Photronics Inc (PLAB) 2025 Q1 法說會逐字稿

Hello and welcome to Photronics fiscal first-quarter 2025 financial results conference call. (Operator Instructions) I would now like to turn the conference over to Ted Moreau. You may begin.

您好，歡迎參加Photronics 2025財年第一季財務業績電話會議。（操作員指示）現在，我想將會議交給泰德·莫羅。你可以開始了。

Thank you, operator. Good morning, everyone. Welcome to our review of Photronics fiscal first-quarter 2025 financial results. Joining me this morning are Frank Lee, CEO; Eric Rivera, CFO; and Chris Progler, CTO.

謝謝您，接線生。大家早安。歡迎閱讀我們對Photronics 2025財年第一季財務表現的回顧。今天早上與我一起參加的是執行長 Frank Lee； Eric Rivera，財務長；以及首席技術長 Chris Progler。

The press release reissued early this morning, together with the presentation material that accompanies our remarks are available on the Investor Relations section of our web page.

今天凌晨重新發布的新聞稿以及伴隨我們發言的演示材料可在我們網頁的“投資者關係”部分找到。

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 subject to various risks and uncertainties and other factors that are difficult to predict.

今天電話會議中任何參與者的評論都可能包括前瞻性陳述，其中包括預期、相信、估計、預期、預測和我們認為等字眼。這些前瞻性陳述受各種風險和不確定性以及其他難以預測的因素的影響。

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 actual results. Photronics has provided additional information in its most recent Form 10-K and other subsequent reports filed with the SEC, concerning factors that could cause actual results to differ materially.

儘管我們認為前瞻性陳述中反映的預期是合理的，但我們無法保證未來的結果、活動水準、表現或成就。我們沒有義務在報告發布日期之後更新任何前瞻性陳述，以使這些陳述符合實際結果。Photronics 在其最新的 10-K 表格以及向美國證券交易委員會提交的其他後續報告中提供了有關可能導致實際結果發生重大差異的因素的更多資​​訊。

During the course of our discussion, we will refer to certain non-GAAP financial measures. These numbers may be useful for analysts, investors, and management to evaluate ongoing performance. Reconciliation of these metrics to GAAP financial results is provided in our presentation materials. I will now turn the call over to Frank.

在討論過程中，我們將參考某些非公認會計準則財務指標。這些數字可能有助於分析師、投資者和管理層評估持續表現。我們的演示材料中提供了這些指標與 GAAP 財務結果的對照表。現在我將電話轉給弗蘭克。

Thank you, Ted, and good morning, everyone. We achieved first quarter sales of $212 million, in line with our expectation and normal seasonal trends. Non-GAAP dilute EPS of $0.52 was above the high-end of guidance and we once again deliver strong cash flow.

謝謝你，泰德，大家早安。我們第一季的銷售額達到 2.12 億美元，符合我們的預期和正常的季節性趨勢。非公認會計準則稀釋每股收益為 0.52 美元，高於預期上限，我們再次實現強勁的現金流。

Turning to our end markets, IC declined 2% year over year due to mainstream's weakness in Asia and Europe, particularly at the older nodes we did mention. For high-end IC, we have seen continued evidence of Logic Photomasks node migration to 22 and 28 nanometers in Asia. Within IC, Memory Photomasks demand also shows trends.

轉向我們的終端市場，由於亞洲和歐洲主流市場的疲軟，尤其是在我們提到的較老節點，IC 年減了 2%。對於高階積體電路 (IC)，我們已經看到亞洲的邏輯光掩模節點持續遷移到 22 和 28 奈米的證據。在IC領域，記憶體光掩模的需求也呈現趨勢。

FPD declined slightly year over year due to industry softness, though we saw brand demand from customers in China. Our industry leading technology in FPD continues to win business. And our strategy to apply IC mask technology to FPD helps us with market share.

儘管我們看到中國客戶對品牌產品有需求，但由於行業疲軟，FPD 年比略有下降。我們在 FPD 領域業界領先的技術不斷贏得業務。我們將IC光罩技術應用於FPD的策略幫助我們獲得了市場份額。

We recognize the milestone during Q1, as we receive our first orders for G8.6 AMOLED displays. G8.6 requires more advanced and complex masks that have higher SPs.

我們在第一季度收到了首批 G8.6 AMOLED 顯示器的訂單，因此我們意識到了這一里程碑。G8.6 需要更進階、更複雜且具有更高 SP 的遮罩。

Now, I would like to discuss a few developments impacting the Semiconductor industry. First, as the AI landscape evolve, we believe it will be a longer-term growth driver for the industry and Photronics. New AI tools have the potential to offer AI capability at a lower cost.

現在，我想討論一些影響半導體產業的發展。首先，隨著人工智慧格局的發展，我們相信它將成為產業和Photronics的長期成長動力。新的人工智慧工具有可能以更低的成本提供人工智慧功能。

These tools reduce the barrier of entry into AI, which drives new applications require new devices and designs. Customer IC serving this application will drive Photomasks demand, many at a more advanced nodes that we service. At more mature nodes, AI drives the need for fast interconnects, including silicon photonics and advanced packaging.

這些工具降低了進入人工智慧的門檻，從而推動了新應用對新設備和設計的需求。服務於此應用的客戶 IC 將推動光掩模的需求，其中許多是在我們所服務的更先進的節點上。在更成熟的節點上，人工智慧推動了對快速互連的需求，包括矽光子學和先進封裝。

Second, the Semiconductor industry may potentially incur increased costs from tariffs. For Photronics, our strategy to invest in regional capacity close to customer locations should buffer us from this potential cost. Therefore, we import very few masks into the United States. And don't anticipate a meaningful impact on our business from tariffs.

其次，半導體產業可能會因關稅而增加成本。對於Photronics來說，我們的投資靠近客戶所在地區域產能的策略應該可以緩解這項潛在成本。因此，我們進口的口罩很少到美國。並且不要預期關稅會對我們的業務產生重大影響。

Fiscal 2025 started off as expected in Q1 and demonstrate our technology leadership. Industry growth drivers in IC include node migration, regeneration, and custom design expansion, while product development and scale up of display sites are key for FPD.

2025 財年第一季開局如預期，展現了我們的技術領先地位。IC 產業的成長動力包括節點遷移、再生和客製化設計擴展，而產品開發和顯示站點的擴大則是 FPD 的關鍵。

Further, our markets are benefiting from AI adoption and regionalization trends where we leverage our competitive advantages in capability, cost, scale, and time-to-market. By working with our customers, we are carefully expanding capacity and capability in projected growth regions, such as the United States, to meet demand.

此外，我們的市場受益於人工智慧的採用和區域化趨勢，我們在能力、成本、規模和上市時間方面發揮競爭優勢。透過與客戶合作，我們正在謹慎地擴大預計成長地區（例如美國）的產能和能力，以滿足需求。

These investments further strengthen our market leadership position, giving us confidence in our long-term outlook. I will now turn the call over to Eric to review our first quarter results and provide second-quarter guidance.

這些投資進一步鞏固了我們的市場領導地位，使我們對我們的長期前景充滿信心。現在我將把電話轉給 Eric，讓他回顧我們的第一季業績並提供第二季指引。

Thank you, Frank. Good morning, everyone. As Frank stated, our first quarter results were in line with expectations with revenue of $212 million. Total revenue declined 5% sequentially, led by IC, which declined 6% quarter-over-quarter to $154 million.

謝謝你，弗蘭克。大家早安。正如弗蘭克所說，我們的第一季業績符合預期，營收為 2.12 億美元。總營收季減 5%，其中 IC 營收下降最嚴重，較上季下降 6% 至 1.54 億美元。

Within IC, mainstream declined 9%, reflecting the overall softness of the broader Semiconductor industry. We did see pockets of strengths within high-end. Sales generated out of our European facilities were weaker than anticipated, and this situation is expected to continue. Our IC business out of our facilities in Asia and the US also declined sequentially due to typical seasonality as expected. The US IC did exhibit strong year-over-year growth.

在積體電路領域，主流產品下跌了 9%，反映了整個半導體產業的整體疲軟。我們確實看到了高端領域中的優勢。我們歐洲工廠的銷售額低於預期，而且這種情況預計還會持續下去。如預期，由於典型的季節性因素，我們在亞洲和美國工廠的 IC 業務也持續下降。美國積體電路確實表現出強勁的同比增長。

Within IC, we continue to drive towards a greater mix of higher-end business with a focus on increasing our blended ASPs. Demonstrating our execution in fiscal year 2023, our high-end business represents a 30% of total IC revenue, increasing to 36% in fiscal year 2024.

在 IC 領域，我們繼續致力於增加高端業務的組合，重點是提高我們的混合 ASP。從2023財年的執行情況來看，我們的高端業務佔IC總收入的30％，到2024財年這一比例將上升到36％。

For the first quarter of fiscal year 2025, our high-end business increased further to 39%. Within high-end, we saw a particular strength in Q1 in the 14 to 22 nanometer geometry ranges. For our leading-edge IC mix, we recognize improved demand from memory customers.

2025財年第一季度，我們的高端業務進一步成長至39%。在高端領域，我們看到 Q1 在 14 至 22 奈米幾何範圍內具有特殊的優勢。對於我們領先的 IC 組合，我們認識到記憶體客戶的需求增加。

FPD revenue was stable both sequentially and year-over-year at $58 million. We are the market leader in FPD photomasks due to our technological superiority and manufacturing footprint. As a result, despite market headwinds, we have been able to maintain our revenues due to increasing market share.

FPD 收入與上一季和去年同期相比保持穩定，為 5800 萬美元。憑藉技術優勢和製造足跡，我們成為 FPD 光掩模市場的領導者。因此，儘管市場面臨阻力，我們仍能透過不斷增加的市場份額來維持收入。

Our operating margin of 25% was at the high-end of our guidance range. Gross margins declined slightly to 36% because of lower sale volumes. Continued prudent controls along with lower severance and legal related expenses and lower R&D reduced OpEx by $2.9 million sequentially.

我們的營業利益率為 25%，處於指導範圍的高點。由於銷售量下降，毛利率略為下降至36%。持續審慎的控制、較低的遣散費和法律相關費用以及較低的研發費用使營運支出環比減少了 290 萬美元。

Diluted GAAP EPS attributable to Photronics shareholders was $0.68 per share. After removing the impact of FX gains, fully diluted, non-GAAP EPS attributable to Photronics shareholders was $0.52 per share, which was above the high-end of our guidance. Our FX gain was an unrealized benefit, primarily related to the impact of the strengthened US dollars on intercompany balances, cash, and accounts receivables held by our foreign subsidiaries.

歸屬於Photronics股東的稀釋GAAP每股收益為0.68美元。剔除外匯收益的影響後，Photronics股東應佔完全稀釋非GAAP每股收益為0.52美元，高於我們預期的高點。我們的外匯收益是一項未實現收益，主要與美元走強對我們外國子公司持有的內部交易餘額、現金和應收帳款的影響有關。

During the first quarter, we generated $78 million in operating cash flow which represented 37% of total revenue. We continue to build on our strong cash balance, providing us with continued financial flexibility.

第一季度，我們產生了 7,800 萬美元的營運現金流，佔總收入的 37%。我們繼續增強現金餘額，從而為我們提供持續的財務靈活性。

CapEx was $35 million in the quarter. We remain committed to spending $200 million in CapEx in 2025 on a combination of capacity, capability, and end-of-life tool initiatives. This run rate is higher than typical to accommodate US expansion initiative that's underway.

本季的資本支出為 3500 萬美元。我們仍致力於在 2025 年投入 2 億美元的資本支出，用於產能、能力和報廢工具計畫。為了適應正在進行的美國擴張計劃，這一運行率高於典型水平。

I want to emphasize that our capacity expansion plans are driven by specific customer opportunities and go through a rigorous investment vetting process. These investments will strengthen our ability to support and win the most attractive photomask opportunities.

我想強調的是，我們的產能擴張計畫是由特定的客戶機會所驅動的，並且經過嚴格的投資審查程序。這些投資將增強我們支持和贏得最具吸引力的光掩模機會的能力。

Total cash at the end of the quarter was $642 million and remained relatively unchanged from the end of fiscal Q4, driven by CapEx, debt repayment, stock repurchases, and the effect of foreign currency exchange rate changes on our cash balances. We have a modest $3 million of debt remaining.

本季末的總現金為 6.42 億美元，與第四財季末相比基本保持不變，這主要是受資本支出、債務償還、股票回購以及外匯匯率變動對現金餘額的影響所致。我們還有 300 萬美元的債務。

Before providing guidance, I'll remind you that demand for our products is inherently uneven and difficult to predict with limited visibility and typical backlog of one to three weeks. In addition, ASPs for high-end mass sets 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衡的，而且難以預測，因為可見性有限，通常積壓時間為一到三週。此外，高端大眾產品的平均售價很高，這意味著相對較少的高端訂單數量會對我們的季度收入和收益產生重大影響。

As we have highlighted previously, our business is influenced by IC and display design activity, and to a lesser degree by wafer and panel capacity dynamics. With those qualifications, we expect second quarter revenue to be in the range of $208 million to $216 million.

正如我們之前所強調的那樣，我們的業務受到 IC 和顯示器設計活動的影響，而在較小程度上受到晶圓和麵板產能動態的影響。基於這些條件，我們預計第二季營收將在 2.08 億美元至 2.16 億美元之間。

Based on those revenue expectations in our current operating model, we estimate non-GAAP earnings per share for the second quarter to be in the range of $0.44 to $0.50 per diluted share. This equates to an operating margin between 23% and 25%.

根據我們目前營運模式中的營收預期，我們預計第二季非 GAAP 每股盈餘將在每股 0.44 美元至 0.50 美元之間。這相當於營業利益率在 23% 至 25% 之間。

Given current market conditions and our Q2 outlook, we're increasingly cautious about 2025. In order to continue to drive cash flow, we will continue to prudently manage costs. I will now turn the call over to the operator for your questions.

鑑於目前的市場狀況和我們的第二季展望，我們對 2025 年愈加謹慎。為了繼續推動現金流，我們將繼續審慎管理成本。現在我將把電話轉給接線員來回答您的問題。

(Operator Instructions) Tom Diffley, D.A. Davison.

（操作員指示）Tom Diffley，D.A.戴維森。

Maybe first one for you, Frank, the outlook, it's basically flat quarter-to-quarter, and typically we see a roughly 5% increase in the first or the second fiscal quarter of the first quarter of the year. So I'm curious, is it really just the mainstream in China that is the weakness? Is it just your ongoing lack of real visibility and conservatism, or what's behind the flat guidance?

弗蘭克，也許首先要問您的是前景，它基本上是逐季持平的，通常我們會看到今年第一季的第一或第二財季增長約 5%。所以我很好奇，難道真的只是中國的主流才是弱點嗎？是因為你們一直缺乏真正的可見性和保守性，還是因為你們的預期沒有改變？

Well, thank you, Tom. Business of the very low-end of mainstream, many from the six-inch and eight-inch wave effect has been weak and we see no signs of recovery in the near future. And this happened not only in Asia but also in Europe, particularly.

好吧，謝謝你，湯姆。主流的極低端業務，許多來自六英寸和八英寸浪潮的影響已經很弱，我們看不到近期復甦的跡象。這種現像不僅發生在亞洲，尤其發生在歐洲。

So, I think this revenue is relatively small in our overall business. But it still has some negative impact our revenue and revenue outlook. So, I think, at this moment, we are cautious. However, the long-term outlook, we still believe it's a positive. And we will continue to focus and leverage our competitive strengths on the high-end to improve our branded ASP.

所以，我認為這筆收入在我們的整體業務中相對較小。但它仍然對我們的收入和收入前景產生一些負面影響。因此，我認為，目前我們很謹慎。然而，從長期來看，我們仍然認為這是正面的。我們將繼續專注於高端市場並發揮我們的競爭優勢來提高我們的品牌平均售價。

So I believe Q2, at this moment, our focus is right. But I think the overall economic picture remains uncertain. So I believe by the end of Q2, we may have a much clearer picture of fiscal 2025.

所以我相信 Q2 此刻我們的重點是正確的。但我認為整體經濟狀況仍然不確定。因此我相信到第二季末，我們可能會對 2025 財年有更清晰的了解。

Okay, that makes sense. If I could just dig in a little deeper on the mainstream business, then. Obviously, over the last few years the demand levels and the supply/demand equation in mainstream was very beneficial to you. You had nice margin expansion in that space.

好的，這很有道理。如果我可以更深入地了解主流業務的話。顯然，在過去幾年裡，主流的需求水準和供需方程式對你非常有利。您在那個領域的利潤率得到了很好的擴大。

So just curious, how do you look at the supply/demand equation today in mainstream? And what are you seeing from a pricing basis? Is the pricing strength gone away? Are you seeing some weakness quarter over quarter? How would you characterize the mainstream business right now?

所以只是好奇，您如何看待當今主流的供需方程式？從定價基礎來看您看到了什麼？定價實力是否已經消失？您是否發現季度環比出現一些疲軟跡象？您如何看待目前的主流業務？

Okay, we keep our pricing firm. We do not lower down our price in the mainstream. However, the overall pie of the mainstream business at this moment seems to be smaller. I believe it's due to the weakness in the automotive and maybe industrial applications.

好的，我們保持價格不變。我們不會降低主流產品的價格。不過，目前主流業務的整體蛋糕似乎比較小。我認為這是由於汽車和工業應用領域的弱點所致。

As I highlight, most inch and six-inch wafer utilization are relatively low. So it does have some impact on our low-end mainstream business.

正如我所強調的，大多數英吋和六英吋晶圓的利用率相對較低。所以它確實對我們的低端主流業務產生了一定的影響。

Okay, maybe just one last question on the mainstream. Are you seeing increased competition from local Chinese suppliers?

好的，也許我只想問最後一個關於主流的問題。您是否發現來自中國本土供應商的競爭日益激烈？

Yes, we do see increasing competition. However, our focus in China is on the middle- and high-end of our -- in the middle- and high-side of our high-end business, such as 55 nanometer, 40, 28 and 22 nanometers. So we shift most of our business to this segments such that our branded ASP in China still keep a good and stable high range.

是的，我們確實看到競爭日益激烈。然而，我們在中國的重點是中高端業務，例如 55 奈米、40、28 和 22 奈米。因此，我們將大部分業務轉移到這一領域，以致我們在中國的品牌平均售價仍然保持良好且穩定的高水準。

So the answer is yes. There are more competition from local Chinese mask makers in the low-end of the mainstream, but that is not our focus. So we are getting to the more profitable and more high price segment of the business in China.

所以答案是肯定的。在主流的低階市場上，來自中國本土口罩製造商的競爭更為激烈，但這不是我們的重點。因此，我們在中國的業務領域正變得越來越有利可圖，而且價格也越來越高。

Great. Appreciate the extra color there, Frank. Maybe just a quick question for Chris then, congratulations on the new Gen 8.6 AMOLED screen. What were the challenges to get to that larger screen size or panel size?

偉大的。欣賞那裡的額外色彩，弗蘭克。那麼也許我只想問克里斯一個簡單的問題，祝賀新一代第 8.6 代 AMOLED 螢幕。要實現更大的螢幕尺寸或面板尺寸面臨哪些挑戰？

Yeah, thanks, Tom. I appreciate it. The specs for the AMOLED mask, which prior to this had been all Gen 6, Gen 6.5, are the tightest among our FPD products, so we had to scale those specs up to the much larger substrate size, Gen 8.6. So it's spec scaling uniformity. All the mask parameters had to scale up to those larger substrates, which is quite difficult.

是的，謝謝，湯姆。我很感激。在此之前，AMOLED 遮罩的規格都是第 6 代、第 6.5 代，這是我們 FPD 產品中最嚴格的，因此我們必須將這些規格擴展到更大的基板尺寸，即第 8.6 代。因此，這是規格縮放的一致性。所有的掩模參數都必須擴展到更大的基板，這是非常困難的。

The second thing is the integration of the mask onto the blank. We use some advanced, as we mentioned in the comments to the call, some IC-like technology in our FPD mask, things that people call phase shift and other things that are common. And IC, we use that in our FPD technology, scaling that up to Gen 8.6 also was a challenge. So we met those.

第二件事是將面具融入空白處。正如我們在電話評論中提到的那樣，我們在 FPD 掩模中使用了一些先進的、類似 IC 的技術，人們稱之為相移的東西以及其他常見的東西。我們在 FPD 技術中使用 IC，將其擴展到 Gen 8.6 也是一個挑戰。所以我們就遇到這些了。

We've been working on Gen 8.6 scale up by now, for almost a year. So were ready for this, and it's really in good coordination with the customer. We had lots of test masks and pilots ahead, so I would not say we're struggling with yield or execution or delivery from here. So as the business grows, we should be able to scale that product line up nicely.

到目前為止，我們已經致力於 Gen 8.6 的擴展，已有近一年的時間。我們已經為此做好了準備，並且與客戶的協調非常好。我們已經有大量測試口罩和試點產品，因此我不會說我們現在在產量、執行或交付方面遇到了困難。因此，隨著業務的成長，我們應該能夠很好地擴大該產品線。

And how big do you expect that to be inside of your flat panel business over the next few quarters?

您預計未來幾季平板業務的規模會有多大？

Yeah, I don't think we would prefer not to comment on that. I think just suffice to say so far, it's been more than a single order and it's connected with fab projects or projects that are production level. So these are not just prototype masks or pilot masks, they were masks used for prudential production of AMOLED for larger format displays, particularly things like laptops.

是的，我認為我們不想對此發表評論。我認為到目前為止可以說的是，這不僅僅是一個訂單，而且它與晶圓廠項目或生產級項目有關。因此，這些不僅僅是原型掩模或試驗掩模，它們是用於審慎生產用於大尺寸顯示器（特別是筆記型電腦等）的 AMOLED 的掩模。

So they are production applications and the fabs they're going into have the possibility to scale to serious panel production for volume products. But beyond that, I think it'd be a little too early to put a scale on it.

因此，它們是生產應用，並且它們所進入的晶圓廠有可能擴大到批量產品的嚴肅面板生產。但除此之外，我認為現在對此進行衡量還為時過早。

Okay, appreciate it, Chris. And then Eric, looking at the balance sheet, obviously, a really strong cash position. There is going to be $200 million of spending in CapEx this year, but it seems like there's still plenty of cash for a more aggressive buyback.

好的，非常感謝，克里斯。然後艾瑞克看了看資產負債表，顯然，現金狀況非常強勁。今年的資本支出將達到 2 億美元，但似乎仍有足夠的現金進行更積極的回購。

What is your mindset on buybacks versus, I know at one point a year or two ago you guys had talked about potentially keeping a war chest for acquisitions, but what is your thought process on the balance sheet right now?

您對回購的想法是怎麼樣的？我知道一兩年前你們曾討論過保留一筆資金用於收購，但您現在對資產負債表的想法是怎樣的？

Thanks Tom. So with respect to the balance sheet, our capital allocation strategy really hasn't changed, which is the first like three bullet points; the first one being, just normal CapEx, and the second and third option are toggles.

謝謝湯姆。因此就資產負債表而言，我們的資本配置策略實際上沒有改變，這是第一點三點；第一個是正常的資本支出，第二個和第三個選項是切換。

The second one being M&A activities, or if they're in lack of them, we would do share repurchases. So during the quarter we certainly repurchase some shares. And in terms of what do we see going forward, given the current macroeconomic conditions and the geopolitical environment at the moment, we are being a little cautious.

第二個是併購活動，如果缺乏併購活動，我們就會進行股票回購。因此，在本季我們肯定會回購一些股票。對於未來的展望，考慮到當前的宏觀經濟狀況和地緣政治環境，我們有些謹慎。

But we certainly do have a war chest, as you describe it, to be able to act quickly if the right opportunity comes along with respect to an M&A transaction. We're not going to just go to do an M&A transaction to use up our cash or to purchase -- buy revenues if you will. We'll only do that if it's accretive to the company.

但正如您所描述的，我們確實擁有足夠的資金，以便在併購交易中出現合適的機會時迅速採取行動。我們不會僅僅為了耗盡現金或購買（如果你願意的話也可以說購買收入）而進行併購交易。只有對公司有利時我們才會這麼做。

Likewise, we'll be aggressive with sharing purchases if we see that the environment is favorable to do so at the right time. So this is something that we do look at on a consistent basis. The Board and management team, we are aware, obviously, of the cash balances that we have and we're consistently monitoring and looking for the best way to deploy that.

同樣，如果我們發現環境適合，我們也會積極地共享購買。因此，這是我們持續關注的事情。董事會和管理團隊顯然知道我們擁有的現金餘額，我們正在持續監控並尋找最佳的方法來部署它。

Right, and what is your current authorization for buybacks?

對的，您目前的回購授權是什麼？

We have $100 million authorization.

我們獲得了1億美元的授權。

Okay. Great. Well, I was going to say, the final question overall is it looks like node migration getting more business of the 22, 28 nanometer node is going to be a big driver over the next year. I'm just curious where -- anything you can say about your current capacity there and how much capacity you'll be adding with this $200 million of capital spending this year?

好的。偉大的。好吧，我想說，總的來說，最後一個問題是，節點遷移看起來將在明年成為推動 22、28 奈米節點業務發展的一大動力。我只是好奇──您能透露一下您目前的產能嗎？今年您將用這 2 億美元的資本支出增加多少產能？

Yes, so the capital spending that we have this year would be, as I think we mentioned previously, it's normal CapEx that we have, plus the increase from the normal to $200 million is essentially for the US. So in the US we have, due to regionalization, we have some more opportunities for revenue and certainly provides some node migration within the mainstream area in the US.

是的，所以，正如我們之前提到的，我們今年的資本支出是正常的，再加上從正常水平增加到 2 億美元的支出，這基本上是用於美國。因此，在美國，由於區域化，我們有更多的收入機會，並且肯定會在美國主流地區提供一些節點遷移。

And likewise, in Asia, we have our part of our normal CapEx. We're putting point tools wherever we need to in order to enable us to be able to be more effective and efficient in kicking out more production where we have some bottlenecks. And that certainly, is aiding our node migration strategy.

同樣，在亞洲，我們也有一部分正常的資本支出。我們將點工具放置在任何需要的地方，以便我們能夠更有效、更有效率地在存在瓶頸的地方增加產量。這無疑有助於我們的節點遷移策略。

Great. I appreciate the time for all three of you.

偉大的。我很感謝你們三人抽出時間。

(Operator Instructions) [Gaoshi], Singular Research.

（操作員指令）[Gaoshi]，奇點研究。

Just on the first question is, how much of the US IC capacity coming online in mid-2026 is on the long-term purchase agreements? What was driving that strong demand? Is that strong demand on US-based AI [and IoT] customers. And maybe you can quantify the percentage of customer commitments that's tied to the CHIPS Act versus organic demand.

第一個問題是，2026 年中期上線的美國 IC 產能有多少是屬於長期購買協議的？是什麼推動瞭如此強勁的需求？這是美國人工智慧（和物聯網）客戶強烈的需求嗎？也許你可以量化與 CHIPS 法案相關的客戶承諾與有機需求的百分比。

So I'll take answering that question. Your question wasn't very clear from -- just to be clear, but I think you're asking about what is it that we're seeing in the US for which we're doing some CapEx. So I'll mention that our customers are certainly in the US have indicated that they would like us to provide -- service them here in the US market, essentially. And that is what's driving our increased CapEx in the US.

因此我將回答這個問題。您的問題不是很清楚 - 只是為了清楚起見，但我認為您問的是，我們在美國看到了什麼，為此進行了資本支出。所以我要說的是，我們在美國的客戶肯定表示他們希望我們在美國市場為他們提供服務。這就是我們在美國增加資本支出的因素。

In terms of whether we have some agreements with them that'll secure that, I wouldn't say we have like a [tape or paste] because we generally do not have tape or paste here in our business at all. But we do have customer commitments and indications that they would support us in the event that we do this.

關於我們是否與他們達成了某些協議以確保這一點，我不會說我們有像[膠帶或粘貼劑]那樣的東西，因為我們通常在我們的業務中根本不使用膠帶或粘貼劑。但我們確實有客戶承諾和跡象表明，如果我們這樣做，他們會支持我們。

So that's typically the level of support that we can get from our customers in our industry. And that's what we have and as such we feel comfortable investing the amount that we're planning to invest here in the United States. Does that address your question? And I apologize (inaudible)

這就是我們通常能從本行業的客戶那裡獲得的支援程度。這就是我們所擁有的，因此我們放心在美國投資我們計劃投資的金額。這回答了你的問題嗎？我很抱歉（聽不清楚）

I was looking forward to see if there's any -- what was that part of that expansion that's tied to the CHIPS Act versus the organic demand.

我很期待看到是否有任何東西——該擴張中與《CHIPS 法案》和有機需求相關的部分是什麼。

So that would be organic demand so for the most part. With respect to the CHIPS Act, this is not necessarily contemplated in this CapEx at this time.

所以很大程度這是有機需求。就《CHIPS法案》而言，這在目前的資本支出中不一定會被考慮。

Okay.

好的。

Yeah, the question is how much of the capacity we're putting, in particular, in the US are linked to customers that are getting funding through the CHIPS Act. It's not a significant law. Most of the projects we're tracking in the States are projects that we believe would proceed with or without CHIPS funding. So we don't see a lot of, let's say, risk in the ones that we're tracking that are connected to those customers getting CHIPS funding.

是的，問題是我們在美國投入的產能有多少與透過 CHIPS 法案獲得資金的客戶有關。這不是一個重要的法律。我們認為，我們在美國追蹤的大多數計畫無論有沒有 CHIPS 資助都會繼續進行。因此，在我們所追蹤的與獲得 CHIPS 資金的客戶相關的專案中，我們沒有發現太多風險。

We also, as we reported, applied for CHIPS funding under the under the second NOFO, the small supplier NOFO. Our applications are still under consideration, but the current investments we're contemplating and talking about here are being done separately apart from what we'd invest additionally with the CHIPS opportunity.

正如我們所報告的，我們也根據第二個 NOFO，即小型供應商 NOFO 申請了 CHIPS 資金。我們的申請仍在考慮中，但我們正在考慮和討論的當前投資是除了我們利用 CHIPS 機會進行的額外投資之外的單獨進行的投資。

Got you. And in terms of the node migration to 22, 28, how much of that demand do you think is going to -- is that how is the 14 nm and the EUV compatible mask trending? Are you see any increased traction or increase from the AI designs of peripheral chips customers?

明白了。就節點遷移到 22、28 而言，您認為其中的需求會有多少——14 nm 和 EUV 相容掩模的趨勢如何？您是否看到外圍晶片客戶的 AI 設計有任何成長或提升？

Yeah, we see mostly AI-driven business for us. We see mostly adjacent or second order effects from AI. So I would say, we see some of that in different regions around the world. These are support chips for the AI ecosystem, designs of new chips for edge devices, and things like that that can take advantage of the AI ecosystem.

是的，我們的業務主要由人工智慧驅動。我們看到的大多是來自人工智慧的相鄰效應或二階效應。所以我想說，我們在世界各地不同地區都看到了這種情況。這些是用於AI生態系統的支援晶片、用於邊緣設備的新晶片的設計以及可以利用AI生態系統的東西。

I think we are definitely seeing some pull from those applications. Not really appropriate to quantify it, but it is a positive trend.

我認為我們確實看到了這些應用程式的一些吸引力。雖然量化它並不合適，但這是一個積極的趨勢。

On the memory side, we mentioned that memory is a relatively small part of our IT business, but it was one of the stronger growing segments that is connected also to AI demand and cloud demand, and that sort of thing. So we're definitely seeing a lift from that application driver and we expect that to continue to grow as we look ahead in future quarters and years.

在記憶體方面，我們提到記憶體是我們 IT 業務中相對較小的一部分，但它是成長強勁的部分之一，也與 AI 需求和雲端需求等相關。因此，我們確實看到了該應用程式驅動程式的提升，並且我們預計，在未來幾個季度和幾年內，該驅動程式將繼續成長。

So post-2026, as the full capacity of your CapEx comes into line, do you have an idea of what percentage of the high-end IC revenue might be tied to supporting that AI infrastructure?

那麼，在 2026 年之後，當您的資本支出的全部容量達到一定水平時，您是否知道有多少比例的高端 IC 收入可能與支援 AI 基礎設施有關？

Yeah, I don't think we would say what percent of our high-end revenue at that time would be AI driven. So it's difficult to say. Yeah, I mean, I think it would be a significant part, but we probably would not be wise to put a specific percent on it at this point.

是的，我認為我們不會說當時我們高端收入中有多少百分比是由人工智慧驅動的。所以很難說。是的，我的意思是，我認為這將是一個重要部分，但目前我們可能還不適合在其上標註具體的百分比。

Okay. In terms of Auto industry, Auto and Industrial softeners, it's persisted for multiple sector quarters now. Any sign of inventory restocking or new designers in these sectors for your mainstream?

好的。就汽車產業而言，汽車和工業的疲軟態勢已持續多個產業季度。您的主流領域中有任何庫存補充或新設計師加入的跡象嗎？

I mean, I can make another comment on that. Maybe Frank or Eric can follow up, but I would say still looks fairly weak in that market, the Automotive market. Units are down and there is some ASP pressures because the end users are struggling, so it always drives some ASP pressures.

我的意思是，我可以對此發表另一條評論。也許弗蘭克 (Frank) 或埃里克 (Eric) 可以跟進，但我想說，汽車市場看起來仍然相當薄弱。由於最終用戶陷入困境，單位產量下降，並且 ASP 也存在一定壓力，因此這總是會帶來一些 ASP 壓力。

And I would say, at the moment, we don't see significant uptick. Maybe we'd say some stabilization. It's not dropping significantly from where it is, but as far as a big turnaround in the Automotive sector, I don't believe we're really seeing it at this point.

我想說，目前我們還沒有看到明顯的上漲。也許我們會說某種程度的穩定。雖然它並沒有大幅下降，但就汽車行業的重大轉變而言，我認為我們目前還沒有真正看到它。

In China, and Frank could probably comment further, there is more activity going on in Automotive design. Some portion of that is government-backed and government-funded, but still, the supply demand situation is not really healthy also in China on the Automotive side.

在中國，弗蘭克可能進一步評論說，汽車設計領域正在進行更多的活動。其中一部分是政府支持和政府資助的，但中國汽車的供需狀況仍然不太健康。

Yes, correct. IC design activity seems to decrease in these two segments at this moment. So I believe the end product business softness impact the new chip design.

是的，正確。目前，這兩個領域的 IC 設計活動似乎有所減少。因此我相信最終產品業務的疲軟會影響新的晶片設計。

Okay. In terms of geographic mix for driving H2, how are you guys thinking about all the tariffs, the subsidies impacting regional pricing?

好的。從推動 H2 發展的地理組合來看，你們如何看待所有關稅和補貼對區域定價的影響？

I'm sorry, if you don't mind repeating the question, I'm not sure it came through.

抱歉，如果你不介意重複這個問題的話，我不確定我是否理解了。

In terms of how, as you think about H2 of 2025 and the geographic mix, how do you look at the geopolitical landscape and how does that impact the regional pricing?

就您如何看待 2025 年下半年和地理組合而言，您如何看待地緣政治格局以及這將如何影響區域定價？

So thanks again for the question, for repeating the question actually. So, given the current macro and geopolitical conditions, actually, we're increasingly cautious. So we don't have a great visibility at the moment of how the second half is going to be. We expect to have a better picture in Q2, but the question is a great one, it's just that the current environment doesn't allow us to see what that is at the moment.

所以再次感謝您的提問，實際上重複了這個問題。因此，考慮到當前的宏觀和地緣政治條件，我們實際上越來越謹慎。因此，目前我們還不太清楚下半年的情況會是如何。我們預計第二季的情況會更好，但這個問題很好，只是當前的環境不允許我們目前看到這種情況。

Okay. And well, as we model for fiscal '25, are we looking at R&D costs declining as the project qualifications taper off?

好的。那麼，當我們為 25 財年建模時，我們是否看到隨著專案資格的減少，研發成本會下降？

Well, I think I would best describe it as probably -- I mean that's -- we don't have a great picture, as I mentioned, right now as how the second half is going to be. But at the moment, if I just were to comment what we see in the moment, we definitely don't see it increasing.

嗯，我想我最好這樣描述：可能——我的意思是——正如我提到的那樣，我們現在對下半年的情況還沒有很好的了解。但目前，如果我只是評論我們目前看到的情況，我們肯定沒有看到它增加。

So I think if we take that position of at least stable, that would be the best thing I can give you a comment on. And in the past, with respect to OpEx, we do expect OpEx to be about 10% of revenue going forward. That's our target.

因此我認為，如果我們採取至少穩定的立場，那將是我能給你的最好的評論。過去，就營運支出而言，我們確實預期營運支出將佔未來收入的 10% 左右。這就是我們的目標。

And yeah, of course just generally on the qualification side just to make a comment, the goal of course, as we complete one set of qualifications, start new ones after those. So I agree, just supporting and seconding Eric's comment, I think, steady state picture is probably a pretty good way to look at the R&D.

是的，當然只是就資格方面做個一般性的評論，當然，目標是，當我們完成一套資格後，再開始新的資格。所以我同意，只是支持並附議 Eric 的評論，我認為，穩定狀態圖可能是觀察研發的一種很好的方式。

Okay. And in terms of outlook, what would you say were your top two risks for 2025? Is it the macro demand, the geopolitical tensions, or customer delays? If you want to quantify.

好的。從展望來看，您認為 2025 年最大的兩大風險是什麼？是宏觀需求、地緣政治緊張局勢，還是顧客延遲？如果要量化的話。

Yeah, I would say I think you hit them all. But to answer your question, the top two, I would say the macroeconomic and the geopolitical.

是的，我想您已經全部擊中了。但要回答你的問題，我認為最重要的兩個問題是宏觀經濟和地緣政治。

Okay. That's all I have. Thank you, guys, for taking my questions and good luck.

好的。這就是我的所有了。謝謝你們回答我的問題並祝你好運。

Thank you. Ladies and gentlemen, I'm showing no further questions in the queue. I would now like to turn the call back over to Ted for closing remarks.

謝謝。女士們、先生們，我表示隊列中沒有其他問題。現在我想將電話轉回給泰德，請他作最後發言。

Thank you, July, and thank you, everyone, for joining us today. We appreciate your interest in Photronics. We look forward to catching up with everyone over the coming days and weeks. Have a great day.

謝謝朱莉，也謝謝大家今天的參與。感謝您對Photronics的關注。我們期待在接下來的幾天和幾週內與大家見面。祝你有美好的一天。

Ladies and gentlemen, that concludes today's conference call. Thank you for your participation. You may now disconnect.

女士們、先生們，今天的電話會議到此結束。感謝您的參與。您現在可以斷開連線。