Photronics Inc (PLAB) 2024 Q4 法說會逐字稿

Good day, and welcome to the Photronics Q4 FY24 earnings call. (Operator Instructions) As a reminder, this conference is being recorded, Wednesday, December 11, 2024.

美好的一天，歡迎參加 Photronics 2024 財年第四季財報電話會議。（操作員說明）謹此提醒，本次會議將於 2024 年 12 月 11 日星期三進行錄音。

I would now like to turn the conference over to Ted Moreau, Vice President, Investor Relations.

現在我想將會議交給投資者關係副總裁 Ted Moreau。

Thank you, operator. Good morning, everyone. Welcome to our review of Photronics' fiscal 2024 fourth-quarter results.

謝謝你，接線生。大家早安。歡迎閱讀我們對 Photronics 2024 財年第四季業績的回顧。

Joining me this morning are Frank Lee, CEO; Eric Rivera, CFO; and Chris Progler, CTO. The press release we issued earlier this morning, together with the presentation material that accompanies our remarks, are available on the Investor Relations section of our website.

今天早上和我一起來的是執行長弗蘭克李 (Frank Lee)；艾瑞克·裡維拉，財務長；和首席技術長 Chris Progler。我們今天早上早些時候發布的新聞稿以及我們的演講所附的演示材料可在我們網站的投資者關係部分獲取。

Comments made by any participants on today's call may include forward-looking statements that include such words as anticipate, believe, estimate, expect, forecast, and in our view. These forward-looking statements are based upon a number of risks, uncertainties, and other factors that are difficult to predict.

任何參與者在今天的電話會議上發表的評論都可能包含前瞻性陳述，其中包括預期、相信、估計、期望、預測和我們認為等詞語。這些前瞻性陳述是基於許多風險、不確定性和其他難以預測的因素。

Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, level of activity, performance, or achievements. We are under no duty to update any of the forward-looking statements after the date of the presentation to conform these statements to our actual results.

儘管我們認為前瞻性陳述中反映的預期是合理的，但我們不能保證未來的結果、活動水準、績效或成就。我們沒有義務在演示日期後更新任何前瞻性陳述，以使這些陳述與我們的實際結果保持一致。

During the course of our discussion, we will refer to certain non-GAAP financial metrics. A reconciliation of these metrics to GAAP financial results is provided in our presentation materials. During our fiscal first quarter, we will be participating in the New York CEO Summit on December 17 and the Needham Growth Conference in New York on January 14.

在我們的討論過程中，我們將參考某些非公認會計準則財務指標。我們的演示材料中提供了這些指標與 GAAP 財務表現的對照表。在第一財季，我們將參加 12 月 17 日在紐約舉行的執行長高峰會和 1 月 14 日在紐約舉行的 Needham 成長會議。

I will now turn the call over to Frank.

我現在將把電話轉給弗蘭克。

Thank you, Ted, and good morning, everyone. Before we begin, I would like to take a moment to welcome Ted Moreau who joined us during our fourth quarter as the Head of Investor Relations.

謝謝你，特德，大家早安。在開始之前，我想花一點時間歡迎特德·莫羅 (Ted Moreau)，他在第四季度加入我們，擔任投資者關係主管。

Ted has extensive experience in capital markets and the technology industry, having previously worked on both the sales side and Investor Relations. We are excited to have him as part of our team as we expand our engagement with investors.

Ted 在資本市場和技術行業擁有豐富的經驗，此前曾在銷售部門和投資者關係部門工作。隨著我們擴大與投資者的接觸，我們很高興他成為我們團隊的一員。

We delivered a strong fourth quarter with sales above the high end of guidance. Sales of $223 million were driven by high-end IC and G10.5+ FPD. Full-year sales of $867 million were down slightly from the record level we established in 2023, with 2024 coming in as the second highest sales in our history.

我們第四季業績強勁，銷售額高於指導上限。2.23 億美元的銷售額由高端 IC 和 G10.5+ FPD 推動。全年銷售額為 8.67 億美元，較 2023 年創下的紀錄水準略有下降，2024 年將成為我們歷史上第二高的銷售額。

Regarding the IC end markets, demand turned positively this quarter, primarily for high-end designs in Asia and the US. Leading-edge AI chips are driving multi-node mask demand to support a rapidly expanding AI ecosystem. This, combined with government-subsidized supply chain expansion of ICs into all corners of the digital economy, will push the mask industry forward for the next several years.

至於IC終端市場，本季需求轉好，主要是亞洲和美國的高端設計。領先的人工智慧晶片正在推動多節點掩膜需求，以支援快速擴張的人工智慧生態系統。再加上政府補貼的積體電路供應鏈擴展到數位經濟的各個角落，將推動掩模產業在未來幾年向前發展。

As one of the largest merchant IC mask producers with strong global presence, leading market share, process expertise, and broad multi-node technology, we have positioned ourselves to benefit from these favorable long-term trends.

作為最大的商用 IC 掩模生產商之一，我們擁有強大的全球影響力、領先的市場份額、製程專業知識和廣泛的多節點技術，我們已將自己定位為從這些有利的長期趨勢中受益。

Turning to display. Similar to IC mask, FPD mask demand is driven by new designs, product road maps, and panel manufacturing capacity. Complex, high-end ASP mask sets are needed to support AMOLED and LTPS mobile display manufacturing.

轉向顯示。與 IC 遮罩類似，FPD 遮罩需求由新設計、產品路線圖和麵板製造能力驅動。需要複雜的高階 ASP 光罩模組來支援 AMOLED 和 LTPS 行動顯示器製造。

Larger display size, such as those built on G10.5+ panel lines, requires larger photomask which are difficult to manufacture and, hence, command higher ASPs. As the largest global FPD mask supplier, our broad set of FPD mask solutions allow panel makers to design new features in their products. We are excited about the future opportunity in FPD and are well positioned to maintain and extend our leadership.

更大的顯示器尺寸（例如基於 G10.5+ 面板生產線構建的顯示器）需要更大的光掩模，而光掩模難以製造，因此需要更高的平均售價。作為全球最大的 FPD 遮罩供應商，我們提供廣泛的 FPD 遮罩解決方案，使面板製造商能夠在其產品中設計新功能。我們對 FPD 領域的未來機會感到興奮，並有能力保持和擴大我們的領導地位。

Q4 net income of $34 million contributed to a record net income of $131 million for the full year. These results translate once again into strong cash flow for both the quarter and full year, further strengthening our balance sheet.

第四季淨利為 3,400 萬美元，全年淨利達到創紀錄的 1.31 億美元。這些結果再次轉化為季度和全年強勁的現金流，進一步加強了我們的資產負債表。

Over the past 12 months, we have increased cash and short-term investments by $128 million up to $641 million. We have the financial flexibility to invest in strategic initiatives, such as global footprint expansion, product development, and M&A, as we continue to evolve our existing network and capture growth opportunities.

在過去 12 個月中，我們的現金和短期投資增加了 1.28 億美元，達到 6.41 億美元。隨著我們不斷發展現有網路並抓住成長機會，我們擁有財務靈活性來投資策略舉措，例如全球足跡擴張、產品開發和併購。

In 2024, we spent $131 million on CapEx. We are mainly deploying this capital to expand IC capacity and capability in a growing US and Asia market while also replacing analog equipment to improve network reliability and productivity. In 2025, we plan to spend $200 million with a large focus on our US multi-site capacity and capability to capture regional IC growth opportunities.

2024 年，我們在資本支出上花了 1.31 億美元。我們主要將這筆資金用於擴大不斷成長的美國和亞洲市場的 IC 產能和能力，同時更換類比設備以提高網路可靠性和生產力。到 2025 年，我們計劃斥資 2 億美元，重點關注我們在美國的多站點產能和能力，以抓住區域 IC 成長機會。

Turning to the China market. Eight years ago, we had little presence in China as we did not have production in the country. Since then, we have successfully installed and scaled our operations in China from our IC facility in Xiamen and FPD facility in Hefei.

轉向中國市場。八年前，我們在中國的業務很少，因為我們在中國沒有生產。從那時起，我們在廈門的 IC 工廠和合肥的 FPD 工廠成功地在中國建立並擴大了業務。

China is one of the largest and fastest growing regions for semiconductor and display production with mask demand projected to outgrow supply. We expect China to continue to be a profitable growth engine for the company thanks to our sustainable competitive advantages.

中國是半導體和顯示器生產最大且成長最快的地區之一，預計掩模需求將超過供應。由於我們可持續的競爭優勢，我們預期中國將繼續成為公司獲利成長的引擎。

Furthermore, as evidence of our local customer support, our long-term purchase agreements have secured our market-leading position. As the largest US-based photomask producer, we have positioned ourselves as a market leader to benefit from long-term leadership drivers, including regionalization trends.

此外，作為我們本地客戶支援的證據，我們的長期採購協議確保了我們的市場領先地位。作為美國最大的光掩模生產商，我們將自己定位為市場領導者，以受益於長期的領導驅動力，包括區域化趨勢。

We will continue to invest in profitable growth. We will also leverage our competitive advantage to maintain our status as a trusted source of photomask and help our customers achieve their technology enrollments.

我們將繼續投資於獲利成長。我們還將利用我們的競爭優勢來維持我們作為值得信賴的光掩模來源的地位，並幫助我們的客戶實現他們的技術註冊。

I will now turn the call to Eric to review our fourth-quarter results and provide first-quarter guidance.

我現在將致電埃里克（Eric），讓他審查我們第四季度的業績並提供第一季的指導。

Thank you, Frank. Revenue in the fourth quarter was $223 million, up 5% sequentially as we achieved growth across both IC and FPD. IC revenue increased 5% quarter over quarter, driven by a 21% surge in high-end sales that was partially offset by a slight reduction in mainstream demand.

謝謝你，弗蘭克。第四季營收為 2.23 億美元，環比成長 5%，因為我們在 IC 和 FPD 領域均實現了成長。IC 營收季增 5%，主要得益於高端銷售額激增 21%，但主流需求略有下降部分抵消了這一成長。

High-end improvement was due primarily to increased sales to logic foundries in both Asia and the US. Sequential growth in logic was partially offset by soft memory demand. By node, the strongest demand was for 22- to 28-nanometer and for sub-14 nanometer, which is inclusive of our specialty EUV business.

高端產品的改善主要是由於亞洲和美國邏輯代工廠的銷​​售增加。邏輯的連續成長被軟記憶體需求部分抵銷。以節點來看，最強勁的需求是 22 至 28 奈米和 14 奈米以下，其中包括我們的特殊 EUV 業務。

Mainstream was lower sequentially due to slow market demand mid-quarter that has since stabilized. We were pleased to see strong high-end demand and remain focused on growing this sector of our IC business.

由於季度中期市場需求放緩，主流市場需求較上月走低，但此後已趨於穩定。我們很高興看到強勁的高端需求，並繼續專注於發展我們的 IC 業務。

FPD revenue also improved sequentially, up 7% on strong mainstream growth. High end was essentially flat with strong growth in G10.5+ offset by soft demand for advanced mobile displays due to sluggish demand for premium smartphones.

FPD 收入也較上季成長，由於主流主流成長強勁，成長了 7%。高階市場基本上持平，G10.5+ 的強勁成長被高階智慧型手機需求低迷導致的高階行動顯示器需求疲軟所抵消。

Gross margin of 37% in Q4 was flat year over year even though we're no longer benefiting from premium pricing stemming from capacity constraints experienced post-COVID. Turning to operating expenses.

儘管我們不再受益於新冠疫情後產能限制帶來的溢價，但第四季的毛利率為 37%，與去年同期持平。轉向營運費用。

We recognized higher R&D costs as we experienced increased qualification activity, which typically lasts from 6 to 18 months in duration, depending on the technology and complexity. Increased SG&A costs were the result of higher outside services and other period expenses.

我們認識到研發成本更高，因為我們經歷了資格認證活動的增加，這些活動通常持續 6 到 18 個月，具體取決於技術和複雜性。SG&A 成本增加是外部服務和其他期間費用增加的結果。

Going forward, we anticipate operating expenses returning to our target of 10% of revenue. Operating margins remained strong in Q4 at 25%. For the full year 2024, we realized the second-highest operating income in company history and achieved record net income of $131 million.

展望未來，我們預計營運費用將恢復到收入的 10% 的目標。第四季營業利益率依然強勁，達 25%。2024 年全年，我們實現了公司歷史上第二高的營業收入，淨利潤達到創紀錄的 1.31 億美元。

We continue to deliver strong results even under mixed economic conditions, demonstrating our ability to manage costs and improve operating efficiency. GAAP EPS was $0.54 per share. After removing the impact of the FX loss, non-GAAP EPS was $0.59 per share compared with $0.51 in the previous quarter.

即使在複雜的經濟條件下，我們仍能繼續取得強勁的業績，證明了我們管理成本和提高營運效率的能力。GAAP 每股收益為 0.54 美元。在消除外匯損失的影響後，非公認會計原則每股收益為 0.59 美元，而上一季為 0.51 美元。

We generated $68 million in operating cash flow in the quarter, bringing the total year to $261 million, representing 30% of revenue. CapEx was $43 million in the quarter and $131 million for the year, as we invest in a multi-node IC capacity and capability to support market demand and to strategically replace aging tools.

本季我們產生了 6,800 萬美元的營運現金流，使全年現金流達到 2.61 億美元，佔營收的 30%。本季資本支出為 4,300 萬美元，全年資本支出為 1.31 億美元，因為我們投資於多節點 IC 產能和能力，以支持市場需求並策略性地更換老化工具。

In 2025, we anticipate CapEx will grow to $200 million with most of the increase earmarked to expand our IC investment in the US. We expect this expansion plan to be completed by mid-2026 to support increasing customer requirements from growing demand as customer regionalization strategies proliferate and semiconductor industry production increases both in the US and globally.

到 2025 年，我們預計資本支出將成長至 2 億美元，其中大部分成長專門用於擴大我們在美國的 IC 投資。我們預計這項擴張計畫將於 2026 年中期完成，以支持隨著客戶區域化策略的激增以及美國和全球半導體產業產量的增加而不斷增長的需求。

We strengthened our balance sheet during the year, putting us in a great position to support our investment growth strategy. The combined total of cash and short-term investments was $641 million, increasing 25% over the year. At the same time, total debt, which consists primarily of low-grade equipment leases, decreased 27%.

我們在這一年中加強了資產負債表，使我們能夠更好地支持我們的投資成長策略。現金和短期投資總額為 6.41 億美元，年增 25%。同時，主要由低階設備租賃組成的總債務下降了 27%。

We have $18 million in debt remaining, which will virtually all be paid off at maturity during our second fiscal quarter. In addition to the ability to invest in growth initiatives such as geographic footprint expansion and business development ambitions, our balance sheet allows us to return cash to shareholders.

我們仍有 1,800 萬美元的債務，這些債務幾乎將在第二財季到期時償還。除了能夠投資於地理足跡擴張和業務發展雄心等成長計畫之外，我們的資產負債表還使我們能夠向股東返還現金。

Last quarter, we announced that our Board of Directors authorized an increase of our share repurchase authorization from the $32 million remaining up to a total of $100 million. Share repurchases are one aspect of our capital allocation strategy after reinvesting in our business through CapEx and any potential business development initiatives that arise.

上季度，我們宣布董事會授權將股票回購授權從剩餘的 3,200 萬美元增加到總額 1 億美元。透過資本支出和任何潛在的業務發展計畫對我們的業務進行再投資後，股票回購是我們資本配置策略的一方面。

Before providing guidance, I'll remind you that demand for our product is inherently uneven and difficult to predict, with limited visibility and typical backlog of one to three weeks. In addition, ASP for high-end assets are high, meaning a relatively low number of high-end orders can have a significant impact on our quarterly revenue and earnings.

在提供指導之前，我要提醒您，我們產品的需求本質上是不均勻的，並且難以預測，可見性有限，通常會積壓一到三週。此外，高端資產的平均售價較高，這意味著相對較低的高端訂單數量可能會對我們的季度收入和利潤產生重大影響。

With those qualifications, we expect first quarter revenue to be in the range of $208 million to $216 million, accounting for typical seasonality that impacts our first-quarter demand, including Chinese New Year beginning in late January. Based on those revenue expectations and our current operating model, we estimate non-GAAP earnings per share for the first quarter to be in the range of $0.43 to $0.49 per diluted share.

根據這些條件，我們預計第一季營收將在 2.08 億美元至 2.16 億美元之間，考慮到影響我們第一季需求的典型季節性因素，包括從 1 月底開始的農曆新年。根據這些收入預期和我們目前的營運模式，我們預計第一季非公認會計準則每股攤薄收益將在 0.43 美元至 0.49 美元之間。

This equates to an operating margin between 23% and 25%, reflecting seasonally lower sales volumes while maintaining disciplined cost controls. Beyond the first quarter, we are cautiously optimistic that we can grow our 2025 revenue in line with photomask industry dynamics.

這相當於 23% 至 25% 的營業利潤率，反映出季節性銷售下降，同時維持嚴格的成本控制。在第一季之後，我們對 2025 年營收的成長與光掩模產業動態保持謹慎樂觀。

And we believe, due to our leading market and technology position and strategic growth strategy, we should be able to grow along with the photomask market growth trajectory. As we do, our operating leverage and financial discipline should allow us to expand margins and deliver another year of excellent cash flow, thereby positioning us to continue our investment growth strategy.

我們相信，由於我們領先的市場和技術地位以及策略成長策略，我們應該能夠隨著光掩模市場的成長軌跡而成長。正如我們所做的那樣，我們的營運槓桿和財務紀律應該使我們能夠擴大利潤率並實現又一年的出色現金流，從而使我們能夠繼續我們的投資成長策略。

We delivered great results in the fourth quarter. By leveraging our core competencies, being disciplined in managing cost and cash, and prudently investing in high-return projects, we are delivering profitable growth, improving ROIC, and creating value for our shareholders.

我們在第四季度取得了出色的業績。透過利用我們的核心競爭力，嚴格管理成本和現金，並謹慎投資高回報項目，我們正在實現獲利成長，提高投資回報率，並為股東創造價值。

I will now turn the call over to the operator for your questions.

我現在將把電話轉給接線員詢問您的問題。

(Operator Instructions) Tom Diffely, D.A. Davidson.

（操作員說明）Tom Diffely，D.A.戴維森。

Yes. Good morning. Thank you for letting me ask a few questions. Maybe first on the operating expenses. They were up quite a bit year over year. MAYBE just a little more detail on what it was, the one-timers, that impacted that.

是的。早安.謝謝你讓我問幾個問題。也許首先是營運費用。他們比去年同期成長了不少。也許只是更詳細地說明影響這一點的一次性因素。

Thanks for the question. So our operating expenses were primarily increased SG&A and R&D. For R&D purposes, I'll let Chris probably talk about that.

謝謝你的提問。因此，我們的營運支出主要是增加了SG&A 和研發費用。出於研發目的，我可能會讓克里斯談談這一點。

From an SG&A perspective, we have increased labor and benefits as well as increased outside services. But we expect -- before moving it over to Chris to talk about R&D, I'll say that we expect our OpEx to return to about 10% of revenue.

從SG&A的角度來看，我們增加了勞動力和福利以及外部服務。但我們預計——在將其交給 Chris 談論研發之前，我會說我們預計我們的營運支出將恢復到收入的 10% 左右。

Okay. Just real quickly on the SG&A side, how much of it was labor and benefits that I assume are more recurring versus the outside services, which tend to be more one-time in nature?

好的。在SG&A方面，我認為與外部服務相比，其中有多少是經常性的勞動力和福利，而外部服務本質上往往是一次性的？

Sure. So we actually had some non-recurring labor benefits impact. But I would say maybe about half of the increase was non-recurring versus recurring.

當然。因此，我們實際上受到了一些非經常性勞工福利的影響。但我想說，大約一半的成長是非經常性的，而不是經常性的。

Okay, thank you.

好的，謝謝。

You bet. Chris, would you like to articulate a little bit more about R&D?

你打賭。克里斯，您想詳細說明一下研發方面的情況嗎？

Yeah. Hi, Tom. I can make a couple of comments on the R&D side. We had a pretty robust pipeline of new quals in '24 overall, and we see that often when the industry turns down a little bit. Actually, we often see mask activity increase, especially R&D and new product quals.

是的。嗨，湯姆。我可以就研發方面發表一些評論。總體而言，我們在 24 年擁有相當強大的新資質管道，當行業略有下滑時，我們經常會看到這種情況。事實上，我們經常看到口罩活動增加，尤其是研發和新產品品質。

We started another 7-nanometer node optical qual that will finish in '25. So that's a good project. We've got some development projects for the EUV high NA product program that's going on. Our EUV revenue hit actually a record high in '24, so that seems to be going well.

我們開始了另一個 7 奈米節點光學品質測試，將於 25 年完成。所以這是一個好項目。我們正在進行一些 EUV 高 NA 產品計劃的開發項目。我們的 EUV 收入實際上在 24 年創下了歷史新高，所以看起來進展順利。

We installed a multi-beam tool, mask writer, in the US; and that's driving some of our R&D spend. And then the other thing I think I'd point out is we're seeing some mid-node migration, [6540] down to [2228], particularly in the US, less so in Europe right now.

我們在美國安裝了多光束工具，mask writer；這推動了我們的一些研發支出。然後我想我要指出的另一件事是我們看到一些中間節點遷移，[6540] 下降到 [2228]，特別是在美國，目前在歐洲較少。

And there's some process customizations there that we're doing on the R&D side to support that. So overall, it's a good pipeline of things. All have revenue at the back end of them. And so money well spent on these projects from our point of view.

我們正在研發方面進行一些流程客製化來支援這一點。總的來說，這是一個很好的管道。所有的後端都有收入。因此，從我們的角度來看，這些錢花在這些項目上是值得的。

Okay. And maybe, Chris, if I could continue that conversation towards the $200 million of CapEx for 2025, obviously, a little bit higher than its run historically. And it sounds like a lot of it is going to go to investment in the US.

好的。克里斯，如果我能繼續討論 2025 年資本支出為 2 億美元的話，顯然會比歷史水準高一點。聽起來其中很大一部分將用於在美國的投資。

So I'm curious, is that replacing older tools? Is it new capacity, new capabilities? Maybe just a little more color on what you're going to get for that $200 million.

所以我很好奇，這是取代舊工具嗎？是新能力、新能力嗎？或許只是讓你對這 2 億美元能得到什麼有更多的了解。

Yeah. So Tom, Eric here. So most of that is for actually new capacity, and a lot of it is going to the US, as mentioned in the prepared remarks. As we see the opportunity -- and we're going to invest where we see that opportunity, right?

是的。湯姆、艾瑞克在這裡。因此，其中大部分實際上是用於新產能，其中許多將流向美國，正如準備好的評論中所提到的那樣。當我們看到機會時，我們就會在看到機會的地方進行投資，對吧？

And this is driven by regionalization trends that are in the market, and that's why we see this expansion in the US occurring at this time. But it's also -- in that number, we have some amount for replacing some old tools that have gone in the black, but the vast majority of that is for expanding capacity.

這是由市場區域化趨勢所推動的，這就是為什麼我們此時看到美國出現這種擴張。但在這個數字中，我們有一些資金用於更換一些已經獲利的舊工具，但其中絕大多數用於擴大產能。

And is this expansion of capacity for -- to serve current fabs? Or is this to serve some of the newer fabs that are in the process of being built right now?

這種產能擴張是為了服務目前的晶圓廠嗎？或者這是為了服務一些目前正在建設中的較新的晶圓廠？

Yeah, it's a mix. There are -- some of the fab projects around the world, which they're a lot started, as you know -- some of them have slowed down. A few have been canceled, but there's still strong pipeline of new fabs coming online. And many of them are in the sweet spot of commercial photomasks.

是的，這是一個混合體。如你所知，世界各地有一些晶圓廠計畫已經啟動，其中一些已經放緩。有一些工廠被取消，但仍有大量新工廠上線。其中許多都處於商業光掩模的最佳位置。

So some of that CapEx is preparing to support increased demand. And that's in line with projections we're getting from a lot of our larger customers that, where they're showing what their photomask needs are going to be over the next three years.

因此，其中一些資本支出正準備支持不斷增長的需求。這與我們從許多大客戶那裡得到的預測一致，他們展示了未來三年他們的光掩模需求。

And so these are the reliable customers that tend to know what they're doing and also project demand that we believe in. So we're investing for some of those new projects as well.

因此，這些是可靠的客戶，他們往往知道自己在做什麼，也了解我們所相信的專案需求。因此，我們也正在投資其中一些新項目。

Okay, great. Any brick-and-mortar? Is this all just equipping the existing facilities that you have?

好的，太好了。有實體店嗎？這一切只是裝備您現有的設施嗎？

No. No four walls going up, but there are some expansions within facilities and things like that going on. But no new greenfields are in the CapEx right now.

不。沒有四堵牆拔地而起，但設施內有一些擴建以及類似的事情正在進行。但目前資本支出中沒有新的綠地。

All right. And then probably, Chris, I also had a question on the mainstream business. You talked about some node migration going on. But I'm just more curious about the health of the mainstream business.

好的。克里斯，我可能還有一個關於主流業務的問題。您談到了正在進行的一些節點遷移。但我只是對主流業務的健康狀況更好奇。

Over the last several years, we had a period where there was really tight supply. We had nice pricing increases. That seems to have waned at this point. How do you view the mainstream business for IC over the next, call it, three-plus years?

在過去的幾年裡，我們經歷了一段供應非常緊張的時期。我們的價格上漲幅度很大。此刻，這種感覺似乎有所減弱。您如何看待未來三年多的 IC 主流業務？

I think -- I mean, my feeling is that mainstream was strong and continues to be healthy, particularly on a units basis. The growth trajectory, as we saw over the last couple of years, certainly have leveled off, and some of the supply-demand imbalances have rationalized in the mainstream.

我認為——我的意思是，我的感覺是主流很強大並且持續健康，特別是在單位基礎上。正如我們在過去幾年中看到的那樣，成長軌跡肯定已經趨於平穩，而一些供需失衡已經在主流中合理化。

But the bulk of the units from mainstream are in our Asia divisions. And I think it's appropriate Frank make some comments on what's happening in mainstream.

但主流部門的大部分都在我們的亞洲部門。我認為弗蘭克對主流正在發生的事情發表一些評論是適當的。

The mainstream market in US and Europe actually are pretty stable and growing, and same in Taiwan market. Of course, in China, we do see a little bit of competition in the mainstream. But overall, the mainstream market continue to grow.

美國和歐洲的主流市場實際上是相當穩定和成長的，台灣市場也是如此。當然，在中國，我們確實看到了一些主流競爭。但總體而言，主流市場持續成長。

Okay, great. And Frank, maybe just a broader industry question for you. What is your view of industry growth -- photomask industry growth in '25? And how do you view maybe the next few years beyond that?

好的，太好了。弗蘭克，也許對您來說只是一個更廣泛的行業問題。您對產業成長有何看法－25 年光掩模產業的成長？您如何看待未來幾年的情況？

Okay. I think as we focus on -- the main topic today is the regionalization. And as we mentioned, the regionalization actually create a lot of new projects in different countries, including the US.

好的。我認為，當我們關注的時候，今天的主題是區域化。正如我們所提到的，區域化實際上在不同國家創造了許多新項目，包括美國。

So if we look area region by region, we see Taiwan is a stable market. Of course, TSMC is unique. And in China, the market is still growing very fast, but we are focusing on our product mix in China. We want to capture more high-end business.

因此，如果我們逐一觀察，我們會發現台灣是一個穩定的市場。當然，台積電是獨一無二的。在中國，市場仍在快速成長，但我們專注於我們在中國的產品組合。我們想要佔領更多的高端業務。

And in US, as Chris mentioned, there are more and more projects in US, and that's the main reason we are putting a lot of focus on our US site capacity and capability upgrade and expansion. So basically, the demand for semiconductor and, of course, the IC photomask will grow in the next three years because AI.

在美國，正如克里斯所提到的，美國的計畫越來越多，這是我們非常關注美國站點容量以及能力升級和擴展的主要原因。因此，基本上，由於人工智慧，對半導體的需求，當然還有 IC 光掩模的需求將在未來三年內成長。

So we are working on three years outlook evaluations. And we believe the business will continue to grow for photomask.

因此，我們正在進行三年前景評估。我們相信光掩模業務將持續成長。

Okay. Maybe just a final question for you, Frank. You talked about the AI ecosystem driving some demand for you. What products are using photomasks from Photronics in the AI ecosystem, just to get my hands around what the opportunity is?

好的。法蘭克，也許這只是你的最後一個問題。您談到了人工智慧生態系統推動了對您的一些需求。人工智慧生態系統中哪些產品使用了 Photronics 的光掩模，只是為了讓我了解機會是什麼？

All right. I will turn this question to Chris. Chris?

好的。我會把這個問題轉給克里斯。克里斯？

Yeah. Thanks, Tom. So as far as the main processors like the GPUs, they get most of the attention, the NVIDIA chips and all. That supply chain is, as everybody knows pretty well, locked up by TSMC, and they build their own mask.

是的。謝謝，湯姆。因此，就 GPU 等主要處理器而言，它們受到了最多的關注，包括 NVIDIA 晶片等等。眾所周知，這條供應鏈被台積電鎖定，他們自己製造掩模。

But there's a lot of peripheral circuitry around the GPU that's starting to drive some demand. And some of the edge chips, edge network chips, which are available to commercial mask makers that are driven by AI, some of the memory that are going into data centers. We have memory partners that are working on tuning those chips for AI applications.

但 GPU 周圍有許多外圍電路，開始推動一些需求。還有一些邊緣晶片、邊緣網路晶片，可供人工智慧驅動的商業掩模製造商使用，一些記憶體將進入資料中心。我們的記憶體合作夥伴正在致力於針對人工智慧應用調整這些晶片。

So I would put it as things around the main GPU, which is a substantial set of devices that support that. The other thing we're seeing a little bit is our business is heavily attached to ASIC, application-specific integrated circuits.

因此，我將其視為主 GPU 周圍的事物，這是一組支援該功能的重要設備。我們看到的另一件事是我們的業務嚴重依賴 ASIC、專用積體電路。

And there are a number of companies that are trying to deploy ASICs, especially for the inference part of AI -- not so much the model building, but the model running. And there's quite a few projects we're involved in on the ASIC side that are AI driven. So it's pretty broad, and it's part of just building out that ecosystem from the GPU on out to the edge of the network.

有許多公司正在嘗試部署 ASIC，尤其是人工智慧的推理部分——與其說是模型構建，不如說是模型運行。我們在 ASIC 方面參與了許多由人工智慧驅動的專案。所以它的範圍相當廣泛，它是建立從 GPU 到網路邊緣的生態系統的一部分。

Great. Well, thank you, Chris, Frank, and Eric. Appreciate your time today.

偉大的。好吧，謝謝克里斯、法蘭克和艾瑞克。感謝您今天的時間。

Thank you, Tom.

謝謝你，湯姆。

It was a pleasure.

這是一種樂趣。

Thank you. I'm showing no further questions in the queue at this time. I would now like to turn the call back over to Mr. Ted Moreau for any closing remarks.

謝謝。目前我在隊列中沒有顯示任何其他問題。我現在想將電話轉回給特德·莫羅先生，請他發表結束語。

Thank you, Sherri. Just wanted to thank everybody for joining our call today. We're really appreciative of your interest in Photronics. I hope you have a happy holidays.

謝謝你，雪莉。只是想感謝大家今天加入我們的電話會議。我們非常感謝您對光電學的興趣。希望您假期愉快。

And we will -- I will be available over the coming weeks and months to talk periodically. I hope you guys have a great day. Thank you.

我們將—我將在接下來的幾週和幾個月內定期進行交談。我希望你們度過愉快的一天。謝謝。

This concludes today's program. Thank you all for participating. You may now disconnect.

今天的節目到此結束。感謝大家的參與。您現在可以斷開連線。