意法半導體 (STM) 2020 Q2 法說會逐字稿

Ladies and gentlemen, welcome to the STMicroelectronics Q2 2020 Earnings Results Conference Call and Live Webcast. I am Alessandro, the Chorus Call operator. (Operator Instructions) And the conference is being recorded. The presentation will followed by a Q&A session. (Operator Instructions) The conference must not be recorded for publication or broadcast.

女士們，先生們，歡迎參加意法半導體 2020 年第二季度收益結果電話會議和網絡直播。我是合唱團呼叫接線員亞歷山德羅。 （操作員說明）會議正在錄製中。演講之後將進行問答環節。 （操作員說明）不得為發布或廣播錄製會議。

At this time, it's my pleasure to hand over to Celine Berthier, Group Vice President, Head of Investor Relations. Please go ahead.

在這個時候，我很高興向集團副總裁兼投資者關係主管 Celine Berthier 工作。請繼續。

Thank you, Alessandro. Good morning. Good morning, everyone. Thank you for joining our second quarter 2020 financial results conference call. Hosting the call today is Jean-Marc Chery, ST's President and Chief Executive Officer. Joining Jean-Marc on the call today are Lorenzo Grandi, President of Finance, Infrastructure and Services, and Chief Financial Officer; Marco Cassis, President of Sales, Marketing, Communications and Strategy Development.

謝謝你，亞歷山德羅。早上好。大家，早安。感謝您參加我們的 2020 年第二季度財務業績電話會議。今天主持電話會議的是 ST 總裁兼首席執行官 Jean-Marc Chery。今天加入 Jean-Marc 的還有財務、基礎設施和服務總裁兼首席財務官 Lorenzo Grandi； Marco Cassis，銷售、營銷、傳播和戰略發展總裁。

This live webcast and presentation materials can be accessed on ST's Investor Relations website. A replay will be available shortly after the conclusion of this call.

可以在 ST 的投資者關係網站上訪問該網絡直播和演示材料。本次通話結束後不久將提供重播。

This call will include forward-looking statements that involve risk factors that could cause ST's results to differ materially from management's expectations and plans. We encourage you to review the safe harbor statement contained in the press release that was issued with the results this morning and also in ST's most recent regulatory filings for a full description of these risk factors.

本次電話會議將包括前瞻性陳述，其中涉及可能導致 ST 的結果與管理層的預期和計劃存在重大差異的風險因素。我們鼓勵您查看今天上午與結果一起發布的新聞稿中包含的安全港聲明，以及 ST 最新的監管文件中的安全港聲明，以獲得對這些風險因素的完整描述。

(Operator Instructions)

（操作員說明）

I'd now like to turn the call over to Jean-Marc, ST's President and CEO.

我現在想把電話轉給 ST 總裁兼首席執行官 Jean-Marc。

Thank you, Celine. Good morning, and thank you for joining ST on our second quarter 2020 earnings conference call. I trust that you, your families and your colleagues are staying safe and healthy, especially those localized in most infected region.

謝謝你，席琳。早上好，感謝您加入 ST 參加我們的 2020 年第二季度財報電話會議。我相信您、您的家人和您的同事都保持安全和健康，尤其是那些位於受感染最嚴重地區的人。

Now to ST results and plans for the rest of the year, let me begin with some opening comments starting with Q2. During the quarter, we returned to normal operations, supporting our customers' demand and continuing to ensure the health and safety of our employees.

現在到 ST 今年剩餘時間的結果和計劃，讓我從 Q2 開始的一些開場評論開始。在本季度，我們恢復了正常運營，支持客戶的需求並繼續確保員工的健康和安全。

Net revenues were $2.09 billion, down 6.5% on a sequential basis. As expected, this was due to a decline in Automotive, Analog and Imaging products, partially offset by growth in Microcontrollers, Digital and Power Discrete. Gross margin at 35% included 310 basis points of unsaturation charges. Our operating margin was at 5.1% and our net income was $90 million.

淨收入為 20.9 億美元，環比下降 6.5%。正如預期的那樣，這是由於汽車、模擬和成像產品的下降，部分被微控制器、數字和功率分立器件的增長所抵消。 35% 的毛利率包括 310 個基點的不飽和費用。我們的營業利潤率為 5.1%，淨收入為 9000 萬美元。

For the first half of 2020, net revenues grew 1.6% year-over-year to $4.32 billion, driven by higher sales in Analog, Imaging and Microcontrollers, partially offset by lower sales in Automotive and Power Discrete. Our operating margin was 7.8% for H1 2020 and our net income was $282 million.

2020 年上半年，受模擬、成像和微控制器銷售額增長的推動，淨收入同比增長 1.6% 至 43.2 億美元，部分被汽車和功率分立器件的銷售額下降所抵消。我們 2020 年上半年的營業利潤率為 7.8%，淨收入為 2.82 億美元。

Looking at Q3 2020. At the midpoint of our guidance, we expect net revenues in the third quarter to be about $2.45 billion, representing sequential growth of about 17.4%. Gross margin is expected to be about 36% at the midpoint, and includes about 200 basis points of unsaturation charges.

展望 2020 年第三季度。在我們指導的中點，我們預計第三季度的淨收入約為 24.5 億美元，環比增長約 17.4%。中點毛利率預計約為 36%，其中包括約 200 個基點的不飽和費用。

For the full year 2020, we will drive the company based on an updated plan for full year 2020, net revenues in the range of about $9.25 billion to $9.65 billion, with growth in the second half over the first half to be in the range of $610 million to $1.01 billion. We expect this growth to be driven by engaged customer programs, new products and improved market conditions. Our CapEx plan for 2020 is now $1.2 billion. For H1 2020, we invested $578 million.

2020 年全年，我們將根據更新後的 2020 年全年計劃驅動公司，淨收入在 92.5 億美元至 96.5 億美元之間，下半年較上半年增長在6.1 億美元至 10.1 億美元。我們預計這種增長將受到參與的客戶計劃、新產品和改善的市場條件的推動。我們 2020 年的資本支出計劃現在是 12 億美元。 2020 年上半年，我們投資了 5.78 億美元。

Now let's move to a detailed financial review of the second quarter. The quarter was impacted by the weak demand environment, especially in automotive as well as the operation and logistics challenges due to the governmental regulations related to the COVID-19 outbreak that started in Q1 '20.

現在讓我們來看看第二季度的詳細財務回顧。本季度受到需求環境疲軟的影響，尤其是在汽車領域，以及由於與 20 年第一季度開始的 COVID-19 爆發相關的政府法規導致的運營和物流挑戰。

Net revenues decreased 4% year-over-year, with lower sales in Imaging, Automotive and MEMS, partially offset by higher sales in Microcontrollers, Digital, Analog and Power Discrete. Year-over-year sales to distribution increased 9.7% and sales to OEMs decreased 9.7%. On a sequential basis, net revenue decreased 6.5%, 380 basis points better than the midpoint of the guidance we gave at the end of April.

淨收入同比下降 4%，成像、汽車和 MEMS 的銷售額下降，部分被微控制器、數字、模擬和功率分立器件的銷售額增加所抵消。對分銷的銷售額同比增長 9.7%，對原始設備製造商的銷售額下降 9.7%。在環比的基礎上，淨收入下降了 6.5%，比我們在 4 月底給出的指導中點高出 380 個基點。

By product group, revenue increased sequentially for MDG, while ADG and AMS decreased. Our gross profit was $730 million, decreasing 12.2% year-over-year. Gross margin was 35%, decreasing 320 basis points year-over-year, mainly due to unsaturation charges, including the impact of COVID-19 workforce-related restrictions and price pressure. More specifically, unsaturation charges were 310 basis points. Our second quarter margin was 40 basis points higher than the midpoint of our guidance as unsaturation charges were better than expected.

按產品組劃分，MDG 的收入環比增長，而 ADG 和 AMS 則下降。我們的毛利潤為 7.3 億美元，同比下降 12.2%。毛利率為 35%，同比下降 320 個基點，主要是由於不飽和費用，包括 COVID-19 勞動力相關限制和價格壓力的影響。更具體地說，不飽和費用為 310 個基點。我們第二季度的利潤率比我們指導的中點高 40 個基點，因為不飽和費用好於預期。

Moving on to net operating expenses. As we outlined last quarter, we are maintaining strict discipline on expense control while protecting our R&D, sales and marketing programs and transformation initiatives. Net operating expenses at $620 million were below what we anticipated when entering the quarter. Our second quarter operating margin was 5.1%, decreasing by 390 basis points on a year-over-year basis. Both ADG and AMS operating margin decreased, while MDG's operating margin improved. Our net income decreased to $90 million and EPS to $0.10 compared to $160 million and $0.18, respectively, a year ago.

繼續淨運營費用。正如我們上個季度所概述的那樣，我們在保護我們的研發、銷售和營銷計劃以及轉型計劃的同時，在費用控制方面保持嚴格的紀律。淨運營費用為 6.2 億美元，低於我們進入本季度時的預期。我們第二季度的營業利潤率為 5.1%，同比下降 390 個基點。 ADG 和 AMS 營業利潤率均下降，而 MDG 的營業利潤率有所提高。與一年前的 1.6 億美元和 0.18 美元相比，我們的淨收入降至 9000 萬美元，每股收益降至 0.10 美元。

Turning now to the revenue performance of the product groups on a year-over-year basis. ADG revenues decreased 17.8% on weaker demand in legacy Automotive, while Power Discrete grew. AMS revenues decreased 10.1%, with MEMS and Imaging lower while Analog sales were higher. MDG revenues increased 24.1%, reflecting strong growth in Microcontrollers.

現在轉向產品組的同比收入表現。由於傳統汽車需求疲軟，ADG 收入下降 17.8%，而 Power Discrete 則增長。 AMS 收入下降 10.1%，其中 MEMS 和 Imaging 下降，而 Analog 銷售額上升。 MDG 收入增長 24.1%，反映了微控制器的強勁增長。

In terms of operating margin by product group on a year-over-year basis. MDG operating margin increased to 15.9% from 7.6%, while ADG operating margin decreased to 2.3% from 8.2% and AMS operating margin decreased to 9% from 10.7%.

就按產品組劃分的營業利潤率而言，同比。 MDG 營業利潤率從 7.6% 增加到 15.9%，而 ADG 營業利潤率從 8.2% 下降到 2.3%，AMS 營業利潤率從 10.7% 下降到 9%。

Net cash from operating activities increased 19.4% to $387 million in Q2 compared to $324 million in the year ago period. Free cash flow was a positive $28 million, including CapEx of $312 million, compared to a negative $67 million in the year ago quarter.

第二季度經營活動產生的淨現金增長 19.4% 至 3.87 億美元，而去年同期為 3.24 億美元。自由現金流為正 2800 萬美元，其中資本支出為 3.12 億美元，而去年同期為負 6700 萬美元。

During Q2, we paid cash dividends totaling $37 million and executed a $63 million share buyback as part of the company's previously announced share repurchase program.

在第二季度，作為公司先前宣布的股票回購計劃的一部分，我們支付了總計 3700 萬美元的現金股息並執行了 6300 萬美元的股票回購。

Moving now to our business and end market review, let me start with a comment. During the second quarter, we returned to normal operations, supporting our customers' demand and continuing to ensure the health and safety of our employees. This has been our priorities since the start of the pandemic. In preparation for the return of all our employees to our sites worldwide, we put in place very strict safety protocols. Today, we are back to full operation of our manufacturing activities worldwide. Our nonmanufacturing employees located in areas still under specific restrictions are progressively returning to our offices in line with local regulation. Our back-to-site plan, coupled with the engagement of our employees, enable us to keep all our committed programs on track and to maintain a high level of customer interaction.

現在轉到我們的業務和最終市場審查，讓我先發表評論。在第二季度，我們恢復了正常運營，支持客戶的需求並繼續確保員工的健康和安全。自大流行開始以來，這一直是我們的優先事項。為了準備我們所有員工返回我們在全球的工廠，我們制定了非常嚴格的安全協議。今天，我們已恢復在全球範圍內全面開展生產活動。我們位於仍受特定限制地區的非製造員工正在按照當地法規逐步返回我們的辦公室。我們的返廠計劃，加上我們員工的參與，使我們能夠將所有承諾的計劃保持在正軌上，並保持高水平的客戶互動。

So let's now discuss the market and business dynamics. The automotive market was hit by closures at carmakers and Tier 1s at different times across the globe. First, China in Q1, followed later by Europe and the U.S. Q2 is considered to be the bottom, and the market was worse than expected with lockdowns extended in some regions. China can see a recovery, partially compensating for the worst situation in Europe and in U.S. We have started to see benefits from automotive incentives in France from June and South Korea for the full year, supporting the anticipated recovery in Q3 and Q4. The legacy automotive market is clearly suffering, amplified by the pandemic situation. We did not see and do not see any substantial slowdown of customer activity as far as the long-term megatrends and ST's strategic growth driver in smart mobility are concerned.

因此，現在讓我們討論市場和業務動態。汽車市場在全球不同時間受到汽車製造商和一級供應商關閉的打擊。首先，中國在第一季度，其次是歐洲和美國，第二季度被認為是底部，市場不及預期，部分地區延長封鎖。中國可以看到復蘇，部分彌補了歐洲和美國最糟糕的情況。我們已經開始看到法國和韓國從 6 月開始全年受益於汽車激勵措施，這支持了第三季度和第四季度的預期復蘇。傳統汽車市場顯然正在遭受大流行病的影響。就長期大趨勢和意法半導體在智能出行領域的戰略增長動力而言，我們沒有看到也沒有看到任何客戶活動大幅放緩。

Electrification and digitalization. In car electrification, we had again a number of new design wins for silicon carbide MOSFETs, in a traction invertor and in an on-board chargers and DC-DC converter for electrical vehicles. We are also seeing opportunities for silicon carbide in electrical vehicles beyond these areas. An example is climate compressors, where the current statistics of silicon carbide, allowing to address deficiency and side challenges in this specific application.

電氣化和數字化。在汽車電氣化方面，我們再次在碳化矽 MOSFET、牽引逆變器、車載充電器和電動汽車 DC-DC 轉換器方面獲得了多項新設計。我們還看到了碳化矽在這些領域之外的電動汽車中的機會。一個例子是氣候壓縮機，其中碳化矽的當前統計數據可以解決此特定應用中的缺陷和側面挑戰。

Beyond car, we also had an important design win for a battery management system for e-bikes, a real growing area. Overall, our silicon carbide engagement with customers has increased during the quarter. There were no slowdown in already awarded project. And as of today, we are engaged with 58 customers in 64 ongoing programs. These programs are split around 50-50 between automotive customers and industrial customers.

除了汽車，我們還為電動自行車的電池管理系統贏得了重要的設計勝利，這是一個真正增長的領域。總體而言，本季度我們與客戶的碳化矽互動有所增加。已中標項目沒有放緩。截至今天，我們在 64 個正在進行的項目中與 58 位客戶合作。這些計劃在汽車客戶和工業客戶之間分配了大約 50-50。

Moving to car digitalization, where we are focused on technologies and solutions for driver assistance and autonomous driving, V2X communications and embedded processing solutions supporting new car architectures. During Q2, we saw a continuous flow of power for our 28-nanometer Phase Change Memory microcontrollers, Stellar, driven by the evolution of car architectures. On ADAS, we saw a strong Level 2 and Level 3 adoption in mid- and entry-level cars. We expect that during 2021, 1/3 of cars produced will have a vision-based system using ST technology. We are also growing our share in automotive microcontrollers, including those for 77 gigahertz radar applications.

轉向汽車數字化，我們專注於駕駛輔助和自動駕駛的技術和解決方案、V2X 通信和支持新汽車架構的嵌入式處理解決方案。在第二季度，我們看到我們的 28 納米相變存儲器微控制器 Stellar 在汽車架構演進的推動下持續獲得動力。在 ADAS 上，我們看到中級和入門級汽車的 2 級和 3 級採用率很高。我們預計，到 2021 年，1/3 的生產汽車將配備使用 ST 技術的基於視覺的系統。我們也在增加汽車微控制器的份額，包括用於 77 GHz 雷達應用的微控制器。

During the quarter, we also won sockets for our global shutter automotive imaging solution for driver monitoring system from 2 major OEMs. And this is an important step in our diversification strategy related to optical sensing solutions.

在本季度，我們還從 2 家主要 OEM 獲得了用於駕駛員監控系統的全局快門汽車成像解決方案的插座。這是我們與光學傳感解決方案相關的多元化戰略的重要一步。

Moving now to Industrial. The dynamics of the Industrial market remains mixed. Some applications like home appliances and lighting are still weak. But during the quarter, we started to see some positive signs in key application areas for ST, such as renewable energy and factory automation. Distribution is an important element of our go-to-market strategy in Industrial. Here, the overall situation in the channel has improved.

現在搬到工業。工業市場的動態仍然喜憂參半。家電和照明等一些應用仍然薄弱。但在本季度，我們開始在 ST 的關鍵應用領域看到一些積極跡象，例如可再生能源和工廠自動化。分銷是我們在工業領域進入市場戰略的重要組成部分。在這裡，渠道的整體情況有所好轉。

In Asia, and mainly in China, point of sales trends were strong sequentially and now also up year-over-year, with a healthy level of inventory in our distribution channel, especially for Microcontrollers and MEMS. From April, we also started to see positive signs for Analog and Power Discrete. America and Europe are still weak. Point of sales on a year-over-year basis is not improving, and inventory levels are still somewhat high in general purpose analog and industrial power conversion. We address the Industrial markets with our general purpose and secure microcontrollers, analog and sensors, power and energy management solutions.

在亞洲，主要是在中國，銷售點趨勢環比強勁，現在也同比上升，我們的分銷渠道庫存水平健康，尤其是微控制器和 MEMS。從 4 月開始，我們也開始看到模擬和功率分立器件的積極跡象。美國和歐洲仍然很弱。銷售點同比沒有改善，通用模擬和工業電源轉換的庫存水平仍然偏高。我們通過通用和安全的微控制器、模擬和傳感器、電源和能源管理解決方案來應對工業市場。

One of our objective in Industrial is leadership in analog processing solution. We recently made 2 acquisitions to further strengthen the wireless connectivity capabilities of our STM32 microcontroller family. These acquisitions cover Narrow Band Cellular and Ultra Wide-band wireless technology from a Riot Micro and BeSpoon. These technologies are key wireless connectivity solutions that will enable a new wave of IoT connected objects and innovative applications, especially in Industrial that complement our existing wireless connectivity offering. We have now shipped over 6 billion parts from our STM32 family. In parallel, we are continuously strengthening our offer in terms of hardware, software and ecosystem. Some examples from the quarter include the launch of the STM32 Digital Power Ecosystem for power supply controls, tools from partners that complement our artificial intelligence capabilities and software packages that simplify development of safety critical products.

我們在工業領域的目標之一是在模擬處理解決方案方面處於領先地位。我們最近進行了 2 次收購，以進一步加強我們 STM32 微控制器系列的無線連接能力。這些收購涵蓋了 Riot Micro 和 BeSpoon 的窄帶蜂窩和超寬帶無線技術。這些技術是關鍵的無線連接解決方案，將支持新一波物聯網連接對象和創新應用，尤其是在工業領域，它們可以補充我們現有的無線連接產品。現在，我們的 STM32 系列已出貨超過 60 億個部件。與此同時，我們在硬件、軟件和生態系統方面不斷加強我們的服務。本季度的一些示例包括推出用於電源控制的 STM32 數字電源生態系統、合作夥伴提供的工具來補充我們的人工智能功能，以及簡化安全關鍵產品開發的軟件包。

Another strategic objective is to accelerate our growth in analog and sensors for Industrial. In Q2, we won several new designs with our analog products for industrial applications. For example, we received awards for motor drivers and smart power products from industrial equipment, lighting and on appliance makers as well as metering customers. And in industrial sensors, our new industrial grade inclinometer was adopt by multiple large customers.

另一個戰略目標是加速我們在工業模擬和傳感器方面的增長。在第二季度，我們的工業應用模擬產品贏得了多項新設計。例如，我們獲得了來自工業設備、照明和電器製造商以及計量客戶的電機驅動器和智能電源產品獎項。在工業傳感器方面，我們的新型工業級傾角儀被多家大客戶採用。

We are targeting expansion in industrial power and energy management. And with our Power Discrete products for Industrial application, we learned the design wins for high-voltage MOSFETs in power supply, solar, lighting, adapters and on appliances. We also captured several awards with silicon carbide again, IGBT and Intelligent Power Modules for motor control, charging stations and renewable energy. We also had design wins with our power management, IC, combined with an STM32 standard microprocessor.

我們的目標是擴大工業電力和能源管理。通過我們用於工業應用的功率分立器件產品，我們了解到電源、太陽能、照明、適配器和電器中的高壓 MOSFET 的設計勝出。我們還憑藉用於電機控制、充電站和可再生能源的碳化矽、IGBT 和智能功率模塊再次獲得了多個獎項。我們的電源管理 IC 與 STM32 標準微處理器相結合，我們也獲得了設計上的勝利。

Moving now to the personal electronic market. Despite the slowdown in consumer demand for smartphones during the quarter, we saw increasing demand for anything related to accessories, wearable, gaming and continued innovation-driven semiconductor demand for smartphones. We sell this market with our sensors and secure solutions, power management, analog and front-end modules. We lead in a number of very specific high volume smartphone applications as well as in wearable, such as smart watches, wireless stable wearables and gaming devices. We also aim at capturing opportunities in 5G with RF [mix signals].

現在轉向個人電子市場。儘管本季度消費者對智能手機的需求放緩，但我們看到對與配件、可穿戴設備、遊戲相關的任何產品的需求不斷增加，以及對智能手機的持續創新驅動的半導體需求。我們通過我們的傳感器和安全解決方案、電源管理、模擬和前端模塊來銷售這個市場。我們在許多非常具體的大容量智能手機應用以及可穿戴設備領域處於領先地位，例如智能手錶、無線穩定可穿戴設備和遊戲設備。我們還旨在利用 RF [混合信號] 捕捉 5G 中的機會。

During the quarter, we won numerous new designs and ramped production of our products in the flagship devices, including an increasing number of 5G models. Some example of our products include motion sensors, time-of-flight ranging sensors, secure solutions such as ECM and secure elements with NFC, touch display and wireless charging products. We ramped production of our new multi-pixel direct time-of-flight sensor for world-facing camera application in a new flagship device for a global smartphone leader.

在本季度，我們贏得了眾多新設計，並在旗艦設備中增加了產品的產量，包括越來越多的 5G 型號。我們的一些產品示例包括運動傳感器、飛行時間測距傳感器、安全解決方案（如 ECM）和帶 NFC 的安全元件、觸摸顯示屏和無線充電產品。我們為全球智能手機領導者的新旗艦設備增加了用於面向世界的相機應用的新型多像素直接飛行時間傳感器的生產。

In communication equipment and computer peripherals, during Q2, we saw solid market demand for our design for servers as well as continued demand for 5G-related products. Our strategic approach to this end market is focused on cellular and satellite communication. We were awarded a design base on ST propriety technologies for a processor for a satellite application as well as several RF projects for telecommunications infrastructure.

在通信設備和計算機外圍設備方面，在第二季度，我們看到市場對我們的服務器設計的強勁需求以及對 5G 相關產品的持續需求。我們對這個終端市場的戰略方法專注於蜂窩和衛星通信。我們獲得了一項基於 ST 專有技術的設計基礎，用於衛星應用處理器以及用於電信基礎設施的多個射頻項目。

Now let's move to a discussion of the third quarter and brief comments on the full year 2020. For the third quarter, we expect net revenues to be about $2.45 billion. This sequential growth of about 17.4% will be driven by engaged customer programs, new products and improved market conditions. Gross margin is expected to be about 36% at the midpoint and includes unsaturation charges of about 200 basis points fully related to demand.

現在讓我們討論第三季度並簡要評論 2020 年全年。我們預計第三季度的淨收入約為 24.5 億美元。約 17.4% 的連續增長將受到參與的客戶計劃、新產品和改善的市場條件的推動。中點毛利率預計約為 36%，其中包括與需求完全相關的約 200 個基點的不飽和費用。

For the full year, I outlined earlier our sales and operating plan to drive ST to 2020 net revenues now in the range of about $9.25 billion to $9.65 billion, and for growth in H2 over H1 between $610 million and $1.01 billion. This plan reflects an improvement compared to the previous range of $8.8 billion to $9.5 billion we expected entering Q2. Our CapEx plan for 2020 is now about $1.2 billion.

對於全年，我早些時候概述了我們的銷售和運營計劃，以推動 ST 到 2020 年的淨收入目前在約 92.5 億美元至 96.5 億美元的範圍內，並在 H2 和 H1 之間實現 6.1 億美元至 10.1 億美元的增長。與之前我們預計進入第二季度的 88 億至 95 億美元的範圍相比，該計劃有所改善。我們 2020 年的資本支出計劃現在約為 12 億美元。

Before concluding, I would like to share with you our updated plans and time line for our Capital Markets Day. During the ongoing pandemic, we will be conducting a virtual Capital Market Day, and it is not prudent to host a physical event. And we are aware that some of you are not yet in a condition to travel. With this decision, we decided to break the event into 4 separate modules, 3 of them covering ST product group strategy and road map, the fourth will focus on the overall company strategy, including our financial model. The preliminary schedule is as follow: MDG, September 15; ADG, November 6; AMS, November 20; and overall strategic update, December 9.

在結束之前，我想與您分享我們資本市場日的更新計劃和時間表。在持續的大流行期間，我們將舉辦虛擬資本市場日，舉辦實體活動並不謹慎。我們知道你們中的一些人還沒有適合旅行的條件。有了這個決定，我們決定將活動分成 4 個獨立的模塊，其中 3 個涵蓋 ST 產品組戰略和路線圖，第 4 個將關注整個公司戰略，包括我們的財務模型。初步時間表如下：MDG，9 月 15 日；助理總幹事，11 月 6 日； AMS，11 月 20 日；和總體戰略更新，12 月 9 日。

To conclude, I would like to reinforce 2 key points. But first, while we continue to ensure the ongoing health and safety of our employees in response to the global pandemic during last quarter, we have returned to normal operations. Our Q2 results, along with our Q3 guidance, are a clear reflection of that.

最後，我想強調兩個關鍵點。但首先，雖然我們在上個季度繼續確保員工的持續健康和安全以應對全球大流行，但我們已經恢復正常運營。我們的第二季度業績以及第三季度的指導清楚地反映了這一點。

Second, ST fundamentals are solid. The strategic decisions we made years ago have enabled us to successfully serve secular growing market trends, addressing key societal deals. We work alongside our customers both for the short and the long term. We are determined to continue to make ST stronger by consistently executing our strategy quarter-after-quarter with a clear sales and operating plan.

其次，ST基本面穩固。我們多年前做出的戰略決策使我們能夠成功地服務於長期增長的市場趨勢，解決關鍵的社會交易。無論是短期還是長期，我們都與客戶一起工作。我們決心通過明確的銷售和運營計劃一個季度一個季度地持續執行我們的戰略，繼續讓 ST 變得更強大。

Thank you. And we are now ready to answer your question.

謝謝你。我們現在準備回答您的問題。

(Operator Instructions) The first question comes from Achal Sultania from Crédit Suisse.

（操作員說明）第一個問題來自瑞士信貸的 Achal Sultania。

Maybe can you provide some color on the inventory side? I guess you're still running at a very high inventory on your own books. I think last quarter, you mentioned that you have a plan to get it down to about 100 days by the end of this year. So are we still looking to achieve that target by end of 2020?

也許你能在庫存方面提供一些顏色嗎？我猜您自己的書本上的庫存仍然很高。我想上個季度，您提到您計劃在今年年底前將其縮短到 100 天左右。那麼，我們是否仍然希望在 2020 年底之前實現該目標？

And then secondly on this Huawei impact, like I just want to understand how much of that Huawei impact is in your guidance for second half of this year or is it something that you're still assessing how that situation unfolds, and at this point, it's very difficult for you to assume some of that impact in your second half guidance.

其次，關於對華為的影響，我只是想了解您對今年下半年的指導中有多少華為的影響，或者您是否仍在評估這種情況如何展開，在這一點上，您很難在下半年的指導中承擔一些影響。

Thank you. So Lorenzo will answer the first question, and I will answer the second one.

謝謝你。所以洛倫佐會回答第一個問題，我會回答第二個問題。

Lorenzo speaking. Thank you for the question. During the second quarter, actually, our inventory increased. During the second quarter, for sure, one of our priorities was, let's say, back to manufacturing of our people. And indeed, we ran a little bit better than expected. As you know, our saturation charges, that came lower than what was our original expectation entering the quarter. So at the end, the inventory at the end of the second quarter was in the range of 129 days of investment.

洛倫佐發言。感謝你的提問。實際上，在第二季度，我們的庫存增加了。可以肯定的是，在第二季度，我們的一個優先事項是，比如說，回到我們員工的製造上。事實上，我們的表現比預期的要好一些。如您所知，我們的飽和費用低於我們進入本季度的最初預期。所以最終，二季度末的庫存在投資129天的範圍內。

In the second half of the year, we will continue to monitor our inventory. And indeed, with the level of unsaturation in the second part of the year, we'll continue to be presented with around 200 basis point, both in Q3 and in Q4. And I do expect, let's say, that in Q3, our level of inventory and the number of days will go down in a range of between 115 and 120 days. And I do expect for Q4 to go back to the level that I was mentioning already during the first quarter earning release in the range of 95 to 100 days.

下半年，我們將繼續監控我們的庫存。事實上，隨著今年下半年的不飽和程度，我們將在第三季度和第四季度繼續看到大約 200 個基點。而且我確實預計，在第三季度，我們的庫存水平和天數將在 115 到 120 天之間下降。而且我確實希望第四季度能夠回到我在第一季度發布的 95 到 100 天的收益報告中已經提到的水平。

Thank you, Lorenzo. So about Huawei, I would like to highlight again that we address this customer following our strategy of selective approach on personal electronics and communication infrastructure. Okay, the products that we sell them are all within our strategy clearly. And among the products that we ship to them, there are custom solutions, application-specific standard product and general purpose products. But clearly, again, we acknowledge at the May 15, 2020, announcement by the U.S. Bureau of Industry and Security, ST will simply comply with the laws and applicable regulation as we continue to support our customer. We had no impact in Q2. We do not have any impact in Q3. And we will have some impact in Q4, which is already embedded in the indication we have given for the full year 2020 plan. I hope it answer your question.

謝謝你，洛倫佐。所以關於華為，我想再次強調，我們按照我們在個人電子產品和通信基礎設施方面採取選擇性方法的策略來解決這個客戶問題。好的，我們銷售的產品都在我們的戰略範圍內。在我們提供給他們的產品中，有定制解決方案、特定應用的標準產品和通用產品。但很明顯，我們再次承認，在 2020 年 5 月 15 日美國工業和安全局的公告中，ST 在繼續為客戶提供支持的同時將僅遵守法律和適用法規。我們在第二季度沒有影響。我們在第三季度沒有任何影響。我們將在第四季度產生一些影響，這已經包含在我們為 2020 年全年計劃給出的指示中。我希望它能回答你的問題。

The next question comes from Andrew Gardiner from Barclays.

下一個問題來自巴克萊的 Andrew Gardiner。

I just had one high level one. So regarding your level of visibility at the moment, and if we could perhaps contrast it to this time 3 months ago. At that time, back in April, you talked about pushing back on your customers in terms of scrubbing the orders, scrubbing the backlog to make sure that it was reasonable given the kind of end demand that we are all seeing. How do you feel about that at the moment? How is the order book? Are those good orders? Are you worried about double ordering? There has been some talk about inventory being built by one of your closest peers within the supply chain, given fears over further disruption due to the pandemic. Just sort of how can you -- yes, give us a bit more detail in terms of the level of visibility you have into the back half at this point.

我只有一個高水平的。因此，關於您目前的知名度，以及我們是否可以將其與 3 個月前的這個時間進行對比。那時，早在 4 月，您談到在清理訂單、清理積壓訂單以確保考慮到我們都看到的最終需求是合理的。你現在對此有何感想？訂單簿如何？這些是好命令嗎？您是否擔心重複訂購？鑑於擔心大流行會導致進一步的中斷，有人談論過供應鏈中最親密的同行之一正在建立庫存。只是你怎麼能 - 是的，在這一點上你對後半部分的可見性水平給我們更多細節。

So I will take it and Marco Cassis will complement. Now yes, okay, we confirm the situation entering in Q3. It's completely different the one entering in Q2. Well, in Q2, our, let's say, book-to-bill ratio has been well below 1 because impacted by the correction in automotive. And correction, okay, we have driven, okay? Yes, okay. We confirm that we have taken the initiative entering in Q2, okay, to discuss very closely with our customers, so the Tier 1, and really to clean the backlog and to align the backlog, okay, with the consumption of products they have from consignment stock. So entering Q3, the backlog is clean for all the verticals we address. So automotive industry, all personal electronics and communication infrastructure too and computer peripheral. But saying that, okay, we have a solid visibility of the backlog in Q3.

所以我會接受它，而 Marco Cassis 會補充。現在是的，好的，我們確認進入第三季度的情況。這與進入第二季度的完全不同。好吧，在第二季度，我們的訂單出貨比遠低於 1，因為受到汽車行業調整的影響。更正，好吧，我們已經開車了，好嗎？是的，好的。我們確認我們已經主動進入第二季度，好吧，與我們的客戶非常密切地討論，所以第 1 層，真正清理積壓並將積壓與他們從寄售產品的消費情況保持一致股票。所以進入第三季度，我們處理的所有垂直行業的積壓工作都是乾淨的。汽車行業、所有個人電子產品和通信基礎設施以及計算機外圍設備也是如此。但話雖如此，好吧，我們對第三季度的積壓工作有了明確的了解。

Again, I made the comments about the POS, okay, growing sequentially and now on the year-over-year in Asia. Well, yes, okay, we see Europe and America still weak. But all the data point, okay, usual data point we have in our end, which are, again, the backlog, the POS, okay, now are really clean. The inventory level and distribution in Asia is clean, okay? There is no other inventory. We start also some signs of positive on Analog and on Power Discrete on top of microcontroller and MEMS. So we are very confident, okay, in the visibility we have. Then again, okay, top 10 customer are an important part of our business. Here, okay, we have a very close intimacy on the supply chain and we have the adequate visibility. All together between the backlog and the customer intimacy, okay, make us confident on the guidance we provided for Q2.

再次，我對 POS 發表了評論，好吧，在亞洲連續增長，現在在同比增長。嗯，是的，好吧，我們看到歐洲和美國仍然很弱。但是所有的數據點，好吧，我們最終擁有的通常數據點，再次，積壓，POS，好吧，現在真的很乾淨。亞洲的庫存水平和分佈很乾淨，好嗎？沒有其他庫存。我們還開始在微控制器和 MEMS 之上的 Analog 和 Power Discrete 有一些積極的跡象。所以我們對我們的知名度非常有信心。再說一次，好的，前 10 名客戶是我們業務的重要組成部分。在這裡，好吧，我們在供應鏈上的關係非常密切，我們有足夠的知名度。積壓和客戶親密關係之間的所有因素，好吧，讓我們對我們為第二季度提供的指導充滿信心。

Yes, Jean-Marc. And let me just add a little bit of information. In April, our sales and operating plan was based on visibility for the full year of some, the market that we serve, that was going to be between minus 5% and minus 13%. Now we have updated and upgraded our view to a sum that will be between minus 5% to minus 7%, in line with all the indicators that we are getting from our key customers and the evolution, as Jean-Marc has already said, of our POS and POP through distribution. Again, distribution is key because one market that we are focusing on in our strategy is clearly the industrial market, and this market is extremely fragmented. So the performance of the distribution channel there is a very good indicator of how things are evolving.

是的，讓-馬克。讓我補充一點信息。 4 月，我們的銷售和運營計劃是基於我們所服務的一些市場全年的可見度，這將在負 5% 到負 13% 之間。現在，我們已經更新併升級了我們的觀點，總和將在負 5% 到負 7% 之間，這與我們從主要客戶那裡獲得的所有指標以及正如 Jean-Marc 已經說過的演變一致我們的 POS 和 POP 通過分銷。同樣，分銷是關鍵，因為我們在戰略中關注的一個市場顯然是工業市場，而這個市場非常分散。所以分銷渠道的表現有一個很好的指標，可以說明事情是如何發展的。

Clearly, industrial is still mixed. We have applications that are still suffering like we said before, like lightning and home appliances, but we saw a good improvement and recovery coming from other applications that are extremely important for ST, like renewable energy and the factory automation. So there again, China is leading the back because, as you know very well, in terms of timing, China was hit first. So the main impact was in Q2 -- in Q2 -- in Q1, sorry. In Q2, there is a very good recovery, sequentially strong and also year-over-year in terms of POS. And again, underlying that the stock level is absolutely under control. Thank you.

顯然，工業仍然喜憂參半。正如我們之前所說，我們的應用仍在遭受痛苦，例如閃電和家用電器，但我們看到其他對 ST 極為重要的應用（例如可再生能源和工廠自動化）取得了良好的改善和恢復。因此，中國再次領先，因為如您所知，就時間而言，中國首先受到打擊。所以主要影響是在第二季度——在第二季度——在第一季度，抱歉。在第二季度，POS 出現了非常好的複蘇，連續強勁並且同比增長。再一次，庫存水平完全在控制之下。謝謝你。

The next question comes from Matt Ramsay from Cowen.

下一個問題來自 Cowen 的 Matt Ramsay。

I wanted to dig into the ADG business a bit because there's been some moving parts in the last couple of quarters with the manufacturing challenges in discretes in Q1 and then maybe those recovering in the second quarter with the auto business being down pretty dramatically in Q2. Maybe you could break that business down a little bit and let us know what your expectations are for those 2 segments of that piece of the business into the third quarter. And then if you have any comments, I think Texas Instruments talked about the other night, the month of May, in particular, being the bottom for their automotive business that they saw down, I think, 40% in the quarter. Are you seeing those same trends?

我想深入研究一下 ADG 業務，因為在過去的幾個季度中出現了一些變化，第一季度分立器件的製造挑戰，然後可能在第二季度復甦，第二季度汽車業務大幅下滑。也許您可以稍微分解一下該業務，讓我們知道您對第三季度該業務的這兩個部分的期望是什麼。然後，如果您有任何意見，我認為德州儀器 (Texas Instruments) 曾在前一天晚上（特別是 5 月份）談到了他們汽車業務的底部，我認為該季度下降了 40%。您是否看到了同樣的趨勢？

Maybe I'll start to answer again, and Marco will complement. Now it is clear that in Q2, for ADG, we have, let's say, different dynamics. Well, first, Power Discrete recovered very, very strongly, first, because of the free of supply chain constraints related to the, let's say, labor workforce in the various plants where we have been impacted. And the main one was the closure of Shenzhen definitively and limited workforce attendance in [Muar] and in [Bouskoura], impacting strongly Q1.

也許我會重新開始回答，Marco 會補充。現在很明顯，在第二季度，對於 ADG，我們有不同的動態。嗯，首先，Power Discrete 恢復得非常非常強勁，首先，因為沒有與我們受到影響的各個工廠的勞動力相關的供應鏈限制。主要的原因是深圳的最終關閉以及[麻坡]和[Bouskoura]的勞動力出勤率有限，對第一季度產生了強烈影響。

Q2 was free of, let's say, this shortage of capacity linked with the COVID-19. So first effect, overall, okay, power discrete recovered strongly in Q2 with the supply chain coming back to normal operations. But then again, inside Power Discrete, we have, let's say -- you know that now we are very wide in the portfolio, okay, from a high-voltage PowerMOS, low-voltage PowerMOS, IGBT, silicon carbide MOSFET, and okay, some discrete, okay. And discrete, we have, okay, some, let's say, integrated passive and active delight addressing, okay, the ARS part on personal electronics. Now all this mix of product, okay, the dynamic was very positive. And for various reason, but more silicon carbide, I guess you know it's because of electrification of the car, IGBT as well, low-voltage PowerMOS as well for 48-volt application. So makes, okay, Power Discrete, okay, really strong in Q2 versus Q1. And this dynamic, okay, will continue in Q3.

可以說，第二季度沒有與 COVID-19 相關的容量短缺。因此，總體而言，第一個效果是，隨著供應鏈恢復正常運營，電源離散在第二季度強勁復甦。但話又說回來，在 Power Discrete 內部，我們有，比方說 - 你知道，現在我們的產品組合非常廣泛，好吧，從高壓 PowerMOS、低壓 PowerMOS、IGBT、碳化矽 MOSFET，好吧，一些離散的，好吧。離散的，我們有，好吧，比方說，集成被動和主動快樂尋址，好吧，個人電子產品的ARS部分。現在所有這些產品組合，好的，動態非常積極。並且由於各種原因，但更多的是碳化矽，我想你知道這是因為汽車的電氣化，還有 IGBT，低壓 PowerMOS 以及 48 伏應用。所以，好吧，Power Discrete，好吧，在第二季度與第一季度相比非常強勁。這種動態，好吧，將在第三季度繼續。

Well, about automotive, well, clearly, automotive for ST, what was running well is ADAS with the partnership we have with Mobileye, okay, which really show, let's say, a very good dynamic in Q2 and will continue in Q3.

好吧，關於汽車，好吧，很明顯，ST 的汽車，運行良好的是 ADAS 以及我們與 Mobileye 的合作夥伴關係，好吧，這確實表明，可以說，第二季度的動態非常好，並將在第三季度繼續。

Well, about legacy automotive, the pure legacy automotive means application-specific ICs, okay, analog or, let's say, microcontroller for legacy automotive. But definitively, okay, Q2 has been, let's say, a very challenging quarter. We took the initiatives, as I have said, to push our customer to clean their portfolio in order to be sure that in Q2, we will not build at their level, okay, inventory and our inventory in consignment stock. Well, and as a matter of the result, we have a very strong decrease in legacy automotive Q2 over Q1 above 20%.

好吧，關於傳統汽車，純粹的傳統汽車意味著特定於應用的 IC，好吧，模擬或者，比如說，用於傳統汽車的微控制器。但可以肯定的是，可以說，第二季度是一個非常具有挑戰性的季度。正如我所說，我們採取了措施來推動我們的客戶清理他們的投資組合，以確保在第二季度，我們不會在他們的水平上建立庫存和寄售庫存。好吧，作為結果，我們第二季度的傳統汽車銷量比第一季度大幅下降超過 20%。

Now what we have seen in term of dynamic, late June and early July, okay, the run rate of consumption from the consignment stock, okay, is starting to rise up. And in Q3, I can confirm to you that, including the legacy automotive, we will see a growth sequential. Means we confirm and I confirm in my address that we are convinced that Q2 is a bottom, okay, of legacy automotive, and we will start to see, okay, market recovery, Q3, and most likely acceleration after the summer period because you know that, generally speaking, okay, mainly in Europe, okay, the carmaker and then Tier 1 are closing for vacation period their plant. And we will certainly see, okay, an acceleration in September and Q4 onward.

現在我們看到的動態，6月底和7月初，好吧，寄售庫存的消費運行率，好吧，開始上升。在第三季度，我可以向您確認，包括傳統汽車在內，我們將看到連續增長。意味著我們確認，我在我的講話中確認，我們確信第二季度是傳統汽車的底部，好吧，我們將開始看到，好吧，市場復甦，第三季度，並且很可能在夏季之後加速，因為你知道一般來說，好吧，主要是在歐洲，好吧，這家汽車製造商和 Tier 1 都在休假期間關閉他們的工廠。我們肯定會在 9 月和第 4 季度看到加速增長。

So this is the color I can give to you, and Marco can complement it.

所以這是我可以給你的顏色，Marco 可以補充它。

Yes. I will just complement with some extra data point. As you have underlined, clearly during Q2, the automotive market was badly hit. But let's not forget, this was linked with the closures of carmakers and Tiers 1. So mechanically, it was impossible to have production. And also that demand was strongly hit by the fact that mobility of people was extremely low. It's also true, by the way, that during Q2, we saw different dynamics in China. China like went out of the coronavirus situation during Q1. And in Q2, as you know very well, the demand in terms of cars in China has rebounded more or less with this shift. So again, Q2 due to these dynamics is surely the bottom. And from Q3, as Jean-Marc say, we start seeing a recovery.

是的。我將補充一些額外的數據點。正如您所強調的，很明顯，在第二季度，汽車市場受到了嚴重打擊。但我們不要忘記，這與汽車製造商和 Tier 1 的關閉有關。所以從機械上講，不可能生產。而且這種需求也受到人員流動性極低的強烈打擊。順便說一句，在第二季度，我們在中國看到了不同的動態，這也是事實。中國就像在第一季度擺脫了冠狀病毒的情況。眾所周知，在第二季度，中國的汽車需求在這種轉變下或多或少地出現了反彈。因此，由於這些動態，第二季度肯定是底部。正如 Jean-Marc 所說，從第三季度開始，我們開始看到復蘇。

Let me underline also that we expect to see benefits coming from the incentives that the various governments are putting in place, for example, in France and in South Korea. And important to underline another point is that we don't see any substantial slowdown of the customers' activity for what is related with our longer market trends and what is for ST's strategic -- other strategic growth drivers in smart mobility, which are related to electrification and digitalization. So again, Q2 was the bottom. And from Q3, we start seeing in the recovery.

我還要強調一下，我們希望看到各國政府正在實施的激勵措施帶來的好處，例如在法國和韓國。重要的是要強調另一點，我們認為與我們的長期市場趨勢和意法半導體的戰略相關的客戶活動沒有任何實質性放緩——智能移動領域的其他戰略增長驅動因素，與電氣化和數字化。再次，第二季度是底部。從第三季度開始，我們開始看到復蘇。

The next question comes from Janardan Menon from Liberum.

下一個問題來自 Liberum 的 Janardan Menon。

I just wanted to examine the medium-term target of $12 billion of revenue that you've talked about previously and given the stronger-than-expected trends that you're currently seeing through the second half of the year. What your thoughts are on that right now? Can we assume that you still have a fairly unchanged time horizon for meeting that compared to your previous comments, including your Capital Markets Day last year? Or has there been any shift in it? I think you had referred to a possibility of meeting that on an annualized run rate basis by the second half of '21. Would that be still a possibility?

我只是想檢查一下您之前談到的 120 億美元收入的中期目標，並考慮到您目前在下半年看到的強於預期的趨勢。你現在對此有什麼想法？我們是否可以假設與您之前的評論（包括您去年的資本市場日）相比，您的會議時間範圍仍然相當大？或者它有什麼變化？我認為你提到了在 21 年下半年以年化運行率實現這一目標的可能性。那還有可能嗎？

And secondly, on your general purpose Microcontroller business, the MDG revenue was -- has grown at 24.1%. And I would assume that a lot of that is from the general purpose of Microcontrollers. So clearly, that is doing at least close to the mid-20s of growth rate. Is that a market growth rate in your estimation? How much of that would be market share gains? And where -- what kind of applications do you think is driving this most predominantly?

其次，在您的通用微控制器業務中，MDG 收入增長了 24.1%。我會假設其中很多來自微控制器的通用目的。很明顯，這至少接近 20 年代中期的增長率。這是您估計的市場增長率嗎？其中有多少是市場份額的增長？在哪裡 - 您認為哪種應用程序主要推動了這一點？

Well, so I will answer the first question and start to answer the second, and Marco will complement. Now about the $12 billion, well, it is clearly our target, okay, the management target, okay, of our next 3-year sales and operating plan we are working on because you see the exercise, okay, we rework and update every year. Now about this timing, when it will be achieved inside the 3-year, now I guess, okay, you will share with me that it deserve a bit some assessment and analysis now to, let's say, better understand the implications of the legacy automotive market and when the production of light vehicle, okay, will come back to the 2019 level and as well to understand the implication related to the U.S.A.-China trade war. But again, I confirm, okay, yes, $12 billion, okay, will be achieved, okay, within the next 3 years.

好吧，所以我將回答第一個問題並開始回答第二個問題，Marco 將補充。現在大約 120 億美元，好吧，這顯然是我們的目標，好吧，管理目標，好吧，我們正在製定的下一個 3 年銷售和運營計劃，因為你看到了練習，好吧，我們每年都會重新工作和更新.現在關於這個時間點，什麼時候將在 3 年內實現，現在我想，好吧，你將與我分享，現在應該進行一些評估和分析，以便更好地理解傳統汽車的影響市場和輕型汽車的生產何時會回到 2019 年的水平，以及了解與美中貿易戰相關的影響。但我再次確認，好的，是的，120 億美元，好的，將在未來 3 年內實現，好的。

About microcontroller, clearly, microcontroller growth is not only general purpose. It's also a secure microcontroller, both with automotive and secure solution within ST. With microcontroller, it is as well both 32-bit and 8-bit. And also I would like to highlight and again and recall you, because this is something we shared with you during the various communication we have all together, that last year, we introduced, okay, 10 new products. And from, let's say, ultra-low power microcontroller, well suitable for IoT kind of consumer application and high performance, let's say, microcontroller, well suitable for industrial application.

關於微控制器，顯然，微控制器的增長不僅僅是通用的。它也是一個安全的微控制器，在 ST 內部具有汽車和安全解決方案。對於微控制器，它也是 32 位和 8 位的。我還想再次強調和回憶你，因為這是我們在我們一起進行的各種溝通中與你分享的東西，去年，我們推出了 10 款新產品。比方說，超低功耗微控制器，非常適合物聯網消費類應用和高性能，比方說，微控制器，非常適合工業應用。

Now on top of that, okay, we are continuously improving the ecosystem around the microcontroller. So between new product introduction, let's say, the ecosystem, our supply chain, okay, because, also, microcontroller are using 50-50, okay, internal manufacturing of ST and external, let's say, well-known important family. Our selection has been very strong, okay, also during this period. So I repeat that, ourselves, we never closed any wafer fab. And our partner, our foundry, never closed any wafer fab. We have been successful to manage as well as the OSAT and our internal assembly and test.

現在最重要的是，好吧，我們正在不斷改進圍繞微控制器的生態系統。所以在新產品推出之間，比方說，生態系統，我們的供應鏈，好吧，因為，同樣，微控制器正在使用 50-50，好吧，ST 的內部製造和外部的，比方說，知名的重要家族。我們的選擇一直很強大，好吧，也是在這個時期。所以我重複一遍，我們自己，我們從未關閉任何晶圓廠。我們的合作夥伴，我們的代工廠，從未關閉任何晶圓廠。我們已經成功地管理了 OSAT 以及我們的內部組裝和測試。

So all in all, okay, this is the reason why, okay, we are growing on microcontroller, which is, let's say, the add-on of new product introduction. Inventory clean and distribution channel, very good recovery in 8-bit and a very strong supply chain, which go through this pandemic outbreak challenges without any disruption. So this is all the enabler making ourselves growing at this level and having this leadership position.

所以總而言之，好吧，這就是為什麼，好吧，我們在微控制器上發展的原因，比如說，新產品引入的附加組件。庫存清潔和分銷渠道，非常好的 8 位恢復和非常強大的供應鏈，它們在沒有任何中斷的情況下度過了這次流行病爆發的挑戰。因此，這就是使我們在這個水平上成長並擁有這個領導地位的所有推動因素。

So maybe, Marco, you want to add something?

所以也許，Marco，你想添加一些東西？

Yes. So just to reprice trades to one of your point, yes, we have gained market share and in our microcontrollers. And this is, as Jean-Marc was saying, mainly linked with the fact that we have transformed the funnel of opportunities that we have created during the last year, et cetera, with the new family of microcontrollers. And we are leveraging on our leadership position in microcontrollers, which means our reach of customer, small customer and big customer through the distribution channel, it's clearly helping us to gain ground in the microcontroller domain.

是的。因此，只是為了將交易重新定價到您的觀點之一，是的，我們已經獲得了市場份額和我們的微控制器。正如 Jean-Marc 所說，這主要與我們通過新的微控制器系列改變了我們在去年等期間創造的機會漏斗這一事實有關。我們正在利用我們在微控制器領域的領先地位，這意味著我們通過分銷渠道接觸到客戶、小客戶和大客戶，這顯然有助於我們在微控制器領域取得進展。

The next question comes from Jerome Ramel from Exane BNP Paribas.

下一個問題來自 Exane BNP Paribas 的 Jerome Ramel。

Two quick one. The first one, how should we model the OpEx for the coming quarter?

二快一。第一個，我們應該如何為下一季度的 OpEx 建模？

And second question, Jean-Marc, you mentioned a time-of-flight for wall spacing. Could you elaborate a little bit? When is the timing of its ramp-up? Is it a direct or indirect time of flight?

第二個問題，Jean-Marc，你提到了牆間距的飛行時間。你能詳細說明一下嗎？它的加速時間是什麼時候？是直接飛行時間還是間接飛行時間？

Yes. Thank you, Ramel. So Lorenzo will take the first question, and I will take the second.

是的。謝謝你，拉梅爾。所以洛倫佐會回答第一個問題，我會回答第二個問題。

Sure. I will take expenses and how to model the expenses for next quarter and the following one because, at the end, at this stage, you see that, on Q2, our expenses -- and when I talk about expenses, I always include also the line other income and expenses. Overall, so net expenses came at $620 million. This $620 million was a little bit better than the expectation entering the quarter, if you remember. And this was mainly driven by the fact that, of course, the lockdown plays a little bit in favor to have lower expenses with a significant reduction in traveling and some reduction also in discretionary expenses.

當然。我將考慮費用以及如何為下一季度和下一個季度的費用建模，因為在最後，在這個階段，你會看到，在第二季度，我們的費用——當我談到費用時，我總是包括列其他收入和支出。總體而言，淨支出為 6.2 億美元。如果您還記得的話，這 6.2 億美元比進入本季度的預期要好一些。這主要是由於這樣一個事實，當然，封鎖在一定程度上有利於降低開支，顯著減少旅行，也減少一些可自由支配的開支。

Moving inside the third quarter, my expectation is that expenses will be more in a range that is our average range -- quarterly average range for the year that I still confirm in the range of $635 million to $645 million per quarter. So it means that there will be some increase in expenses moving from Q2 to Q3. I do expect that we'll be more or less at the midpoint of this range what I was mentioning, while confirming the total -- this range for the full year. For the full year, if you take our expenses in the full year and you divide it by 4, our average should be there, between $635 million to $640 million per quarter. So this is confirmed, notwithstanding some acquisition that we are doing. So it means that we do not expect that this will increase our level of expenses.

進入第三季度，我的預期是支出將更多地在我們的平均範圍內——我仍然確認的年度季度平均範圍在每季度 6.35 億美元到 6.45 億美元之間。因此，這意味著從第二季度到第三季度的費用將會有所增加。我確實希望我們或多或少處於我所提到的這個範圍的中點，同時確認總數——這個範圍是全年的。對於全年，如果您將全年的費用除以 4，我們的平均值應該在每季度 6.35 億美元到 6.4 億美元之間。因此，儘管我們正在進行一些收購，但這一點得到了證實。因此，這意味著我們預計這不會增加我們的支出水平。

Well, about -- we have started production, so -- because this device will be introduced on a new flagship. So in order to be ready with the supply chain when the flagship will be introduced in the market, okay, we have started the production now. I can mention it is addressing the [unrolling front]. And it is based on our, let's say, multi-pixel still direct time-of-flight technology, what we call our SPAD technology, so single-photon avalanche diodes. And I already mentioned in the past that it can address, okay, world real-facing application. And here, you know that on this world real-facing application, you will have, okay, both technologies with, of course, different features. So multi-zone and multi-pixel direct time of flight, and you will have as well indirect time of flight. So this is what I can disclose, Jerome, at this moment.

好吧，關於 - 我們已經開始生產，所以 - 因為這個設備將被引入一個新的旗艦。所以為了在旗艦上市時做好供應鏈的準備，好吧，我們現在已經開始生產了。我可以提到它正在解決[展開前線]。它基於我們的多像素直接飛行時間技術，我們稱之為 SPAD 技術，即單光子雪崩二極管。我在過去已經提到它可以解決面向世界的應用程序。在這裡，您知道在這個面向現實的應用程序中，您將擁有兩種技術，當然，這兩種技術具有不同的功能。因此，多區域和多像素直接飛行時間，您將擁有間接飛行時間。所以這就是我現在可以透露的，杰羅姆。

The next question comes from Sébastien Sztabowicz from Kepler Cheuvreux.

下一個問題來自 Kepler Cheuvreux 的 Sébastien Sztabowicz。

On your full year guidance, slightly declining over the full year, where do you see the 3 divisions evolving over the full year? Which one are likely to outperform and underperform your main target?

在您的全年指導中，全年略有下降，您認為 3 個部門在全年中的發展方向是什麼？哪一個可能會跑贏和跑輸您的主要目標？

And coming back on silicon carbides, can you help us understand what was the level of revenue you have already generated in the first part of the year? And what is your view or your updated target for the full year? Do you think there is still a chance to come closer to $300 million of revenue? Or it is a bit too optimistic taking into account the slow start of Q1 in silicon carbide?

回到碳化矽，您能否幫助我們了解您在今年上半年已經產生的收入水平是多少？您對全年的看法或更新目標是什麼？你認為還有機會接近 3 億美元的收入嗎？還是考慮到碳化矽Q1起步緩慢，有點過於樂觀了？

So I take the question, and again, my colleagues, okay, will complement. On our silicon carbide, you remember in April during our meeting conversation, unfortunately, what we have lost in Shenzhen, okay, cannot be recovered. This is the point. But here, okay, while this is not something we will update regularly because it is not, let's say, a very regular KPI we monitor, but if you remember well, I share, okay, with you, okay, last quarter that we assessed to have a PVO between 2020 to 2024 of about $2.8 billion on silicon carbide, well shared between automotive and industrial. Now with the design win we have during Q2, now, okay, we assess this PVO to be above $3 billion, which is showing our dynamic. But for this year, unfortunately, what we lost in Q1 are definitively lost.

所以我接受這個問題，我的同事們，好吧，我會補充。關於我們的碳化矽，大家還記得四月份我們開會時的談話，不幸的是，我們在深圳失去的，好吧，無法挽回。這就是重點。但是在這裡，好吧，雖然這不是我們會定期更新的內容，因為它不是我們監控的非常常規的 KPI，但如果你記得清楚，我會和你分享，好吧，好吧，我們評估的上個季度在 2020 年至 2024 年期間，碳化矽的 PVO 約為 28 億美元，汽車和工業之間共享良好。現在有了我們在第二季度獲得的設計勝利，現在，好吧，我們評估這個 PVO 超過 30 億美元，這顯示了我們的動態。但不幸的是，今年我們在第一季度失去的東西肯定會失去。

Then about the full year, Lorenzo can disclose the...

然後大約全年，洛倫佐可以透露......

Maybe I can take your question. When we look at full year and I refer in term of the revenue what is the midpoint of our indication that is in the range of $9.45 billion, how is the dynamic between the 3 segments? Well, there are 2 segments that will increase. One is MDG. MDG will increase revenue on the -- in the range of the high single digit, and this is mainly driven by our microcontrollers, both general purpose and secure. We see also growth in AMS. In AMS, we have a growth that will be in the range of low single digit, and this will be driven by imaging and analog.

也許我可以回答你的問題。當我們看全年時，我指的是收入的中點是什麼，在 94.5 億美元的範圍內，這三個部分之間的動態如何？嗯，有 2 個部分會增加。一是千年發展目標。 MDG 將在高個位數範圍內增加收入，這主要是由我們的通用和安全微控制器驅動的。我們還看到了 AMS 的增長。在 AMS 中，我們的增長將在低個位數範圍內，這將由成像和模擬驅動。

Why we see declining revenues in ADG? ADG will be definitely impacted by the situation of the market in automotive, even if there will be a recovery in the second part of the year in respect to the first part of the year. Still looking at the overall year, we will have a decrease, and this decrease will be in the range of the low teens. Overall, the company will be in the range of minus 1, 1 or 2 is our, let's say, indication for this.

為什麼我們看到 ADG 的收入下降？ ADG肯定會受到汽車市場形勢的影響，即使今年下半年相對於上半年會有所回升。還是從全年來看，我們會有所減少，而且這種減少會在低十幾歲的範圍內。總體而言，該公司將在負 1、1 或 2 的範圍內是我們的指標，可以說是這方面的指標。

We are running short of time now. We have time for 1 or 2 more questions, 2 more questions, if you don't mind. As usual, for the ones that have other question, Investor Relations team is ready to answer separately after this call, and do not hesitate to reach out.

我們現在時間不多了。如果您不介意，我們還有時間再回答 1 或 2 個問題，再回答 2 個問題。像往常一樣，對於有其他問題的人，投資者關係團隊準備在此電話後單獨回答，請隨時與我們聯繫。

The next question comes from Gianmarco Bonacina from Equita.

下一個問題來自 Equita 的 Gianmarco Bonacina。

Just a clarification on the gross margin for the full year. In the previous call, you mentioned the range of 35% to 37%. Now clearly, the midpoint of your sales range for the full year has increased. So shall we think for the full year gross margin closer to the 37%?

只是對全年毛利率的澄清。在之前的電話會議中，您提到了 35% 到 37% 的範圍。現在很明顯，您全年銷售範圍的中點已經增加。那麼我們是否應該認為全年毛利率接近 37%？

Well, at this stage, as we said, the gross margin that we see today with this second half impacted by an average of 200 basis points of unloading charges in both quarter, Q3 and Q4. As I said, the gross margin, we see something in a range between 36% to slightly above 37%. So of course, it will depend on the level of revenues that we will achieve. In term of unsaturation, in term of production plan, it will not change dramatically because, of course, our lead time in order to fill our fab will not be -- is such that, of course, the degree of freedom that we have in order to modulate that production is not so big. So we -- our expectation is to be between really 36% and slightly above 37% at the highest level of our revenues.

好吧，正如我們所說，在這個階段，我們今天看到的下半年的毛利率受到第三季度和第四季度平均 200 個基點的卸貨費用的影響。正如我所說，毛利率在 36% 到略高於 37% 之間。因此，當然，這將取決於我們將實現的收入水平。就不飽和度而言，就生產計劃而言，它不會發生顯著變化，因為當然，我們為填充我們的晶圓廠的交貨時間不會——當然，我們擁有的自由度為了調節生產不是那麼大。所以我們 - 我們的預期是在我們收入的最高水平上，真正介於 36% 和略高於 37% 之間。

Okay, for the full year?

好的，一整年？

For the full year, yes, of course.

全年，是的，當然。

So the last question now, please, Alessandro.

那麼現在最後一個問題，請亞歷山德羅。

The last question comes from David Mulholland from UBS.

最後一個問題來自瑞銀的大衛穆赫蘭。

I just wanted to follow-up on the far away situation. Obviously, you said there's a lot of business today that's standard products. There's no issue, but there is some that's custom. I just wondered, is that something that there's such engagement and level of custom to that? It just has to go away or is it something you can transition while still adhering to the rules to become a kind of standard product business with enough time to develop a more standard solution, if I can put it that way?

我只是想跟進遠處的情況。顯然，您說今天有很多業務是標準產品。沒有問題，但有一些是習慣的。我只是想知道，這是否有這樣的參與度和定制水平？它只是必須消失，還是您可以在仍然遵守規則的同時過渡成為一種標準產品業務，有足夠的時間來開發更標準的解決方案，如果我可以這樣說的話？

Now again, okay, we address this customer, okay, with various, let's say, operating model, okay, from custom design to application-specific and the general purpose device. There is no, let's say, order approach, again, than to be compliant with what will be confirmed because we were expected to have a clear detail and confirmation mid-July. That is still not the case. And I have, honestly, no other comment, okay, than the one I have done a few minutes ago, answering the question.

現在再一次，好的，我們向這個客戶講話，好的，有各種各樣的，比方說，操作模型，好的，從定制設計到特定應用和通用設備。再一次，比方說，沒有訂單方法，而不是遵守將要確認的內容，因為我們預計將在 7 月中旬有一個明確的細節和確認。仍然不是這樣。老實說，我沒有其他評論，好吧，除了我幾分鐘前回答這個問題時所做的評論。

Okay. So that will conclude our call. Thank you very much, everybody. Have a nice earnings season for every one of you that are engaged in that. And we speak at the next...

好的。這樣我們的通話就結束了。非常感謝大家。為每一位參與其中的人度過一個愉快的財報季。我們在下一個...

Capital Market Day.

資本市場日。

And even the Capital Market Day.

甚至是資本市場日。

Yes. And yes, I need remind you in the address, Jean-Marc has been talking about the various appointment we've put for the Capital Market Day. So the next one before our earnings, yes, thank you, is the one with Claude Dardanne to discuss MDG on the 15th of September. This will be our next event from an -- even if, again, it is virtual. So hopefully, this will be easier than to travel around the world to meet with us.

是的。是的，我需要在地址中提醒您，Jean-Marc 一直在談論我們為資本市場日所做的各種任命。所以在我們的收益之前的下一個，是的，謝謝你，是 9 月 15 日與 Claude Dardanne 討論千年發展目標的那個。這將是我們的下一個活動——即使它再次是虛擬的。因此，希望這比環遊世界與我們會面更容易。

Okay. Bye-bye. Thank you.

好的。再見。謝謝你。

Thank you.

謝謝你。

Thank you. Goodbye.

謝謝你。再見。

Ladies and gentlemen, the conference is now over. Thank you for choosing Chorus Call, and thank you for participating in the conference. You may now disconnect your lines. Goodbye.

女士們，先生們，會議到此結束。感謝您選擇 Chorus Call，感謝您參加會議。您現在可以斷開線路。再見。