們充分認識到通脹、利率上升和持續的地緣政治緊張局勢帶來的潛在風險。我們正在努力監控商業環境，並一直在管理我們的庫存、製造和客戶參與，以支持我們的長期財務目標，並將我們的毛利率維持在 48% 至 50% 的目標範圍內。

As of now, the COVID-related lockdowns in China have not had any meaningful impact on our business. However, there is potential risk in the second quarter if the lockdowns extend much longer, and our current guidance already accounts for a few percentage points of growth of risk we are seeing at this point. To mitigate any chance of supply disruptions to our customers due to these lockdowns, we have initiated capacity transfers to our Manila and Singapore locations to maintain supply continuity for our customers. We have been making selective investments to expand our capacity in strategic areas and relieve bottlenecks, especially in back-end factories for our imaging products. We are improving the efficiency of our factories and are reallocating capacity to strategic products and end markets, allowing us to expand our margin by driving favorable mix shift. We have been able to secure additional capacity from our external manufacturing partners and our qualifying products in our 300-millimeter fab to meet the long-term capacity needs.

截至目前，中國與 COVID 相關的封鎖尚未對我們的業務產生任何有意義的影響。但是，如果鎖定時間延長得更久，第二季度存在潛在風險，而我們目前的指導已經占我們目前看到的風險增長的幾個百分點。為了減少由於這些封鎖而對我們的客戶造成供應中斷的任何可能性，我們已經開始向我們的馬尼拉和新加坡地點轉移產能，以維持我們客戶的供應連續性。我們一直在進行選擇性投資，以擴大我們在戰略領域的產能並緩解瓶頸，特別是在我們成像產品的後端工廠。我們正在提高工廠的效率，並將產能重新分配給戰略產品和終端市場，從而使我們能夠通過推動有利的組合轉變來擴大利潤。我們已經能夠從我們的外部製造合作夥伴和我們 300 毫米晶圓廠的合格產品那裡獲得額外的產能，以滿足長期的產能需求。

In 2022, we are on track to ship more than twice the number of 300-millimeter wafers we shipped in 2021 and the continued ramp in our East Fishkill. Fab should improve the efficiency of our fab network over the next few years as we execute our fab lighter strategy by consolidating our fab footprint. We have redeployed capacity to strategic higher-margin products. And over the last 12 months, we have exited approximately $200 million in revenue at an average gross margin of 21%, of which $32 million occurred in the first quarter at an average gross margin of 22%. Some of these losses are already being offset with new product revenue, which increased 31% year-over-year at favorable gross margin and will continue to ramp through 2023 and beyond.

到 2022 年，我們的 300 毫米晶圓出貨量將是 2021 年出貨量的兩倍多，並且在 East Fishkill 的出貨量將繼續增加。隨著我們通過鞏固我們的晶圓廠足跡來執行我們的晶圓廠更輕戰略，晶圓廠應該在未來幾年內提高我們晶圓廠網絡的效率。我們已將產能重新部署到利潤率更高的戰略產品上。在過去 12 個月中，我們以 21% 的平均毛利率退出了大約 2 億美元的收入，其中 3200 萬美元發生在第一季度，平均毛利率為 22%。其中一些損失已經被新產品收入所抵消，新產品收入同比增長 31%，毛利率有利，並將在 2023 年及以後繼續增長。

Our customer engagement remains strong as we see our increased customer base driving approximately 100% year-over-year growth in our design wins. This increase is driven by WINS Intelligent Power & Sensing with design wins for both doubling year-over-year. Our Intelligent Power and Sensing revenue makes up 65% of total revenue, up from 62% a year ago.

我們的客戶參與度保持強勁，因為我們看到我們不斷增加的客戶群推動我們的設計獲勝率同比增長約 100%。這一增長是由 WINS Intelligent Power & Sensing 推動的，其設計勝率均同比翻了一番。我們的智能電源和傳感收入佔總收入的 65%，高於一年前的 62%。

We are continuing to make progress on our silicon carbide growth and remain on track to more than double our silicon carbide revenue in 2022 as we ramp shipments to customers who have signed long-term supply agreements with us. At this pace, exiting 2023, onsemi will be on a $1 billion run rate for silicon carbide revenue.

隨著我們向與我們簽署長期供應協議的客戶增加出貨量，我們將繼續在碳化矽增長方面取得進展，並有望在 2022 年將我們的碳化矽收入增加一倍以上。按照這個速度，到 2023 年，onsemi 的碳化矽收入將達到 10 億美元。

In addition to market-leading efficiency of our products, our end-to-end vertically integrated solution in a supply-constrained environment is a compelling and differentiated competitive advantage. I'm extremely happy with the progress of our GTAT operation. And since we closed the acquisition, we have already expanded to a second building as we increased our substrate capacity and are still on track to more than quadruple exiting 2022 in support of our LTSA customers in the broader SIC market.

除了我們產品的市場領先效率外，我們在供應受限的環境中的端到端垂直集成解決方案是一項引人注目的差異化競爭優勢。我對我們 GTAT 行動的進展感到非常滿意。自從我們完成收購以來，我們已經擴大到第二座建築，因為我們增加了基板產能，並且仍有望在 2022 年實現翻兩番以上，以支持我們在更廣泛的 SIC 市場中的 LTSA 客戶。

From the engineering side, all yields and outputs are meeting our committed production levels, and we are making fast progress on our 200-millimeter substrate development and release to production. We continue to expand our silicon carbide engagement beyond automotive traction and have made inroads into the energy infrastructure market with our power modules.

從工程方面來看，所有產量和產出都達到了我們承諾的生產水平，我們在 200 毫米基板開發和投產方面取得了快速進展。我們繼續將我們的碳化矽業務擴展到汽車牽引之外，並通過我們的功率模塊進軍能源基礎設施市場。

In the first quarter, our revenue for energy infrastructure grew 64% year-over-year, and we secured significant wins for our silicon carbide and silicon power modules with key market leaders. We are currently shipping to 7 of the top 10 global providers of solar inverters, and we have signed LTSAs with 3 of the top 5 players. The energy infrastructure market will be a long-term driver for our business as utility scale power plant installations are expected to grow worldwide to reduce the climate impact of fossil fuel-based power plants.

第一季度，我們的能源基礎設施收入同比增長 64%，我們的碳化矽和矽功率模塊與主要市場領導者取得了重大勝利。目前，我們正在向全球 10 大太陽能逆變器供應商中的 7 家發貨，並且我們已與 5 大廠商中的 3 家簽署了 LTSA。能源基礎設施市場將成為我們業務的長期驅動力，因為公用事業規模的發電廠安裝預計將在全球範圍內增長，以減少基於化石燃料的發電廠對氣候的影響。

In the first quarter, our 5G cloud point-of-load revenue and design wins, both increased 33% year-over-year as we displace an incumbent to secure a design win at a leading 5G infrastructure OEM with a new product based on our superior technical performance and security of supply. In Cloud Power, we secured a major win with our high-performance power management solutions, delivering over 94% of peak energy efficiency. They were adopted by one of the largest cloud providers in the world to power their next-generation Intel servers in their data centers refresh and expansion.

在第一季度，我們的 5G 雲負載點收入和設計勝出均同比增長 33%，因為我們取代了現有企業，以基於我們的新產品在領先的 5G 基礎設施 OEM 處確保設計勝出優越的技術性能和供應安全。在 Cloud Power 中，我們憑藉高性能電源管理解決方案贏得了重大勝利，提供了超過 94% 的峰值能源效率。它們被世界上最大的雲提供商之一採用，為其數據中心更新和擴展中的下一代英特爾服務器提供動力。

Our best-in-class energy efficiency together with supply assurance and technical support, enabled us to secure this win delivering both market share gains and favorable gross margin in the second half of this year.

我們一流的能源效率以及供應保證和技術支持，使我們能夠在今年下半年獲得市場份額增長和有利的毛利率。

On the intelligent sensing front, we continue to sustain our momentum in automotive imaging with 44% revenue growth year-over-year. Our strong presence on most leading ADAS software platforms and broad ecosystem we have built over time have been a key driver of our strong market position.

在智能傳感方面，我們繼續保持在汽車成像領域的勢頭，收入同比增長 44%。我們在大多數領先的 ADAS 軟件平台上的強大影響力和我們隨著時間的推移建立的廣泛生態系統一直是我們強大市場地位的關鍵驅動力。

We further strengthened our position in the ADAS ecosystem through a key win with a leading ADAS software platform provider in China. We expect this platform to proliferate at all OEMs in China with our content in excess of $150 per vehicle. The growth in our image sensing revenue and design wins is attributed to a doubling of the average number of cameras per vehicle over the past 5 years and a doubling again in the next 5 years. In fact, we have designed in 28 cameras per vehicle in a Level 5 autonomous vehicle already. Our industry-leading 8-megapixel camera has already been adopted by 8 car OEMs and will quadruple in revenue in '23 over '22.

我們通過與中國領先的 ADAS 軟件平台提供商取得關鍵勝利，進一步鞏固了我們在 ADAS 生態系統中的地位。我們預計該平台將在中國的所有 OEM 中激增，我們的內容每輛車將超過 150 美元。我們的圖像傳感收入和設計勝利的增長歸因於過去 5 年每輛車的平均攝像頭數量翻了一番，並在未來 5 年再次翻了一番。事實上，我們已經為 5 級自動駕駛汽車的每輛車設計了 28 個攝像頭。我們行業領先的 8 兆像素攝像頭已被 8 家汽車 OEM 採用，23 年的收入將比 22 年翻兩番。

In addition to ADAS applications in light vehicles, we are seeing traction for our image sensors in the industrial market for warehouse automation, autonomous delivery robot and agriculture applications. In the first quarter, we secured a win for our image sensors for use in robotic drive units in fulfillment centers with $70 of imaging content ramping in 2023 at a leading e-commerce player.

除了輕型車輛中的 ADAS 應用外，我們的圖像傳感器在倉庫自動化、自動送貨機器人和農業應用的工業市場上也受到了關注。在第一季度，我們的圖像傳感器獲得了勝利，該傳感器用於履行中心的機器人驅動單元，到 2023 年，一家領先的電子商務公司的成像內容將增加 70 美元。

In addition, we continue to win new designs in the growing intelligent agri business segment for improving crop yields, which uses 36 image sensors per machine with revenue starting this year. Customers select our sensors based on superior imaging performance, market-leading global shutter efficiency and a strong ecosystem comprising of players that provide supportive software and hardware solutions to rapidly enable complete imaging solutions.

此外，我們繼續在不斷增長的智能農業業務領域贏得新設計，以提高作物產量，每台機器使用 36 個圖像傳感器，從今年開始獲得收入。客戶選擇我們的傳感器是基於卓越的成像性能、市場領先的全球快門效率和強大的生態系統，該生態系統由提供支持性軟件和硬件解決方案的參與者組成，以快速實現完整的成像解決方案。

Our intelligent sensing products are long-lived and design wins tend to be sticky. Awarded projects typically span multiple years with lifetime in excess of 15 years as customer values the programmability and leverage their software architecture over multiple platforms and end products. This longer life cycle and sticky nature of our products gives us greater revenue stability and visibility.

我們的智能傳感產品壽命長，設計勝利往往具有粘性。獲獎項目通常跨越多年，壽命超過 15 年，因為客戶重視可編程性並在多個平台和最終產品上利用他們的軟件架構。我們產品的這種更長的生命週期和粘性為我們提供了更高的收入穩定性和可見度。

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

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

Thanks, Hassane. We had another quarter of record results as we continue to execute on our transformation journey. We reported record revenue, gross and operating margins and earnings per share driven by structural changes to the business and a reallocation of investment and resources to strategic products and markets with high growth and high margins.

謝謝，哈桑。隨著我們繼續執行轉型之旅，我們又取得了創紀錄的四分之一。我們報告了創紀錄的收入、毛利率和營業利潤率以及每股收益，這是由業務結構變化以及投資和資源重新分配到具有高增長和高利潤率的戰略產品和市場所推動的。

Vehicle electrification, ADAS, factory automation and energy infrastructure are in the early stages of adoption, and these trends will accelerate with the need for higher energy efficiency in the automotive and industrial markets. With an expanding portfolio of highly differentiated intelligent power and sensing products, long-term supply agreements and end-to-end supply chain capabilities for the fastest-growing product, we are well positioned to drive long-term revenue, earnings and free cash flow growth.

汽車電氣化、ADAS、工廠自動化和能源基礎設施正處於採用的早期階段，隨著汽車和工業市場對更高能效的需求，這些趨勢將加速發展。憑藉不斷擴大的高度差異化智能電源和傳感產品組合、長期供應協議以及針對增長最快產品的端到端供應鏈能力，我們有能力推動長期收入、收益和自由現金流生長。

The hard work and disciplined execution of our worldwide teams are reflected in our financial transformation. Our first quarter revenue increased 31% year-over-year, gross margin improved 1,420 basis points and operating income increased 7.5x faster than revenue while free cash flow was 21% on an LTM basis. Additionally, revenue in our strategic end markets of automotive and industrial increased 42% year-over-year and now account for 65% of revenue as compared to 60% in the quarter a year ago. We also continue to make progress in our fab wider strategy, rationalizing our manufacturing footprint by exiting subscale fabs, accelerating our 300-millimeter ramp and improving operational efficiencies, all of which will double our capacity per factory over time. By transitioning production to more efficient fabs will eliminate fixed cost and lower unit costs while reducing the volatility in the P&L.

我們全球團隊的辛勤工作和紀律嚴明的執行力反映在我們的財務轉型中。我們的第一季度收入同比增長 31%，毛利率提高 1,420 個基點，營業收入增長速度是收入的 7.5 倍，而自由現金流在 LTM 基礎上為 21%。此外，我們在汽車和工業戰略終端市場的收入同比增長 42%，目前佔收入的 65%，而去年同期為 60%。我們還繼續在我們的晶圓廠更廣泛的戰略上取得進展，通過退出小規模晶圓廠來合理化我們的製造足跡，加速我們的 300 毫米坡道並提高運營效率，所有這些都將使我們每家工廠的產能隨著時間的推移而增加一倍。通過將生產轉移到更高效的晶圓廠，將消除固定成本並降低單位成本，同時降低損益表的波動性。

As previously announced, we closed the sale of our 6-inch fab in Belgium and expect to close the sale of our 8-inch fab in Maine to diodes in the second quarter. We are also on track to close the acquisition of the 300-millimeter fab in East Fishkill from GLOBALFOUNDRIES at year-end. As these transitions take years to fully execute and realize, we've been building bridge inventory to ensure a consistent supply of product to our customers. These structural changes, along with our differentiated portfolio, are driving momentum in our design wins, while LTSAs and the stickiness of our products are providing improved visibility into long-term revenue and profitability.

正如之前宣布的那樣，我們完成了比利時 6 英寸晶圓廠的銷售，並預計將在第二季度完成將緬因州 8 英寸晶圓廠出售給二極管的交易。我們也有望在年底完成從 GLOBALFOUNDRIES 收購位於 East Fishkill 的 300 毫米晶圓廠。由於這些轉變需要數年時間才能完全執行和實現，我們一直在建立橋樑庫存，以確保為客戶提供穩定的產品供應。這些結構性變化，以及我們差異化的產品組合，正在推動我們贏得設計的動力，而 LTSA 和我們產品的粘性提高了對長期收入和盈利能力的可見性。

Turning to results for the first quarter. As I noted, Q1 was another quarter of record results. Total revenue was $1.95 billion, an increase of 31% over the first quarter of 2021 and 5% quarter-over-quarter. This increase was driven by favorable mix of automotive and industrial, which together grew by 8% quarter-over-quarter and 42% year-over-year.

轉向第一季度的結果。正如我所指出的，第一季度又是創紀錄的四分之一。總收入為 19.5 億美元，比 2021 年第一季度增長 31%，環比增長 5%。這一增長是由汽車和工業的有利組合推動的，它們環比增長 8%，同比增長 42%。

Revenue from both Intelligent Power and Intelligent Sensing was at record levels. Intelligent Power grew by 37% year-over-year to 47% of revenue and Intelligent Sensing grew by 35% year-over-year to 17% of revenue.

Intelligent Power 和 Intelligent Sensing 的收入均創歷史新高。 Intelligent Power 同比增長 37% 至收入的 47%，Intelligent Sensing 同比增長 35% 至收入的 17%。

Turning to the business units. Revenue for the Power Solutions Group, or PSG, was $986.7 million, an increase of 32% year-over-year. Revenue for our Advanced Solutions Group, or ASG, was $689.3 million, an increase of 30% year-over-year. Revenue for the Intelligent Sensing Group or ISG for the quarter was $269 million, an increase of 32% year-over-year.

轉向業務部門。電源解決方案集團 (PSG) 的收入為 9.867 億美元，同比增長 32%。我們的高級解決方案集團 (ASG) 的收入為 6.893 億美元，同比增長 30%。本季度智能傳感集團或 ISG 的收入為 2.69 億美元，同比增長 32%。

GAAP and non-GAAP gross margin for the first quarter was 49.4%. Our non-GAAP gross margin improved 420 basis points quarter-over-quarter, driven primarily by favorable mix and pricing ahead of rising input costs.

第一季度 GAAP 和非 GAAP 毛利率為 49.4%。我們的非美國通用會計準則毛利率環比提高了 420 個基點，這主要是由於有利的組合和在投入成本上升之前的定價。

Over the last year, we have exited approximately $200 million of noncore revenue at an average margin of 21% and reallocated this capacity to strategic products with accretive gross margins. The structural changes we have implemented give us confidence in the sustainability of the margin structure, raising the floor in all market conditions. We expect to see modest headwinds to our gross margin with increases in raw material and other input costs as well as start-up costs as we aggressively ramp our silicon carbide manufacturing offset by additional cost savings and manufacturing efficiencies. As such, we expect to maintain gross margins within the narrow range of our Q1 margin for the remainder of the year.

去年，我們以 21% 的平均利潤率退出了大約 2 億美元的非核心收入，並將這一產能重新分配給毛利率增加的戰略產品。我們實施的結構性變化使我們對保證金結構的可持續性充滿信心，提高了所有市場條件下的底線。我們預計，隨著原材料和其他投入成本以及啟動成本的增加，我們的毛利率將受到適度的不利影響，因為我們通過額外的成本節約和製造效率來抵消我們的碳化矽製造。因此，我們預計今年剩餘時間的毛利率將保持在第一季度利潤率的窄幅範圍內。

We also achieved record quarterly GAAP and non-GAAP operating margin of 33.3% and 33.9% respectively with our Q1 non-GAAP operating income growing quarter-over-quarter at a rate 4.5x faster than that of revenue. GAAP earnings per diluted share for the first quarter was $1.18, and non-GAAP EPS was $1.22 as compared to $0.35 in the first quarter of 2021 and $1.09 in Q4.

我們還實現了創紀錄的季度 GAAP 和非 GAAP 營業利潤率分別為 33.3% 和 33.9%，我們的第一季度非 GAAP 營業收入環比增長速度比收入快 4.5 倍。第一季度 GAAP 每股攤薄收益為 1.18 美元，非 GAAP 每股收益為 1.22 美元，而 2021 年第一季度為 0.35 美元，第四季度為 1.09 美元。

Now let me give you some additional numbers for your models. GAAP operating expenses for the first quarter were $314 million as compared to $395 million in the first quarter of 2021. Non-GAAP operating expenses were $302.8 million as compared to $324.7 million in the quarter a year ago and decreased $3.6 million sequentially. The decrease was primarily due to delayed hiring as we continue to reallocate resources to our focused products. We expect OpEx to trend towards our long-term model over the next several quarters as we increase investments for our long-term growth.

現在讓我為您的模型提供一些額外的數字。第一季度 GAAP 運營費用為 3.14 億美元，而 2021 年第一季度為 3.95 億美元。非 GAAP 運營費用為 3.028 億美元，而去年同期為 3.247 億美元，環比減少 360 萬美元。減少主要是由於我們繼續將資源重新分配給我們的重點產品而延遲招聘。隨著我們為長期增長增加投資，我們預計運營支出將在未來幾個季度趨向於我們的長期模式。

Our factory utilization was 81% flat as compared to the fourth quarter, and we expect utilization to be approximately 80% in the second quarter. As we guided in the past, our non-GAAP tax rate will increase in 2022 as we have substantially utilized all our NOL attributes. For the first quarter, our non-GAAP tax rate increased to 15.6% from roughly 6% in 2021. This change accounted for $0.16 of EPS dilution from the fourth quarter. Our GAAP diluted share count was 448.9 million shares, and our non-GAAP diluted share count was 442 million shares. Please note that we have an updated reference table on the Investor Relations section of our website to assist you with calculating our diluted share count at various share prices.

與第四季度相比，我們的工廠利用率為 81%，我們預計第二季度的利用率約為 80%。正如我們過去所指導的那樣，我們的非公認會計原則稅率將在 2022 年增加，因為我們已經充分利用了我們所有的 NOL 屬性。第一季度，我們的非公認會計原則稅率從 2021 年的大約 6% 增加到 15.6%。這一變化導致第四季度每股收益稀釋 0.16 美元。我們的 GAAP 稀釋股數為 4.489 億股，我們的非 GAAP 稀釋股數為 4.42 億股。請注意，我們在我們網站的投資者關係部分有一個更新的參考表，以幫助您計算我們在不同股價下的稀釋後股票數量。

Turning to the Q1 balance sheet. Cash and cash equivalents was $1.6 billion, and we added $1.97 billion undrawn on our revolver. Cash from operations was $470 million and free cash flow of $305 million. Capital expenditures during the first quarter was $173.8 million, which equates to a capital intensity of 9%.

轉向第一季度的資產負債表。現金和現金等價物為 16 億美元，我們在左輪手槍上增加了 19.7 億美元未動用。運營現金為 4.7 億美元，自由現金流為 3.05 億美元。第一季度的資本支出為 1.738 億美元，相當於 9% 的資本密集度。

As indicated previously, we are directing a significant portion of our capital expenditures towards enabling our 300-millimeter capabilities at East Fishkill fab and the expansion of silicon carbide capacity. This increase is in line with the higher capital intensity in the near term, as mentioned at our Analyst Day.

如前所述，我們將很大一部分資本支出用於在東菲什基爾工廠實現 300 毫米產能和擴大碳化矽產能。正如我們的分析師日所提到的，這一增長與近期較高的資本密集度一致。

Accounts receivable was $910.7 million, resulting in DSO of $43. Inventory increased $116.5 million sequentially to $1.5 billion as days of inventory increased by 15 days to 139. This increase was driven primarily by growth in WIP and raw material and additional build of inventory to support our fab transition and our LTSA commitments. We expect to reduce days of inventory in the second half of the year.

應收賬款為 9.107 億美元，DSO 為 43 美元。隨著庫存天數增加 15 天至 139 天，庫存環比增加 1.165 億美元至 15 億美元。這一增長主要是由於在製品和原材料的增長以及為支持我們的晶圓廠過渡和我們的 LTSA 承諾而增加的庫存。我們預計下半年庫存天數會減少。

Distribution inventory was slightly down at 7.1 weeks. We continue to maintain distribution inventory at historically low levels to hold more inventory on our balance sheet for our customers' needs rather than building inventory in the supply chain.

分銷庫存小幅下降至 7.1 週。我們繼續將分銷庫存維持在歷史低位，以便在我們的資產負債表上持有更多庫存以滿足客戶的需求，而不是在供應鏈中建立庫存。

Total debt was $3.2 billion, and our net leverage remains under 1.

總債務為 32 億美元，我們的淨槓桿率仍低於 1。

Turning to guidance for the second quarter. The table detailing our GAAP and non-GAAP guidance is provided in the press release related to our first quarter results. Let me now provide you key elements of our non-GAAP guidance for the second quarter.

轉向第二季度的指導。與我們第一季度業績相關的新聞稿中提供了詳細說明我們的 GAAP 和非 GAAP 指導的表格。現在讓我為您提供我們第二季度非公認會計原則指導的關鍵要素。

Based on current market trends, bookings and backlog levels, we believe demand will continue to outpace supply through much of 2023. We anticipate that revenue for the second quarter will be in the range of $1.965 billion to $2.065 billion. This guidance range includes the anticipated impact of the China lockdown of a couple of percentage points of revenue growth.

根據當前的市場趨勢、預訂和積壓水平，我們認為在 2023 年的大部分時間裡，需求將繼續超過供應。我們預計第二季度的收入將在 19.65 億美元至 20.65 億美元之間。該指導範圍包括中國封鎖對收入增長幾個百分點的預期影響。

We expect non-GAAP gross margins between 48.5% and 50.5%. This includes share-based compensation of $3.2 million. We expect non-GAAP operating expenses of $305 million to $320 million, including share-based compensation of $23.2 million. We anticipate our non-GAAP OIE to be $20 million to $24 million. And for the remainder of 2022, we expect our non-GAAP tax rate to be in the range of 15.5% to 16.5% and non-GAAP diluted share count for the second quarter to be approximately 443 million shares.

我們預計非美國通用會計準則毛利率在 48.5% 至 50.5% 之間。這包括 320 萬美元的股份補償。我們預計非美國通用會計準則運營費用為 3.05 億美元至 3.2 億美元，其中包括 2320 萬美元的股票薪酬。我們預計我們的非公認會計原則 OIE 為 2000 萬至 2400 萬美元。在 2022 年剩餘時間內，我們預計我們的非 GAAP 稅率將在 15.5% 至 16.5% 之間，第二季度非 GAAP 稀釋後的股票數量約為 4.43 億股。

This results in non-GAAP earnings per share to be in the range of $1.20 to $1.32. We expect capital expenditures of $240 million to $270 million in the second quarter as we ramp our silicon carbide production and invest in 300-millimeter capabilities.

這導致非公認會計原則每股收益在 1.20 美元至 1.32 美元之間。隨著我們提高碳化矽產量並投資於 300 毫米產能，我們預計第二季度的資本支出將達到 2.4 億美元至 2.7 億美元。

In summary, we believe ON Semi's differentiated portfolio focused on the sustainable ecosystem, coupled with the structural changes in our business will continue to drive profitable long-term growth and value for our shareholders. Our worldwide teams continue to impress us with their unwavering commitment and dedication to our customers despite ongoing challenges across the globe, and I want to thank them for their outstanding results.

總而言之，我們相信安森美專注於可持續生態系統的差異化投資組合，加上我們業務的結構性變化，將繼續為我們的股東推動盈利的長期增長和價值。儘管全球範圍內持續存在挑戰，我們的全球團隊仍以堅定不移的承諾和對客戶的奉獻精神給我們留下深刻印象，我要感謝他們取得的出色成績。

With that, I'll turn the call back over to Carmen to open up the line for Q&A.

有了這個，我將把電話轉回給 Carmen 以打開 Q&A 線路。

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

（操作員說明）您的第一個問題來自德意志銀行的 Ross Seymore。

Congrats on the strong results. Hassane, the first question is for you. I know you went through that you're basically not seeing any changes from the demand side of the equation. But investors clearly are having a hard time believing that that's going to persist even if you're not seeing it now. So could you go into a little more color? Any change in the demand behaviors by either end markets, geographies, just a little bit more cyclical comfort and detail on what you're seeing, so investors can kind of gauge that versus their recessionary or cyclical downturn fears?

恭喜取得了不錯的成績。哈桑，第一個問題是給你的。我知道你經歷過，你基本上沒有看到等式需求方面的任何變化。但投資者顯然很難相信這種情況會持續下去，即使你現在沒有看到它。那你能再多一點顏色嗎？終端市場、地域的需求行為是否有任何變化，只是對你所看到的情況進行了更多的周期性安慰和細節，因此投資者可以在某種程度上衡量這一點與他們對經濟衰退或週期性衰退的擔憂？

Yes. Look, Ross, I mean, I'll comment on the automotive and industrial, which is where our highest exposure is, we don't see any changes in the demand environment or even the outlook as far as demand versus supply, like Thad said, at least through 2023. We have the engagements that we've been talking about with long-term supply agreements that we've engaged went through '21 and even in the first quarter of '22, that extend beyond '23 into some of them '24, '25. And right now, we are in a path to extend most of these long-term supply agreements beyond the original time frame that we've had of '24 average. So the fact that customers are still focusing on the supply based on a very highly credible demand and their willingness to sign up for long-term supply agreements beyond '24 and '25 sometimes gives us that visibility and comfort of the sustainability of the demand.

是的。看，羅斯，我的意思是，我將評論汽車和工業，這是我們的最高風險敞口，我們看不到需求環境的任何變化，甚至沒有看到需求與供應的前景，就像薩德所說的那樣，至少到 2023 年。我們一直在談論的長期供應協議的參與經歷了 21 年，甚至在 22 年第一季度，這些協議超出了 23 年他們'24，'25。而現在，我們正在將這些長期供應協議中的大部分延長到我們原來的 24 年平均時間框架之外。因此，客戶仍然專注於基於非常可靠的需求的供應以及他們願意簽署 24 年和 25 年之後的長期供應協議的事實，有時讓我們對需求的可持續性有了可見性和舒適性。

And just remember, our biggest exposure, and it keeps increasing, as we mentioned in Analyst Day on the auto and industrial, are driven by the megatrends that I talked about. EVs are going to happen, whether they are -- they get to 50% of total demand in '28 or '26 or '27 is irrelevant, it's still fundamentally growing as a percent of total SAAR. That's the content that's driving our growth, and that's the exposure we have where customers are highly confident of their outlook and willing to sign up for it.

請記住，正如我們在汽車和工業分析師日中提到的那樣，我們最大的風險敞口並不斷增加，是由我談到的大趨勢驅動的。電動汽車將會發生，無論它們是——它們在 28 年或 26 年或 27 年達到總需求的 50% 是無關緊要的，它仍然從根本上增長佔總 SAAR 的百分比。這就是推動我們增長的內容，這就是我們擁有的曝光率，客戶對他們的前景充滿信心並願意註冊。

Hassane, I guess just for my follow-up one for Thad or you, Hassane, if you want is to pivot on to the gross margin side of things. Obviously, you guys have done a great job, surprised to the upside, pretty much every quarter since you took over. I wanted to get into 2 parts of that, the flatness going forward for the rest of the year. That, if you could walk through the puts and takes on that. And then the confidence with keeping the higher floor, a fore handle, has that changed? Is it what used to be 40% is now 45%? Any sort of color on the gross margin sustainability there?

哈桑，我想只是為了我為薩德或你的後續工作，哈桑，如果你願意的話，就是轉向毛利率方面的事情。顯然，自從你們接手以來，你們幾乎每個季度都做得很好，令人驚訝。我想了解其中的兩個部分，即今年剩餘時間的平坦度。那，如果你能走過看跌期權並承擔這一點。然後保持較高樓層的信心，前把手，有沒有改變？以前的 40% 現在是 45% 嗎？那裡的毛利率可持續性有什麼顏色嗎？

Yes. Ross, it's Thad. Look, as I said in our prepared remarks, we're really confident with the floor, especially where we are today with the margin today. We believe the floor is definitely with the fore handle. If I kind of think about the impact to gross margin, we saw a favorable mix this quarter. We saw favorable pricing ahead of the input costs. So we saw input costs coming at us. We've always said we're going to pass on those cost increases to our customers.

是的。羅斯，是泰德。看，正如我在準備好的評論中所說，我們對地板非常有信心，尤其是我們今天的保證金。我們相信地板肯定是帶有前把手的。如果我考慮一下對毛利率的影響，我們在本季度看到了有利的組合。我們在投入成本之前看到了有利的定價。因此，我們看到了投入成本。我們一直說我們會將這些成本增加轉嫁給我們的客戶。

So as you look forward, we've got a number of factors coming in play, right? So we've got favorability in the manufacturing side as we continue our staff lighter strategy. That's offset by increases in the input cost as well as in the second half of the year, we've got the ramping of silicon carbide, which is a headwind to margins because we don't exclude those start-up costs in our non-GAAP numbers.

因此，正如您所期待的那樣，我們有許多因素在起作用，對吧？因此，隨著我們繼續我們的員工更輕戰略，我們在製造方面獲得了青睞。這被投入成本的增加所抵消，在下半年，我們遇到了碳化矽的增長，這對利潤率來說是一個不利因素，因為我們沒有將這些啟動成本排除在我們的非公認會計原則數字。

And so you've got a headwind associated with that in the second half, and that's why we believe that we'll see the margins sustain in that Q1 range for the remainder of the year. Longer term, we still remain very optimistic in terms of where we're going, but we've got a lot to do between here and the end of the year.

因此，您在下半年遇到了與此相關的逆風，這就是為什麼我們相信我們將在今年餘下的時間裡看到第一季度的利潤率維持在這一範圍內。從長遠來看，我們對前進的方向仍然非常樂觀，但從這裡到年底，我們還有很多事情要做。

Your next question comes from Chris Barney with Citi.

您的下一個問題來自花旗銀行的 Chris Barney。

One more question on the gross margin. Can you talk about how much of the upside in Q1 was mix versus pricing and your pricing expectations for the rest of '22?

關於毛利率的另一個問題。您能否談談第一季度的組合與定價有多少上漲空間以及您對 22 年剩餘時間的定價預期？

Well, the mix versus pricing in Q1 to the first order, pricing was first followed by favorable mix, and that's what gave us the upside to our guidance in Q1. As we go forward, we'll continue to pass on incremental cost increases that we get in our models, either through input cost or from our external foundries. I think we continue to close the price-to-value discrepancy on those products and then we also plan on exiting the $300 million of noncore business later in the second half of the year. And as we've always said, we're basically pricing ourselves out of that market. And when supply comes online, we will exit that business.

嗯，第一季度的組合與定價到第一個訂單，定價首先是有利的組合，這就是我們在第一季度指導的優勢所在。隨著我們的前進，我們將繼續通過投入成本或來自我們的外部代工廠來傳遞我們在模型中獲得的增量成本增加。我認為我們將繼續縮小這些產品的價格與價值之間的差異，然後我們還計劃在下半年退出價值 3 億美元的非核心業務。正如我們一直說的那樣，我們基本上是在將自己排除在那個市場之外。當供應上線時，我們將退出該業務。

And for my follow-up, you said no change in lead times. So would you say that the -- I guess, the overall shortage situation for ON is about the same as it was in the last couple of quarters? And do you anticipate any improvement in the shortage/supply situation before the end of the year?

對於我的跟進，你說交貨時間沒有變化。所以你會說 - 我猜，ON的整體短缺情況與過去幾個季度的情況大致相同？您預計今年年底之前短缺/供應情況會有所改善嗎？

Yes. This is Hassane. Yes, I would say there's no change as far as demand versus supply to date. We don't see that changing materially over the next few quarters, call it, for the remainder of '22. We do have some manufacturing efficiencies and some supply coming online from investments we've done in '21, but not to the level to meet demand. So we'll still be supply constrained through '22 and even with the outlook we have for '23.

是的。這是哈桑。是的，我想說迄今為止的需求與供應沒有變化。在接下來的幾個季度中，我們認為在 22 年剩餘時間內不會發生實質性變化。我們確實有一些製造效率和一些供應來自我們在 21 年所做的投資，但沒有達到滿足需求的水平。因此，到 22 年，我們仍然會受到供應限制，即使我們對 23 年的展望也是如此。

Your next question comes from Vivek Arya with Bank of America.

您的下一個問題來自美國銀行的 Vivek Arya。

Hassane, I thought you mentioned that you have excluded some impact of China lockdowns in your Q2 outlook. I was hoping you could help us quantify how much is that? And is this something you can recover later in the year? Is this something that you can deliver to customers outside of the other, I believe, in Manila and Singapore distribution centers? Just how are you quantifying the impact of lockdowns? Or is this a headwind even for the second half of the year?

哈桑，我想你提到你已經在你的第二季度展望中排除了中國封鎖的一些影響。我希望你能幫助我們量化那是多少？這是你可以在今年晚些時候恢復的東西嗎？我相信，您可以在馬尼拉和新加坡配送中心以外的地方向客戶提供這種東西嗎？您如何量化封鎖的影響？或者這甚至是下半年的逆風？

Yes. Look, I mean, obviously, we see -- let me give you some of the numbers. So what we have already included in our guide for Q2 is a couple of percentage point of top line. So that's kind of the impact we've included. That's based on what we see today, not knowing when a potential lift of the restriction is going to be. So that's why we put in.

是的。看，我的意思是，很明顯，我們看到了——讓我給你一些數字。因此，我們已經在第二季度指南中包含了幾個百分點的收入。這就是我們所包含的影響。這是基於我們今天看到的情況，不知道何時可能解除限制。所以這就是我們投入的原因。

We don't see that demand going away. It's still there. That's why we are trying to funnel as much of it as we can through our other distribution, but we do see that challenge in the short term. So I don't see that as a demand environment outlook -- impacting outlook, but it is a short term.

我們認為這種需求不會消失。它還在那裡。這就是為什麼我們試圖通過我們的其他發行版盡可能多地匯集它，但我們確實在短期內看到了這一挑戰。因此，我不認為這是需求環境前景——影響前景，但這是短期的。

Now you can call it short term, but I don't have that visibility of when the lockdown does happen. We've engaged with all customers as far as demand. It's still there. All it does is puts us a little bit more behind on meeting that demand from a supply perspective. But I do expect that to flush out as soon as the lockdowns are done, but we thought it will be prudent to just put that in as far as the guide because the risk is out there.

現在你可以把它稱為短期的，但我不知道鎖定何時發生。就需求而言，我們已經與所有客戶進行了接觸。它還在那裡。從供應的角度來看，它所做的只是讓我們在滿足需求方面落後了一點。但我確實希望一旦封鎖完成，它就會消失，但我們認為將其放入指南中是謹慎的，因為風險就在那裡。

Got it. Hassane, longer-term silicon carbide, could you maybe give us a sense of what percentage of your sales does silicon carbide represent today? And then where do you see it going? And how do you differentiate between some of your competitors who are focused on the material side, such as Wolfspeed or II-VI and then others who are coming at it from a device incumbency perspective, such as Infineon and ST? What are ON's main differentiators in the silicon carbide market?

知道了。 Hassane，長期碳化矽，您能否告訴我們今天碳化矽佔您銷售額的百分比？然後你認為它會走向何方？您如何區分一些專注於材料方面的競爭對手，例如 Wolfspeed 或 II-VI，以及其他從設備在位角度出發的競爭對手，例如英飛凌和 ST？ ON 在碳化矽市場的主要區別是什麼？

Yes, sure. So from -- for the first part of the question, I'm not breaking up the -- breaking out the silicon carbide. I'm just giving the ramp rates and those ramp rates, just to remind everybody we're expecting to more than double our revenue this year and puts us on track for the $1 billion run rate in '23. Those are kind of the high growth. And all of this, again, to put it in perspective, are all committed revenue and long-term supply agreements. So right now, we're building capacity to service that demand that we already have as committed revenue from -- across a wide variety of geographies and customers.

是的，當然。所以從 - 對於問題的第一部分，我不會分解 - 分解碳化矽。我只是給出斜坡率和那些斜坡率，只是為了提醒大家，我們預計今年的收入將增加一倍以上，並使我們在 23 年實現 10 億美元的運行率。這些是一種高增長。所有這一切，再一次，把它放在正確的角度來看，都是承諾的收入和長期供應協議。所以現在，我們正在建設能力來滿足我們已經承諾收入的需求——跨越各種各樣的地區和客戶。

From the differentiation, you mentioned the 2 kind of -- the 2 ways of coming at it. And where onsemi sits is actually the sweet spot in the middle where we are able to support our customers with our substrate, the vertical integration and support our customers with the know-how that we've built over multiple decades of device and more importantly, packaging.

從差異化中，你提到了兩種——兩種方法。 Onsemi 所在的位置實際上是中間的最佳位置，我們能夠通過我們的基板、垂直整合和支持我們的客戶，用我們在數十年的設備中建立的專有技術支持我們的客戶，更重要的是，包裝。

So the ability to have substrate from a supply assurance, the know-how for device, design all the way to packaging in order to get the best solution to fit the customer need is why we win and why our customers have been awarding us a lot of that business that we've been talking about over the last few quarters and more to come. But our focus right now is ramping up our supply chain, ramping up our silicon carbide substrate through the GTAT, as I mentioned. We have a heavy ramp coming, but our focus is on our LTSA commitments to our customers. And we continue to win this quarter and some of our funnel as it keeps converting to committed revenue.

因此，能夠從供應保證、設備專業知識、設計一直到包裝，以獲得滿足客戶需求的最佳解決方案，這就是我們獲勝的原因，也是我們的客戶一直給予我們很多獎勵的原因我們在過去幾個季度以及未來更多季度一直在談論的業務。但正如我所提到的，我們現在的重點是提升我們的供應鏈，通過 GTAT 提升我們的碳化矽襯底。我們有一個沉重的坡道，但我們的重點是我們對客戶的 LTSA 承諾。我們繼續贏得本季度和我們的一些渠道，因為它不斷轉化為承諾收入。

Your next question comes from Toshiya Hari with Goldman Sachs.

您的下一個問題來自高盛的 Toshiya Hari。

I had 2 as well, first on silicon carbide. Hassane, I was hoping you could give us an update on the design win funnel? Obviously, you reiterated your view on '22 and exit run rate for '23. But last quarter, I think you gave a $2.6 billion number through 2024. I was hoping to get an update on that. And if you can speak to the mix between automotive and energy infrastructure, that would be helpful.

我也有 2 個，首先是碳化矽。哈桑，我希望你能給我們提供有關設計獲勝漏斗的最新信息？顯然，您重申了您對 22 年和 23 年退出運行率的看法。但上個季度，我認為你給出了一個到 2024 年 26 億美元的數字。我希望能得到更新。如果你能談談汽車和能源基礎設施之間的混合，那將是有幫助的。

Yes, sure. I mean, look, I'll reiterate the committed revenue number of $2.6 billion. Obviously, we have a lot of design win in the offer that I'll be hoping to talk about over the next few quarters to '22 as we close these out. But from a -- at a high level, the highest percent of that revenue is coming from traction just because of the TAM. EV is the biggest TAM for silicon carbide. So therefore, our biggest -- I would say, 80% or so, $2 billion of that is in automotive traction. The rest of the $2.6 billion that I talked about is in nonautomotive traction. So think about it as the industrial side of alternative energy or infrastructure that I talked about, that has been ramping.

是的，當然。我的意思是，看，我將重申 26 億美元的承諾收入數字。顯然，我們在報價中獲得了很多設計勝利，我希望在接下來的幾個季度到 22 年結束時談論這些方面。但是從一個較高的水平來看，該收入的最高百分比來自牽引力，這僅僅是因為 TAM。 EV 是碳化矽的最大 TAM。因此，我們最大的——我想說，80% 左右，其中 20 億美元用於汽車牽引。我談到的 26 億美元的其餘部分用於非汽車牽引。所以把它想像成我談到的替代能源或基礎設施的工業方面，它一直在增加。

I talked about being 50% growth in 2022 from 2021 last quarter, we closed the first quarter at 65% growth. So we're growing that business nicely outside of just the automotive and that's very broad across geographies and very broad across customers. And more importantly, we are engaged with the Top 10, as I mentioned in my prepared remarks.

我談到了從 2021 年上個季度到 2022 年的 50% 增長，我們以 65% 的增長結束了第一季度。因此，我們正在很好地發展汽車業務之外的業務，而且業務範圍非常廣泛，跨地域和客戶範圍都非常廣泛。更重要的是，正如我在準備好的評論中提到的那樣，我們與前 10 名合作。

And then I've got a quick follow-up for Thad as well on the gross margin side. You talked about silicon carbide and the ramp there being the headwind later this year and, I guess, potentially into 2023. I was hoping you could quantify that for us and when you'd expect it to reverse and to be more of a tailwind for your business? Is it late '23 when you're run rating at about $1 billion? Is it beyond that? Any comment there would be helpful and the positive benefits from Belgium, Maine and, I guess, East Fishkill. I know this probably takes a couple of years, but if you can speak to that as well, that would be super helpful. .

然後我在毛利率方面也對 Thad 進行了快速跟進。你談到了碳化矽和今年晚些時候的逆風，我猜，可能會持續到 2023 年。我希望你能為我們量化這一點，當你期望它逆轉並成為更多的順風時你的事？ 23 年末，你的運行評級約為 10 億美元？是不是超出了這個範圍？那裡的任何評論都會有所幫助，並且來自比利時、緬因州和我猜是東菲什基爾的積極利益。我知道這可能需要幾年時間，但如果你也能談談，那將非常有幫助。 .

Yes. So the silicon carbide will be a headwind for us starting the second half of this year. We'll go through really be a headwind probably for the first half of next year as well and then start to be accretive. So the product margins are accretive. Obviously, it's the start-up cost as we ramp the production to support those LTSAs.

是的。因此，從今年下半年開始，碳化矽將成為我們的逆風。我們可能會在明年上半年經歷真正的逆風，然後開始增長。因此，產品利潤率是遞增的。顯然，這是我們增加生產以支持這些 LTSA 的啟動成本。

In terms of the Belgium fab over time, we will get -- let me talk about the Maine side first is about $30 million to $35 million of fixed costs that come out over time. Now we'll be buying products from that acquirer over time. So as we exit, that's when we start to see the benefit. Belgium is a lower scale fab. So it's less than that. It's roughly about $20 million of fixed costs that disappear over time as well.

隨著時間的推移，就比利時工廠而言，我們將得到——讓我先談談緬因州，隨著時間的推移，大約有 3000 萬至 3500 萬美元的固定成本。現在我們將隨著時間的推移從該收購方購買產品。所以當我們退出時，那是我們開始看到好處的時候。比利時是一個規模較小的晶圓廠。所以它比那個少。大約 2000 萬美元的固定成本也會隨著時間的推移而消失。

Your next question comes from William Stein with Truist Securities.

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

I wonder if you can remind us what the revenue level of products that you're exiting is expected to do over the next couple of quarters? And are you done with those product exits by the end of this year?

我想知道您是否可以提醒我們，您正在退出的產品的收入水平預計在接下來的幾個季度會做什麼？您是否在今年年底之前完成了這些產品的退出？

Yes. So we exited about $32 million in Q1. We don't see anything meaningful in Q2. In the second half of this year, we think there's another roughly $300 million that we would exit. And you can think about that margin has been higher than what we've done in the past. What we said is, so far, we've exited, in total, $200 million, a 21% gross margin this next 300 just because of the pricing environment is higher than that but still dilutive to overall margins.

是的。所以我們在第一季度退出了大約 3200 萬美元。我們在第二季度看不到任何有意義的事情。在今年下半年，我們認為還有大約 3 億美元我們將退出。你可以想像，這個利潤比我們過去所做的要高。我們所說的是，到目前為止，我們總共退出了 2 億美元，下一個 300 的毛利率為 21%，只是因為定價環境高於此，但仍會稀釋整體利潤率。

We are -- as we said at our Analyst Day back in August of last year, we said it would be 10% to 15%. So in total, we've got to get somewhere around $800 million to $900 million of losses. So we will still -- as we detailed at our Analyst Day, there's still more to come in 2023. And obviously, we moved that capacity into the higher-margin products, it allows us to free up that capacity rather than put more money in more capital into the manufacturing and move it into the higher-margin products. So favorable mix.

我們是 - 正如我們在去年 8 月的分析師日所說的那樣，我們說這將是 10% 到 15%。所以總的來說，我們必須損失大約 8 億到 9 億美元。所以我們仍然會——正如我們在分析師日所詳述的那樣，2023 年還會有更多。顯然，我們將產能轉移到利潤率更高的產品中，這讓我們能夠釋放產能，而不是投入更多資金更多的資本進入製造業並將其轉移到利潤率更高的產品中。如此有利的組合。

Great. And if I could follow up with any change in order patterns or point of sale through the channel. I think you said demand is still very stable and strong in the direct business. I wonder if that -- if you were including the channel in that or if there's any change there?

偉大的。如果我可以通過渠道跟進訂單模式或銷售點的任何變化。我想你說的直接業務的需求仍然非常穩定和強勁。我想知道這是否 - 如果您將頻道包括在其中，或者那裡是否有任何變化？

Yes. This is Hassane. We don't see that. We -- I include demand across whether it's direct or through distribution just to make point. Even our distribution customers, we have direct contact with them. So we have a quick touch point on the demand. We see that across the board at this point, as Thad mentioned.

是的。這是哈桑。我們沒有看到。我們 - 我包括直接或通過分發的需求，只是為了說明問題。即使是我們的分銷客戶，我們也與他們有直接聯繫。所以我們對需求有一個快速的接觸點。正如 Thad 所說，我們在這一點上全面看到了這一點。

We're holding inventory and maintaining the distribution inventory at a historically low level in order to maintain that visibility and be able to service the demand that we need for all of our customers. So when we make comments about demand, we include direct and distribution demand in that, and all of them are within the commentary that we set highly constrained and supply is not yet meeting the demand through '23.

我們持有庫存並將分銷庫存維持在歷史最低水平，以保持這種可見性並能夠滿足我們所有客戶的需求。因此，當我們對需求發表評論時，我們將直接和分銷需求包括在內，所有這些都在我們設置的高度受限的評論中，並且供應尚未滿足 23 年的需求。

And the next question comes from Harsh Kumar with Piper Sandler.

下一個問題來自 Harsh Kumar 和 Piper Sandler。

First of all, congratulations on implementing an amazing turnaround. What you guys have done has just been amazing so far. Hassane and Thad I'm kind of curious of the business as we go into the June quarter and look at the guidance, do you sort of expect something similar like what happened in 1Q where industrial and automotive grow to the same degree on a sequential basis. Or is there something else that we should think about? Maybe you could provide us some color on how we think of revenue breakdown?

首先，祝賀您實現了驚人的轉變。到目前為止，你們所做的一切令人驚嘆。 Hassane 和 Thad 當我們進入 6 月季度並查看指導時，我對這項業務有點好奇，你是否期待類似第一季度發生的情況，工業和汽車連續增長到相同程度.或者還有什麼我們應該考慮的？也許您可以為我們提供一些關於我們如何看待收入細分的顏色？

So to a first order, the answer is yes. Our guide is driven by auto and industrial, more led by automotive in the second quarter as we see more of the strength and really, the ramps for some of our customers under the LTSAs that we talked about. So it will be about the same growth, but led by automotive.

因此，首先，答案是肯定的。我們的指南由汽車和工業驅動，在第二季度更多地由汽車驅動，因為我們看到了更多的實力，實際上，在我們談到的 LTSA 下，我們的一些客戶的坡道。所以這將是大致相同的增長，但由汽車領導。

Great. And then my question was on gross margin. This incredible rise you've shown in the March quarter. I think you mentioned earlier in response to Christopher Danely's question that there was an element of price increase here. Are you specifically raising prices in the channel? Or is this just getting out of sort of cheaper stuff on legacy stuff and sort of implementing a mix change? So maybe you could clarify if there's an absolute dollar increase in ASPs that you're implementing?

偉大的。然後我的問題是毛利率。您在 3 月季度表現出的這種令人難以置信的增長。我想你之前在回答 Christopher Danely 的問題時提到這裡存在價格上漲的因素。是不是專門在渠道漲價？或者這只是在舊產品上擺脫更便宜的東西並實施混合變化？因此，也許您可以澄清您正在實施的 ASP 是否有絕對的美元增長？

Look, it's all of the above that you mentioned. So first off, it is all led by the price-to-value discrepancies that I keep talking about where we are recalibrating our complete demand across the value of our products. When we do that and as we mix -- we shift more to auto and industrial, which drive higher ASP and higher margin, that gives us that sustainable margin expansion that we've been seeing. So all of these are both increase in the value of our products and a mix shift more to these increases. That's one.

你看，上面說的都是你說的。所以首先，這一切都是由價格與價值的差異導致的，我一直在談論我們在哪裡重新調整我們對產品價值的完整需求。當我們這樣做時，隨著我們的混合——我們更多地轉向汽車和工業，這推動了更高的平均售價和更高的利潤率，這給了我們所看到的可持續的利潤率擴張。因此，所有這些都增加了我們產品的價值，並且更多地轉向了這些增加。那是一個。

Two, we do have net price increases that we've talked about. That $200 million that we've exited so far or the $32 million we exited with 22% margin this quarter, that is in a favorable pricing environment. So there is pricing increases included in that, but that's not sustainable. As we talked about, we lost that revenue. We expect another about $300 million in '22 at dilutive margin.

第二，我們確實有我們談到的淨價格上漲。到目前為止，我們已經退出的 2 億美元或本季度以 22% 的利潤率退出的 3200 萬美元，處於有利的定價環境中。因此，其中包括價格上漲，但這是不可持續的。正如我們所說，我們失去了收入。我們預計 22 年還會有約 3 億美元的攤薄利潤。

So when we exit that business, our margin will have more of an expansion because of it. But that was a net price increase because we're pricing ourselves out of that market. So that's the 2 buckets you can take a look at it. One is the sustainable bucket that we see forward looking and longer term and the shorter-term bucket that was net increase from where we were historically, still dilutive, but not sustainable and that will be exited throughout this year and a little bit next year.

因此，當我們退出該業務時，我們的利潤將因此而擴大。但這是淨價格上漲，因為我們將自己定價在該市場之外。這就是您可以查看的 2 個存儲桶。一個是我們認為具有前瞻性和長期性的可持續桶，以及從歷史上淨增加的短期桶，仍然具有稀釋性，但不可持續，並將在今年和明年退出一點點。

Your next question comes at Matt Ramsay with Cowen.

您的下一個問題來自與 Cowen 的 Matt Ramsay。

Hassane, I wanted to ask another question about silicon carbide. And I guess the question that I get from investors most is not the demand side, it's not the visibility of design wins that you have, it's the confidence that you can scale capacity with GTAT to the levels that you're forecasting. And maybe you could give us a little bit of insight of how the operations are going and your confidence in being able to scale that revenue so quickly with internal supply at good margins?

哈桑，我想問另一個關於碳化矽的問題。而且我想我從投資者那裡得到的最多的問題不是需求方面，也不是你所擁有的設計勝利的可見性，而是你可以通過 GTAT 將產能擴展到你預測的水平的信心。也許您可以給我們一些關於運營情況的見解，以及您對能夠在內部供應以高利潤率的情況下如此迅速地擴大收入的信心？

Sure. I guess the biggest vote of confidence that I can give is we opened up another building because the first building is already full and outputting exactly what we expected it to. And I mentioned that in my prepared remarks as far as yield and capacity or how many millimeters of substrate a factory does output. So we're on track with all of those metrics. And right now, it's no longer about the engineering side or the development. It's more about the manufacturing expansion. .

當然。我想我能投出的最大信任票是我們打開了另一座大樓，因為第一座大樓已經滿員了，而且輸出的結果完全符合我們的預期。我在準備好的評論中提到了產量和產能或工廠生產多少毫米的基板。所以我們在所有這些指標上都走上了正軌。現在，它不再是關於工程方面或開發。更多的是關於製造業的擴張。 .

We've secured another site. We are on track to quadrupling our output exiting '22 as far as, again, the number of furnaces that translate into millimeter height of substrates. High confidence, I guess, in summary, very high confidence. Our CapEx is going there. We're already generating revenue based on that material. So all in all, I'm very bullish about the prospect and we're pushing forward supporting -- in order to support our LTSA. So that would be what I would say.

我們已經保護了另一個站點。我們有望在 22 年之前將我們的產量翻兩番，再次將轉化為毫米高度基板的熔爐數量提高四倍。高信心，我想，總而言之，非常高的信心。我們的資本支出正在走向那裡。我們已經根據該材料產生了收入。總而言之，我非常看好前景，我們正在推動支持——以支持我們的 LTSA。所以這就是我要說的。

That's really helpful. As my follow-up question, there's been a lot of back and forth on gross margin on this call. And I think it's remarkable what you guys have done. My own view was that given the barriers of entry in power semis that the margin profile of yourselves and your competitors should be sort of higher than it's been.

這真的很有幫助。作為我的後續問題，這次電話會議的毛利率有很多來回。我認為你們所做的很了不起。我自己的觀點是，考慮到功率半導體的進入壁壘，你自己和你的競爭對手的利潤率應該比以前更高。

And we're seeing that with your results and with some of your competitors' results as well. I guess the question is, how have you seen the competitive response from the rest of the players in the space to increased pricing that you've put out there, increased margins for the group, are everyone sort of acting rationally. Do you think this is sort of sustainable for yourself and peer companies? Or do you see any kind of changes in the pricing environment from competitors that might make some of this temporary?

我們從您的結果以及您的一些競爭對手的結果中看到了這一點。我想問題是，您如何看待該領域其他參與者對您提出的更高定價的競爭反應，增加團隊的利潤，每個人都在理性行事。你認為這對你自己和同行公司來說是可持續的嗎？或者您是否看到競爭對手的定價環境發生任何變化，這可能會使這些變化暫時發生？

Sure. That's a very good question. And obviously, I can't comment on what my competitors will do in an environment today or later, especially on pricing and so on. The only thing I can't control is what our view of the market is and our view of the pricing environment is. So I'll focus my answer on that. We view this as sustainable because it's driven by value. But I will remind everybody the portion that we acknowledge is not sustainable, is on the noncore that we plan on exiting and we price ourselves out of the market.

當然。這是一個非常好的問題。顯然，我無法評論我的競爭對手在今天或以後的環境中會做什麼，尤其是在定價等方面。我唯一無法控制的是我們對市場的看法以及我們對定價環境的看法。所以我會集中回答這個問題。我們認為這是可持續的，因為它是由價值驅動的。但我會提醒大家，我們承認的部分是不可持續的，是我們計劃退出的非核心部分，我們將自己定價退出市場。

So what does that mean? In the future where demand and supply starts to come in balance, we're not going to chase that down. our competitors may end up hashing it out amongst themselves, but you were not going to see onsemi engaging in a pricing down to keep market share. That's not what our company is about. We're going to focus on the value. Our products today that we're focusing on are strategic and our growth are based on value we provide to customers, that pricing is stable. I don't see it going anywhere else. And for the rest of the market, let them hash it out, but we're not going to chase it down.

那是什麼意思？在需求和供應開始平衡的未來，我們不會追逐它。我們的競爭對手最終可能會在彼此之間進行討論，但您不會看到 onsemi 降低價格以保持市場份額。這不是我們公司的目的。我們將專注於價值。我們今天關注的產品是戰略性的，我們的增長基於我們為客戶提供的價值，定價是穩定的。我看不到它會去其他任何地方。對於市場的其餘部分，讓他們將其淘汰，但我們不會追趕它。

Your next question comes from Harlan Sur with JPMorgan.

您的下一個問題來自摩根大通的 Harlan Sur。

Congratulations on the strong results and execution. On the noncore low-margin businesses, as you've mentioned, you're exiting another $300 million in the second half. Previously, you thought that this exit would temper the second half and full year revenue growth profile, but drive strong margins. But the team actually continues to unlock better-than-expected manufacturing efficiencies, and it does seem like you guys are getting more external supply as well. So I guess, how should we think about the profile of second half revenues versus the first half?

祝賀您取得了驕人的成績和執行力。正如您所提到的，在非核心低利潤業務方面，您將在下半年退出另外 3 億美元。此前，您認為此次退出將緩和下半年和全年的收入增長情況，但會推動強勁的利潤率。但該團隊實際上繼續釋放好於預期的製造效率，而且你們似乎也獲得了更多的外部供應。所以我想，我們應該如何看待下半年收入與上半年的對比？

Well, look -- Harlan, it's Thad. What we're seeing right now is we're seeing strength out there right now, right? As we said, demand continues to outstrip supply. As we've noted, we are getting more supply from our external foundry partners. We're extracting more out of our own manufacturing footprint. So that will give us some upside in the second half. Now again, keep in mind, we've got the headwind of the $300 million that will roll off. So we don't see significant growth, but we see that the second half will actually outperform the first half if you look Q3, Q4 versus Q1 and Q2.

好吧，看——哈倫，是泰德。我們現在看到的是我們現在看到了力量，對吧？正如我們所說，需求繼續超過供應。正如我們所指出的，我們從外部代工合作夥伴那裡獲得了更多的供應。我們正在從我們自己的製造足跡中提取更多。因此，這將在下半場給我們帶來一些好處。現在，請記住，我們已經遇到了即將推出的 3 億美元的逆風。所以我們看不到顯著的增長，但如果你看第三季度、第四季度與第一季度和第二季度，我們看到下半年實際上將優於上半年。

Perfect. I appreciate the insights there. And then as my follow-up, despite the aggressive exit of the noncore low-margin businesses, I mean, your other segments still drove strong 15% year-over-year growth in the quarter. In this segment, you do actually have a fast-growing, high-margin end market focus, which you touched upon a little bit, but this is your cloud data center and 5G infrastructure markets, right?

完美的。我很欣賞那裡的見解。然後作為我的後續行動，儘管非核心低利潤率業務積極退出，我的意思是，您的其他部門仍然推動本季度強勁的 15% 同比增長。在這個領域，你確實有一個快速增長、高利潤的終端市場重點，你稍微提到了一點，但這是你的雲數據中心和 5G 基礎設施市場，對吧？

You guys have a pretty strong portfolio, medium voltage MOSFETs, power management, analog products. You talked about the strong design win pipeline. But from a revenue perspective, I know you guys have targeted this market to go at about an 11% CAGR going forward. But just given strong data center compute spending trends, strong 5G non-China build-out activity, can you guys just give us a rough sense on how fast this part of the business is currently growing on a year-over-year basis?

你們擁有非常強大的產品組合，中壓 MOSFET、電源管理、模擬產品。你談到了強大的設計獲勝管道。但從收入的角度來看，我知道你們已經將這個市場的目標定為未來的複合年增長率約為 11%。但是，鑑於強勁的數據中心計算支出趨勢、強勁的 5G 非中國建設活動，你們能否大致了解這部分業務目前的同比增長速度？

Yes. Look, I didn't break it up specifically as far as growth, but the design win that is fueling that growth was about 33% year-over-year. This is new designs and replacing incumbents, further supporting our 11%. So the 11% we talked about, you're absolutely right. We do have growth in that other segment and that's driven by the cloud, which is key for us from a growth and margin expansion business. Our design wins, our revenue today supports a comfortable 11% growth over the next 5 years.

是的。看，我沒有具體分解它的增長，但推動增長的設計勝利同比增長約 33%。這是新設計和替代現有產品，進一步支持我們的 11%。所以我們談到的 11%，你是絕對正確的。我們在其他領域確實有增長，這是由雲驅動的，這對我們來說是增長和利潤擴張業務的關鍵。我們的設計獲勝，我們今天的收入支持未來 5 年 11% 的舒適增長。

Your next question comes from Joe Moore with Morgan Stanley.

您的下一個問題來自摩根士丹利的喬摩爾。

Going back to the China potential disruption that you talked about, can you talk about how much of that is your facilities in China versus impact from your customers' manufacturing? Do you see impact from either of those? And then there were some press commentary that there was an image sensor specific supply coming out of China. Can you just talk if there's any disproportionate impact there?

回到您談到的中國潛在的破壞，您能否談談您在中國的設施與客戶製造的影響有多少？你看到其中任何一個的影響嗎？然後有一些媒體評論說有一個圖像傳感器特定的供應來自中國。如果那裡有任何不成比例的影響，你能談談嗎？

Yes. Look, so it's primarily the supply disruption overall. Think about logistics, think about getting material in and out of factories and so on. So we're able to mitigate some of that by rerouting, but the lack of mobility is what is hard to judge. I don't know what commentary you're referring to on the image sensor. I can't comment on that because that did not come from ON Semi source. I don't see any specific product impacted versus just, like I said, the logistics that everybody has been commenting about. That's really their present on the ground. And like we talked about, we do see that. We put it into our guide already. So depending on how that loosens up, we'll talk about it in the second quarter.

是的。看，所以這主要是整體供應中斷。考慮物流，考慮將材料進出工廠等等。因此，我們能夠通過重新路由來緩解其中的一些問題，但缺乏流動性是很難判斷的。我不知道您在圖像傳感器上指的是什麼評論。我不能對此發表評論，因為那不是來自 ON Semi 的來源。我沒有看到任何特定產品受到影響，就像我說的那樣，每個人都在評論的物流受到影響。這真的是他們在地面上的禮物。就像我們談到的那樣，我們確實看到了這一點。我們已經將它放入我們的指南中。因此，根據情況如何放鬆，我們將在第二季度討論它。

Your next question comes from Raji Gill with Needham & Company.

您的下一個問題來自Needham & Company 的Raji Gill。

Congratulations on the strong results across the board. Just Thad, going back to pricing, if I can, we talked about some of the impact of favorable pricing on the margins. But with respect to revenue, the auto industrial segment grew 42% year-over-year combined. Is there a way to kind of break that out between unit growth versus ASP growth? And it really speaks to the larger point about the sustainability of the pricing in the core business. As part of your LTSA agreements you have price increases. So I just want to talk a little bit about kind of price versus units?

祝賀全面的強勁結果。只是 Thad，回到定價，如果可以的話，我們談到了優惠定價對利潤率的一些影響。但就收入而言，汽車工業部門的總收入同比增長 42%。有沒有辦法在單位增長和平均售價增長之間打破這種局面？它確實說明了核心業務定價的可持續性。作為 LTSA 協議的一部分，您可以提高價格。所以我只想談談價格與單位的關係？

Look, a lot of the growth in our strategic core is driven by units that we talk about the content because a lot of the price-to-value discrepancy that we talked about, that was implemented primarily in '21. So a lot of the growth moving forward is a lot of it is content. But overall, units will be down because a lot of the exits that we've done is low ASP, low margin, high volume. So we focus our unit comps to where our strategic focus has been, and that's been increasing, and I mentioned that in my prepared remarks, driven a lot by the content, not just per car, from apples-to-apples, car to car, where there's more content, whether it's imaging or power, but also as we shift more into EVs that have much more content.

看，我們戰略核心的很多增長都是由我們談論內容的單位推動的，因為我們談論的很多價格與價值的差異主要是在 21 年實施的。因此，向前發展的很多增長都是內容。但總體而言，單位將下降，因為我們所做的很多退出都是低平均售價、低利潤率、高銷量。因此，我們將我們的單位組合集中在我們的戰略重點上，而且這種情況一直在增加，我在準備好的評論中提到，很大程度上受內容驅動，而不僅僅是每輛車，從蘋果到蘋果，從汽車到汽車，有更多內容的地方，無論是成像還是動力，而且隨著我們更多地轉向擁有更多內容的電動汽車。

So from that perspective, it's driven by units. The ASP is in the baseline to a first order. And as we ship more of the auto and industrial, we're going to benefit from the ASP reset that we've done in throughout '21, which calls it, in my view, sustainable as we move forward.

所以從這個角度來看，它是由單位驅動的。 ASP 處於第一階的基線。隨著我們運送更多的汽車和工業產品，我們將受益於我們在整個 21 年所做的 ASP 重置，在我看來，這在我們前進的過程中是可持續的。

Got it. That's really helpful, Thad, and just for my follow-up Hassane is that you talked about getting capacity from your external foundries as well as kind of better capacity from your internal factories and that's driving some upside in the second half. But you also kind of mentioned that the demand is going to exceed supply if I heard you correctly through much of 2023. So I just want to get a sense in terms of the demand supply conditions as you kind of look out to 2023. If we continue to be in a very kind of tight supply environment, is there a way to kind of assess the magnitude of it? Is it going to be less constrained next year but still constrained, any sense there in terms of demand, supply imbalance?

知道了。這真的很有幫助，Thad，就我的後續報導來說，Hassane 談到了從外部代工廠獲得產能以及從內部工廠獲得更好的產能，這在下半年推動了一些上漲。但你也提到，如果我沒聽錯的話，在 2023 年的大部分時間裡，需求將超過供應。所以我只是想了解一下 2023 年的供需狀況。如果我們繼續處於非常緊張的供應環境中，有沒有辦法評估它的嚴重程度？明年會不會受到更少的限制，但仍然受到限制，在需求、供應不平衡方面有什麼意義嗎？

Yes. Yes, that's a good -- so we are getting obviously some increases from foundry and some reducing bottlenecks internally in our manufacturing. But like I said, not enough to catch up to the demand. So if I answer the question directly, we do see increase in supply through '22 and even '23. But based on where the demand is, it's not going to get into balance. And that's where I keep talking about the supply constraint because it's the supply and demand side. Both of them increase -- demand has increased at a faster rate, which keeps us a little bit behind because it takes 18 to 24 months to add capacity these days with all of the lead times and everything. Demand has been increasing. So net-net, we're not catching up. But we have been making investments in our CapEx, but very specifically on technologies.

是的。是的，這很好——所以我們顯然從代工廠獲得了一些增長，並在我們的製造內部減少了一些瓶頸。但就像我說的，不足以滿足需求。因此，如果我直接回答這個問題，我們確實看到到 22 年甚至 23 年的供應量都會增加。但根據需求所在，它不會達到平衡。這就是我一直在談論供應限制的地方，因為它是供需方面。它們都在增長——需求以更快的速度增長，這讓我們有點落後，因為這些天需要 18 到 24 個月才能在所有的交貨時間和所有方面增加產能。需求一直在增加。所以net-net，我們沒有趕上。但我們一直在投資我們的資本支出，特別是在技術上。

For example, we're not adding CapEx just across the board to increase capacity for noncore products, although that demand is still high because we plan on exiting. We're focusing our CapEx investments on EFK, on silicon carbide, on some of the mixed signal analog that all drive growth and accretive margins. But net-net, we don't see us catching up.

例如，我們並沒有全面增加資本支出來增加非核心產品的產能，儘管這種需求仍然很高，因為我們計劃退出。我們將資本支出投資集中在 EFK、碳化矽和一些混合信號模擬上，這些都推動了增長和利潤率的增長。但是net-net，我們沒有看到我們趕上來。

And your next question comes from Christopher Rolland with Susquehanna.

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

Congrats on the results and especially that gross margin line. Just kind of following up on that last question then. So are we to assume that East Fishkill, you guys are getting that in 2023, the full facility? Should we assume that, that fab is then filled? And then what is your external -- as you look at internal versus external, what's the plan moving forward once East Fishkill is full?

祝賀結果，尤其是毛利率線。只是跟進最後一個問題。那麼我們是否假設 East Fishkill，你們將在 2023 年獲得完整的設施？我們是否應該假設那個晶圓廠被填滿了？然後你的外部是什麼——當你看內部和外部時，一旦東菲什基爾滿員，下一步的計劃是什麼？

Chris, it's Thad here. So we take ownership in January of 2023. There is a plan for GLOBALFOUNDRIES to exit just as we've been ramping up over the last couple of years, they'll ramp down over 3 years as we continue to move production into that facility. So we've said that our units are actually doubling this year in 2022. We'll continue to accelerate that beyond '23, but there is a 3-year period where they wind down, we wind up.

克里斯，這裡是泰德。因此，我們在 2023 年 1 月取得所有權。正如我們在過去幾年中一直在增加產量一樣，格芯計劃退出，隨著我們繼續將生產轉移到該設施，他們將在 3 年內逐步減少。所以我們已經說過，我們的單位實際上在 2022 年翻了一番。我們將在 23 年之後繼續加快這一進程，但有一個 3 年的時間它們會逐漸減少，我們會結束。

And our assumption right now is, yes, we have a full fab at that time. Now we've said this in the past, at that time, in '23, for a couple of years, we're going to be a foundry business for GLOBALFOUNDRIES, and that's at a low margin, which is a little bit of a headwind as well, but we'll be able to offset that with the cost improvements that we get across the portfolio.

我們現在的假設是，是的，那時我們有一個完整的晶圓廠。現在我們過去說過，當時，在 23 年，幾年後，我們將成為 GLOBALFOUNDRIES 的代工企業，而且利潤率很低，這有點逆風也是如此，但我們將能夠通過我們在整個投資組合中獲得的成本改進來抵消它。

And long term, I'll confirm our -- what that will do for us long term are as we exit those other fabs that we've announced already and ramp East Fishkill up, fixed costs will be better overall like the numbers that Thad talked about for Belgium and our North America fab. But net-net, capacity will increase about to 1.3x when we have the 300-millimeter on and we exit the low-scale fabs. So net-net, we see our increase from capacity, reduced fixed costs, which gets us the growth that we'll be looking for in a much better fab lighter footprint.

從長遠來看，我將確認我們的長期目標是，當我們退出我們已經宣布的其他晶圓廠並提升 East Fishkill 時，固定成本總體上會更好，就像 Thad 所說的數字一樣關於比利時和我們的北美工廠。但是當我們啟用 300 毫米並退出小規模晶圓廠時，淨淨值將增加約 1.3 倍。所以 net-net，我們看到我們的產能增加，固定成本降低，這使我們獲得了我們將在更輕的晶圓廠佔地面積中尋找的增長。

Great. And considering the 300, the fact that it's kind of spoken for, what would have to happen to consider a second 300 fab? Or are there -- is there the ability to increase capacity at East Fishkill somehow?

偉大的。考慮到 300，事實上它是一種說法，考慮第二個 300 晶圓廠會發生什麼？還是有——是否有能力以某種方式增加東菲什基爾的容量？

Look, there is -- of course, as GLOBALFOUNDRIES exits over the next 3 years, we have a lot of headroom to go for 300-millimeter capacity within that facility. And over the next 5 years, as we look at the outlook and where we can do, then we'll address our need for additional manufacturing event.

看，當然，隨著 GLOBALFOUNDRIES 在未來 3 年內退出，我們有很大的空間可以在該設施內實現 300 毫米的產能。在接下來的 5 年中，當我們著眼於前景和我們可以做些什麼時，我們將滿足我們對額外製造活動的需求。

Thank you. And this concludes our Q&A session. I will turn the call back to the President and CEO, Hassane El-Khoury, for final remarks.

謝謝你。我們的問答環節到此結束。我會將電話轉回給總裁兼首席執行官 Hassane El-Khoury，以發表最後的評論。

Thank you all for joining us today. I thank our worldwide teams for their hard work in accelerating our transformation and driving record results once again with leadership in intelligent power and sensing solutions and exposure to fast-growing megatrends such as vehicle electrification, ADAS, energy infrastructure and factory automation, we are well positioned to deliver sustained and profitable long-term revenue growth and margin expansion. Thank you.

感謝大家今天加入我們。我感謝我們的全球團隊辛勤工作，他們在智能電源和傳感解決方案方面處於領先地位，並在汽車電氣化、ADAS、能源基礎設施和工廠自動化等快速增長的大趨勢中處於領先地位，再次推動我們的轉型並推動創紀錄的成果，我們一切都好定位於實現持續和盈利的長期收入增長和利潤率擴張。謝謝你。

And with that, we conclude today's conference. Thank you for participating. You may now disconnect.

至此，我們結束了今天的會議。感謝您的參與。您現在可以斷開連接。