意法半導體 (STM) 2023 Q1 法說會逐字稿

Ladies and gentlemen, welcome to the STMicroelectronics First Quarter 2023 Earnings Release Conference Call and Live Webcast. I'm Andre, the Chorus Call operator. (Operator Instructions) The conference is being recorded. The presentation will be followed by a Q&A session. (Operator Instructions)

女士們，先生們，歡迎收看意法半導體 2023 年第一季度收益發布電話會議和網絡直播。我是 Andre，Chorus Call 接線員。 （操作員說明）會議正在錄製中。演示之後將進行問答環節。 （操作員說明）

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

此時，我很高興將工作交給集團副總裁兼投資者關係主管 Celine Berthier。請繼續。

Thank you, Andre, and good morning. Thank you, everyone, for joining our first quarter 2023 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, Purchasing, ERM and Resilience and Chief Financial Officer; and Marco Cassis, President of Analog, MEMS and Sensors Group, and Head of STMicroelectronics Strategy, System Research and Applications, Innovation office.

謝謝你，安德烈，早上好。感謝大家參加我們 2023 年第一季度財務業績電話會議。今天的電話會議由 ST 總裁兼首席執行官 Jean-Marc Chery 主持。今天與 Jean-Marc 一起參加電話會議的還有財務、採購、企業風險管理和彈性總裁兼首席財務官 Lorenzo Grandi； Marco Cassis，模擬、MEMS 和傳感器事業部總裁兼意法半導體創新辦公室戰略、系統研究和應用主管。

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實時網絡廣播和演示材料。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. Also to ensure all participants have an opportunity to ask questions during the Q&A session, please limit yourself to one question and a brief follow-up.

此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產生重大差異的風險因素。我們鼓勵您查看今天上午隨結果發布的新聞稿中包含的安全港聲明。並且在 ST 最近的監管文件中也對這些風險因素進行了完整描述。此外，為確保所有參與者都有機會在問答環節提問，請將自己限制在一個問題和簡短的跟進中。

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 的總裁兼首席執行官 Jean-Marc。

So thank you, Celine, and good morning, everyone, and thank you for joining ST for our Q1 2023 earnings conference call. So let me begin with some opening comments, starting with Q1.

所以謝謝 Celine，大家早上好，感謝你加入 ST 參加我們的 2023 年第一季度收益電話會議。因此，讓我先從 Q1 開始發表一些開場白。

So first quarter net revenues of $4.25 billion came in better than expected in automotive and industrial, partially offset by lower revenues in Personal Electronics. Gross margin of 49.7% came in 170 basis points above the midpoint of our guidance, mainly due to product mix in a price environment that remained favorable.

因此，第一季度汽車和工業領域的淨收入為 42.5 億美元，好於預期，部分被個人電子產品的收入下降所抵消。毛利率為 49.7%，比我們的指引中點高出 170 個基點，這主要是由於產品組合在仍然有利的價格環境下。

Looking at our year-over-year performance. Net revenues increased 19.8%. Gross margin at 49.7% was up from 46.7%. Operating margin increased to 28.3% from 24.7%. And net income grew 39.8% to $1.04 billion. On a sequential basis, net revenues decreased 4%.

看看我們的同比表現。淨收入增長 19.8%。毛利率從 46.7% 上升至 49.7%。營業利潤率從 24.7% 增至 28.3%。淨收入增長 39.8% 至 10.4 億美元。按順序計算，淨收入下降了 4%。

On Q2 2023, at the midpoint, our second quarter business outlook is for net revenues of about $4.28 billion representing a year-over-year increase of 11.5% and a sequential increase of 0.8%. Gross margin is expected to be about 49%.

到 2023 年第二季度，我們第二季度的業務展望為淨收入約為 42.8 億美元，同比增長 11.5%，環比增長 0.8%。毛利率預計約為49%。

For the full year 2023, we will now drive ST based on a plan for full year 2023 net revenues in the range of $17 billion to $17.8 billion, representing a year-over-year growth range of about 5% to 10%.

對於 2023 年全年，我們現在將根據 2023 年全年淨收入在 170 億美元至 178 億美元之間的計劃推動 ST，同比增長范圍約為 5% 至 10%。

Now let's move to a detailed review of the first quarter. Net revenues increased 19.8% year-over-year, driven mainly by ADG and MDG, while AMS revenues decreased slightly. Year-over-year, sales increased 17.5% to OEMs and 24% to distribution.

現在讓我們詳細回顧第一季度。淨收入同比增長 19.8%，主要受 ADG 和 MDG 的推動，而 AMS 收入略有下降。與去年同期相比，原始設備製造商的銷售額增長了 17.5%，分銷增長了 24%。

On a sequential basis, Q1 net revenues came in 110 basis points above the midpoint to our outlook. This performance was driven by better-than-expected results in ADG on continued strength in Automotive. And in MDG with General Purpose Microcontrollers, remaining strong in Q1. Overall, Q1 net revenues decreased 4% on a sequential basis, with ADG up 6.5%; MDG lower by 1.1%; and AMS decreasing 20.3%, reflecting lower-than-expected revenues in Personal Electronics on top of seasonality.

按順序計算，第一季度淨收入比我們預期的中點高出 110 個基點。這一業績是由汽車業務持續走強帶來的 ADG 好於預期的結果推動的。在具有通用微控制器的 MDG 中，第一季度保持強勁。總體而言，第一季度淨收入環比下降 4%，ADG 增長 6.5%；千年發展目標降低 1.1%；和 AMS 下降 20.3%，反映出季節性因素導致個人電子產品的收入低於預期。

Gross profit was $2.11 billion, increasing 27.5% year-over-year. Gross margin increased to 49.7% compared to 46.7% in the same quarter last year. The 300 basis point expansion was driven by improved product mix, favorable pricing and positive currency effect net of hedging, partially offset by higher manufacturing costs.

毛利潤為 21.1 億美元，同比增長 27.5%。毛利率從去年同期的 46.7% 增至 49.7%。 300 個基點的擴張是由產品組合改善、定價優惠和扣除對沖的積極貨幣效應推動的，部分被更高的製造成本所抵消。

Q1 operating margin was 28.3%, up from 24.7% in the year-ago period, with ADG and MDG contributing to the 360 basis point growth in operating margin.

第一季度營業利潤率為 28.3%，高於去年同期的 24.7%，ADG 和 MDG 為營業利潤率增長 360 個基點做出了貢獻。

On a year-on-year basis, net income increased 39.8% to $1.04 billion from the $747 million and diluted earnings per share increased 39.2% to $1.10 from $0.79.

與去年同期相比，淨收入從 7.47 億美元增長 39.8% 至 10.4 億美元，稀釋後每股收益從 0.79 美元增長 39.2% 至 1.10 美元。

Looking at our year-over-year sales performance by product group. ADG revenues increased 43.9% on a double-digit growth in both Automotive and Power Discrete. AMS revenues decreased 0.9%, with lower revenues in Analog and MEMS, offsetting an increase in Imaging. MDG revenues increased 13.2%, with growth in both microcontrollers and RF communications.

按產品組查看我們的同比銷售業績。 ADG 收入增長 43.9%，汽車和分立功率器件均實現兩位數增長。 AMS 收入下降 0.9%，模擬和 MEMS 收入下降，抵消了成像業務的增長。 MDG 收入增長 13.2%，微控制器和 RF 通信均有增長。

In terms of operating margin, 2 of 3 product groups delivered year-on-year expansion: ADG operating margin increased to 32% from 18.7%; MDG operating margin increased to 36.2% from 33.7%; and AMS operating margin decreased to 20.4% from 22.9%.

在營業利潤率方面，3 個產品組中有 2 個實現了同比增長：ADG 營業利潤率從 18.7% 增至 32%； MDG 營業利潤率從 33.7% 增至 36.2%； AMS 營業利潤率從 22.9% 下降至 20.4%。

Net cash from operating activities increased to 39.7% to $1.32 billion in Q1 compared to $945 million in the year-ago quarter.

第一季度來自經營活動的淨現金增長 39.7% 至 13.2 億美元，而去年同期為 9.45 億美元。

First quarter CapEx was $1.09 billion versus $840 million in Q1 2022. Thanks to the strong growth in net cash from operating activities, free cash flow grew to $206 million in Q1 2023 versus $82 million in Q1 2022.

第一季度資本支出為 10.9 億美元，而 2022 年第一季度為 8.4 億美元。由於經營活動產生的淨現金強勁增長，自由現金流從 2022 年第一季度的 8200 萬美元增長到 2023 年第一季度的 2.06 億美元。

Cash dividends paid to stockholders in Q1 2023 totaled $54 million. In addition, ST executed share buybacks of $87 million as part of our current repurchase program. ST's net financial position of $1.86 billion as of April 1, 2023, reflected total liquidity of $4.52 billion and total financial debt of $2.66 billion.

2023 年第一季度支付給股東的現金股息總計 5400 萬美元。此外，作為我們當前回購計劃的一部分，ST 執行了 8700 萬美元的股票回購。截至 2023 年 4 月 1 日，ST 的淨財務狀況為 18.6 億美元，反映了 45.2 億美元的流動資金總額和 26.6 億美元的金融債務總額。

Well, let's now discuss the business dynamics. During the first quarter, demand in the Automotive market and in the Power and Energy portion of the industrial market remained strong, driven by continued semiconductor pervasion and the ongoing structural transformation. Factory automation, robotics and building control grew revenues in line with our strong backlog while new orders normalized. Demand in consumer industrial, communication infrastructure and networking, including data centers and servers, softened. And demand for Personal Electronics and Computer Peripheral further weakness.

好吧，現在讓我們討論業務動態。在第一季度，在半導體持續普及和正在進行的結構轉型的推動下，汽車市場以及工業市場的電力和能源部分的需求依然強勁。工廠自動化、機器人技術和樓宇控制的收入增長與我們強勁的積壓訂單保持一致，同時新訂單正常化。消費工業、通信基礎設施和網絡（包括數據中心和服務器）的需求疲軟。而對個人電子產品和計算機外圍設備的需求進一步疲軟。

Our backlog is now about 6 quarters at the midpoint of our full year 2023 indication, still above a normal situation but with different coverage consistent with the various end-market dynamics.

在我們 2023 年全年指標的中點，我們的積壓現在約為 6 個季度，仍高於正常情況，但覆蓋範圍不同，與各種終端市場動態一致。

In Automotive and Industrial, we are still well above the capacity we can serve on some technologies and packages. In the other end markets we serve, we are back to a more normal level of coverage.

在汽車和工業領域，我們仍然遠遠超出了我們在某些技術和封裝方面的能力。在我們服務的其他終端市場，我們恢復到更正常的覆蓋水平。

Moving now to our Q1 review by end market. In automotive, demand in the first quarter remained strong. Against this backdrop, we continued to execute our strategy for car electrification, in particular in silicon carbide. The number of ongoing silicon carbide programs increased again during Q1. Between the automotive and the industrial markets, we now have 130 projects spread over 85 customers. About 60% of these projects are for automotive customers.

現在轉到我們按終端市場進行的第一季度審查。在汽車方面，第一季度的需求依然強勁。在此背景下，我們繼續執行我們的汽車電氣化戰略，特別是在碳化矽領域。第一季度正在進行的碳化矽項目數量再次增加。在汽車和工業市場之間，我們現在有 130 個項目，分佈在 85 個客戶中。這些項目中約有 60% 是針對汽車客戶的。

We now expect to generate about $1.2 billion of silicon carbide revenues in 2023, broadly spread among mainly different customers.

我們現在預計到 2023 年將產生約 12 億美元的碳化矽收入，主要分佈在不同的客戶中。

We had design wins in Q1 with both silicon and silicon carbide power discretes in automotive applications. This included an ACEPACK power module and silicon carbide MOSFETs for traction investors as well as projects with silicon MOSFETs in battery management systems.

我們在第一季度贏得了汽車應用中矽和碳化矽功率分立器件的設計。這包括面向牽引投資者的 ACEPACK 電源模塊和碳化矽 MOSFET，以及在電池管理系統中使用矽 MOSFET 的項目。

In mid-April, we announced that we signed a multiyear supply agreement with ZF for silicon carbide devices.

4 月中旬，我們宣布與採埃孚就碳化矽器件簽署多年供應協議。

Under this agreement, we will supply a volume of double-digit millions of devices that will be integrated in ZF's new modular inverter architecture going into production in 2025.

根據該協議，我們將提供數以百萬計的設備，這些設備將集成到採埃孚將於 2025 年投產的新型模塊化逆變器架構中。

Speaking more broadly about our automotive portfolio serving car electrification, we won designs for multiple Electric Vehicle makers, including our stellar automotive, MCU, for an onboard charging application.

更廣泛地說，我們為汽車電氣化服務的汽車產品組合，我們贏得了多家電動汽車製造商的設計，包括用於車載充電應用的 Stellar Automotive MCU。

In car digitalization, we had a number of design wins in key areas. In next generation car architectures, our e-fuse products for zonal controller solution gained traction. In driver monitoring system, we were successful with our global shutter automotive image sensor.

在汽車數字化方面，我們在關鍵領域取得了多項設計勝利。在下一代汽車架構中，我們用於區域控制器解決方案的電子熔絲產品獲得了關注。在駕駛員監控系統中，我們的全局快門汽車圖像傳感器取得了成功。

Legacy automotive remains dynamic, and silicon pervasion continues to increase. Here, we had several wins for our SPC5 microcontrollers for vehicle body control as well as our latest products for a secured door zone platform. In our automotive sensor business, we won several new designs for vehicle dynamics, airbags and anti-theft applications.

傳統汽車仍然充滿活力，矽的普及率繼續提高。在這裡，我們用於車身控制的 SPC5 微控制器以及用於安全門區平台的最新產品贏得了多項勝利。在我們的汽車傳感器業務中，我們贏得了多項針對車輛動力學、安全氣囊和防盜應用的新設計。

Moving now to Industrial. Across the industrial market, we see 2 main trends driving a structural transformation in the market and accelerating the increase in the semiconductor content; digitalization of devices and systems and energy management and power efficiency improvement.

現在搬到工業。在整個工業市場，我們看到推動市場結構轉型和加速半導體含量增加的兩大趨勢；設備和系統的數字化以及能源管理和電源效率的提高。

During the quarter, demand remained strong overall in both OEMs and distribution with different dynamics across the areas we serve. In B2B Industrial, we continued to see strong demand in power and energy. Factory automation and robotics, building control grew revenues in line with our strong backlog, but while new orders normalize. Consumer industrial such as battery-operated tools and home appliances softened.

在本季度，原始設備製造商和分銷商的需求總體保持強勁，我們所服務的領域存在不同的動態。在 B2B Industrial，我們繼續看到電力和能源的強勁需求。工廠自動化和機器人技術、樓宇控制的收入增長與我們強勁的積壓訂單保持一致，但同時新訂單正常化。電池驅動工具和家用電器等消費行業走軟。

During Q1, we continued to see an expansion of design wins across 3 areas of the industrial market we focus on: B2B, consumer and specialized. Our broad offering enables us to support our customers with full solutions combining power, analog, sensor and embedded processing products leveraging ST unique position. Wins include system solution comprised of power discrete, power management and STM32 MCUs in renewable energy applications and multiproduct solution for smart meters and smart grid applications. We also won sockets with intelligent power switches, motor drivers, industrial sensors and secure solution in applications such as industrial automation, asset tracking and server power supplies.

在第一季度，我們繼續看到在我們關注的工業市場的 3 個領域中贏得設計的擴展：B2B、消費者和專業領域。我們廣泛的產品使我們能夠利用 ST 的獨特地位，為我們的客戶提供結合電源、模擬、傳感器和嵌入式處理產品的完整解決方案。贏得的成果包括由可再生能源應用中的分立式功率器件、電源管理和 STM32 MCU 組成的系統解決方案，以及用於智能電錶和智能電網應用的多產品解決方案。我們還贏得了具有智能電源開關、電機驅動器、工業傳感器和安全解決方案的插座，適用於工業自動化、資產跟踪和服務器電源等應用。

In the quarter, we made a number of announcements related to our STM32 product portfolio and ecosystem. These included a new highly affordable MCU series to replace 8-bit MCUs. A new high-performance MCU series with enhanced security features, a new wireless MCU and a new MPU products. We also continued to build the best developer ecosystem with 2 industry firsts. We introduced a certified MCU security platform that combines hardware and software to simplify development of secure embedded application. And we launched the world's first MCU Edge-AI Developer Cloud that includes an online benchmarking service for Edge-AI models on STM32 boards.

本季度，我們發布了多項與 STM32 產品組合和生態系統相關的公告。其中包括一個新的非常實惠的 MCU 系列，以取代 8 位 MCU。具有增強安全功能的新型高性能 MCU 系列、新型無線 MCU 和新型 MPU 產品。我們還繼續打造最好的開發者生態系統，擁有 2 個行業第一。我們推出了經過認證的 MCU 安全平台，該平台結合了硬件和軟件以簡化安全嵌入式應用程序的開發。我們還推出了世界上第一個 MCU Edge-AI Developer Cloud，其中包括針對 STM32 板上 Edge-AI 模型的在線基準測試服務。

Moving to Personal Electronics. During the quarter, our products were selected for flagship smartphones, watches and other wearable devices. These include NFC controllers and secure element solutions, wireless charging products, MEMS sensors and time-of-flight ranging sensors.

轉向個人電子產品。本季度，我們的產品被選為旗艦智能手機、手錶和其他可穿戴設備。其中包括 NFC 控制器和安全元件解決方案、無線充電產品、MEMS 傳感器和飛行時間測距傳感器。

In Communication Equipment and Computer Peripheral, new wins here included products for LEO satellites, a number of products or computer peripherals, including secure solution, time-of-flight sensor and MCUs and ASICs for communication infrastructure based on our proprietary technologies.

在通信設備和計算機外圍設備方面，這裡的新勝利包括用於 LEO 衛星的產品、許多產品或計算機外圍設備，包括安全解決方案、飛行時間傳感器以及基於我們專有技術的通信基礎設施的 MCU 和 ASIC。

Now I would like to mention that we issued our annual sustainability report last week, a couple of key points.

現在我想提一下我們上週發布了年度可持續發展報告，其中有幾個要點。

We are on track with our program to be carbon neutral by 2027, and we further increased our global sourcing of electricity from renewable energy growing to 62% in 2022 from 51% in 2021. We were recognized by environmental nonprofit CDP to Carbon Disclosure Project as a global leader in corporate transparency and performance on water security, being one of the few companies to secure a place on its annual A list.

我們正朝著到 2027 年實現碳中和的計劃邁進，我們進一步將全球可再生能源電力採購從 2021 年的 51% 增加到 2022 年的 62%。我們被環保非營利組織 CDP 認可為碳信息披露項目企業透明度和水安全績效方面的全球領導者，是為數不多的在其年度 A 名單上佔據一席之地的公司之一。

Now let's move to our second quarter 2023 financial outlook and our plan for the full year 2023. For Q2, we expect net revenues to be about $4.28 billion at the midpoint, representing a year-over-year growth of about 11.5% and a sequential increase of about 0.8%, both driven by solid growth in Automotive and Industrial, partially offset by the decline in Personal Electronics. Gross margin is expected to be about 49% at the midpoint.

現在讓我們來看看我們的 2023 年第二季度財務展望和 2023 年全年計劃。對於第二季度，我們預計淨收入中點約為 42.8 億美元，同比增長約 11.5%，環比增長增長約 0.8%，均由汽車和工業的穩健增長推動，部分被個人電子產品的下滑所抵消。中點毛利率預計約為 49%。

For 2023, we confirm our plan to invest about $4 billion in CapEx with about 80% of this amount, mainly related to increase of our 300-millimeter wafer and silicon carbide manufacturing capacity including, for silicon carbide, our substrate initiative. The remaining 20% is for R&D, laboratories, manufacturing maintenance and efficiency and our corporate sustainability initiatives.

到 2023 年，我們確認計劃投資約 40 億美元的資本支出，其中約 80% 主要與增加我們的 300 毫米晶圓和碳化矽製造能力有關，包括對於碳化矽，我們的襯底計劃。剩下的 20% 用於研發、實驗室、製造維護和效率以及我們的企業可持續發展計劃。

Based on our visibility, we will now drive the company based on the plan for full year 2023 revenues in the range of about $17 billion to $17.8 billion, representing a growth over 2022 of about 5% to 10%. Automotive and Industrial will be the key growth drivers of our revenues in 2023.

根據我們的可見性，我們現在將根據 2023 年全年收入的計劃推動公司實現約 170 億美元至 178 億美元的收入，比 2022 年增長約 5% 至 10%。汽車和工業將成為我們 2023 年收入的主要增長動力。

To conclude, as we have discussed, we are operating in an environment with significantly different dynamics depending on the end markets we serve. But based on our leadership position, strategic approach and current visibility, we anticipate 2023 another year of revenue growth and profitability improvement toward our $20 billion-plus ambition and related financial model.

總而言之，正如我們所討論的那樣，我們所處的環境根據我們所服務的終端市場的不同而具有截然不同的動態。但根據我們的領導地位、戰略方法和當前的知名度，我們預計 2023 年又是收入增長和盈利能力改善的一年，以實現我們超過 200 億美元的目標和相關的財務模型。

Thank you, and we are now ready to answer your questions.

謝謝，我們現在可以回答您的問題了。

(Operator Instructions) The first question comes from the line of Didier Scemama with Bank of America.

（操作員說明）第一個問題來自美國銀行的 Didier Scemama。

Jean-Marc, you've got -- maybe first question, looking at the second half and the sort of changing dynamics that you highlighted. There's been a number of sort of conflicting reports when it comes to the automotive market during Q1 earnings season. So can you just give us a sense of what your orders look like for the second half of '23 and perhaps the visibility you have into 2024?

讓-馬克，你有——也許是第一個問題，看看下半場和你強調的那種不斷變化的動態。在第一季度的財報季，汽車市場出現了多種相互矛盾的報告。那麼，您能否讓我們了解一下您在 23 年下半年的訂單情況以及您對 2024 年的可見性？

And then a question for Lorenzo. I think you mentioned previously that gross margins would be broadly flat for calendar year '23. Obviously, your first half is running quite a lot above that guidance. So any reason to change the full year guide on gross margin to raise that? Or do you have any other additional headwinds that you want to flag in the second half?

然後是 Lorenzo 的問題。我想你之前提到過，23 年日曆年的毛利率將大致持平。顯然，您的上半場比該指導高出很多。那麼有什麼理由改變全年毛利率指南來提高毛利率？或者你有任何其他你想在下半場標記的額外逆風嗎？

So I will answer about the revenue for the year in H2 versus H1, and Lorenzo will speak about gross margin. Well, let's say, in H2, at the midpoint of the indication we provided, we anticipate a growth of 4% H2 versus H1. And again, it's important that in H2, as I -- while new -- during our Q4 earnings announcement in January, we will have a specific mix change in important customer program in Personal Electronics. And this mix change is material. Here, I have spoken H2 year-over-year in Personal Electronics of an impact of $0.5 billion. And despite this impact, the company will grow in H2, driven by automotive and industrial market, 4% H2 versus H1, and will grow year-over-year H2 2023 versus H2 2022. So this is okay, the demonstration that, okay, we are really resilient in front of the Personal Electronic market.

因此，我將回答 H2 與 H1 的年度收入，洛倫佐將談論毛利率。好吧，比方說，在 H2，在我們提供的指示的中點，我們預計 H2 與 H1 相比增長 4%。同樣，重要的是，在下半年，正如我——雖然是新手——在我們 1 月份的第四季度收益公告期間，我們將對個人電子產品的重要客戶計劃進行特定的組合變化。這種混合變化是重要的。在這裡，我在個人電子產品中談到了 5 億美元的年同比影響。儘管有這種影響，該公司仍將在下半年增長，受汽車和工業市場的推動，下半年與上半年相比增長 4%，並將在 2023 年下半年與 2022 年下半年實現同比增長。所以這沒關係，證明了，好吧，我們在個人電子市場面前非常有彈性。

Well, about the backlog, it is clear that the backlog coverage is following exactly the market dynamics. We are fully covered in backlog for automotive and basically industrial power energy-related and B2B automation, robotics and, let's say, building controls. But where -- okay, we have still to enter order for the second part of the year is more on consumer industrial, is more, let's say, on servers and definitively on pure consumer related, like Personal Electronics and Computer Peripheral.

那麼，關於積壓，很明顯積壓覆蓋率完全符合市場動態。我們完全涵蓋了汽車和基本上與工業電力能源相關和 B2B 自動化、機器人技術以及建築控制的積壓工作。但是 - 好吧，我們仍然需要為今年下半年輸入訂單更多的是消費工業，比方說，更多的是服務器，而且絕對是純粹的消費相關產品，比如個人電子產品和計算機外圍設備。

So that's the reason why our confidence level to have raised the low end of our indication from $16 million to $17 million is very good. We have not raised the range because, on Power Energy and Automotive, we are still facing some capacity limitation. In key technology cluster, that 14-nanometer, silicon carbide, IGBT, all okay, which are really driven our goals. So this is H2 versus H1 dynamic and the complexity, let's say, of the environment we are facing.

因此，這就是為什麼我們將指示的低端從 1600 萬美元提高到 1700 萬美元的信心水平非常好。我們沒有提高範圍，因為在動力能源和汽車方面，我們仍然面臨一些產能限制。在關鍵技術集群上，那個14納米，碳化矽，IGBT，都還行，這真的是驅動我們的目標。所以這是 H2 與 H1 的動態對比，比方說，我們所面臨的環境的複雜性。

Now about gross margin, okay, Lorenzo?

現在談談毛利率，好嗎，洛倫佐？

I take the question. Good morning, everybody. About the gross margin -- for the gross margin at midpoint of our revenue indication for the year, we do expect to have a gross margin ranging between 47% and 48%. In the year, of course, the positive product mix, we have manufacturing product improvement. Substantially, we will see an overall price stability. This will be offset by increase in food cost in our manufacturing. And then we have not to forget that in the second part of the year, we will have the impact of the ramp-up of the 300-millimeter in the graph that there will not be their optimal capacity, and this will impact our COGS in the second half. This is the dynamic, let's say, when we look at the current year with last year.

我接受這個問題。大家早上好。關於毛利率——對於我們今年收入指標中點的毛利率，我們確實預計毛利率在 47% 到 48% 之間。當然，在這一年，積極的產品組合，我們對製造產品進行了改進。實質上，我們將看到整體價格穩定。這將被我們製造業中食品成本的增加所抵消。然後我們不要忘記，在今年的下半年，我們將受到圖中 300 毫米產能增加的影響，即它們不會達到最佳產能，這將影響我們的 COGS下半場。比方說，當我們用去年來看待今年時，這就是動態。

If we go a little bit more and specific to compare, let's say, the first half with the second half of this year, of course, in H1, gross margin has benefited from a sequential positive price effect. We had also a strong positive impact on the product mix. While in the first half of the year, our gross margin has not yet been significantly impacted by the increase of the input and manufacturing costs. In H2, on the contrary, we expect to be impacted by some increased sales price pressure, even if in the year, this will be, let's say, substantially neutral. But in the second part of the year, we will see negative price pressure when looking sequentially.

如果我們更具體地比較一下，比方說，今年上半年和下半年，當然，在上半年，毛利率受益於連續的積極價格效應。我們對產品組合也產生了強烈的積極影響。而在今年上半年，我們的毛利率尚未受到投入和製造成本增加的顯著影響。相反，在下半年，我們預計會受到一些銷售價格壓力增加的影響，即使在今年，這將基本上是中性的。但下半年環比看價格會出現負壓。

Manufacturing input costs will increase. Then there will be also some less optimized production level in some specific facts, the ones that are more exposed to consumer or Personal Electronics. And as I was saying before, in the second part of the year, there is the impact of our 300-millimeter graph that really today is in the start-up, but in the second part of the year, we'll enter in our cost of goods sold. So at the end, let's say, the visibility, I repeat, that the visibility for the -- will be -- we have a gross margin that will be ranging between 47% and 48%.

製造投入成本將增加。然後在一些特定的事實中也會有一些不太優化的生產水平，那些更容易接觸到消費者或個人電子產品的產品。正如我之前所說，在今年下半年，我們的 300 毫米圖的影響今天真的處於啟動階段，但在今年下半年，我們將進入我們的銷售商品的成本。所以最後，讓我們說，我重複一遍，可見性——將是——我們的毛利率將在 47% 到 48% 之間。

Got it. I just wanted to clarify, Jean-Marc, did you say that the headwind from your sort of market customers and Personal Electronics is $0.5 billion year-over-year in the second half? Is that what you said?

知道了。我只是想澄清一下，Jean-Marc，你是不是說下半年來自你的市場客戶和個人電子產品的逆風是 5 億美元？是你說的嗎？

Yes.

是的。

Okay. Got it. And then maybe a quick follow-up. I just wondered if you could discuss a little bit the pricing environment in the second half. In microcontrollers, there's a number of sort of reports out there in Asia that pricing is getting weaker, especially in the consumer and PC peripherals, et cetera, market. So first of all, maybe remind us where you play in those markets and whether you are tempted to follow this price action or refer to dedicate your capacity to automotive and industrial microcontrollers to protect pricing.

好的。知道了。然後可能會進行快速跟進。我只是想知道你是否可以討論一下下半年的定價環境。在微控制器方面，亞洲有許多報告稱定價正在走弱，尤其是在消費和 PC 外圍設備等市場。因此，首先，也許提醒我們您在這些市場中的位置，以及您是否想遵循這種價格行動，或者將您的能力用於汽車和工業微控制器以保護價格。

Yes. My first comment is you cannot speak about price generally across the board. As we described, okay, we are really facing complexity with really significant different market dynamics. And of course, okay, you have to manage your price. Let's say, being selected, it is clear when you face, let's say, competition on pure consumer connected device is absolutely not the same when you are competing in a power box where you are managing the power solution.

是的。我的第一條評論是你不能全面談論價格。正如我們所描述的，好吧，我們確實面臨著具有非常重要的不同市場動態的複雜性。當然，好吧，你必須管理你的價格。比方說，當你被選中時，很明顯，當你在管理電源解決方案的電源箱中競爭時，純消費連接設備的競爭是絕對不同的。

So we cannot speak about the price across the board. Yes, we do believe that in H2 in the field of consumer where you will have, let's say, lead time of production supply coming back to normal and potentially here and there in some specific location, some capacity flexibility to see price pressure. And ST, we will manage it selectively. Overall, okay, it will land on what described Lorenzo, so across the board, across the year, we should see a price, okay, basically stability...

所以我們不能全面談論價格。是的，我們確實相信，在 H2 的消費領域，比方說，生產供應的交貨時間將恢復正常，並且可能在某些特定位置到處都是，一些產能靈活性可以看到價格壓力。而ST，我們會選擇性地管理它。總的來說，好吧，它會落在洛倫佐描述的東西上，所以在整個一年中，我們應該看到一個價格，好吧，基本上是穩定的......

(inaudible)

（聽不清）

And in H2, yes, okay, we will see some minus.

在 H2 中，是的，好的，我們會看到一些減號。

The next question comes from the line of Matt Ramsay from TD Cowen.

下一個問題來自 TD Cowen 的 Matt Ramsay。

My first question, I wanted to ask the silicon carbide target. You guys had talked for a while about billion dollars in 2023. And then I think in January, you had said greater than $1 billion, and now you're talking about $1.2 billion, which is great. I think all of us saw the announcement with ZF and what that could potentially mean. I guess my question on that is, for the industry ramping material supply, we get a lot of conflicting reports, some bumps with your primary material supplier, some news of potentially ramping supply at other sources. So Jean-Marc, maybe you could talk a little bit about your near-term plans for getting silicon carbide material supply to support that revenue ramp and if there's any update. I think you mentioned in the script, increasing investments on your internal substrates. If you could give us an update on the time lines there where you can guys can start to supplement your supply with internal supply, that would be helpful.

我的第一個問題，我想問一下碳化矽靶材。你們在 2023 年談論了 10 億美元。然後我想在 1 月份，你們說超過 10 億美元，現在你們談論的是 12 億美元，這很好。我想我們所有人都看到了 ZF 的公告以及這可能意味著什麼。我想我的問題是，對於行業增加材料供應，我們收到很多相互矛盾的報告，與您的主要材料供應商有一些衝突，一些關於其他來源可能增加供應的消息。所以 Jean-Marc，也許你可以談談你獲得碳化矽材料供應以支持收入增長的近期計劃，以及是否有任何更新。我想你在劇本中提到，增加對內部基板的投資。如果您可以向我們提供有關時間表的最新信息，你們可以開始用內部供應來補充您的供應，那將很有幫助。

Well, okay, I will not comment, okay, the other competitor and supplier. Clearly, I really confirm the $1.2 billion. We know that ST, okay, according some numbers, we see that in 2022, we have about 40% of market share. And with this $1.2 billion looking like, according to market data we have, that we will increase our market share. But thanks to our capability to deliver wafer out and module and package out according customer expectation. And thanks, okay, to the multiple source we have in raw material, saying that we are really on track to be in position starting 2024 to produce raw material for our own needs and going forward, okay, to achieve 40%.

好吧，好吧，我不評論，好吧，其他競爭對手和供應商。顯然，我真的確認了 12 億美元。我們知道 ST，好吧，根據一些數字，我們看到到 2022 年，我們擁有大約 40% 的市場份額。根據我們擁有的市場數據，這 12 億美元看起來像是我們將增加我們的市場份額。但多虧了我們能夠根據客戶的期望交付晶圓、模塊和封裝。好吧，感謝我們在原材料方面擁有多個來源，說我們真的有望從 2024 年開始為我們自己的需要生產原材料，並向前邁進，好吧，達到 40%。

Now this will be first in 6-inch definitively. We are preparing the 8-inch conversion. So we have already produced one 8-inch ingot from our former industrial, okay, let's say, facilities. And we are qualifying the 8-inch device according our qualification protocol. So we anticipate that we will start 8-inch activities, let's say, in second half of 2024.

現在這將是 6 英寸中的第一個。我們正在準備 8 英寸轉換。所以我們已經從我們以前的工業設施生產了一個 8 英寸的鑄錠。我們正在根據我們的認證協議對 8 英寸設備進行認證。所以我們預計我們將在 2024 年下半年開始 8 英寸的活動。

Well, then after, we have, let's say, other opportunity for silicon carbide, first, to qualify also the SmartSIC technology, which will be very, very instrumental for cost decrease, but for 8-inch wafer size conversion. We will qualify in the second half of 2023, our generation for silicon carbide, that we will start to ramp up in 2024. So this is what I can confirm to you.

好吧，然後，我們有，比方說，碳化矽的其他機會，首先，還有 SmartSIC 技術的資格，這將非常非常有助於降低成本，但對於 8 英寸晶圓尺寸轉換。我們將在 2023 年下半年獲得資格，我們這一代碳化矽，我們將在 2024 年開始增加。所以這就是我可以向你確認的。

Well, then looking at the market evolution and the number of programs and the number of customers we have, we are very confident to deliver about $2 billion in 2025, 2026. And then, okay, to have a target, okay, long term, well above $5 billion when the market will reach $15 million. So this is really the road map we execute. I don't say clock watch, but we execute every quarter and every year fully consistently with what we said since the beginning.

好吧，然後看看市場演變、項目數量和我們擁有的客戶數量，我們非常有信心在 2025 年、2026 年交付約 20 億美元。然後，好的，有一個目標，好的，長期的，當市場將達到 1500 萬美元時，將遠遠超過 50 億美元。所以這確實是我們執行的路線圖。我不是說鐘錶，但我們每個季度和每年的執行都與我們從一開始就說的完全一致。

Thank you, Jean-Marc for the detail. I realized the sensitivity on some of the near-term stuff there. As my follow-up, Lorenzo, you had talked about some of the potential gross margin impacts in the second half of the ramp of 300-millimeter capacity. So I wanted to ask about that a little bit, maybe just to kind of follow on to Didier's question. There's certainly some angst in the system around pricing and margins. So I guess the first one is, could you maybe quantify, if you could, the gross margin impact just from the 300-millimeter ramp in the second half of the calendar year? And then I mean, really strong margins up to 49% in the guidance. I think folks are wondering if that -- is that a peak? Is that a new normal? How would you consider that? And maybe if there's some price pressure, when do you feel like the 300-millimeter capacity will be at a scale to be a positive driver of margins rather than a near-term ramp-up headwind?

謝謝 Jean-Marc 提供的詳細信息。我意識到那裡的一些近期事物的敏感性。作為我的後續行動，洛倫佐，你談到了 300 毫米產能下半年的一些潛在毛利率影響。所以我想稍微問一下，也許只是為了繼續 Didier 的問題。圍繞定價和利潤率的系統肯定存在一些焦慮。所以我想第一個是，如果可以的話，你能否量化日曆年下半年 300 毫米坡道對毛利率的影響？然後我的意思是，指導中的利潤率非常高，高達 49%。我想人們想知道那是否——那是一個高峰嗎？這是新常態嗎？你會如何考慮？也許如果存在一些價格壓力，您認為 300 毫米產能何時會達到一定規模，成為利潤率的積極驅動因素，而不是近期增長的逆風？

Clearly, in the second part of the year, when the fab -- 300-millimeter fab in Agrate will exit from the ramp-up accounting that today is bringing, let's say, the equivalent of the saturation cost, so the excess cost in the line of other income and expenses. We will see, let's say, this impact coming directly in our COGS.

顯然，在今年下半年，Agrate 的 300 毫米晶圓廠將退出今天帶來的產能增加核算，比方說，相當於飽和成本，因此超額成本在其他收入和支出項目。我們將看到，比方說，這種影響直接出現在我們的 COGS 中。

How much this will impact? Of course, this is temporary because it's due to the fact that the 300-millimeter is not at a reasonable, let's say, level that will reach in order to be substantially neutral and start to contribute positively to our gross margin in the course of 2024.

這會影響到什麼程度？當然，這是暫時的，因為 300 毫米沒有達到一個合理的水平，比方說，該水平將基本保持中性，並在 2024 年開始對我們的毛利率做出積極貢獻.

In 2023, for sure, this will not happen. We need to reach in 2023, our capacity will be still, let's say, at the level of below 1,000 wafer per week and let's say, significantly below. So at the end, this is a size for a 300-millimeter that is definitely not accretive for the gross margin will be increasing the cost.

到 2023 年，這肯定不會發生。我們需要在 2023 年達到，比方說，我們的產能仍將處於每週 1,000 片晶圓以下的水平，比方說，大大低於。所以最後，這是一個 300 毫米的尺寸，絕對不會增加毛利率，這會增加成本。

Looking overall, let's say, the second part of the year -- as I was saying before, there are 3 components that are impacting our gross margin. On one side, there is the impact of the 300-millimeter. On the other side, there will be the impact, let's say, of the fact that we will start to see materially the increased cost in our manufacturing that today is partially, let's say, suspended in our inventory. But then it will come down in our P&L starting already partially in this quarter in Q2, but definitely with much higher level of impact during Q3 and Q4. And the other side, there will be also, let's say, some impact related to the price pressure that we were discussing before and the mix.

總體來看，比方說，今年下半年——正如我之前所說，有 3 個組成部分正在影響我們的毛利率。一方面，有 300 毫米的影響。另一方面，比方說，我們將開始實質性地看到製造成本增加的事實會產生影響，而今天，我們的庫存部分暫停了。但隨後我們的損益表將在第二季度的本季度部分開始下降，但肯定會在第三季度和第四季度產生更大程度的影響。另一方面，比方說，我們之前討論過的價格壓力和組合也會產生一些影響。

How this will account when we compare the first half and the second half of our gross margin? I would say that 1/3, 1/3, 1/3. More or less, let's say, we can see that this is the impact of these 3 main elements that on one side are the impact on pricing in our top line, on the other side is the impact of the increased cost in our manufacturing costs then on the other side is the 300-millimeter.

當我們比較上半年和下半年的毛利率時，這將如何計算？我會說 1/3、1/3、1/3。或多或少，我們可以看到這是這三個主要因素的影響，一方面是對我們收入定價的影響，另一方面是我們製造成本增加的影響另一邊是300毫米。

And I repeat just to clarify, this is a temporary impact, let's say -- and then, of course, in the second part of the year, as I was saying before, there are some of our fabs that are not working at optimized production level. Why? Because, of course, we are also keeping under control our inventory. And as you see, we have some of these steps, the ones that are more exposed to consumer or Personal Electronic, let's say. We needed to be sure that we are not inflating our inventory. So this is another impact that is fully taken into consideration in our indication of gross margin of the year between 47% to 48%, but will contribute, in any case, to add on our gross margin in the second part of the year as a de facto.

我重複一遍只是為了澄清，比方說，這是暫時的影響——然後，當然，在今年下半年，正如我之前所說，我們的一些晶圓廠沒有優化生產等級。為什麼？因為，當然，我們也在控制我們的庫存。正如你所看到的，我們有一些這樣的步驟，比方說，這些步驟更容易接觸到消費者或個人電子產品。我們需要確保我們沒有誇大我們的庫存。因此，這是我們在 47% 至 48% 的年度毛利率指標中充分考慮到的另一個影響，但無論如何都將有助於增加我們今年下半年的毛利率，因為事實上。

The next question comes from the line of Stephane Houri from ODDO BHF.

下一個問題來自 ODDO BHF 的 Stephane Houri。

Actually, I wanted to come back on the price dynamic, notably in the Automotive segment because, in the past, you have explained that the relationships with the Automotive industry had changed a bit and that you were not expecting prices to collapse, but maybe come back to a more normal trend. So is that what you're seeing at the moment or not yet?

實際上，我想回到價格動態上，特別是在汽車領域，因為在過去，您已經解釋過與汽車行業的關係發生了一些變化，並且您不希望價格暴跌，但也許會來回到更正常的趨勢。那麼，這是您目前看到的還是尚未看到的？

And the question linked to that is with the temporary impact that you're talking about for the gross margin in the second half, are you still comfortable with your target to get back to or to go to 50% gross margin within the time frame of your plan?

與此相關的問題是您所說的對下半年毛利率的暫時影響，您是否仍然對在以下時間範圍內恢復或達到 50% 毛利率的目標感到滿意你的計劃？

Yes. So definitively, so -- but of course, Lorenzo, with further comment. Again, we repeat what are the key driver for gross margin improvement. I think Lorenzo elaborated that we have a temporary impact of Agrate ramp-up definitively, which is not -- absolutely not a surprise. It is mitigated by the ramp-up of coal at the same time. And each time we are increasing coal ramp-up according to the plan of record we have with the liberty project, okay, for sure, we mitigate also Agrate. When Agrate it will reach the adequate scale, Agrate will contribute to the gross margin of ST. So the 300-millimeter is one of the main elements.

是的。如此明確，如此 - 當然，Lorenzo，還有進一步的評論。再次，我們重複毛利率提高的關鍵驅動因素。我認為 Lorenzo 詳細說明了我們對 Agrate 提升的暫時影響是明確的，這並不——絕對不足為奇。同時煤炭的增加緩解了這種情況。每次我們根據自由項目的記錄計劃增加煤炭產量時，好吧，當然，我們也減輕了 Agrate。當Agrate達到足夠規模時，Agrate將貢獻ST的毛利率。因此，300 毫米是主要元素之一。

I repeat, the second element is the silicon carbide moving forward to 200 millimeter. And thanks to the SmartSIC technology, which is really key to make the 200-millimeter successful, okay, we will have important leverage to decrease our costs and, of course, okay, to contribute to the gross margin improvement. It is clearly the 2 important, let's say, contributor.

我再說一遍，第二個元素是碳化矽，它正在向 200 毫米發展。多虧了 SmartSIC 技術，這是使 200 毫米成功的真正關鍵，好的，我們將有重要的槓桿來降低我們的成本，當然，好的，可以為提高毛利率做出貢獻。這顯然是 2 重要的貢獻者。

Well, then after the loading of our fab, temporarily in H2, some fab, okay, will face, let's say, not fully optimized loading, but it is mainly related to Personal Electronics. But just to give you an order of magnitude, okay, in 2023 at the midpoint, Personal Electronics, okay, will decrease 25%. And half of the decrease is not silicon impact because it is an optical module product mix change with no impact on the loading, but has had an impact on the loading. So of course, okay, in H2, we have this temporary non-loading that we will compensate moving forward because the demand on advanced BCD technology, advanced lower technology for automotive, industrial is more and more increasing. So then, okay, we will come back to a full loading of our fab starting 2024 definitively. So that is the reason why we confirm to you that the $20 million-plus ambition, we will deliver the 50% gross margin.

好吧，然後在我們的晶圓廠加載之後，暫時在 H2，一些晶圓廠，好的，將面臨，比方說，沒有完全優化的加載，但它主要與個人電子產品有關。但只是給你一個數量級，好吧，在 2023 年的中點，個人電子產品，好吧，將減少 25%。並且一半的減少不是矽的影響，因為它是光學模塊產品組合的變化，對負載沒有影響，但對負載有影響。所以當然，好吧，在下半年，我們有這種暫時的無負載，我們將補償向前推進，因為對先進 BCD 技術、汽車、工業的先進較低技術的需求越來越多。那麼，好吧，從 2024 年開始，我們將完全恢復我們工廠的滿載。這就是為什麼我們向您確認 2000 萬美元以上的雄心，我們將實現 50% 的毛利率。

Well, about the pricing on automotive. Now, okay, we position this business and the demand of the customer on technology cluster that radically changed compared 2 years ago. Now, okay, we are at 40-nanometer technology, 28. Maybe tomorrow, we will be at 18 technology, silicon carbide, GaN, IGBT modules. So it's a complete different mix compared to the past. And on this technology, there is no more excess of capacity. And the investments are cautious. There are no excess of investment worldwide on all this kind of technology, let's say, clusters because, first, it is either on 300-millimeter or it is on (inaudible). And this is calling for CapEx that companies are spending cautiously. And that in this field of activity, the foundry business is quite tight, okay? There is no, let's say, excess of foundry competition in competing in the field of automotive.

好吧，關於汽車的定價。現在，好吧，我們將這項業務和客戶的需求定位在與 2 年前相比發生根本變化的技術集群上。現在，好吧，我們在 40 納米技術，28。也許明天，我們將在 18 技術，碳化矽，GaN，IGBT 模塊。因此，與過去相比，這是一個完全不同的組合。並且在這項技術上，不再有產能過剩。投資是謹慎的。全球對所有此類技術的投資都沒有過剩，比方說，集群，因為首先，它要么在 300 毫米上，要么在（聽不清）上。這要求公司謹慎支出資本支出。而且在這個活動領域，代工業務相當緊張，好嗎？可以說，在汽車領域的競爭中沒有過度的代工競爭。

So that's the reason why. Yes, we will go back a normalized price discussion with the customers. More and more, we will have straight discussion with the carmakers. Clearly, it is a trend we are seeing. So the model, okay, moving forward, okay, is not the model we had 5 years ago or 10 years ago. Well, saying that, okay, Lorenzo, you can comment.

所以這就是原因。是的，我們將與客戶進行正常的價格討論。我們將越來越多地與汽車製造商進行直接討論。顯然，這是我們看到的趨勢。所以模型，好的，向前推進，好的，不是我們 5 年前或 10 年前的模型。好吧，說到這裡，好吧，洛倫佐，你可以發表評論了。

Yes, maybe just a clarification. When we were talking about the impact of pricing in the second part of this year, it's not actually in automotive. Automotive has been rediscussed. The pricing, as I was saying, is increasing. Indeed, there is some decline in price on a sequential basis on different areas than automotive that the one -- that are most exposed to the difficulties of the market. We are talking here about a big consumer portion of the industry. And indeed, at the end, between automotive increasing pricing, maintaining pricing and, let's say, some other areas in which there is a normal dynamic price decline, at the end, the price will be substantially flattish in the year.

是的，也許只是一個澄清。當我們在今年下半年談論定價的影響時，它實際上並不是在汽車領域。汽車已被重新討論。正如我所說，定價正在上漲。事實上，在不同領域的價格連續下降，而不是汽車，這是最容易受到市場困難影響的領域。我們在這裡談論的是該行業的一個很大的消費者部分。事實上，最終，在汽車提高定價、維持定價以及比方說其他一些正常動態價格下降的領域之間，最終，今年的價格將基本持平。

In respect to the gross margin, I'll just confirm what Jean-Marc said. And of course, also, let's say, we need to consider that reaching our target, let's say, of the 50% gross margin, a $20 billion-plus is not linear. It means that we may have some quarter like you have seen in which we are very close already to the target like in Q1. Some other in which we will be a little bit, let's say, down, one of the reasons we discussed before, let's say, when we introduce our 300-millimeter, not yet at the full size. So -- but at the end, the trend will be that one when the one that will bring the company to gross margin at 50%, let's say, when the size of our top line will be in the range of the $20 billion.

關於毛利率，我只是確認 Jean-Marc 所說的。當然，我們還需要考慮實現我們的目標，比方說，在 50% 的毛利率中，200 億美元以上是非線性的。這意味著我們可能有一些季度，就像您看到的那樣，我們已經非常接近第一季度的目標。其他一些我們會有點，比方說，我們之前討論過的原因之一，比方說，當我們介紹我們的 300 毫米時，還沒有全尺寸。所以——但最終，趨勢將是那個將使公司的毛利率達到 50% 的趨勢，比方說，當我們的收入規模將在 200 億美元的範圍內時。

The next question comes from the line of Andrew Gardiner from Citi.

下一個問題來自花旗銀行的 Andrew Gardiner。

Two follow-ups to questions that have been asked, if I could. First, Lorenzo, you mentioned inventories and making sure that you are sort of continuing to manage inventories pretty tightly given the end-market dynamics that you're seeing. Inventories rose quite a bit on your books in the quarter, yet, of course, it doesn't seem as though you weren't short of demand per se in the quarter at a group level. Clearly, you beat your guidance and you didn't pump the brakes on -- you need to pump the brakes on the fabs in the first quarter at a high level that's still delivering gross margins well in excess of your guidance. So can you just sort of describe what was driving the inventory increase in first quarter? Did that come as a bit of a surprise perhaps towards the end of the quarter? Or is it -- it's really there in preparation for what you're seeing across the different end markets in the second half? And then I have a follow-up on silicon carbide.

如果可以的話，對已提出的問題進行兩次跟進。首先，洛倫佐，你提到了庫存，並確保你在某種程度上繼續非常嚴格地管理庫存，因為你看到了終端市場的動態。本季度的庫存在您的賬簿上增加了很多，但是，當然，在集團層面上，本季度您似乎並不缺乏需求本身。很明顯，你超出了你的指導而且你沒有踩剎車 - 你需要在第一季度以高水平踩下晶圓廠的剎車，這仍然提供遠遠超過你的指導的毛利率。那麼您能否描述一下是什麼推動了第一季度的庫存增長？在本季度末，這是否有點令人意外？還是——它真的是在為你在下半年在不同終端市場看到的情況做準備？然後我對碳化矽進行了跟進。

Yes. For sure, I take this question. Our Q1 came better than expected in terms of revenues, let's say, mainly impacted by 2 elements. The first one was better mix in respect to what was expected. And on the other side, let's say, a better price environment. It Means that at the end, let's say, we were modeling pricing, already started to decline in some areas, while instead this did not happen. This and a positive impact on the 2 sides. And I would say, on one side, on the revenues. On the other side, of course, on the gross margin.

是的。當然，我接受這個問題。我們第一季度的收入好於預期，比方說，主要受兩個因素的影響。第一個是關於預期的更好的組合。另一方面，比方說，更好的價格環境。這意味著最後，比方說，我們正在對定價進行建模，在某些領域已經開始下降，而這並沒有發生。這對雙方都產生了積極的影響。我會說，一方面，關於收入。另一方面，當然是毛利率。

Anyway, our Q1, let's say, inventory, as you rightly said, came above the expectation. They are higher because we were 100 -- we are at 122 days compared the starting point at the end of Q4 that was in the range of 100 days. This level is mainly associated to excess of inventory that has been done in Personal Electronics and in consumer, where the market were weaker than what we were expecting. So we were, let's say, producing, the revenues came a little bit in a different way, let's say, with better mix, better pricing but lower quantities in some product lines. And this, of course, bring an increase in our inventory that was not forecasted, let's say, at the beginning of the quarter.

無論如何，我們的第一季度，比方說，正如您所說的那樣，庫存超出了預期。它們更高，因為我們是 100 天——與第四季度末在 100 天範圍內的起點相比，我們處於 122 天。這一水平主要與個人電子產品和消費品市場的庫存過剩有關，這些市場比我們預期的要疲軟。因此，比方說，我們在生產，收入以不同的方式出現，比方說，更好的組合，更好的定價，但某些產品線的數量更少。當然，這會導致我們的庫存增加，這在本季度初沒有預料到。

We will correct, during the year, such excess where we will land, let's say, at the end of the year. Also considering that we will enter, let's say, the allotted 300-millimeter of the week that we will have in Agrate 300-millimeter. At the end, we do think that at the end of the year, let's say, how -- the number of days of our inventory, let's say, will be slightly above the number of days that we have, let's say, at the end of 2022. So it will be something in the range of 105, 110 days of inventory at the end of 2023.

我們將在這一年中糾正這種過剩的情況，比方說，我們將在年底登陸。還考慮到我們將進入，比方說，我們將在 Agrate 300 毫米中獲得的一周分配的 300 毫米。最後，我們確實認為，在今年年底，比方說，我們的庫存天數，比方說，將略高於我們擁有的天數，比方說，在年底到 2022 年。所以到 2023 年底，庫存天數將在 105 到 110 天之間。

And then just quickly on silicon carbide. I mean, Jean-Marc to the comments you made in your prepared opening, now at $1.2 billion for 2023, let's say, maybe 20% uplift relative to what you were explaining to us in the second half of last year. It's a 60% to 70% year-on-year growth rate relative to 2022, and that's coming at a time when some of your peers seem to be struggling in terms of their silicon carbide ramp. So where are you able to get this extra capacity out? You also mentioned during your prepared comments that SIC remains pretty constrained, although maybe that was a high-level comment. Where are you able to eke out an extra 20% of wafer or module supply in silicon carbide?

然後快速使用碳化矽。我的意思是，Jean-Marc 對你在準備好的開幕式上發表的評論表示，現在 2023 年為 12 億美元，比方說，相對於你在去年下半年向我們解釋的內容，可能會增加 20%。相對於 2022 年，這是 60% 到 70% 的同比增長率，而這是在您的一些同行似乎在碳化矽斜坡方面苦苦掙扎的時候出現的。那麼您可以從哪裡獲得這些額外的容量呢？您在準備好的評論中還提到，SIC 仍然非常受限，儘管這可能是一個高級別的評論。您從哪裡能夠額外擠出 20% 的碳化矽晶圓或模塊供應？

Marc here. First of all, internally, now we have really our 4 manufacturing location. So 2, 4 fabs, so Singapore and Catania and 2 for assembly, so Shenzhen and Bouskoura in Morocco running altogether in full mass production. And thanks to the CapEx we spent in H2 2022 to increase the capacity. Well, then we have diversified our raw material source because also we anticipated some difficulties of one wonders in the sum of amount for last year. So we secure ourselves in terms of success.

馬克在這裡。首先，在內部，現在我們真的有 4 個製造地點。所以 2、4 個晶圓廠，新加坡和卡塔尼亞，還有 2 個組裝，所以深圳和摩洛哥的 Bouskoura 一起在全面量產。多虧了我們在 2022 年下半年用於增加產能的資本支出。好吧，那麼我們已經多樣化了我們的原材料來源，因為我們也預計了去年總金額中的一個奇蹟的一些困難。因此，我們在成功方面確保自己。

Well, and last, okay, I think it's important I mentioned that now the demand we have is really well diversified. Our main customer is representing below 65% of the total revenue we expect. And we have the program we won during the past 2, 3 years that are starting to generate significant revenue for ST.

好吧，最後，好吧，我認為我提到的很重要，現在我們的需求非常多樣化。我們的主要客戶占我們預期總收入的 65% 以下。我們擁有在過去 2、3 年中贏得的項目，這些項目開始為 ST 帶來可觀的收入。

So all in all, I would like simply to confirm that we invested last year, and we have executed the capacity implementation properly. Now with 4 locations running full speed, we have our demand well diversified and new program ramping up on top of the main customer we have. And we have secured worldwide with different sources located in different places in the world to secure our ramp up, waiting for our internal stocks to be ready and to sustain our ambition to grow above $2 billion and towards $5 billion.

所以總而言之，我想簡單地確認一下我們去年的投資，我們已經正確地執行了產能實施。現在有 4 個地點全速運行，我們的需求非常多樣化，新項目在我們擁有的主要客戶之上不斷增加。我們在全球範圍內通過位於世界不同地方的不同資源獲得保障，以確保我們的增長，等待我們的內部庫存準備就緒，並維持我們增長超過 20 億美元並邁向 50 億美元的雄心。

The next question comes from the line of Sztabowicz, Sébastien with Kepler Cheuvreux.

下一個問題來自 Sztabowicz、Sébastien 和 Kepler Cheuvreux 的系列。

On silicon carbide, could you please make an update on your technology road map there? And you mentioned that the Gen 4 is like strong, if I'm right, by H2 this year. Could you provide a little bit of timing for the ramp of Gen 4, but also Gen 5? And what kind of improvement are you expecting from Gen 4 and Gen 5 versus your third generation of silicon carbide technology?

關於碳化矽，你能更新一下你的技術路線圖嗎？你提到過 Gen 4 很強大，如果我是對的，今年下半年。您能否為第 4 代和第 5 代提供一點時間？與第三代碳化矽技術相比，您期望第 4 代和第 5 代有什麼樣的改進？

And the follow-up is on the inventory level on your 2 main markets, automotive and industrial. Where are the inventories standing versus the normative level?

接下來是關於汽車和工業這兩個主要市場的庫存水平。庫存與規範水平相比處於什麼水平？

So the Generation 4 will be maturity, what we classify maturity mass production in the second half of 2023, so -- and ready for production in 2024. And the timing will be, let's say, consistent with the qualification time we need to do on the automotive, let's say, market. So we will ramp up smoothly in 2024, okay, according to the timing of qualification. But internally, this technology will be qualified by the second half of this year.

因此，第 4 代將成熟，我們將其歸類為 2023 年下半年的成熟量產，因此 - 並準備在 2024 年進行生產。而且時間將與我們需要做的資格認證時間一致汽車，比方說，市場。所以我們2024年會順利的爬坡，好吧，根據排位賽的時間安排。但在內部，這項技術將在今年下半年獲得認證。

The Generation 5 will follow basically 18 months later. Generation 4 and Generation 5 are still planar technology, where we significantly improved the performance and with absolutely, okay, no gap versus the best-in-class technology we can assess. Well, then we will move to Generation 6, okay, where we will make a disruption. But okay, I will comment in due time definitively. So again, Generation 4 and 5, let's say, will improve the performance of -- on the device that is enabled by the technology.

第 5 代基本上會在 18 個月後推出。第 4 代和第 5 代仍然是平面技術，我們在其中顯著提高了性能，並且與我們可以評估的同類最佳技術絕對沒有差距。好吧，然後我們將轉移到第 6 代，好吧，我們將在那裡進行破壞。但是好吧，我會在適當的時候做出明確的評論。因此，再說一遍，第 4 代和第 5 代將提高該技術支持的設備的性能。

In parallel, do not forget that we will implement 2 important, let's say, process change. The 200-millimeter, that is not a piece of cake for silicon carbide. I don't want to be technical, but it is not a piece of cake. You have many mechanical effects, which are not so easy to control when you increase the wafer size of silicon carbide is point number one. And for us, still the point number two, we will implement the SmartSIC technology, which will be really an important add-on that will enable better performance on the device, lower cost of the solution at substrate level and will make easier the conversion to the 200 millimeter.

與此同時，不要忘記我們將實施 2 個重要的流程變更。 200 毫米，這對碳化矽來說可不是小菜一碟。我不想成為技術人員，但這不是小菜一碟。你有很多機械效應，當你增加碳化矽的晶圓尺寸時，這些效應並不那麼容易控制是第一點。對於我們來說，仍然是第二點，我們將實施 SmartSIC 技術，這將是一個非常重要的附加組件，它將在設備上實現更好的性能，降低基板級解決方案的成本，並使轉換更容易200 毫米。

So 2 technology in the next 3 years implementation and 2 major process change, 200-millimeter and SmartSIC introduction. And then, okay, later on, we will introduce the Generation 6, which will be a discussion in terms of architecture of the transistor.

因此，在未來 3 年實施 2 項技術和 2 項主要工藝變更，200 毫米和 SmartSIC 引入。然後，好的，稍後，我們將介紹第 6 代，這將是在晶體管架構方面的討論。

And on the inventory question on auto industrial, where are we standing right now?

關於汽車工業的庫存問題，我們現在站在哪裡？

Inventory, you mean in the channel, I suppose the...

庫存，你的意思是在渠道中，我想...

Yes, definitely in the channel.

是的，絕對在頻道中。

Well, you know that we monitor pretty well the inventory and the distribution channel. Well, here, okay, it's clearly following the market dynamic, okay. When you are through distribution addressing mainly, okay, for us, the industrial market, we are coming back now to a normal coverage in terms of inventory. So it means we have inventory turn between term of 3 to 4, whatever are the devices, microcontrollers, analog, power overall. Of course -- and of course, we have some inventory which are, let's say, as upper limit that we access generally like MEMS. Why? Because they have been impacted by the Personal Electronic market dynamics.

嗯，你知道我們很好地監控庫存和分銷渠道。那麼，在這裡，好吧，它顯然是在跟隨市場動態，好吧。當你主要通過分銷尋址時，好吧，對於我們來說，工業市場，我們現在正在恢復到庫存方面的正常覆蓋。所以這意味著我們的庫存周轉時間為 3 到 4，無論設備、微控制器、模擬、電源是什麼。當然——當然，我們有一些庫存，比方說，我們通常像 MEMS 一樣訪問上限。為什麼？因為他們受到了個人電子市場動態的影響。

So that's the reason why, okay, we will control in our, let's say, revenue target of inventory at distribution level. Again, except the inventory in front of consumer market, we do not detect any excess of inventory. Inventory, our distribution, are just at the level for distributors to manage term business, to manage the situation, which is a normalized situation.

所以這就是為什麼，好吧，我們將控制我們的，比方說，分銷級別的庫存收入目標。同樣，除了消費市場前面的庫存，我們沒有發現任何庫存過剩。庫存，我們的分銷，只是在經銷商管理術語業務的水平上，管理情況，這是一種常態化的情況。

Well, then about our Tier 1 and, let's say, the supply chain, supplying the carmaker. At this stage, especially, of course, on all the technology driven by smart mobility and electrification, digitalization, we do not detect absolutely any inventory in excess. On legacy automotive, it's difficult to say because, for us, we are supplying 40-nanometer, we are supplying the BCD9, BCD8. And the demand is still very, very strong. So we do believe that on this kind of technology cluster, there are no inventory in excess across the supply chain.

那麼，關於我們的第 1 層，比方說，供應鏈，供應汽車製造商。在這個階段，尤其是在智能移動和電氣化、數字化驅動的所有技術方面，我們絕對沒有發現任何過剩的庫存。在傳統汽車上，很難說，因為對我們來說，我們提供 40 納米，我們提供 BCD9、BCD8。而且需求仍然非常非常強勁。所以我們確實相信，在這種技術集群上，整個供應鏈都沒有庫存過剩。

The next question comes from the line of Lee Simpson with Morgan Stanley.

下一個問題來自 Lee Simpson 與 Morgan Stanley 的對話。

Just trying to sort of tease out a little bit more the pricing headwinds you're talking about going into second half of the year. So I think as others have suggested, we are seeing some signs of slowing demand in MOSFET, lack of tightness being seen in various areas in power semis. And at the same time, the foundries are talking about slowing order book for autos. I'm just trying to understand which side of the fence or both perhaps are impacting in the second half and what that means for order book momentum, particularly Q3 of this year?

只是想稍微梳理一下你所說的進入下半年的定價逆風。因此，我認為正如其他人所建議的那樣，我們看到了 MOSFET 需求放緩的一些跡象，功率半導體的各個領域都缺乏緊縮。與此同時，鑄造廠正在談論放慢汽車訂單。我只是想了解圍欄的哪一側或兩者可能在下半年產生影響，這對訂單勢頭意味著什麼，尤其是今年第三季度？

And maybe if I could just come back to the overall backlog. I mean, you've been very good in previous quarters to talk about their relative size of the backlog to the outgoing business over the next few quarters. Could you maybe just update us and give us some relative size of backlog?

也許我可以回到整個積壓工作。我的意思是，你在前幾個季度一直很好地談論他們在未來幾個季度的積壓業務與即將離任的業務的相對規模。你能不能給我們更新一下，給我們一些積壓的相對大小？

Well, so I will start with the backlog. So today, the total backlog we have in our hand requested by customers represents about 6 quarters of revenue. I would like to say that it is pretty on balance versus the end market we address. Again, on automotive overall, on power energy and professional B2B industrial, the backlog coverage we have are well above these 6 quarters. And the order entry we are seeing now are loading smoothly year 2024. Why? Because the lead time we can provide to this customer are still well above 1 year. So moving forward, quarter-after-quarter, they are loading our backlog consistently with the end demand, which is very strong, and the lead time we can offer.

好吧，所以我將從積壓開始。因此，今天，我們手頭上客戶要求的總積壓訂單約佔收入的 6 個季度。我想說的是，與我們所針對的終端市場相比，它非常平衡。同樣，在汽車整體、電力能源和專業 B2B 工業方面，我們的積壓覆蓋率遠高於這 6 個季度。我們現在看到的訂單條目在 2024 年順利加載。為什麼？因為我們可以提供給這個客戶的交貨時間仍然遠遠超過 1 年。因此，一個季度又一個季度地向前推進，他們正在根據非常強勁的最終需求和我們可以提供的交貨時間，始終如一地加載我們的積壓訂單。

Then you have another dynamic where the demand is solid, growing with existing backlog, but where clearly we are reducing our lead time. And clearly, when we are reducing our lead time, the customer order, they take into account. So they are temporarily reducing their order in order to have a backlog coverage, which is consistent with our lead time. And here, the coverage, okay, will be between 3 to 4 quarter total backlog.

然後你有另一種動態，需求穩定，隨著現有積壓而增長，但顯然我們正在縮短交貨時間。很明顯，當我們減少交貨時間時，他們會考慮客戶訂單。因此，他們暫時減少了訂單，以應對積壓，這與我們的交貨時間一致。在這裡，覆蓋範圍，好的，將在 3 到 4 個季度的總積壓之間。

And on the consumer industrial on servers, okay, on this kind of activity, we are going in this direction. But then you have some markets where, clearly, there is a weak end demand. There is clearly inventory correction. And then, okay, the backlog we have is reducing and the order we have are low. It is typically the Computer Peripheral, computer-related and the Personal Electronics. And here, we are going back to a normal situation where we have, for some customers which are, let's say, well in control with their supply chain, they give us a rolling 2-year visibility. And there is some customers that are giving usual 3- to 4-quarter visibility.

在服務器上的消費行業，好的，在這種活動中，我們正朝著這個方向前進。但是你有一些市場，很明顯，終端需求疲軟。存在明顯的庫存修正。然後，好吧，我們的積壓正在減少，我們的訂單也很低。它通常是計算機外圍設備、計算機相關和個人電子產品。在這裡，我們將回到正常情況，對於一些可以很好地控制其供應鏈的客戶，他們為我們提供了 2 年的滾動可見性。並且有一些客戶提供通常的 3 到 4 個季度的可見性。

So we -- I have to say if I would like to classify overall our backlog, we are 6 quarters. We do believe we will finish the year 2023 with the coverage will be between 4 to 5 quarters, which is still above a normal situation. Normal situation is 3 to 4 quarters. So this is dynamic, okay, I can tell you. And this is totally consistent, okay, with the indication we have provided to the year to reach at the midpoint, $17.4 billion, but still with the possibility to go to the upper range.

所以我們 - 我不得不說，如果我想對我們的積壓工作進行整體分類，我們有 6 個季度。我們確實相信我們將在 2023 年結束時覆蓋 4 到 5 個季度，這仍然高於正常情況。正常情況是3到4節。所以這是動態的，好吧，我可以告訴你。這與我們為今年提供的達到中點 174 億美元的指示完全一致，好吧，但仍有可能達到上限。

Does this answer your question?

這回答了你的問題了嗎？

Yes. Just wanted to circle back on perhaps the evidence or perhaps the product categories where you're seeing those pricing headwinds, in particular, as it relates to autos. I mean are we vectoring more on power semis? Or do we see this starting to happen as perhaps a peak pricing dynamic around control?

是的。只是想回顧一下您看到這些定價逆風的證據或產品類別，特別是與汽車相關的產品類別。我的意思是我們是不是在動力半成品上做更多的引導？或者我們是否認為這種情況開始發生可能是圍繞控制的峰值定價動態？

To come back to your MOSFET point. MOSFET is part of the power supply or power management of some application in the field of servers and computers. Of course, okay, here, as this market is softening or is weakening clearly, okay, the demand for this specific MOSFET is weakening. But MOSFET is very large, okay. You have high voltage. You have low-voltage MOSFET. Then you have IGBT. You have the silicon carbide. Again, and the MOSFET are going everywhere and -- are going everywhere in all the applications.

回到您的 MOSFET 點。 MOSFET是服務器和計算機領域某些應用的電源或電源管理的一部分。當然，好吧，這裡，隨著這個市場正在走軟或明顯走弱，好吧，對這個特定 MOSFET 的需求正在減弱。但是MOSFET很大，好吧。你有高壓。你有低壓 MOSFET。然後你有IGBT。你有碳化矽。同樣，MOSFET 無處不在——在所有應用中無處不在。

And I can confirm to you that on MOSFET, overall, as they're seeing all the automotive application and importantly, energy storage, energy conversion, energy transportation, the demand is very strong and the capacity are fully loaded. And we are still struggling to support our customer at the level of what the demand on IGBT, on silicon carbide, on VI power, vertical integrated power, on BCD9 for power switches and on low voltage and high voltage MOSFET as well, everywhere it is for power management for automotive and industrial application. Yes, on computer, the demand is weak, but this is not a surprise.

我可以向你確認，總體而言，在 MOSFET 上，因為他們看到了所有汽車應用，重要的是，能量存儲、能量轉換、能量傳輸，需求非常強勁，產能滿載。我們仍在努力滿足客戶對 IGBT、碳化矽、VI 電源、垂直集成電源、用於電源開關的 BCD9 以及低壓和高壓 MOSFET 的需求水平，無處不在用於汽車和工業應用的電源管理。是的，在計算機上，需求疲軟，但這並不奇怪。

Thank you very much. And we have exceeded the time. So I apologize, this was the last question. Thank you very much all of you. This will end our call session this time.

非常感謝。而我們已經超過了時間。所以我很抱歉，這是最後一個問題。非常感謝大家。這將結束我們這次的通話會話。

Thank you.

謝謝。

Thank you.

謝謝。

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，也感謝您參加會議。您現在可以斷開線路。再見。