高塔半導體 (TSEM) 2019 Q4 法說會逐字稿

Welcome to the TowerJazz Fourth Quarter and Full Year 2019 Results Conference call. (Operator Instructions) As a reminder, this conference is being recorded February 18, 2020. Joining us today are Mr. Russell Ellwanger, TowerJazz's CEO; and Mr. Oren Shirazi, CFO. I would now like to turn the conference over to Ms. Noit Levi, Vice President of Investor Relations and Corporate Communications. Ms. Levi, please go ahead.

歡迎參加 TowerJazz 2019 年第四季及全年業績電話會議。（操作員說明）提醒：本次會議將於 2020 年 2 月 18 日進行錄製。今天與我們一同出席的有 TowerJazz 的執行長 Russell Ellwanger 先生和財務長 Oren Shirazi 先生。現在我謹將會議交給投資人關係和企業傳播副總裁諾伊特·列維女士。萊維女士，請繼續。

Welcome to TowerJazz financial results conference call for the fourth quarter and fiscal year of 2019.

歡迎參加 TowerJazz 2019 年第四季及全年財務績效電話會議。

Before we begin, I would like to remind you that some statements made during this call may be forward-looking and are subject to uncertainties and risk factors that could cause actual results to be different from those currently expected. These uncertainties and risk factors are fully disclosed in our forms 20-F, F-4, F-3 and 6-K filed with the Securities and Exchange Commission as well as filings with the Israeli Securities Authority. They are also available on our website. TowerJazz assumes no obligation to update any such forward-looking statements.

在開始之前，我想提醒各位，本次電話會議中作出的一些陳述可能具有前瞻性，並受到不確定性和風險因素的影響，這些因素可能導致實際結果與目前的預期結果有所不同。這些不確定性和風險因素已在我們向美國證券交易委員會提交的 20-F、F-4、F-3 和 6-K 表格以及向以色列證券管理局提交的文件中充分披露。它們也可以在我們的網站上找到。TowerJazz不承擔更新任何此類前瞻性聲明的義務。

Please note that the fourth quarter and fiscal year 2019 financial results have been prepared in accordance with U.S. GAAP. The financial tables and data in today's earnings release and in this earnings call also include certain adjusted financial information that may be considered non-GAAP financial measures under Regulation G and related resulting requirements as established with the Securities and Exchange Commission. The financial tables include a full explanation of these measures and the reconciliation of these non-GAAP measures to the GAAP financial measures.

請注意，2019 年第四季及全年財務業績均依照美國通用會計準則編製。今天發布的盈利報告和本次盈利電話會議中的財務表格和數據還包括某些調整後的財務信息，這些信息可能被視為根據 G 條例和與美國證券交易委員會制定的相關規定而製定的非 GAAP 財務指標。財務報表包含這些指標的完整解釋，以及這些非GAAP指標與GAAP財務指標的調節表。

Now I'd like to turn the call to our CEO, Mr. Russell Ellwanger. Russell, please go ahead.

現在我想把電話交給我們的執行長羅素·埃爾旺格先生。拉塞爾，請繼續。

Thank you, Noit, and thank you, everyone, for joining our call today discussing our fourth quarter and full year 2019 business and financial results as well as 2020 and beyond main growth drivers and supporting activities.

謝謝 Noit，也謝謝各位今天參加我們的電話會議，討論我們 2019 年第四季度和全年的業務和財務業績，以及 2020 年及以後的主要增長動力和支持活動。

Fourth quarter revenues were within our guidance at $306 million. We concluded 2019 with revenue at $1.234 billion generating a net profit of $90 million, with free cash flow of $119 million. We continue to maintain a healthy balance sheet and our financial situation is strong. We believe to be well positioned to participate and leverage the expected markets recovery and improving business trends. Oren Shirazi, our CFO, will provide a more in-depth review of our fourth quarter and full year 2019 financial results upon the conclusion of my remarks.

第四季營收符合預期，為 3.06 億美元。2019 年，我們的營收達到 12.34 億美元，淨利為 9,000 萬美元，自由現金流為 1.19 億美元。我們繼續保持健康的資產負債表，財務狀況穩健。我們相信，我們已做好充分準備，參與並利用預期中的市場復甦和不斷改善的商業趨勢。在我演講結束後，我們的財務長 Oren Shirazi 將對我們 2019 年第四季和全年的財務表現進行更深入的分析。

TowerJazz entered 2019 knowing Q2 would enlist a new phase for our contract with Panasonic, one which reduced circa $90 million annualized revenue against the Q1 '19 revenue run rate. Otherwise, the year began with a very positive outlook, with good backlog at all major activities of all of our business units. This outlook soon dampened due to the trade war and various inventory correction implications. With no apparent market share losses, these corrections resulted in a 25%, 18% and 25% second half '19 versus second half '18 reduction of silicon germanium, mainly data center, discrete and industrial sensors revenue, respectively. However, due to strong activities in other segments, we posted a year-over-year organic revenue growth of 5% due to strong long-term customer partnerships with a focus on growing analog and application markets.

TowerJazz 在 2019 年伊始就知道，第二季將開啟與松下公司合約的新階段，這將使該公司年化收入比 2019 年第一季的營收運行率減少約 9,000 萬美元。除此之外，今年開局非常樂觀，我們所有業務部門的所有主要業務活動都有良好的訂單儲備。由於貿易戰和各種庫存調整的影響，這種前景很快就變得黯淡。由於沒有明顯的市佔率損失，這些調整導致 2019 年下半年矽鍺（主要來自資料中心、分立元件和工業感測器）的收入與 2018 年下半年相比分別下降了 25%、18% 和 25%。然而，由於其他領域的強勁發展，我們實現了 5% 的同比增長有機收入增長，這得益於我們與客戶建立了牢固的長期合作關係，並專注於不斷增長的模擬和應用市場。

Customer forecasts and present orders indicate good overall 2020 growth, ramping sequentially through the year, which should result in significant second half 2020 versus second half 2019 financial performance.

客戶預測和現有訂單顯示 2020 年整體成長良好，並將在年內逐步加速成長，這將使 2020 年下半年的財務表現比 2019 年下半年有顯著提升。

Accordingly, we expect year-over-year revenue growth in 2020 with low double-digit organic growth achieved through higher utilization levels in our factories, including the ramp of our newer 200-millimeter technology platforms and offerings, an increase in 300-millimeter customer demand supported by capacity increases organically for short to midterm and in addition, capacity growth through M&As for longer-term demand.

因此，我們預計 2020 年收入將同比增長，透過提高工廠的利用率，實現兩位數的低有機增長，包括我們新的 200 毫米技術平台和產品的量產，以及 300 毫米客戶需求的增長（短期至中期產能的有機增長將予以支持），此外，透過併購實現產能增長以滿足長期需求。

To summarize 2019 to the best granularity that we have, the breakdown of the $1.23 billion revenue per end market application was the following: infrastructure revenue, which is predominantly RF optical, was at $136 million. Wireless, predominantly RF SOI, silicon germanium PAs, silicon germanium LNAs and RF CMOS controllers for mobile was at $263 million. Automotive was $129 million. Industrial, predominantly image sensors, was $61 million. Aerospace and defense, $51 million. High-end photography, $50 million. Medical, $47 million. Consumer, including computing, power management for home appliances and general accessories and security cameras, $120 million. Additional power device revenues were $262 million, of which we don't have exact end market application use, but serve multiple of the above-mentioned segments such as automotive, industrial, wireless and consumer.

為了盡可能詳細地總結 2019 年的情況，12.3 億美元的終端市場應用收入細分如下：基礎設施收入（主要為射頻光纖）為 1.36 億美元。無線領域，主要包括射頻SOI、矽鍺功率放大器、矽鍺低雜訊放大器和用於行動裝置的射頻CMOS控制器，銷售額為2.63億美元。汽車業產值為1.29億美元。工業領域（主要是影像感測器）的銷售額為 6,100 萬美元。航空航天和國防，5100萬美元。高端攝影，價值 5000 萬美元。醫療，4700萬美元。消費品，包括電腦、家用電器電源管理、通用配件和安防攝像頭，1.2億美元。額外的功率裝置收入為 2.62 億美元，我們尚不清楚其確切的最終市場應用用途，但其服務於上述多個領域，例如汽車、工業、無線和消費性電子。

Another grouping of mixed signal devices totaled about $115 million, which serve consumer, automotive, wireless and a variety of IoT applications. Another view of our market is technology-based for our 3 corporate focuses. Seamless connectivity, which relates to RF infrastructure and RF signal for mobile platforms, represented 31% of our corporate revenues. Green everything, energy efficiency, served by power management ICs and power discretes, was 38% of our corporate revenues. Interactive spark systems, which relates to our sensors offerings, represented about 16% of our corporate revenues. The rest of our business, which was about 15% of corporate revenue, served various mixed signal applications. The products within this group include MCUs, ASICS, RFID tags, logic standard cells and certain special CMOS embedded memories. These products are in computing, industrial, consumer, automotive end markets and aerospace and defense.

另一組混合訊號裝置的總價值約為 1.15 億美元，這些元件服務於消費性電子、汽車、無線和各種物聯網應用。從另一個角度來看，我們的市場是基於技術的，這體現在我們三大企業重點領域。與行動平台的射頻基礎設施和射頻訊號相關的無縫連接，占我們公司收入的 31%。綠色環保、能源效率，以及電源管理積體電路和功率分立元件的應用，占我們公司營收的 38%。與我們的感測器產品相關的互動式火花系統約占我們公司收入的 16%。我們剩餘的業務（約占公司收入的 15%）服務於各種混合訊號應用。此組產品包括微控制器 (MCU)、專用積體電路 (ASIC)、無線射頻識別 (RFID) 標籤、邏輯標準單元和某些特殊 CMOS 嵌入式記憶體。這些產品應用於電腦、工業、消費品、汽車終端市場以及航空航太和國防領域。

Looking into our analog IC business unit that includes both RF high-precision analog and power management, in 2019, we experienced strong growth in RF SOI for mobile of over 40% revenue growth year-over-year. This is a result of a strong and successful ramp of our 300-millimeter technology, which has allowed us to gain market share in high-end applications for which more advanced digital integration may be required, built on top of a strong and growing base of advanced 200-millimeter platform application use, for which 200 millimeter, we saw a 24% H2 '19 versus H2 '18 revenue growth. During the year, we made available to customers a new 200-millimeter RF SOI technology, which we named QT9, that delivers strong performance in power handling for 5G applications. We won a large number of new product designs with this new technology that are now prototyping and beginning to ramp.

綜觀我們的類比 IC 業務部門（包括射頻高精度類比和電源管理），2019 年，我們在行動射頻 SOI 業務方面實現了強勁成長，營收年增超過 40%。這是由於我們的 300 毫米技術取得了強勁而成功的成長，使我們能夠在高端應用領域獲得市場份額，這些應用可能需要更先進的數位整合。這建立在我們強大的、不斷增長的先進 200 毫米平台應用基礎之上，在 2019 年下半年，我們的 200 毫米平台收入比 2018 年下半年增長了 24%。今年，我們向客戶推出了新的 200 毫米射頻 SOI 技術，我們將其命名為 QT9，該技術在 5G 應用的功率處理方面表現出色。我們利用這項新技術贏得了大量新產品設計項目，這些項目目前正在進行原型製作並開始量產。

We are investing $20 million of capability CapEx to enable volume production of the advanced features of this platform. This 200-millimeter RF SOI new platform will further augment the growth from our 300-millimeter RF SOI platform, which is enabled this year by the $100 million 300-millimeter capacity investment that we previously announced. Our silicon germanium optical business experienced an inventory correction in the data center market. The effect was a decline of silicon germanium revenue of about 8% year-over-year. Due to lead time, orders are offset from revenue by roughly 1.5 quarters. So while orders slowed strongly in the first half due to the inventory correction, most of the revenue reduction was felt in the second half of the 2019 year.

我們正在投資 2000 萬美元用於能力建設，以實現該平台先進功能的批量生產。這款 200 毫米射頻 SOI 新平台將進一步增強我們 300 毫米射頻 SOI 平台的成長，而該平台的實現得益於我們先前宣布的 1 億美元 300 毫米產能投資。我們的矽鍺光元件業務在資料中心市場經歷了庫存調整。其結果是矽鍺收入年減約 8%。由於交貨週期，訂單到帳時間比收入大約晚 1.5 個季度。因此，儘管由於庫存調整，上半年訂單大幅放緩，但大部分收入下降是在 2019 年下半年感受到的。

By the same lead time reasoning, while we are seeing recovery in orders now, particularly for 5G infrastructure and as well as signs of depleting inventories in the 100 gigabit per second data center devices, according to forecasts, we expect a SiGe revenue growth of more than 20% in the second half of the year of 2020 as compared to the first half.

按照相同的提前期邏輯，雖然我們現在看到訂單正在復蘇，特別是 5G 基礎設施訂單，以及每秒 100 千兆比特資料中心設備的庫存正在減少的跡象，但根據預測，我們預計 2020 年下半年 SiGe 的收入將比上半年增長 20% 以上。

In 2019, we won a new product design from all major optical SiGe customers on our latest platform, H5, targeting 200-gigabit per second and 400-gigabit per second standards and beyond. Several of these products have successfully prototyped in 2019, and several others are now in design, positioning us well as these new standards come online over the next few years. In the area of silicon photonics in 2019, we announced that one of our customers, Inphi, had begun shipping production volumes for 100G data center connectivity and announced that we are jointly developing technology for next-generation silicon photonics products. We anticipate additional announcements related to progress with silicon photonics customers in 2020, positioning us for strong growth in the years to come.

2019 年，我們憑藉最新的 H5 平台贏得了所有主要光學 SiGe 客戶的新產品設計，目標是達到每秒 200 吉比特和每秒 400 吉比特的標準及更高標準。這些產品中有幾款已於 2019 年成功完成原型製作，另有幾款正在設計中，這使我們能夠在未來幾年內隨著這些新標準的上線而佔據有利地位。2019 年，在矽光子學領域，我們宣布我們的客戶之一 Inphi 已開始批量交付 100G 資料中心連接產品，並宣布我們正在共同開發下一代矽光子學產品技術。我們預計 2020 年將發布更多與矽光子學客戶進展相關的公告，這將使我們在未來幾年實現強勁成長。

The main growth driver for this platform are speeds transitioning from 100-gigabit per second to 400-gigabit per second, where this technology is likely to be more widely adopted due to its power, cost and performance benefits over traditional discrete optical assemblies. We have over 30 active customers at different stages in our silicon photonics production funnel with more than 20 that have taped out for a variety of applications, some quite novel and market disruptive. We expect revenues to become more significant by the end of 2020 and ramp substantially in 2021 and beyond.

該平台的主要成長動力是速度從每秒 100 吉比特過渡到每秒 400 吉比特，由於其在功耗、成本和性能方面優於傳統的獨立光組件，這項技術可能會得到更廣泛的應用。我們在矽光子元件生產流程中擁有 30 多個活躍客戶，處於不同的階段，其中 20 多個客戶已經完成了晶片流片，用於各種應用，有些應用相當新穎，具有顛覆性。我們預計到 2020 年底營收將變得更加顯著，並在 2021 年及以後大幅成長。

Our power IC business experienced strong organic growth of 19% in 2019 over 2018. This was primarily driven by automotive battery management and an initial ramp of our highly differentiated 65-nanometer BCD platform on 300-millimeter. We announced new 140-volt non-SOI Devices at 180-nanometer for 200-millimeter BCD platform, which, to our knowledge, supports the highest voltages within 180-nanometer standard for non-SOI BCD foundry processes.

2019 年，我們的功率 IC 業務實現了強勁的內生成長，較 2018 年成長了 19%。這主要是由汽車電池管理以及我​​們在 300 毫米製程上高度差異化的 65 奈米 BCD 平台的初步推廣所驅動的。我們發布了適用於 200 毫米 BCD 平台的 180 奈米 140 伏特非 SOI 裝置，據我們所知，這是非 SOI BCD 代工製程 180 奈米標準中支援的最高電壓。

Providing these higher voltages without SOI results in a strong cost advantage. And these are increasingly important in many automotive and industrial applications, where we see strong market potential. We have won initial customers, including 2 Tier 1 customers that are designing in the platform now.

無需SOI即可提供這些更高的電壓，從而帶來顯著的成本優勢。這些技術在許多汽車和工業應用領域越來越重要，我們看到了它們強大的市場潛力。我們已經贏得了首批客戶，其中包括 2 位一級客戶，他們目前正在該平台上進行設計。

To summarize the main growth drivers for our analog IC business unit for 2020 and beyond, 5G is the most significant driver for our RF business for this year and for the next few years. 5G impacts both our mobile business, with RF content, is projected to be at 70% CAGR for the coming years according to Yole; and infrastructure, where we are already seeing silicon germanium orders increase for optical connection to serve 5G deployments around the world.

總結我們模擬積體電路業務部門在 2020 年及以後的主要成長驅動因素，5G 是我們射頻業務今年以及未來幾年最重要的驅動因素。5G 對我們的行動業務和基礎設施都有影響，根據 Yole 的預測，未來幾年射頻內容的複合年增長率將達到 70%；我們已經看到矽鍺訂單增加，用於光纖連接，以服務世界各地的 5G 部署。

Recovery from the inventory correction in our optical SiGe data center market, driving shipments in the second half of 2020 will provide good opportunity for additional growth this year. Looking beyond this year, we expect our SiGe data center to continue along the rate of data transmission growth to the Internet, which most industry analysts assume will continue at approximately 15% CAGR. In addition, automotive is a strong growth driver. In RF today, we have deployed RF radar in several vehicle models and are working now with several customers on LIDAR techniques that make use both of our silicon germanium as well as our new silicon photonics platforms for the future increasing number and capabilities of autonomous vehicles. And as mentioned, we are leading with our SiPho platform capabilities.

2020 年下半年，隨著光學 SiGe 資料中心市場庫存調整的結束，出貨量將有所回升，這將為今年的進一步成長提供良好的機會。展望今年之後，我們預計我們的 SiGe 資料中心將繼續保持與網路資料傳輸成長速度一致的成長勢頭，大多數產業分析師認為這一成長速度將繼續保持約 15% 的複合年增長率。此外，汽車產業也是強勁的成長動力。如今，我們在射頻領域已在多款車型中部署了射頻雷達，目前正與多家客戶合作開發雷射雷達技術，利用我們的矽鍺平台和新型矽光子平台，以滿足未來日益增長的自動駕駛汽車的數量和功能需求。如同前面提到的，我們憑藉 SiPho 平台的功能處於領先地位。

In power ICs, our strong traction for the 65-nanometer 300-millimeter BCD platform in the market provided us with a full funnel of opportunities that will ramp in 2020 and beyond and promise strong growth in power ICs for years to come, providing additional ROI for 300-millimeter capacity growth. We also see automotive as a main growth driver, as previously discussed, the strong growth we experienced in 2019 from battery management electrical vehicles, and we anticipate further growth as more of the automotive fleet moves to electric drive, and as we deploy more advanced high-voltage technologies, such as the 140-volt non-SOI process.

在功率積體電路領域，我們憑藉 65 奈米 300 毫米 BCD 平台在市場上的強勁勢頭，為我們提供了豐富的機遇，這些機遇將在 2020 年及以後逐步擴大，並有望在未來幾年內推動功率集成電路的強勁增長，從而為 300 毫米產能的增長帶來額外的投資回報率。我們也認為汽車產業是主要的成長驅動力，正如先前討論的那樣，我們在 2019 年經歷了電動車電池管理業務的強勁成長，我們預計隨著更多汽車車隊轉向電動驅動，以及我們部署更先進的高壓技術（例如 140 伏特非 SOI 製程），將會有進一步的成長。

Moving to our sensors business unit, despite an organic revenue decline of about 20% in the industrial sensor market, predominantly a consequence of the trade war, we were able to compensate to a great extent, to have a decrease of 4% year-over-year organic revenues. The said compensation was via the growth of our x-ray medical sensors market and our high-end visible camera market. This growth should continue in 2020. And with an expected recovery in the industrial sensor market, we target a double-digit organic growth in this business in 2020.

再來看我們的感測器業務部門，儘管工業感測器市場的有機收入下降了約 20%，這主要是貿易戰造成的，但我們在很大程度上彌補了這一損失，使有機收入比去年同期下降了 4%。上述補償是透過我們X光醫療感測器市場和高階可見光相機市場的成長實現的。這種成長勢頭預計將在2020年繼續保持。隨著工業感測器市場的預期復甦，我們預計 2020 年該業務將實現兩位數的內生成長。

2019 was an exciting year for our future, both in state-of-the-art technology developments and in customer engagements. As announced, we have released our 300-millimeter backside illumination hybrid bonding stack wafer technology with copper to copper electrical contacts at a pitch smaller than 2.5 micron, the smallest in the world. This technology allows a connection of a BSI sensor to a CMOS logic and analog wafer at the pixel level. We won 2 major customers that are using this technology for the mobile time-of-flight market, both for face recognition and front-looking 3D applications. These products will grow into mass volume production in 2022. The same technology will be used with our existing customers for high-end photography market, both in high-end DSLR and mirrorless cameras and in cinematography.

2019 年對我們的未來來說是令人興奮的一年，無論是在尖端技術開發方面，還是在客戶互動方面。正如我們所宣布的那樣，我們推出了 300 毫米背面照明混合鍵合堆疊晶圓技術，其銅對銅電觸點間距小於 2.5 微米，是世界上最小的。這項技術允許在像素級將 BSI 感測器連接到 CMOS 邏輯和類比晶圓。我們贏得了 2 位主要客戶，他們正在將這項技術應用於行動飛行時間市場，用於人臉辨識和前視 3D 應用。這些產品將於 2022 年實現大規模量產。我們將把這項技術應用於我們現有的高端攝影市場客戶，包括高端單眼相機、無反光鏡相機和電影攝影領域。

In addition, we engage with large optical fingerprint sensor providers on the development of under OLED and under LCD sensors, utilizing our high-performing CIS technologies in our 200-millimeter fabs at the 0.18-micron technology node. These products are expected to ramp in the second half of this year and to further grow to high volumes in 2021 and beyond.

此外，我們還與大型光學指紋感測器供應商合作，開發 OLED 下和 LCD 下感測器，利用我們在 200 毫米晶圓廠中採用 0.18 微米技術節點的高性能 CIS 技術。預計這些產品將在今年下半年開始量產，並在 2021 年及以後進一步實現高產量。

Looking at our TOPS business unit, the core of our transfer flow activities in the TOPS unit are for the discrete market. This market was soft, especially in the second half of 2019. We are now beginning to see an increase in customer forecasted demand. We have maintained and grown market share with our existing customers and have added new key customer engagements in 2019.

從我們的 TOPS 業務部門來看，我們在 TOPS 部門的核心轉運流程活動是針對離散市場。這個市場疲軟，尤其是在 2019 年下半年。我們現在開始看到客戶預測需求增加。2019 年，我們維持並擴大了與現有客戶的市場份額，並新增了重要的客戶合作關係。

We add value through, for example, advanced MOSFET codevelopments and are currently focused on a few activities in this area, among which, one, releasing advanced new split-gate super junction and advanced Trench MOSFET platforms to production, enabling our customers better position in the market, offering continually more competitive products. Two, optimizing our automotive flows, hence enabling MOSFET automotive platforms in both Fab 2 in Migdal Haemek and Fab 9 in San Antonio in this high growth segment. Three, increasing engagements on MOSFETs with Japanese Tier 1 IDMs, ramping to high-volume production in our Tonami fab while securing additional wins with target ramp through 2020. We won this business in Japan through demonstrating better performance than the incumbent and enabling features that our customers could not bring up in-house.

我們透過先進的 MOSFET 聯合開發等方式增加價值，目前專注於該領域的幾項活動，其中包括：將先進的新型分柵超結和先進的溝槽 MOSFET 平台投入生產，使我們的客戶在市場中佔據更好的地位，並提供更具競爭力的產品。第二，優化我們的汽車製造流程，從而在這個高成長領域，在米格達爾·哈埃梅克的 Fab 2 和聖安東尼奧的 Fab 9 實現 MOSFET 汽車平台。第三，加強與日本一級IDM廠商在MOSFET領域的合作，在我們位於托納米的工廠實現大規模生產，同時爭取更多訂單，目標是在2020年實現產能提升。我們透過展現比現有供應商更優異的性能，並實現客戶無法自行實現的功能，贏得了日本的這項業務。

With those activities, we expect to see growth in this segment throughout 2020. On top of our transfer flow activities, we are targeting unique business models of differentiated technologies with high margin, among which: one, development for advanced nanowire intrinsic RGB microdisplays that should bring high-margin differentiated business for both 200-millimeter and 300-millimeter substrate sizes; two, expanding our partnership with a leading TMR sensor provider by adding further differentiated capabilities in our factories; and lastly, additional MEMS high-value add programs in both our 8- and 6-inch factories, among which we expect a ramp to high volumes during the second half of this year for a differentiated MEMS microphone activity.

透過這些舉措，我們預計 2020 年該領域將持續成長。除了我們的轉移流程活動外，我們還致力於開發具有高利潤率的差異化技術的獨特商業模式，其中包括：一、開發先進的奈米線固有RGB微顯示器，這將為200毫米和300毫米基板尺寸帶來高利潤率的差異化業務；二、通過在我們的工廠增加更多差異化能力，擴大我們與領先的TMR感測器供應商的合作關係；最後，在我們8英寸和6英寸工廠中開展額外的MEMS高附加價值項目，其中我們預計今年下半年差異化MEMS麥克風業務將實現高產量。

Looking at utilizations, during in the fourth quarter, we saw the following rates. In Migdal Haemek Fab 1, our 6-inch factory was at about 70%, an increase from the previous quarter. Fab 2 was at 70%, having been the bottom quarter for discrete manufacturing. Newport Beach, California was at about 50% utilization, similar to last quarter, with an end of year begin of a SiGe recovery ramp. Our San Antonio factory Fab 9 was at 55% utilization, similar to the previous quarter, but with a 10-point increase in foundry business utilization.

從利用率來看，在第四季度，我們看到了以下比率。在 Migdal Haemek Fab 1，我們的 6 吋工廠產能利用率約為 70%，比上一季有所成長。Fab 2 的產能為 70%，而此前它是離散製造領域產能最低的四分之一。加州紐波特海灘的產能利用率約 50%，與上一季類似，年底開始 SiGe 產能恢復。我們位於聖安東尼奧的 Fab 9 工廠的產能利用率為 55%，與上一季類似，但鑄造業務的產能利用率提高了 10 個百分點。

Looking at our TPSCo fabs in Japan, utilization for the 8-inch foundry as a percentage of allotted foundry capacity according to new manufacturing agreement was about 55%, an increase compared to the previous quarter. Our 12-inch foundry utilization, 70%, an increase over the previous quarter and presently bottleneck constrained and should grow during the next month as new tools come online. I will state the present bottleneck constraint is not lithography constrained. So as these new tools come online, we'll see substantial and quick move into manufacturing.

從我們在日本的TPSCo晶圓廠來看，根據新的製造協議，8吋晶圓廠的產能利用率（佔分配的晶圓廠產能的百分比）約為55%，比上一季有所成長。我們的 12 吋晶圓廠利用率達到 70%，比上一季度有所提高，目前受到瓶頸限制，隨著新設備的上線，下個月應該會有所增長。我要說明的是，目前的瓶頸限制並非由光刻技術限制。隨著這些新工具投入使用，我們將看到它們迅速且實質地應用於製造業。

To summarize, we guide the first quarter of 2020 to be $300 million with an upward or downward range of 5%. As world citizens, we care deeply and are diligently tracking the coronavirus outbreak situation. We are in close contact with our exceptional Chinese sales force and design and application support teams as well as with our China-based customers. We are doing all within our power to help and to support. As far as business continuity, with a deep look, we currently see no impact in our supply chain. We have seen a small reduction in Q1 activities of about $3 million to $5 million revenue impact, which is already reflected in our Q1 guidance. We will update if there will be any material impacts on our business. As all human beings, we hope the coronavirus situation will be contained shortly and resolved as soon as possible with suffering minimized as much as possible.

綜上所述，我們預計 2020 年第一季營收為 3 億美元，上下浮動範圍為 5%。身為世界公民，我們深切關注並密切關注冠狀病毒疫情的發展。我們與優秀的中國銷售團隊、設計和應用支援團隊以及中國的客戶保持密切聯繫。我們正在盡一切努力提供幫助和支持。就業務連續性而言，經過深入分析，我們目前並未發現供應鏈受到任何影響。我們看到第一季業務活動略有減少，收入影響約為 300 萬至 500 萬美元，這已反映在我們的第一季業績預期中。如果對我們的業務造成任何重大影響，我們將及時更新資訊。和所有人一樣，我們希望新冠病毒疫情能盡快控制和解決，並將人們的痛苦降到最低。

To summarize, as demonstrated in present orders and in customer forecast, we believe to be well positioned to participate in and benefit from expected market recovery and the present upward business trends. We see this, meaning 2020, as an overall growth year, driven by double-digit organic growth.

總而言之，正如目前的訂單和客戶預測所表明的那樣，我們相信我們已做好充分準備，參與並受益於預期的市場復甦和當前的業務上升趨勢。我們認為，2020 年將是整體成長之年，這主要得益於兩位數的內生成長。

With that, I'd like to turn the call to our CFO, Mr. Oren Shirazi. Oren?

接下來，我想把電話交給我們的財務長奧倫‧希拉齊先生。奧倫？

Thank you, Russell, and welcome, everyone. Thank you for joining us today. I will start by providing the P&L highlights for the year ended December 31, 2019 and for the fourth quarter of 2019, and then discuss our balance sheet.

謝謝你，羅素，也歡迎各位。感謝您今天蒞臨。我將首先提供截至 2019 年 12 月 31 日的年度和 2019 年第四季的損益表摘要，然後討論我們的資產負債表。

Revenues for 2019 were $1.23 billion as compared to $1.3 billion in 2018. Nonorganic revenue were $111 million lower in 2019, of which $70 million are attributed to the March 2019 renewed Panasonic contract. This was offset by a $41 million increase year-over-year in organic revenues, reflecting 5% organic growth. We define organic revenue as total revenue, excluding revenue from Panasonic and revenue for Maxim in the San Antonio fab. Gross operating and net profits for 2019 were $230 million, $87 million and $90 million, respectively, compared to $293 million, $155 million and $136 million in 2018, respectively.

2019 年的營收為 12.3 億美元，而 2018 年為 13 億美元。2019 年非有機收入減少了 1.11 億美元，其中 7,000 萬美元歸因於 2019 年 3 月與松下續約的合約。但有機收入年增 4,100 萬美元，抵銷了上述損失，有機成長率達 5%。我們將有機收入定義為總收入，不包括松下的收入和聖安東尼奧工廠 Maxim 的收入。2019 年的營業毛利潤和淨利潤分別為 2.3 億美元、8,700 萬美元和 9,000 萬美元，而 2018 年分別為 2.93 億美元、1.55 億美元和 1.36 億美元。

EBITDA for 2019 was $299 million as compared to $362 million as of -- for 2018. Analyzing the annual margins, we see that the revenue mix and the cost structure of the company improved and we had recorded significant savings, which partially mitigated the March 2019 previously announced renewed Panasonic contract impact and the nonorganic revenue reduction.

2019 年的 EBITDA 為 2.99 億美元，而 2018 年截至目前為止為 3.62 億美元。透過分析年度利潤率，我們發現公司的收入結構和成本結構有所改善，並且我們實現了顯著的成本節約，這在一定程度上緩解了 2019 年 3 月之前宣布的與松下續約合約的影響以及非內生性收入的減少。

For example, we see that against the $111 million lower nonorganic revenue, net margins was lower only by $46 million, reflecting $65 million betterment, resulting both from the higher $41 million organic revenue as well as from an improved revenue mix and cost structure.

例如，我們看到，儘管非有機收入減少了 1.11 億美元，但淨利潤率僅減少了 4,600 萬美元，這反映出 6,500 萬美元的改善，這既得益於有機收入增加了 4,100 萬美元，也得益於收入結構和成本結構的改善。

Revenue for the fourth quarter of 2019 were $306 million as compared to $334 million in the fourth quarter of 2018. Nonorganic revenues are $36 million lower in the fourth quarter of 2019, of which $23 million are attributed to the March 2019 renewed Panasonic contract, and are offset by $8 million increase year-over-year in organic revenues, reflecting 4% growth. Revenue for the third quarter of 2019 were $312 million.

2019 年第四季營收為 3.06 億美元，而 2018 年第四季營收為 3.34 億美元。2019 年第四季非有機收入減少了 3,600 萬美元，其中 2,300 萬美元歸因於 2019 年 3 月與松下續約的合同，但有機收入同比增長 800 萬美元，抵消了這一損失，增幅達 4%。2019 年第三季營收為 3.12 億美元。

Gross operating and net profits for the fourth quarter of 2019 were $55 million, $19 million and $21 million, respectively, as compared to $58 million, $23 million and $22 million, respectively, in the prior quarter. For the fourth quarter of 2018, gross operating and net profit were $76 million, $40 million and $38 million, respectively.

2019 年第四季毛營業利潤和淨利潤分別為 5,500 萬美元、1,900 萬美元和 2,100 萬美元，而上一季分別為 5,800 萬美元、2,300 萬美元和 2,200 萬美元。2018 年第四季，毛營業利潤和淨利分別為 7,600 萬美元、4,000 萬美元和 3,800 萬美元。

EBITDA for the fourth quarter of 2019 was $75 million, similar to the $75 million presented in prior quarter and as compared to $93 million in the fourth quarter of 2018. If you analyze the quarterly margin on a year-over-year basis, you see that the cost structure of the company improved as well, and we had recorded significant savings, which partially mitigated the March 2019 previously announced renewed Panasonic contract impact and the nonorganic revenue reduction. For example, we see that against the $36 million lower nonorganic revenue, net margin is lower by $17 million only, reflecting the $19 million betterment resulting both from the higher $8 million organic revenue as well as from an improved revenue mix and cost structure.

2019 年第四季的 EBITDA 為 7,500 萬美元，與上一季的 7,500 萬美元相近，而 2018 年第四季的 EBITDA 為 9,300 萬美元。如果按年分析季度利潤率，你會發現公司的成本結構也有所改善，並且我們實現了顯著的成本節約，這在一定程度上緩解了 2019 年 3 月之前宣布的與松下續約合約的影響以及非內生性收入的減少。例如，我們看到，儘管非有機收入減少了 3,600 萬美元，但淨利潤僅減少了 1,700 萬美元，這反映了 1,900 萬美元的改善，這既得益於更高的 800 萬美元有機收入，也得益於收入組合和成本結構的改善。

I will now provide the cash flow highlights for 2019 and for the fourth quarter, and a balance sheet analysis of -- as of December 31, 2019. During 2019, the company generated $291 million of positive cash from operations and invested $172 million net in fixed assets, resulting in $119 million positive free cash flow for 2019. This is compared to $313 million cash from operations for 2018 and $170 million investment in fixed assets in 2018, which resulted in $143 million of free cash flow for 2018.

現在我將提供 2019 年和第四季的現金流量亮點，以及截至 2019 年 12 月 31 日的資產負債表分析。2019 年，該公司透過營運活動產生了 2.91 億美元的正現金流，並淨投資 1.72 億美元於固定資產，從而在 2019 年實現了 1.19 億美元的正自由現金流。相較之下，2018 年公司經營活動產生的現金流為 3.13 億美元，2018 年固定資產投資為 1.7 億美元，2018 年自由現金流為 1.43 億美元。

In the fourth quarter of 2019, cash generated from operations was $72 million as compared to $73 million in the prior quarter. And investments in property and equipment net was $44 million and $43 million in the fourth and third quarters of 2019, respectively.

2019 年第四季，經營活動產生的現金為 7,200 萬美元，而上一季為 7,300 萬美元。2019 年第四季和第三季度，房地產和設備淨投資分別為 4,400 萬美元和 4,300 萬美元。

Looking at the balance sheet. Total short-term and long-term debt presented in the balance sheet as of December 31, 2019, as well as our long-term assets increased as compared to December 31, 2018, mainly due to the implementation of accounting standard update ASU 2016-02, leases, effective January 1, 2019, which was issued in relation to leases. Additional details regarding ASU 2016-02 are included in our annual financial statement. In addition, as far as liabilities, the first 2 installments under our 2016 Series G bonds in the total amount of $38 million are scheduled to be paid during 2020, and as a result, are included as short-term maturities and short-term liabilities as of December 31, 2019.

查看資產負債表。截至 2019 年 12 月 31 日，資產負債表中列示的短期和長期債務總額以及我們的長期資產與 2018 年 12 月 31 日相比有所增加，這主要是由於實施了與租賃相關的會計準則更新 ASU 2016-02（租賃），該準則於 2019 年 1 月 11 日生效。有關 ASU 2016-02 的更多詳細信息，請參閱我們的年度財務報表。此外，就負債而言，我們 2016 年 G 系列債券的前兩期款項（總額為 3800 萬美元）計劃於 2020 年支付，因此，截至 2019 年 12 月 31 日，這些款項被計入短期到期和短期負債。

We significantly strengthened our balance sheet, including the following: our shareholders' equity reached a record of $1.35 billion, a $111 million increase as compared to December 31, 2018, mostly due to 2019 net profit. Total balance sheet increased from $1.79 billion to $1.93 billion in the end of the year. Our ratio of shareholders' equity to total assets being at 70% and our current assets ratio being 4.3x.

我們大幅加強了資產負債表，其中包括：股東權益達到創紀錄的 13.5 億美元，比 2018 年 12 月 31 日增加了 1.11 億美元，這主要歸功於 2019 年的淨利潤。年末資產負債表總額從 17.9 億美元增加到 19.3 億美元。我們的股東權益與總資產比率為 70%，流動資產比率為 4.3 倍。

Moving on to elaborate on the tax line in the P&L, I would like to describe our applicable and effective tax rate. Our U.S. affiliates, Jazz Semiconductor and TowerJazz Texas, which own our Newport Beach and San Antonio fabs, respectively, are subject to a tax rate of 21%, effective from 2018, following the U.S. tax reform. TPSCo's profits from the Japanese operations are subject to an approximate 32% tax rate. Our profits in Israel from Fab 1 and Fab 2 operations, while subject to a 7.5% tax rate, are not expected to result in any tax payments for the foreseeable future due to our approximate $1 billion historical NOLs, net losses carry forward, that may be carried forward indefinitely under Israeli law. Considering this and certain tax exemptions, discounts and credits, our all-in worldwide weighted average effective tax rate this year was 3% for the year as compared to 4% for the year ended 2018.

接下來，為了詳細說明損益表中的稅務項目，我想描述我們適用的實際稅率。我們的美國子公司 Jazz Semiconductor 和 TowerJazz Texas 分別擁有我們在紐波特海灘和聖安東尼奧的晶圓廠，根據美國稅制改革，自 2018 年起，它們需繳納 21% 的稅率。TPSCo在日本的業務利潤需繳納約32%的稅。我們在以色列的 Fab 1 和 Fab 2 工廠的利潤，雖然需繳納 7.5% 的稅，但由於我們約 10 億美元的歷史淨虧損結轉額（根據以色列法律可以無限期結轉），預計在可預見的未來不會產生任何稅款。考慮到這一點以及某些稅收豁免、折扣和抵免，我們今年的全球加權平均有效稅率為 3%，而 2018 年的稅率為 4%。

I would like now to describe our currency hedging activities in relation to the Japanese yen. Since the majority portion of TPSCo's revenues is denominated in yen and the vast majority of TPSCo's costs are in yen, we have a natural hedge over most of our Japanese business and operations. In order to mitigate part of the remaining yen exposure, we execute 0 cost cylinder hedging transactions. These 0 cost cylinder transaction hedge currency fluctuations to be contained in a narrow range as compared to the spot exchange rate. Hence, while the yen rate against the dollar may fluctuate, the impact on our margins is limited. In addition, in relation to the Japanese yen impact on the balance sheet, we have a natural hedge on cash and loan balances since the loans and the cash are both yen denominated. This helps to protect us from potential impact of yen fluctuations.

現在我想介紹一下我們與日圓相關的貨幣對沖活動。由於 TPSCo 的大部分收入以日圓計價，而 TPSCo 的絕大部分成本也以日圓計價，因此我們對大部分日本業務和營運都具有天然的對沖作用。為了減輕剩餘日圓風險敞口的一部分，我們執行零成本的鋼瓶避險交易。這些零成本氣瓶交易對沖貨幣波動，使其波動範圍比即期匯率更窄。因此，儘管日圓兌美元匯率可能會波動，但對我們的利潤率的影響有限。此外，就日圓對資產負債表的影響而言，由於貸款和現金都是以日圓計價的，因此我們對現金和貸款餘額有天然的對沖作用。這有助於保護我們免受日圓波動可能帶來的影響。

And lastly, in relation to fluctuation of the Israeli currency, the shekel, we have no revenues in the -- in this currency. Since approximately 10% of our costs are denominated in the Israeli currency, we also hedge a large portion of this currency risk using: A, 0 cost cylinder transactions; B, investing a portion of our cash in Israeli marketable securities denominated in the Israeli currency, thereby providing us a natural hedge.

最後，關於以色列貨幣謝克爾的波動，我們沒有任何以這種貨幣計價的收入。由於我們約 10% 的成本以以色列貨幣計價，我們也透過以下方式對沖大部分貨幣風險：A，零成本鋼瓶交易；B，將部分現金投資於以以色列貨幣計價的以色列有價證券，從而為我們提供天然對沖。

And the last note on our share count, as of December 31, 2019, we had 107 million outstanding ordinary shares. We no longer have any capital notes outstanding since all were converted into equity in the past. The fully diluted share count is 109 million. The difference between the outstanding and the diluted share count is comprised entirely of ESOP-related options and RSUs. And now I wish to turn the call back to the operator.

最後補充一點關於我們股份數量的信息，截至 2019 年 12 月 31 日，我們有 1.07 億股流通在外的普通股。我們目前沒有任何未償還的資本票據，因為所有票據都已在過去轉換為股權。完全稀釋後的股份數量為 1.09 億股。流通股數量與稀釋股數量之間的差額完全由員工持股計畫 (ESOP) 相關的選擇權和限制性股票單位 (RSU) 構成。現在我想把電話轉回接線生。

(Operator Instructions) The first question is from Mark Lipacis of Jefferies.

（操作說明）第一個問題來自 Jefferies 公司的 Mark Lipacis。

I had a couple. The first one on the outlook for double-digit organic revenue growth, does that exclude Maxim and Panasonic? And can you give us a rough estimate of how big those were in 2019?

我有兩個。第一個問題是關於兩位數有機收入成長的前景，這是否不包括 Maxim 和 Panasonic？您能否粗略估計這些項目在 2019 年的規模有多大？

Yes, Mark. We said that the forecast for low double-digit growth is for the organic revenue. And in addition, we said that we forecast overall growth for the entire revenue. About the size of it, you can take the $1.23 billion revenue that we have, and you should deduct from it in order to reach the baseline of the organic revenues. What we said in the past, as renewed in the March 2019 contract from Panasonic, it is between $70 million to $85 million a quarter of revenues from Panasonic. So if you multiply it by four, you know the annual number of the Panasonic.

是的，馬克。我們之前說過，預測的低兩位數成長是指有機收入的成長。此外，我們也預測整體營收將實現成長。至於規模，你可以用我們現有的 12.3 億美元收入，從中扣除一定金額，即可得出有機收入的基準線。正如我們過去所說，在 2019 年 3 月與松下續約的合約中也重申了這一點，松下每季的收入在 7000 萬美元到 8500 萬美元之間。所以，如果你把它乘以四，你就知道松下每年的產量了。

And about Maxim, we didn't say in the past -- we did say in the past that when we acquired the San Antonio facility, its revenues were, at that point, at a capacity of $150 million, and we did say that Maxim at that point was about 45%, 50% of digitization of the fab, and we said that it's growing gradually down. So one may calculate that it's somewhere below $70 million in a number that, of course, we don't want to say because it's not public domain.

至於 Maxim，我們過去沒有說過——我們過去說過，當我們收購聖安東尼奧工廠時，它的收入當時達到了 1.5 億美元，我們也說過，當時 Maxim 佔該工廠數字化程度的 45% 到 50%，而且我們說過，它的佔比正在逐漸下降。因此，可以估算出金額在 7000 萬美元以下，當然，我們不想透露這個數字，因為它不屬於公共領域。

That's fair enough. And maybe for Russell, can you give us a sense of where capacity utilization is at your customers or perhaps in the competitive environment. Do you have a sense that there's a lot of excess capacity at the bottom of this downturn? Or is it -- would you characterize it differently?

這很合理。或許羅素，您能否向我們介紹一下您的客戶或競爭對手的產能利用率狀況？你是否覺得在這次經濟低迷的底部存在大量過剩產能？或者──你會用不同的方式來描述它？

At our customers, other than the TOPS group, most of our customers have no internal capacity for what we make for them. In the TOPS group, we certainly -- whether the customers are IDMs, that transfer flows to us. Where they're at on their utilizations or their overall capacity, that's something that specifically track. But for the most part, for the IDM customers that we serve, the flows that we serve for them are somewhat exclusive at our factories. So I don't think that their capacities have -- or utilization rates have too much to do with what we make for them, or with demands.

除了 TOPS 集團之外，我們的客戶大多沒有內部產能來生產我們為他們生產的產品。在 TOPS 集團，我們當然—無論客戶是 IDM，這些資金都會流向我們。他們的利用率或整體產能情況，這是我們專門追蹤的。但就我們服務的 IDM 客戶而言，我們工廠為他們提供的流程在很大程度上是獨一無二的。所以我認為他們的產能——或者說利用率——與我們為他們生產的產品或需求關係不大。

In the TOPS group, there was an overall decrease in discrete demand last year. There was a very big inventory correction after multiple years of discrete growth. But -- so I don't think that that has so much to say with it. I believe that in China right now, I think that there's a good amount of 200-millimeter capacity. I don't think that there is very much 300-millimeter capacity available.

在 TOPS 集團中，去年離散需求整體下降。經過多年的穩定成長後，庫存出現了大幅調整。但是——所以我認為這與此事關係不大。我認為目前中國有相當數量的 200 毫米口徑子彈產能。我認為目前市面上300毫米的容量並不多。

The next question is from Cody Acree of Loop Capital.

下一個問題來自 Loop Capital 的 Cody Acree。

Could we just talk a little bit about your -- Russell, you made segment forecasts and segment trends. But we -- especially in comms infrastructure, this silicon germanium ramp, you've obviously installed significant amounts of capacity. And yet it seems like the order flow from that Silicon Valley -- silicon germanium customers just haven't -- either haven't had the end markets, or is there something else going on? I'm just -- if you can speak to the disappointment? I guess it's just a few million dollars, but still below expectations for both December and March.

我們可以稍微談談你的工作嗎——羅素，你負責制定細分市場預測和細分市場趨勢。但是，尤其是在通訊基礎設施領域，例如矽鍺礦，你們顯然已經安裝了大量的容量。然而，來自矽谷的訂單流－矽鍺客戶似乎不是沒有終端市場，就是另有隱情？我只是──你能談談失望之情嗎？我猜只有幾百萬美元，但仍然低於12月和3月的預期。

I'm sorry, please? What is below expectation for March?

對不起，可以嗎？三月低於預期的指標是？

Just the revenue guidance.

僅提供營收預期。

I don't think that the Q1 guidance is at all below expectation. The -- certainly, Q4 was $306 million, as we stated; the mid-range that we had given was $312 million. So it came in at $306 million, but that's why we give a revenue range. The probably larger impact in Q4 wasn't an issue of silicon germanium as far as what was happening, why it was in the second quartile instead of being at the midpoint. But on the discrete market, discretes are short flows. Those are mainly, to a great extent, turn business within the quarter. And as I stated, the fourth quarter was our lowest quarter in multiple years in discrete market. If I look at the Q4 '19 and Q1 '20, so there's already quite a substantial increase in the TOPS business from Q4 '19 into Q1 '20. But the -- so I think that more deals with that.

我認為第一季的業績指引完全沒有低於預期。當然，正如我們所說，第四季為 3.06 億美元；我們給出的中間值是 3.12 億美元。所以最終的營收是 3.06 億美元，但這就是為什麼我們給的是營收範圍的原因。第四季可能產生更大影響的不是矽鍺的問題，而是它為何處於第二四分位數而不是中位數。但在離散市場中，離散產品是短週期產品。這些主要指季度內的周轉業務。正如我之前所說，第四季是我們多年來在離散市場中表現最差的一個季度。如果我看一下 2019 年第四季和 2020 年第一季度，那麼 TOPS 業務從 2019 年第四季到 2020 年第一季已經有了相當大的成長。但是——所以我認為這更多地與此有關。

And as stated by Oren just a few minutes ago and multiple times, the revenues from the Panasonic contract are within a range. We don't control what that range will be to a great degree. So you have a top and a bottom, which is the reason that we, ourselves, give a guidance range. So I wouldn't say that Q4, in my mind, missed an expectation. It was in the second quartile, but it wasn't related to not understanding what the silicon germanium would be. Silicon germanium is a very long flow. It's -- for a quarterly forecast, it's very difficult to miss a silicon germanium forecast.

正如 Oren 幾分鐘前多次提到的那樣，松下合約的收入在一定範圍內。我們無法在很大程度上控制這個範圍。所以，它有上限和下限，這也是我們自己給出指導範圍的原因。所以，在我看來，第四季並沒有低於預期。雖然它處於第二四分位數，但這與不了解矽鍺是什麼無關。矽鍺是一種非常長的流體。對於季度預測來說，矽鍺的預測很難被忽略。

Now the other question is silicon germanium as a whole. And that's a very, very different question. But related to Q1 being second quartile -- I'm sorry, Q4 being second quartile rather than midpoint, although, again, that's why one gives a range. It's not at all related to silicon germanium. For silicon germanium, I stated I believe to some degree of clarity during my discussion, that during the first half of 2019, we saw a decline in orders which has an impact in second half revenue because you're dealing with 40- to 43- layer products. And stating as well that we are now seeing a recovery in silicon germanium. I believe I stated that we would see by customer forecast at this point, a second half that would have a greater than 20% increase in silicon germanium revenue shipments as against the first half, which is pretty substantial.

現在另一個問題是關於矽鍺的整體情況。那是一個截然不同的問題。但關於 Q1 是第二四分位數——抱歉，應該是 Q4 是第二四分位數而不是中點，不過，這就是為什麼要給出一個範圍的原因。它與矽鍺完全無關。關於矽鍺，我在討論中已經明確指出，2019 年上半年訂單量下降，這對下半年的收入產生了影響，因為矽鍺產品是 40 到 43 層的產品。此外，他們也表示，我們現在看到矽鍺市場正在復甦。我相信我曾說過，根據客戶目前的預測，下半年矽鍺的收入出貨量將比上半年增長 20% 以上，這是一個相當大的增幅。

So we do see the recovery of the SiGe, and I think it has been -- remains a very strong and very critical business. What we are seeing as what's happening within the silicon germanium, it's -- for us, because of the parts themselves that are being ordered, we have a fairly good granularity of what they're going into. So if you have a 25-gigabit per second device, it's predominantly for 5G right now. And a 4 channel 25 gigabit is predominantly for 100-gig data centers. So we've seen a nice increase with the proliferation of 5G infrastructure, and we are seeing a pickup now in orders for 100G data centers. Does that answer your question, Cody?

所以我們確實看到了矽鍺行業的復甦，而且我認為它一直是一個非常強勁且至關重要的業務。我們看到矽鍺內部正在發生的事情，對我們來說，由於訂購的零件本身，我們對它們的用途有相當好的了解。所以，如果你有一台每秒 25 千兆位元的設備，它目前主要用於 5G 網路。而 4 通道 25 千兆乙太網路主要用於 100G 資料中心。隨著 5G 基礎設施的普及，我們看到了不錯的成長，現在 100G 資料中心的訂單也在增加。科迪，這樣回答你的問題了嗎？

Yes, it did. And then just for Oren, can you just talk me through the puts and takes that you're keeping the biggest eye on for gross margin trends through 2020?

是的，確實如此。那麼，Oren，你能否跟我談談你最關注的、與 2020 年毛利率趨勢相關的買入和賣出策略？

BSI? What's BSI? What do you mean, BSI?

BSI？什麼是BSI？BSI，你這話是什麼意思？

I'm sorry. I was just asking about the gross margin trends that you're expecting in maybe some of the give and takes for 2020?

對不起。我只是想問您對 2020 年毛利率趨勢的預期，以及可能出現的一些利弊權衡？

Yes. So I believe, like I said in the script that I -- that we are in -- improved our cost structure and revenue mix as could -- started to be seen this year. And from this baseline of $1.23 billion revenue that resulted in a $230 million gross profit, I think for any additional incremental revenue that you should assume -- and you should assume, because of that we gave a forecast of growth with specific low double-digit organic -- so whatever you assume, I would think that it's reasonable to add 50% to the -- 50% to 55% to the gross profit. And then if we assume, of course, it is in Japan, it's lower net profit from that gross profit because of the tax that I explained and minority line. And if you believe it's from Israel, Fab 2, Fab 1, so of course, it's -- everything goes directly to the bottom line, 92.5% of that. And if you believe it's in the States or 80% from that extra gross profit.

是的。所以我相信，就像我在劇本裡說的那樣，我們——我們——已經改善了成本結構和收入組合，並且今年開始看到成效。基於 12.3 億美元的營收和 2.3 億美元的毛利這一基準，我認為對於任何額外的增量營收，你應該假設——你應該假設，因為我們給出了具體的低兩位數有機成長預測——所以無論你假設什麼，我認為在毛利上增加 50% 到 55% 是合理的。當然，如果我們假設它是在日本，那麼由於我解釋過的稅收和少數族裔利潤，淨利潤會比毛利低。如果你相信它來自以色列，Fab 2，Fab 1，那麼當然，所有的一切都會直接計入利潤，其中 92.5% 都計入了利潤。如果你相信這部分利潤來自美國，或是來自額外的毛利的 80%，那就另當別論了。

The next question is from Rajvindra Gill of Needham & Company.

下一個問題來自 Needham & Company 的 Rajvindra Gill。

Just a follow-up on the organic growth rate of low double digits. So just to clarify, so on the Panasonic business, now that the agreement has been renegotiated last year, we should kind of be looking in the $70 million to $80 million range this year per quarter? And in terms of the Maxim revenue, are there any factors that would have that revenue be down this year, say, versus last year based on the number you gave us? I'm just trying to get a sense of, when you were talking about low double-digit organic growth, if the inorganic business is pretty much going to be flat if there -- or are there going to be other kind of risks there?

關於兩位數低水準的自然成長率，這裡補充一點。所以為了澄清一下，關於松下業務，既然去年已經重新談判了協議，我們今年每季的營收應該在 7000 萬美元到 8000 萬美元之間吧？至於 Maxim 的收入，根據您提供的數據，有哪些因素會導致今年的收入比去年下降？我只是想了解一下，當您談到兩位數低位的有機成長時，非有機業務是否基本上會保持平穩——或者是否存在其他類型的風險？

Okay. So on Panasonic, you're correct, it's between $70 million to $85 million, but bear in mind that Q1 '19 was still on the previous contract. So obviously, if you're talking about 2020, you have on the baseline $24 million, $22 million, whatever you assume, $20 million. We said between $20 million to $24 million reduction only in Q1 from Panasonic. And then Maxim, we said, like Russell said, it's a 15-year contract gradually decreasing, you can assume a very few million dollars of reduction. But all that is just emphasizing the very good year that we see because we said that even with those, you can call it, $25 million to $30 million total reduction, we expect growth. So of course, we expect to overcome it. And if we follow up on Mark previous question, and reduce from the $1.23 billion, the Panasonic and Maxim revenue that are indicated approximately, you see that low double digits, a significant amount of growth.

好的。所以，關於松下，你說得對，金額在 7000 萬美元到 8500 萬美元之間，但請記住，2019 年第一季仍然在之前的合約期間。所以很明顯，如果你說的是 2020 年，那麼基準線是 2400 萬美元、2200 萬美元，或者你假設的任何數字，2000 萬美元。我們曾表示，松下僅在第一季就減少了 2,000 萬至 2,400 萬美元的支出。然後，正如拉塞爾所說，馬克西姆的合同是一份 15 年的合同，金額會逐漸減少，你可以假設減少的金額只有幾百萬美元。但所有這些都只是強調了我們所看到的非常好的一年，因為我們說過，即使有這些，你可以稱之為 2500 萬至 3000 萬美元的總削減，我們仍然期望增長。所以，我們當然期望能夠克服它。如果我們接著馬克之前的問題，從 12.3 億美元中減去松下和 Maxim 的收入（大約是這個數字），你會發現這是一個低兩位數的增長，這是一個相當大的增長。

And then in the press release, Russell, and also in the prepared remarks, you had mentioned capacity expansions, and you've broken it out into kind of near-term and medium-term to long term. You talked about M&A in the medium to long term. Just wondering, at a high level, if you could maybe discuss what you're thinking about in terms of expanding capacity over the long-term acquisitions?

羅素，在新聞稿和準備好的演講稿中，您都提到了產能擴張，並且您將其分為近期、中期和長期三個階段。您談到了中長期併購。我只是想了解一下，您能否從宏觀層面談談您在長期收購方面，對於擴大產能的想法？

M&A, what's the M&A...

併購，什麼是併購…

Our big focus there is 300-millimeter capacity growth. We have stated that, I believe, several times. We've talked in the past about the importance of increasing presence and capabilities in China, that has never changed, and on other activities that one would have to move forward with 300-millimeter. I think we're making good progress across several fronts there, not to a point right now of needing to release. And -- but certainly, it remains in a strong direction of the company, a strong direction of our Board of Directors and with very substantial progress is being made.

我們在那裡的重點是 300 毫米口徑產能的成長。我相信，我們已經多次聲明過這一點。我們過去曾討論過增強在中國的存在和能力的重要性，這一點從未改變，以及要推進300毫米武器研發，還需要進行的其他活動。我認為我們在多個方面都取得了良好的進展，目前還沒有到需要發布的地步。而且——但可以肯定的是，它仍然朝著公司、董事會的堅定方向發展，並且正在取得非常實質的進展。

And last question for me. In terms of -- and I know it's hard to assess, but the growth in RF SOI in mobile last year was pretty strong. We obviously have 5G smartphone kind of ramp going on. Any kind of impact that you're seeing over the last few weeks from your customers related to the coronavirus, the indirect impact that you're seeing? Or just kind of what you might see in the next quarter or so maybe perhaps curtailing the 5G smartphone ramp? Any thoughts there would be helpful.

最後一個問題。就射頻SOI而言－我知道這很難評估，但去年行動領域的射頻SOI成長相當強勁。我們顯然正在經歷5G智慧型手機的快速普及階段。在過去幾周里，您是否觀察到新冠病毒疫情對您的客戶產生了任何影響，或者您觀察到了任何間接影響？或者說，未來一個季度左右你可能會看到的情況是，5G智慧型手機的普及速度可能會放緩？任何想法都將不勝感激。

As I stated, we stay very close with our customers. We have not yet seen any substantial reduction in forecasts or pushout of orders. We did within Q1, as stated, have $3 million to $5 million impact. It was coronavirus related. And in that instance, it really dealt with very specific back-end processing and packaging that was impacted because of the reduction -- well, not reduction -- due to the requirements that people would not come back to -- in certain regions to work and stay at home for longer than the Chinese New Year. And so that did have an impact. I don't know that that would continue. It doesn't appear that it is.

正如我所說，我們與客戶保持著非常密切的聯繫。我們尚未看到預測值大幅下降或訂單延期的情況。正如之前所說，我們在第一季實現了 300 萬至 500 萬美元的影響。這與新冠病毒有關。在這種情況下，它實際上涉及非常特定的後端處理和包裝，這些環節受到了影響——或者說，不是因為減少——而是因為某些地區的人們不會回來工作，並且要在家待的時間比春節更長。所以，這確實產生了一定的影響。我不知道這種情況是否會持續下去。看起來並非如此。

But that was a $3 million to $5 million impact, and it was from specific directions of people staying home to make sure that they stay safe, and that a spread of the virus remains contained. That is no longer the case, to my understanding, for that specific area. But no, we have really not seen it. I mean it's obvious that things can happen and things that we are not yet aware of, but we have not yet seen any reduction, and that's just the case.

但那次行動造成了 300 萬至 500 萬美元的影響，這是由於明確指示人們待在家中以確保自身安全，並控制病毒傳播所致。據我了解，就該特定區域而言，情況已不再如此。不，我們真的還沒看過。我的意思是，很明顯，可能會發生一些我們尚未意識到的事情，但我們還沒有看到任何減少，情況就是這樣。

The next question is from Achal Sultania from Crédit Suisse.

下一個問題來自瑞士信貸的Achal Sultania。

Just 2 questions. First, on the RF mobile side. Obviously, my understanding is that you've got a strong relationship with Skyworks and Qorvo on the RF side. Obviously, with all the U.S.-China trade tensions, it seems like the Chinese companies are looking for alternative suppliers outside of the U.S. in the RF space, specifically. So can you help us understand your exposure in that RF mobile space beyond some of the dominant U.S. players? And then secondly, on the silicon germanium side, can you give us some color around -- my understanding is that your revenues in silicon germanium are trending around $30 million to $40 million a quarter. Is that the right number? And when you talk about growth in 2020, is it fair to assume that first half run rate is similar to what we are seeing currently? And then we see 20% growth from that base as we go into second half of this year?

就兩個問題。首先，我們來看射頻移動端。顯然，據我了解，你們在射頻方面與 Skyworks 和 Qorvo 有著牢固的合作關係。顯然，鑑於中美貿易緊張局勢，中國企業似乎正在美國以外尋找射頻領域的替代供應商。那麼，您能否幫助我們了解一下，除了美國的一些主要廠商之外，您在射頻移動領域的業務佈局情況？其次，關於矽鍺業務，您能否給我們介紹一下情況——據我了解，你們在矽鍺業務方面的收入每季度約為 3000 萬美元至 4000 萬美元。這個數字對嗎？談到 2020 年的成長，是否可以合理地假設上半年的成長速度與我們目前看到的類似？然後，我們預計今年下半年將在此基礎上成長20%？

Okay. I'm sorry, could you tell me the number, I missed it. What was the number that you said?

好的。對不起，你能告訴我號碼嗎？我錯過了。你剛才說的數字是多少？

Around $30 million to $35 million per quarter in silicon germanium right now -- during 2019. And that going to, like, do we expect similar numbers in H1 of this year? And then we expect a 20% growth half-over-half as we go into H2 from that base?

2019 年，矽鍺的季度產值約為 3,000 萬至 3,500 萬美元。那麼，我們預計今年上半年的數據會與此類似嗎？然後我們預計，從這個基數開始，進入下半年後，我們將達到20%的成長？

So on that, let's see. In that range for the first half, correct? And yes, breaking that range in the second half? Exactly correct?

那麼，我們來看看。上半場的價格區間就是這個範圍，對嗎？是的，下半場打破了這個差距？完全正確嗎？

Yes. Yes. And by the way, Russell said the $136 million in his script, that it was actual in 2019. Yes.

是的。是的。順便一提，拉塞爾說他劇本裡提到的 1.36 億美元，在 2019 年是真實存在的。是的。

Okay, $136 million. Okay, okay. Okay. So that would imply that a lot of that silicon germanium growth is going to be seen not in 2020, but rather in 2021?

好的，1.36億美元。好的，好的。好的。所以這意味著矽鍺的大量成長不會在2020年出現，而是在2021年出現？

Why? The second half of 2020 will have a lot of more revenue in SiGe. And this is why we said that from now, we already see a higher run rate of stock and orders.

為什麼？2020年下半年，SiGe產業將迎來更多收入。這就是為什麼我們說，從現在開始，我們已經看到庫存和訂單的運行速度加快。

But you are correct, as the ramp continues in the second half, you see the ramp is pushed out on the revenue side, on the order of 1.5 to 2 quarters, depending on what the start Q is. So you're correct there. We expect that we will continue to see silicon germanium revenue increases in 2021. I did state that in the script as well. But yes, the second half versus the first half, by forecast now, we see a 20% increase. And you know what the revenue rate had been. So I think that that's somewhat realistic.

但你是對的，隨著下半年成長勢頭的持續，你會發現收入方面的成長勢頭被推遲了，大約需要 1.5 到 2 個季度，具體取決於起始季度的情況。你說的沒錯。我們預計2021年矽鍺的營收將持續成長。我在劇本裡也寫明了這一點。但沒錯，根據目前的預測，下半年與上半年相比，我們將看到 20% 的成長。你知道之前的收益率是多少。所以我認為這在某種程度上是現實的。

And the end applications for the silicon germanium, is it automotive radars and mobile RF? Or is it something else as well beyond those two?

矽鍺的最終應用領域是汽車雷達和行動射頻嗎？或者，除了這兩點之外，還有其他因素嗎？

It is automotive's radar, it is mobile RF, as we stated. But the bigger portions of it are into optical connections for data center and for base station devices. So you're -- that's what we talked about with the 5G deployment. The 5G deployment for the SiGe comes into both SiGe LNAs, but it's -- the bigger portion of it right now, the ramp that we're seeing is for 5G infrastructure, and the data center has been and remains a very big portion of that business.

正如我們所說，它是汽車雷達，它是移動射頻。但其中大部分用於資料中心和基地台設備的光纖連接。所以，這就是我們之前討論的 5G 部署問題。SiGe 的 5G 部署涵蓋了 SiGe LNA，但目前我們看到的更大一部分是 5G 基礎設施，而資料中心一直是並將繼續是該業務中非常重要的一部分。

Okay. And then coming back on the RF question, like the U.S. exposure versus non-U. S. exposure?

好的。然後回到射頻問題，例如美國與非美國地區的接觸情況。S. 暴露？

I think we're very well diversified in the customers that we serve. I mean certainly, in the history, there's press releases between us and Qorvo and us and Skyworks, also between us and Broadcom. We work hard to maintain strong customer relationships with all of our customers, but we also have multiple new friends that have come up and a good portion of our big RF mobile growth, the RF SOI specifically, in 2019 was outside of the U.S. as well as activities for customers inside of the U.S. So I think we're pretty well diversified. It's not that if any given end user in China wanted to move away from -- for whatever reason, from a big U.S. supplier, it's not that we would necessarily lose that business as being the foundry supplier.

我認為我們服務的客戶群非常多元化。我的意思是，當然，在歷史上，我們和 Qorvo、我們和 Skyworks、我們和 Broadcom 之間都有新聞稿發布。我們努力與所有客戶保持牢固的客戶關係，但我們也結識了許多新朋友，而且我們在 2019 年的射頻移動業務增長，特別是射頻 SOI 業務的增長，很大一部分來自美國以外地區，以及為美國境內客戶提供的服務。所以我認為我們的業務多元化程度相當高。並不是說，如果中國某個終端使用者因為某些原因想要擺脫美國大型供應商，我們作為代工廠供應商就一定會失去這筆生意。

The next question is from Richard Shannon of Craig-Hallum.

下一個問題來自 Craig-Hallum 公司的 Richard Shannon。

Let me just open a couple of silicon germanium questions. They're just kind of big picture. You've talked in the past about having a strong market share with that technology, particularly in optical. I think you've even mentioned a number of 60% or so. How do you view your competitive position as you get into the higher speeds, above 100-gig? You talked about 200 and 400 today and even above. Where do you think your competitive position will be going forward?

讓我先提出幾個關於矽鍺的問題。它們只是著眼於大局。您過去曾談到過，該技術，特別是光學技術，擁有強大的市場份額。我想你甚至提到過大約 60% 這個數字。當您進入速度更高的時代，超過 100G 時，您如何看待您的競爭地位？你今天談到了200和400，甚至更高。你認為你未來的競爭地位會如何？

We think very strong, especially as we couple it into very interesting activities with silicon photonics. But yes, the raw SiGe capability is extremely good. We've talked about the H5 platform and of lead customers having taped out into that technology. So at 200-gigabit per second, 400-gig per second capability and to be able to as well to be supporting with photonics chips that have all the benefits of the speed and power reduction, cost reduction by putting everything onto one platform versus a variety of discretes. So I think our competitive position remains very strong.

我們認為它非常強大，尤其是當我們將其與矽光子學等非常有趣的活動結合時。但沒錯，SiGe的原始表現確實非常出色。我們已經討論過 H5 平台以及一些領先客戶已經採用該技術的情況。因此，要達到每秒 200 千兆位元、每秒 400 千兆位元的傳輸能力，並且能夠支援光子晶片，從而獲得速度和功耗降低的所有好處，並透過將所有功能整合到一個平台上來降低成本，而不是使用各種分立元件。所以我認為我們的競爭地位依然非常強勢。

Okay, good to hear. My follow-up, quickly on your comment on silicon photonics. You mentioned -- I don't know if you intended to make a direct tie-in there, but maybe if you can give us a sense of where your competitive position looks there as well. I know there's been a couple of larger foundries or kind of hybrid companies who have historically maybe had more focus there. You announced a very nice customer in Inphi back in December. Where do you think you're positioned there as well? And -- well, actually, I'll just leave it there.

好的，很高興聽到這個消息。我快速跟進您關於矽光子學的評論。你提到了——我不知道你是否打算直接聯繫到這一點，但或許你可以讓我們了解一下你在那裡的競爭地位如何。我知道有一些規模較大的晶圓代工廠或混合型公司，它們在歷史上可能更注重這方面。你們在去年12月宣布了Inphi這位非常好的客戶。你認為自己在那裡的定位又是什麼呢？嗯，其實，我就說到這裡吧。

I honestly think that we're at the top. I really do. I think programs we have going on there are amazing. So I think we're in an extremely good position. Candidly, I don't want to say things that are out of place because there's activities that are not press released and customers that are not yet press released. But I stated that we have 30 active engagements with 20 customers that have taped out. I think that's in a pretty good spot to have 20 tape-outs at this point or 20 customers that have taped out on SiPho. That's, I think we're -- we have a very good platform. And I think we're acknowledged very strongly in the industry for having, from the foundry perspective, I think, the best platform.

我真心認為我們已經處於領先地位。我真的這麼認為。我認為我們在那裡開展的項目非常棒。所以我認為我們處於非常有利的地位。坦白說，我不想說一些不合時宜的話，因為有些活動還沒有發布新聞稿，有些客戶資訊也還沒有發布新聞稿。但我說過，我們目前與 20 位客戶有 30 個正在進行的合作項目，但這些項目都已經結束了。我認為目前的情況相當不錯，已經有 20 個晶片流片完成，或者說有 20 個客戶在 SiPho 上完成了晶片流片。我認為，我們擁有一個非常好的平台。我認為，從晶圓代工的角度來看，我們擁有業界公認的最佳平台。

Okay. Excellent. Great to hear. Really look forward to hearing more about it the rest of the year. My last question is probably more for Oren. Maybe if you can just give us a sense of your CapEx outlook this year. In the past, you've talked about it being kind of $40 million to $45 million per quarter with some adder from 300-millimeter, and I think it was still within that range in the fourth quarter. So I wonder if you can give us a sense of what you're looking for this year?

好的。出色的。很高興聽到這個消息。非常期待在今年餘下的時間裡聽到更多相關消息。我的最後一個問題可能更想問奧倫。或許您能簡單介紹一下您今年的資本支出預期嗎？過去，你曾說過每季度大約是 4000 萬到 4500 萬美元，再加上 300 毫米的一些附加價值，我認為第四季度仍然在這個範圍內。所以我想知道您能否大致介紹一下您今年的期望？

Yes. I think it's consistent to previous. But so until this quarter, I mean Q4 '19, we were very stable and always in line with the $170 million per year, so $42 million to $44 million a quarter. And what we said for 2020, in July we published a press release that we will invest additional $100 million for Uozu to satisfy existing customer demand. We have their increasing utilization. And so that's additional $100 million for 2020 that will be paid during the year, you may assume a little bit front. And like Q1, Q2, Q3, 1/3 of that every quarter. And in addition, Russell updated on his script on $20 million for QT9, which also will be paid gradually, I assume Q3, Q4, until the payments will happen, so $10 million each. So overall, for the year, we will have the regular $42 million to $44 million a quarter, plus the $20 million Russell spoke about today, plus the $100 million that we announced in July.

是的。我認為這與先前的說法一致。但直到本季度，也就是 2019 年第四季度，我們的業績都非常穩定，一直維持在每年 1.7 億美元的水平，也就是每季 4,200 萬至 4,400 萬美元。2020 年 7 月，我們發布新聞稿宣布，將向 Uozu 追加投資 1 億美元，以滿足現有客戶的需求。我們看到它們的利用率不斷提高。因此，2020 年將額外支付 1 億美元，這筆款項將在年內支付，您可以假設提前支付一部分。就像第一季、第二季、第三季一樣，每季都是原來的三分之一。此外，羅素也透露，他為《QT9》撰寫的劇本金額為 2000 萬美元，這筆款項也將分期支付，我估計是第三季、第四季度，直到全部款項支付完畢，也就是每季 1000 萬美元。所以總的來說，今年我們將有每季 4,200 萬至 4,400 萬美元的常規收入，加上羅素今天提到的 2,000 萬美元，再加上我們在 7 月宣布的 1 億美元。

We have a follow-up question from Mark Lipacis of Jefferies.

傑富瑞集團的馬克·利帕西斯提出了一個後續問題。

I don't believe you've mentioned this in the call. If you did, my apology, but could you give us an update on your joint venture in China?

我記得你在通話中沒有提到這一點。如果是這樣，我深表歉意，但您能否向我們介紹一下您在中國的合資企業的最新進展？

The joint venture in China? You're referring to the activities in Nanjing from a few years ago?

在中國的合資企業？你指的是幾年前在南京發生的那些事嗎？

Yes.

是的。

I see. And also on that we went ahead, we did our parts. We -- technologies, projects. The building was completed, we were never an investor in the project. And you talked about a joint venture. I don't know that it was a joint venture, but it was certainly an activity that we were involved in, that we were going to get capacity out of as well as net cash. We get involved, we did certain of our milestones. We were paid for our milestones. I believe that we had released that. And the -- ultimately, the group that was going to be the owner of the factory, they did not provide their funding. The Nanjing government came through on its side.

我懂了。而我們也繼續推進，我們完成了自己的部分。我們——技術、專案。大樓已經竣工，我們從未參與過這個計畫。你們也談到了合資企業。我不知道這是否是合資企業，但這肯定是我們參與的一項活動，我們將從中獲得產能和淨現金。我們參與其中，並完成了一些里程碑式的任務。我們按里程碑目標獲得了報酬。我相信我們已經發布了。最終，原本要擁有這家工廠的團體並沒有提供資金。南京市政府站在了他們這邊。

So at this point, there is a building that exists. It hasn't been a (inaudible). It's a government that wishes to move forward. There's still discussions going on with various investor groups. And we're involved as a technology provider for -- that could go forward. But at this point, there's been no progress as far as a replacement of the previous company that was the owner company for the project. So...

所以目前，已經存在一棟建築物了。一直都不是（聽不清楚）。這是一個希望向前邁進的政府。目前仍在與各投資集團進行磋商。我們作為技術提供者參與其中——這可能會繼續下去。但目前為止，在更換之前負責該專案的業主公司方面，還沒有任何進展。所以...

Okay. Got you. So there's no -- for the foreseeable future, we shouldn't expect any capacity, you guys have any excess capacity or extra capacity from that facility?

好的。抓到你了。所以，在可預見的未來，我們不應該指望有任何產能，你們那家工廠有任何剩餘產能或額外產能嗎？

No. But it's also at this point, not a capacity that we needed. That deal was, for us, a very, very different type of the deal. We weren't involved in it necessarily for capacity. We were involved in it for a capacity to enable a specific deal with a very, very good customer that we have, that would have allowed an ability to transfer a technology that we wouldn't have put in others of our factories that could have gone in there under a win-win circumstance for Tacoma, for ourselves and for the customer. And as well, we were involved in it from a technology licensing and advisory roles, but it wasn't because we needed raw 200-millimeter capacity out of that factory. That's a very different activity than something we would be going after in China in the 300-millimeter node. To where in a 300 millimeter, it's capacity that we'd be very interested in, and we would not be getting involved as a technology provider, we'd be getting involved, were we to be moving forward in that type of an activity, we'd be getting involved as the company that would ultimately be the majority owner.

不。但就目前而言，這並不是我們需要的產能。對我們來說，那筆交易與以往的交易截然不同。我們參與其中不一定是出於產能的考量。我們參與其中是為了促成與我們非常非常好的客戶達成一項特定的交易，這項交易將使我們能夠轉移一項我們不會在其他工廠使用的技術，這項技術可以用於塔科馬工廠，這對我們自己、對客戶來說都是雙贏的局面。此外，我們也以技術許可和諮詢的角色參與其中，但這並不是因為我們需要該工廠的 200 毫米原始產能。這與我們在中國 300 毫米節點上要追求的目標截然不同。對於 300 毫米的產能，我們非常感興趣。我們不會以技術提供者的身份參與其中，而是會以最終成為控股股東的公司的身份參與其中。

The next question is from Lisa Thompson of Zacks Investment Research.

下一個問題來自 Zacks 投資研究公司的 Lisa Thompson。

I just have one big picture question. So with the continuing like battle with Huawei and up into the point of actually trying to get Taiwan Semiconductor to stop selling them chips, is that changing anything in your planet? Or possibly affecting just the overall deployment of 5G?

我只有一個比較宏觀的問題。所以，隨著與華為的持續鬥爭，甚至到了試圖讓台積電停止向他們出售晶片的地步，這是否為你們的世界帶來了任何改變？或者可能只是影響到5G的整體部署？

I don't -- well, we do not ship anything directly to Huawei. They're not a direct customer of ours. There are probably no restrictions for manufacturing certain parts outside of the U.S. from customers of ours that are not U.S. companies, for them to ship to Huawei. And I think that that's perfectly fine. We do not have any adverse implications from anything happening with Huawei. But again, we are -- we have manufacturing facilities throughout the world.

我們不——我們不直接向華為發貨。他們不是我們的直接客戶。對於我們非美國公司客戶在美國境外生產的某些零件，他們向華為發貨可能沒有任何限制。我覺得這完全沒問題。華為相關事件對我們沒有任何不利影響。但再次強調，我們確實——我們在世界各地都有生產設施。

Okay. So you don't really think it's going to disrupt the entire deployment in the whole industry?

好的。所以你不認為這會對整個產業的部署造成嚴重影響？

No.

不。

There are no further questions at this time. Mr. Ellwanger, would you like to make a concluding statement?

目前沒有其他問題了。艾爾旺格先生，您想作總結發言嗎？

Yes. So again, I thank everybody for their interest. I know that in light of some recent announcements that there's maybe a darkening, looking at the industry at the moment, but we really are very optimistic going into the year. We see very good activities having occurred in 2019 against multiple headwinds that now seem to be dissipating themselves. And those activities are driving very good revenue projections for this year. The -- we see it as a year where we'll have overall revenue growth.

是的。再次感謝大家的關注。我知道，鑑於最近的一些消息，目前整個行業的前景可能有些黯淡，但我們對今年的前景仍然非常樂觀。我們看到，2019 年在許多不利因素的影響下，我們取得了非常好的成績，而這些不利因素現在似乎正在消散。這些活動也為今年帶來了非常可觀的收入預期。我們認為今年整體營收將會成長。

And as stated, double-digit organic revenue growth and a recovery in several of the high-margin areas, where Oren is very optimistic about not just utilization numbers going up and what that means on margins, but as far as the richness of the mix going up. So the year looks very, very positive for us.

正如之前所說，有機收入實現了兩位數成長，並在幾個高利潤領域實現了復甦。 Oren 不僅對利用率的提高及其對利潤率的影響非常樂觀，而且對產品組合的豐富性也持樂觀態度。所以今年對我們來說前景非常非常樂觀。

We look forward to meeting with investors and analysts face-to-face. We are scheduling an Investor and Analyst Day at the NASDAQ building in New York on March 31st a.m. Sign-up will shortly be available on our website, but we do wish to note one thing. This event, although scheduled and although it will be signed up for, it may be postponed according to updated travel and/or health advisories. But bar that, we really look forward to seeing everyone on the call and people that weren't able to make the call at the NASDAQ event on March 31st and look forward to the interactions. So thank you very, very much.

我們期待與投資者和分析師面對面交流。我們計劃於3月31日上午在紐約納斯達克大樓舉行投資者和分析師日活動。註冊功能很快就會在我們的網站上開放，但我們想提醒大家一件事。雖然本次活動已安排好，並且已經報名參加，但根據最新的旅行和/或健康建議，活動可能會被推遲。但除此之外，我們非常期待在電話會議上見到大家，也期待見到那些在 3 月 31 日納斯達克活動中未能參加電話會議的人們，並期待與大家互動。非常非常感謝。

Thank you. This concludes the TowerJazz Fourth Quarter and Full Year 2019 Results Conference Call. Thank you for your participation. You may go ahead and disconnect.

謝謝。TowerJazz 2019 年第四季及全年業績電話會議到此結束。感謝您的參與。您可以斷開連線了。