意法半導體 (STM) 2017 Q3 法說會逐字稿

Ladies and gentlemen, good morning or good afternoon.

女士們先生們，早安或下午好。

Welcome to the STMicroelectronics Q3 2017 Earnings Results Conference Call and Live Webcast.

歡迎參加義法半導體 2017 年第三季財報電話會議及網路直播。

I am [Moira], the Chorus Call operator.

我是[莫伊拉]，合唱呼叫操作員。

(Operator Instructions) The conference must not be recorded for publication or broadcast.

（操作員說明）不得對會議進行錄音以供出版或廣播。

At this time, it's my pleasure to hand over to Mr. Tait Sorensen, Group Vice President, Investor Relations.

此時此刻，我很高興將工作交給負責投資人關係的集團副總裁 Tait Sorensen 先生。

Please go ahead, sir.

請繼續，先生。

Good morning.

早安.

Thank you everyone for joining our third quarter and first 9 months 2017 financial results conference call.

感謝大家參加我們的 2017 年第三季和前 9 個月財務業績電話會議。

Hosting the call today is Carlo Bozotti, ST's President and Chief Executive Officer.

今天主持電話會議的是 ST 總裁兼執行長 Carlo Bozotti。

Joining Carlo on the call today are Jean-Marc Chery, Deputy CEO; Carlo Ferro, Chief Financial Officer; Georges Penalver, Chief Strategy Officer.

今天與 Carlo 一起參加電話會議的還有副執行長 Jean-Marc Chery；卡洛費羅，財務長；喬治‧佩納爾弗，首席策略長。

This live webcast can be accessed through ST's website.

此網路直播可透過 ST 網站觀看。

A replay will be available shortly after the conclusion of this call.

本次電話會議結束後不久將進行重播。

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.

這次電話會議將包括前瞻性陳述，這些陳述涉及可能導致 ST 的業績與管理層的預期和計劃存在重大差異的風險因素。

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.

我們鼓勵您查看今天早上發布的結果新聞稿中包含的安全港聲明以及 ST 最新的監管文件中包含的安全港聲明，以獲取對這些風險因素的完整描述。

Also to ensure all participants have an opportunity to ask questions during the Q&A session, please limit yourself to 1 question and a brief follow up.

另外，為了確保所有參與者都有機會在問答環節提問，請將自己的問題限制在 1 個以內並進行簡短的跟進。

I'd now like to turn the call over to Carlo Bozotti, ST's President and CEO.

我現在想將電話轉給 ST 總裁兼執行長 Carlo Bozotti。

Carlo?

卡洛？

Well, thank you Tait and thank you for joining us on our third quarter earnings conference call.

好吧，謝謝泰特，也感謝您參加我們的第三季財報電話會議。

Our agenda today includes an overview of our results followed by a more detailed discussion by product group and then we will finish with a fourth quarter outlook and full-year perspective.

我們今天的議程包括對結果的概述，然後是產品組更詳細的討論，最後我們將提出第四季度展望和全年展望。

ST achieved a number of important milestones in the third quarter.

ST在第三季實現了許多重要的里程碑。

Our transformation is progressing with visible results driven by our strong focus on high-growth application areas such as the Internet of Things, industrial, smartphones and smart driving.

在我們對物聯網、工業、智慧型手機和智慧駕駛等高成長應用領域的大力關注的推動下，我們的轉型正在取得明顯成效。

Sales in the third quarter were $2.14 billion, driven by a portfolio with multiple drivers of sustainable revenue growth.

第三季的銷售額為 21.4 億美元，得益於可持續收入成長的多重驅動力的投資組合。

Our revenue results came along with a strong improvement in our manufacturing performance bringing our gross margin to 39.5%.

我們的營收表現伴隨著製造業績效的強勁改善，使我們的毛利率達到 39.5%。

We saw a substantial improvement in the operating performance of all our product groups, resulting in an operating margin before impairment and restructuring of 13.7% for ST in total.

我們看到所有產品組的經營績效都有了大幅改善，導致ST的減損和重組前營業利潤率總計達到13.7%。

So let's look at the third quarter to understand how our company is performing and why we think our applications focus will enable ST to drive to quarter revenue and net income growth as well as shareholder value.

因此，讓我們看看第三季度，了解我們公司的表現如何，以及為什麼我們認為我們的應用重點將使 ST 能夠推動季度收入和淨利潤成長以及股東價值。

Beginning with our third quarter revenues, they increased 11.1% sequentially, a better than seasonal performance and 210 basis points better than the midpoint of our guidance with all product groups growing and with an important contribution coming from new products.

從第三季開始，他們的收入環比增長了 11.1%，優於季節性表現，比我們的指導中位數高出 210 個基點，所有產品組都在成長，並且新產品做出了重要貢獻。

All regions recorded a double-digit sequential revenue growth.

所有地區的收入均錄得兩位數的連續增長。

On a year-over-year basis, revenues increased 18.9% on double-digit growth for all product groups.

與去年同期相比，所有產品組的營收均達到兩位數成長，成長 18.9%。

Our customer base continues to be well balanced.

我們的客戶群持續保持平衡。

Distribution represented 34% of revenues in Q3 with a year-over-year point of sales growth of 12.2%.

分銷佔第三季營收的 34%，銷售點年增 12.2%。

For the first 9 months of 2017, total revenues increased 15% to $5.88 billion.

2017 年前 9 個月，總營收成長 15%，達到 58.8 億美元。

Manufacturing efficiencies and favorable product mix are the main drivers of our gross margin improvement.

製造效率和有利的產品組合是我們毛利率改善的主要驅動力。

Gross margin was 39.5% in the third quarter coming in 50 basis points above the midpoint of our guidance range and increasing 120 basis points sequentially.

第三季毛利率為 39.5%，比我們指引範圍的中點高出 50 個基點，比上一季增加 120 個基點。

The favorable factors were partially offset by normal price pressure and negative currency effects, net of hedging.

正常的價格壓力和負面貨幣影響（扣除對沖）部分抵消了有利因素。

On a year-over-year basis, gross margin increased 370 basis points on significantly improved manufacturing efficiency and better product mix as well as improved fab loading, partially offset by normal price pressure.

與去年同期相比，毛利率成長了 370 個基點，這得益於製造效率的顯著提高、產品組合的改善以及晶圓廠負荷的改善，但部分被正常的價格壓力所抵消。

In the third quarter, our operating income before impairment and the restructuring charges increased to $292 million and represented an operating margin of 13.7%.

第三季度，減損和重組費用前的營業收入增至 2.92 億美元，營業利益率為 13.7%。

Here we benefited from product and profit initiatives driving operating leverage, better product mix and manufacturing efficiencies.

在這裡，我們受益於推動營運槓桿、更好的產品組合和製造效率的產品和利潤計劃。

For the first 9 months, operating income before impairment and restructuring charges rose to $610 million or 10.4% of net revenues.

前 9 個月，減損和重組費用前的營業收入升至 6.1 億美元，佔淨收入的 10.4%。

Net income increased significantly in the third quarter to $236 million and year-to-date reached $494 million.

第三季淨利大幅成長，達 2.36 億美元，年初至今達 4.94 億美元。

Net capital expenditures were $365 million during the third quarter and $891 million year-to-date.

第三季淨資本支出為 3.65 億美元，年初至今為 8.91 億美元。

Our full-year CapEx plans are consistent with the targeted range of $1.25 billion to $1.3 billion that we highlighted last quarter.

我們的全年資本支出計畫與我們上季強調的 12.5 億美元至 13 億美元的目標範圍一致。

Free cash flow was $80 million in the third quarter and $194 million for the first 9 months, well above our cash dividend of $160 million year-to-date.

第三季的自由現金流為 8,000 萬美元，前 9 個月的自由現金流為 1.94 億美元，遠高於年初至今 1.6 億美元的現金股利。

Even after a more intensive level of capital expenditure, our net financial position was $446 million at the end of September.

即使在進行更密集的資本支出後，截至 9 月底我們的淨財務狀況仍為 4.46 億美元。

Overall liquidity increased to $2.62 billion, reflecting the $1.5 billion convertible bond offering we completed in July at an overall [zero] cost and with a structure friendly to our equity shareholders.

整體流動性增加至 26.2 億美元，反映出我們在 7 月以總體[零]成本完成的 15 億美元可轉換債券發行，並且結構對我們的股東友好。

During the third quarter, we also completed the early redemption of the full 2019 $600 million tranche of our convertible bonds issued in 2014.

第三季度，我們也完成了 2014 年發行的 2019 年全部 6 億美元可轉換債券的提前贖回。

In the fourth quarter, based on the notice of conversion already received by bondholders and the notice of redemption issued buy us, we will settle the full 2021 $400 million tranche of convertible bonds.

第四季度，根據債券持有人已收到的轉換通知和buy us發出的贖回通知，我們將全額結算2021年4億美元的可轉換債券。

So by the end of the year we will have completed the early redemption of the full $1 billion convertible bonds issued in 2014.

因此，到今年年底，我們將完成2014年發行的10億美元可轉換債券的全部提前贖回。

Adjusting for this redemption of the convertible bonds our pro forma liquidity exiting the third quarter was at about $2.2 billion after $457 million of dividend contribution and share buybacks in the year.

在對可轉換債券的贖回進行調整後，在今年貢獻了 4.57 億美元的股息和股票回購之後，我們第三季度退出的預計流動性約為 22 億美元。

Additionally, in Q3 we strengthened our financial flexibility by signing a new EUR 500 million credit facility with the European Investment Bank.

此外，在第三季度，我們與歐洲投資銀行簽署了一項新的 5 億歐元信貸安排，增強了我們的財務靈活性。

As a result, we have now over $1 billion of available undrawn credit facilities.

因此，我們現在擁有超過 10 億美元的可用未提取信貸額度。

Finally, we were pleased to re-enter the CAC 40 Index in September, demonstrating the progress we have made in the transformation of ST.

最後，我們很高興在9月重新進入CAC 40指數，展示了我們在ST轉型方面的進展。

Now let's move to a detailed review of our product groups beginning with automotive and discrete, ADG.

現在讓我們從汽車和離散產品組開始詳細回顧我們的產品組。

ADG revenues increased 2.6% sequentially and grew 10% in comparison with the year-ago quarter.

ADG 營收較上季成長 2.6%，與去年同期相比成長 10%。

ADG's operating income improved substantially on a sequential basis, up 30% driving ADG's operating margin to 10.9% in the third quarter from 8.6% in the second quarter.

ADG 的營業收入較上季大幅提高，成長了 30%，帶動 ADG 的營業利潤率從第二季的 8.6% 升至第三季的 10.9%。

For the first 9 months of 2017, ADG's revenues increased 6.8% compared to the year-ago period with stronger operating income growth of 19%, leading to an increase of its operating margin to 8.4%.

2017 年前 9 個月，ADG 的營收較去年同期成長 6.8%，營業收入增幅更強勁，達 19%，營業利潤率增至 8.4%。

Moving to ADG's product review, let's start with what we like to define greener driving and car electrification in particular.

轉向 ADG 的產品回顧，讓我們從我們喜歡定義的綠色駕駛和汽車電氣化開始。

This is a clear growth driver for our industry in the next few years with car electrification semiconductors growing more than 3x faster than the average semiconductor content in cars.

這是我們產業未來幾年的明顯成長動力，汽車電氣化半導體的成長速度比汽車中平均半導體含量快 3 倍以上。

During the third quarter, we ramped production of our silicon carbide MOSFET for the electrical inverters and we are delivering in line with our plans.

第三季度，我們提高了用於電氣逆變器的碳化矽 MOSFET 的產量，並且我們正在按照計劃交付。

We are also in the field test phase with a key European car maker for silicon carbide based traction application.

我們也與歐洲一家主要汽車製造商合作進行基於碳化矽的牽引應用的現場測試階段。

We had additional design wins for the new 1200 volt SiC diodes in electrical vehicles charger platforms from leading Chinese and American suppliers, as well as several design wins with SiC MOSFET for on-board charging.

我們還贏得了來自中國和美國領先供應商的電動車充電器平台中新型 1200 伏特 SiC 二極體的設計，以及用於車載充電的 SiC MOSFET 的多項設計。

In our focus on safer driving, we recorded wins in Japan for components in an ultrasonic-sensor interface application and a custom product for hydrostatic braking system.

在我們專注於更安全的駕駛方面，我們在日本贏得了超音波感測器介面應用組件和靜壓煞車系統客製化產品的勝利。

Our automotive microcontroller business continued to enjoy multiple wins and these included Body and Gateway applications at leading European and Chinese customers, as well as on-board charger applications and ignition systems at leading Japanese and European customers.

我們的汽車微控制器業務繼續獲得多項勝利，其中包括歐洲和中國領先客戶的車身和網關應用，以及日本和歐洲領先客戶的車載充電器應用和點火系統。

In infotainment, we landed sockets in a premium sound system with our Class AB and Class D amplifiers for a high-end car maker and won another socket for our Accordo 5 car infotainment platform for the Japanese market.

在資訊娛樂領域，我們為一家高端汽車製造商贏得了使用 AB 類和 D 類放大器的高級音響系統的插座，並為日本市場的 Accordo 5 汽車資訊娛樂平台贏得了另一個插座。

In our power discrete business outside automotive, we captured a socket in a game station for our latest generation of HDMI port interfaces at a market leader and we won an award for an intelligent power module from a leading Chinese air conditioner supplier.

在汽車以外的功率分立業務中，我們在市場領導者處獲得了遊戲機中最新一代 HDMI 連接埠介面的插座，並獲得了中國領先空調供應商的智慧功率模組獎。

We also enlarged our range of chip-scale package protection devices and landed design wins with leading phone makers around the globe.

我們還擴大了晶片級封裝保護裝置的範圍，並贏得了全球領先手機製造商的設計勝利。

Moving to our Analog and MEMS Group, AMG, revenues increased 4.2% on a sequential basis.

轉向我們的模擬和 MEMS 集團 AMG，營收季增 4.2%。

And year-over-year, AMG's revenues increased 24.8%.

AMG 的營收年增 24.8%。

On a sharp growth, both in Analog and in MEMS.

模擬和 MEMS 領域都在急劇增長。

AMG's operating income increased 30% on a sequential basis and almost 4x on a year-over-year basis.

AMG 的營業收入較上季成長 30%，較去年同期成長近 4 倍。

As a result, AMG's operating margin improved very substantially, increasing to 18.1% in the third quarter from 14.5% and 5.8% in the prior and year-ago quarter on multiple drivers, including better product mix, operating leverage and improved manufacturing performance.

因此，AMG 的營運利潤率大幅提高，在多個驅動因素的推動下，包括更好的產品組合、營運槓桿和改善的製造績效，第三季度的營運利潤率從上一季和去年同期的14.5 % 和5.8% 增至18.1%。

Year-to-date, AMG's revenues grew 24.3%, driving it's operating income to $206 million and operating margin to 14.4%.

年初至今，AMG 的營收成長了 24.3%，營業收入達到 2.06 億美元，營業利潤率達到 14.4%。

Moving to AMG's products.

轉向 AMG 的產品。

Our sensor business recorded a strong performance.

我們的感測器業務表現強勁。

A clear trend we see here is the adoption of our products in more and more automotive and industrial applications.

我們在這裡看到的一個明顯趨勢是我們的產品在越來越多的汽車和工業應用中採用。

This is an important element of AMG's diversification strategy in sensors.

這是AMG感測器多元化策略的重要組成部分。

And our ability to build highly accurate sensors, meeting the quality and longevity requirements in key -- in these areas is key to our success.

我們製造高精度感測器、滿足這些領域關鍵品質和壽命要求的能力是我們成功的關鍵。

But of course this quarter, there are also a number of highlights to be mentioned for our sensor portfolio, serving smartphone customers.

當然，本季我們為智慧型手機客戶提供服務的感測器產品組合也有許多亮點值得一提。

For example, the ramp of a 6-axis inertial measurement unit, an optical-image-stabilization gyroscope and a barometric sensor for the Samsung Note 8, and of a barometric pressure sensor for the new water resistant Samsung Gear Fit 2 Pro.

例如，三星 Note 8 的 6 軸慣性測量單元、光學影像穩定陀螺儀和氣壓感測器的坡道，以及新型防水三星 Gear Fit 2 Pro 的氣壓感測器的坡道。

Other successes in the smartphones included, multiple design wins and ramps with our touch screen controller and power management ICs for AMOLED displays.

智慧型手機領域的其他成功包括我們的觸控螢幕控制器和 AMOLED 顯示器電源管理 IC 的許多設計勝利和進步。

In smartphones and cities, we announced a modular programmable chipset that simplifies design and deployment of new smart meters, smart streetlamps and home and industrial controllers.

在智慧型手機和城市中，我們推出了模組化可編程晶片組，可簡化新型智慧電錶、智慧路燈以及家庭和工業控制器的設計和部署。

3 top smart-meter manufacturers are already designing solutions based on this new platform.

3家頂級智慧電錶製造商已經在設計基於這個新平台的解決方案。

Our product families targeting smart industry applications such as our STSPIN motor control family and our intelligent power switch solutions.

我們的產品系列針對智慧工業應用，例如 STSPIN 馬達控制系列和智慧電源開關解決方案。

So solid growth during the quarter across our broad high-end industrial customer base.

我們廣泛的高端工業客戶群在本季實現了穩健成長。

In the industrial market, we also had success with power conversion products such as our ViperPLUS family of high voltage AC/DC converters as well as switching regulators and DC/DC converters.

在工業市場，我們的電源轉換產品也取得了成功，例如 ViperPLUS 系列高壓 AC/DC 轉換器以及開關穩壓器和 DC/DC 轉換器。

In our general purpose analog business, our precision op amps were designed into products by a broad customer base for applications, including wearable, home and building automation.

在我們的通用類比業務中，我們的精密運算放大器被廣泛的客戶群設計成產品，用於穿戴式、家庭和建築自動化等應用。

We also introduced a software kit for Bluetooth Mesh Networking for connected smart-lighting and automation applications to support designs based on Bluetooth low energy solution.

我們還推出了用於連接智慧照明和自動化應用的藍牙網狀網路軟體套件，以支援基於藍牙低功耗解決方案的設計。

Now, let me share some highlights on our Microcontrollers and Digital ICs Group, MDG, which continued to deliver a strong performance.

現在，讓我分享我們的微控制器和數位 IC 集團 MDG 的一些亮點，該集團繼續表現強勁。

MDG's revenues increased 14.6% on a sequential basis and 19.4% year-over-year, led by our general purpose microcontrollers, which continued to post record quarterly sales results.

在通用微控制器的帶動下，MDG 的營收季增 14.6%，年增 19.4%，季度銷售業績持續創紀錄。

Digital sales also increased sequentially.

數位銷售額也環比成長。

MDG's operating income grew sharply on a sequential basis, driving its operating margin in Q3 to 17.9% from 11.6% in the second quarter.

MDG 的營業收入較上季大幅成長，使其營業利潤率從第二季的 11.6% 升至第三季的 17.9%。

For the first 9 months, MDG's revenues, operating profitability and operating margin were up substantially.

今年前 9 個月，MDG 的營收、營業利益和營業利益率均大幅成長。

Its net revenues grew 13.7% accompanied by an increase in its operating income of [$208 million], driving its year-to-date operating margin to [13.5%] from 2.9%.

其淨收入成長 13.7%，營業收入增加 [2.08 億美元]，推動其年初至今的營業利潤率從 2.9% 升至 [13.5%]。

These results reflect both a strong improvement in our microcontrollers operating performance and a significant turnaround in digital.

這些結果反映了我們的微控制器運行性能的強勁改進和數位化方面的顯著轉變。

Moving to MDG product highlights.

轉向 MDG 產品亮點。

Our general purpose STM32 microcontrollers, which are used across a very wide range of products and applications, reached a particularly notable record in terms of unit shipment.

我們的通用 STM32 微控制器用於廣​​泛的產品和應用，在單位出貨量方面達到了特別顯著的記錄。

A few of the STM32 design-wins include a solution for a next- generation home control, using LoRA radio connectivity with a key home automation OEM, fingerprint modules with a major PC OEM and a high-volume consumer application.

STM32 的一些設計成果包括下一代家庭控制解決方案，該解決方案使用 LoRA 無線電連接與主要家庭自動化 OEM、與主要 PC OEM 的指紋模組以及大批量消費應用。

We also earned design-wins in a number of shared connected bike models in China.

我們還在中國的多個共享互聯自行車模型中獲得了設計勝利。

Moving to security.

轉向安全。

We announced the integration of our contactless near-field communication technology with MediaTek's mobile platforms to help mobile OEMs overcome key technical challenges, such as antenna design and integration and bill-of-material optimization.

我們宣布將我們的非接觸式近場通訊技術與聯發科技的行動平台集成，以幫助行動原始設備製造商克服關鍵技術挑戰，例如天線設計和整合以及物料清單優化。

We started ramping the production of an automotive near-field communication reader for a key electric vehicle manufacturer and designed in a NFC reader for the first major roll out of a smart furniture with a key household name.

我們開始為一家主要電動車製造商提高汽車近場通訊讀取器的產量，並為首次大規模推出的家喻戶曉的智慧家具設計了 NFC 讀取器。

In our custom silicon business, we were awarded a digital ASIC design in 16-nanometer FinFET technology from a leading networking infrastructure solution provider and an optical IC design win for use in 100G and 200G web-scale datacenters.

在我們的客製化晶片業務中，我們獲得了領先網路基礎設施解決方案提供商提供的 16 奈米 FinFET 技術數位 ASIC 設計獎，以及用於 100G 和 200G 網路規模資料中心的光學 IC 設計獎。

We also began volume ramp of the RF-SOI technology into a new high-end smartphone from a Chinese manufacturer.

我們也開始將 RF-SOI 技術批量應用到中國製造商的新型高階智慧型手機。

Let's move now to our Imaging Product Division, which we report in others.

現在讓我們轉到我們的成像產品部門，我們在其他部門中對此進行了報告。

Imaging registered very strong sequential revenue growth, reflecting the initial ramp in wireless applications of ST's new program, including the company's Time-of-Flight and new specialized imaging technologies.

成像業務錄得非常強勁的連續收入成長，反映出意法半導體新計畫無線應用的初步成長，包括該公司的飛行時間和新的專業成像技術。

Other revenues more than doubled in the third quarter.

第三季其他收入成長了一倍以上。

From an operating performance perspective, others still recorded a loss of about $9 million, excluding impairment and restructuring mainly due to the start-up costs of our new program.

從經營業績來看，其他公司仍錄得約900萬美元的虧損，不包括減損和重組，主要是因為我們新專案的啟動成本。

However, in Q3 we saw an important first step of improvement with a 60% reduction of losses on a sequential basis.

然而，在第三季度，我們看到了重要的第一步改進，損失季減了 60%。

For the first 9 months, others revenues increased by 60% compared to the year-ago period accompanied by a substantial decrease in its operating loss.

前9個月，其他業務收入年增60%，營業虧損大幅減少。

Now let's move to our fourth quarter outlook.

現在讓我們展望第四季。

We expect to finish 2017 with strong revenue growth and further improvement in our overall operating profitability and net income.

我們預計 2017 年將實現強勁的收入成長以及整體營運獲利能力和淨利潤的進一步改善。

Demand continues to be healthy across our product groups and geographies and we expect the acceleration of growth for our new program serving wireless applications.

我們的產品組和地區的需求持續健康，我們預計服務於無線應用的新計劃將加速成長。

Therefore we anticipate fourth quarter revenues to increase about 10% at the midpoint on a sequential basis.

因此，我們預計第四季營收將環比中點成長約 10%。

Based upon our revenue growth outlook, we expect our gross margin to be about 39.9% at the midpoint.

根據我們的營收成長前景，我們預期毛利率中位數約為 39.9%。

Looking at the year in total, based upon our first 9 months results and fourth quarter midpoint revenue guidance, we expect that 2017 net revenues should grow about 18% compared to 2016 accompanied by a substantial improvement in operating profitability and net income.

縱觀全年，根據我們前 9 個月的業績和第四季度中點收入指引，我們預計 2017 年淨收入將比 2016 年增長 18% 左右，同時營業利潤和淨利潤也將大幅改善。

Importantly, this performance is well supported by multiple sustainable growth drivers across all our product groups.

重要的是，這項業績得到了我們所有產品組的多個永續成長驅動因素的有力支持。

My colleagues and I would now be happy to answer your questions.

我和我的同事現在很樂意回答您的問題。

Thank you.

謝謝。

(Operator Instructions).

（操作員說明）。

The first question is from Anthony Stoss from Craig-Hallum.

第一個問題來自 Craig-Hallum 的 Anthony Stoss。

Carl, if you won't mind, maybe highlighting each of the segments heading into Q4, do you expect all 4 of the business groups to be up sequentially or maybe if you could parse that a little bit?

卡爾，如果您不介意的話，也許可以突出顯示進入第四季度的每個細分市場，您是否預計所有 4 個業務組都會按順序上升，或者您是否可以稍微解析一下？

And then secondly, I'm curious what you think in terms of customer inventory levels, especially on the microcontroller side, if you have any thoughts on potential double ordering.

其次，我很好奇您對客戶庫存水準的看法，特別是在微控制器方面，是否對潛在的雙重訂購有任何想法。

Well, maybe I will start on the second one and then I'll leave to Carlo Ferro to comment by product group.

好吧，也許我會從第二個開始，然後我會讓 Carlo Ferro 按產品組發表評論。

Well, I think as I said before our point of sales and distribution was pretty strong in Q3 and I think this is across the board.

嗯，我認為正如我之前所說，我們的銷售和分銷點在第三季度非常強勁，我認為這是全面的。

This is in Asia where, of course, we have our biggest distribution business, but also in Europe and in United States.

當然，我們在亞洲擁有最大的分銷業務，但也在歐洲和美國。

And the inventories of our distributors are at an historical low level.

我們經銷商的庫存處於歷史低點。

We never had such low level of inventory in distributions.

我們的分銷庫存從未如此低。

I mean, my view is that it's too low and -- because as you know, our portfolio is pretty broad.

我的意思是，我的觀點是它太低了——因為如你所知，我們的投資組合相當廣泛。

So it's important to cover all our products.

因此，覆蓋我們所有的產品非常重要。

So it's very low.

所以它非常低。

We are also working with our sales and marketing team to try to understand what is ultimately the demand of the customers of our distributors.

我們也與我們的銷售和行銷團隊合作，試圖了解經銷商客戶的最終需求是什麼。

But so far we do not have any sign of accumulation.

但到目前為止，我們還沒有任何累積的跡象。

On the opposite, as I just said, very low level of distributors, little bit of -- very low level of inventory at our distributors, I would say everywhere particularly in Asia.

相反，正如我剛才所說，經銷商的庫存水平非常低，我想說的是，我們經銷商的庫存水平非常低，尤其是在亞洲。

Good morning, Anthony.

早安，安東尼。

Good morning, everyone.

大家早安。

I'll take the question on the Q3 to Q4 revenues progression and indeed the 10% sequential, which would be equal at mid-point at 26.4% year-over-year growth is really very -- very substantial.

我將回答有關第三季到第四季營收進展的問題，實際上 10% 的連續成長（相當於中點 26.4% 的年成長）確實非常非常可觀。

Carlo in the introduction has indicated the status of the new program in the imaging division.

卡羅在介紹中指出了新程式在成像部門的地位。

That has started revenues in the third quarter and we see a very substantial step-up in the fourth quarter and this is certainly a very important contributor of this growth.

該公司已在第三季開始收入，我們在第四季度看到了非常大幅度的成長，這無疑是這一成長的一個非常重要的貢獻者。

However, it's not the only one, it's the most important, it's not the only one.

然而，它不是唯一的，它是最重要的，它不是唯一的。

As you specifically ask Anthony, we can confirm that based on current visibility all the 3 product groups on top of the imaging division anticipate sequential revenue growth from the third into the fourth quarter and anticipate a double-digit year-over-year growth in the fourth quarter with respect to the fourth quarter of the prior year.

正如您具體詢問安東尼的那樣，我們可以確認，根據目前的可見性，成像部門之上的所有3 個產品組預計從第三季度到第四季度的收入將連續增長，並預計將實現兩位數的年成長第四季與去年第四季相比。

So we have the revenues across the board.

所以我們有全面的收入。

To give an overall summary about that, if I exclude the contribution of the imaging division the current visibility on fourth quarter for the rest of the revenues of the company is better than the normal seasonality.

對此進行總體總結，如果我排除成像部門的貢獻，則公司其他收入第四季度的當前可見度優於正常的季節性。

The next question is from Jerome Ramel from Exane BNP.

下一個問題來自 Exane BNP 的 Jerome Ramel。

Question is on your CapEx, Carlo.

問題是關於你的資本支出，卡洛。

With a run rate of now, let's say, [2.3, 2.4] (inaudible) how do you see the situation for your capacity utilization rate going forward in 2018?

現在的運作率是 [2.3, 2.4]（聽不清楚），您如何看待 2018 年產能利用率的情況？

Because I guess in Q4 it could be mostly fully saturated.

因為我猜第四季可能會基本完全飽和。

So I'd like to understand what is the flexibility you have from an outsourcing standpoint.

所以我想了解從外包的角度來看你們有什麼彈性。

And with the existing manufacturing what is the revenues you can generate?

透過現有的製造，您可以產生多少收入？

Well, of course we will come back with, let's say, I would say a comprehensive description of 2018 when we met -- when we will meet in January next year.

好吧，當然，我們會回來，比方說，我會在我們見面時（明年 1 月見面時）對 2018 年進行全面的描述。

I think, first of all as I said, we reconfirm our plan for CapEx.

我認為，首先，正如我所說，我們重新確認了我們的資本支出計劃。

The new plan has been announced in fact 1 quarter ago.

事實上，新計劃在第一季前就已宣布。

It is in the range between $1.25 billion and $1.3 billion this year.

今年的金額在 12.5 億美元到 13 億美元之間。

And I have to say that we are also accelerating on the front of our subcontractors with a number of important new initiatives covering quite broad spectrum of technologies.

我必須說，我們也在加速我們的分包商的步伐，推出了一些涵蓋相當廣泛技術的重要新措施。

So it's a combination of CapEx, internally there are many important programs.

所以它是CapEx的組合，內部有很多重要的程式。

Of course what we are doing in 12-inch, it is a significant increase of the capacity in Crolles with a very, very important reduction of the manufacturing cost, but it's not the only one.

當然，我們在12吋所做的，是顯著增加Crolles的產能，同時非常非常重要地降低製造成本，但這並不是唯一的。

Our silicon carbide initiative is another important one.

我們的碳化矽措施是另一項重要措施。

This is a new technology, a new product.

這是一項新技術，一個新產品。

But in general, the demand is strong also on our BCD technologies.

但總的來說，對我們的 BCD 技術的需求也很強勁。

And we are trying to support our internal programs with a very, very, let's say, aggressive initiative in terms of outsourcing and we will continue.

我們正在努力透過在外包方面非常非常積極的舉措來支持我們的內部計劃，我們將繼續這樣做。

Now, yes, you're right, our run rate now, it is based on the Q4 guidance is 9.4%.

現在，是的，你是對的，我們現在的運行率是基於第四季度的指導，是 9.4%。

But I think it is premature to discuss about the next year and we are working on our next year budget, of course, that would be formalized pretty soon and we will then describe the visibility in January next year when we meet for the fourth quarter results.

但我認為現在討論明年還為時過早，我們正在製定明年的預算，當然，這很快就會正式確定，然後我們將在明年 1 月召開第四季度業績會議時描述其可見性。

And maybe just as a follow-up, are you experiencing or your clients probably experiencing some shortages and do you say that in some products you have some allocations?

也許作為後續行動，您或您的客戶是否可能遇到一些短缺，您是否說在某些產品中您有一些分配？

Yes.

是的。

Yes, we see shortages.

是的，我們看到了短缺。

I think we see that first of all with some of our suppliers.

我認為我們首先在一些供應商身上看到了這一點。

And then of course, it is sometime somehow a challenge to completely serve the demand of our customers.

當然，有時完全滿足客戶的需求也是一個挑戰。

We tend to, how can we say, really to strive to do the best effort to serve all our customers from the small customers in distribution to the major customers overall.

我們傾向於，怎麼說呢，真正努力盡最大的努力來服務我們所有的客戶，從分銷中的小客戶到整體的大客戶。

We -- at this very moment I would not like to mention any specific family that is in allocation, but certainly the situation is stretched.

我們——此時此刻，我不想提及任何正在分配的具體家庭，但情況肯定是捉襟見肘。

Next question please.

請下一個問題。

The next question is from Adithya Metuku from Bank of America.

下一個問題來自美國銀行的 Adithya Metuku。

I have 3 questions.

我有 3 個問題。

Firstly on silicon carbide.

首先是碳化矽。

Can you talk a bit about how you see your positioning here as the modules ramp?

您能否談談隨著模組的增加，您如何看待自己的定位？

You've historically not been that strong in the modules space.

從歷史上看，您在模組領域一直沒有那麼強大。

However, you have had some initial design wins with silicon carbide.

然而，您已經在碳化矽方面取得了一些初步設計成果。

So any color around how you see your positioning in the modules spaces as that market ramps and your thinking behind that would be very helpful.

因此，隨著市場的發展，任何關於你如何看待你在模組空間中的定位以及你背後的想法的顏色都會非常有幫助。

And secondly, one for Carlo Ferro.

第二位是卡洛費羅。

You are currently guiding using an FX rate of $1.15.

您目前使用的外匯匯率為 1.15 美元。

Can you give us some color on how you see the operating expenses trending into Q4 and into 2018 using the current FX rate?

您能否向我們介紹一下您如何看待第四季和 2018 年使用當前匯率的營運支出趨勢？

Thank you.

謝謝。

Yes, well on the silicon carbide, we work both on standalone products and not necessarily power module.

是的，在碳化矽方面，我們既致力於獨立產品，也不一定致力於電源模組。

I have to say that some of these new packages are, from what I can say, very innovative solutions.

我必須說，據我所知，其中一些新軟體包是非常創新的解決方案。

But we are also working on a power module initiative for instance, I can say.

但我可以說，我們也在研究電源模組計劃。

We have a line for low power applications in the area of power modules with a possibility to integrate also microcontroller and include microcontrollers in this lower end power module.

我們有一條適用於電源模組領域低功耗應用的產品線，還可以整合微控制器，並將微控制器包含在這個低階電源模組中。

And this we define as intelligent power module.

我們將其定義為智慧功率模組。

And we have an important manufacturing line in Shenzhen in China where we are also investing to expand the line, because we see a lot of demand there.

我們在中國深圳有一條重要的生產線，我們也在投資擴大該生產線，因為我們看到那裡有很大的需求。

But we are also working with partners, external partners, on the more traditionally high power modules.

但我們也在與合作夥伴、外部合作夥伴合作開發更傳統的高功率模組。

And of course, SiC is one -- SiC PowerMOS is one of those products that is very much part of the strategy.

當然，SiC 就是其中之一——SiC PowerMOS 是該策略的重要組成部分的產品之一。

But please do not consider that SiC is only for power modules.

但請不要認為SiC僅用於功率模組。

SiC is for both.

SiC 適合兩者。

We have important silicon carbide initiatives with innovative standalone power packages and we also have an initiative with our power module offer.

我們在創新的獨立電源套件方面製定了重要的碳化矽計劃，並且在電源模組方面也制定了計劃。

So it is global and of course it depends on the application and depends also on the choice of our customers.

所以它是全球性的，當然取決於應用，也取決於我們客戶的選擇。

The second question is about currency and operating expenses, right.

第二個問題是關於貨幣和營運費用的，對吧。

On currency, moving forward on the next quarter based on the current hedging and assuming [that if really] market rate stays at the current level or stay in the bulk of $1.175 or $1.18 for the fourth quarter, effective rate is anticipated to be $1.15.

就貨幣而言，基於當前的對沖，並假設[如果確實]市場利率保持在當前水平或第四季度保持在 1.175 美元或 1.18 美元的大部分水平，則預計有效利率為 1.15 美元。

In Q1 and Q2, we see some increase around $1.17 and then the full effect there will be from Q3 on and the normal rollover of the hedging contract.

在第一季和第二季度，我們看到 1.17 美元左右的上漲，然後從第三季開始以及對沖合約的正常展期將產生全面影響。

In this respect what is the impact on OpEx and particularly, your question on OpEx for the fourth quarter of this year?

在這方面，對營運支出有什麼影響，特別是您對今年第四季營運支出的問題？

So the currency itself on OpEx sequentially could generate an about 10% increase.

因此，OpEx 上的貨幣本身可能會產生約 10% 的成長。

However, from the $553 million of net operating expenses of the third quarter, currency as you know, is not the only ingredient, particularly in the fourth quarter in particular.

然而，從第三季 5.53 億美元的淨營運支出來看，如您所知，貨幣並不是唯一的因素，尤其是在第四季。

So in the current situation of result of the company, there are 2 other important ingredients to consider.

因此，在公司目前的業績情況下，還有另外兩個重要因素需要考慮。

One is the seasonality.

一是季節性。

If you see normally has a large number of vacation in Europe and in this respect labor cost increase in the fourth quarter.

如果你看到歐洲通常有大量假期，那麼第四季勞動成本就會增加。

And the other ingredient is that based on current prospect of result for the full year of the company, you may also anticipate that the variable portion of the labor cost this year is, I would say, higher than in prior year.

另一個因素是，根據公司全年業績的當前前景，您可能也會預期今年勞動成本的可變部分會高於去年。

So overall for modeling the fourth quarter, I would indicate a range -- a number of net operating expenses, R&D plus SG&A minus other income and expenses in a bulk of $580 million, $585 million.

因此，總的來說，對於第四季度的建模，我會指出一個範圍——一些淨營運費用、研發加上 SG&A 減去其他收入和費用，總計 5.8 億美元、5.85 億美元。

Okay.

好的。

Just a quick clarification on the silicon carbide.

只是對碳化矽進行快速澄清。

So, is the idea that you will apply the MOSFETs and somebody else will do the packaging when you say you're working with partners and what do you exactly mean?

那麼，當您說您正在與合作夥伴合作時，您將應用 MOSFET，而其他人將進行封裝，這到底是什麼意思？

On modules, on power modules.

在模組上，在電源模組上。

Of course, we have a very important internal packaging activity.

當然，我們有一個非常重要的內部包裝活動。

Some of these packages are new and very innovative.

其中一些軟體包是新的並且非常創新。

And this is very good for silicon carbide.

這對於碳化矽來說是非常好的。

On power modules, we have 2 axes.

在電源模組上，我們有 2 個軸。

One is internal, that is the intelligent power module.

一是內部的，即智慧功率模組。

And in this intelligent power module, the line is in Shenzhen, our facility is in Shenzhen, for this one there is also the opportunity to include in the intelligent power module, for instance, a microcontroller.

而在這個智慧功率模組中，生產線在深圳，我們的工廠在深圳，對於這個智慧功率模組來說，也有機會包括一個微控制器。

But the other -- and the other line is the higher power kind of power modules where we work with external partners.

但另一條生產線是更高功率的電源模組，我們與外部合作夥伴合作。

Okay, understood, very clear.

好的，明白了，非常清楚。

Next question.

下一個問題。

The next question is from Achal Sultania from Credit Suisse.

下一個問題來自瑞士信貸銀行的 Achal Sultania。

Just one clarification on the previous question.

只是對上一個問題的一個澄清。

I think Carlo you mentioned that we should expect better than normal seasonality for all businesses, excluding special imaging.

我想卡羅您提到過，我們應該對所有業務的季節性預期都好於正常水平，不包括特殊成像。

Like -- can you just help us understand because seasonality has been all over the place in the last few years, like, what is normal seasonal for STMicro?

就像——你能幫助我們理解，因為過去幾年季節性隨處可見，例如，STMicro 的正常季節性是什麼？

Just want to get a sense of that.

只是想了解一下。

And then secondly on gross margin level, when I look at gross margins today, it's already like you're guiding for 40% plus gross margins in Q4.

其次，在毛利率水準上，當我今天查看毛利率時，您已經指導第四季度的毛利率達到 40% 以上。

I guess, obviously, higher fab loading and product mix have helped a lot.

我想，顯然，更高的晶圓廠負荷和產品組合有很大幫助。

I'm just trying to understand, like how much are we there in those 2 processes, like how much product expansion can we actually see, what are the drivers there?

我只是想了解，例如我們在這兩個流程中有多少，例如我們實際上可以看到多少產品擴展，那裡的驅動因素是什麼？

Any color on that would be helpful.

任何顏色都會有幫助。

Okay.

好的。

Thank you for the first question [and really it's] helping to clarify indeed at the end.

感謝您提出第一個問題[實際上它]有助於最後澄清。

If you -- if you look at our historical performance in the last years, particularly after we have exited the platform for smartphones, normally fourth quarter is not a quarter of growth in respect to the third quarter, normal seasonality is about flattish.

如果你看看我們過去幾年的歷史表現，特別是在我們退出智慧型手機平台之後，通常第四季度相對於第三季度來說並不是成長的一個季度，正常的季節性是持平的。

Then I have mentioned that all of the product groups expect a sequential growth quarter-over-quarter.

然後我提到，所有產品組都預計將實現季度環比成長。

So at the end this translates in a positive sequential growth and this translates into a double digit year-over-year growth for the 3 product groups combined and before the effect of the imaging division contribution, which is very substantial as you could expect.

因此，最終這將轉化為正的連續增長，這轉化為 3 個產品組合計的兩位數同比增長，並且在成像部門貢獻的影響之前，這是非常可觀的，正如您所期望的那樣。

The other question was the gross margin, on the gross margin progression.

另一個問題是毛利率，以及毛利率的進展。

Gross margin continues to, at the end, take advantage from efficiencies in manufacturing [and also] they are becoming a little bit less contributing than in prior quarter as you could expect after having really the company reach the optimal utilization of the fabs at the full steam on one side.

最終，毛利率繼續受益於製造效率，[而且]它們的貢獻比上一季要少一些，正如您在公司真正達到晶圓廠的最佳利用率後所預期的那樣一側有蒸汽。

On the other side, the product innovation, the new products contribute on improving the product mix in a way that more than offset the usual industry price erosion.

另一方面，產品創新、新產品有助於改善產品結構，其方式足以抵消通常的產業價格侵蝕。

And when moving from [35.5] to the midpoint of guidance at [39.9] you may consider [bulk of] this ingredient fab efficiency and the positive balance between the product mix minus industry price erosion, the 2 major contributors.

當從 [35.5] 轉向指導中點 [39.9] 時，您可以考慮[大部分]這種成分工廠效率以及產品組合減去行業價格侵蝕之間的正平衡，這是兩個主要因素。

So clearly offsetting a couple of times of basis point negative impact from currency.

因此明顯抵消了貨幣帶來的數倍基點負面影響。

Next question, please.

請下一個問題。

The next question is from Francois Meunier from Morgan Stanley.

下一個問題來自摩根士丹利的弗朗索瓦·莫尼耶。

I was looking at the microcontroller revenue line, which is like -- has had lot of growth.

我正在研究微控制器的收入線，它有很大的成長。

So maybe it's kind of the same question as we had before.

所以也許這和我們之前的問題是一樣的。

But like where do you see those products growing more specifically?

但你認為這些產品在哪裡更具體地成長？

Are we sure -- of course you've got potentially shortages, but are we sure that those products are really being used and sold to a consumer or corporates?

我們是否確定——當然存在潛在的短缺，但我們確定這些產品真的被使用並出售給消費者或企業嗎？

So basically like I understand there are shortages, but is there any chance that there are pockets of inventories building somewhere down the supply chain that maybe you don't see at the distribution level and maybe it's further down.

所以基本上就像我所理解的那樣，存在短缺，但是供應鏈下游的某個地方是否有可能存在庫存積壓，而這些庫存可能是您在分銷層面看不到的，也可能是在更下游的層面。

Now the other -- the question of course is on the other line.

現在另一個問題——當然問題在另一條線上。

Can you confirm this is where you put like the new quite exciting CMOS sensor that is chipping into a very famous product design in California?

您能否確認這就是您放置的令人興奮的新型 CMOS 感測器，該感測器正在加州的一個非常著名的產品設計中融入？

And how hard is it to fight for the sockets of next year and the year after given this is a CMOS sensor and that I guess everyone is smelling the smell of coffee for this big socket?

考慮到這是一個 CMOS 感光元件，我猜每個人都聞到了這個大插座的咖啡味，那麼爭取明年和後年的插座有多難？

Well, I like tea, Francois.

嗯，我喜歡茶，弗朗索瓦。

Anyhow, let's start from microcontrollers.

無論如何，讓我們從微控制器開始。

First of all, microcontroller of course is a product, but it is also an ecosystem.

首先，微控制器當然是一個產品，但它也是一個生態系統。

So our STM32 at this point, it is an important ecosystem, is very well known, I would say at a global level.

所以我們的 STM32 在這一點上是一個重要的生態系統，在全球範圍內都是眾所周知的。

And the applications are a very large but variety of applications, really could be anything.

而且應用程式非常龐大但種類繁多，實際上可以是任何東西。

We have 700 part numbers.

我們有 700 個零件號碼。

I think this year we will sell 1 billion pieces of STM32.

我想今年我們會銷售10億顆STM32。

So it is very broad, it is very large, it is together with application board, of course the development board et cetera.

所以它非常廣泛，非常大，它是和應用板一起的，當然還有開發板等等。

We track, first of all, directly the inventories of all of our OEM customers.

首先，我們直接追蹤所有 OEM 客戶的庫存。

This we know, okay.

這個我們知道，好吧。

And certainly it's still an important part, even if it is not the biggest part for our STM32.

當然，它仍然是一個重要的部分，即使它不是我們 STM32 的最大部分。

The biggest part is in distribution.

最大的部分是分佈。

But, first of all we track the inventory and this is a significant part of course of the business.

但是，首先我們追蹤庫存，這是業務的重要組成部分。

The inventory of our direct OEM customers sometimes are mid-size customers, sometimes are major customers.

我們直接OEM客戶的庫存有時是中型客戶，有時是大客戶。

So we certainly have a good visibility of this part of the inventory.

所以我們當然對這部分庫存有很好的了解。

Then we track the point of sales and the inventories of all our distributors worldwide, okay.

然後我們追蹤全球所有經銷商的銷售點和庫存，好吧。

And finally, we are really trying to understand the bookings of our distributors and do have this data, of course, and we try to understand also what is the final inventory of the customers of our distributors.

最後，我們確實在努力了解經銷商的預訂情況，並且確實擁有這些數據，當然，我們也嘗試了解經銷商客戶的最終庫存是多少。

Now, are we perfect?

現在，我們完美了嗎？

Of course we are not, okay.

我們當然不是，好嗎。

Is there any sign of inventory accumulation in the world today, no.

當今世界有沒有任何庫存累積的跡象，沒有。

We do not have any sign.

我們沒有任何跡象。

On the contrary it is very stretched.

反而顯得非常捉襟見肘。

There are many, many new applications.

有很多很多新的應用。

Some is also new products, new technologies.

有的還是新產品、新技術。

So this is what we see.

這就是我們所看到的。

And then we also believe that this is a business that is quite sticky in the sense that it is really an ecosystem.

然後我們也相信，這是一個非常具有黏性的業務，因為它確實是一個生態系統。

So Claude Dardanne, I believe, has done a really great job with this family which started 10 years ago and we want to keep going.

因此，我相信，克勞德·達丹 (Claude Dardanne) 在這個 10 年前開始的家庭中做得非常出色，我們希望繼續下去。

So there are areas like connectivity, there is area like embedding security even in these more general purpose microcontrollers that are very important new areas for us and we are investing on all of these things.

因此，有像連接這樣的領域，有像嵌入安全性這樣的領域，即使在這些更通用的微控制器中，這對我們來說都是非常重要的新領域，我們正在對所有這些事情進行投資。

For the other question, we cannot comment on customers, Francois, I am sorry.

對於另一個問題，我們無法評論客戶，弗朗索瓦，我很抱歉。

Of course, I can confirm that the imaging is using the others.

當然，我可以確認成像是使用其他的。

But I cannot -- I cannot comment on any specific customer.

但我不能——我不能對任何特定客戶發表評論。

And again the only thing I can say here, these are things that are very complex, okay.

我在這裡唯一能說的就是，這些事情非常複雜，好吧。

And it is a large know-how that we have, covering as many aspects of the technology, are very complex things on a growth base.

我們擁有大量的專業知識，涵蓋了技術的許多方面，在成長的基礎上是非常複雜的事情。

And I would -- of course, our motivation is to keep going and to do everything that we can to make this business sustainable for many years to come.

當然，我們的動力是繼續前進並盡一切努力使這項業務在未來許多年裡可持續發展。

Next question please.

請下一個問題。

The next question is from Sandeep Deshpande from JPMorgan.

下一個問題來自摩根大通的 Sandeep Deshpande。

My question -- my first question is regarding -- Carlo -- to Carlo Bozotti -- I mean, clearly, Carlo, you have been targeting this kind of margin that you have achieved in the third quarter and guided to in the fourth quarter for many years now.

我的問題——我的第一個問題是關於——卡洛——對卡洛·博佐蒂——我的意思是，顯然，卡洛，你一直在瞄準第三季度實現的這種利潤率，並在第四季度實現這一目標。

So clearly ST has reached a destination as such.

很明顯，ST 已經達到了這樣的目的地。

Does that trigger, I mean, other issues at ST such as -- I mean that you are looking that the company will look at more M&A now that you are probably going to be a 15% margin company in the fourth quarter, so in that respect looking at other places where what you have not involved yourself in over the last 5 years as you restructure the company?

我的意思是，這是否會引發ST 的其他問題，例如——我的意思是，你希望公司會考慮更多的併購，因為你可能會在第四季度成為利潤率15% 的公司，所以在這一點上您是否會考慮一下過去 5 年來您在公司重組過程中沒有參與過的其他領域？

And secondly, my question is regarding back again to this -- to the imaging business.

其次，我的問題又回到了成像業務。

I mean do you need to add capacity significantly again next year because, I mean, very likely your customers will continue using your part in their lower-end handsets, et cetera?

我的意思是，您明年是否需要再次大幅增加產能，因為您的客戶很可能會繼續在他們的低階手機等中使用您的零件？

So would you need to add capacity next year and if that's there how do you look at the CapEx scenario in the next year?

那麼，您明年是否需要增加產能？

Sandeep, on the second one, again, this is a phase where there is strong growth for the company.

Sandeep，關於第二個問題，這又是公司強勁成長的階段。

Our run rate now, looking at Q4, is in the range of $9.4 billion.

從第四季來看，我們現在的運作率在 94 億美元左右。

And I think it is important for us to formalize our budget for next year and then we will certainly discuss about opportunities for further growth when we meet in January.

我認為對我們來說重要的是正式確定明年的預算，然後我們一定會在一月份開會時討論進一步增長的機會。

And we will also disclose what are the capital investment plans and the initiatives that we have in terms of -- in terms of outsourcing.

我們也將揭露我們在外包方面的資本投資計畫和舉措。

For M&A, it's not on the table.

對於併購，這不是擺在桌面上的。

I think our priority, it is certainly organic growth.

我認為我們的首要任務當然是有機成長。

We want to keep growing.

我們想要繼續成長。

For us, it's fundamental and remain disciplined.

對我們來說，這是根本的，並且保持紀律。

Of course, the company has the capital structure that is compatible with M&A moves.

當然，該公司擁有與併購措施相適應的資本結構。

But this is not something that is new for us and -- but I would like to underline one more that our priority is to make sure that we continue with growth and we continue with a good level of discipline to extract more value from what we do.

但這對我們來說並不是什麼新鮮事，但我想再強調一點，我們的首要任務是確保我們繼續成長，並繼續保持良好的紀律，從我們所做的事情中獲得更多價值。

Having said that of course we can never say no.

話雖如此，我們當然不能拒絕。

This is a world where there are always opportunities.

這是一個永遠充滿機會的世界。

But our priority is organic growth.

但我們的首要任務是有機成長。

And I have a follow-up, Carlo.

我有一個後續行動，卡洛。

I mean, the supply chain seems to continue to indicate that you have some big major win next year.

我的意思是，供應鏈似乎繼續表明明年你會取得一些重大勝利。

It could be to do with wireless charging or something to do with some new chip as such really.

這可能與無線充電有關，或與某些新晶片有關。

I mean can you -- I mean maybe your wireless charging or to do with any other major chip.

我的意思是你可以 - 我的意思是也許你的無線充電或與任何其他主要晶片有關。

Do you have any major wins ramping up into production next year?

你們有什麼重大勝利可以在明年投入生產嗎？

Sandeep, I cannot comment of course on specific applications and specific customers.

Sandeep，我當然不能對特定應用程式和特定客戶發表評論。

What I can say is that ST, as you know, wanted to be in the digital core of wireless, not alone, but with the Ericson Group and for a number of reason, we could -- we could not make it.

我能說的是，正如你所知，ST 希望進入無線數位核心領域，不是獨自一人，而是與愛立信集團合作，出於多種原因，我們可以——但我們無法做到。

ST has, however, I believe an interesting package of technologies that are around the digital core of a smartphone and this is good for many customers, okay.

然而，我相信 ST 擁有圍繞智慧型手機數位核心的一系列有趣的技術，這對許多客戶來說都是一件好事。

And ultimately there have 3. One is sensors, sensors technology to be used in smartphone applications.

最終有3個。

The second block that we have is power management.

我們的第二個模組是電源管理。

And the third block of technologies that we have that could be used around the digital core of the smartphone is security, okay.

我們擁有的可用於智慧型手機數位核心的第三項技術是安全性。

So these are the things where we believe we have a lead and where we believe we have good technologies.

因此，我們相信在這些方面我們擁有領先地位，並且我們相信我們擁有良好的技術。

We know that to be in this socket, you need to have pretty technologies.

我們知道，要進入這個插座，您需要擁有出色的技術。

Otherwise major customers in the world from China to America to Korea et cetera, they would not select us.

否則世界上的主要客戶從中國到美國到韓國等等，他們都不會選擇我們。

In general, we believe that in these 3 important areas that are around the digital core of the smartphone, we have some good innovation, some good technology portfolio and of course we are working on these 3 blocks, really important project for the future.

總的來說，我們相信在圍繞智慧型手機數位核心的這三個重要領域，我們有一些很好的創新，一些很好的技術組合，當然我們正在研究這三個領域，這對未來來說是非常重要的項目。

And we also want to make sure that it's not only 1 of the 3. We want to make sure that it's balanced, both in terms of technology, but to balance also in terms of what we can manufacture inside and what we can manufacture outside.

我們還希望確保它不僅僅是三者中的一者。

Next questions please.

請接下來的問題。

Next question is from David Holland from UBS.

下一個問題來自瑞銀 (UBS) 的大衛霍蘭德 (David Holland)。

Just coming back on Francois question on the kind of 3D sensing business you are building today.

剛剛回到弗朗索瓦關於您今天正在建立的 3D 感測業務類型的問題。

You made the comment that you want to make that a sustainable growth business.

您曾表示希望將其打造成永續成長的業務。

I wonder if you can just update us on the strategy that you're planning to take to kind of build sustainability into that.

我想知道您是否可以向我們介紹您計劃採取的策略的最新情況，以將永續性融入其中。

Are you carrying on with more of a, let's say, discrete approach and being as such the best at what you're doing today?

你是否繼續採用更多的離散方法，並在你今天所做的事情上做到最好？

Or are you planning to broaden that out more into building more of a portfolio solution?

或者您是否計劃將其範圍擴大到建立更多的產品組合解決方案？

And if so, how would you do that over a platforms solution?

如果是這樣，您將如何透過平台解決方案做到這一點？

And then the second, just as a quick follow-up, in the Q4 guidance, if we look back to the Capital Markets Day, I think for full year '17, you implied that the others business would be roughly $700 million and (inaudible).

然後第二個，就像第四季度指導中的快速後續行動一樣，如果我們回顧資本市場日，我認為 17 年全年，您暗示其他業務將約為 7 億美元，並且（聽不清） ） 。

Does that still hold today or have things changed slightly within the mix?

這種情況在今天仍然成立嗎？

It seems like it's coming in a little bit blow that given the comments you made on the other divisions for Q4?

考慮到您對第四季度其他部門的評論，這似乎有點打擊？

Okay, so I leave the calculation to Carlo on the mix between the segment others and on the rest.

好的，所以我把其他部分和其餘部分之間的混合問題留給 Carlo 來計算。

Our approach -- of course, to be a leader in this new imaging applications, you need to master many technologies, okay, and it is very broad based.

我們的方法——當然，要成為這種新成像應用的領導者，您需要掌握許多技術，好吧，而且它的基礎非常廣泛。

We believe that we are in an excellent position with all of these technology [mix] to keep growing here for many years at a very high level of revenues and this is what we want to do.

我們相信，憑藉所有這些技術[組合]，我們處於有利地位，可以在非常高的收入水平上保持多年增長，這就是我們想要做的。

I think -- I want to make sure that it must be clear for us sustainability is in all aspects the most important priority that we have.

我想——我想確保我們必須清楚，永續性在各方面都是我們最重要的優先事項。

And we are working very hard to make sure that in all the bricks that we need in terms of technology for this application we are the best.

我們正在非常努力地工作，以確保在該應用程式所需的所有技術方面，我們都是最好的。

And sustainability is the key, key priority and we are all working very -- with a very strong focus on this aspect.

永續發展是關鍵、關鍵的優先事項，我們都在非常努力地工作，並且非常關注這方面。

But if I can just follow up on that.

但如果我能跟進的話。

Some of the competitors in this space -- I mean, you've seen a couple getting together to build platform solutions, competitors like AMS have been acquiring to build more of a platform solution.

這個領域的一些競爭對手——我的意思是，你已經看到一些競爭對手聯合起來建立平台解決方案，像 AMS 這樣的競爭對手一直在收購以建立更多的平台解決方案。

Are you planning to follow them in that route or stay more focused in (inaudible) you have today?

您打算跟著他們走那條路還是更專注於（聽不清楚）您今天的情況？

They are following us, we are leading here.

他們跟隨我們，我們在這裡領先。

We have all the key ingredients that we need and we've grown for many years.

我們擁有所需的所有關鍵成分，並且已經發展多年。

Okay.

好的。

Just on the Q4 guidance question.

只是關於第四季的指導問題。

Yes, on your second question, I frankly don't remember, again, (inaudible) Capital Markets Day, we've offered really a very detailed guidance on growth for each of the groups of the company.

是的，關於你的第二個問題，坦白說，我再次不記得（聽不清楚）資本市場日，我們為公司每個部門的成長提供了非常詳細的指導。

We have indicated the overall sales of the company to be expected to grow by 14% plus or minus 1.5% and we said that would have been the plus 1.5%.

我們表示公司的整體銷售額預計成長 14%，正負 1.5%，我們說的是正負 1.5%。

Now we say this is an 18% year-over-year growth and this is for the full company.

現在我們說這是 18% 的年成長，而且這是針對整個公司的。

Then on the (inaudible) that we have presented anyone may have made that may use our computation, but we never -- we never -- we are not aware frankly that we gave a guidance on imaging revenues this year at $700 million.

然後，關於（聽不清楚）我們提出的任何人都可能使用我們的計算得出的結果，但我們從來沒有——我們從來沒有——坦白地說，我們沒有意識到我們今年的成像收入指導為7 億美元。

Having said that, the growth in imaging this year is very, very important.

話雖如此，今年影像領域的成長非常非常重要。

Absolutely on the full year it's going to be very important and an important contributor to the overall growth of the company.

絕對對全年而言，這將非常重要，並對公司的整體成長做出重要貢獻。

Next question.

下一個問題。

The next question is from Andrew Gardiner from Barclays.

下一個問題來自巴克萊銀行的安德魯·加德納。

Perhaps if I could ask the last question a slightly different way.

也許我可以用稍微不同的方式問最後一個問題。

I did hear you say a triple-digit growth in imaging again in fourth quarter, so triple digits in the third quarter, and you sort of said that would accelerate further in the fourth quarter.

我確實聽到您說第四季度成像業務再次實現三位數成長，第三季將實現三位數成長，而且您說第四季將進一步加速。

Is that still correct?

這仍然是正確的嗎？

Are you seeing growth accelerate from an already high level?

您是否看到成長在已經很高的水平上加速？

Andrew, so we said triple digit growth in the third quarter obviously on a low base and then Carlo's comment was that there would be a continued acceleration of the growth, not necessarily at that level.

安德魯，所以我們說第三季的三位數成長顯然是在較低的基數上，然後卡洛的評論是成長將持續加速，但不一定是在這個水平。

So the growth rate not accelerating but still very strong?

那麼成長率沒有加速但仍然非常強勁？

It's a matter of (inaudible).

這是一個（聽不清楚）的問題。

I mean, as you guys said it is a key business -- it's a key part of the business, it's the key part of the guidance.

我的意思是，正如你們所說，這是一項關鍵業務——它是業務的關鍵部分，也是指南的關鍵部分。

So I just want to make sure that I'm hearing it correctly.

所以我只是想確保我聽到的是正確的。

I would like to facilitate on addressing this point as clearly would we have intended.

我想按照我們明確的意圖促進解決這個問題。

And we will be in a position in respect to the overall ingredients of this communication to share us much as possible with you to keep as much as possible confidential in respect to our customers would be very easy for us to give you the growth for each of the 3 groups and 1 for the region or even the number underlying the 10%.

我們將能夠就本次溝通的整體要素與您盡可能多地分享我們的訊息，盡可能對我們的客戶保密，這對我們來說很容易為您帶來每一項的成長。組為地區或甚至數量的10%。

If we can't do at the beginning of this call it's very unlikely that through question we will do by the end of this call.

如果我們不能在通話開始時做到這一點，那麼我們就不太可能在通話結束時透過提問做到這一點。

So my suggestion is please be patient on taking the message as a formulated, which is we do expect sequentially a growth in the company by 10%.

因此，我的建議是，請耐心等待，將這一消息視為一個明確的訊息，我們確實預計公司將連續成長 10%。

Imaging division will be the largest contributor both in dollar and in percentage to this growth.

影像部門將成為這一成長的最大貢獻者（無論從金額或百分比來看）。

All the other 3 product groups are expected to sequentially grow year-over-year.

所有其他 3 個產品組預計將逐年成長。

All the other product groups are anticipated at midpoint of the guidance to grow double digit.

預計所有其他產品組將在指導方針的中點實現兩位數成長。

Okay.

好的。

All right.

好的。

We got most of that.

我們得到了大部分。

Sorry for that.

對此感到抱歉。

Perhaps just another one sort of in this area.

也許只是這個領域的另一種。

I mean relating to sort of imaging products there has been an awful lot of noise in the supply chain about what's happening, order cuts, bottlenecks, et cetera.

我的意思是，與某種成像產品相關，供應鏈中存在大量關於正在發生的事情、訂單削減、瓶頸等的噪音。

The way you guys have just described things suggests that you're certainly not seeing any problem in terms of ramping your products -- ramping your production lines and delivering the product.

你們剛剛描述的方式表明，您在提升產品方面肯定沒有看到任何問題 - 提升生產線和交付產品。

Is there any concerns that you see further down the supply chain related to this?

您認為供應鏈下游是否有與此相關的擔憂？

I am not speaking -- so, no we are perfectly on [path] with this program.

我不是說話——所以，不，我們完全走在這個計劃的[道路]上。

We don't see really problems.

我們沒有看到真正的問題。

We are on track.

我們步入正軌。

Next question.

下一個問題。

The next question is from Janardan Menon from Liberum.

下一個問題來自 Liberum 的 Janardan Menon。

I was just going back to your gross margin, where you said that it's a -- the increase in gross margin was a combination of the fab loading efficiencies as well as new products coming into the mix.

我剛剛回到你的毛利率，你說毛利率的增加是晶圓廠裝載效率以及新產品組合的結合。

I was just thinking if you look at 2018 you've had quite a lot of new products coming into the mix this year.

我只是在想，如果你看看 2018 年，你會發現今年有很多新產品加入。

Do you expect a similar level of new product introductions, which will continue to either support gross margin at this level or even increase it further as we go into next year?

您是否預計會有類似水平的新產品推出，這將繼續支持目前水平的毛利率，甚至在進入明年時進一步提高毛利率？

And in particular can you give us some flavor as to which are the kind of products, which typically will enhance your gross margin from a mix point of view and which is it that could be below company average, if you could give any kind of color that will be great?

特別是，如果您可以提供任何類型的顏色，您能否給我們一些關於哪些產品類型的信息，這些產品通常會從混合的角度提高您的毛利率，哪些產品可能低於公司平均水平那會很棒嗎？

And I have a follow-up after that.

之後我有一個後續行動。

You see Janardan that we are in the process of defining our 2018 budget and finalizing all the related plan.

Janardan 表示，我們正在製定 2018 年預算並最終確定所有相關計劃。

So it's quite early to discuss gross margin for next year.

因此，現在討論明年的毛利率還為時過早。

Clearly the level we are reaching in the second half of '17 is a very significant progression in respect to the prior years.

顯然，我們在 17 年下半年達到的水平與前幾年相比是一個非常顯著的進步。

And my belief it's about a 4 points of improvement in respect to 2016.

我相信與 2016 年相比大約有 4 個百分點的進步。

And in this respect our focus is first of all to ensure this level to be sustainable going forward and second to identify and act on further, other particularly, in the area of the quality and profitability of our product portfolio through innovation.

在這方面，我們的重點首先是確保這一水平在未來可持續發展，其次是進一步確定並採取行動，特別是透過創新在我們產品組合的品質和盈利能力領域。

And you said -- you talked about price pressure, but given that we are in an area of tightness of capacity allocation, very low inventories in the channel, et cetera, would it be fair to assume that price pressure will be lower than sort of normal industry run rates as we get into 2018?

您說，您談到了價格壓力，但考慮到我們處於產能配置緊張、渠道庫存非常低等情況，可以公平地假設價格壓力將低於預期水平嗎？

Yes, from case to case, you know this industry at the end is also based on long lasting relationship with large OEM as a portion of business more through distribution.

是的，從具體情況來看，你知道這個行業最終也是基於與大型原始設備製造商的長期關係，作為業務的一部分更多地通過分銷。

Based on the portfolio, based on the customer there are areas that are totally [inelastic] and areas, to the supply-demand relationship, and the area where some leverage overall exist.

基於投資組合，基於客戶，存在完全[無彈性]的區域和供需關係的區域，以及總體上存在一定槓桿的區域。

In general at the end, we are currently experiencing a milder than normal price pressure and we may expect that entering 2018 this will remain, the level of price, the level for product price evolution and I cannot clearly comment on individual actions on pricing with customers.

總的來說，我們目前面臨的價格壓力比正常情況要溫和，我們可能會預期進入 2018 年這種情況將持續下去，價格水平、產品價格演變水平，我無法明確評論與客戶的個人定價行為。

Next questions please.

請接下來的問題。

The next question is from Gianmarco Bonacina from Equita.

下一個問題來自 Equita 的 Gianmarco Bonacina。

Couple of quick questions.

幾個簡單的問題。

The first one is about the ramp-up of the imaging sales.

第一個是關於成像銷售的成長。

So is it fair to say that your ramp-up is in line with expectation, so there is no extra, let's say inventory that you're building for the client, which means that the normal seasonal decline we should expect for Q1 could be, let's say, average, so should not be, let's say, higher than normal because in Q4 there is extra inventory?

因此，可以公平地說，您的成長符合預期嗎？ ，所以不應該高於正常水平，因為第四季度有額外的庫存？

The other question is about the other line, so the (inaudible).

另一個問題是關於另一條線，所以（聽不清楚）。

I saw there was a drop as expected, so single digit.

我看到正如預期的那樣出現了下降，所以是個位數。

Shall we now pencil for the new -- for the next year roughly this $5 million per quarter or we should put [zero] or what is your best suggestion?

我們現在是否應該為明年的新項目畫上鉛筆，大約每季 500 萬美元，或者我們應該設置[零]，或者您最好的建議是什麼？

(inaudible) So I confirmed under the programs we are perfectly on track according to the volume demand.

（聽不清楚）因此，我根據計劃確認，根據數量需求，我們完全步入正軌。

So no excess inventory.

所以沒有多餘的庫存。

So this is the first point.

所以這是第一點。

And about the second point, okay we confirm when we say that we will see next year a substantial decrease of the growth.

關於第二點，好吧，當我們說明年成長將大幅下降時，我們確認一下。

And we have [no news] about that.

我們對此沒有任何消息。

The $5 million could be a reasonable assumption, certainly there is a decrease but we will be more precise at the beginning of next year.

500 萬美元可能是個合理的假設，當然會有減少，但我們會在明年初更加精確。

Next question.

下一個問題。

The next question is from Robert Sanders from Deutsche Bank.

下一個問題來自德意志銀行的羅伯特‧桑德斯。

Just on 3D sensing question for Jean-Marc maybe.

也許只是關於 Jean-Marc 的 3D 感測問題。

Your competitor AMS is saying that their content opportunity is $10 to $12 in smartphones.

您的競爭對手 AMS 表示，他們在智慧型手機上的內容機會為 10 至 12 美元。

So I would imagine then given that you have a similar portfolio according to you that that's your content opportunity as well.

因此，我想，鑑於您有類似的投資組合，這也是您的內容機會。

We do not want to comment...

我們不想發表評論...

(inaudible) customization in our product that we cannot comment.

（聽不清楚）我們產品的客製化，我們無法發表評論。

Okay.

好的。

And then...

進而...

And again for us in the smartphone it's not only in the sensors.

對於我們的智慧型手機來說，這不僅僅是感測器。

There are 3 blocks of technologies where we have, I believe, a unique technology leadership and one is power management, the second one is sensors in not only imaging, but also other things and the third one is security.

我相信，我們在三大技術領域擁有獨特的技術領先地位，一是電源管理，二是成像感測器，三是安全性。

And we try to exploit this technology leadership to tell these 3 blocks of product technologies to important customers and many times because the customers are very, very important, there is a good level of customization, right.

我們嘗試利用這種技術領先地位，將這 3 個產品技術區塊告訴重要客戶，很多時候因為客戶非常非常重要，所以有很好的客製化水平，對吧。

But we want to be balanced, we want to be broad and making sure that manufacturing when it's really key for us to make it inside, we run it inside, but it is also good to run some of the manufacturing outside.

但我們想要平衡，我們想要廣泛，並確保當製造對我們來說真正關鍵時在內部進行，我們在內部進行，但在外部進行一些製造也很好。

So this is what we are trying to do.

這就是我們正在努力做的事情。

And just a quick follow-up will just be, there's been some reports about you guys starting to discuss with the [EC] about potentially getting funding for new 12-inch fab.

快速跟進就是，有一些報導稱你們開始與 [EC] 討論可能為新的 12 英寸晶圓廠獲得資金的問題。

Is there anything you can say about that?

對此您有什麼想說的嗎？

I know it's quite far off, but clearly any demand of subsidy you might get or not would be relevant for our model.

我知道這還很遙遠，但顯然，您可能獲得或無法獲得的任何補貼需求都與我們的模型相關。

(inaudible) Maybe we commented.

（聽不清楚）也許我們發表了評論。

Let's be very clear here.

讓我們在這裡說清楚。

We do not have any plans to make new 12-inch fabs.

我們沒有任何計劃建造新的12吋晶圓廠。

We have certainly, I believe, the need to support our business both in terms of manufacturing capacity and in terms of R&D.

我相信，我們當然需要在製造能力和研發方面支持我們的業務。

And I think in Crolles we have the opportunity, if there is the demand, of course, to further increase the capacity in the present infrastructure.

我認為，如果有需求，當然，在克羅爾斯，我們有機會進一步增加現有基礎設施的容量。

This of course is important for our customers and this also important for us, not only for the growth, but also because it would be a further reduction of the manufacturing cost and we know also that on smart power technologies with time it is important to go to 12-inch, but for R&D.

這當然對我們的客戶很重要，對我們也很重要，不僅是為了成長，而且因為這將進一步降低製造成本，我們也知道，隨著時間的推移，智慧電力技術的發展很重要到12英寸，但用於研發。

And having said that, we are of course trying to work to make sure that if we could exploit, of course, European Union rather made the initiatives in terms of grants that we will work on this, but this is certainly to support the strategic initiative in ST that are the initiative that I just described.

話雖如此，我們當然正在努力確保，如果我們可以利用，當然，歐盟在贈款方面提出了倡議，我們將致力於此，但這肯定是為了支持戰略倡議在ST 中，這就是我剛才描述的舉措。

Thank you, Rob.

謝謝你，羅布。

Next question please.

請下一個問題。

The next question is from Taze Veysel from Oddo.

下一個問題來自 Oddo 的 Taze Veysel。

Just a quick question on the distribution business, particularly microcontroller.

這是一個關於分銷業務的簡單問題，特別是微控制器。

There was in September, this rumors, okay, you are capacity constrained and could not serve all the customers, and I sense today that your comments direct into a similar way, now that you are really capacity constrained.

九月就有這樣的謠言，好吧，你們的產能有限，無法為所有客戶提供服務，今天我感覺到你們的評論直接進入了類似的方式，現在你們的產能確實受到限制。

I was wondering from the 34%, 35% distribution business, how much is that microcontroller-related and how much -- how fast can you bring that to external partners?

我想知道 34%、35% 的分銷業務中有多少與微控制器相關，以及您能以多快的速度將其提供給外部合作夥伴？

You mean to silicon foundry?

你是說矽代工嗎？

Yes.

是的。

Yes, well, microcontrollers, we have a very important volume with silicon foundry already, very, very important.

是的，嗯，微控制器，我們已經有一個非常重要的矽代工廠卷，非常非常重要。

It is in fact the family where, well in the past we had the traditional logic at silicon foundry, but that in more recent years, microcontrollers have always been STMicroelectronics have always been using also silicon foundry manufacturing on a number of technology -- we -- on a number of technologies.

事實上，在過去，我們在矽代工廠擁有傳統邏輯，但近年來，微控制器一直是意法半導體一直在使用矽代工廠製造的多種技術——我們- - 涉及多項技術。

We have now the opportunity to expand the range of technologies at the silicon foundry, we are working on that.

我們現在有機會擴大矽鑄造廠的技術範圍，我們正在為此努力。

But we are also working to expand the internal capacity of microcontrollers.

但我們也在努力擴展微控制器的內部容量。

I think in particular, I would like to mention that it may seem strange, but technology that we started with the silicon foundry, that is 180-nanometer, is still growing in terms of revenues.

我想特別指出的是，這可能看起來很奇怪，但我們從矽鑄造廠開始的技術，即 180 奈米，在收入方面仍在成長。

And we started many, many years ago, right.

我們很多很多年前就開始了，對吧。

But more recently, we are working with the silicon foundry also on 90-nanometer, this is a very important -- this is a very important program that we have with silicon foundry partner.

但最近，我們正在與矽代工廠合作開發 90 奈米工藝，這是一個非常重要的項目——這是我們與矽代工廠合作夥伴的一個非常重要的計劃。

And internally, we are now in production with 40- nanometer.

在內部，我們現在正在生產 40 奈米。

So there is a range of technologies, there is initiative outside, there are initiative inside.

所以有一系列的技術，外部有主動性，內部也有主動性。

What is good here that, on the first technology that we started on the STM32 that is [180-nanometer] technology, sales are still growing, after so many years.

這裡的好處是，我們在 STM32 上開始的第一項技術，即 [180 奈米] 技術，經過這麼多年，銷量仍在成長。

And now, 90-nanometer is extremely important and we started the 40-nanometer on a couple of flavors of technologies.

現在，90 奈米極為重要，我們在多種技術上開始採用 40 奈米。

So this is very broad internally and externally.

所以這在內部和外部都是非常廣泛的。

And then follow-up on your Time-of-Flight sensor, okay, the communication business is ramped up, but moving that into the industrial space, like some of the companies, [Molex] et cetera are very vocal about that in the industrial space, but also cash recognition driver monitoring in the auto space as kind of applications there.

然後跟進您的飛行時間感測器，好吧，通訊業務正在增加，但將其轉移到工業領域，就像一些公司一樣，[Molex] 等在工業領域對此非常直言不諱空間，而且汽車空間中的現金識別駕駛員監控也是一種應用。

How is your technology moving into other verticals, particularly in the auto part, I sense that -- it's -- the requirements are much higher, so it would be not that easy to bring Time-of- Flight into this area, any thoughts around that?

你們的技術是如何進入其他垂直領域的，特別是在汽車零件領域，我感覺——它的——要求要高得多，所以將飛行時間帶入這個領域並不是那麼容易，任何想法那？

This is clear that, we target the Lidar device, which are really a key enabling components on the overall smart pricing application.

很明顯，我們的目標是雷射雷達設備，它確實是整個智慧定價應用程式的關鍵支援組件。

And our technology is really a key competitive factor for us to target this kind of Lidar activity definitely.

我們的技術確實是我們明確針對此類光達活動的關鍵競爭因素。

So it is important for us with the model and imaging, very important.

所以模型和成像對我們來說很重要，非常重要。

But we have already like in the industrial space, robotics et cetera, any revenues already with the first, yes, I think 2 generation of the Time- of- Flight?

但我們已經在工業領域、機器人技術等領域，透過第一代，是的，我想是第二代飛行時間技術，已經獲得了任何收入？

No.

不。

We don't, no .

我們不，不。

Not yet.

還沒有。

And just really a very quick one, if I may, on the previous question.

如果可以的話，我只是非常快速地回答上一個問題。

The ramp-up or the scenario ramping new 300- millimeter fab.

新建 300 毫米晶圓廠的產能提升或場景。

I think one of your board members said in the interview, even 2 fabs could be possible by 2021, if you get the funding.

我想你們的一位董事會成員在訪談中說過，如果你們獲得資金，到 2021 年甚至有 2 座晶圓廠也是可能的。

I mean is that really so far away?

我的意思是那真的那麼遙遠嗎？

Or if I consider like your largest competitor Infineon in the power space going to 300- millimeter getting scale and scope.

或者，如果我認為像您最大的競爭對手英飛凌一樣，在電源領域將達到 300 毫米的規模和範圍。

Would that be really not a view for your company as well?

這真的不適合您的公司嗎？

No, I clearly confirm.

不，我明確確認。

Okay, (inaudible) is to further extend our 300-millimeter capacity in whole in the [current in first quarter] according to the demand.

好的，（聽不清楚）是根據需求，在[目前第一季]進一步擴大我們的300毫米產能。

And the second point is to set up 300-millimeter pilot line to develop advance BCD smart power technology, which are key enabling technology to address our automotive and industrial segment and power management segment.

第二點是建立300毫米中試線，開發先進的BCD智慧電力技術，這是解決我們汽車和工業領域以及電源管理領域的關鍵使能技術。

This is our plan today.

這就是我們今天的計劃。

Thank you, Veysel.

謝謝你，維塞爾。

Next question please.

請下一個問題。

The next question is from Lee Simpson from Stifel Financial.

下一個問題來自 Stifel Financial 的 Lee Simpson。

Maybe just 2 questions for me, from really just on silicon carbide MOSFET and electric vehicles.

也許對我來說只有兩個問題，實際上只是關於碳化矽 MOSFET 和電動車。

it's -- just wonder if there is any cause for revision of the sales assumptions in the second half of '17, any reason for that changing, I know, recently you talked about few tens of millions in the back half, and if there is any change, how that might impact progress next year?

只是想知道是否有任何原因需要修改 17 年下半年的銷售假設，有什麼原因會導致這種變化，我知道，最近您談到了下半年的幾千萬美元，如果有的話任何變化，可能會如何影響明年的進展？

And certainly, as it sort of works off of, suppose it bottlenecks in supply chain as well for silicon carbide.

當然，當它發揮作用時，假設它也成為碳化矽供應鏈的瓶頸。

Well, for us, it's a very, very important program as you know.

嗯，正如你所知，對我們來說，這是一個非常非常重要的計劃。

And now I do not want to comment on, of course, any specific customer here.

當然，現在我不想評論任何特定客戶。

We are ramping now, is in production.

我們現在正在加緊生產。

This is, for us, is very, very crucial because it is a new wave and I believe with this new wave, we can be very strong in general in the electrification.

這對我們來說非常非常重要，因為這是一股新浪潮，我相信透過這股新浪潮，我們在電氣化方面總體上可以非常強大。

I have to say that we have been working with suppliers a lot and at this point, we have a pretty decent support from our suppliers, we would like to get more.

我必須說，我們一直與供應商合作很多，目前，我們從供應商那裡得到了相當不錯的支持，我們希望得到更多。

But I think, we have a pretty decent support, and I am personally, of course, involved with these key suppliers in silicon carbide.

但我認為，我們有相當不錯的支持，當然，我個人也參與了這些碳化矽的主要供應商的工作。

Our yield are improving continuously, of course, it's difficult we know, but is working.

我們的產量正在不斷提高，當然，我們知道這很困難，但正在發揮作用。

So we are in production and we are ramping up and we want to keep going.

因此，我們正在投入生產，並且正在加快步伐，我們希望繼續前進。

And then of course, the volume depends on our capability, depends on customers, but it is a very, very important program for ST and we are very encouraged by the progress on one side internally, both the packaging and the yielding production, but also with our suppliers that are now starting to deliver high volume production.

當然，產量取決於我們的能力，取決於客戶，但這對 ST 來說是一個非常非常重要的計劃，我們對內部方面的進展感到非常鼓舞，無論是包裝還是成品生產，而且我們的供應商現已開始大批量生產。

Great.

偉大的。

Maybe just a related follow-up.

也許只是相關的後續行動。

Just as we, if we take a step back and look at silicon carbide as it goes into the car, what do you get a sense when speaking to customers is the main driver for the use of silicon carbide, is it improved range of the car or is it for weight savings or even power deficiencies in the drivetrain?

就像我們一樣，如果我們退一步看看碳化矽進入汽車的過程，當與客戶交談時，您會感覺到什麼是使用碳化矽的主要驅動力，是它提高了汽車的續航里程或者是為了減輕重量，甚至是為了動力傳動系統的動力不足？

In fact, it's the 3 together, I think it is of course one of the important technology innovation that could contribute materially to mileage autonomy to the range.

事實上，這三者加在一起，我認為這當然是重要的技術創新之一，可以為該系列的里程自主做出重大貢獻。

And I think, what you said is absolutely correct.

而且我認為，你說的完全正確。

I think, is a combination of electrical -- electric efficiency power, lower power consumption, even working at higher temperature, right.

我認為，是電的結合——電效率高，功耗更低，甚至可以在更高的溫度下工作，對吧。

A smaller heat sink and also certainly related to these let's say, less weight.

更小的散熱器當然也與這些相關，比如說，更輕的重量。

So if you put all together smaller, lighter, higher rating efficiency, of course, this has an impact of the mileage range and this one of the technology driver we believe for the electrification.

因此，如果將更小、更輕、更高的額定效率放在一起，當然，這會對里程範圍產生影響，也是我們認為電氣化的技術驅動因素之一。

The next question is from Amit Harchandani from Citigroup.

下一個問題來自花旗集團的 Amit Harchandani。

Please go ahead.

請繼續。

A few if I may, firstly, could I maybe get a comment from you on lead times, how are they trending across your various product groups right now and if you have seen any further extensions with the course of Q3 or are they coming back?

首先，我可以從您那裡得到一些關於交貨時間的評論嗎？

Secondly, with respect to the gross margin, could you comment on any potential impact from increase in silicon wafer prices or is that being offset by the milder pricing pressure that you referred to earlier, and thirdly, very quickly if you could comment upon silicon carbide traction for you outside automotive and whether that is also trending in-line with expectations or ahead of expectations.

其次，關於毛利率，您能否評論一下矽晶圓價格上漲的任何潛在影響，或者您之前提到的較溫和的定價壓力是否會抵消這種影響？請盡快評論汽車以外領域對您的吸引力，以及趨勢是否符合預期或超出預期。

Thank you?

謝謝你？

Well, I think maybe I will take the first and the third and Carlo will comment on second question.

好吧，我想也許我會回答第一個問題和第三個問題，卡洛將對第二個問題發表評論。

So lead time are stretched.

因此交貨時間被拉長。

We do not certainly see any improvement in the third quarter, the demand is strong, and of course we are working very, very hard to support our customers, the very best of our capability but we didn't see in Q3 any real improvement in terms of lead times and this is very much on a broad base of technologies, and I think the book-to-bill was very, very strong in Q3 and despite our effort in terms of capital investment there is certainly a stretching of the lead time.

我們肯定不會看到第三季有任何改善，需求強勁，當然我們正在非常非常努力地支持我們的客戶，盡我們最大的能力，但我們在第三季度沒有看到任何真正的改善交貨時間方面，這在很大程度上取決於廣泛的技術基礎，我認為第三季的訂單到帳單非常非常強勁，儘管我們在資本投資方面做出了努力，但交貨時間肯定會延長。

I would say that for the other question was on the....

我想說的是，另一個問題是關於...

On the silicon substrate pricing.

關於矽襯底的定價。

This I can take up.

這個我可以接受。

Indeed the pricing for silicon substrate in the industry is increasing particularly in rest to the 200-millimeter diameter.

事實上，業界中矽基板的價格正在上漲，尤其是直徑達到 200 毫米的矽基板。

And this for us perhaps is a little bit less relevant that is negative as with some of our supplier we deal with yearly contract as opposed to semi-annual contract.

這對我們來說可能不太相關，這是負面的，因為我們的一些供應商處理的是年度合同，而不是半年度合約。

Overall, at the end, this is negative is part of the overall evolution of the manufacturing cost and the manufacturing we have a number of other positive contribution including also pricing for other categories of supply.

總的來說，歸根結底，這是製造成本整體演變的一部分，而且製造我們還有許多其他積極的貢獻，包括其他類別供應的定價。

Overall at the end, as we structurally are exposed to the price erosion with our customer we target every year a level of savings in the procurement with our supplier, this is something that this year is occurring similarly to our plan [in a rate] over prior years for 2018 we may anticipate based on current visibility that this price reduction advantage in supplying would reduce substantially but will remain positive in our overall cost evolution.

總的來說，最後，由於我們在結構上面臨與客戶的價格侵蝕，我們的目標是每年在與供應商的採購中節省一定程度的成本，這與我們的計劃[以一定速度]類似，今年發生的事情2018 年，根據目前的情況，我們預計供應方面的降價優勢將大幅減少，但對我們的整體成本演變仍將保持積極的影響。

All the factors and all the different materials and services overall included.

所有因素以及所有不同的材料和服務都包括在內。

When looking at our [9%] midpoint guidance for the fourth quarter clearly the silicon substrate prices well included and already reflect and anticipate some of the effect that we could expect also entering 2018.

當我們查看第四季度的 [9%] 中點指引時，可以清楚地看到矽基板價格已包含在內，並且已經反映和預測了我們預計進入 2018 年的一些影響。

Yes the last one was on the silicon carbide for industrial application.

是的，最後一篇是關於工業應用的碳化矽。

Yes, it is important, I think we of course in the automobile there are less -- there is a less fragmentation objectivity.

是的，這很重要，我認為我們在汽車領域當然有更少的——碎片化的客觀性更少。

It is typically with bigger customers.

通常是針對較大的客戶。

My address at the very beginning, I mentioned that we are on a road in Europe with an important car marker with our silicon carbide solutions.

我在演講一開始就提到，我們在歐洲的一條道路上擁有一個重要的汽車標記，我們的碳化矽解決方案。

That industrial is very important.

這個工業非常重要。

And we are working with all our distributors, we are working in the mass market to expand with our products for a large variety of industrial applications and we see a lot of traction, of course this is much more fragmented but is very, very important for the company.

我們正在與所有經銷商合作，我們正在大眾市場上開展工作，將我們的產品擴展到各種工業應用，我們看到了巨大的吸引力，當然，這更加分散，但對我們來說非常非常重要公司。

And based on time, we will take one more question please.

根據時間的推移，我們將再回答一個問題。

The next question is from Guenther Hollfelder from Baader.

下一個問題來自 Baader 的 Guenther Hollfelder。

Yes, thank you.

是的，謝謝。

Just 1 follow-up question left from my side, on silicon carbide, do you have any design wins for bare die business, silicon carbides today.

我只剩下一個後續問題，關於碳化矽，你們今天在裸晶片業務、碳化矽方面有任何設計成果嗎？

I think, you also mentioned a supplier with a SiC MOSFET design win in your press release.

我想，您在新聞稿中還提到了一家贏得 SiC MOSFET 設計的供應商。

So I was wondering off whether you have anything here based on bare die business.

所以我想知道你們這裡是否有任何基於裸片業務的東西。

Sorry, I don't know.

抱歉，我不知道。

You mean, die without a package?

你是說，沒有包裹就死？

Yes.

是的。

I don't' know, I need to ask.

我不知道，我需要問一下。

I'm sorry.

對不起。

From time-to-time on silicon, we have this kind of business, of course, we also sell from time-to-time dies, but I do not know specifically in the case of the silicon carbide.

矽上我們時不時就有這樣的業務，當然我們時不時也賣模具，但我不知道具體是碳化矽的情況。

So at this point, we'll close the call.

所以此時，我們將結束通話。

Thank you all for listening in and please let us know if you have any questions.

感謝大家的收聽，如果您有任何疑問，請告訴我們。

Ladies and gentlemen, the conference is now over.

女士們、先生們，會議現在結束了。

Thank you for choosing Chorus Call, and thank you for participating in the conference.

感謝您選擇 Chorus Call，也感謝您參加本次會議。

You may now disconnect your lines.

現在您可以斷開線路。

Goodbye.

再見。