高塔半導體 (TSEM) 2020 Q1 法說會逐字稿

Ladies and gentlemen, thank you for standing by. Welcome to the Tower Semiconductor First Quarter 2020 Results Conference Call. (Operator Instructions) As a reminder, this conference is being recorded, May 13, 2020.

女士們、先生們，感謝您的耐心等待。歡迎參加塔芯半導體2020年第一季業績電話會議。 （操作說明）提醒您，本次會議正在錄音，日期為2020年5月13日。

Joining us today are Mr. Russell Ellwanger, Tower Semiconductor's CEO; and Mr. Oren Shirazi, CFO.

今天與我們一同出席的有 Tower Semiconductor 的執行長 Russell Ellwanger 先生和財務長 Oren Shirazi 先生。

I would now like to turn the conference over to Ms. Noit Levy, Vice President of Investor Relations and Corporate Communications. Ms. Levy, please go ahead.

現在我將會議交給投資者關係和企業傳播副總裁諾伊特‧萊維女士。萊維女士，請開始。

Thank you and welcome to Tower Semiconductor financial results conference call for the first quarter of 2020. 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. Tower assumes no obligation to update any such forward-looking statements.

感謝您參加Tower Semiconductor 2020年第一季財務業績電話會議。在會議開始之前，我想提醒各位，本次電話會議中部分陳述可能屬於前瞻性陳述，並受制於各種不確定因素和風險因素，這些因素可能導致實際結果與當前預期存在差異。這些不確定因素和風險因素已在公司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。這些文件也可在公司網站上查閱。 Tower Semiconductor不承擔更新任何此類前瞻性聲明的義務。

Please note that the first quarter of 2020 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 reporting 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，2020年第一季的財務業績是依照美國的通用會計準則（GAAP）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也包含某些經調整的財務信息，這些信息可能被視為美國證券交易委員會（SEC）G條例及相關報告要求下的非GAAP財務指標。財務表格中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.

現在我想把電話轉給我們的執行長羅素·埃爾旺格先生。羅素，請開始。

Thank you, Noit. Thank you, everyone, for joining our call today, discussing our first quarter 2020 business and financial results. First quarter revenues met our guidance at $300 million, resulting in EBITDA of $73 million, net profit of $17 million. During the quarter, we began to implement the capacity expansion plan of our 300-millimeter facility, as evidenced by the higher level investments in equipment to $63 million. This activity supports existing and future demand, which we see from our customers for our various 300-millimeter platforms, which exceeds our current capacity, with an expected increase in shipments beginning in the third quarter of this year. We have maintained our strong balance sheet and financial position. Later, Oren Shirazi, our CFO, will provide an in-depth review of our first quarter financial results, balance sheet and main financial activities.

謝謝Noit。感謝各位今天參加我們的電話會議，共同探討我們2020年第一季的業務和財務表現。第一季營收達到預期的3億美元，EBITDA為7,300萬美元，淨利為1,700萬美元。本季度，我們開始實施300毫米工廠的產能擴張計劃，設備投資額增加至6,300萬美元，便是最好的證明。此舉旨在滿足客戶對我們各種300毫米平台產品的現有和未來需求，目前產能已無法滿足，預計今年第三季出貨量將進一步成長。我們維持了穩健的資產負債表和財務狀況。稍後，我們的財務長Oren Shirazi將對第一季的財務表現、資產負債表和主要財務活動進行深入分析。

We began 2020 with a pandemic that has grown worldwide, vastly impacting the global business and economic environment. COVID-19 has created new and considerable hurdles, forcing us, together with the entire world, to modify and implement a new mode of life, and with that, a different mode of work. As responsible world citizens, with factories, employees and customers spanning many geographic regions, we continuously track the coronavirus pandemic outbreak and are proactive, smart on all fronts to ensure the health and safety of our employees, while maintaining seamless operational supply chain committed to provide reliable state-of-the-art technology and uninterrupted manufacturing solutions to answer all our customer needs. Each of our sites, corporate-wide, is taking measures and action in alignment with the regional government instructions and for which in many cases, we have gone well beyond with additional precautionary steps in order to ensure the health and safety of our employees and the success of our business. Within these activities, we implemented our work-from-home policy for all functions that can be performed remotely. For on-site, we implemented multiple protocols, including social distancing, minimizing frequency and attendance of in-person face-to-face meetings, frequent cleaning of all public areas, including intense comprehensive clean of all heavy-traffic areas before and after shift changes, hygiene education, wearing masks while being at the facilities, implementing automated temperature measurement upon entering the facilities, and video conferencing with customers and business partners rather than face-to-face meetings. In addition, all employee travel had been suspended.

2020年開始，全球疫情爆發，對全球商業和經濟環境造成了巨大衝擊。新冠肺炎疫情帶來了許多新的挑戰，迫使我們與全世界一道，調整並適應新的生活方式，進而調整工作模式。身為負責任的全球公民，我們的工廠、員工和客戶遍佈多個地區，我們持續關注疫情發展，積極主動地採取各項措施，確保員工的健康和安全，同時維持順暢的營運供應鏈，致力於提供可靠的尖端技術和不間斷的生產解決方案，滿足客戶的各種需求。我們公司各部門均已採取符合當地政府指示的措施，並在許多情況下，我們採取了額外的預防措施，以確保員工的健康和安全，並保障業務的成功。為此，我們已對所有可遠距辦公的職能部門實施了居家辦公政策。針對現場工作，我們實施了多項防控措施，包括保持社交距離、盡量減少面對面會議的頻率和參與人數、頻繁清潔所有公共區域（包括在換班前後對所有高人流量區域進行徹底清潔）、開展衛生教育、要求員工在辦公場所內佩戴口罩、在進入辦公場所時進行自動體溫檢測，以及使用視訊會議與客戶和業務合作夥伴。此外，所有員工出差均已暫停。

Supply chain performance has been flawless. We have increased inventory of indirect materials and silicon. All supply chain materials are without interruption. There are certain challenges, but all have been and continue to be mitigated well. Of course, we will continue to monitor, assess and focus on appropriate actions as needed.

供應鏈運作完美無瑕。我們增加了間接材料和矽的庫存。所有供應鏈材料供應均未中斷。雖然存在一些挑戰，但所有挑戰都已有效緩解，並將繼續妥善應對。當然，我們將繼續監控、評估並根據需要採取適當措施。

From a business demand perspective, the first months of the year were stable and even growing. Recently, we've seen decreases in customer forecasts for some end markets, whilst the demand for other end markets grow.

從業務需求角度來看，今年前幾個月市場穩定甚至成長。但近期，我們發現部分終端市場的客戶預測有所下降，而有些終端市場的需求則有所成長。

I will now provide a detailed overview of our different business unit activities. To begin with the analog IC business unit, our mobile RF business experienced very strong growth through 2019 and remained on the same growth trajectory for the first quarter of 2020 due to a combination of increased market share, ramp of our 300-millimeter RF SOI technology, and overall market content growth with state-of-the-art 5G handset rollouts.

接下來，我將詳細概述我們各個業務部門的活動。首先是類比積體電路業務部門，由於市場份額的提升、300毫米射頻SOI技術的量產以及隨著最先進的5G手機的推出而帶來的整體市場增長，我們的行動射頻業務在2019年實現了非常強勁的增長，並在2020年第一季度保持了同樣的增長勢頭。

As has been well published, COVID-19 has slowed the mobile market, and we are seeing this reflected in customer forecasts. Present customer demand profile dictates a lesser degree of mobile growth for 2020 than our beginning-of-the-year expectations. We maintain our technology leadership and market share increases as well as our increasing utilization levels of the 300-millimeter capacity.

正如已有大量報告指出，新冠疫情減緩了行動市場的發展，這一點也反映在客戶的預測中。目前的客戶需求狀況表明，2020年行動市場的成長幅度將低於我們年初的預期。我們保持技術領先地位，市佔率持續成長，同時300毫米晶片的利用率也不斷提高。

Different than our RF mobile business, our infrastructure, silicon germanium optical business, was weak through 2019 as the data center market was undergoing an inventory correction. Starting late in 2019, we reported a resurgence of orders driven primarily by optical fiber communication used in 5G infrastructure. We are happy to report that this trend is accelerating, and we now also see data center orders rebounding. Based on customer forecasts, we anticipate strong quarter-over-quarter growth in this market through the remainder of 2020, helping to offset other COVID-19-related weaknesses.

與我們的射頻行動業務不同，我們的基礎設施業務，即矽鍺光纖業務，在2019年表現疲軟，當時資料中心市場正經歷庫存調整。從2019年底開始，我們報告訂單出現回升，主要得益於5G基礎設施中使用的光纖通訊。我們欣喜地報告，這一趨勢正在加速，目前我們也看到資料中心訂單正在反彈。根據客戶預測，我們預計該市場在2020年剩餘時間內將保持強勁的季度環比成長，這將有助於抵消其他與新冠疫情相關的疲軟影響。

We also continue to invest in new technology and win Tier 1 customers. An example announced in our first quarter is our partnership with Renesas in bringing to market advanced satellite terminals with our silicon germanium technology. Also, we continue to make progress with prototyping next-generation optical transceivers at 200, 400 and even 800 gigabit per second with our latest SiGe technology H5 as well as with our silicon photonics platform. After strong growth in 2019, our power IC business remains good despite some COVID-19-related market impact, specifically in the automotive sector and battery management products. New product ramps in the second half of 2020 are expected to mitigate such COVID impact as we continue to gain market share in the broader power IC market. This quarter, we announced a breakthrough power IC technology, Gen6, that offers over 35% power efficiency improvement and/or equivalent amount of die-area reduction at 24-volt operation through an innovative transistor design. We have provided initial design kits to early adopters and are seeing very strong interest in this new 200-millimeter process. This new technology complements our platform leadership positions at lower voltage with our previously announced 65-nanometer BCD, 300-millimeter process and at higher voltages, with our recently announced 140-volt RESURF and 200-volt SOI technologies. This completes a revamp of our offering across a wide range of voltages that covers most of the power IC market and should enable share gain in this very large portion of the analog market for years to come.

我們持續投資新技術並贏得一級客戶。例如，我們在第一季宣布與瑞薩電子合作，利用我們的矽鍺技術將先進的衛星終端推向市場。此外，我們利用最新的H5矽鍺技術和矽光子平台，在200、400甚至800Gbps的下一代光收發器原型開發方面也取得了持續進展。繼2019年的強勁成長之後，儘管受到新冠疫情的影響，尤其是在汽車產業和電池管理產品領域，我們的功率IC業務仍保持良好勢頭。預計2020年下半年新產品的量產將有助於緩解疫情帶來的影響，同時我們將繼續在更廣泛的功率IC市場中擴大市場份額。本季度，我們發布了突破性的功率IC技術Gen6，該技術透過創新的電晶體設計，在24V工作電壓下實現了超過35%的功率效率提升和/或等效的晶片面積縮減。我們已向早期用戶提供了初始設計套件，並看到市場對這項全新的 200 毫米工藝表現出濃厚的興趣。這項新技術與我們先前發布的 65 奈米 BCD 和 300 毫米製程在低電壓領域以及近期發布的 140 伏特 RESURF 和 200 伏特 SOI 技術在高電壓領域的領先地位相得益彰。此次更新完善了我們涵蓋大部分功率 IC 市場的寬電壓產品線，並有望在未來幾年內幫助我們在龐大的類比市場中持續擴大份額。

Moving to our sensors business unit. Our development focus is on 2 major technologies, which should enter production this year and high-volume production in 2021: optical fingerprint sensors for smartphones, both lens type for under LCD displays; and 1:1 type for under OLED displays on our well-established 0.18 micron 8-inch wafer CIS technology. We are prototyping such projects with several customers to support the high-volume required. Especially in the 1:1 under OLED sensors, we are cross qualifying our CIS technology among our 8-inch fabs.

接下來我們來看看感測器業務部門。我們的研發重點是兩項主要技術，預計將於今年投入生產，並於2021年實現量產：一是用於智慧型手機的光學指紋感測器，包括用於LCD顯示器下方的透鏡式感測器；二是用於OLED顯示器下方的1:1式感測器，均採用我們成熟的0.18微米8吋晶圓CIS技術。我們正在與多家客戶合作進行原型開發，以滿足所需的大量生產。尤其是在1:1式OLED顯示器下方感測器方面，我們正在8吋晶圓廠之間進行CIS技術的交叉認證。

Our second focus is time-of-flight sensors based on our state-of-the-art stacking wafer technology and global shutter pixel in our 65-nanometer, 12-inch wafer CIS platform. We are working with 2 market leaders on this technology and will prototype early next year. These sensors are targeted mainly for face recognition applications in the mobile market as well as in payment points but also as front-looking cameras for gaming, commercial and AR-type applications. In parallel, we are engaged in several programs of large x-ray sensors, some already moved to production, and next-generation industrial sensors on 300-millimeter using our small state-of-the-art global shutter pixels. Our stacked copper-to-copper bonding back-side illumination wafer technology is the basis for many new exciting products, including the time-of-flight mentioned earlier, global shutter industrial sensors and high-end photography sensors, giving extremely low dark current values and enabling fab centers of continuous 1,000 frame per second of full resolution around 20-megapixel, high-end sensors.

我們的第二個重點是基於我們先進的堆疊晶圓技術和65奈米12吋晶圓CIS平台上的全域快門像素的飛行時間感測器。我們正與兩家市場領導者合作開發這項技術，並將於明年初推出原型。這些感測器主要面向行動市場的人臉辨識應用以及支付終端，同時也可用作遊戲、商業和AR等應用的前置鏡頭。同時，我們正在進行多個大型X射線感測器項目，其中一些已經投入生產；此外，我們還在開發採用我們先進的小型全局快門像素的300毫米下一代工業感測器。我們的堆疊式銅-銅鍵合背照晶圓技術是許多令人興奮的新產品的基礎，包括前面提到的飛行時間感測器、全局快門工業感測器和高階攝影感測器，這些產品具有極低的暗電流值，並能使晶圓廠實現每秒1000幀的連續全解析度拍攝，解析度約為2000萬像素的高階感測器。

As per end markets that are impacted by the coronavirus, within the last few weeks, we have seen a drop for X-ray sensors serving the dental market. Customer developments have not been impacted.

就受新冠病毒影響的終端市場而言，過去幾週，我們看到用於牙科市場的X光感測器需求下降。客戶開發專案未受影響。

For the TOPS business unit, where the business model is flow transfer and customer co-development activities, the majority of activities serve the power discrete end market. The beginning of the year saw increases in demand forecast from some of our large MOSFET customers. They now express caution and have reduced their forecast for the second half. We continue with advanced MOSFETs co-developments and additional engagements with existing customers for both MOSFETs as well as additional disruptive technologies.

對於以業務流程轉移和客戶聯合開發活動為核心的TOPS業務部門而言，其大部分業務活動服務於功率分立元件終端市場。年初，部分大型MOSFET客戶的需求預測上調。但目前他們持謹慎態度，並下調了下半年的需求預測。我們將持續推動先進MOSFET的共同開發，並與現有客戶就MOSFET及其他顛覆性技術進行更多合作。

For discrete flows, we continue to focus on alignment on engagement and plans for 12-inch, and releasing advanced new split-gate, super junction and advanced Trench MOSFET platforms to production, enabling our customers a better position in the market, offering more competitive product lines. We previously discussed several mid- to long-term market trends being addressed through the TOPS group, with initial platform transfers in development. Such activities include advanced nanowire intrinsic RGB microdisplay on 200-millimeter and 300-millimeter, productization of innovative liquid crystal metasurface technology, and expanding our partnership with a leading TMR sensor provider. These activities are of great relevance to advancements in our industry and target high returns.

對於離散流，我們繼續專注於12英寸製程的合作與規劃，並將先進的新型分柵、超結和先進溝槽MOSFET平台投入量產，從而幫助客戶在市場中佔據更有利的地位，並提供更具競爭力的產品線。先前，我們曾討論過TOPS團隊正在應對的幾項中長期市場趨勢，並已啟動初步的平台轉移開發。這些措施包括：在200毫米和300毫米製程上開發先進的奈米線本徵RGB微顯示器；將創新的液晶超表面技術產品化；以及拓展與領先的TMR感測器供應商的合作關係。這些舉措對產業發展至關重要，並有望帶來豐厚的回報。

During the first quarter of 2020, we saw the following utilization rates. In Migdal Haemek, Israel, Fab 1, our 6-inch factory, we were at 60% utilization for previously discussed decreases in discrete demand. Fab 2 is at 70%, similar to last quarter. Newport Beach, California Fab 3 was at about 55%, similar to last quarter, with significant increases in utilization already seen in Q2 due to the large uptick in demand of silicon germanium for 5G infrastructure and for data centers. Our San Antonio facility Fab 9 was at 65% utilization, which includes an 8-point increase in non-Maxim business on top of the Q4 '19 10 point corresponding increase in non-Maxim business.

2020年第一季度，各工廠的產能利用率如下：位於以色列米格達勒哈埃梅克的Fab 1工廠（我們的6吋晶圓廠）產能利用率為60%，這與先前討論過的離散材料需求下降有關。 Fab 2廠的產能利用率為70%，與上季持平。位於加州紐波特海灘的Fab 3工廠產能利用率約為55%，與上季相近，但由於5G基礎設施和資料中心對矽鍺的需求大幅增長，該廠的產能利用率在第二季已顯著提高。位於聖安東尼奧的Fab 9廠產能利用率為65%，其中包括非Maxim業務產能利用率在2019年第四季非Maxim業務產能利用率10個百分點的基礎上，又成長了8個百分點。

Looking at our TPSCo fabs in Japan, utilization of our 8-inch foundry business was at about 55%, similar to the previous quarter. Our 12-inch foundry business utilization was 80%, a 10 point increase as compared to Q4 '19, while noting that additional capacity is being built presently to both eliminate nonphotolithographic bottleneck constraints for our advanced 200-millimeter flows as well as adding additional photolithography capacity. We are progressing according to plan and should hit maximum start capability by the end of Q3 this year.

從我們在日本的TPSCo晶圓廠來看，8吋晶圓代工業務的產能利用率約為55%，與上一季持平。 12吋晶圓代工業務的產能利用率達80%，較2019年第四季提升了10個百分點。值得注意的是，我們目前正在建造額外的產能，旨在消除先進200毫米製程中非光刻製程的瓶頸，並增加光刻製程產能。我們正按計畫推進，預計今年第三季末達到最大產能。

In summary, according to current customer forecasts, we see quarter-over-quarter growth throughout the year. However, there is uncertainty with customers stating their own limited visibility. We guide the second quarter of 2020 to be $310 million, with an upward or downward range of 5%. As a well-experienced, mature, strong global company, with an exceptional base of talented and most dedicated employees, we remain committed to meeting all our customers' short-, mid- and long-term needs. Our best wishes to all of you for your welfare and the health of your loved ones. We hope that at least one upside of this global pandemic would be greater actions of world citizenry and cooperation.

總而言之，根據客戶目前的預測，我們預計全年將實現季度環比成長。然而，由於客戶本身對未來前景的了解有限，因此存在一定的不確定性。我們預計2020年第二季營收為3.1億美元，上下浮動幅度為5%。作為一家經驗豐富、成熟穩健的全球性公司，我們擁有一支才華橫溢、兢兢業業的員工隊伍，我們將繼續致力於滿足所有客戶的短期、中期和長期需求。我們衷心祝福您和您的家人健康平安。我們希望這場全球疫情至少能帶來一個正面的影響：促進世界公民更積極主動地攜手合作。

To recite the words of former U.S. President John F. Kennedy: We all inhabit this small planet. We all breathe the same air. We all cherish our children's future.

借用美國前總統約翰甘迺迪的話：我們都住在這個小小的星球上。我們都呼吸著同樣的空氣。我們都珍惜我們孩子的未來。

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

接下來，我想把電話轉給我們的財務長奧倫‧希拉齊。奧倫？

Thank you, Russell. Welcome, everyone. Thank you for joining us today. As an introduction, to capitalize on Russell's description of our actions in related to COVID-19 outbreak, I'm pleased to update that all our manufacturing fabs operated throughout this period without interruption and did not miss even 1 production date nor shipment, and successfully management -- and with successful management of our supply chain, avoiding any supply shortage.

謝謝羅素。歡迎各位。感謝各位今天蒞臨。首先，為了更好地闡述羅素對我們應對新冠疫情所採取的措施，我很高興地向大家匯報，在此期間，我們所有的製造工廠都正常運轉，沒有錯過任何一次生產或發貨，並且成功地管理了供應鏈，避免了任何供應短缺。

As I will show in my balance sheet analysis, the company is in a very strong and stable financial and cash position: our balance sheet as of the end of Q1 2020, reflecting current assets ratio of 3.8x; cash, including short-term deposits and investments in marketable securities exceeding our short- and long-term debt balance by $438 million; and record shareholders' equity of $1.36 billion, representing shareholders' equity to total assets ratio of 70%.

正如我將在資產負債表分析中展示的那樣，公司財務和現金狀況非常強勁穩定：截至 2020 年第一季末，我們的資產負債表顯示，流動資產比率為 3.8 倍；現金（包括短期存款和有價證券投資）比我們的短期和長期債務餘額高出 4.38 億美元；股東權益創歷史新高，達到 13.60%。

I will start by providing the P&L highlights for the first quarter of 2020 and then discuss our balance sheet. Revenues for the first quarter of 2020 were $302 million -- sorry, $300.2 million, meeting our guidance provided 3 months ago, reflecting 10%, or $19 million, year-over-year organic growth. Nonorganic revenue, defined as revenues from Panasonic in the TPSCo fabs and revenues from Maxim in the San Antonio fab were lower by $29 million year-over-year, mostly due to the March 2019 previously announced Panasonic renewed contract. Gross and operating profit for the first quarter of 2020 were $53 million and $16 million, respectively, as compared to $55 million and $19 million, respectively, in the prior quarter, and as compared to $63 million and $27 million, respectively, in the first quarter of 2019. EBITDA in for the first quarter of 2020 was $73 million as compared to $75 million in the prior quarter and $79 million in the first quarter of 2019. Net profit for the first quarter of 2020 was $17 million or $0.16 per share, basic and diluted, as compared to $21 million or $0.19 basic and diluted earnings per share in the prior quarter. Net profit for the first quarter of 2019 was $26 million or $0.25 basic and diluted earnings per share.

我會先介紹2020年第一季的損益表要點，然後再討論我們的資產負債表。 2020年第一季營收為3.02億美元——抱歉，是3.002億美元，符合我們三個月前給出的預期，年增10%，即1,900萬美元。非內生性營收（定義為來自TPSCo晶圓廠松下業務的營收和來自聖安東尼奧晶圓廠Maxim業務的營收）年減2,900萬美元，主要原因是先前宣布的2019年3月與松下續約的合約。 2020年第一季毛利和營業利潤分別為5,300萬美元和1,600萬美元，而上一季分別為5,500萬美元和1,900萬美元，2019年第一季分別為6,300萬美元和2,700萬美元。 2020年第一季EBITDA為7,300萬美元，上一季為7,500萬美元，2019年第一季為7,900萬美元。 2020年第一季淨利為1,700萬美元，即每股收益0.16美元（基本及攤薄後），而上一季淨利為2,100萬美元，即每股收益0.19美元（基本及攤薄後）。 2019年第一季淨利為2,600萬美元，即每股收益0.25美元（基本及攤薄後）。

Comparing to the first quarter of 2019, the 10% year-over-year organic revenue growth and efficiency measures taken enabled us to mitigate 55% of the impact from Panasonic renewed contract revenue reduction over the gross and operating profit. Comparing to the fourth quarter of 2019, gross and operating profits reflect $3 million lower cost in our P&L COGS line against the $5.5 million lower revenue, which is aligned with our previously discussed incrementals margin model. The financing and other income P&L line totaling $2 million for Q1 2020 reflects the impact of the decreased interest rates and bond value of our bank deposits and marketable securities investment.

與2019年第一季相比，10%的年成長有機收入成長以及我們採取的效率提升措施，使我們能夠將鬆下續約合約收入減少對毛利和營業利潤的影響降低55%。與2019年第四季相比，毛利和營業利潤反映了損益表中銷售成本（COGS）項下300萬美元的成本減少，而收入減少了550萬美元，這與我們之前討論的增量利潤模型相符。 2020年第一季損益表中融資及其他收入項下總計200萬美元，反映了利率下降以及銀行存款和有價證券投資債券價值下降的影響。

The income tax benefit P&L line totaling $1.7 million for the first quarter of 2020 included a tax benefit resulted from the CARES, C-A-R-E-S Act, which was recently announced by the United States.

2020 年第一季所得稅收益損益表項目總計 170 萬美元，其中包括美國最近宣布的《新冠病毒援助、救濟和經濟安全法案》(CARES Act) 帶來的稅收優惠。

I will now provide the cash flow highlights for the first quarter of 2020 and a balance sheet analysis as of March 31, 2020. Cash flow generated from operations in the first quarter of 2020 was $68 million as compared to $72 million in the prior quarter and to $75 million in the first quarter of 2019. Investment in fixed assets net was $63 million in the first quarter of 2020 and included payments related to the previously announced 300-millimeter fab CapEx investment, as compared to $44 million and $42 million in the prior quarter and in the first quarter of 2019, respectively. In addition, we repaid $24 million of our debt in the first quarter of 2020, mainly bonds Series G.

接下來，我將提供2020年第一季的現金流量摘要以及截至2020年3月31日的資產負債表分析。 2020年第一季經營活動產生的現金流量為6,800萬美元，而上一季為7,200萬美元，2019年第一季為7,500萬美元。 2020年第一季固定資產淨投資為6,300萬美元，其中包括先前宣布的300毫米晶圓廠資本支出投資的相關款項，而上一季及2019年第一季分別為4,400萬美元及4,200萬美元。此外，我們在2020年第一季償還了2,400萬美元的債務，主要為G系列債券。

Looking at the balance sheet, we presented a strong and stable financial position measured as follows: Shareholders' equity reached a record of $1.36 billion, reflecting 70% ratio of shareholders' equity to total assets of $1.94 billion; current assets ratio, defined as current assets divided by short-term liabilities, was 3.8x; cash, including short-term deposits and investment in marketable securities exceeded our short- and long-term debt by $438 million.

從資產負債表來看，我們展現了強勁穩定的財務狀況，具體如下：股東權益達到創紀錄的 13.6 億美元，佔總資產 19.4 億美元的 70%；流動資產比率（定義為流動資產除以短期負債）為 3.8 倍；現金（包括短期存款和有價證券投資）比我們的短期和長期債務多出 4.38 億美元。

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. factories and affiliate are subject to a tax rate of 21% and as noted earlier, have a tax benefit as a result of the recently announced CARES Act in the states. TPSCo profits from its Japanese operations are subject to an approximate 30% tax rate. Our profit in Israel in 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 the approximate $1 billion historical NOLs that may be carried forward indefinitely.

接下來，我將詳細說明損益表中的稅項，並介紹我們適用的實際稅率。我們的美國工廠和關聯公司適用21%的稅率，如前所述，由於近期各州頒布的《新冠病毒援助、救濟和經濟安全法案》（CARES Act），它們享有稅收優惠。 TPSCo在日本的業務利潤適用約30%的稅率。我們在以色列Fab 1和Fab 2工廠的利潤雖然適用7.5%的稅率，但由於約10億美元的歷史淨經營虧損（NOL）可以無限期結轉，預計在可預見的未來不會產生任何稅款。

With regards to the company's rating in May 2020, Standard & Poor's Ma'alot, an Israeli rating company that is fully owned by S&P Global Rating Agency, completed its annual rating review for the company, and affirmed a corporate credit rating and bond Series G rating of ilAA-, with a stable horizon.

關於該公司的評級，2020 年 5 月，由標普全球評級機構全資擁有的以色列評級公司 Ma'alot 完成了對該公司年度評級審查，並確認其企業信用評級和 G 系列債券評級為 ilAA-，期限穩定。

I would like now to describe our currency hedging activities in relation to 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 executed 0 cost cylinder hedging transaction, which are containing fluctuations to be contained in a narrow range as compared to the spot exchange rate. Hence, while the yen rate against the U.S. 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, which helps to protect us from potential future impact of yen fluctuation.

現在我想介紹一下我們針對日圓的貨幣對沖活動。由於TPSCo的大部分收入以日圓計價，且絕大多數成本也以日圓計價，因此我們對大部分日本業務和營運都進行了天然對沖。為了降低剩餘日圓風險敞口，我們執行了零成本的貨幣對沖交易，該交易的波動範圍遠小於即期匯率。因此，儘管日圓兌美元匯率可能會波動，但對我們的利潤率影響有限。此外，就日圓對資產負債表的影響而言，由於貸款和現金均以日圓計價，我們對現金和貸款餘額也進行了天然對沖，這有助於我們抵禦未來日圓波動可能帶來的影響。

Lastly, in relation to the fluctuations of the Israeli currency, we have no revenues in this currency, and since approximately 10% of our costs are denominated in the Israeli currency, we also hedge a large portion of this currency risk using, a, zero-cost cylinder transaction; and b, investing a portion of our cash in Israeli marketable securities denominated in the Israeli currency, thereby providing us a natural hedge.

最後，關於以色列貨幣的波動，我們沒有以該貨幣計價的收入，而且由於我們約 10% 的成本以以色列貨幣計價，我們還使用以下方法對沖了大部分貨幣風險：a. 零成本鋼瓶交易；以及 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，從而為我們提供了一個天然的對沖。

During Q1 2020, the U.S. dollar to lease exchange ratio went up significantly from 3 45 to 3 80 -- to about 3 80, which provided us with an opportunity to increase our hedging coverage and mitigate our U.S. dollar mix exposure for the coming 12 months on very good financial terms achieved during that quarter.

2020 年第一季度，美元兌租賃匯率從 3.45 大幅上漲至 3.80 左右，這為我們提供了一個機會，可以增加對沖覆蓋率，並在未來 12 個月內降低美元組合風險敞口，而且該季度還獲得了非常有利的財務條件。

And the last note on our share count. As of the end of Q1 2020, we had 107 million ordinary shares outstanding, and the fully diluted share count was 109 million, same figures as in the prior quarters. The difference between the outstanding and the diluted share count is comprised entirely of ESOP-related options and RSUs.

最後補充一點關於我們股份數量的資訊。截至2020年第一季末，我們已發行普通股1.07億股，完全稀釋後的股份數量為1.09億股，與前幾季的數據相同。已發行股份數量與稀釋後股份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。

And now I wish to turn the call back to the operator. Operator?

現在我想把電話轉回接線生。接線生？

(Operator Instructions) The first question is from Cody Acree of Loop Capital.

（操作員說明）第一個問題來自 Loop Capital 的 Cody Acree。

First off, I wanted to just touch on the customer demand improvements around 300-millimeter. Is that a function of just getting the capacity online? You said it should be at full wafer capacity by the end of the year. Is it a matter of market share gain driven? Is the underlying optical market, to your knowledge, growing at that rate? And just kind of how you size up that -- those positives in such a negative environment.

首先，我想談談300毫米晶圓客戶需求的成長。這僅僅是產能上線的結果嗎？您說過到年底應該可以達到滿載晶圓產能。這是否是市場佔有率成長的推動因素？據您所知，光學市場本身是否也以這樣的速度成長？在如此不利的市場環境下，您如何看待這些正面因素？

Thank you for the question, Cody. I think, in general, there's 2 ways that I would account for our positives and that we're still -- we're cautious. There's uncertainty being voiced by customers, but forecasts for us look strong through the year. Firstly is that we have very diversified end markets that we serve. And that allows you to -- for example, I mean, it's obvious, everyone in automotive is taking a hit right now. So even within power, to where we had very good share and growth within battery management for EVs, there's so many other things that power serves that we will see, by forecast, a year-over-year growth in power ICs this year. So that's very, very good to see. In the case of the RF mobile, and this relates maybe a lot to your 300-millimeter question, I think the thing that's very exciting there is that there's a big pullback in the RF mobile market presently, as is well published. But due to the fact of pretty major share gain as well with some content increase, we will still see, from present forecast, not just reasonable, but good year-over-year growth in RF mobile. Not as high as we initially anticipated, but the year-over-year growth is still strong in RF mobile. So you have 2 things that play to our benefit: one is being very diversified in end markets, so you're not overly tied into any single up or down trend; and the second part is areas and I would say, in most every area to where we're growing market share. And hence, you can mitigate, as with the RF mobile for this year, a pullback that we would still be having year-over-year growth. Does that answer your question, Cody?

謝謝你的提問，科迪。總的來說，我認為我們可以從兩個方面來解釋我們的積極表現，以及我們仍然保持謹慎的態度。客戶確實表達了一些不確定性，但我們對全年的預測依然強勁。首先，我們服務的終端市場非常多元化。例如，很明顯，汽車行業的每個人都受到了衝擊。即使在電源領域，儘管我們在電動車電池管理方面擁有非常不錯的市場份額和增長，但電源還有很多其他用途，因此我們預計今年電源集成電路的銷量將同比增長。這非常令人欣喜。至於射頻行動通訊領域，這可能與你提到的300毫米波段問題密切相關，我認為最令人興奮的是，目前射頻行動通訊市場出現了大幅回調，這一點已廣為人知。但由於市場佔有率大幅成長以及內容增加，根據目前的預測，射頻行動業務的年成長不僅可觀，而且相當不錯。雖然沒有我們最初預期的那麼高，但射頻行動業務的年比成長依然強勁。因此，有兩點對我們有利：一是終端市場非常多元化，因此我們不會過度依賴任何單一的上漲或下跌趨勢；二是我們在幾乎所有領域都在擴大市場份額。因此，即使出現回調，就像今年的射頻行動業務一樣，我們仍然能夠保持同比成長。這樣回答你的問題了嗎，科迪？

Yes, it does. Maybe with silicon germanium, is that also market share growth? Or is it just capacity coming online from -- or maybe a bit both?

是的，確實如此。或許矽鍺的加入也意味著市佔率的成長？還是僅僅意味著新增產能——或者兩者兼而有之？

Very good question, and thank you again for following up with that. We already enjoy a very, very high market share in optical transceivers. So I don't know that there's necessarily market share growth there. There is an expanding market. And why is it an expanding market? You have, last year, a decrease in data center demand because of an inventory correction. But there was no question that data center information transfer that the capacity of data centers had to grow. So now that's coming back. So it's -- I don't know necessarily that we're growing market share, and we have, really, a very, very high position. But we are growing with a growing market. The other part is the 5G infrastructure that was also accretive to the market itself. So in that case, we have and enjoy a very high market share, that the market is growing. And one of the reasons that it made sense to put so much energy and effort into capacity expansion within the SiGe was that we knew that the market would grow even though there was a pullback during 2019. It's very possible that, within the next few quarters, we'll surpass our highest quarter ever in silicon germanium shipments. And that's a good place to be. Now that is not necessarily market share growth. That is a market growth. But it was an anticipated market growth, and the capacity expansions that we did were well -- I mean, not just well aligned, they are totally aligned with our customers. So we put strong investments in 2018 to expand silicon germanium capacity that right now is paying back very well as far as what we see for the next quarters. So hopefully, that was -- covered your question totally.

問得好，再次感謝您的跟進。我們在光收發器領域已經擁有非常高的市場佔有率。所以我不認為這個領域一定還有市場佔有率成長。但市場確實在擴張。為什麼說市場在擴張呢？去年，由於庫存調整，資料中心的需求有所下降。但毫無疑問，資料中心的資訊傳輸需要資料中心容量的成長。現在，這種需求正在回升。所以——我不認為我們一定在擴大市場份額，我們目前的地位確實非常非常高。但我們是在隨著市場的成長而成長。另一方面，5G基礎設施也促進了市場的發展。因此，在這種情況下，我們擁有並保持非常高的市場份額，而且市場本身也在成長。我們之所以在矽鍺（SiGe）產能擴張方面投入如此多的精力，其中一個原因是，我們確信即使2019年市場出現回調，它仍然會成長。未來幾季，我們很可能打破矽鍺出貨量的歷史最高紀錄。這是一個令人欣喜的局面。當然，這並非指市場佔有率的成長，而是指市場整體的成長。但這是預期的市場成長，而且我們進行的產能擴張——我的意思是，不僅是契合，而且完全符合客戶的需求。因此，我們在2018年大力投資擴大矽鍺產能，而就我們目前對未來幾季的預期來看，這些投資已經獲得了豐厚的回報。希望以上回答能完全解答您的問題。

Yes, it did. And lastly for Oren, could you just walk us through the gross margin decline? It was -- or the -- maybe a little bit of a shortfall of what I would have expected, and then how you're seeing gross margin through the year.

是的，確實如此。最後，奧倫，你能為我們解釋一下毛利率下降的原因嗎？毛利率確實比我預期的略低一些，然後你再談談你對全年毛利率的看法。

I think gross margin were good in Q1. I mean even the slight reduction in revenue, which was guided and expected, I mean, we achieved the $300.2 million, which is slightly above the mid-range. So even if you analyze that it's $5.5 million below prior quarter, we saved the $3.3 million from the COGS attached to that. So actually, gross profit is only $2.2 million impacted from this EUR 5.5 million, which is by the model. I mean our model is usually incremental 50%, 60%, and exactly we heed by this model. For the future, obviously, we said in the press release, on top of the fact that we expect a growth of -- to $310 million in the next quarter, which is addition of more than 3%. We said that quarter-over-quarter growth during the year. And obviously, you should expect that the margin will improve by our model, which means about 50%, 55% incremental growth of gross profit as a result of this increased revenue.

我認為第一季的毛利率表現良好。即使營收略有下降（這也在預期之內），我們仍然實現了3.002億美元的營收，略高於預期中位數。雖然比上一季少了550萬美元，但我們節省了330萬美元的銷售成本。因此，實際上，這550萬美元的營收對毛利的影響僅為220萬美元，符合我們的模型預測。我們的模型通常預測營收成長50%到60%，而我們也確實遵循了這個模型。展望未來，正如我們在新聞稿中提到的，我們預計下一季營收將成長至3.1億美元，增幅超過3%。我們預測的是全年環比成長。顯然，根據我們的模型預測，毛利率將會提高，這意味著營收成長將帶來約50%到55%的毛利增量。

Yes. Cody, just let me add one thing. Within the areas where I talked about where we have very, very strong growth, there is one area that we are not seeing the growth this year, and that would be in the discretes. So there is continued pullback in discrete that we're seeing. But other than discretes, across the board, I think we're in pretty good shape.

是的，科迪，我再補充一點。在我剛才提到的那些成長非常強勁的領域中，有一個領域今年的成長並不理想，那就是離散品產業。我們看到離散品產業持續出現回調。但除了離散品產業之外，我認為我們整體情況都相當不錯。

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

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

Congrats on solid results in this uncertain environment. That's very good. Just a question, Oren, in terms of the guidance. So $310 million for 2Q, I was wondering if you could just provide what the organic year-over-year growth rate would be. And also, how you're thinking about the organic growth rate for the year. Earlier in the year, you talked about kind of a low double-digit organic growth rate. This was back in January. Obviously, things have changed, some pluses and minuses. Are you still maintaining that assumption? And if so, it would require about 12% to 15% growth in the second half versus the first half. I was wondering if you could just explore the organic growth rate question.

恭喜你們在如此不確定的環境下取得了穩健的業績，這非常好。奧倫，關於業績指引，我有個問題。第二季營收3.1億美元，我想問一下，這相當於去年同期的有機成長率是多少？另外，你們對全年的有機成長率有什麼預期？今年早些時候，你們曾提到兩位數的低有機成長率，那是1月的事了。顯然，情況已經發生了變化，有利有弊。你們現在仍然堅持這個預期嗎？如果是這樣，那麼下半年就需要比上半年成長12%到15%左右。我想請你們詳細解釋一下有機成長率的問題。

Yes. On the organic growth for Q2, from Q2 '19, we don't have any more -- I mean the Q1 '19 was the last quarter under the Panasonic previous contract, and on Q2, it's the new level, '19, so Q2 '20 against Q2 '19 and against Q1 '20 will be entirely organic against organic. So there will not be any reduction in nonorganic. So it will be consistent there.

是的。關於第二季度的有機成長，與2019年第二季度相比，我們已經沒有其他因素了——我的意思是，2019年第一季度是松下之前合約下的最後一個季度，而第二季度是新的起始季度，所以2020年第二季度與2019年第二季度以及與2020年第一季相比，將完全是有機增長。因此，不會有任何非有機增長的減少。所以這方面會保持一致。

Okay. Okay. And then are you still kind of reiterating the low double-digit organic for the year? And if so, that would imply 12% to 15% growth in the second half versus the first half.

好的。好的。那麼，您是否仍堅持全年有機成長將維持在兩位數低點？如果是這樣，那就意味著下半年比上半年成長12%到15%。

We didn't change that forecast. And I don't think we said 12% to 15%. We said low double digits, right?

我們沒有改變先前的預測。而且我覺得我們也沒說是12%到15%，我們說的是兩位數低位，對吧？

Yes.

是的。

No, no. What I'm saying is that in order to get low double-digit organic growth rate for the year, you would have to kind of grow 12% to 15% in the second half versus the first half, roughly. So that implies a ramp throughout the year. And I'm just wondering -- I wanted to get your thoughts on that.

不，不。我的意思是，要全年達到兩位數的低自然成長率，下半年的成長幅度大概需要比上半年高出12%到15%。這意味著全年都需要逐步提升。我只是想聽聽你的看法。

Yes. I mean it's exactly what we meant to say, that we have a quarter-over-quarter growth during the year. So we didn't change this forecast.

是的。我的意思是，這正是我們要表達的意思，即我們今年的季度環比成長。所以我們沒有改變這個預測。

Yes. So just to add maybe slightly more color on that. Because we were seeing such a high initial forecast, even with uncertainty, we're still quite convinced of growth throughout the year. To reiterate a low double digit or not, it's very difficult to say at this point sincerely because the visibility is not perfect. But the growth base right now is strong enough in the forecast that we're confident within reason that our initial statements were correct. To the degree of how much, that's a little bit difficult to state at this point.

是的。我再補充一點。因為我們最初的預測非常高，即使存在不確定性，我們仍然相當確信全年都會成長。至於能否達到兩位數的低成長，目前很難給出確切的答案，因為情況還不明朗。但目前的成長基數足夠強勁，我們有理由相信我們最初的預測是正確的。至於成長幅度，目前還很難說。

The next question is from Mark Lipacis of Jefferies.

下一個問題來自傑富瑞集團的馬克·利帕西斯。

On the 300-millimeter capacity increase, it sounds like there's 2 things going on. There's the non-litho bottleneck, and then you're also adding additional lithography capacity for -- which is supposed to hit later on. And so a couple of questions here. Can you give us a sense of how much the capacity increase is due to the non-litho bottleneck when it starts uncork in the third quarter? And how much will the capacity increase from the additional litho capacity that you're adding? And when does that kind of layer into your total capacity on 300-millimeter?

關於300毫米產能的提升，聽起來好像有兩個因素在起作用。一是非光刻產能瓶頸的緩解，二是你們正在增加光刻產能——這部分產能的提升預計會在稍後階段顯現。所以我有幾個問題。能否簡要說明一下，當非光刻產能瓶頸在第三季開始緩解時，產能提升中有多少是由於它造成的？新增的光刻產能又會帶來多少產能提升？這些新增產能何時才能真正融入你們300毫米的總產能？

So the annualized capacity increase, as we said, is somewhere between $70 million to $100 million. If we were to talk about the bottlenecks, at this point, I stated that we had a 300-millimeter utilization of 80%. Our utilization rates, we always talk about against the photo capacity that's allotted. We would have had enough demand. Our model is to run at somewhere between 85% and 90%. So we have enough demand that we would have been at 90% utilization if we didn't have process bottlenecks that are being alleviated through some of this capacity expansion. So you could say that initially, there would be a relief of about 10 points of capacity through the bottlenecks, but additional capacity is being added with the photo. And -- but the total we had said, depending on exact mix that we'd be shipping, is somewhere annualized between $70 million to $100 million.

正如我們之前所說，年化產能成長額在7,000萬美元到1億美元之間。說到瓶頸問題，我之前提到過，我們300毫米印表機的使用率達到了80%。我們通常會根據分配的照相產能來討論使用率。我們原本的需求量夠大。我們的模式是維持85%到90%的利用率。所以，如果不是因為製程瓶頸（而這次產能擴張正在緩解這些瓶頸），我們的利用率本來可以達到90%。因此，可以說，最初透過解決瓶頸問題，產能提升了約10個百分點，但照相產能的提升又增加了額外的產能。總而言之，根據我們具體的出貨組合，年化總產能增長額在7,000萬美元到1億美元之間。

That is for -- just to make sure I'm clear, this is for the non-litho? Or was that for the additional lithography?

那是指——為了確保我理解正確，這是指非光刻工藝嗎？還是指額外的光刻工藝？

That's with everything.

所有事情都是如此。

That's with everything. Got you. Okay. Okay. And Russell, when you -- in kind of a time like this, you talked about this a little bit in your prepared comments, but I was hoping you could share color, like how do you manage your own supply risk in an environment like this? Could you just review how you think about this and what your strategy is?

所有事情都是如此。明白了。好的。好的。還有羅素，在這種時候，你在準備好的發言稿裡稍微提到了這一點，但我希望你能更詳細地說明一下，比如在這種環境下，你是如何管理自身供應鏈風險的？能簡單回顧一下你的想法和策略嗎？

So our fundamental business model has always been based upon very close contact and partnership with customers and with suppliers. Due to relationships that we've developed, we've been able to very, very easily transition into even greater amount of communication with both suppliers and customers and to understand any gives or takes of what they have or don't have. There have been a few incidents where something wouldn't have been shipped, but we had enough heads-up on it that we're able to change to another supplier. And in most all circumstances of our supply chain, we have multiple qualified suppliers and one predominant supplier that we work with, but we always maintain a business continuity plan to where if someone has something happens abruptly to their factory, either we try to ensure that they have multiple factories so that we can have continuity from them or we have another supplier. And that's how we've been able to manage extremely well. We had -- I mean one of the obvious things that have happened in the past months is that commercial freight has been decreased quite readily because commercial flights have decreased quite readily. So we've shifted very quickly to freight flights. But we were able to understand, know and do that seamlessly. But from the suppliers themselves, that was just getting supplies from point A to point B.

因此，我們基本的商業模式始終建立在與客戶和供應商的密切聯繫與合作之上。由於我們建立的良好關係，我們能夠非常輕鬆地與供應商和客戶進行更深入的溝通，並了解他們庫存和供應情況的差異。雖然也出現過一些貨物無法按時發貨的情況，但由於我們提前得到了充分的通知，因此能夠及時更換供應商。在供應鏈的大多數情況下，我們都有多家合格的供應商，並與一家主要供應商保持合作。同時，我們也始終維護業務連續性計劃，以確保如果某個供應商的工廠出現突發狀況，我們會盡力確保他們擁有多家工廠以保證供貨的連續性，或者我們會尋找其他供應商。正是憑藉著這些措施，我們才能如此有效率地應對各種挑戰。在過去幾個月裡，一個顯而易見的現像是，由於商業航班的減少，商業貨運量也隨之大幅下降。因此，我們迅速轉向了貨運航班。但我們能夠理解、掌握並順利完成這一切。而對供應商來說，那隻是把物資從A點運到B點而已。

For the suppliers themselves, it's really just a question of having a very, very strong relationship with suppliers. And with the communication, asking the right questions and knowing something that might occur in enough advance that you can address it. And as I stated, we ourselves, in certain areas, built up a much higher inventory than normal on indirect materials and silicon wafers. We have a supply of silicon for every SKU that we use, and for the very high level SKUs, a fairly high supply of silicon, higher than the inventory levels that we normally carry. But we thought it was prudent to build up inventory levels during a period that the supply would be there, knowing that they would be being used. But we are at higher inventory levels than we would be in a normal state of operation. Mark, did that answer your question at all?

對供應商而言，關鍵在於與供應商建立非常牢固的關係。這需要溝通，提出正確的問題，並提前了解可能發生的情況以便應對。正如我之前提到的，我們自身在某些領域也建立了遠高於正常水準的間接材料和矽片庫存。我們為每個SKU都儲備了矽片，對於高端SKU，矽片的儲備量更是相當高，高於我們通常的庫存水準。我們認為，在供應充足、預計會被使用的時期建立庫存水準是明智之舉。但我們目前的庫存水準高於正常營運狀態。馬克，這回答了你的問題嗎？

Yes, that's very helpful. I hope you don't mind if I just follow up on that briefly. I guess their one concern right now, I think, in the market is that, that behavior of trying to add a little extra inventory in order to guarantee your own operations. Do you have a sense to the extent how much that is happening at your customers? And that was my last question.

是的，這很有幫助。希望您不介意我再簡單問一下。我想他們目前在市場上最擔心的就是，為了保障自身運營，有些客戶會試圖增加一些額外的庫存。您了解您的客戶中這種情況的普遍程度嗎？這是我的最後一個問題。

At our customers, I have a very, very good feel for what's happening with their inventory because we have very close interactions. I don't know that our customers have the same degree of feel for their end customers. One area that we were more optimistic on in the beginning of the year was in discretes. And some of what they had thought, I believe, was due to people wanting to build more inventory that have now decided that they didn't. A lot of discretes go through distribution centers. And distribution centers, they'll pull back very, very quickly. So most -- everything other than discretes doesn't deal with discretes very, very much. But that is the one area that we have seen a reduction in what we had initially thought, and most likely a year-over-year reduction in revenue is to our discrete customers.

由於我們與客戶保持著非常密切的聯繫，我對他們的庫存情況瞭如指掌。但我並不確定我們的客戶是否對他們的終端客戶也有同樣的了解。年初時，我們對離散商品領域比較樂觀。我認為，他們之前的一些預期，部分原因是由於一些企業原本想增加庫存，但現在他們改變了主意。很多離散商品都要經過配送中心。而配送中心的庫存縮減速度非常快。所以，除了離散商品之外，其他產業與離散商品的接觸並不多。但正是離散商品領域，我們看到了預期下降，而且很可能我們的離散商品客戶的收入較去年同期下降。

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

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

I want to follow up on this last question just very quickly. A good detail here, but Russell, just one thing there. The wafer supplies that you've increased inventories of, is that -- do you see the risk kind of equally across wafer size and the different technologies you deal with, silicon versus SOI and others? Or are there meaningful differences in the risks there?

我想快速地跟進最後一個問題。這裡有個很重要的細節，不過羅素，還有一點要說明。你們增加了晶圓庫存，那麼——你們認為不同尺寸的晶圓以及你們使用的不同技術（例如矽、SOI 等）的風險是否大致相同？還是說這些風險之間有顯著差異？

For very, very high usage, high demand, we have pretty stable contracts. And those contracts forecast and commit to us buying wafers and to the suppliers supplying the wafers. With the RF SOI, that's the type of a contract that we have. So there, it is a very, very stable type of an activity. For the others, what we've done is we have built greater inventory, and now it's just going with steady-state orders by having a reserve inventory that in case there should be something that comes into, and some of that is really just a question of being able to get material from point A to point B. But -- so if that answers your question, the very high demand high volume is, for the most part, under strong contracts.

對於使用量非常大、需求量非常高的產品，我們有相當穩定的合約。這些合約預測並承諾我們採購晶圓，也承諾供應商供應晶圓。例如，射頻SOI晶片的合約就是這種類型。因此，這類業務非常穩定。對於其他產品，我們增加了庫存，現在只需維持穩定的訂單量，並儲備一定數量的庫存以應對可能出現的突發情況。這其中一部分其實只是確保物料能夠從A點運送到B點的問題。所以，如果這回答了您的問題，那麼，對於需求量非常大、產量非常高的產品，我們基本上都簽訂了強有力的合約。

Okay. That is helpful. I just want to make sure. My next question is probably a multi-parter on the mobile market here. You're talking about still expecting growth in 2020 from share gains.

好的，這很有幫助。我只是想確認一下。我的下一個問題可能涉及行動市場，需要分成幾個部分來討論。您是說仍然預期2020年市佔率成長能夠持續。

I didn't catch the beginning, how you introduced it. It was on what?

我沒聽清楚開頭，你是怎麼介紹的。是關於什麼的？

In mobile.

在行動裝置上。

Okay.

好的。

So you talked about expecting growth in 2020, although that growth has come down here with obvious inflection from mobile purchasing patterns here, but you said it was coming from strong growth in content gains. I guess my first part of this is would you expect growth that we didn't have...

所以您提到預計2020年會有成長，儘管由於行動裝置購買模式的明顯變化，成長速度有所放緩，但您也提到內容收入的強勁成長是主要驅動力。我想問的第一個問題是，您是否預期會出現我們目前尚未實現的成長…

I said market share gain and content increases. But I think it's going on market share gain. But go ahead.

我說過市場佔有率成長和內容增加。但我認為最終會是市場佔有率成長。不過，你繼續吧。

Okay. Does that mean you still have growth in mobile if you didn't have the share gains, do you think?

好的。你認為這是否意味著，即使沒有市場佔有率的成長，行動端仍然有成長空間？

If I didn't have share gains, would I still have growth in mobile? No, I don't think so.

如果沒有市場佔有率的成長，我在行動領域還能成長嗎？不，我不這麼認為。

Okay. In the construct of the share gains, is there any way you can characterize it by technology, either by -- for your customers or your internal technology, 200 versus 300 or geographical customers or anything like that that's kind of a driver for these share gains?

好的。在市場佔有率成長的建構過程中，您能否從技術角度對其進行描述，例如——針對您的客戶還是您的內部技術，200 個客戶與 300 個客戶，或者地理位置上的客戶，或者其他任何可能驅動這些市場份額增長的因素？

I think the share gains are coming really worldwide, some customers more than others, but it's not specific to any certain geographic region. There's higher share gain in some regions than others. But I mean you know who all the big players are and who the emerging players are. And I think we're doing pretty well across the board there.

我認為市場佔有率的成長是全球性的，雖然有些客戶受益更多，但並非侷限於某個特定的地理區域。某些地區的市場佔有率成長確實比其他地區更高。我的意思是，大家都知道哪些是產業巨頭，哪些是新興企業。我認為我們在各方面都做得相當不錯。

Okay. That sounds good. My last question here is, while most people are probably focusing near term given the COVID impacts on the economy here, I'm wondering if you can kind of look out into next year and kind of look at some of your growth drivers, both growth in your larger markets, mobile, infrastructure/optical, but also looking at some of the new projects and products you're talking about like the fingerprint sensors, the time of flight, I mean new power products, silicon photonics, et cetera. If you talk about from a dollar growth perspective, which ones -- do any of these growth drivers stand out as one that could really have an outsized impact on your next year?

好的，聽起來不錯。我的最後一個問題是，鑑於新冠疫情對經濟的影響，大多數人可能都更關注短期發展，但我希望您能展望一下明年，看看貴公司的一些增長動力，包括移動、基礎設施/光通信等大型市場的增長，以及您提到的一些新項目和產品，例如指紋傳感器、飛行時間（TOF）技術、新型電源產品、矽光子產品、矽光子學等等。如果從美元成長的角度來看，這些成長動力中，哪些最有可能對貴公司明年的業績產生顯著影響？

Next year is referring to which year?

明年指的是哪一年？

2021?

2021年？

I think, certainly, RF mobile and RF infrastructure always will have a big impact because they're very big markets, and we're well positioned in growth in these markets, one, because of a very, very high market share already, and that's the optical market with the silicon germanium; and the other, with very strong market share gains and increasing capacity with very exciting technologies. So those, I believe, will remain very, very strong growth drivers. As I stated earlier, the reason that we invested strongly in silicon germanium in capacity expansion in 2018, and why we'll most likely continue to invest in that, is because it is a very, very big expanding market with data traffic obviously increasing and increasing. If we look at it from a 2020 through -- or 2019 through 2021, there should be about a 30% increase in 4x25s, and many, many x increase in 8x50, so 400-gigabit per second. And that's what we stated that we have many, many wins, SKUs, protos and even beginning the 800-gigabit per second. So those 2 remain very important for us.

我認為，射頻行動通訊和射頻基礎設施肯定會持續產生巨大影響，因為它們都是非常龐大的市場，而我們在這些市場的成長中佔據了有利地位。一方面，我們在光纖市場（採用矽鍺技術）已經擁有非常高的市場份額；另一方面，我們憑藉令人振奮的技術，市場份額和容量都在強勁增長。因此，我相信這些將繼續成為強勁的成長動力。正如我之前提到的，我們在2018年大力投資矽鍺技術以擴大產能，並且很可能會繼續投資的原因在於，這是一個規模龐大且不斷擴張的市場，數據流量顯然也持續成長。如果我們展望2020年到2021年，或者說2019年到2021年，4x25Mbps的容量應該會成長約30%，而8x50Mbps（即400Gbps）的容量將會成長數倍。正如我們之前所說，我們取得了許多勝利，包括眾多產品線、原型產品，甚至已經開始研發 800Gbps 的高速網路。因此，這兩項對我們來說仍然非常重要。

The other area that I believe we'll see very strong growth in is what we've said where our focus is, was the fingerprint under OLED. That will be a very, I believe, strong area for us as well as the fingerprint under LCD. And the LCD will start volume production by target at the end of this year and growing into volumes -- significant volume should in 2021. In addition, we have a lot of very, very active advanced stacking projects with image sensors that will continue in the '22, '23, '24 to become very, very big numbers. I believe they shouldn't -- I mean they have -- they promised to be able to. The MOSFET market will certainly rebound at some point. How much of a growth driver will it be or not? I think that the consensus was somewhere about a 5%, 6% CAGR. But it's pulled back quite substantially. So that when it comes back, should come back very strong and get to well beyond previous rates. And the power management, we have a very, very broad portfolio in power management that, I think, is quite strong. Even with, as I stated, the automotive portion of power being down this year, by forecast, we would see year-over-year power growth and not insignificant, and then in 2021, when all things are equal, I assume that, that should take off very strong with the new platforms that we have going out. So I think probably, across all of our business units, we would see good growth.

我認為另一個成長強勁的領域是我們之前提到的重點—OLED 螢幕下指紋辨識。我相信，OLED 螢幕下指紋辨識和 LCD 螢幕下指紋辨識都將是我們非常強勁的成長點。 LCD 屏下指紋辨識預計將於今年底按計畫開始量產，並在 2021 年實現顯著的產量成長。此外，我們還有許多非常活躍的先進影像感測器堆疊項目，這些項目將在 2022、2023 和 2024 年持續推進，並有望取得非常顯著的成果。我相信它們應該能夠——我的意思是，它們已經——他們承諾能夠做到這一點。 MOSFET 市場肯定會在某個時候反彈。它究竟能成為多大的成長驅動力？我認為市場普遍預期其複合年增長率約為 5% 到 6%。但目前它已經大幅回落。因此，當它再次反彈時，應該會非常強勁，並且遠遠超過先前的成長率。至於電源管理，我們在電源管理領域擁有非常廣泛的產品組合，我認為這些產品組合相當強大。正如我之前所說，即便今年汽車業務的電力需求有所下降，但根據預測，我們仍將看到電力業務年增，而且增幅不容小覷。到2021年，如果一切順利，我預計隨著我們推出的新平台，電力業務將迎來強勁成長。因此，我認為我們所有業務部門的電力需求都將實現良好成長。

As I had stated during the formal comments, within the TOPS business units, where the model is really taking the customer flow or a customer idea of working on them, where everything stays behind the firewall, we're doing some very, very innovative things on this nanowire RGB, and intrinsic RGB, the microdisplay and that is promising to take off very, very strong as well. So within the TOPS, there's additional things that are being done in addition to a MOSFET market or the power discrete market, of which the biggest portion that we serve is MOSFET. But there's additional very, very high-growth markets because they don't exist right now. I mean they're technologies that are disruptive technologies that will -- could grow very, very strong.

正如我在正式演講中提到的，在TOPS業務部門內部，我們採用的模式是真正以客戶需求或客戶想法為導向，所有資訊都嚴格保密。我們在奈米線RGB、本徵RGB和微顯示器領域進行了一些非常創新的工作，這些工作也有望取得非常強勁的發展。因此，在TOPS內部，除了MOSFET市場或功率分立元件市場（我們服務的最大部分是MOSFET市場）之外，我們還在進行其他業務。但還有一些目前尚不存在的高成長市場。我的意思是，這些技術具有顛覆性，未來可能會發展得非常迅速。

So I think across the board, we're in pretty good shape. One of the nice things about our business, and I think one of the reasons that -- coming back to some of the previous questions, the reason that we're able to mitigate whatever impacts there are from COVID this year is because we do serve so many end markets. And within multiple of them, we have market share growth, and most of them are growing markets. So hopefully, that answers your question, Richard. It's a long answer.

所以我覺得整體來說，我們的狀況相當不錯。我們業務的優勢之一，也是我認為——回到之前的一些問題——我們能夠減輕今年新冠疫情影響的原因之一，是因為我們服務眾多終端市場。而且在許多市場中，我們的市佔率都在成長，其中大部分市場都在成長。希望這能解答你的疑問，理查德。答案有點長。

The next question is from Krish Sankar of Cowen.

下一個問題來自 Cowen 公司的 Krish Sankar。

I had a couple of them, Russell. One is you spoke about improving strength in data center orders Q-over-Q. Do you have any view on the sustainability of this data center strength for the rest of the year? And then I have a follow-up.

羅素，我有幾個問題。其中一個是，您提到資料中心訂單環比成長強勁。您認為這種資料中心訂單強勁勢頭能否在今年剩餘時間內持續下去？另外，我還有一個後續問題。

I would believe that the trend is pretty strong, probably of anything that we're looking at, I believe, at least from my perspective, the highest confidence at this point is in the silicon germanium. So I think that the trend is very strong. The demand is very strong. And it's not just data center. As I said. It's also 5G infrastructure. But I think that's very real. One of the reasons that you know that it's real is when you're getting very recent upside orders. And it's not just forecast. There are orders that are coming in. Most all of our silicon germanium is running 40 to 43 photo layers, so orders have to be placed early. Starts have to be done early -- not early, but just meaning for a Q3 shipment, if you're dealing with 43 layers, you have to start the wafers fairly quickly. So for silicon germanium, we have fairly good visibility because it's a longer processing time than most all of our other flows. So the purchase orders come in earlier, and you start the wafers earlier.

我認為目前的趨勢非常強勁，在我們關注的所有領域中，至少就我個人而言，我認為矽鍺的趨勢最為顯著。所以我認為矽鍺的需求非常旺盛，而且不僅限於資料中心，正如我之前提到的，也包括5G基礎設施。我認為這是實實在在的。之所以能看出這一點，其中一個原因就是我們最近收到了大量的訂單。這並非預測，而是實實在在的訂單。我們大部分的矽鍺晶片都採用40到43層光刻層，因此必須儘早下單，儘早開工──並非指提前開工，而是指如果是第三季的出貨，考慮到晶片是43層，就必須盡快開始晶圓生產。因此，對於矽鍺，我們能夠很好地預測其發展趨勢，因為它的加工週期比我們其他大多數製程都要長。所以採購訂單會更早下達，晶圓生產也會更早開始。

Got it. All right. That's very helpful color, Russell. And then as a follow-up, you spoke about seeing sequential growth through the rest of the year. So is it fair to assume that utilization rates across your entire fleet will continue to improve? And is there any color you can give in terms of quantification into the next quarter?

明白了。好的。羅素，你提供的資訊很有幫助。接下來，你提到預計今年剩餘時間將持續成長。那麼，我們可以合理地假設整個車隊的使用率會繼續提高嗎？你能否就下一季的量化數據給出一些具體說明？

Certainly, as revenue goes up, utilization rates must go up. I stated that we've already seen a big increase in the Fab 3 Newport Beach facility as a function of the increase of orders with silicon germanium. And beyond that, I don't want to necessarily give specific utilization rates because I don't have them off the top of my head, and I don't want to have to correct anything. But in general, the answer is absolutely. As revenue goes up, utilization rates go up.

當然，隨著營收成長，產能利用率必然也會提高。我之前提到過，由於矽鍺訂單的增加，位於紐波特海灘的Fab 3工廠的產能利用率已經大幅提升。至於具體的產能利用率，我暫時不打算給出，因為我記不清具體數字，也不想之後再改。但總的來說，答案是肯定的。隨著營收成長，產能利用率也會提高。

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 a few questions for you. One is really easy. Oren, do you still think the tax rate should be around 4% this year?

我有一些問題想問你。其中一個很簡單。奧倫，你仍然認為今年的稅率應該在4%左右嗎？

The tax rate?

稅率是多少？

Yes.

是的。

Yes. Yes.

是的。是的。

Okay. [Interesting]. Could you talk a little bit about the economics for you, the gross margin? Or how does it work from going from 100G products to 400 and above? Does that change for you? Do you make more money at the higher speeds?

好的。 [很有趣]。能談談貴公司的經濟效益嗎？比如毛利率？或者說，從 100G 產品到 400G 以上產品，利潤狀況如何？這對您來說會有什麼改變嗎？更高的速度是否能帶來更多利潤？

I think our model, like I mentioned before, on any incremental revenue growth is that, in average, it's 50%, 55% to the gross profit and EBITDA and operating profit. Now anything of what you said, if it is related to SiGe, so we said in the past that for SiGe, of course, our margins are better. They are closer to 65%, 70% incremental. And if it is in an SOI or smartphone or discrete, so it's lower than the 50%. So any analyst can assume on from what is the growth and then assume the result in the margin.

我認為，正如我之前提到的，我們的模型是基於任何增量收入成長，平均而言，毛利、EBITDA 和營業利潤的 50% 到 55%。至於您剛才提到的，如果與 SiGe 相關，正如我們之前所說，SiGe 的利潤率當然更高，接近 65% 到 70%。而如果是 SOI、智慧型手機或分立元件，利潤率則會低於 50%。因此，任何分析師都可以根據成長情況來推斷利潤率。

Yes. And for your specific other part of the question, Lisa, where you said -- you asked if the margins go up. Yes, that is a very partnership-based thing with our customers. We work with them to serve their longer-term needs. And with each platform, there's typically a reset of the pricing of the platform. And then you might have, off of any platform, some year-over-year or every several year price reduction. But every new platform will have a reset of pricing versus the previous platform that is in high volume.

是的。至於你問題的另一部分，麗莎，你問到利潤率是否會提高。是的，這完全取決於我們與客戶的合作關係。我們與客戶攜手合作，滿足他們的長期需求。每個平台通常都會進行定價調整。此外，任何平台都可能出現年度或每隔幾年的降價。但每個新平台的定價都會與先前銷售量高的平台進行重新調整。

Okay. I guess my final question is, there's been so much talk about changing supply chains for derisking geographic sources. Have you seen any change in your customers? And has that benefited you at all?

好的。我的最後一個問題是，現在很多人都在討論如何透過改變供應鏈來降低地域來源的風險。您的客戶是否也出現了類似的變化？這些變化對您有任何好處嗎？

By changing supply chain, I'm slightly -- meaning from our customers changing their supply chain or from -- I don't understand the question.

透過改變供應鏈，我稍微——是指我們的客戶改變他們的供應鏈，還是——我不明白這個問題。

Yes. Right. Obviously, there's a lot of talk about maybe we shouldn't be getting so much stuff from China. Are people looking at you because you're not there? And could that possibly benefit you?

是的。沒錯。顯然，現在很多人都在討論我們是否不應該從中國進口那麼多東西。人們是不是因為你不在中國而關注你？這或許對你有利？

Potentially. But I would say, fundamentally, not so much. The bulk of what is bought in China is not products that we ourselves -- or product flows that we, ourselves, serve. There's either lower-end foundry capabilities or you would have other foundries that do and focus on digital technologies. So for the most part, what we serve, our customers could not really obtain from China.

有可能。但從根本上來說，並非如此。中國市場採購的大部分產品並非我們自身生產或供應的產品線。要嘛是低端晶圓代工能力有限，要嘛是其他專注於數位技術的晶圓代工廠。因此，我們供應的大部分產品，我們的客戶實際上無法從中國獲得。

The next question is from David Duley of Steelhead Securities.

下一個問題來自 Steelhead Securities 的 David Duley。

Yes. Most of my questions have been answered, but just a couple of clarifications. Could you just help us understand? You mentioned you have very high market share in the optical silicon germanium area. Could you just highlight what you think your market share is there? And then could you talk about the competitive environment in the RF SOI area and how that's changed over the last few quarters or how you expect it to change going forward?

是的。我的大部分問題都已得到解答，但還有幾個需要澄清的地方。您能幫我們理解一下嗎？您提到貴公司在光矽鍺領域擁有很高的市佔率。您能否具體說明一下您認為貴公司在該領域的市佔率是多少？另外，您能否談談射頻SOI領域的競爭環境，以及過去幾季以來的變化情況，或者您預計未來會如何變化？

Yes. The first question, I'll happily answer. We believe we're at about 60% market share or higher. So that's for your first question. For the second question, it's not something that I prefer to talk about, meaning to speak about competitors. The competitive landscape itself, as with any high-end technology, the landscape requires better performing platforms. So in the case of the RF SOI, we'll demand continually -- continual reduction in our Ron-Coff. It demands very, very good digital capabilities. It demands very good linearity. So just all of the figures of merit continually have to move forward. On the landscape itself, again, that's -- I don't talk about competition openly, and that's not something I would prefer to speak to. But the competitive landscape is really just based upon having very good platforms to be able to get the most recent design wins and then in performing well in how you supply. We state that...

是的。第一個問題我很樂意回答。我們相信我們的市佔率在60%左右甚至更高。所以這是第一個問題的答案。至於第二個問題，我不太想談競爭對手。任何高階技術的競爭格局都離不開效能更優異的平台。就射頻SOI而言，我們會持續降低Ron-Coff值。它需要非常優秀的數字性能和線性。因此，所有性能指標都必須持續提升。關於競爭格局本身，我再次強調──我不公開談論競爭，也不想談論這個話題。但競爭格局實際上取決於擁有非常優秀的平台，才能贏得最新的設計訂單，並在供貨方面表現出色。我們指出…

Does having a 300-millimeter platform differentiate you in the RF SOI market at this point or are the 65-nanometer design rules, are either one of those helping you capture further market share?

在目前的射頻SOI市場中，擁有300毫米平台是否能讓您脫穎而出？或者說，65奈米設計規則是否能幫助您獲得更大的市場份額？

One more time, please? I'm sorry. The what with 300-millimeter that...

再說一次好嗎？對不起。那個300毫米的…

Is having a 300-millimeter factory that's running RF SOI or having 65-nanometer design rules, are either one of those allowing you to pick up further market share?

擁有一座生產射頻SOI的300毫米工廠，或擁有65奈米的設計規則，這兩者中哪一個能幫助你獲得更多的市場份額？

Absolutely. Yes, the -- although we have an extremely good 200-millimeter platform that's called QT9, having the ability to do 65-nanometer allows you very, very strong digital integration, which is important for an integrated switch LNA. So yes, the 300-millimeter certainly is enabling increases in market share, definitely.

當然。是的，雖然我們有一個非常優秀的 200 毫米平台，名為 QT9，但 65 奈米製程能夠帶來非常強大的數位整合能力，這對於整合式開關型低雜訊放大器 (LNA) 來說至關重要。所以，300 毫米製程無疑有助於提升市場佔有率。

Great. Final question for me is, as far as a percentage of overall revenue, what percentage do discretes represent at this point, approximately?

好的。我的最後一個問題是，就目前而言，離散收入約佔總收入的百分比是多少？

A percentage of revenue of the company?

公司收入的百分比？

Yes.

是的。

Yes. It's about 12% to 13%, was in the full year '19.

是的，大約是 12% 到 13%，這是 2019 年全年的數據。

We have a follow-up question from Rajvindra Gill of Needham & Company.

我們收到 Needham & Company 的 Rajvindra Gill 的後續問題。

Yes. Just a quick question on automotive. Obviously, a lot of the factories have been shut down in the U.S. and Europe. They're starting to reopen a bit. You did mention some weakness in power for auto. But any sense in terms of how the automotive market could shape up for the year? Are you seeing any kind of rebound at all as you kind of look into the second half from your customers? And also in terms of kind of content gains, semiconductor content increases in automotive, whether it's from sensors or increased power management, do you foresee that partially offsetting some of the weakness in the overall automotive market?

是的。關於汽車產業，我有個問題想問一下。顯然，美國和歐洲很多工廠都停工了。現在它們正在逐步復工。您剛才提到汽車產業電力供應疲軟。那麼，您對今年汽車市場的整體走勢有什麼看法？從您客戶對下半年的回饋來看，您是否看到了任何反彈的跡象？另外，就半導體在汽車領域的應用而言，無論是感測器還是電源管理方面的應用，半導體含量的增加是否能在一定程度上抵消汽車市場整體的疲軟？

Our predominant power management into automotive really is in battery management. And I've -- we've not seen an increase of that demand as of yet. If indeed factories are opening up and models are being built, then we will see an increase there. But to date, we have not. As far as the amount of content going into automotive and buying for a bigger portion of that content, we're always actively going after that. But our biggest portion right now directly in automotive that at least we're aware of, and it's not that we have 100% visibility into the end use of every part that we sell, but the biggest portion of it is for battery management, and that has not snapped back yet.

我們在汽車領域的主要電源管理應用實際上是電池管理。而且，到目前為止，我們還沒有看到這方面的需求成長。如果工廠確實復工復產，車型也開始生產，那麼我們會看到需求成長。但就目前而言，還沒有。至於汽車領域的內容投入以及採購量的成長，我們一直在積極爭取。但就我們目前所知，我們最大的直接應用領域是汽車領域——當然，我們無法完全掌握我們銷售的每個部件的最終用途——但其中最大的部分是電池管理，而這部分需求尚未恢復。

This concludes the question-and-answer session. Mr. Ellwanger, would you like to make your concluding statement?

問答環節到此結束。艾爾旺格先生，您想做總結發言嗎？

Certainly. Well, again, thank you very much, and really thank all of you for the, I think, very, very good questions. I appreciated them. Just as a summary statement, we are optimistic and encouraged, and I am truly proud of our employees that, to date, throughout this worldwide pandemic for our Q1 performance, it was exact. And since that time, we've not missed a step on shipments. The integration of customer demand and operational flexibility has really been outstanding. I'm certainly encouraged that in the midst of global challenging times, even in the mobile market, our RF mobile share increase continues and should show meaningful 2020 quarter-over-quarter growth and a meaningful 2020 over '19 growth, that our end market coverage is broad enough, allowing very strong growth in multiple markets during even the current situation.

當然。再次非常感謝，也衷心感謝各位提出的問題，我認為這些問題都非常非常好。我很感激。總而言之，我們感到樂觀和鼓舞，我為我們的員工感到無比自豪，因為迄今為止，在全球疫情期間，我們第一季的業績完全符合預期。而且自那時以來，我們的出貨量也從未中斷。客戶需求與營運彈性的整合確實非常出色。我感到非常欣慰的是，即使在全球充滿挑戰的時期，我們的射頻移動市場份額仍在持續增長，預計2020年將實現顯著的季度環比增長，並且2020年全年與2019年全年相比也將實現顯著增長。我們的終端市場覆蓋率足夠廣，即使在當前情勢下，也能在多個市場實現強勁成長。

We look forward to speak with you as the year progresses. And to that end, between now and the beginning of June, we will participate in the following investor conferences: the Oppenheimer Annual Event, Sunday, May 17, 2020; The 17th Annual Craig-Hallum Institutional Investor Conference, May 27, 2020; and the Needham Fourth Annual Automotive Tech Conference, June 3, 2020. All of these are virtual events. And for those of you who are able or have wishes, we'd love to interact with you and speak with you at those times or at any other. Thank you very, very much.

我們期待在今年剩餘的時間與您交流。為此，從現在到六月初，我們將參加以下投資者會議：2020年5月17日（星期日）舉行的奧本海默年度活動；2020年5月27日舉行的第十七屆克雷格-哈勒姆機構投資者年會；以及2020年6月3日舉行的尼德姆第四屆汽車技術年會。所有這些會議均為線上舉行。如果您有時間或意願參與，我們非常樂意在上述時間或其他任何時間與您互動交流。非常感謝！

Thank you. This concludes the Tower Semiconductor First Quarter 2020 Results Conference Call. Thank you for your participation. You may go ahead and disconnect.

謝謝。 Tower Semiconductor 2020年第一季業績電話會議到此結束。感謝您的參與。您可以斷開連線了。